Bank of Maharashtra, one of India’s leading public sector banks, reported impressive growth in its financial performance for the October-December quarter of the fiscal year 2024. The bank shared its provisional figures in an exchange filing on Thursday, highlighting significant improvements in key financial metrics. Also Read: PNB reported 15% increase in Business in Q3FY25.
Advances and Deposits Show Robust Growth
The bank’s gross advances surged by 21.19% on a yearly basis, reaching ₹2.29 lakh crore as of December 2024. This growth reflects the bank’s increased focus on lending activities across various sectors.
Deposits also witnessed a strong uptick, rising by 13.54% to ₹2.79 lakh crore in the third quarter of FY2024, compared to ₹2.45 lakh crore in the same period last year. The total business of the bank—which includes advances and deposits—climbed to ₹5.08 lakh crore, registering a growth of 16.87%.
CASA Ratio and Credit-Deposit Ratio
The bank’s CASA (current account and savings account) ratio, which indicates the proportion of low-cost deposits, dipped slightly to 49.28% from 49.29% in the preceding quarter. This minor decline suggests a marginal increase in reliance on costlier funding sources, which could impact the bank’s profit margins.
On the other hand, the credit-deposit (CD) ratio saw a notable increase, rising to 81.95% from 76.78% in the same period last year. A higher CD ratio demonstrates the bank’s growing ability to convert deposits into loans, reflecting increased demand for credit. Also Read: PNB reported 15% increase in Business in Q3FY25.
Strong Financial Performance in Q2 FY2024
In the second quarter of FY2024, the bank recorded a 44% jump in net profit, reaching ₹1,327 crore. This substantial growth was primarily driven by improved interest income.
The bank’s total income for the quarter stood at ₹6,809 crore, while the net interest margin—a key indicator of profitability—rose to 3.98%. Net interest income grew by 15.41% to ₹2,807 crore, up from ₹2,432 crore in the corresponding quarter last year.
Stock Market Performance
Bank of Maharashtra’s stock experienced mixed movement on Thursday. It fell by as much as 1.48% during intraday trading, hitting a low of ₹51.81 per share on the NSE. However, it closed 0.32% higher at ₹52.76 per share. In comparison, the Nifty 50 index rose by 1.88% on the same day.
Over the last 12 months, the bank’s stock has delivered a 16.08% gain, reflecting investor confidence in its growth trajectory.
Analyst Outlook
As per Bloomberg data, the one analyst covering the stock has maintained a ‘buy’ rating. The analyst’s 12-month price target suggests an 18.6% upside from the current price, signaling optimism about the bank’s future performance.
Conclusion
Bank of Maharashtra’s strong financial performance in the third quarter highlights its solid growth strategy and increasing market share in India’s banking sector. With rising advances, deposits, and a healthy credit-deposit ratio, the bank is well-positioned for sustained growth in the coming quarters.
