{"id":160644,"date":"2024-04-29T11:53:01","date_gmt":"2024-04-29T15:53:01","guid":{"rendered":"https:\/\/44.250.171.167\/?p=160644"},"modified":"2024-04-29T11:53:03","modified_gmt":"2024-04-29T15:53:03","slug":"bank-of-maharashtra-ltd-q4-fy24-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/bank-of-maharashtra-ltd-q4-fy24-earnings-conference-call-insights\/","title":{"rendered":"Bank of Maharashtra Ltd Q4 FY24 Earnings Conference Call Insights"},"content":{"rendered":"<p><strong>Key highlights from Bank of Maharashtra Ltd (MAHABANK) Q4 FY24 Earnings Concall<\/strong><\/p>\n<ul>\n<li><strong>Credit Underwriting<\/strong>\n<ul>\n<li>Implemented minimum benchmark credit scores for loan underwriting.<\/li>\n<li>Established criteria to build a healthy loan book.<\/li>\n<li>Set up a centralized underwriting cell at the head office for large and mid-corporate projects.<\/li>\n<li>Ensured quick turnaround time for mid and large corporate proposals.<\/li>\n<li>Established Central Processing Centers (CPCs) at zonal offices for retail, MSME, and agriculture loans.<\/li>\n<li>Steadily expanding centralized underwriting coverage for RAM (Retail, Agriculture, and MSME) segment.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Financial Performance<\/strong>\n<ul>\n<li>Net profit grew by 56% year-over-year (YoY), reaching Rs. 4,055 crores.<\/li>\n<li>Total business grew by 15.94%, closing at Rs. 4.74 lakh crores.<\/li>\n<li>Total deposits increased by 15.66%, reaching Rs. 2.7 lakh crores.<\/li>\n<li>Gross advances grew by 16.3% to Rs. 2.03 lakh crores.<\/li>\n<li>Gross NPA declined sharply, now below 2% at 1.88%.<\/li>\n<li>NIM improved to 3.92% from 3.56%.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Specialized Branches<\/strong>\n<ul>\n<li>Established specialized branches for housing finance, mid-corporate, and corporate finance.<\/li>\n<li>Mid-corporate branches cater to proposals ranging from Rs. 25 to 100 crores MSME borrowers.<\/li>\n<li>Corporate finance branches handle proposals above Rs. 100 crores.<\/li>\n<li>Specialized branches have dedicated manpower and required skill sets.<\/li>\n<li>Ensuring better monitoring, improved turnaround time, and better customer experience.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Recovery Efforts<\/strong>\n<ul>\n<li>Implemented a robust collection, recovery, and follow-up mechanism.<\/li>\n<li>Initiated recovery efforts immediately for delinquent accounts.<\/li>\n<li>Set up specialized recovery branches for bad asset recovery.<\/li>\n<li>13 asset recovery branches handle NPAs from Rs. 20 lakhs to Rs. 5 crores.<\/li>\n<li>17 Stressed Assets Management Branch branches handle NPAs above Rs. 5 crores and NCLT cases.<\/li>\n<li>70% of the bank&#8217;s bad assets housed in these 17 branches.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Branch Network Expansion<\/strong>\n<ul>\n<li>Current network: 46 zonal offices, 2,500 branches, and 2,300 ATMs.<\/li>\n<li>Low Business Correspondent (BC) network currently at 3,300.<\/li>\n<li>Plan to ramp up BC network to around 10,000 by September 2024.<\/li>\n<li>Opening new branches to improve presence across the country.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Digital Initiatives<\/strong>\n<ul>\n<li>Implementing CRM platform and lifestyle banking application for personalized service.<\/li>\n<li>Launching AI-based video assistant for instant personalized assistance round the clock.<\/li>\n<li>Introducing digital insurance platform and integration with online share trading platform.<\/li>\n<li>Implementing Straight Through Processing (STP) journeys for various products and services.<\/li>\n<\/ul>\n<\/li>\n<li><strong>New Business Vertical<\/strong>\n<ul>\n<li>Established a new vertical for customer acquisition and engagement.<\/li>\n<li>Aimed at deepening existing relationships and acquiring new businesses beyond credit and deposits.<\/li>\n<li>Offering services like payment and collection, channel finance, payroll business, etc.<\/li>\n<li>Headed by a General Manager-rank executive at the corporate office, with support from DGMs.<\/li>\n<li>Extended arm in each zonal office through existing Business Development Offices.<\/li>\n<\/ul>\n<\/li>\n<li><strong>FY24-25 Guidance<\/strong>\n<ul>\n<li>Advances growth: 16-20%.<\/li>\n<li>Deposit growth: 12-15%.<\/li>\n<li>CASA ratio: Above 50%.<\/li>\n<li>RAM to Corporate ratio: 60:40.<\/li>\n<li>Net Interest Income (NII) growth: Around 20%.<\/li>\n<li>Net Interest Margin (NIM): 3.7-3.9%<\/li>\n<li>Cost-to-Income ratio: Below 40%<\/li>\n<li>Provision Coverage Ratio (PCR): Around 98%<\/li>\n<li>Capital Adequacy Ratio (CRAR): 16-17%<\/li>\n<\/ul>\n<\/li>\n<li><strong>Capital Raising Plans<\/strong>\n<ul>\n<li>Plan to raise around Rs. 7,500 crores of capital over the next two years.<\/li>\n<li>Aimed at reducing government shareholding below 75% to comply with SEBI&#8217;s minimum public shareholding norms.<\/li>\n<li>Capital raise may happen in 2-3 tranches due to the large amount.<\/li>\n<li>Capital to be used for credit growth and maintaining CRAR guidance of 16-17%.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Data Sharing and Consortium Lending<\/strong>\n<ul>\n<li>Data sharing platforms like Credit Information Companies (CICs) and NESL (Information Utility) provide borrower details.<\/li>\n<li>Data aggregators also provide insights into borrowers&#8217; financial health and defaults.<\/li>\n<li>Consortium lending facilitates continuous interaction and information sharing among lenders.<\/li>\n<li>Drawing power determined by the lead bank in consortium lending.<\/li>\n<li>Improved data availability and utilization enable better risk assessment and prevention of past mistakes.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Growth Drivers<\/strong>\n<ul>\n<li>Branch expansion (750 new branches in last 3 years, reaching 2,500+ branches currently).<\/li>\n<li>On average, Rs. 30 crores of business added by each new branch within one year.<\/li>\n<li>Further plans to open 220-250 new branches in the coming year.<\/li>\n<li>Presence in areas with banking activities and growth potential.<\/li>\n<li>Focus on four pillars: people (training and reskilling), processes (35 RPAs implemented), technology, and data cleanliness.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Focus Areas<\/strong>\n<ul>\n<li>Building competitive advantages through various modes and initiatives.<\/li>\n<li>Compliance with regulatory expectations for all new initiatives and businesses.<\/li>\n<li>Identifying and exploring new areas for improvement and growth opportunities.<\/li>\n<\/ul>\n<\/li>\n<li><strong>CASA Strategy<\/strong>\n<ul>\n<li>Maintaining and strengthening CASA (Current Account Savings Account) share, currently around 48-49%.<\/li>\n<li>Guidance to keep CASA ratio above 50%.<\/li>\n<li>Ring-fencing existing CASA relationships and exploring new areas.<\/li>\n<li>New vertical established to deepen relationships with top clients and offer bouquet of services.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Technology Expenditure<\/strong>\n<ul>\n<li>IT spending budget increased from Rs. 800 crores to Rs. 1,200 crores this year.<\/li>\n<li>Aim to increase share of digital business from 5% to 20% in the next 2-3 years.<\/li>\n<li>Upgrades to data centers, switches (EFT, UPI, FI), and cyber security measures.<\/li>\n<li>Expenditure aligned with the bank&#8217;s aspiration for progress and digitalization.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Capital Raising Plans<\/strong>\n<ul>\n<li>Plans to raise equity capital to reduce government stake below 75% (SEBI norms).<\/li>\n<li>No immediate pressing need, but capital required for growth objectives and maintaining CRAR guidance (16-17%).<\/li>\n<li>Internal approvals and regulatory permissions to be obtained shortly.<\/li>\n<li>Equity raise to happen at an opportune time, potentially through multiple tranches.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from Bank of Maharashtra Ltd (MAHABANK) Q4 FY24 Earnings Concall Credit Underwriting Implemented minimum benchmark credit scores for loan underwriting. Established criteria to build a healthy loan book. Set up a centralized underwriting cell at the head office for large and mid-corporate projects. Ensured quick turnaround time for mid and large corporate proposals. [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":154818,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,1],"tags":[151,10169,1792],"class_list":["post-160644","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-finance-stocks","tag-banking","tag-earnings","tag-financial-services"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":163069,"url":"https:\/\/alphastreet.com\/india\/bank-of-maharashtra-ltd-q1-fy25-earnings-conference-call-insights\/","url_meta":{"origin":160644,"position":0},"title":"Bank of Maharashtra Ltd Q1 FY25 Earnings Conference Call Insights","author":"Praveen","date":"July 15, 2024","format":false,"excerpt":"Key highlights from Bank of Maharashtra Ltd (MAHABANK) Q1 FY25 Earnings Concall Business Growth Total business saw 13.5% year-over-year growth, reaching INR4.76 lakh crores. 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Retail growth driven by healthy disbursements in vehicle and microfinance businesses. Corporate book also\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":157918,"url":"https:\/\/alphastreet.com\/india\/idfc-first-bank-limited-q3-fy24-earnings-conference-call-insights\/","url_meta":{"origin":160644,"position":3},"title":"IDFC First Bank Limited Q3 FY24 Earnings Conference Call Insights","author":"Praveen","date":"January 22, 2024","format":false,"excerpt":"Key highlights from IDFC First Bank Limited (IDFCFIRSTB) Q3 FY24 Earnings Concall Deposit Growth Retail deposits grew from INR10,400 crores to INR1,39,431 crores in 5 years. 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