Bank of Maharashtra's quarterly profit jumps to Rs 840 cr
lender to raise Rs 1,000 cr in June quarter
(Press Release) NEW DELHI: State-owned Bank of Maharashtra (BoM) on Monday reported a more than two-fold jump in its net profit to Rs 840 crore for the March quarter, helped by a decline in bad loans and a rise in interest income. The bank had earned a net profit of Rs 355 crore in the year-ago period. Bank’s Net Profit increased by 125.96 % to Rs 2,602 crore in on Y-o-Y basis against ₹ 1,152 crore for the year ended 31.03.2022.
While total business grew 21.23 per cent to Rs 4,09,202 crore, gross advances grew 29.49 per cent to Rs 1,75,120 crore and total deposits rose 15.71 per cent to Rs 2,34,083 crore at the end of March 2023.
During the quarter, total income increased to Rs 5,317 crore as against Rs 3,949 crore a year ago, BoM said in a regulatory filing.
Interest income grew to Rs 4,495 crore during the period under review, from Rs 3,426 crore in the corresponding quarter a year ago.
The bank's board has recommended a dividend of Rs 1.30 per share or 13 per cent of Rs 10 face value out of the net profits for the year ended March 31, 2023.
Addressing media, BoM managing director A S Rajeev said the bank plans to raise Rs 1,000 crore via share sale during the April-June quarter 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, he said.
The bank was ready with Rs 1,000 crore share sale plan in the last quarter itself.
Talking about growth plans, Rajeev said, the bank expects the credit growth of 20-22 per cent while deposits are likely to see an increase of 14-16 per cent in the current year.
He said the bank aims to touch a total business of Rs 5 lakh crore by the end of FY24.
Gross Non-Performing Assets (NPAs) were reduced to 2.47 per cent of gross advances as of March 31, 2023 from 3.94 per cent by the end of March 2022.
Net NPAs also came down to 0.25 per cent of the advances from 0.97 per cent at the end of 2022. Provision Coverage ratio improved to 98.28 % as on 31.03.2023 as against 94.79% as on 31.03.2022
The fall in bad loans ratio helped cut the provisions towards NPAs for Q4FY23 to Rs 545 crore as compared with Rs 568 crore a year ago.
The board also approved a proposal for raising capital aggregating up to Rs 7,500 crore through FPO/ Rights issue/ QIP/ Preferential issue or any other mode or combination in 2023-24.
Further, Rajeev said the bank is comfortable as far as capital requirement is concerned.
Additional capital raised would be able to take care of over 20 per cent growth rate for the next 2-3 years.
The capital adequacy ratio of the bank increased to 18.14 per cent from 16.48 per cent at the end of March 2022.
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Tribal man brings dead sister's skeleton to bank to withdraw money from her account
Keonjhar (PTI): A tribal man in Odisha's Keonjhar district on Monday brought the skeleton of his dead sister to a bank to withdraw the money deposited in her name, police said.
The incident occurred at Maliposi branch of Odisha Grameen Bank located at Patana block of Keonjhar district. The man was identified as Jeetu Munda (50) of Dianali village. He was seeking to withdraw Rs 20,000 from the bank account of his elder sister, Kalra Munda (56), who died on January 26, 2026.
"I have run several times to the bank, and the people there told me to bring the account holder to withdraw money deposited in her name. Though I told them that she had died, they did not listen to me and insisted on bringing her to the bank. Therefore, out of frustration, I dug the grave and brought out her skeleton as proof of her death," an illiterate Jeetu Munda told reporters.
Patana Police Station Inspector in charge (IIC) Kiran Prasad Sahu, who reached the bank after getting information, said, "Jeetu is an illiterate tribal man. He does not know what the legal heir or nominee is. The bank officials have failed to make him understand the procedure to withdraw money from the dead person's account."
However, after the incident, the police assured Jeetu Munda that they would facilitate the withdrawal of money from the bank account of his dead sister. Later, the skeleton was again buried at the graveyard in presence of police.
Meanwhile, local Block Development Officer (BDO) Manas Dandpat said that he was not approached by anyone for the legal heir of late Kalra Munda. "Today only, I came to know about it. We will see what can be done to resolve the issue," the BDO said.
Meanwhile, bank sources said that the nominee in Kalra Munda's bank account was also dead. Therefore, Jeetu Munda was the lone claimant over the money deposited in her name.
The local administration has directed the bank officers to make arrangements and ensure that Jeetu Munda, who is the only claimant as per the rules, gets the money as soon as possible.
