The state-owned bank reported a net interest margin of 3.86% for the quarter under review, which was one basis point higher than the previous quarter’s figures, but 12 basis points lower than the ratio of the same period last year.“A further rate cut in February, if it were to materialise, would impact NIM but would likely remain above our expectation of 3.75% as we kept expectations modest,” Managing Director Nidhu Saxena said.
The bank’s net interest income rose 16% to Rs 3,422 crore, while non-interest income was 18% higher at Rs 933 crore.
Operating profit for the quarter was 19% higher at Rs 2,736 crore.
The Pune-headquartered lender managed to further improve its asset quality, with its gross non-performing asset ratio falling to 1.6% at the end of December last year from 1.8% a year earlier. The net NPA ratio stood at 0.15% against 0.2%. Gross advances rose 20% year-on-year to Rs 2.74 lakh crore, while deposit mobilization was 15% higher at Rs 3.22 lakh crore. The current account and savings account ratio to total deposits was 49.5%.
The bank has a 36% share in corporate loans. Saxena said Bank of Maharashtra has a healthy corporate loan pipeline of around Rs 50,000-55,000 crore, of which around Rs 20,000 crore is in various stages of disbursement.
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