Bank of Maharashtra tops list of PSU lenders in credit growth in Q2
NEW DELHI: 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 28.62% increase in gross advances at ₹1,48,216 crore at the end of September 2022, according to published quarterly numbers of public sector banks (PSBs).
It was followed by Union Bank of India with a 21.54% growth to ₹7,52,469 crore. The country’s largest lender State Bank of India (SBI) stood at the third spot with an 18.15% jump in gross advances.
However, SBI’s total loans were about 17 times higher at ₹25,47,390 crore as compared to ₹ 1,48,216 crore of BoM in absolute terms.
With regard to Retail-Agriculture-MSME (RAM) loans, BoM recorded the highest growth of 22.31% followed by
Bank of Baroda with 19.53% and SBI at 16.51% during the period under review.
As far as low-cost Current Account Savings Account (CASA) deposits are concerned, BoM topped the chart with 56.27% followed by Central Bank of India at 50.99%.
BoM and SBI with 3.55% Net Interest Margin (NIM), a key profitability parameter, stood at the top among PSBs.
It was followed by Bank of India at 3.49% and Central Bank of India at 3.44%.
BoM and SBI were in the lowest quartile as far as gross nonperforming assets (NPAs) and net NPAs were concerned, according to an analysis of the quarterly financial numbers published by public sector lenders.
As per the analysis, gross NPAs reported by BoM and SBI were 3.40% and 3.52% of their total advances, respectively, in the second quarter.
Net NPAs of these banks came down to 0.68% and 0.80%, respectively, at the end of September 2022.
Moreover, BoM has a 16.71% Capital Adequacy Ratio, the highest among PSBs, followed by Canara Bank at 16.51% and Indian Bank at 16.15% at the end of the second quarter of 2022-23.
Finance Minister Nirmala Sitharaman last week said the government’s efforts to reduce bad loans have yielded results with all the 12 PSBs reporting a 50% jump in combined net profit at ₹25,685 crore in the second quarter.