Bank of Maharashtra hits 52-week high; jumps 23% in four days

Bank of Maharashtra gained 2.64% to Rs 35.05, extending its gaining streak for the fourth consecutive trading session.

Shares of the state-run lender jumped 22.55% in four trading sessions from its previous closing low of Rs 28.60 on 9 December 2022.

The stock hit its 52-week high of Rs 36.25 today. The counter has soared 133.67% from its 52-week low of Rs 15 hit on 25 May 2022.

On the BSE, 113.96 lakh shares were traded in the counter so far compared with average daily volumes of 69.15 lakh shares in the past two weeks.

The stock had outperformed the market over the past one month, jumping 53.39% compared with 0.55% increase in the Sensex.

The scrip outperformed the market in past one quarter, soaring 78.83% as against Sensex's 3.38% rise.

The counter had also outperformed the market in past one year, surging 72.66% as against 7.66% jump in Sensex.

On the technical front, the stock's daily RSI (relative strength index) stood at 80.969. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

In daily chart, the stock is trading above its 50, 100 and 200 days simple moving average (SMA) placed at 23.77, 20.78 and 18.90 respectively. These levels will act as crucial support zones in near term.

Meanwhile, on 14 December 2022, the public lender announced an increase in marginal cost of funds based lending rate (MCLR) by 20-30 basis points across different tenors, effective from 14 December 2022.

The overnight MCLR increased from 7.30% to 7.50% and MCLR for one month rose from 7.50% to 7.70%, a 20 basis point hike. The interest rate on the three month MCLR was raised from 7.60% to 7.90%, followed by the six month MCLR rate increased from 7.70% to 8.00% and the one year MCLR rate was raised from 7.90% to 8.20%, a 30 basis point increase. The revised rates will be effective from 14 December 2022.

The state-run bank's net profit surged 102.93% to Rs 535 crore in Q2 FY23 as against Rs 264 crore posted in Q2 FY22. Total income rose 7% year on year (YoY) to Rs 4,317 crore in Q2 FY23 over Q2 FY22.

Bank of Maharashtra is a public sector bank in India. The Government of India held 90.97% stake in the bank as of 30 September 2022.

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