Bank of Maharashtra net profits jump 41% to Rs 2309 cr in Q2FY27

MUMBAI: Bank of Maharashtra reported a 41.4 percent year-on-year rise in net profit to Rs 2,309.59 crore in the Sept quarter, driven by higher interest and non-interest income, improved operating efficiency and lower provisions for bad loans.Net interest income (NII) rose 21.8 percent to Rs 3,954.23 crore. Interest income increased 20.7 percent to Rs 8,606.37 crore while interest expenditure grew 19.9 percent to Rs 4,652.14 crore. The bank's current and savings account (CASA) deposits accounted for more than 50 percent of its deposit base, helping contain funding costs.Other income rose 33.6 percent to Rs 1,129.04 crore. Retail banking contributed Rs 4,374.70 crore to revenue, corporate and wholesale banking Rs 3,543.33 crore, and treasury Rs 1,713.68 crore. Total income, including interest and other income, increased 22.1 percent to Rs 9,735.41 crore.Operating profit rose 30.9 percent to Rs 3,368.67 crore as operating expenses grew 12.9 percent to Rs 1,714.60 crore. Employee costs increased 11.7 percent to Rs 917.88 crore, while other expenses rose 14.4 percent to Rs 796.72 crore. The operating margin stood at 34.6 percent.Provisions and contingencies fell 13.4 percent to Rs 654.45 crore. Provisions for non-performing assets dropped 79.2 percent to Rs 121.11 crore from Rs 583.01 crore a year earlier. Profit before tax rose 49.3 percent to Rs 2,714.22 crore, while tax expense increased to Rs 404.63 crore from Rs 185.24 crore.Gross advances grew around 17 percent year on year to more than Rs 2.54 lakh crore, while deposits rose around 12 percent to over Rs 3.09 lakh crore. The gross non-performing asset ratio improved to 1.25 percent from 1.72 percent, with gross bad loans at Rs 4,113.55 crore. The net NPA ratio declined to 0.12 percent from 0.18 percent, while net bad loans stood at Rs 396.13 crore.The bank's Basel III capital adequacy ratio stood at 18.51 percent, including a common equity tier-1 ratio of 15.61 percent. Annualised return on assets was 2.02 percent.You use AI every day. Now get your AI Quotient. Take the AIQ test.