Bank of Maharashtra reported a consolidated net profit of Rs 1,327.08 crore for the second quarter of FY25, marking a significant increase of 44.28% compared to Rs 919.75 crore in the same period last year, according to a stock exchange filing on October 15. Sequentially, the net profit showed a slight improvement from Rs 1,293.68 crore in the first quarter of the current fiscal year.
Despite the strong earnings report, shares of the bank fell by 44%, trading at Rs 53.96 on the National Stock Exchange (NSE) at 1:24 pm on October 15. The market reaction was unexpected given the robust profit growth.
The bank’s net interest income (NII), a key metric for measuring the profitability of its core lending business, rose by 15% year-on-year to Rs 2,806.8 crore, up from Rs 2,432 crore in the corresponding quarter of the previous fiscal year. This increase was driven by higher interest income from loans and advances.
The bank’s asset quality remained stable on a sequential basis, with gross non-performing assets (NPA) standing at 1.84% in the reported quarter, compared to 1.85% in the June quarter. The net NPA ratio was unchanged at 0.2% during the same period, indicating steady control over bad loans.
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Source: Moneycontrol
News Desk
