Bank of Maharashtra (BoM), a Pune-based state-owned lender, has been recognized as the best bank in managing bad loans, achieving a remarkably low net non-performing assets (NPAs) ratio of 0.25% during the financial year that ended in March 2023. This achievement positions BoM as the leader among all banks with total business exceeding Rs 3 lakh crore, not limited to public sector banks (PSBs), according to the published yearly data of banks.
Impressive Rankings in NPA Management:
- Bank of Maharashtra: BoM secured the top spot with a net NPA ratio of 0.25%.
- HDFC Bank: HDFC Bank followed closely with a net NPA ratio of 0.27%.
- Kotak Mahindra Bank: Kotak Mahindra Bank secured the third position with a net NPA ratio of 0.37% of net advances.
Leading Public Sector Banks (PSBs):
Among the public sector banks (PSBs), Bank of Maharashtra was at the forefront of NPA management, closely followed by State Bank of India (SBI) with a net NPA ratio of 0.67% and Bank of Baroda at 0.89% at the end of March 2023.
High Provision Coverage Ratio (PCR):
BoM stands out with its exceptional provision coverage, having almost fully provided for the NPAs. The bank boasts the highest Provision Coverage Ratio of 98.28%, followed by UCO Bank at 94.50% and Indian Bank at 93.82%.
Strong Capital Adequacy Ratio (CAR):
In terms of Capital Adequacy Ratio (CAR), Bank of Maharashtra demonstrates its robust financial position with the highest CAR of 18.14% among PSBs, followed by Punjab & Sind Bank at 17.10% and Canara Bank at 16.68%, as of March 31, 2023.
Impressive Loan Growth:
Bank of Maharashtra maintains its leading position in terms of loan growth among scheduled commercial banks, recording a remarkable 29.49% increase on an annual basis, according to published banking data.
Deposit Growth and CASA Deposits:
While HDFC Bank takes the lead in deposit growth rate with a 20.80% increase, followed by Federal Bank at 17% and Kotak Mahindra Bank at 16.49%, Bank of Maharashtra excels in low-cost Current Account and Savings Account (CASA) deposits. BoM secures the top spot with a CASA deposit growth rate of 53.38%, closely followed by IDBI Bank at 53.02% and Kotak Mahindra Bank at 52.83%.