Bank of Maharashtra (MAHABANK) Q1 24/25 earnings summary

Executive summary

• Total business grew 13.5% year-over-year to INR 4.76 lakh crore, with advances up 19% to INR 2.09 lakh crore and deposits up 9% to INR 2.67 lakh crore.

• Net profit rose 46.64% year-over-year for the quarter ended June 2024, with operating profit up 23.14% and net interest income increasing 19.63%.

• Asset quality improved, with GNPA at 1.85% and NNPA at 0.2%, and PCR at 98.36%.

• Board approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2024, with unmodified auditor opinion.

• Consistent performance over the last 13-15 quarters, with no deviation from key parameters.

Financial highlights

• Total income for the quarter reached ₹6,769 crore, up 25% year-over-year; net profit was ₹1,293 crore, up 47%.

• Net interest margin (NIM) stood at 3.97%, stable compared to the previous quarter.

• Cost of deposits decreased from 4.86% to 4.48% due to higher average CASA.

• Capital adequacy ratio (CRAR) at 17.04% (standalone), with a recent INR 1,000 crore capital raise in July taking it to 17.7%.

• Recovery from written-off accounts was INR 470 crore this quarter, including a one-time INR 200 crore recovery.

Outlook and guidance

• FY25 guidance: total business growth of 16%, advances growth of 18-20%, deposit growth of 12-15%, and CASA share around 50%.

• NIM guidance of 3.7-3.9%, cost-to-income ratio below 40%, ROA guidance of 1.5-1.6%.

• Macro environment remains positive with India's GDP projected to grow 7.2% in FY25.

• Focus areas include digital banking expansion, financial inclusion, and green finance initiatives.

• CRAR guidance between 16-17%.