Bank of Maharashtra (BoM) emerged as the top performer among public sector lenders in terms of percentage loan growth during the second quarter of 2022-23.
The Pune-headquartered lender recorded a 28.62% increase in gross advances to Rs 1,48,216 crore at the end of September 2022, according to quarterly figures released by Public Sector Banks (PSBs).
It was followed by Union Bank of India with a growth of 21.54% to Rs 7,52,469 crore. The country’s largest lender, State Bank of India, was in third place with an 18.15% increase in gross advances.
However, SBI’s total loans were around 17 times higher at Rs 25,47,390 crore compared to BoM’s Rs 1,48,216 crore in absolute terms.
In retail, agriculture and MSME (RAM) lending, BoM recorded the highest growth at 22.31%, followed by Bank of Baroda at 19.53% and SBI at 16.51% over the period considered.
When it comes to low-cost Current Account Savings Account (CASA) deposits, the BoM leads the ranking with 56.27%, followed by Canara Bank at 50.99%.
The BoM and SBI, with a net interest margin (NIM) of 3.55%, a key profitability metric, topped the PSBs. It was followed by the Bank of India at 3.49% and the Central Bank of India at 3.44%.
BoM and SBI were in the lowest quartile for gross non-performing assets (NPAs) and net NPAs, according to an analysis of quarterly financial figures released by public sector lenders.
According to the analysis, the raw NPAs reported by BoM and SBI were 3.40% and 3.52% of their total advances in the second quarter, respectively. The net NPAs of these banks fell to 0.68% and 0.80%, respectively, at the end of September 2022.
Additionally, BoM has a capital adequacy ratio of 16.71%, the highest among PSBs, followed by Canara Bank at 16.51% and Indian Bank at 16.15% at the end of the second quarter of 2022. -23.
Last week, Finance Minister Nirmala Sitharaman said the government’s efforts to reduce bad debts had yielded results, with the 12 PSBs reporting a 50 per cent increase in their combined net profit to Rs 25,685 crore as of second trimester.
In the first half of FY23, the cumulative net profit of all PSBs increased by 32% to Rs 40,991 crore.