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% and deposits up 9%.

• Net profit rose 46.64% year-over-year for the quarter ended June 2024, with operating profit up 23.14% and NIM stable at 3.97%.

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

• CASA share maintained at 50%, with current account growth at 10% and term deposits up 12% year-over-year.

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

Financial highlights

• Total income increased 25% year-over-year to ₹6,769 crore; net interest income up 19.63% to ₹2,799 crore.

• Non-interest income rose 42% year-over-year to ₹894 crore, driven by higher fee-based and recovery income.

• Cost-to-income ratio at 37-38%; operating expenses increased 27% year-over-year.

• Return on assets at 1.72% and return on equity at 27.62% for the quarter.

• 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%.

• GNPA to be maintained below 2%, NNPA between 0.2-0.25%, and credit cost at 1%.

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

• Bank raised ₹1,000 crore in Basel III compliant Tier II bonds at 7.89% on July 4, 2024.