Bank of Maharashtra top performer in MSME and Retail loan growth in FY21

Among all public sector lenders in terms of retail and MSME loan growth, state-owned Bank of Maharashtra (BoM) has become top performer in the financial year 2020-21.

Based on the data provided by BoM, this Pune-based lender recorded a 35 per cent growth in MSME loans at Rs 23,133 crore during 2020-21.

The Chennai-based India Bank got the second top place, recording a 15.22 per cent growth in loan disbursal to MSMEs with aggregate loans at Rs 70,180 crore at the end of March 2021.

In term of lending to retail, BoM recorded nearly 25.61 per cent growth that was ahead of even the country’s largest lender State Bank of India with 16.47 per cent rise.

However, in absolute terms SBI's asset base to retail segment was a whopping 30 times higher at Rs 8.70 lakh crore as against Rs 28,651 crore of BoM.

As per the data, during the last fiscal year, Bank of Baroda increased its retail loan portfolio by 14.35 per cent to Rs 1.20 lakh crore.

For the entire year 2020-21, BoM’s standalone net profit increased nearly 42 per cent to Rs 550.25 crore. During the last fiscal, the profit was Rs 388.58 crore. The bank’s asset quality improved significantly as the gross bad loans or gross Non-Performing Assets (NPAs) dipped to 7.23 per cent of gross advances by the end of March 2021 as against 12.81 per cent by the same period of 2020.

In absolute terms, gross bad loans stood at Rs 7,779.68 crore at the end of March 2021, lower than Rs 12,152.15 crore recorded in the previous year period. Net NPAs came down to 2.48 per cent (Rs 2,544.32 crore) from 4.77 per cent (Rs 4,145.38 crore).