Bank of Maharashtra by mnmgroup

VIEWS: 32 PAGES: 11

									                                                                                                4QFY2012 Result Update | Banking

                                                                                                                            May 10, 2012



    Bank of Maharashtra                                                                       ACCUMULATE
                                                                                              CMP                                     `48
    Performance Highlights                                                                    Target Price                            `55
 
Particulars (` cr)             4QFY12     3QFY12       % chg (qoq)   4QFY11    % chg (yoy)    Investment Period              12 Months
NII                                647          645            0.3       575         12.6
                                   250          425         (41.2)        66        279.6
                                                                                              Stock Info
Pre-prov. profit
                                    73          136         (46.3)        69          4.9     Sector                                Banking
PAT
Source: Company, Angel Research                                                               Market Cap (` cr)                      2,851
Bank of Maharashtra reported a muted performance for 4QFY2012, registering                    Beta                                      1.0
net profit growth of just 4.9% yoy to `73cr, despite moderate growth in operating             52 Week High / Low                     60/38
income and a sizeable decline in operating expenses, mainly due to                            Avg. Daily Volume                     66,874
higher provisioning expenses during the quarter. We recommend an Accumulate
                                                                                              Face Value (`)                            10
rating on the stock.
                                                                                              BSE Sensex                            16,420
Strong performance on the operating front: During 4QFY2012, the bank’s
                                                                                              Nifty                                  4,966
advances grew at a healthy rate of 19.6% yoy, while deposits growth was
moderate at 14.5% yoy. CASA deposits growth stood at 17.0% yoy, which was                     Reuters Code                      BMBK.BO
higher as compared to overall deposit growth, mainly due to 28.1% yoy growth in               Bloomberg Code                  BOMH@IN
current account deposits, leading to an 89bp yoy improvement in CASA ratio to
41.3% (33bp sequentially). The bank shed around ~`3,000cr of high cost bulk
deposits during 4QFY2012, taking its total bulk deposits to ~`4,000cr (5.0% of                Shareholding Pattern (%)
overall deposits as against 8.6% in 3QFY2012). Cost of funds for the quarter
decreased by relatively low 11bp qoq compared to a 22bp qoq decrease in yield on              Promoters                               79.0
funds. Consequently, reported NIM witnessed a decline of 11bp qoq to 3.2%. The                MF / Banks / Indian Fls                 11.1
bank’s fee income witnessed healthy traction during 4QFY2012, growing by healthy              FII / NRIs / OCBs                         0.9
22.5% yoy to `117cr. The bank’s asset quality deteriorated sequentially during
                                                                                              Indian Public / Others                    9.0
4QFY2012, with both absolute gross and net NPAs increasing on a qoq basis. While
gross NPAs increased from 2.1% to 2.3%, net NPA ratio increased from 0.5% to
0.8%. Slippage ratio increased on a sequential basis to 3.9%, much above the
comfortable 1-1.5% levels. PCR for the bank dipped by 664bp, but remained at                  Abs. (%)              3m       1yr        3yr
comfortable levels. The bank restructured ~`485cr of loans during the quarter, taking         Sensex               (7.5)   (11.3)     38.3
its outstanding restructured advances to `3,227cr (~5.6% of the overall loan book).
                                                                                              BOM                 (13.7)   (16.3)    101.9
Outlook and valuation: At the CMP, the stock is trading at attractive valuations, in
our view, of 0.6x FY2014E ABV, which is even below its lower trading range for
the past five years (its five-year range of 0.7–1.2x and median of 0.9x). On the
back of high NIM, moderate fee income and better provisioning coverage than
peers, we expect the bank to deliver a healthy 38.5% earnings CAGR over
FY2012–14E. We value the stock at 0.7x and, hence, recommend an Accumulate
rating with a target price of `55.

Key financials
Y/E March (` cr)                     FY2011           FY2012         FY2013E     FY2014E
NII                                   1,968            2,517           2,882        3,308
                                                                                             Vaibhav Agrawal
% chg                                    51.9           27.9            14.5         14.8
                                                                                             022 – 3935 7800 Ext: 6808
Net profit                               330            431             742           827    vaibhav.agrawal@angelbroking.com
% chg                                 (24.8)            30.4            72.1         11.4
NIM (%)                                   2.8            3.2             3.2          3.2    Varun Varma
EPS (`)                                   6.2            6.2            11.5         13.1    022 – 3935 7800 Ext: 6847
P/E (x)                                   7.8            7.8             4.2          3.7    varun.varma@angelbroking.com
P/ABV (x)                                 0.9            0.8             0.7          0.6
                                                                                             Sourabh Taparia
RoA (%)                                   0.4            0.5             0.7          0.7
                                                                                             022 – 3935 7800 Ext: 6872
RoE (%)                                  11.3           11.3            17.4         17.2
                                                                                             sourabh.taparia@angelbroking.com
Source: Company, Angel Research

Please refer to important disclosures at the end of this report                                                                          1
                                             Bank of Maharashtra | 4QFY2012 Result Update



               Exhibit 1: 4QFY2012 performance
               Particulars (` cr)                  4QFY12 3QFY12 % chg (qoq) 4QFY11 % chg (yoy)
               Interest earned                      1,898       1,871          1.5     1,546         22.8
               - on Advances / Bills                1,448       1,435          0.9     1,138         27.2
               - on investments                       445         436          2.2         393       13.2
               - on balance with RBI & others           0             0     620.0            8     (95.7)
               - on others                              5             0    1,097.7           6     (15.8)
               Interest Expended                    1,251       1,226          2.1         971       28.9
               Net Interest Income                    647         645          0.3         575       12.6
               Other income                           173         150        15.5          157       10.1
               Other income excl. treasury            177         140        26.5          150       18.3
               - Fee Income                           117         101        16.3           96       22.5
               - Treasury Income                       (4)            10   (144.8)           7    (159.7)
               - Recoveries from written off a/c       34             22     56.1           41     (15.5)
               - Others                                26             17     49.2           13       90.9
               Operating income                       820         795          3.2         732       12.0
               Operating expenses                     570         370        54.2          666     (14.4)
               - Employee expenses                    423         233        81.0          530     (20.2)
               - Other Opex                           148         136          8.3         137        8.1
               Pre-provision Profit                   250         425       (41.2)          66     279.6
               Provisions & Contingencies             144         210       (31.3)          23     521.9
               PBT                                    106         215       (50.9)          43     147.9
               Provision for Tax                       33             80    (58.8)         (27)   (223.1)
               PAT                                     73         136       (46.3)          69        4.9
               Effective Tax Rate (%)                 31.1       37.1      (593)bp     (62.7)     9380bp
               Source: Company, Angel Research




               Exhibit 2: 4QFY2012 – Actual vs. Angel estimates
               Particulars (` cr)                            Actual           Estimates           Var. (%)
               Net interest income                             647                   666             (2.9)
               Other income                                    173                   154             12.0
               Operating income                                820                   821             (0.1)
               Operating expenses                              570                   386             47.7
               Pre-prov. profit                                250                   435           (42.5)
               Provisions & cont.                              144                   294           (51.0)
               PBT                                             106                   140           (24.6)
               Prov. for taxes                                  33                    30             10.5
               PAT                                              73                   110           (34.1)
               Source: Company, Angel Research




May 10, 2012                                                                                             2
                                              Bank of Maharashtra | 4QFY2012 Result Update



               Exhibit 3: 4QFY2012 performance analysis
               Particulars                       4QFY12   3QFY12   % chg (qoq)   4QFY11 % chg (yoy)
               Advances (` cr)                   56,060   49,872         12.4    46,881        19.6
               Deposits (` cr)                   76,529   69,926          9.4    66,845        14.5
               Credit-to-Deposit Ratio (%)         73.3     71.3       193bp        70.1     312bp
               Current deposits (` cr)            8,452    6,528         29.5     6,599        28.1
               Saving deposits (` cr)            23,180   22,145          4.7    20,433        13.4
               CASA deposits (` cr)              31,632   28,673         10.3    27,032        17.0
               CASA ratio (%)                      41.3     41.0         33bp       40.4      89bp
               CAR (%)                             12.4     11.8         68bp       13.4     (92)bp
               Tier 1 CAR (%)                       8.3      7.1       125bp         8.0      29bp
               Profitability Ratios (%)
               Cost of deposits                     6.6      6.5         11bp        5.7      91bp
               Yield on advances                   11.5     11.8       (26)bp       10.5      98bp
               Yield on investments                 7.3      7.2         18bp        7.1      21bp
               Yield on funds                       9.3      9.5       (22)bp        8.4      89bp
               Cost of funds                        6.1      6.2       (11)bp        5.3      85bp
               Reported NIM                         3.2      3.3       (11)bp        3.1        4bp
               Cost-to-income ratio                69.5     46.5      2302bp        91.0   (2148)bp
               Asset quality
               Gross NPAs (` cr)                  1,297    1,045         24.1     1,174        10.5
               Gross NPAs (%)                       2.3      2.1         22bp        2.5     (19)bp
               Net NPAs (` cr)                      470      272         72.8       619       (24.1)
               Net NPAs (%)                         0.8      0.5         30bp        1.3     (48)bp
               Provision Coverage Ratio (%)        80.4     87.0      (664)bp       65.6    1480bp
               Slippage ratio (%)                   3.9      1.1       280bp         2.2     172bp
               Source: Company, Angel Research


               Business growth healthy in 4QFY2012
               During 4QFY2012, the bank’s advances grew at a healthy rate of 19.6% yoy,
               while deposits growth was moderate at 14.5% yoy. CASA deposits growth at
               17.0% yoy was relatively high compared to overall deposit growth, mainly due to
               28.1% yoy growth in current account deposits (as growth in savings account
               deposits remained moderate at 13.4% yoy), leading to an 89bp yoy improvement
               in CASA ratio to 41.3% (33bp sequentially).

               The bank shed around ~`3,000cr of high cost bulk deposits during 4QFY2012,
               taking its total bulk deposits to ~`4,000cr (5.0% of overall deposits as against
               8.6% in 3QFY2012). Cost of funds for the quarter decreased by a relatively low
               11bp qoq compared to the 22bp qoq decrease in yield on funds. Consequently,
               reported NIM witnessed a decline of 11bp qoq to 3.2%.




May 10, 2012                                                                                       3
                                                                                     Bank of Maharashtra | 4QFY2012 Result Update



Exhibit 4: Business growth healthy                                          Exhibit 5: CASA ratio maintained at healthy 40%+ levels
         Adv. yoy chg (%)         Dep. yoy chg (%)           CDR (%, RHS)               CASA ratio (%)           CASA yoy growth (%, RHS)
  30.0                                                      73.3     74.0     42.0                                                              20.0
                                                                                                                                      17.0
                                  72.1                                                  15.7      15.9
  25.0                                                                                                                  13.6
                                             71.3                    72.0                                                                       15.0
                                                                                                              12.4
  20.0      70.1                                                              39.0
  15.0                 69.1                                          70.0                                                                       10.0
  10.0                                                                        36.0
                                                                     68.0                                                                        5.0
            16.3



                      11.6
                      14.2


                                  24.0
                                  12.5


                                             14.0
                                             11.4


                                                            19.6
                                                            14.5




                                                                                        40.4



                                                                                                   40.6



                                                                                                              40.7



                                                                                                                        41.0



                                                                                                                                      41.3
   5.0
            5.6




    -                                                                66.0     33.0                                                               -
          4QFY11 1QFY12 2QFY12 3QFY12 4QFY12                                          4QFY11 1QFY12 2QFY12 3QFY12 4QFY12

Source: Company, Angel Research                                             Source: Company, Angel Research




Exhibit 6: Yield on funds decline sequentially by 22bp                      Exhibit 7: NIM declines by 11bp qoq
  (%)                                                                         (%)
10.50                                                                        3.50                               3.24           3.28
                                                     9.52                              3.13        3.18                                       3.17
                                      9.21                         9.30
 9.50                   8.84                                                 3.00
            8.41
 8.50
                                                                             2.50
 7.50
                                                                             2.00
 6.50

 5.50                                                                        1.50
          4QFY11      1QFY12        2QFY12      3QFY12         4QFY12                 4QFY11     1QFY12       2QFY12      3QFY12             4QFY12

Source: Company, Angel Research                                             Source: Company, Angel Research




                                                        Healthy growth in fee income drives 18.3% yoy growth in non
                                                        interest income

                                                        The bank’s fee income witnessed healthy traction during 4QFY2012, growing by
                                                        healthy 22.5% yoy to `117cr. Treasury operations reported a loss of `4cr during
                                                        the quarter as against profit of `7cr in 4QFY2011, while recoveries from
                                                        written-off accounts decreased by 15.5% yoy to `34cr.

                                                        Asset quality deteriorates sequentially; slippages surge

                                                        The bank’s asset quality deteriorated sequentially during 4QFY2012, with both
                                                        absolute gross and net NPAs increasing on a qoq basis. While gross NPAs
                                                        increased from 2.1% to 2.3%, net NPA ratio increased from 0.5% to 0.8%.
                                                        Slippage ratio increased on a sequential basis to 3.9%, much above the
                                                        comfortable 1-1.5% levels. PCR for the bank dipped by 664bp, but remained at
                                                        comfortable levels. The bank restructured ~`485cr of loans during the quarter,
                                                        taking its outstanding restructured advances to `3,227cr (~5.6% of the overall
                                                        loan book).




May 10, 2012                                                                                                                                           4
                                                                                  Bank of Maharashtra | 4QFY2012 Result Update



Exhibit 8: Slippages surge in 4QFY2012                                Exhibit 9: Asset quality deteriorates sequentially
 (%)                                                                              Gross NPAs (%)         Net NPAs (%)          PCR (%, RHS)
                                                           3.9
  4.0                                                                    3.0                                                                  100.0
                                                                                                           86.0         87.0
                                                                                                                                  80.4
  3.2                                                                                          73.2                                           80.0
  2.5       2.2                                                          2.0         65.6
                       1.6
  1.7                                                                                                                                         60.0
                                              1.1
                                    0.8                                  1.0
  1.0
                                                                                                                                              40.0
  0.2




                                                                                    2.5
                                                                                    1.3


                                                                                               2.4
                                                                                               1.2


                                                                                                          2.2
                                                                                                          0.6


                                                                                                                    2.1
                                                                                                                    0.5


                                                                                                                                 2.3
                                                                                                                                 0.8
 (0.5)     4QFY11    1QFY12        2QFY12   3QFY12      4QFY12            -                                                                   20.0
                                                                                   4QFY11 1QFY12 2QFY12 3QFY12 4QFY12

Source: Company, Angel Research                                        Source: Company, Angel Research; Note: PCR including tech. write-offs


                                                    Staff expenses down on a yoy basis but increase sequentially

                                                    Staff expenses decreased by 20.2% yoy to `423cr on account of high base in
                                                    4QFY2011. However, on a sequential basis, staff expenses increased by 81.0% on
                                                    the back of actuarial provisions in 4QFY2012. Other expenses during the quarter
                                                    increased by 8.1% yoy to `148. The bank’s operating efficiency has been relatively
                                                    low compared to peers, as reflected in the opex to average assets ratio of 2.7% in
                                                    4QFY2012 (2.0% in FY2012 – highest amongst PSU banks). We have built in
                                                    higher opex to average assets ratio of 1.9%, from 1.8% earlier, for both FY2013
                                                    and FY2014.

Exhibit 10: Operating expenses trend for BOM                          Exhibit 11: Cost ratios structurally higher for BOM
           Staff expenses (` cr)      Other opex (` cr)                           Opex to average assets (%)       Cost-to-income ratio (%, RHS)
                                                                          4.0         91.0                                                    100.0
   700       666
                                                           570
   600       137                                                                                                                  69.5        80.0
                                                                          3.0
   500                                                     148
                        350                   370                                               45.8       45.3         46.5                  60.0
   400                               353
                                                                          2.0
   300                  121          125      136                                                                                             40.0
   200                                                                    1.0
                                                                                                                                              20.0
   100       530        229          228      233          423                        3.6          1.8      1.8         1.9       2.7
       -                                                                      -                                                               -
            4QFY11    1QFY12       2QFY12   3QFY12        4QFY12                    4QFY11 1QFY12 2QFY12 3QFY12 4QFY12

Source: Company, Angel Research                                        Source: Company, Angel Research


                                                    Capital infused by govt. and LIC, tier-I ratio still at low 8.3%

                                                    The bank had approached the government for an infusion of ~`860cr in
                                                    1QFY2012. In FY2012, the bank received `605cr via equity capital infusion from
                                                    the government and LIC. As of 4QFY2012, the bank’s total CAR stood at 12.43%,
                                                    with tier-I CAR of 8.31%. Accordingly, we have built in advances growth of 16.5%
                                                    and 14.0% for FY2013 and FY2014, respectively.




May 10, 2012                                                                                                                                         5
                                          Bank of Maharashtra | 4QFY2012 Result Update



               Investment arguments
               Healthy CASA share ensures low-cost funding

               Bank of Maharashtra has enjoyed a healthy CASA ratio in the vicinity of 40% over
               the past several years on the back of strong rural and semi-urban presence
               (accounting for 53.3% of the entire branch network). Branch expansion seems to
               be gradually picking up, with the addition of 53 branches in FY2012 and a target
               of adding 200 branches in FY2013. We expect the bank to maintain its CASA
               share at ~40% levels over FY2013-14.

               The benefit of healthy CASA ratio and a relatively low dependence on bulk
               deposits are reflected in the bank’s relatively low cost of deposits compared to
               peers (at 6.56% for 4QFY2012).


               Attractive valuations

               At the CMP, the stock is trading at attractive valuations, in our view, of 0.6x
               FY2014E ABV, which is even below its lower trading range for the past five years
               (its five-year range of 0.7–1.2x and median of 0.9x). On the back of high NIM,
               moderate fee income and better provisioning coverage than peers, we expect the
               bank to deliver a healthy 38.5% earnings CAGR over FY2012–14E. We value
               the stock at 0.7x and, hence, recommend an Accumulate rating with a target
               price of `55.


               Exhibit 12: Key assumptions
                                                           Earlier estimates     Revised estimates
               Particulars (%)
                                                          FY2013      FY2014     FY2013    FY2014
               Credit growth                                16.5         14.0      16.5       14.0
               Deposit growth                               14.0         14.0      14.0       14.0
               CASA ratio                                   40.0         39.6      40.1       39.7
               NIMs                                           3.5          3.4      3.2        3.2
               Other income growth                            7.3          6.1      9.1        6.2
               Growth in staff expenses                     13.0         13.0      12.0       12.0
               Growth in other expenses                     13.0         13.0      10.0       10.0
               Slippages                                      2.8          2.8      2.3        2.3
               Coverage                                     80.0         75.0      77.0       75.0
               Source: Angel Research




May 10, 2012                                                                                     6
                                                                               Bank of Maharashtra | 4QFY2012 Result Update



               Exhibit 13: Change in estimates
                                                                                                 FY2013                                                                           FY2014
               Particulars (` cr)                                        Earlier                     Revised                                              Earlier                      Revised
                                                                                                             Var. (%)                                                                          Var. (%)
                                                                      estimates                    estimates                                           estimates                     estimates
               NII                                                         2,997                          2,882                      (3.9)                      3,399                       3,308                      (2.7)
               Non-interest income                                             667                             699                      4.7                       708                               742                   4.7
               Operating income                                            3,665                          3,580                      (2.3)                      4,107                       4,050                      (1.4)
               Operating expenses                                          1,648                          1,829                      11.0                       1,862                       2,037                         9.4
               Pre-prov. profit                                            2,016                          1,751                  (13.1)                         2,245                       2,013                     (10.3)
               Provisions & cont.                                              884                             653               (26.1)                           852                               790                (7.3)
               PBT                                                         1,133                          1,098                      (3.1)                      1,393                       1,224                     (12.1)
               Prov. for taxes                                                 367                             356                   (3.1)                        452                               397               (12.1)
               PAT                                                             765                             742                   (3.1)                        941                               827               (12.1)
               Source: Angel Research


               Exhibit 14: P/ABV band
                                           Price(`)                               0.4x                             0.7x                           1x                         1.3x                            1.6x
                140

                120

                100

                  80

                  60

                  40

                  20

                     0
                                                                               Oct-06




                                                                                                                                                                                           Oct-11
                                           Feb-05




                                                                                                                                                       Feb-10
                                  Sep-04




                                                                                                                                              Sep-09
                                                                                                                            Nov-08
                                                                                                                   Jun-08
                                                                      May-06




                                                                                                                                                                                  May-11
                                                             Dec-05




                                                                                                          Jan-08




                                                                                                                                                                         Dec-10




                                                                                                                                                                                                                      Jan-13
                                                    Jul-05




                                                                                                                                                                Jul-10
                         Apr-04




                                                                                                                                     Apr-09
                                                                                                 Aug-07




                                                                                                                                                                                                             Aug-12
                                                                                        Mar-07




                                                                                                                                                                                                    Mar-12
               Source: Company, Angel Research




May 10, 2012                                                                                                                                                                                                                   7
                                                                                     Bank of Maharashtra | 4QFY2012 Result Update



Exhibit 15: Recommendation summary
                                 CMP     Tgt. price    Upside    FY2014E           FY2014E      FY2014E        FY2012-14E       FY2014E     FY2014E
Company       Reco.
                                  (`)            (`)      (%)    P/ABV (x)     Tgt P/ABV (x)      P/E (x)     EPS CAGR (%)       RoA (%)     RoE (%)
AxisBk        Buy                979         1,587      62.1           1.3               2.2          7.0              16.4           1.5      20.3
FedBk         Neutral            408              -         -          1.0                 -          7.1              13.0           1.3      14.5
HDFCBk        Accumulate         517           567        9.7          3.0               3.3        14.6               27.0           1.7      22.1
ICICIBk*      Buy                813         1,201      47.8           1.3               1.9        10.0               20.4           1.5      16.0
SIB           Neutral              23             -         -          1.1                 -          6.1                4.5          0.8      17.5
YesBk         Buy                326           470      43.9           1.7               2.4          7.9              22.5           1.4      23.3
AllBk         Accumulate         152           166        9.3          0.6               0.7          3.6                6.2          0.9      17.6
AndhBk        Neutral            105              -         -          0.6                 -          4.1                3.3          0.9      16.0
BOB           Buy                641           925      44.5           0.7               1.1          4.3              11.1           1.1      18.2
BOI           Buy                353           411      16.3           0.7               1.0          4.4              23.3           0.8      16.9
BOM           Accumulate           48           55      14.5           0.6               0.7          3.7              45.3           0.7      17.2
CanBk         Buy                419           522      24.7           0.7               0.9          4.5              11.8           0.9      16.4
CentBk        Neutral              77             -         -          0.7                 -          3.9              45.7           0.5      13.8
CorpBk        Buy                404           504      24.7           0.5               0.7          3.6                5.3          0.8      16.5
DenaBk        Buy                  84          118      39.8           0.5               0.7          3.3                6.2          0.9      16.9
IDBI#         Buy                  92          117      26.5           0.6               0.7          3.9              22.7           0.9      14.8
IndBk         Buy                196           240      22.4           0.7               0.8          4.0                5.4          1.2      18.2
IOB           Buy                  82          101      23.7           0.5               0.6          3.8              28.3           0.6      13.9
J&KBk         Neutral            854              -         -          0.8                 -          4.4                8.8          1.4      18.6
OBC           Buy                220           285      29.6           0.5               0.6          3.4              27.7           0.8      14.3
PNB           Buy                754         1,117      48.1           0.7               1.1          4.3              10.3           1.0      18.1
SBI*          Buy              1,844         2,593      40.6           1.1               1.6          6.8              23.6           1.0      19.1
SynBk         Buy                  91          128      41.1           0.5               0.8          3.3                8.7          0.8      17.1
UcoBk         Neutral              68             -         -          0.8                 -          4.7                7.0          0.5      13.4
UnionBk       Buy                203           276      35.9           0.7               0.9          4.0              24.8           0.8      17.5
UtdBk         Buy                  58           85      46.3           0.4               0.6          2.7              11.4           0.7      15.9
VijBk         Neutral              53             -         -          0.6                 -          4.3              13.5           0.5      13.7
Source: Company, Angel Research; Note:*Target multiples=SOTP Target Price/ABV (including subsidiaries), #Without adjusting for SASF




May 10, 2012                                                                                                                                      8
                                              Bank of Maharashtra | 4QFY2012 Result Update



               Income statement
               Y/E March (` cr)                  FY09        FY10        FY11      FY12      FY13E     FY14E
               Net Interest Income              1,257       1,296       1,968     2,517      2,882      3,308
               - YoY Growth (%)                  11.3          3.2       51.9      27.9       14.5       14.8
               Other Income                          500      591         531      641        699        742
               - YoY Growth (%)                  31.5         18.2      (10.2)     20.7        9.1        6.2
               Operating Income                 1,757       1,887       2,499     3,158      3,580      4,050
               - YoY Growth (%)                  16.4          7.5       32.4      26.3       13.4       13.1
               Operating Expenses                    963    1,073       1,644     1,643      1,829      2,037
               - YoY Growth (%)                  15.1         11.4       53.2      (0.1)      11.4       11.4
               Pre - Provision Profit                794      815         855     1,515      1,751      2,013
               - YoY Growth (%)                  18.0          2.6        5.0      77.2       15.6       15.0
               Prov. & Cont.                         282      246         467      856        653        790
               - YoY Growth (%)                  88.2       (13.0)       90.1      83.3      (23.7)      20.9
               Profit Before Tax                     511      569         388      659       1,098      1,224
               - YoY Growth (%)                  (2.2)        11.3      (31.8)     69.9       66.6       11.4
               Prov. for Taxation                    136      129          57      228        356        397
               - as a % of PBT                   26.6         22.7       14.8      34.6       32.4       32.4
               PAT                                   375      440         330      431        742        827
               - YoY Growth (%)                  14.2         17.2      (24.8)     30.4       72.1       11.4
               Preference Dividend                     -           -       34        65         62        54
               PAT avl. to Eq. shareholders          375      440         297      366        680        773
               - YoY Growth (%)                  14.2         17.2      (32.5)     23.4       85.9       13.6



               Balance sheet
               Y/E March (` cr)               FY09         FY10         FY11      FY12      FY13E      FY14E
               Share Capital                  431           431         1,070     1,178      1,178      1,178
                - Equity                      431           431          482       590        590        590
                - Preference                     -             -         588       588        588        588
               Reserve & Surplus          2,087            2,428        2,901     3,545      4,088      4,690
               Deposits                  52,255        63,304          66,845    76,529     87,243     99,457
               - Growth (%)                   25.1          21.1          5.6      14.5       14.0       14.0
               Borrowings                     190           129          577       664        756        860
               Tier 2 Capital             2,068            2,668        2,500     3,161      3,682      4,198
               Other Liab. & Prov.        2,001            2,096        2,550     2,941      3,221      3,612
               Total Liabilities         59,030        71,056          76,442    88,017    100,167    113,994
               Cash Balances              3,881            5,315        3,846     4,535      3,490      3,978
               Bank Balances                  224          1,379         203      1,209      1,376      1,566
               Investments               18,382        21,324          22,491    22,911     26,255     29,767
               Advances                  34,291        40,315          46,881    56,060     65,310     74,453
               - Growth (%)                   17.1          17.6         16.3      19.6       16.5       14.0
               Fixed Assets                   655           660          667       601        663        732
               Other Assets               1,597            2,063        2,354     2,701      3,074      3,499
               Total Assets              59,030        71,056          76,442    88,017    100,167    113,994
               - Growth (%)                   22.6          20.4          7.6      15.1       13.8       13.8




May 10, 2012                                                                                               9
                                              Bank of Maharashtra | 4QFY2012 Result Update



               Ratio analysis
               Y/E March                             FY09   FY10   FY11   FY12   FY13E   FY14E
               Profitability ratios (%)
               NIMs                                   2.5    2.1    2.8    3.2     3.2     3.2
               Cost to Income Ratio                  54.8   56.8   65.8   52.0    51.1    50.3
               RoA                                    0.7    0.7    0.4    0.4     0.7     0.7
               RoE                                   19.6   19.7   11.3   11.3    17.4    17.2
               B/S ratios (%)
               CASA Ratio                            35.7   36.9   40.4   41.3    40.1    39.7
               Credit/Deposit Ratio                  65.6   63.7   70.1   73.3    74.9    74.9
               CAR                                   10.8   12.8   13.4   14.7    14.9    14.9
               - Tier I                               5.5    5.7    8.0    8.5     8.5     8.4
               Asset Quality (%)
               Gross NPAs                             2.3    3.0    2.5    2.3     3.4     4.5
               Net NPAs                               0.8    1.6    1.3    0.8     1.2     1.5
               Slippages                              1.2    2.5    1.7    1.8     2.3     2.3
               Loan Loss Prov. /Avg. Assets           0.3    0.4    0.5    0.8     0.6     0.7
               Provision Coverage                    65.9   54.7   63.2   80.4    77.0    75.0
               Per Share Data (`)
               EPS                                    8.7   10.2    6.2    6.2    11.5    13.1
               ABVPS (75% cover.)                    46.3   48.6   56.6   62.6    71.8    82.0
               DPS                                    1.5    2.0    2.0    1.0     2.0     2.5
               Valuation Ratios
               PER (x)                                5.5    4.7    7.8    7.8     4.2     3.7
               P/ABVPS (x)                            1.0    1.0    0.9    0.8     0.7     0.6
               Dividend Yield                         3.1    4.1    4.1    2.1     4.1     5.2
               DuPont Analysis
               NII                                    2.3    2.0    2.7    3.1     3.1     3.1
               (-) Prov. Exp.                         0.5    0.4    0.6    1.0     0.7     0.7
               Adj. NII                               1.8    1.6    2.0    2.0     2.4     2.4
               Treasury                               0.3    0.3    0.1    0.0     0.0     0.0
               Int. Sens. Inc.                        2.1    1.9    2.1    2.0     2.4     2.4
               Other Inc.                             0.6    0.6    0.6    0.8     0.7     0.7
               Op. Inc.                               2.8    2.5    2.8    2.8     3.1     3.0
               Opex                                   1.8    1.6    2.2    2.0     1.9     1.9
               PBT                                    1.0    0.9    0.5    0.8     1.2     1.1
               Taxes                                  0.3    0.2    0.1    0.3     0.4     0.4
               RoA                                    0.7    0.7    0.4    0.5     0.8     0.8
               Pref. Div.                               -      -    0.0    0.1     0.1     0.0
               RoA after Pref. Div                    0.7    0.7    0.4    0.5     0.7     0.7
               Leverage                              28.0   29.1   27.6   24.8    23.7    23.6
               RoE                                   19.6   19.7   11.3   11.3    17.4    17.2




May 10, 2012                                                                               10
                                                                               Bank of Maharashtra | 4QFY2012 Result Update



 Research Team Tel: 022 - 39357800                   E-mail: research@angelbroking.com                    Website: www.angelbroking.com

  DISCLAIMER

 This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
 decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make
 such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies
 referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and
 risks of such an investment.

 Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make
 investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this
 document are those of the analyst, and the company may or may not subscribe to all the views expressed within.

 Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
 trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
 fundamentals.

 The information in this document has been printed on the basis of publicly available information, internal data and other reliable
 sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this
 document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way
 responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.
 Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify,
 nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While
 Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory,
 compliance, or other reasons that prevent us from doing so.

 This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
 redistributed or passed on, directly or indirectly.

 Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or
 other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in
 the past.

 Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in
 connection with the use of this information.

  Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the
  latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have
  investment positions in the stocks recommended in this report.




  Disclosure of Interest Statement                                        Bank of Maharashtra
  1. Analyst ownership of the stock                                                  No
  2. Angel and its Group companies ownership of the stock                            No
  3. Angel and its Group companies' Directors ownership of the stock                 No
  4. Broking relationship with company covered                                       No

  Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors


 Ratings (Returns):              Buy (> 15%)                            Accumulate (5% to 15%)                     Neutral (-5 to 5%)
                                 Reduce (-5% to -15%)                   Sell (< -15%)

May 10, 2012                                                                                                                              11

								
To top