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Bank of Maharashtra (BoM) tops PSU lenders’ list in Q2 credit growth

Bank of Maharashtra (BoM) tops PSU lenders’ list in Q2 credit growth: In terms of loan growth in percentage terms during the second quarter of 2022-23, Bank of Maharashtra (BoM) has emerged as the top performer among public sector lenders. According to the Public Sector Banks (PSBs) quarterly figures, the Pune-based lender increased gross advances by 28.62 percent to Rs 1,48,216 crore at the end of September 2022.

BoM tops PSU lenders’ list in Q2 credit growth: Key Points

  • Union Bank of India came in second with a 21.54 percent increase to Rs 7,52,469 crore.
  • State Bank of India, the country’s largest lender, came in third with an 18.15 percent increase in gross advances.
  • In terms of Retail-Agri-MSME (RAM) loans, the Bank of Maharashtra recorded the highest growth of 22.31 percent during the period under review, followed by the Bank of Baroda at 19.53 percent and SBI at 16.51 percent.
  • In terms of low-cost current account savings account (CASA) deposits, BoM led the way followed by the Central Bank of India.
  • With a 3.55 percent net interest margin (NIM), BoM and SBI outperformed PSBs, a key profitability parameter. It was followed by the Bank of India and the Central Bank of India.
  • According to an analysis of quarterly financial data published by public sector lenders, BoM and SBI were in the bottom quartile in terms of gross non-performing assets (NPAs) and net NPAs.
  • BoM has the highest capital adequacy ratio among PSBs at 16.71 percent, followed by Canara Bank and Indian Bank at 16.15 percent at the end of the second quarter of 2022-23.

What is the Net Interest Margin (NIM)?

The net interest margin (NIM) compares the net interest income generated by a financial firm from credit products such as loans and mortgages to the outgoing interest paid to holders of savings accounts and certificates of deposit (CDs). The NIM, expressed as a percentage, is a profitability indicator that estimates a bank’s or investment firm’s long-term viability. This metric assists prospective investors in deciding whether or not to invest in a specific financial services firm by providing insight into the profitability of their interest income versus interest expenses.

Bank of Maharashtra (BoM) tops PSU lenders' list in Q2 credit growth |_3.1

About Bank of Maharashtra

  • The Bank of Maharashtra is a public sector bank based in Pune, India.
  • It has the largest branch network of any nationalized bank in Maharashtra.
  • Founded: 16 September 1935
  • Founders: D. K. Sathe, V. G. Kale
  • Headquarters: Pune
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