Shares of Bank of Maharashtra gained over 4% in the early trading session on Wednesday, following the release of the bank’s Q3 FY24 (third quarter) business update. In a filing to the exchange on Tuesday, the public sector lender reported an 18.92% improvement in its overall business, reaching ₹4,34,534 crore, for the quarter ending December.
The bank’s gross advances showed healthy growth, reaching ₹1,88,796 crore in Q3 FY24, a remarkable increase of 20.28% compared to Q3 FY23 gross advances of ₹1,56,962 crores. Additionally, the bank’s total deposits grew by 17.90% YoY to ₹2,45,738 crore in Q3 FY24.
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The Current Account and Savings Account (CASA) stood at ₹1,23,326 crore, marking a 12.70% increase from ₹1,09,430 crores. The CD ratio for the quarter was reported at 72.30%, a marginal drop from 76.83% in the corresponding quarter of the previous year.
After the double-digit loan growth in Q3, the bank’s shares started today’s trading session positively at ₹46 per, compared to the previous closing price of ₹45.45 each. The stock further rallied to ₹47.40 per share, reflecting a gain of 4.3%.
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Stock Performance
Over the past three years, the stock has consistently delivered positive returns. In the calendar year 2021, they saw a significant increase of 47%. The following year witnessed a big gain of 59%.
In the most recent calendar year, 2023, the stock continued its upward trend, yielding a return of 48%. Despite this stellar rally, the current stock price is still 51% below its all-time high ₹96.50 per share, which was reached in 2008.
Scorecard of FY23
In FY23, the bank’s total business grew by a healthy 21.23% to ₹4,09,202 crores of ₹3,37,534 crores. Its total deposits grew by 15.71% from ₹2,02,294 crore in FY22 to ₹2,34,083 crore in FY23, while the gross advances grew by 29.49% to ₹1,75,120 crore in FY23 from ₹1,35,240 crore in FY22.
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Its net profit more than doubled to ₹2,602 crore in FY23 as against ₹1,152 crore in FY22.
The bank plans to expand its presence nationwide by establishing branches in every district. The strategy for growth involves tapping into emerging product segments and strengthening its position in existing revenue streams. In FY23, the bank successfully expanded its branch network to 2,203 branches.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
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Published: 03 Jan 2024, 11:56 IST