State-owned Bank of Maharashtra on Friday reported a 45% jump in its net profit to Rs 1,218 crore for the March quarter, helped by a decline in bad loans and a rise in interest income. The Pune-based lender had earned a net profit of Rs 840 crore in the year-ago period.
During the quarter, the bank's total income increased to Rs 6,488 crore as against Rs 5,317 crore a year ago, BoM said in a regulatory filing.
Interest income grew to Rs 5,467 crore during the period under review, from Rs 4,495 crore in the corresponding quarter a year ago.
The bank's board has recommended a dividend of Rs 1.40 per share or 14% of Rs 10 face value out of the net profits for the year ended March 31, 2024.
On the asset quality side, the bank's Gross Non-Performing Assets were reduced to 1.88% of gross advances as of March 31, 2024, from 2.47% by the end of March 2023.
Net NPAs also came down to 0.20% of the advances from 0.25% at the end of 2024.
The fall in bad loans ratio helped cut the provisions towards NPAs for Q4FY24 to Rs 457 crore as compared with Rs 545 crore a year ago.
The board also approved raising of capital up to Rs 7,500 crore through a Follow-on Public Offer or rights issue, Qualified Institutional Placement issue, or any other mode or through issue of BASEL III Compliant Tier I and Tier II Bonds or such other securities as may be permitted under applicable laws etc, it said.
Provision Coverage Ratio stood to 98.34% as on March 30, 2024.
However, the capital adequacy ratio of the bank declined to 17.38% from 18.07% at the end of FY23.
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