Bank Of Maharashtra Q1 Gross Advance Rises 19%

Bank of Maharashtra's gross advances rose 18.7% on a yearly basis to Rs 2.17 lakh crore in the July-September quarter, according to provisional figures released by the bank.

The bank's total business rose 16.9% to Rs 4.94 lakh crore in the quarter-ended September 2024, according to an exchange filing on Thursday.

The bank reported an advance of 15.5% in deposits at Rs 2.76 lakh crore in the second quarter, as compared with Rs 2.39 lakh crore in the same period last year.

CASA ratio—the proportion of deposits that come from low-cost current and savings accounts—dipped to 49.29% from 49.86% in the previous quarter. A lower CASA ratio indicates that the bank relies heavily on costlier wholesale funding, which can hurt the bank's margin.

The credit deposit ratio, which measures how much a bank lends in relation to the deposits raised, rose to 78.6% in comparison to the earlier 76.5% in the same period in the previous fiscal. The higher CD ratio indicates that the loan disbursed exceeds deposits.

The lender raised Rs 3,500 crore from the share sale to investors Life Insurance Corp., ICICI Prudential Life Insurance Co. and Adity Birla Sun Life Insurance Co., among others. The board had approved the allotment of over 61 shares under the qualified institutional placement route.

The public sector lender issued the shares at Rs 57.36 apiece, against the floor price of Rs 60.37. The QIP opened on Sept. 30 and closed on Oct. 4.

Notably, the bank's board had approved the plan to raise Rs 7,500 crore during the current financial year through various modes in a meeting held on April 26.

Bank of Maharashtra's stock rose as much as 1.66% during the day to Rs 55.57 apiece on the NSE. The stock closed 0.91% lower at Rs 54.16 per share. This compares with a 0.07% advance in the benchmark Nifty 50. It has risen 14.87% in the last 12 months and 18.64% year-to-date.