A leading state-owned bank, renowned for its strong regional presence in western India, has reported impressive growth in its Q3 performance with a 36% surge in net profit. The financial institution is making headlines not only for its robust quarterly results but also for being among five state-run lenders approved for a significant government-backed QIP initiative worth Rs. 2,000 crore.
Share Price Movement
The share price of Bank of Maharashtra Limited went up 0.13 percent to Rs. 52.05 per share on Friday, an increase from its previous close of Rs. 51.98 per share. The market capitalisation now stands at approximately Rs. 39,580 crore as of January 17, 2025.
Recent Update
Bank of Maharashtra’s shares surged sharply on Tuesday after reports revealed that the government had approved a RS. 2,000 crore QIP plan for each of five state-run lenders, including Bank of Maharashtra.
Q3 Financial Highlights (Update)
Bank of Maharashtra’s Net Interest Income (NII) increased by 19% YoY to Rs. 2,944 crore, while net profit rose by 36% to Rs. 1,406 crore. Asset quality remained stable, with Gross NPA at 1.8% (down from 1.84% in September) and Net NPA unchanged at 0.2%.
Deposits grew by 13.5% YoY to Rs. 2.79 lakh crore, with a 1% sequential increase. Advances rose 21.2% YoY to Rs. 2.28 lakh crore, up 5.1% from September. CASA deposits increased by 11.5% YoY to Rs. 1.37 lakh crore, and the CASA ratio stood at 49.28%. The credit-deposit ratio improved to 81.95% from 76.78% last year.
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Competitors
Bank of Maharashtra faces competition from several key players, including Punjab National Bank, Union Bank of India, Indian Bank, Bank of India, and Central Bank of India.
Bank of Maharashtra is currently trading at a P/E of 7.62, which is very low than the industry P/E of 35.
Market Outlook
The Indian fintech industry is rapidly growing, projected to reach US $421 billion by 2029. Digital payments are set to rise, with predictions of 65% growth by 2026. Innovations in services, like digital lending and KYC streamlining, enhance efficiency.
The banking sector is also benefiting from strong economic growth, easier access to credit, and policy support, such as the digitalisation of KCC lending and the launch of Central Bank Digital Currency (CBDC). These trends create significant opportunities for continued growth and financial inclusion.
Written By Fazal Ul Vahab C H
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