Q3 results impact: Bank of Maharashtra, Federal Bank shares rally up to 9% on solid earnings

By admin On Jan 16, 2023

Bank of Maharashtra reported a two-fold jump in its standalone profit after tax at Rs 775 crore for the December quarter. Gross NPAs declined to 2.94 per cent of total advances compared with 4.73 per cent in the year-ago quarter, the bank said.

Federal Bank said its December quarter profit at Rs 804 crore was its highest ever. The profit was up 54 per cent YoY over Rs 522 crore in the corresponding quarter last year.

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Shares of Bank of Maharashtra and Federal Bank jumped up to 9 per cent in Monday’s trade after the two lenders reported quarterly results for the December quarter.

Shares of Bank of Maharashtra soared 8.51 per cent to hit a high of Rs 34.40 after the state-run reported a two-fold jump in its standalone profit after tax at Rs 775 crore for the December quarter amid improved asset quality. The Pune-based had recorded profit of Rs 325 crore in the corresponding quarter last year.

Shares of Federal Bank, on the other hand, rose 3.54 per cent to hit a high of Rs 143.35. This lender reported a 54 per cent YoY rise in Q3 net.

Bank of Maharashtra

The bank’s total income increased to Rs 4,770 crore in the December quarter compared with Rs 3,893 crore in the same quarter last year, the bank said in a regulatory filing. On the asset quality front, the bank recorded an improvement with gross NPAs (non-performing assets) declining to 2.94 per cent compared with 4.73 per cent in the year-ago quarter. Net NPA eased below 1 per cent to 0.47 per cent, compared with1.24 per cent in the year-ago quarter. The capital adequacy ratio came in at 17.53 per cent in the December quarter against 14.85 per cent YoY.

Federal Bank

Federal Bank said its December quarter profit at Rs 804 crore was its highest ever. The profit was up 54 per cent YoY over Rs 522 crore in the corresponding quarter last year.

The private lender’s net interest income for the quarter came in at Rs 1,956 crore, up 27.14 per cent over Rs 1,539 crore in the year-ago quarter. Net interest margin or NIM improved to 3.49 per cent up 22 bps YoY.

Managing Director & CEO Shyam Srinivasan said, “An all-round strong operating performance has helped us deliver the highest ever quarterly profit of Rs 804 crore. Credit cost has improved on the back of continued strong asset quality, with GNPA and NNPA at 2.43 per cent and 0.73 per cent, respectively. Broad based asset growth of 19 per cent, coupled with core revenue profile has yielded in higher ROA, currently at 1.33 per cent.”

The bank said total Advances rose to Rs 1,71,043 crore from Rs 1,43,638 crore YoY. Retail Advances grew 18.13 per cent to Rs 53,936 crore. Agri advances reached Rs 22,050 crore, registering a growth of 19.70 per cent. Business banking advances grew 18.03 per cent to Rs 14,238 crore, the bank said.

Meanwhile, commercial banking grew 18.40 per cent to Rs 16,795 crore; corporate advances grew 19.13 per cent to Rs 62,183 crore from Rs 52,198 crore.

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