Bank Of Maharashtra Q3 Business Updates: Gross Advance Rises 21%; Total Business Rises 16.87%

Bank of Maharashtra's gross advances rose 21.19% on a yearly basis to Rs 2.29 lakh crore in the October-December quarter, according to provisional figures released by the bank on Thursday.

The bank's total business rose 16.87% to Rs 5.08 lakh crore in the quarter ending December 2024, according to an exchange filing on Thursday.

The bank reported an advance of 13.54% in deposits at Rs 2.79 lakh crore in the third quarter, as compared with Rs 2.45 lakh crore in the same period last year.

CASA ratio—the proportion of deposits that come from low-cost current and savings accounts—dipped marginally to 49.28% from 49.29% in the previous quarter. A lower CASA ratio indicates that the bank relies heavily on costlier wholesale funding, which can hurt the bank's margin.

The credit deposit ratio, which measures how much a bank lends in relation to the deposits raised, rose to 81.95% in comparison to the earlier 76.78% in the same period in the previous fiscal year. The higher CD ratio indicates that the loan disbursed exceeds deposits.

The profit of the state-owned bank rose 44% to Rs 1,327 crore in the second quarter ending September 2024 on account of improvement in interest income. Total income rose to Rs 6,809 crore during the quarter, while the net interest margin rose to 3.98%. Net interest income grew by 15.41% to Rs 2,807 crore during the quarter as against Rs 2,432 crore in the same period a year ago.

Bank of Maharashtra's stock fell as much as 1.48% during the day to Rs 51.81 apiece on the NSE. The stock closed 0.32% higher at Rs 52.76 per share. This compares with a 1.88% advance in the benchmark Nifty 50. It has risen 16.08% in the last 12 months.

The one analyst tracking the company maintains a 'buy' rating, according to Bloomberg data. The average 12-month consensus price target implies an upside of 18.6%.