On Thursday, the state-run bank Bank of Maharashtra announced the result for the June quarter. The net profit of the bank has jumped more than 2 times in this quarter. The net profit of the bank has been 208 crores, in which interest income is high. The good news is that bad loans have come down. In the quarter of June 2020, the bank had a profit of 101 crores.
The total income of the bank increased to 3794 crores in this quarter from 3264 crores in the same quarter a year ago. Interest income increased to 3103 crores from 2896 crores earlier. Let us tell you that the name of Bank of Maharashtra was going ahead for bank privatization. However, according to sources, the names of Indian Overseas Bank and Central Bank of India are believed to be fixed in the information received. Until the name was discussed, the name of Bank of Maharashtra was at the forefront. At present there are 12 government banks in the country and it is certain that privatization will be done first of those six banks which have been out of the process of merger.
Today again this stock closed with a fall
Shares of Bank of Maharashtra closed at Rs 23.10 with a fall of 2.33 per cent today. When its name came to the fore regarding privatization, there was a huge boom in its shares and on 7 June it reached the level of Rs 32. This is its 52-week high and the lowest level is Rs 10.55. The market cap of the bank is Rs 15,547 crore.
93 percent stake with the government
This stock has fallen 4.35 percent in the last one week, 11 percent in one month. There has been a rise of only 1 per cent in three months while it has risen by 77 per cent so far this year. The government holds 93.33 percent stake in this bank.
This stock has corrected up to 30 percent
After reaching the level of Rs 32 on June 7, its stock has been closing with a steady decline for the last seven weeks. In between, its stock had seen a rise of 0.60 percent in just one week. From this level, the share of Bank of Maharashtra has corrected about 30 percent. For a long time, its stock was trading in the range of Rs 11-13. Its stock had reached the level of Rs 27 in February. Since then this stock is in the range of Rs 24-25. In such a situation, at the current level of Rs 23, it can be bought for a long time.
This stock can be multi-bagger in the long term
When the Modi government came to power, this stock was close to Rs 50 and before that in 2008-10, this stock used to be in the range of Rs 75-80. Many ministers and advisors of the government have repeatedly said that except 1-2 banks, all public sector banks will be privatized. In such a situation, if you buy at the right level at the right time, this stock can prove to be a multi-bagger in the long term.
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(Investing in the stock market is full of risks. Be it long term or short term, before investing anywhere, please consult your financial experts.)