Bank of Maharashtra (MAHABANK) Q4 06/07 earnings summary

Executive summary

• FY07 total business rose 30.46% to ₹57,382 crore; total income increased 18.22% to ₹2,987.09 crore and net profit reached ₹271.84 crore from ₹50.79 crore.

• Stronger operating profit, recoveries and non-interest income coincided with lower gross and net NPA ratios and improved capital adequacy.

Financial highlights

• Total income ₹2,987.09 crore versus ₹2,526.69 crore; total expenditure ₹2,715.25 crore versus ₹2,475.90 crore.

• Operating profit ₹613.20 crore versus ₹365.07 crore; net profit ₹271.84 crore versus ₹50.79 crore, up 435.22% YoY as reported.

• Interest earned rose to ₹2,722.04 crore from ₹2,474.45 crore; interest on loans and advances increased 44.04% to ₹1,704.79 crore.

• Other income was ₹265.05 crore versus ₹52.24 crore; non-interest income excluding treasury gains increased 407.37% YoY.

Outlook and guidance

• Three-year business target set at ₹1,10,000 crore, with long-term priorities including technology-led services, customer focus and broader market presence.

• Planned CBS expansion to 600 branches by March 2008; additional treasury, trade finance, risk, customer-management and digital delivery modules were planned.

• Recommended dividend of 20% for FY07, subject to shareholder approval.