What is your take on the quarterly numbers of IDBI Bank and Bank of Maharashtra?

Let me talk about the Bank of Maharashtra first. It reported 13.16% growth in revenues for the Sep-21 quarter at Rs.3,700 crore. In terms of specific segments of the bank; revenues from treasury was flat on yoy basis. While revenues from corporate banking where lower it was more than compensated by a rise in retail banking revenues. Treasury gave a profit boost and retail banking saw EBIT turnaround from loss to profit.

Profit after tax for the quarter was up 102.37% at Rs264cr, boosted by higher revenues from interest and investments. However, the interest costs were lower. Gross NPAs fell sharply from 8.86% to 5.56%, and the all-important return on assets or ROA stands at a highly competitive level of 0.55%.

Now we turn to IDBI Bank. The bank reported -9.93% fall in revenues at Rs.5,059 crore for the Sep-21 quarter. While the much smaller treasury income picked up, the revenues from retail banking were 5% lower on lower yields and corporate banking revenues fell 36%. However, operating profits of IDBI Bank increased 14.21% due to lower interest and employee costs. The net interest margins or NIMs expanded from 2.70% to 3.02% yoy.

Profit after tax for Sep-21 quarter was up 77% at Rs.589 crore. In the latest quarter, there was a huge NPA write back of Rs.1,426 crore. Gross NPAs at 20.92% can be considered to be high in absolute terms, but net NPA level of 1.62% hints that most of the bad assets are already provided for. ROA at 0.78% is what stands out about IDBI Bank’s results.