InvestorQ : What is your view on Bank of Maharashtra and is the stock worth buying at current prices?
swati Bakhda made post

What is your view on Bank of Maharashtra and is the stock worth buying at current prices?

Answer
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Dia Deshpande answered.
1 year ago


For the June quarter, Bank of Maharashtra reported net profit of Rs.89 crore against a loss in the previous June. However, this return to profit was largely aided by an Rs.343 crore tax refund that BOM recorded in the current quarter. However, considering that the bank had made losses of more than Rs.1100 crore in June last year, there has been definitely an improvement in performance even if you take out the tax refund impact. There has been an improvement in the net interest income of the bank, which grew by 17%.

However, gross NPAs continued to be a concern for the bank. Gross NPAs actually slipped from 16.4% to 17.9% and that means more pain for the stock in terms of future provisioning. Also BOM does not have the book size to leverage the capital in a big way. In case you are looking at buying PSU banking stocks, then BOB or SBI would be much better options for you.