Bank of Maharashtra (BoM) has emerged as the top performer among public sector lenders in terms of loan growth in percentage terms during the second quarter of 2022-23. The Pune-headquartered lender recorded a growth of 28.62 per cent in gross advances to Rs 1,48,216 crore at the end of September 2022, according to the published quarterly numbers of Public Sector Banks (PSBs).
It was followed by Union Bank of India with a growth of 21.54 per cent at Rs 7,52,469 crore. The country’s largest lender State Bank of India stood third with an 18.15 per cent jump in gross advances. However, SBI’s total debt stood at Rs 25,47,390 crore, nearly 17 times higher than BoM’s Rs 1,48,216 crore. With respect to Retail-Agri-MSME (RAM) loans, BoM registered the highest growth of 22.31 per cent during the period under review, followed by Bank of Baroda at 19.53 per cent and SBI at 16.51 per cent.
As far as low cost current account savings account (CASA) deposits are concerned, BoM topped the chart with 56.27 per cent followed by Central Bank of India at 50.99 per cent. BoM and SBI topped PSBs, a key profitability parameter, with 3.55 per cent net interest margin (NIM). It was followed by Bank of India at 3.49 per cent and Central Bank of India at 3.44 per cent. BoM and SBI were in the lowest quartile as far as gross non-performing assets (NPAs) and net NPAs are concerned, according to an analysis of quarterly financial data published by public sector lenders.
As per the analysis, the gross NPAs reported by BoM and SBI were 3.40 per cent and 3.52 per cent, respectively, of their total advances in the second quarter. At the end of September 2022, the net NPA of these banks became 0.68 percent and 0.80 percent respectively. Also, BoM has a capital adequacy ratio of 16.71 per cent, which is the highest among PSBs, followed by Canara Bank at 16.51 per cent. and Indian Bank at 16.15 per cent at the end of Q2 2022-23.
Finance Minister Nirmala Sitharaman last week said the government’s efforts to reduce bad debt had yielded results and all the 12 PSBs reported a 50 per cent jump in combined net profit to Rs 25,685 crore in the second quarter. In the first half of FY23, the cumulative net profit of all PSBs grew 32 per cent to Rs 40,991 crore.
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