Bank of Maharashtra Leads The PSU Lenders List In Terms of Retail Growth In Q2

According to financial records for the quarter and half year ending 30th SEPT 2021, the state-owned Bank of Maharashtra (BoM) has been the top finisher among public sector banks in terms of loan and savings deposit gains during the second quarter of the ongoing financial year. According to the following figures, the Bank of Maharashtra enhanced gross advances by 11.46 percent to Rs 1,15,236 crore in the July-September 2021-22 period.

According to statistics from the bank's quarterly reports, Punjab & Sind Bank saw a 9.53 percent increase in advances, with total loans of Rs 67,574 crore at the end of September 2021. The bank's RAM (retail, agriculture, and MSME) segment grew at the record pace of 14.24 percent to Rs 70,515 crore. In Q2FY22, total deposits increased 14.47 percent year on year to Rs 181,572 crore, while SBI, the country's largest lender, saw a 9.69 percent increase. Throughout absolute terms, though, SBI's deposit portfolio was 20 times more than BoM's, at Rs 36.90 lakh crore vs Rs 1.81 lakh crore.

During the quarter, BoM's current account, savings account (CASA) increased by 22%, the largest among public sector lenders. As a consequence, CASA accounted for 54% of the bank's total liabilities of Rs 97,889 crore. At the end of September 2021, BoM's total business had climbed 13.27 percent to Rs 2.97 lakh crore and the bank's standalone net profit stood at Rs 264 crore in the second quarter, compared to Rs 130 crore in the previous year.

Here are the financial results of the bank, according to its official release.

Profitability of the bank (Quarter Ended Sep 30,2021)

• Net Profit up by 102.71% to Rs 264 in Q2FY22 on a Y-o-Y basis as against Rs 130 crore for Q2FY21. The same is up by 26.76% on a Q-o-Q sequential basis.
• Operating Profit has shown a growth of 40.22% on a Y-o-Y basis to Rs 1061 crore for Q2FY22 as against Rs 756 crore for Q2FY21.
• Net Interest Income (NII) grew by 33.84% on a Y-o-Y basis to Rs 1500 crore in Q2FY22 as against Rs 1,120 crore for Q2FY21. The same is up by 6.66% on a Q-o-Q sequential basis.
• Net Revenues (Net Interest income plus other income) for Q2FY22 improved by 30.88 % from Rs 1522 crore for Q2FY21 to Rs 1992 crore for Q2FY22.
• Fee based income increased by 10.97 % on a Y-o-Y basis to Rs 303 crore for Q2FY22.
• Non-Interest Income up by 22.61% on a Y-o-Y basis to Rs 493 crore in Q2FY22.
• Cost to Income Ratio improved to 46.76% for Q2FY22 as against 50.31% for Q2FY21. The same was 48.33% for the quarter ended 30.06.2021.
• Return on Assets (ROA) improved to 0.53% for Q2FY22 against 0.28% for Q2FY21 and 0.41% for Q1FY22.
• Return on Equity (ROE) also improved to 11.98% for Q2FY22 against 7.64% for Q2FY21 and 9.91% for Q2FY22.

Profitability of Bank of Maharashtra (Half Year Ended Sep 30,2021)

• Net Profit up by 104.11% to Rs 472 in HYFY22 on Y-o-Y basis against Rs 231 crore for HYFY21.
• Operating Profit has shown a growth of 47.85% on a Y-o-Y basis to Rs 2,115 crore for HYFY22 as against Rs 1,431 crore for HYFY21.
• Net Interest Income (NII) grew by 31.57% on a Y-o-Y basis to Rs 2,905 crore in HYFY22 as against Rs 2,208 crore for HYFY21.
• Net Revenues (Net Interest income plus other income) for HYFY22 improved by 37 % from Rs 2943 crore for HYFY21 to Rs 4034 crore for HYFY22.
• Fee based income increased by 30.52 % on a Y-o-Y basis to Rs 556 crore for HYFY22.
• Non-Interest Income up by 53.54% on a Y-o-Y basis to Rs 1,128 crore in HYFY22.
• Cost to Income Ratio improved to 47.56% for HYFY22 as against 51.39% for HYFY21.
• Return on Assets (ROA) improved to 0.47% for HYFY22 against 0.25% for HYFY21.
• Return on Equity (ROE) also improved 10.92% for HYFY22 against 6.93% for HYFY21.

Assets & Liabilities

• The bank's total Business grew by 13.27% on a Y-o-Y basis to Rs 296,808 crore. The same is up by 4.15% on a Q-o-Q sequential basis.
• Total Deposits up by 14.47% on a Y-o-Y basis to Rs 181,572 crore in Q2FY22.
• Gross Advances grew by 11.44% on a Y-o-Y basis to Rs 115,236 crore in Q2FY22 as against Rs 103,408 crore in Q2FY21.
• Net Advances grew by 13.55 % on a Y-o-Y basis to Rs 110,728 crore in Q2FY22.
• RAM (Retail, Agri. & MSME) Business grew by 14% on a Y-o-Y basis. Retail advances grew by 14.47% to Rs 30480 crore on a Y-o-Y basis. MSME advances grew by 20.66% on a Y-o-Y basis to Rs 22995 crore for Q2FY22.

Capital Adequacy

• The bank's total Basel III Capital adequacy ratio improved to 14.67% with a Common Equity Tier 1 ratio of 11.38% for Q2FY22.
• Liquidity Coverage Ratio at 201.55 %, well above the regulatory requirement of 100%.
• Bank has issued equity shares of 403.70 crore on 17th July 2021.

Asset quality

• The bank's gross NPA declined to 5.56% as of 30.09.2021 against 8.81 % as of 30.09.2020. The same was 6.35 % as on 30.06.2021.
• Net NPA reduced to 1.73% as on 30.09.2021 against 3.30% as on 30.09.2020. The same was 2.22 % as on 30.06.2021.
• Provision Coverage ratio improved to 92.38% as on 30.09.2021 as against 87.15% as on 30.09.2020. The same was 90.70 % as on 30.06.2021.
• Bank holds cumulative Covid-19 provision of Rs 973 crore as of 30th Sept 2021.