Bank of Maharashtra Takes the Lead in NPA Management for FY23

Bank of Maharashtra (BoM), a state-owned bank based in Pune, has been recognized as the top bank in effectively managing bad loans. Its net non-performing assets (NPAs) ratio of 0.25% during the financial year ending in March 2023 positions BoM as the leader among banks with total business exceeding Rs 3 lakh crore, including both public and private sector banks. Let’s delve into the rankings and key factors contributing to BoM’s success.

Impressive NPA Management Rankings

1. Bank of Maharashtra (BoM): BoM secured the top spot with an outstanding net NPA ratio of 0.25%.
2. HDFC Bank: HDFC Bank closely followed with a net NPA ratio of 0.27%.
3. 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, Bank of Maharashtra emerged as the frontrunner in NPA management. Here are the rankings:

1. Bank of Maharashtra: BoM leads with a net NPA ratio of 0.25%.
2. State Bank of India (SBI): SBI closely follows with a net NPA ratio of 0.67%.
3. Bank of Baroda: Bank of Baroda ranks third with a net NPA ratio of 0.89% as of March 2023.

High Provision Coverage Ratio (PCR)

Bank of Maharashtra stands out with an exceptional provision coverage ratio, having nearly fully provided for the NPAs. Here are the top three banks with high PCR:

1. Bank of Maharashtra: BoM boasts the highest Provision Coverage Ratio of 98.28%.
2. UCO Bank: UCO Bank follows with a provision coverage ratio of 94.50%.
3. Indian Bank: Indian Bank demonstrates strong provision coverage with a PCR of 93.82%.

Strong Capital Adequacy Ratio (CAR)

In terms of Capital Adequacy Ratio (CAR), Bank of Maharashtra showcases its robust financial position. Here are the top three PSBs with high CAR:

1. Bank of Maharashtra: BoM leads with a CAR of 18.14%.
2. Punjab & Sind Bank: Punjab & Sind Bank follows with a CAR of 17.10%.
3. Canara Bank: Canara Bank maintains a healthy CAR of 16.68% as of March 31, 2023.

Impressive Loan Growth

Bank of Maharashtra maintains its leading position in loan growth among scheduled commercial banks. It recorded 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, 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%.

Bank of Maharashtra’s remarkable performance in managing bad loans, high provision coverage, strong capital adequacy, impressive loan growth, and focus on low-cost deposits solidify its position as a leading bank in the Indian banking industry.

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