MUMBAI: State-run Bank of Maharashtra has reported a 35% on-year jump in March quarter net profit at Rs 2,014 crore, driven by strong growth in net interest income, advances, and overall business coupled with better asset quality. For the full year, the bank reported its highest-ever profit at Rs 7,019 crore compared to Rs 5,520 crore in the previous year.
The Pune-based based bank said its net interest income rose 19% to Rs 3,702.5 crore, helped by steady growth in core income and a visible improvement in asset quality along with a sharp drop in provisions. On the business front, total deposits grew 14.14% on-year to Rs 3.50 trillion, while gross advances rose 21.74% to Rs 2.91 trillion, while net advances increased 22.03% to Rs 2.88 trillion.
Of the total deposits, as much as 48.50% were low cost Casa deposits. Asset quality improved sequentially, with gross non-performing assets declining to 1.45% from 1.6% in the December quarter, while net NPAs eased to 0.13% from 0.15%-- the best in the industry. However, slippages increased on a quarter-on-quarter basis.
The bank saw its provisions fall sharply on the back of record fall in bad loans. The bank set aside only Rs 617 crore, significantly lower than Rs 983 crore in the year-ago period. This supported the bottom line. The provision coverage ratio stood at 98.59, giving the bank a strong buffer against potential stress.
The lender has recommended a final dividend of Rs 1.20 or 22% for FY26, in addition to an interim dividend of Rs 1 already paid during the year. The bank also outlined plans to raise up to Rs 7,500 crore through a mix of equity and bonds during the current fiscal. It also intends to issue foreign currency bonds of up to $500 million and long-term infrastructure bonds of up to Rs 10,000 crore in FY27.
The stock rose to Rs 75.90 and has gained nearly 20% so far this year.