Bank of Maharashtra shares fall over 4% ahead of Q3 results; a quick look at lender's Q2 FY25 performance

Shares of the PSB slipped as much as 4.5% to ₹50.36 apiece on the NSE in the early trade.

The public sector bank posted a 44% jump in its profit at ₹1,327 crore for the second quarter ended September 2024 (Q2 FY25) on account of improvement in interest income.

The Pune-based lender had posted a net profit of ₹920 crore in the same quarter a year ago.

Total income increased to ₹6,809 crore during the quarter under review against ₹5,736 crore in the same period last year, BoM said in a regulatory filing.

Briefing about the financial performance, BoM Managing Director Nidhu Saxena said net interest margin (NIM) increased to 3.98%, from 3.88% in the same quarter a year ago.

Among the stack of 12 public sector banks, BoM has the highest NIM, Saxena had said, adding the target for the NIM for the current fiscal is 3.75-3.85%, anticipating a rate cut during the year.

Saxena further said the bank expects the net profit of the bank to cross ₹5,000 crore during the current fiscal year.

In H1, the profit crossed ₹2,500 crore, and the trend will improve further going forward.

Net Interest Income (NII) grew by 15.41% to ₹2,807 crore during the quarter as against ₹2,432 crore in the same period a year ago.

The bank also demonstrated improvement in asset quality with gross non-performing assets (NPAs) moderating to 1.84% of the gross loans by the end of September 2024 from 2.19% a year ago.

Similarly, net NPAs, or bad loans, came down to 0.20% from 0.23% at the end of the second quarter of the previous fiscal year.

The provision coverage ratio came down marginally to 98.31%, as against 98.40% in September 2023.

Bank of Maharashtra share price

Shares of Bank of Maharashtra have risen nearly 4% in the past 12 months.