Bank of Maharashtra (MAHABANK) Q4 09/10 earnings summary

Executive summary

• FY09/10 total business rose 19.71% to Rs.1,04,230 crore; net profit increased 17.17% to Rs.439.58 crore.

• All 1,453 branches moved to core banking by March 2010, serving 13 million-plus customers; 33 branches opened during the year.

Financial highlights

• Total income increased 11.17% to Rs.5,326.81 crore; interest income rose 10.35% to Rs.4,735.56 crore and non-interest income rose 18.24% to Rs.591.24 crore.

• Operating profit increased 2.65% to Rs.814.55 crore; provisions and contingencies fell 10.37% to Rs.374.97 crore; net profit was Rs.439.58 crore.

• Deposits grew 21.14% to Rs.63,304 crore; gross advances rose 17.55% to Rs.40,926 crore. CASA deposits were Rs.23,364 crore, 36.91% of total deposits.

Outlook and guidance

• RBI projected India’s real GDP growth at 8% in FY10/11, non-food bank credit growth at 20% and aggregate bank deposit growth at 18%.

• Inflation and tighter liquidity were identified as key challenges; affordable credit to agriculture, MSMEs, infrastructure and export-oriented units remained an industry priority.

• Plans included continued support for core, manufacturing, priority and infrastructure sectors, plus banking access for identified villages by 2012.