In a financial landscape marked by challenges, Bank of Maharashtra (BoM) has emerged as a standout performer among public sector lenders, recording the highest growth rate in deposit mobilization. The third quarter of the fiscal year ended December 2023 saw BoM achieving an impressive 17.89% growth in deposits, setting it apart as a beacon of success in the banking sector.
Out of the 12 public sector banks assessed, only BoM and the State Bank of India (SBI) managed to achieve double-digit growth in deposits during the same period. SBI followed closely with a commendable 12.84% growth, albeit with significantly higher total deposits of Rs 45,67,927 crore compared to BoM’s Rs 2,45,734 crore.
BoM’s success is not confined to the overall deposit growth; the bank has also excelled in low-cost Current Account and Savings Accounts (CASA) deposits, boasting a chart-topping 50.19%. Central Bank of India followed closely with 48.98%, highlighting the strategic advantage that a higher CASA ratio provides in keeping the cost of funds low.
On the asset quality front, BoM reported the lowest gross Non-Performing Assets (NPAs) among its peers, standing at an impressive 2.04% as of December 31, 2023. SBI closely followed with a gross NPA of 2.42%. In terms of Net NPAs, BoM and Indian Bank led the pack with 0.22% and 0.53%, respectively.
Capital Adequacy Ratio (CAR) is a crucial metric for evaluating a bank’s stability, and in this regard, BoM outshone its public sector counterparts with a robust CAR of 16.85%, the highest among PSBs. Indian Overseas Bank (IOB) and Punjab & Sind Bank secured the next spots with CARs of 16.80% and 16.13%, respectively.
Despite facing headwinds, the cumulative net profit of all 12 PSBs for the first nine months of FY’24 amounted to Rs 98,355 crore. This is in comparison to the total profit of Rs 104,649 crore reported for the full fiscal year FY’23.
In terms of quarterly net profit growth, Punjab National Bank (PNB) emerged as a top performer with an impressive 253% growth (Rs 2,223 crore). Bank of India and Union Bank of India also posted notable growth rates of 62% (Rs 1,870 crore) and 60% (Rs 3,590 crore), respectively. However, SBI, UCO Bank, and Punjab & Sind Bank reported declines in net profit by 35.49%, 22.97%, and 69.44%, respectively.
