Bank of Maharashtra Q3 Results: Core income growth of 16%; Asset quality better

State-run Bank of Maharashtra Ltd. reported its results for the December quarter on Tuesday, January 13. The stock is trading with modest gains in response to the numbers.

Net profit for the period increased by 26.5% from last year to ₹1,779 crore. Net profit during the same quarter last year stood at ₹1,406 crore.

Net Interest Income (NII) or core income earned by the bank stood at ₹3,422 crore, which is a growth of 16% compared to the ₹2,944 crore figure it reported during the same quarter last year.

Bank of Maharashtra's asset quality improved from the September quarter. Gross Non-Performing Assets (GNPA) improved to 1.6% from 1.72% in September, while Net NPAs improved to 0.15% from 0.18% last quarter.

In absolute terms, Gross NPA was little changed at ₹4,388 crore from ₹4,372 crore in September, while Net NPAs stood at ₹413 crore from ₹442 crore in September.

Provisions for the quarter stood at ₹728.19 crore from ₹755.87 crore in the September quarter. Within this metric, provisions for Non-Performing Assets stood at ₹660 crore from ₹583 crore last quarter.

CET-1 ratio at the end of the quarter stood at 13.1% from 14.05% last quarter and 13.6% during the same quarter last year.

Shares of Bank of Maharashtra are near the lowest point of the day after the results, currently trading 0.9% higher at ₹64.33. The stock is trading close to its 52-week high of ₹65.97, having gained nearly 40% over the last 12 months.