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% and net interest income up 15.41% 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% (down from 2.19%) and net NPA at 0.20%.

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

• Financial statements reflect compliance with SEBI and RBI guidelines, with no material misstatements identified.

Financial highlights

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

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

• Total income for the quarter was ₹6,809 crore, up 19% year-over-year; half-year income reached ₹13,578 crore, up 22%.

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

• Provision coverage ratio remained high at 98.31%.

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.

• Bank continues to hold a COVID-19 related contingency provision of ₹1,200 crore as of September 30, 2024.