scorecardresearchBank of Maharashtra surges 3.5% on positive business update, RBI rate hike

Bank of Maharashtra surges 3.5% on positive business update, RBI rate hike pause

Updated: 06 Apr 2023, 12:45 PM IST
TL;DR.

Bank of Maharashtra's gross advances for the quarter ending March 2023 rose 30% to 1.75 lakh crore, while total deposits rose 15.7% to 2.34 lakh crore. The stock has increased by nearly 84 percent in the last five years.

Bank of Maharashtra provides home loans at 7.80 percent per annum onwards, with loan tenures of up to 30 years.

Bank of Maharashtra provides home loans at 7.80 percent per annum onwards, with loan tenures of up to 30 years.

Shares of Bank of Maharashtra rose 3.5 percent on Thursday after the lender reported that its gross advances for the quarter ended March 31, 2023, surged by 30 percent to 1.75 lakh crore. This was a notable increase from the 1.35 lakh crore reported in the year-ago period.

The lender also stated that its total deposits for the March quarter stood at 2.34 lakh crore, representing a 15.7 percent jump from the 2 lakh crore reported in the same period last year.

Additionally, the Reserve Bank of India's decision to pause the repo rate hikes added to the positive sentiment.

During Thursday’s trade, the stock opened at a price of Rs. 25.65 per share and grew further during the early trading session to touch an intraday high of Rs. 26.55 per share. It was trading at 26.25, up by 2.34 percent, at 11:15 a.m. on the NSE.

The stock touched a 52-week high of Rs. 36.25 on December 15, 2022, and a 52-week low of Rs. 15 on June 20, 2022, indicating that at the current level, the stock is trading over 75 percent above its 52-week low and 27.5 percent below its 52-week high.

The stock has declined by almost 4 percent in the last one month. However, in the last six months, it has given a positive return of over 42 percent. Furthermore, the stock has increased by nearly 84 percent in the last five years.

Article
Stock price chart of Bank of Maharashtra

On Monday, the public sector bank released its provisional business update for the quarter ending March 2023. At the end of the quarter, the bank had total deposits and gross advances of 2,34,092 crore and 1,75,255 crore, respectively. This is an increase from the figures at March 2022 end, which were 2,02,294 crore and 1,35,240 crore, respectively.

The total business at the end of the quarter was 4,09,347 crore, which is higher than the previous year’s figure of 3,37,534 crore.

The proportion of low-cost current account, savings account (CASA) deposits decreased to 53.39 percent of total deposits as compared to 57.85 percent at March 2022 end. However, the proportion of CASA improved from 52.50 percent in the December quarter.

The credit-deposit ratio also saw an improvement to 74.87 percent as compared to 66.85 percent YoY.

In other news, A CBI court on Monday convicted 10 people, including a former assistant general manager (AGM) of Bank of Maharashtra, for causing a loss of 3.73 crore to the public sector bank by availing credit facilities and imposed a fine of 5.11 crore on them, reported Hindustan Times.

Bank of Maharashtra, established in 1935, is headquartered in Pune. The bank had 29 million customers across the country with 2022 branches as of March 2022. It has the largest network of branches for any nationalised bank in the state of Maharashtra, its website shows.

 

Article
loans given by Indian banks
First Published: 06 Apr 2023, 12:45 PM IST