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Business Standard
15-07-2025
- Business
- Business Standard
Bank of Maharashtra Q1 profit up 23.2% at ₹1,593 cr on healthy NII growth
Public sector lender Bank of Maharashtra reported a 23.2 per cent year-on-year rise in net profit to ₹1,593 crore for the April–June quarter, mainly aided by healthy growth in net interest income (NII). NII expanded 17.6 per cent to ₹3,292 crore in Q1FY26 compared to ₹2,799 crore in the same quarter a year ago (Q1FY25). Net interest margin (NIM) moderated to 3.95 per cent in Q1FY26 from 3.97 per cent in Q1FY25. Nidhu Saxena, Managing Director and Chief Executive Officer of BoM, said the bank expects NIM to be around 3.75 per cent for FY26. The NIM for Q1FY26 is above the bank's guidance for FY26. Separately, the bank, in its analyst presentation, flagged risks, stating that falling interest rates could impact net interest margins. The bank's non-interest income declined by 8 per cent YoY to ₹825 crore in Q1FY26. Provisions for non-performing assets (NPAs) rose marginally to ₹719 crore in Q1FY26 from ₹586 crore in Q1FY25. There was an increase in slippages from the agricultural loan portfolio in the June quarter. The bank has been able to upgrade agri NPAs worth ₹270 crore as of July, Saxena said in a post-result virtual press meet. Provisions for agri NPAs pushed up the credit cost to 1.19 per cent in Q1FY26 from 1.12 per cent in the March quarter of FY24. Agricultural NPAs rose to 9.65 per cent in June 2025 from 7.88 per cent in June 2024. Advances grew 15.34 per cent YoY to ₹2.41 trillion in Q1FY26. Retail advances grew by 35.37 per cent YoY to ₹71,966 crore in the June quarter of FY26. Through its GIFT City branch, the bank expects to build a book of $1 billion. Total deposits increased 14.08 per cent YoY to ₹3.05 trillion. The share of low-cost deposits—current account and savings account (CASA)—improved to 50.07 per cent at the end of June 2025 from 49.86 per cent a year ago. The bank has board approval to raise up to ₹10,000 crore through infrastructure bonds, which are exempt from meeting Cash Reserve Ratio and Statutory Ratios. The credit-deposit ratio (C/D ratio) stood at 79.04 per cent in the June quarter of 2025, up from 78.17 per cent a year ago. The bank's asset quality improved, with gross NPAs declining to 1.74 per cent in June 2025 from 1.85 per cent in June 2024. Net NPAs also declined from 0.18 per cent in June 2024 to 0.20 per cent in June 2025. The provision coverage ratio (PCR), including written-off accounts, stood at 98.36 per cent in June 2025, the same level as in June 2024. The bank's capital adequacy stood at 20.06 per cent, with Tier-1 capital at 16.63 per cent at the end of June 2025. Although the bank has board approval for an equity offering of ₹5,000 crore, there are no firm plans for capital raising at present. The Pune-based lender's shares ended 2 per cent higher, closing at ₹57.20.
Time of India
26-06-2025
- Business
- Time of India
BoI to raise Rs 20,000 cr via infra bonds this fiscal
State-owned Bank of India (BoI) on Thursday said it plans to raise Rs 20,000 crore during the current fiscal via bonds to fund infrastructure projects. The board approved the issuance of long-term infra bonds worth Rs 20,000 crore in 2025-26, BoI said in a regulatory filing. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Build Your Dream Villa Near Bengaluru Airport Sumadhura Group Learn More Undo Banks, including SBI , have been raising funds through bonds to secure funds that are solely dedicated to advancing various infrastructure development projects. Bonds Corner Powered By BoI to raise Rs 20,000 cr via infra bonds this fiscal State-owned Bank of India (BoI) on Thursday said it plans to raise Rs 20,000 crore during the current fiscal via bonds to fund infrastructure projects. Indian bonds flat as sell-off stalls after pricing in RBI liquidity plan T-bill, money market rates rise on VRRR plan Gandhinagar Municipal Corporation's Rs 25 crore bonds list on NSE IFSCA unveils framework for ESG-linked transition bonds at GIFT City Browse all Bonds News with The advantage of infrastructure bonds is that they are exempt from regulatory reserve requirements, such as the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR). So, infrastructure bond proceeds can be fully deployed for lending activities. Banks have been preferring infrastructure bonds over AT-1 and Tier-2 bonds, as they are better priced.
Economic Times
26-06-2025
- Business
- Economic Times
BoI to raise Rs 20,000 cr via infra bonds this fiscal
State-owned Bank of India (BoI) on Thursday said it plans to raise Rs 20,000 crore during the current fiscal via bonds to fund infrastructure projects. ADVERTISEMENT The board approved the issuance of long-term infra bonds worth Rs 20,000 crore in 2025-26, BoI said in a regulatory filing. Banks, including SBI, have been raising funds through bonds to secure funds that are solely dedicated to advancing various infrastructure development projects. The advantage of infrastructure bonds is that they are exempt from regulatory reserve requirements, such as the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR). So, infrastructure bond proceeds can be fully deployed for lending have been preferring infrastructure bonds over AT-1 and Tier-2 bonds, as they are better priced. (You can now subscribe to our ETMarkets WhatsApp channel)
Economic Times
06-06-2025
- Automotive
- Economic Times
RBI rate cut to positively impact automobiles sector
New Delhi, The decision of the Reserve Bank to cut policy rate by 50 basis points will have a positive impact on the automobile sector as it will make loans cheaper, industry body SIAM said on Friday. The RBI on Friday cut repo rate by a higher-than-expected 50 basis points to prop up growth, which has slowed to a four-year low of 6.5 per cent in FY25. Following the rate cut, the key policy rate eased to a three-year low of 5.5 per cent, providing relief to home, auto and corporate loan borrowers. "Such reduction in repo rates would have a positive impact on the auto sector since it would lead to increased accessibility to finance at reduced costs, thereby creating a positive sentiment amongst the consumers in the market," the Society of Indian Automobile Manufacturers (SIAM) President Shailesh Chandra said in a statement. The Automotive Component Manufacturers Association of India (ACMA) said the RBI's decision to reduce the repo rate by 50 basis points and to ease the Cash Reserve Ratio is a timely and proactive step toward stimulating domestic demand and supporting industrial growth, especially in the backdrop of persistent global headwinds. "The reduction in interest rates is expected to translate into lower borrowing costs for both consumers and businesses, thereby providing a much-needed boost to the automotive sector, which has been navigating a complex macroeconomic environment," ACMA President Shradha Suri Marwah stated. The infusion of liquidity through the CRR cut will further ease working capital pressures, particularly for MSMEs that form the backbone of the auto component industry, she added. Mahindra Group CEO & MD Anish Shah said the move demonstrates the RBI's confidence in the macroeconomic fundamentals and its proactive approach to supporting sustainable expansion. The rate cut will serve as a positive catalyst for consumption and investment, particularly in interest-sensitive sectors such as automobiles, housing, and MSMEs, he added. It will also ease borrowing costs, improve liquidity, and further strengthen the momentum behind India's infrastructure and manufacturing push, Shah said. Renault India Country CEO & MD Venkatram Mamillapalle said the policy is expected to strengthen liquidity and accelerate the transmission of lower interest rates to consumers, which will spur demand in the economy. "For the automotive sector, this translates directly into improved access to affordable vehicle financing, especially in the entry and mid-level segments," he stated. PTI
Time of India
06-06-2025
- Automotive
- Time of India
RBI rate cut to positively impact automobiles sector
New Delhi, The decision of the Reserve Bank to cut policy rate by 50 basis points will have a positive impact on the automobile sector as it will make loans cheaper, industry body SIAM said on Friday. The RBI on Friday cut repo rate by a higher-than-expected 50 basis points to prop up growth, which has slowed to a four-year low of 6.5 per cent in FY25. Following the rate cut, the key policy rate eased to a three-year low of 5.5 per cent, providing relief to home, auto and corporate loan borrowers. "Such reduction in repo rates would have a positive impact on the auto sector since it would lead to increased accessibility to finance at reduced costs, thereby creating a positive sentiment amongst the consumers in the market," the Society of Indian Automobile Manufacturers (SIAM) President Shailesh Chandra said in a statement. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Free P2,000 GCash eGift UnionBank Credit Card Apply Now Undo The Automotive Component Manufacturers Association of India ( ACMA ) said the RBI's decision to reduce the repo rate by 50 basis points and to ease the Cash Reserve Ratio is a timely and proactive step toward stimulating domestic demand and supporting industrial growth, especially in the backdrop of persistent global headwinds. "The reduction in interest rates is expected to translate into lower borrowing costs for both consumers and businesses, thereby providing a much-needed boost to the automotive sector, which has been navigating a complex macroeconomic environment ," ACMA President Shradha Suri Marwah stated. Live Events The infusion of liquidity through the CRR cut will further ease working capital pressures, particularly for MSMEs that form the backbone of the auto component industry, she added. Mahindra Group CEO & MD Anish Shah said the move demonstrates the RBI's confidence in the macroeconomic fundamentals and its proactive approach to supporting sustainable expansion. The rate cut will serve as a positive catalyst for consumption and investment, particularly in interest-sensitive sectors such as automobiles, housing, and MSMEs, he added. It will also ease borrowing costs, improve liquidity, and further strengthen the momentum behind India's infrastructure and manufacturing push, Shah said. Renault India Country CEO & MD Venkatram Mamillapalle said the policy is expected to strengthen liquidity and accelerate the transmission of lower interest rates to consumers, which will spur demand in the economy. "For the automotive sector, this translates directly into improved access to affordable vehicle financing, especially in the entry and mid-level segments," he stated. PTI
