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NEW DELHI: State Bank of Maharashtra (BoM) posted a net jump of 72 per cent on Monday gain at Rs 920 crore for the September quarter, helped by a decline in bad loans and a rise in interest rates income. The lender had reported a standalone profit of Rs 535 crore in the year-ago period.
Total revenue rose to Rs 5,796 crore during the quarter under review, against Rs 4,317 crore in the same period last year, BoM said in a filing with the regulator.
The bank earned interest income of Rs 5,068 crore during the quarter, compared to Rs 3,815 crore in the same period a year ago.
Net interest income (NII) grew 28.88 per cent to Rs 2,432 crore in Q2FY23, compared to Rs 1,887 crore in the same period a year ago.
Speaking about the financial performance, BoM director AS Rajeev said operating profit has registered a growth of 31 per cent to Rs 1,920 crore, compared to Rs 1,462 crore in the same period a year ago.
Net interest margin (NIM) rose to 3.89 percent from 3.55 percent in the same quarter a year ago, he said, while NIM is expected to remain around 3.5 percent in the remainder of the current fiscal.
In terms of asset quality, the lender reported an improvement over gross non-performing assets. NPAs, or bad loans, fell to 2.19 percent of gross advances at the end of September 2023, from 3.40 percent at the end of the second quarter of the previous fiscal.
Similarly, net NPAs or bad loans fell to 0.23 per cent from 0.68 per cent at the end of the second quarter of the previous fiscal.
Provisions The coverage ratio improved to 98.40 percent, compared to 96.06 percent in September 2022.
Provisions for bad loans for the second quarter rose to Rs 597 crore, compared to Rs 532 crore set aside for the year-ago period.
The increase in provision due to derailments was recorded in the agricultural sector portfolio due to erratic rainfall.
The bank has made an additional provision of Rs 300 crore to meet the rainfall deficit, which is impacting farm loans, he said.
During the quarter, gross advances rose 23.55 percent to Rs 1,83,122 crore at end-September 2023.
Regarding the capital adequacy ratio, Rajeev said it has increased to 17.61 percent, with a Common Equity Tier 1 (CET1) ratio of 12.28 percent.
Asked if a further rise in interest rates is expected, Rajeev said it has peaked on both the deposit and credit sides and there may be no change in the next two quarters.
There may be some pressure on savings account growth over current accounts due to the rare increase in deposits, he said, adding that this should stabilize in the next few quarters.
Total revenue rose to Rs 5,796 crore during the quarter under review, against Rs 4,317 crore in the same period last year, BoM said in a filing with the regulator.
The bank earned interest income of Rs 5,068 crore during the quarter, compared to Rs 3,815 crore in the same period a year ago.
Net interest income (NII) grew 28.88 per cent to Rs 2,432 crore in Q2FY23, compared to Rs 1,887 crore in the same period a year ago.
Speaking about the financial performance, BoM director AS Rajeev said operating profit has registered a growth of 31 per cent to Rs 1,920 crore, compared to Rs 1,462 crore in the same period a year ago.
Net interest margin (NIM) rose to 3.89 percent from 3.55 percent in the same quarter a year ago, he said, while NIM is expected to remain around 3.5 percent in the remainder of the current fiscal.
In terms of asset quality, the lender reported an improvement over gross non-performing assets. NPAs, or bad loans, fell to 2.19 percent of gross advances at the end of September 2023, from 3.40 percent at the end of the second quarter of the previous fiscal.
Similarly, net NPAs or bad loans fell to 0.23 per cent from 0.68 per cent at the end of the second quarter of the previous fiscal.
Provisions The coverage ratio improved to 98.40 percent, compared to 96.06 percent in September 2022.
Provisions for bad loans for the second quarter rose to Rs 597 crore, compared to Rs 532 crore set aside for the year-ago period.
The increase in provision due to derailments was recorded in the agricultural sector portfolio due to erratic rainfall.
The bank has made an additional provision of Rs 300 crore to meet the rainfall deficit, which is impacting farm loans, he said.
During the quarter, gross advances rose 23.55 percent to Rs 1,83,122 crore at end-September 2023.
Regarding the capital adequacy ratio, Rajeev said it has increased to 17.61 percent, with a Common Equity Tier 1 (CET1) ratio of 12.28 percent.
Asked if a further rise in interest rates is expected, Rajeev said it has peaked on both the deposit and credit sides and there may be no change in the next two quarters.
There may be some pressure on savings account growth over current accounts due to the rare increase in deposits, he said, adding that this should stabilize in the next few quarters.
