New Delhi: Bank of Maharashtra, which is owned by the state, reported a 44 pc increase in profit to Rs 1,327 crore in the second quarter of September 2024 due to a rise in interest income. In the previous year, the lender from Pune had recorded a net profit of Rs 920 crore in the corresponding quarter. In a regulatory filing, BoM stated that total revenue rose to Rs 6,809 crore in the current quarter compared to Rs 5,736 crore in the previous year's same period.
Total revenue rises to Rs 6,809 crore, with significant increases in interest income and Net Interest Income.
In regards to financial performance, BoM Managing Director Nidhu Saxena mentioned that the Net Interest Margin (NIM) rose to 3.98 percent, up from 3.88 percent in the corresponding quarter of the previous year. BoM has the highest NIM among the 12 public sector banks, with Saxena stating that the target NIM for the current fiscal year is 3.75-3.85 percent, expecting a rate cut sometime during the year. He also mentioned that the bank anticipates the bank's net profit surpassing Rs 5,000 crore in the current fiscal year. In the first half, profits have exceeded Rs 2,500 crore and the trend will continue to improve in the future. In the last financial year, the bank had made a profit of Rs 4,055 crore.
During the quarter, the bank's interest income increased to Rs 6,017 crore from Rs 5,068 crore in the previous year's same period. There was a 15.41 per cent increase in Net Interest Income (NII) to Rs 2,807 crore this quarter compared to Rs 2,432 crore in the previous year. In terms of asset quality, the bank has shown progress as gross Non-Performing Assets (NPAs) decreased to 1.84 percent of gross loans by September 2024, compared to 2.19 percent a year earlier. Likewise, net NPAs or non-performing assets.
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