Bank of Maharashtra (MAHABANK) Q4 03/04 earnings summary

Executive summary

• FY03/04 net profit rose 37.17% to Rs.304.55 crore from Rs.222.02 crore; operating profit reached Rs.676.49 crore versus Rs.520.58 crore.

• Deposits reached Rs.26,445.93 crore and advances Rs.11,731.51 crore at 31 March 2004; advances grew 23.38% YoY.

• The Board recommended a 16% full-year dividend; EPS was Rs.9.21.

Financial highlights

• Total income was Rs.2,668.62 crore versus Rs.2,442.15 crore; interest earned was Rs.2,203.39 crore and other income Rs.465.22 crore.

• Interest expense was Rs.1,431.67 crore; operating expenses were Rs.560.46 crore and provisions and contingencies Rs.371.94 crore.

• Net investments increased 18.15% to Rs.13,943.02 crore; investment interest income rose 11.24% to Rs.1,265.09 crore and trading profit rose 42.35% to Rs.307.39 crore.

• IPO proceeds totaled Rs.230 crore from 10 crore shares issued at Rs.23 each; the offer was subscribed more than 11 times.

Outlook and guidance

• Priority areas remain retail advances, low-cost deposits and reducing NPAs; ambitious growth targets were set for coming years.

• Planned technology initiatives included 255 additional online ATMs, a Pune data centre, phased core banking and VISA co-branded debit cards for MAHANET-connected branches.

• Board approved proposed representative offices in New York, Singapore, London and Dubai; RBI approval was pending.