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Analyst Meet / AGM - Analyst Meet

Consolidation phase over, looking at profitable growth

Bank of Maharashtra

11-Nov-2014, 08:40
Bank of Maharashtra conducted an analyst meet on 11 October 2014 to discuss the financial results for the quarter ended September 2014 and prospects of the bank. Sushil Muhnot CMD of the bank addressed the meet:
Highlights:

Bank has continued to exhibit improvement in performance on sequential basis. Bank has improved margins, CASA ratio, expense ratio etc.
As per the bank, CASA improvement contributed about 06 bps decline in cost of deposits. Bank proposes to improve CASA ratio to 37-38% over next one year.
The advances book of the bank was steady on year-on-year basis with bank in a consolidation phase. However, the bank has witnessed favourable change in the composition mix of the loan book.
Loan of the bank was steady at Rs 90120 crore at end September 2014 over end March 2014 level. Bank had raised base rate by 15 bps to 10.4% in April 2014, which led to exit of about Rs 5000-6000 crore of base rate sensitive advances.
The fresh restructuring of advances was higher at Rs 590 crore in Q2FY2015. The outstanding restructured advances of the bank stood at Rs 7357 crore amounting to 8.16% of advances at end September 2014.
Fresh slippages of advances was steady at Rs 1278 crore in Q2FY2015, while bank has more than doubled NPA reductions to Rs 696 crore in Q2FY2015. Bank expects fresh slippages to be contained, while sees higher recoveries and upgradations in H2FY2015.
The three themes - infrastructure, exports and domestic demand that impacted banking sector during last two-three years have started showing improvement.
Bank has completed the consolidation phase and it is focusing on profitable growth, going forward.
Bank proposes to improve provision coverage ratio to 60% over next one year from 49.1% at end September 2014.
The modified duration of the investment book of the bank stood at 4.42 years at end September 2014.