Indian public sector banks have been in highlight recently for their multi-bagger gains to their shareholders. All-time high loan disbursements, improved asset quality and expansion of net interest margins prompted retail and foreign institutional investors likewise to pile government banks in their portfolios.
One such bank that has delivered impressive gains is the Bank of Maharashtra. The stock of Pune-headquartered bank rallied up 10.87% during the early hours of trading on Wednesday. As for the previous six months’ performance, it has given a multi-bagger return of 122.77% to its investors.
Rs 1,00,000 invested six months ago in the Bank of Maharashtra would have become Rs 2,22,770 by now. This would have resulted in multi-bagger gains of Rs 1,22,770 to for the investors.
The state-owned bank clocked its highest quarterly profit of Rs 535 crore in the quarter ending September (Q2FY23) for the current financial year 2022-23. Its figures across multiple heads such as asset quality, profitability, provision coverage and more have improved considerably over the last year.
Net profit increased by 102.93% on a year-on-year (YoY) basis to Rs 535 crore in Q2FY23 from Rs 214 crore in Q2FY22. Similarly, the net profit margin improved to 3.55% from 3.27% during the same period last year.
There was a significant improvement in the provisions coverage ratio (excluding TWO), which increased to 80.76% from 70.50% on a YoY basis. The GNPAs and NPAs were down to 3.40% and 0.68% in Q2FY23 from 4.73% and 1.24% in Q2FY22 respectively.
As of 14:00 IST, the share of Bank of Maharashtra was trading at Rs 35.05 a piece, marginally lower from its day’s and 52-week high, but still up 7% for the day. The market capitalization of the company stood at Rs 23,500 crore.
Written By – Vikalp Mishra
