Bank of Maharashtra has emerged as the best performer among public sector banks in the last fiscal year, boasting the highest growth rates in both total business and deposit mobilisation. According to published financial data, the Pune-based lender recorded a significant 15.94% increase in total business (domestic) in FY24, surpassing even the formidable State Bank of India (SBI), which achieved a growth rate of 13.12%.
Despite SBI’s dominance in terms of absolute figures, with a total business of Rs 79,52,784 crore compared to Bank of Maharashtra’s Rs 4,74,411 crore, it was the latter that led the pack in growth percentages. Similarly, Bank of Maharashtra maintained its lead in deposit mobilisation growth, with a notable 15.66% rise in FY24, followed closely by SBI, Bank of India, and Canara Bank, all achieving double-digit growth rates in deposits.
CASA show
Bank of Maharashtra’s impressive performance extended to its low-cost CASA (Current Account Savings Account) deposits, where it topped the chart with a remarkable 52.73% growth. This strong growth in CASA deposits is particularly advantageous for banks, as it helps keep their cost of funds low.
In terms of loan growth, UCO Bank led the pack with a growth rate of 16.38%, closely followed by Bank of Maharashtra at 16.30% and SBI at 16.26%. Other public sector banks reported lower loan growth rates below 16% during the fiscal year.
Asset quality
On the front of asset quality, Bank of Maharashtra and SBI reported the lowest levels of gross non-performing assets (NPAs) at 1.88% and 2.24%, respectively, as of March 31, 2024. In terms of net NPAs, Bank of Maharashtra and Indian Bank reported the lowest figures, with 0.2% and 0.43%, respectively.
Furthermore, in terms of capital adequacy ratio, Bank of Maharashtra led the pack among public sector banks with a ratio of 17.38%, followed by Indian Overseas Bank and Punjab & Sind Bank at 17.28% and 17.16%, respectively, at the end of FY24.
Bank of Maharashtra’s robust performance across various metrics underscores its resilience and effectiveness in navigating the challenges of the banking sector, positioning it as a notable contender in the industry.
