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Bank of Maharashtra has reported a solid financial performance for the fourth quarter of FY24, showing a 22.6% rise in its net profit. The bank’s net profit for the quarter stands at ₹1,493 crore, up from ₹1,218 crore in the same period last year.
Key Financial Highlights:
- Net Profit: ₹1,493 crore (a 22.6% increase compared to ₹1,218 crore in Q4 FY23).
- Net Interest Income (NII): The bank’s NII rose by 20.6%, reaching ₹3,116.7 crore, up from ₹2,584.4 crore in the previous year.
- Gross Non-Performing Assets (NPA): The gross NPA ratio improved slightly to 1.74%, down from 1.80% in the previous quarter.
- Net NPA: The net NPA ratio also saw improvement, dropping to 0.18% from 0.20% sequentially.
NPA Details:
- Gross NPAs: ₹4,184.5 crore (a small increase from ₹4,124 crore last quarter).
- Net NPAs: ₹432 crore (down from ₹443 crore in the previous quarter).
Dividend Announcement:
The bank has proposed a 15% dividend, which amounts to ₹1.50 per equity share. This is subject to approval by the shareholders at the upcoming Annual General Meeting (AGM).
Fitch Ratings Update:
Earlier this month, Fitch Ratings affirmed the bank’s long-term issuer default rating (IDR) at ‘BBB-’ with a stable outlook. This is largely due to the bank’s strong government backing and consistent improvement in its risk metrics. Additionally, Fitch upgraded the bank’s viability rating (VR) from ‘B+’ to ‘BB-’, reflecting the improved financial performance and risk profile.
Fitch also noted that the government’s 79.6% stake in the bank highlights its strategic importance, and there is a high likelihood of government support if required.
Conclusion:
Bank of Maharashtra’s Q4 results demonstrate strong growth in profits and a healthy improvement in key financial metrics. The bank’s consistent performance, solid risk management, and government backing have been recognized by credit rating agencies, positioning it well for future stability and growth.
