State-owned Bank of Maharashtra (BoM) reported a net profit of Rs 840 crore for the January-March quarter of FY 2022-23, which is more than twice what it earned in the same period of the previous year. This increase was due to a decrease in bad loans and an increase in interest income. For the entire fiscal year, BoM’s net profit rose by 125.96% to Rs 2,602 crore, with gross advances growing 29.49% to Rs 1,75,120 crore and total deposits rising 15.71% to Rs 2,34,083 crore. The bank’s total business grew by 21.23% to Rs 4,09,202 crore.
BoM’s total income increased to Rs 5,317 crore during Q4, compared to Rs 3,949 crore a year ago. Interest income grew to Rs 4,495 crore from Rs 3,426 crore in the same quarter of the previous year. The bank’s board has recommended a dividend of Rs 1.30 per share or 13% of Rs 10 face value out of the net profits for the year ended March 31, 2023.
BoM managing director A S Rajeev said that the bank plans to raise Rs 1,000 crore via share sale during Q1 of the current fiscal to meet Minimum Public Shareholding (MPS) norms of markets regulator Sebi. Another Rs 1,000 crore would be raised from Follow-on Public Offer (FPO) or Qualified Institutional Placement (QIP) depending on the market situation.
In summary, BoM has seen a significant increase in its net profit and total business for the January-March quarter and entire fiscal year of FY 2022-23. The bank plans to raise funds through a share sale and follow-on public offer or qualified institutional placement to meet regulatory norms.
