Shares of Bank of Maharashtra (BoM) experienced a rise of over 1% on Monday, following the bank's report of a 72% surge in net profit for the third quarter ending in September. The stock reached a day's high of INR 48 and closed at INR 47.42 on the BSE and INR 47.45 on the NSE, with trading volumes reaching 48.35 lakh and over 4.94 crore shares respectively.
According to InvestingPro, BoM has seen a strong return over the last three months and a large price uptick over the last six months, demonstrating its strong market performance.
The bank's net profit stood at INR 920 crore, a significant increase compared to the standalone profit of INR 535 crore recorded during the same period last year, as stated in its regulatory filing. This increase was primarily attributed to a decline in bad loans and an increase in interest income, which rose to INR 5,068 crore from INR 3,815 crore last year.
InvestingPro data shows that BoM has been consistently increasing its earnings per share, a testament to its robust financial health. Moreover, BoM has been profitable over the last 12 months, further highlighting its strong financial performance.
By the end of September 2023, BoM successfully reduced gross non-performing assets (NPAs) to 2.19% and net NPAs to just 0.23%. These figures represent a decrease from the previous fiscal year's second quarter close, which saw gross NPAs at 3.40% and net NPAs at 0.68%. These improvements highlight BoM's proactive measures towards maintaining a healthy balance sheet amid challenging market conditions.
InvestingPro Tips indicate that despite BoM's strong financial performance, it suffers from weak gross profit margins and is quickly burning through cash. This suggests that while the bank is currently profitable, it may face challenges in sustaining its profitability in the long term.
Investors interested in more insights can access a total of 13 additional tips about BoM's financial performance and market trends on InvestingPro.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.