Bank of Maharashtra shares surge over 3% after total business rises 17% in December quarter

Shares of the state-run lender Bank of Maharashtra rose as much as 3.2% to hit an intraday high of ₹65.97 on Monday, January 5, after the bank provided its December business update. On the BSE, Bank of Maharashtra shares advanced as much as 3.16% to hit an intraday high of ₹65.95.

Bank of Maharashtra on Monday said that its total business in December quarter jumped 17.24% to ₹5.95 lakh crore compared with ₹5.07 lakh crore in the same month last year.

The bank's total deposits advanced 15.3% to ₹3.21 lakh crore from ₹2.79 lakh crore and its CASA deposits advanced nearly 16% to ₹1.59 lakh crore compared with ₹1.37 lakh crore in the year.

The Pune-based lender's Retail, Agriculture and MSME (RAM) advances rose 20% during the third quarter to ₹1.71 lakh crore as against ₹1.42 lakh crore in the same period last year.

Bank of Maharashtra's domestic corporate advances jumped 14.49% to ₹98,618 crore and its global corporate advances jumped 19% to ₹1.02 lakh crore.

Bank of Maharashtra Q2 earnings

Bank of Maharashtra in October last year reported net profit of ₹1,633 crore in the second quarter of current financial year, marking an increase of 23% from ₹1,327 crore in the same period last year. The jump in profit came on the back of slightly lower provisioning for bad loans.

Bank of Maharashtra’s provisions for non-performing assets (NPA) came down by 2.5% to ₹583 crore from ₹598 crore in the year-ago period.

Bank of Maharashtra's net interest income or the difference between interest earned on loans and expended on deposits rose 16% to ₹3,248 crore in July-September period from ₹2,807 crore in the same period last year.

Bank's asset quality showed a slight improvement as its gross NPAs, as a percentage of total advances, improved to 1.72% from 1.84% in the year-ago period.

Its net NPAs came in at 0.18% at the end of September quarter from 0.2% in the same period last year.

In absolute terms, Bank of Maharashtra's gross NPAs came in at ₹4,372 crore as against ₹4,010 crore in the year-ago period.

As of 9:51 am, Bank of Maharashtra shares traded 1.2% higher at ₹64.70, outperforming the NIFTY Bank index which was up 0.31%.