The Bank of Maharashtra becomes the topmost in the PSU bank chart in the MSME in FY21
The state-owned Bank of Maharashtra (BoM) has surpassed all other public sector lenders in terms of retail and MSME loan growth in 2020-21.
According to BoM data, the Pune-based lender increased MSME loans by 35% to Rs 23,133 crore in 2020-21. It was followed by Chennai-based Indian Bank, which reported a 15.22% increase in loan disbursement to MSMEs, with total loans at 70,180 crores at the end of March 2021.
When it came to retail loans, BoM, with nearly 25.61 per cent growth, outpaced even the country’s largest lender, State Bank of India, which saw a 16.47 per cent increase.
However, SBI’s asset base to the retail segment was 30 times larger in absolute terms, at 8.70 lakh crore versus 28,651 crores for BoM.
According to the data, the Bank of Maharashtra increased its retail loan portfolio by 14.35 per cent to 1.20 lakh crore during the previous fiscal year. BoM’s standalone net profit increased nearly 42% to 550.25 crores for the fiscal year 2020-21. Profit in the previous year was 388.58 crore.
The asset quality of the bank improved significantly, with gross bad loans or gross Non-Performing Assets (NPAs) falling to 7.23 per cent of gross advances by the end of March 2021, down from 12.81 per cent in the same period in 2020. Gross bad loans stood at 7,779.68 crores at the end of March 2021, a decrease from the previous year’s figure of 12,152.15 crores. Net NPAs came down to 2.48 per cent ( ₹2,544.32 crore) from 4.77 per cent ( ₹4,145.38 crore).