Bank of Maharashtra Q2 Results: Gross, Net NPA increase in absolute terms; NII up 16%

Shares of state-run Bank of Maharashtra Ltd. declined 4% after the lender reported its second quarter earnings.

Its net profit increased 23.2% to ₹1,633 crore from ₹1,327 crore in the previous year.

Its net interest income increased 15.7% to ₹3,248 crore from ₹2,807 crore in the year-ago period.

The lender's gross non-performing assets (NPA) increased to ₹4,372 crore from ₹4,206 crore in the previous quarter. It was at 1.72% in the September quarter compared to 1.74% in the first quarter.

Bank of Maharashtra's net NPA expanded to ₹442.1 crore from ₹434.4 crore from the previous year. It remained unchanged at 0.18% sequentially.

Earlier this month, the lender had reported its business update for the second quarter.

Its total deposits increased by 12.1% to ₹3.09 lakh crore in the September quarter from ₹2.76 lakh crore in the previous year.

Its global business grew by 14.2% to ₹5.63 lakh crore from ₹4.93 lakh crore in the second quarter last year.

Bank of Maharashtra's current account and savings account (CASA) deposits were up 14.55% at ₹1.55 lakh crore in the September quarter from last year's ₹1.36 lakh crore.

The CASA ratio expanded to 50.35% in the July to September period from 49.29% in the year-ago period.

Bank of Maharashtra's global advances of ₹2.54 lakh crore increased 16.87% from ₹2.17 lakh crore last year.

Focus will be on Bank of Maharashtra's asset quality picture and the margin profile, along with the growth in its core income when the lender reports numbers.

Shares of Bank of Maharashtra were trading nearly 1.7% lower at ₹56.59 apiece around 11 AM on Tuesday. It extended its losses and was down 4.1% at ₹55.25 apiece at 3pm. The stock has gained 20% in the last six months.

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