Bank of Maharashtra (MAHABANK) Q4 04/05 earnings summary

Executive summary

• FY2004-05 net profit was ₹177.12 crore vs ₹304.55 crore; one-time investment depreciation and wage-revision provisions weighed on results.

• Total business exceeded ₹41,900 crore; net advances grew 11.33% and deposits rose 9.08% YoY.

• Declared a 14% dividend despite lower profit; capital adequacy was 12.68%.

Financial highlights

• Interest earned ₹2,367.69 crore vs ₹2,198.81 crore; other income ₹385.24 crore vs ₹469.81 crore.

• Operating profit ₹546.46 crore vs ₹676.49 crore; net profit ₹177.12 crore vs ₹304.55 crore.

• Interest expense ₹1,486.03 crore vs ₹1,431.67 crore; operating expenses ₹720.43 crore vs ₹560.46 crore.

• Provisions and contingencies were ₹369.34 crore vs ₹371.94 crore; included ₹213.93 crore investment depreciation and ₹105 crore wage-revision provision.

• Aggregate deposits were ₹28,844.17 crore, up 9.08%; net advances ₹13,061.64 crore, up 11.33% YoY.

Outlook and guidance

• Action plans were set for major activities to achieve targets and enhance stakeholder value.

• Agricultural credit expansion was targeted to double by FY2007; quarterly progress reviews and a dedicated subcommittee were established.

• Risk-based internal audit preparations began for FY2005-06; KYC compliance was targeted by 31 Dec 2005.

• Core banking preparation included business-process redesign, MIS requirement definition and a cross-functional nodal group.