Bank of Maharashtra Q2 profit up 72% to Rs 920 crore on higher interest income

Total income increased to Rs 5,796 crore during the quarter under review

State-owned Bank of Maharashtra (BoM) on Monday posted a 72 per cent jump in net profit at Rs 920 crore for the September quarter, aided by a decline in bad loans and a rise in interest income.

The lender had reported a standalone profit of Rs 535 crore in the year-ago period.

Total income increased to Rs 5,796 crore during the quarter under review, against Rs 4,317 crore in the same period last year, BoM said in a regulatory filing. The bank earned interest income of Rs 5,068 crore during the quarter, compared to Rs 3,815 crore in the same period a year ago.

Talking about the financial performance, BoM managing director A S Rajeev said Net Interest Margin (NIM) increased to 3.89 per cent, from 3.55 per cent in the same quarter a year ago. The bank was able to reduce gross Non-Performing Assets (NPAs) to 2.19 per cent of the gross loans by the end of September 2023, from 3.40 per cent a year ago.

Likewise, net NPAs or bad loans came down to 0.23 per cent, from 0.68 per cent at the end of the second quarter of the previous fiscal.