Bank of Maharashtra Business Reports Q1FY25 Announced, 19% Growth In Gross Advances

Bank of Maharashtra (BoM) has announced its business update for Q1FY25, showcasing growth across different financial metrics. The bank’s total deposits surged by 9.44%, reaching Rs.2.67 lakh crore as of June 30, 2024, up from Rs.2.44 lakh crore in the same period last year. Despite a slight decline from the Rs.2.70 lakh crore recorded in the previous quarter, this growth shows the bank’s deposit mobilization.

Growth in Gross Advances

The bank reported a major 19% increase in gross advances, amounting to Rs.2.09 lakh crore, compared to Rs.1.75 lakh crore year-on-year (YoY). Sequentially, gross advances rose by 2.65% from Rs.2.03 lakh crore as of  Q4FY24 showcasing BoM’s credit expansion plans and its intent to support various economic sectors.

CASA Deposits and Ratio

Current Account Savings Account (CASA) deposits also grew, rising by 7.06% to Rs.1.33 lakh crore from Rs.1.24 lakh crore in the previous year. However, the CASA ratio saw a slight decline, standing at 49.86%, compared to 50.97% YoY and 52.73% quarter-on-quarter (QoQ) but despite this decline, the bank is maintaining low-cost funding and a CASA base.

Credit-Deposit Ratio and Business

BoM’s credit-deposit ratio increased to 78.18% at the end of Q1FY25, up from 71.89% in Q1FY24, indicating a higher utilization of deposits for lending purposes. The bank’s total business reached Rs.4.76 lakh crore, marking a 13.44% YoY growth and a 0.44% QoQ increase, reflecting overall expansion in the business.

Future Plans

In a separate statement, MD & CEO Nidhu Saxena emphasized the bank’s focus on profitable growth. While there is no immediate need to raise capital, the bank has secured board approval for potential fundraising this year, to be executed based on market conditions and requirements of the bank.

Conclusion: Bank of Maharashtra’s Q1FY25 performance demonstrates growth in deposits and advances, coupled with a planned approach for future expansion. The bank’s emphasis on profitable growth, combined with its good financial metrics, positions it well for sustained growth in the coming quarters.

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