As per the data of banks, Bank of Maharashtra (BoM) has emerged as the best bank as far as management of bad loans is concerned with its net Non-Performing Assets (NPAs) decreased to 0.25% during FY23.
- This is the lowest ratio among all banks having total business above Rs 3 lakh crore including both Private Sectors Banks and Public Sector Banks (PSBs).
- With respect to NPAs, BoM is followed by the HDFC Bank with net NPA falling to 0.27% at 2nd spot and Kotak Mahindra Bank (KMB) at 3rd spot with 0.37% of net advances.
- On the PSB side, BoM was followed by the State Bank of India (SBI) with net NPAs falling to 0.67% and Bank of Baroda (BoB) at 0.89% at the end of March 2023.
Note: All the 12 PSBs together recorded 57% jump in net profit at Rs 1,04,649 crore in FY23, according to published yearly numbers of PSBs.
Highlights:
i.BoM recorded highest growth in profitability with bottom-line growing almost 126% to Rs 2,602 crore during FY23.
ii.BoM also retained the top position in terms of garnering low-cost Current Account and Savings Account (CASA) deposits with 53.38%.
- It is followed by IDBI Bank with 53.02% and KMB at 52.83%.
iii.Total business growth of BoM was also the highest at 21.2% at Rs 4,09,202 crore.
- It is followed by BoB at 14.3% (Rs 18,42,935 crore) at the end of FY23.
iv.In terms of Retail-Agriculture-MSME (RAM) loans, BoM again registered the highest growth of 24.06%.
- It is followed by Punjab National Bank (PNB) at 20.85% and Punjab & Sind Bank at 20.70% on an annual basis.
v.BoM has the highest Provision Coverage Ratio at 98.28% followed by UCO Bank at 94.50% and Indian Bank at 93.82%.
vi.With regard to Capital Adequacy Ratio (CAR), BoM has the highest CAR of 18.14% among PSBs followed by Punjab & Sind Bank at 17.10% and Canara Bank at 16.68% as on March 31, 2023.
vii.In terms of percentage increase in gross advances or loan growth, BoM recorded 29.4% increase on an annual basis in loans at Rs 1,75,120 crore as of March 2023.
- It was followed by Indian Overseas Bank and UCO Bank with 21.2% and 20.6% growth, respectively.
- In absolute terms, SBI was 15.38% higher at Rs 27,76,802 crore.
viii.With regard to deposit growth, BoM witnessed 15.7% rise and mobilized Rs 2,34,083 crore at the end of March 2023.
- It is followed by Bank of Baroda at 2nd position with 13% growth in deposits (Rs 10,47,375 crore) while Punjab National Bank (PNB) recorded 11.26% increase at Rs 12,51,708 crore.
ix.With regards to deposits growth rate, HDFC Bank was at 1st spot with 20.80%, followed by Federal Bank with 17% rise and KMB with 16.49% rise.
Recent Related News:
i.BoM has formed a strategic partnership with Experian India to improve digital security and provide an extensive portfolio of services such as credit risk, advanced analytics, and fraud prevention.
ii.As per the Report of the Comptroller and Auditor General of India for the year ended March 2021 – Union government (Economic & Service Ministries – Civil) No. 1 of 2023 (Compliance Audit Observations), the Department of Financial Services (DFS) infused Rs 831 crore into the BoM in FY20 against the bank’s demand of Rs 798 crore to avoid the surrender of funds amounting to Rs 33 crore.
About Bank of Maharashtra (BoM):
MD & CEO– A S Rajeev
Headquarters– Pune, Maharashtra
Tagline– Ek Parivaar, Ek Bank (One Family One Bank)
Establishment– 1935
