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Bank of Maharashtra Records Highest Growth Rate among Public Sector Banks


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The Bank of Maharashtra, a state-owned financial institution, achieved remarkable growth in the last fiscal year compared to other public sector banks. Despite the challenging environment for banks to achieve double-digit growth, the Bank of Maharashtra stood out with a 15.94 percent increase in its total business (domestic) in FY24. This growth rate was followed by the State Bank of India (SBI), the country’s largest lender, which recorded a growth rate of 13.12 percent, according to the published financial data of public sector banks (PSBs).

Although the Bank of Maharashtra’s total business (including deposits and advances) was significantly smaller than SBI, with Rs 4,74,411 crore compared to SBI’s Rs 79,52,784 crore, the Bank of Maharashtra maintained its position as the leader in deposit mobilization growth. It saw a rise of 15.66 percent in deposit mobilization in FY24, followed by SBI (11.07 percent), Bank of India (11.05 percent), and Canara Bank (10.98 percent). Out of the 12 public sector banks, only these four were able to achieve double-digit growth in deposits during the financial year 2023-24.

The Bank of Maharashtra also excelled in low-cost CASA (current account and savings account) deposits, with a growth rate of 52.73 percent, followed by the Central Bank of India with a growth rate of 50.02 percent as of March 2024. This higher level of CASA deposits allows banks to maintain a lower cost of funds.

In terms of loan growth, the Kolkata-based UCO Bank reported a slightly higher growth rate at 16.38 percent, followed closely by the Bank of Maharashtra at 16.30 percent. SBI also reported significant growth in advances with a rate of 16.26 percent in FY24. The loan growth of the remaining public sector banks was lower than 16 percent during the fiscal year.

Regarding asset quality, both the Bank of Maharashtra and SBI demonstrated commendable performance with the lowest gross non-performing assets (NPAs) at 1.88 percent and 2.24 percent, respectively, as of March 31, 2024. In terms of net NPAs, the Bank of Maharashtra and Indian Bank reported the lowest figures, with 0.2 percent and 0.43 percent, respectively.

Lastly, in terms of capital adequacy ratio, the Bank of Maharashtra led the PSBs with a ratio of 17.38 percent, followed by Indian Overseas Bank at 17.28 percent and Punjab & Sind Bank at 17.16 percent at the end of FY24.

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