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Mahabank Q3 net up 136.5% at Rs 840 cr, interest margins boost bottom-line

Public sector lender to raise capital up to Rs 7,500 cr; recommends dividend of 13% per share of Rs 10 each

Bank of Maharashtra

Bank of Maharashtra | Photo: Wikipedia

Abhijit Lele Mumbai

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Public sector lender Bank of Maharashtra (Mahabank) posted a 136.5 per cent year-on-year growth in net profit in March 2023 quarter (Q3 FY23) at Rs 840 crore on improvement in margins. Sequentially, profit increased 8.4 per cent from Rs 775 crore in December 2022 (Q3Fy23).

For FY23, the net profit grew by 126 per cent to Rs 2,602 crore as against Rs 1,152 crore for FY22.

Mahabank’s board of directors recommended a dividend of 13 per cent per share of Rs 10 each for the financial year ended March 2023 (FY23), subject to shareholders approval. Its directors also cleared a proposal to raise capital up to Rs 7,500 crore through equity shares through routes like follow-on-public issues, rights issue and Qualified Institutional Placement (QIP). It could also raise capital through issue of BASEL III Bonds or permitted securities, subject to the necessary approvals, Pune-based lender informed BSE. Its capital adequacy ratio stood at 18.14 per cent with Common Equity Tier of 12.66 per cent at end of March 2022.

The bank’s stock closed 8.16 per cent higher at Rs 30.08 per share.

Mahabank’s net interest income (NII), interest revenues minus interest expenses, grew by 35.66 per cent on Y-o-Y basis to Rs 2,187 crore in Q4FY23 as against Rs 1,612 crore for Q4FY22. The same increased by 10.47 per cent on a Q-o-Q sequential basis.

Net interest margin improved to 3.78 per cent for Q4 FY23 from 3.17 per cent for Q4 FY22.

Avances expanded by 29.49 per cent Y-o-Y basis to Rs 1,75,120 crore in Fy23. Total deposits increased by 15.71 per cent Y-o-Y  to Rs 2,34,083 crore.

The asset quality profile improved with gross non-performing assets (NPA) declining to 2.47 per cent in March 2023 from 3.94 per cent in March 2022. The net NPAs also declined 0.25 per cent in March 2023 from 0.47 per cent a year ago.

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First Published: Apr 24 2023 | 5:50 PM IST

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