The Bank of Maharashtra (NSE: MAHABANK) started on 16 September 1935. The is owned by Indian government. The bank had 15 million customers across the country with 1,900 branches as of March 2021. the bank has wide presence in the state of Maharashtra.

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Industry Overview

Economic and Banking Scenario 2019-20

The financial year 2019-20 was a difficult year for the global economy with world output growth growing at its slowest pace of 2.9% since the global financial crisis of 2009. With the onset of the COVID-19 outbreak in early January 2020, the situation worsened. Due to falling consumption, investment & exports, the economy suffered a slowdown in growth, wherein GDP growth fell from 7% in FY2018 & 6.1% in FY2019 to 4.2% in FY20. The fall in growth was sharp in industrial sector which fell to 0.9% y-o-y from 4.9%; moderation in services sector (growing at 5.5% compared to 7.7% in the previous year), which was offset by an uptick in the growth of agriculture sector (growing at 4% against 2.4% in the previous year) due to healthy precipitation. 1

With weak economic growth, falling consumption & tax collection, the Government took important reforms measures to boost investment and consumption. However, the outbreak of Covid-19 in India and consequent nation-wide lockdown dampened the momentum. Bank credit growth in the year ended up at a much lower rate than was expected.

Financial Overview

Total Business of the Bank stood at Rs 2,44,955 crore as on 31.03.2020 as against Rs 2,34,117 crore as on 31.03.2019, showing an annual growth of 4.63%.

Total deposits stood at Rs 1,50,066 crore as compared to Rs 1,40,650 crore last year, showing an annual growth of 6.69%

CASA deposits increased to Rs 75,475 crore as on 31.03.2020 from Rs 69,830 crore as on 31.03.2019, registering a growth of 8.08%. Share of CASA to total deposits stood at Rs 50.29% as on 31.03.2020.

Gross advances of the Bank stood at Rs 94,889 crore as on 31.03.2020 in comparison to Rs 93,467 crore as on 31.03.2019.

Operating Profit stood at Rs 2,847 Crore for the year ended 31.03.2020 as against Rs 2,198 crore for the year ended 31.03.2019.

Business per Employee increased to Rs 19.55 crore as on 31.03.2020 as against Rs 18.13 crore as on 31.03.2019. Corresponding figures for Business per Branch stood at Rs 133.64 crore and Rs 127.79 crore respectively.

Foreign Exchange Business

Currently, the bank has 36 B Category branches across the country catering to the International business needs of the customers of the Bank apart from TIBB at Mumbai as “A” category branch. The Merchant Business for FY 2019-20 stood at Rs 35,127.77 crore.

Investment

Gross Investments as on 31.03.2020 stood at Rs 58,171.34 crore, of which Rs 36, 632.88 crore were into SLR securities and Rs 21,538.46 crore into Non-SLR Securities. The excess SLR securities as on 31.03.2020 stood at Rs 9,445.23 crore.

The net investments (net of provisions) stood at Rs 57,740.85 crore as on 31.03.2020 as compared to Rs 59,697.05 crore as on 31.03.2019. Investments under Held to Maturity (HTM) category consist of 65.40%, while Available for Sale (AFS) comprised of 34.59% of total investment portfolio as of 31.03.2020. The net interest income from investment activity increased to Rs 4,203.89 crore from Rs 3,689.61 crore during the last year (growth of 13.94%)

The Non-Performing Investments stood at Rs 389.15 crore as on 31.03.2020.

Borrowings

The borrowing of the Bank as on 31st March 2020 stood at 3,766.89 crore including re-finance

Government Business

During the year 2019-20, 6,05,256 challans of Direct Taxes and 40,446 challans of Indirect taxes were collected by the branches. Total commission to the tune of Rs 4.54 crore was received on tax collection business from Central/State Government’s and other business. As a service to senior citizens, the Bank is processing and crediting monthly pension payments of more than 1,11,653 Central Government, Defense, Railway and Telecom pensioners at Central Pension Processing Cell (CPPC), Pune. The commission on Government Business (Pension) for the Year 2019-20 stood Rs 13.05 Cr.

Income

The total income of the Bank stood at Rs 13144.68 crore in FY 2019-20 as compared to Rs 12,397.06 crore in FY 2018-19.

Capital

Bank has allotted 297,09,37,912 Equity Shares of `10/- each of Bank to Government of India at issue price of Rs 15.14/- per share on 29th April, 2019 against a capital infusion of Rs 4498/- crore. The Government of India infused Equity capital of Rs 831/- crore in Bank on 20th March, 2020. The said money is kept in the Share application money pending allotment A/c till allotment formalities are completed. With the approval of RBI, said capital is used for computation of CET-1 Ratio as on 31.03.2020. Further, the Bank also raised Tier – II capital of Rs 600 crore by issue of BASEL III Tier – II Bonds with coupon rate of 8.70% in March, 2020.

Net worth

The Bank’s Net Worth stood at Rs 6,985.74 crore as on 31.03.2020 as against Rs 5,859.73 crore as on 31.03.2019.

Capital Adequacy Ratio

The Capital Adequacy ratio stood at 13.52 % as on 31.03.2020, against the minimum of 10.88 % (including CCB) prescribed by RBI in terms of Basel III norms. The Common Equity Tier 1 Ratio stood at 10.67 %

Financial Ratios

The various financial parameters of the Bank during the year 2019-20 can be seen below:

Particulars2019-202018-19
EPS(Rs)0.67-14.26
Cost to Income Ratio (percent)51.9758.39
Return on assets (percent)0.23-3.01
Return on equity (per cent)6.32-207.99
Book value per share (Rs)11.9910.24
Profit per Branch (Rs in lakh)21.2-261.13
Profit per employee (Rs in lakh)3.1-37.05
Business per Branch (Rs in crore)133.64127.79
Business per employee (Rs in crore)19.5518.13
Interest income as per cent to Average working funds6.786.82
Non-Interest income as per cent to average working funds0.970.97
Net Interest Margin (per cent)*2.62.53
Operating Profit as per cent to average working Funds1.681.38
Staff expenses as a percent to average working funds1.031.13
Dividend (per cent)00
Net worth (Rs Crore)6985.745859.73
CRAR (%) (Basel II)13.5211.86
Of which, Tier I CRAR (%) (Basel II)10.679.91

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Financial Results for The Quarter Ended 31st December 2020 2

Key Highlights at Glance (Y-o-Y Basis)

Total Business increased by 13.15 % to Rs. 2,66,875 crore. The same is up by 1.85 % on sequential basis .

Total Deposits increased by 14.08 % to Rs. 1,61,971 crore. The same is up by 2.11 % on sequential basis.

CASA increased by 20.82 % to Rs. 82,452 crore.

Gross Advances up by 11.74 % to Rs. 1,04,904 crore.

Net Advances grew by 20.31 % to Rs. 99,401 crore.

Retail advances grew by 28.89 % to Rs. 27,540 crore.

MSME advances up by 26.31% to Rs. 20,304 crore.

Net revenues (net interest income plus other income) increased by 15.22 % and 19.39 % on sequential basis to Rs. 1876 crore.

Net Profit up by 13.91% to Rs. 154 crore

Operating profit increased by 7.18% to Rs 902 crore

Net Interest Income increased by 10.12% to Rs. 1306 crore

Net Interest Margin (NIM) improved to 3.06% as against 2.86%

Gross NPA improved to 7.69% as on 31.12.2020 against 16.77% as on 31.12.2019. The same was 8.81% as on 30.09.2020.

Net NPA improved to 2.59% as on 31.12.2020 against 5.46% as on 31.12.2019. The same was 3.30% as on 30.09.2020.

References

  1. ^ https://www.bankofmaharashtra.in/writereaddata/documentlibrary/ab68c6f9-d072-46cd-8763-3934fcbb143a.pdf
  2. ^ https://www.bankofmaharashtra.in/writereaddata/documentlibrary/d8b56803-bc77-494a-a456-fb628d042eac.pdf
Tags: IN:MAHABANK
Created by Asif Farooqui on 2021/04/12 17:33
     

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