Bank of Maharashtra tops the list of PSU lenders in loan growth in the second quarter of FY23

Bank of Maharashtra (BoM) has emerged as the best among public sector lenders in terms of percentage credit growth in the second quarter of 2022-23.

The Pune-headquartered lender registered a 28.62 per cent increase in gross deposits at Rs 1,48,216 crore at the end of September 2022, according to the published quarterly figures of public sector banks (PSB).

It was followed by Union Bank of India with a growth of 21.54 percent to Rs 7,52,469 crore. The country’s largest lender State Bank of India was ranked third with an 18.15 percent jump in gross contributions.

However, SBI’s total loans were about 17 times higher at Rs 25,47,390 crore compared to BoM’s Rs 1,48,216 crore in real terms.

In terms of Retail-Agriculture-MSME (RAM) loans, BoM recorded the highest growth at 22.31 per cent, followed by Bank of Baroda at 19.53 per cent and SBI at 16.51 per cent during the period under review.

In terms of low-cost deposits in current account (CASA), BoM topped the chart with 56.27 percent followed by Reserve Bank of India with 50.99 percent.

BoM and SBI with 3.55 per cent net interest margin (NIM), a key profitability parameter, topped the PSBs. It was followed by Bank of India with 3.49 percent and Reserve Bank of India with 3.44 percent.

BoM and SBI were in the bottom quartile in terms of gross non-performing assets (NPAs) and net NPAs, according to an analysis of quarterly financial figures released by public sector lenders.

According to the analysis, gross NPAs reported by BoM and SBI were 3.40 percent and 3.52 percent of their total advances, respectively, in the second quarter. The net NPA of these banks came down to 0.68 percent and 0.80 percent, respectively, at the end of September 2022.

Moreover, BoM has a capital ratio of 16.71 per cent, the highest among PSBs, followed by Canara Bank at 16.51 per cent and Indian Bank at 16.15 per cent at the end of the second quarter of 2022-23.

Finance Minister Nirmala Sitharaman said last week that the government’s efforts to reduce bad loans have paid off as all 12 PSBs reported a 50 percent expansion in combined profit at Rs 25,685 crore in the second quarter.

In the first half of FY23, the cumulative profit of all PSBs grew by 32 percent to Rs 40,991 crore.

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