Bank of Maharashtra (BoM) has emerged as the best bank in terms of bad loan management, with net non-performing assets (NPAs) reducing to 0.25 per cent during the fiscal year ended March 2023. According to published yearly bank figures, this is the lowest ratio among all banks with total business over Rs 3 lakh crore, not just public sector banks (PSBs).
The Pune-based state-owned lender was followed by HDFC Bank, which saw its net NPA drop to 0.27 per cent, and Kotak Mahindra Bank, which came in third with 0.37 per cent of net advances.
On the PSB front, BoM was followed by the country’s largest lender, State Bank of India (SBI), with net NPAs reducing to 0.67 per cent at the end of March 2023, and Bank of Baroda with 0.89 per cent.
BoM has almost totally provisioned for NPAs and has the highest Provision Coverage Ratio at 98.28 per cent, followed by UCO Bank at 94.50 per cent and Indian Bank at 93.82 per cent.
In terms of Capital Adequacy Ratio, BoM has the highest CAR (18.14 per cent) among PSBs, followed by Punjab & Sind Bank (17.10 per cent) and Canara Bank (16.68 per cent) as of March 31, 2023.
According to bank data, BoM held the top rank among scheduled commercial banks in terms of loan growth, with a 29.49 per cent increase on an annual basis.
Indian Overseas Bank came in second with a 21.28 per cent increase, followed by Indusind Bank with a 21 per cent increase. State Bank of India, the country’s largest lender, increased loans by 15.38 per cent in fiscal year 23.
In terms of deposit growth rate, HDFC Bank ranked first with 20.80 per cent, followed by Federal Bank with 17 per cent growth and Kotak Mahindra Bank (KMB) with 16.49 per cent growth.
However, in terms of low-cost Current Account and Savings Account (CASA) deposits, BoM led the pack with 53.38 per cent, followed by IDBI Bank (53.22 per cent), and KMB (52.83 per cent).