Bank of Maharashtra's Q2 FY25 Results Show Strong Performance and Decrease in Stressed Loans

Bank of Maharashtra, one of the leading public banks in India, has recently declared its financial results for the quarter ending June 2024. The stock call for the bank by MarketsMOJO is ‘Hold’. The bank has shown outstanding performance in this quarter, with a score of 32, which is an improvement from the previous score of 27 in the last 3 months.

One of the major factors contributing to this success is the bank’s low Gross Non-Performing Assets (NPA) ratio, which stands at 1.85% and has been consistently falling in the last five quarters. This indicates that the proportion of stressed loans given by the bank is decreasing. Additionally, the bank’s Net Interest Income (NII) for this quarter is the highest at Rs 2,799.10 crore, showing a growth trend in the last five quarters. This indicates that the bank’s core business is generating higher income.

The bank’s Interest Earned for this quarter is also the highest at Rs 5,874.64 crore, with a positive sales trend in the near term. The Profit After Tax (PAT) for this quarter is the highest at Rs 1,293.49 crore, showing a positive trend in the near term. The bank’s Operating Cash Flow for the last three years is also the highest at Rs 11,596.79 crore, indicating that the company has generated higher cash revenues from its business operations.

The Operating Profit (PBDIT) for this quarter is the highest at Rs 1,400.37 crore, with a positive trend in the near term. The Profit Before Tax (PBT) for this quarter has grown at 32.2% over the average PBT of the previous four quarters, which is a positive trend. Similarly, the PAT for this quarter has grown at 27.6% over the average PAT of the previous four quarters, indicating a positive trend in the near term. The Earnings per Share (EPS) for this quarter is also the highest at Rs 1.83, showing an increase in profitability and higher earnings for shareholders.

The bank’s Net NPA ratio for this quarter is the lowest at 0.20%, indicating a decrease in stressed loans. The Credit Deposit Ratio for the last four periods is also the highest at 76.87%, showing that the bank has been creating proportionately higher loans against its deposits, leading to higher revenue generating assets.

However, one area of concern for the bank is its Non-Operating Income, which is 66.52% of the Profit Before Tax (PBT). This indicates that the bank’s income from non-business activities is high, which may not be a sustainable business model.

Overall, Bank of Maharashtra has shown a strong financial performance in the quarter ending June 2024, with positive trends in various key indicators. This showcases the bank’s ability to generate higher income and create value for its shareholders.