Bank of Maharashtra (MAHABANK) held an earnings conference call on 25th April, 2025, to discuss its financial results for the quarter and year ended 31st March, 2025. Key highlights shared by the management included:

• Overall Performance: Consistent growth across business, asset quality, profitability, capital adequacy, and efficiency ratios.
• Business Growth (Year-on-Year):
  • Total Business grew by 15.30% to ₹5,47,000 crore.
  • Total Deposits increased by 13.44% to ₹3,07,000 crore.
  • Advances increased by 17.76% to ₹2,40,000 crore.
• Asset Quality:
  • Gross NPA declined to 1.74%.
  • Net NPA reduced to 0.18%.
  • PCR maintained at 98.3%.
  • Overall stress witnessed a reduction of 129 bps from 4.71% to 3.42% for March '25.
  • Stress in accounts above ₹5 crore stood at 0.11%.
  • SMA 1+2 was at 2%.
• Profitability (Year-on-Year):
  • Operating Profit grew by 16% for the full year.
  • Net Profit increased by 36% to ₹5,520 crore for the full year.
• Key Ratios:
  • Full Year NIM at 4%; Q4 NIM at 4.01% (8 bps year-on-year improvement in full year NIM).
  • ROA at 1.75% (25 bps increase year-on-year).
  • CET1 at around 16%, CRAR at 20.53%, LCR at 127%.
  • Government of India holding reduced to 79.6%.
  • Cost-to-Income ratio improved by 22 bps year-on-year to 38.5%.
  • Yield on Advances improved by 16 bps year-on-year to 9.3%.
  • CASA ratio brought up to 53.28%.
• Segment-wise Growth (Year-on-Year): RAM segment saw healthy growth. Retail grew 25%, Home loan 30%, Car loan 47%, Gold 56%. Corporate book grew 15%. RAM corporate ratio maintained at 62.38%.
• Growth Strategy: Growth is primarily driven by branches, with focus on sustainable, core business. Dependence on pool buyouts/direct assignments was kept under control (pool outstanding decreased by 7% year-on-year to ₹12,998 crore as of 31st March). Strict underwriting standards maintained.
• Branch Expansion: Opened over 500 branches in the last 3 years. Board approved opening 1,000 branches in 5 years (200-220 in the next 12 months).
• GIFT City IBU: Approved for a license, project moving fast for global presence within the financial year.
• Strengthening Functions: Onboarding talent in technology, risk, and governance for sustainable growth.
• Future Guidance (FY26):
  • Advances growth: Around 17%.
  • Deposits growth: Around 14%.
  • CASA ratio: Maintained above 50%.
  • NIM: Conservative guidance at 3.75% (mindful of rate cuts).
  • ROA: Maintain at 1.75%.
  • GNPA: Maintain below 2%.
  • Credit Cost: Maintain below 1%.
  • Cost-to-Income: Maintain below 40%.
• Capital Raise: Board approved ₹7,500 crore for QIP and ₹10,000 crore for long-term bonds. Decision on mode and timing will be taken during the year, considering the need to meet the 75% SEBI requirement for Government of India holding.
• Dividend: The Board recommended a dividend of 15% (subject to approval by the AGM).
• Economic Outlook: Sees India as a fast-growing economy with growth indicated by data points like surging GST collections. Bank focuses on participating in profitable sectors like road HAM, renewable energy, LRD, targeting high-quality borrowers with improved turnaround times.