Bank of Maharashtra Tops Among PSU Banks in Business Growth in FY24

Bank of Maharashtra has emerged as a top performer among public sector banks, showcasing impressive growth in total business and deposit mobilization. With a 15.94% rise in total business and a 15.66% increase in deposits, it outshines competitors like State Bank of India. The bank’s focus on low-cost CASA deposits, coupled with robust loan growth and exemplary asset quality, positions it as a resilient and efficient player in the banking sector.

Business Growth of Bank of Maharashtra

Amidst a landscape where growth seems elusive, Bank of Maharashtra’s achievement in total business growth stands out prominently. With a growth rate of 15.94 per cent, BoM has outpaced even the behemoth State Bank of India (SBI), which recorded a respectable 13.12 per cent growth. The disparity in absolute terms is significant, with SBI’s total business towering at approximately 16.7 times that of BoM, standing at Rs 79,52,784 crore compared to BoM’s Rs 4,74,411 crore.

Deposit Mobilization Excellence of Bank of Maharashtra

Bank of Maharashtra also maintained its leading position in terms of deposit mobilization growth, achieving a notable 15.66% rise in the last fiscal year. This places it ahead of other major players like SBI, Bank of India, and Canara Bank, all of whom registered growth rates below 12%. Out of the 12 public sector banks, only four managed to achieve double-digit growth in deposits during this period.

CASA Deposits and Cost Efficiency

The bank’s success in garnering low-cost Current Account and Savings Account (CASA) deposits is particularly noteworthy, with a staggering 52.73% growth rate. This, coupled with its focus on maintaining a higher proportion of CASA deposits, enables Bank of Maharashtra to keep its cost of funds at a competitive level, providing a significant advantage in the market.

Loan Growth and Asset Quality

In terms of loan growth, Bank of Maharashtra demonstrated a robust performance, with a 16.30% increase in advances, closely trailing UCO Bank. Moreover, the bank has showcased commendable asset quality management, reporting the lowest gross non-performing assets (NPAs) among its peers, standing at 1.88%. Its net NPAs are equally impressive, at just 0.2%.

Capital Adequacy and Financial Stability

Another area where Bank of Maharashtra shines is in its capital adequacy ratio, leading the pack among public sector banks at 17.38%. This reflects the bank’s strong financial position and its ability to weather uncertainties while maintaining stability and resilience.