Bank of Maharashtra (MAHABANK) Q2 24/25 earnings summary

Executive summary

• Net profit rose 44.25% year-over-year for the quarter ended September 2024, with operating profit up 14.66% year-over-year.

• Total business grew 17% year-over-year, with advances up 19% and deposits up 15% year-over-year.

• Asset quality improved, with gross NPA at 1.84% and net NPA at 0.20% as of September 2024.

• Retail, agriculture, and MSME segments posted robust double-digit growth, with agriculture loans up 34% and MSME up 25% year-over-year.

• Board approved unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2024.

Financial highlights

• Net interest income increased 15.41% year-over-year, with NIM maintained at 3.98%.

• Total income for the quarter was ₹6,809 crore, up 19% year-over-year; non-interest income increased 19% to ₹792 crore.

• Operating profit grew 15% year-over-year to INR 2,203 crores.

• CASA deposits grew 12% year-over-year, with INR 15,000 crores added and a CASA ratio near 50%.

• Cost-to-income ratio stood at 38.34% for the quarter.

Outlook and guidance

• Guidance for FY25: business growth at 16%, advances at 18-20%, and deposits at 12-15%.

• NIM guidance remains conservative at 3.75-3.85% due to potential rate cuts; ROA guidance at 1.6-1.65%.

• Confident in surpassing guidance, with Q3 and Q4 expected to show further improvement.

• Aggressive branch expansion planned, targeting 1,000 branches in five years, with 200-220 new branches in the next 12 months.

• Real GDP growth for India is expected around 7.2% for FY 2024-25, with improved industrial activity anticipated in the second half.