State-owned Bank of Maharashtra (BoM) has emerged as the top performer among public sector lenders in terms of loan and savings deposit growth during the second quarter of the current financial year, as per quarterly results data.
The Pune-headquartered lender recorded an 11.46 per cent increase in gross advances at Rs 1,15,236 crore in the July-September period of 2021-22, according to the published data of BoM.
It was followed by Punjab & Sind Bank which posted 9.53 per cent growth in advances with aggregate loans at Rs 67,574 crore at the end of September 2021, as per data from the bank's quarterly results.
In terms of RAM (retail, agriculture and MSME) segment, the bank registered a highest growth rate of 14.24 per cent at Rs 70,515 crore.
When it came to deposit mobilisation, BoM with a 14.47 per cent growth was a notch behind Punjab and Sind Bank, while the country's largest lender State Bank of India recorded an 9.69 per cent rise.
However, in absolute terms, SBI's deposit base was 20 times higher at Rs 36.90 lakh crore as against Rs 1.81 lakh crore of BoM. Current account, savings account (CASA) for BoM saw a 22 per cent rise, the highest among the public sector lenders, during the quarter.
As a result, CASA was 54 per cent or Rs 97,889 crore of the total liability of the bank. Total business of BoM increased 13.27 per cent to Rs 2.97 lakh crore at the end of September 2021.
For the second quarter, BoM's standalone net profit more than doubled to Rs 264 crore as against Rs 130 crore in the same period a year ago.
During the quarter, the bank had written off bad loans worth Rs 1,100 crore including Rs 550 crore exposur to two SREI finance companies after making full provisions. RBI has taken SREI Infrastructure Finance and Equipment leasing company to bankruptcy court for resolution.
The bank's asset quality improved significantly as the gross bad loans or gross non-performing assets (NPAs) dipped to 5.56 per cent of gross advances by the end of September 2021 as against 8.81 per cent by the end of the second quarter of the previous fiscal.
Net NPAs nearly halved to 1.73 per cent from 3.30 per cent at the end of second quarter of the last financial year, while provision coverage ratio improved to 92.38 per cent as against 87.15 per cent.
(With inputs from PTI)
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