Bank of Maharashtra Q3 Financial Highlights

State-owned Bank of Maharashtra (BoM) has announced a remarkable 36% increase in its net profit for the third quarter ending December 2024, reaching Rs 1,406 crore. This significant growth is attributed to a rise in interest income, showcasing the bank's robust financial health and operational efficiency.

The Pune-based lender had previously reported a net profit of Rs 1,036 crore in the same quarter of the previous fiscal year. The total income for the quarter also saw an upward trajectory, increasing to Rs 7,112 crore from Rs 5,851 crore in the corresponding period last year, as per the bank's regulatory filing.

Improvement in Asset Quality

BoM has successfully reduced its gross Non-Performing Assets (NPAs) to 1.80% of gross loans by the end of December 2024, down from 2.04% a year ago. Similarly, the net NPAs have decreased to 0.2% from 0.22% at the end of the third quarter of the previous fiscal year, indicating an improvement in asset quality and risk management practices.

Capital Raising Efforts

In a strategic move to bolster its capital base, the bank raised Rs 3,500 crore through Qualified Institutional Placements on October 5, 2024. This initiative involved the issuance and allotment of 61,01,81,311 equity shares of Rs 10 each at a premium of Rs 47.36 per share, leading to a reduction in the Government of India's shareholding in the bank to 79.60% as of December 31, 2024.

Over the nine-month period, the bank reported a consolidated net profit of Rs 4,027 crore, a significant leap from Rs 2,837 crore in the previous year, alongside an increase in total income to Rs 7,112 crore from Rs 5,851 crore. The Provision Coverage Ratio (PCR) stood strong at 98.28% as of December 31, 2024, underscoring the bank's prudent provisioning and financial resilience.