Stockrabit · Analysts
Questions across 5 calls

Nidhu Saxena

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Bank of Maharashtra

Bank of Maharashtra CC-Apr26.pdf · 2026-04-20
Thank you, and good afternoon to all, and thank you all for joining this con call. And I'm happy to share that we have seen yet another good year for the bank despite whatever, I should say, challenges, geopolitical uncertainties and a real war for deposit s also. But bank has typically shared 18 to 19 parameters for which the guidance was shared at the beginning of the year. We have done this last year also. And I'm happy to share that all the guidance numbers across the growth parameters, across the asset quality, across the profitability metrics, across the capital adequacy, efficiency ratios, we have been able to meet all the guidance and at some of the pla ces with a decent margin above the guidance that was shared in the beginning of the year. To just quickly -- the high-level pointers. Total business this year has grown at the rate of 17% and within which advances grew at 22%. Total deposits grew at 14%, within which our focus, which had always remained on CASA, CASA grew at a double -digit 12%. And our CASA ratio also was maintained above the 50%. We closed the year with 52.51% CASA. Term deposit also saw growth of 16%. The asset side, the RAM had good growth, within which retail was growing at 32%. The major focus products that supported this growth. Home loans grew at 29%. Vehicle and gold, which were marked as focused products to grow for this year grew at Y -o-Y 56% and Y -o-Y 53%, respectively. Agriculture and MSME portfolios also saw a double -digit growth. MSME grew at 11%. Agri grew at 13%. While we've been doing both these portfolios at 15% to 16%, but we had initiated a conscious strategic part on our side to do a rebalancing in the portfolio. And while in the first -- Q1, Q2, you would have seen that the growth had gone down to single digit -- low single digit, I would say, but we've closed the year with double -digit growth, and the process to grow quality agri and MSME has onboarded new fresh business in that segment in that portfolio, is going on for this year. It will continue also. And we will soon regain our 15% to 16% retail and agri -- sorry, agri and MSME growth in the bank. Corporate also, we have been able to find areas which we mark as bullish areas for the bank to go. Sectors like green, clean energy, renewable sector, we have funded in a major way. And we have done infra loans. We have done data centers. We have done a lo t of areas where there is a lot of emphasis and support system, which is coming from the government of India and where we are seeing that huge scope and potential to grow is there not only for the current FY, but for the years to come. So we had marked these sectors as bullish sectors. And through our quick acquisition, quick disposal, we have even grown our corporate book Y-o-Y at 22%. RAM corporate share was within the guidance. It was 63% in favor of RAM, 37% was corporate. The asset quality has also been contained well -- maintained well, and there is improvement in both GNPA and NNPA, where we have seen improvement both in absolute terms and percentage terms as well. The gross NPA has reached -- percentage come down to 1.45% with a 29 bps improvement year -on- year. Net NPA came down to 0.13%, 5 bps year -on-year. And both were well within the guidance number. Recovery in the bank this year also had seen a good performance and within which our write- off recovery book, which is almost marked as a focus area to perform, around INR20,000 crores -- INR21,000 crores of write -off book, and we had planned that annually, we should be recovering between INR1,200 crores to INR1,500 crores for the next 5 years. And the band, which was kept a big band because out of INR25,000 crores -- INR20,000 crores, around INR7,500 crores were in NCLT where bank would do a process. But at times, you're not very sure whether the recovery will fall in a particular quarter or it may slip to the other because of the some delays that may happen in the NCLT. So we had a band of INR1,200 crores to INR1,500 crores, but I'm happy to share that for the last 2 years, a lot of traction is seen. Last year, against FY22 number of INR600-odd crores of recovery in written -off book, we did INR1,375 crores. This year, we have even surpassed that number. It is INR1,423 crores of recovery in the write-off book. So I think our strategy is playing well. We are able to see resolutions and recovery in the write-off book. And we will continue to focus this segment. We have a big, I would say, gold mine where we -- if we are resolving, we are contributing also to the OP of the bank. The stress has been well managed. The overall stress saw an improvement of 49 bps. It has come down to 2.93%, within which SMA -1 plus 2 is 1.39%, which also improved by 61 bps. As a result of this fresh growth and growth where we have not mindlessly grown the top line but have remained conscious about the bottom line -- for every transaction level, we have been very consciously doing that. Our profitability also has grown in a very favorable way, I would say. OP, operating profit, INR10,826 crores, grew Y -o-Y at 16%. Net profit with INR7,019 crores, grew Y -o-Y at 27%. The profitability metrics of ROA, ROE, NIM, they also were well above our guidance that we shared beginning of the year. Against a NIM guidance of 3.75% at the beginning of the year, we closed the year with a NIM of 3.91%. If I have to share Q1, Q2, Q3, Q4. Q1, the NIM was 3.95%. It went down to 3.85%, 10 bps in quarter 2. We have seen improvement thereafter, which I have been sharing, that probably the third and the fourth quarter, we will see no further contraction. We may see an improvement in our NIM, and that's -- despite the rate cuts during the FY, we have seen that we have regained our NIM at 3.95%. Quarter 4 stand-alone NIM was 3.95%. Full year NIM was 3.91%. Our guidance has been 3.75%. ROA, quarter 4, 1.97%, so barely touching the 2%. But for the full year, our ROA has been 1.86 against the guidance of 1.75. Seeing this good traction, while I will share also the guidance number of important parameters, we are ready with those guidance numbers. But I can share, for ROA, we have upped our guidance over the last year. We have said that guidance for this year ROA will be 1.80. Going over to the ROE. Q4 ROE, 26.61%. Full year ROE is 23.19%. Our net interest income also has grown handsomely, 17% Y-o-Y growth. We have contained our cost to income below our guidance of 40%, and it closed with 37.08%. Yield on advances has been mainta ined at 9.05%. Cost of funds and cost of deposits both have seen a reduction. Cost of funds at 4.15%, has reduced 7 bps year -on-year. Cost of deposits has improved by 14 bps year-on-year at 4.52%. Capital adequacy, we are adequately capitalized. And with this full year profitability now also added, CET1 is standing at 14.59%. CRAR is at 18.36%. Government of India Holding during the FY, with the OFS issuance by Government of India, has come below th e 75%. We are an MPS compliant bank now. And Government of India Holding stands at 73.60%. Participation from FIIs and DIIs have gradually been increasing over the past 2 years, and we have been very, very particular about our engagements with the investors, both foreign and domestic. Just to give you a number, the FII shareholding has gone up f rom 0.39% in 2023 to 5.8%. Likewise, DII, excluding the LIC and the bank treasuries, has gone up from 0.24% to 6.86%. I think I will take a pause. These are the broad numbers. The presentations are shared with you. I will take a pause to take questions. And while we go ahead with those, maybe give some more additional inputs from our side.
So Ajmeraji, you're right when you're saying that there is a crisis ahead of us, but we also know that we are yet to see the end of the crisis. It will be very difficult to say what will be the full impact because if this kind of crisis will stretch and if it will prolong, we would see more pain coming in, is what the sense tells us. But we are very closely monitoring, watching the developments, and I'm sure at the highest level in the government and the regulator, their engagements are on to see how things pan. And at the bank level, I would say that if you -- since you mentioned about the MSME portfolio, so far, March, there is no element of stress or sign of any worry. In fact, my MSME NPA number has actually come down, has come down to 1.54%, which is an improvement. But having said that, yes, with headwinds like Brent crude more than $115, anything above $100 will bring pain. We may see inflation if this is getting prolonged for long. We all understand the rupee-dollar and how the currency depreciated will have its own impact. So we are watching it very closely. And you're also right to say that March will not be where the impact. We may see the impact in -- not Q1. By Q2, you will see the fallout of the West Asia crisis. But as I again said, we are still to see the end. So we can only hope that the crisis resolve s and what damage must have happened, the impact , how fast it can be replaced is also needs to be seen. So you may see in following quarters, the impact of the damage, which has happened, it is not that the war ends and everything goes back -- appears normal because something gets disturbed, the crude supply where some actions are there, it hit. So to replace those damages will take time. And so one may see, but we'll need to watch, and we are completely mindful of the impact.
Bank of Maharashtra CC-Sep25.pdf · 2025-10-14
Right. If you see our deposit growth for this quarter, year-on-year, we have grown by 12.12%, but within which CASA has grown at almost 15%, so, focus clearly stands out to have more and more low-cost deposit in the system. The high-cost bulk wherever we have identified, which is sitting in our deposit book, we have been very consciously not renewing the bulk high -cost deposits. What data we will share is that our bulk deposits have seen a 9.9% de -growth. Deposits have grown majorly from the CASA, which has grown at 15%, and that's how the total story is growing at 12%.
Our focus is to maintain our deposit growth majorly through the low -cost element. We have done a lot of efforts to see that both the components, the core CASA that is coming from our branches and the institutional CASA, which we focus from institutions, government departments, ministries, corporates. We have a separate vertical that takes care of that. The two objectives are strategically achieved through a lot of strategies that we have put in place. If I have to tell you, in terms of business that is happening in branches, we have done a lot of product improvements, we have introduced products for some segments where we were missing. Today, we have a complete basket of products that is taking care of the professionals, the HNIs, the NRIs, the business community and so current savings, salaried, non -salaried, we have a complete basket of products. We have also looked at the process part, whether the process is a healthy seamless onboarding of clients to the bank's business and once they are on boarded, whether they are able to seamlessly transact. Our mobile banking application, which we have revamped , we have not just upgraded our existing mobile application by introducing a new version, but we have revamped the version, and this is moving faster. The concept of giving ease of doing business for a client that they are able to transact on this mobile application with minimum number of clicks has been our theories in building, developing this mobile banking application. Someone should experience it to understand what I am indicating. A lot of technology is helping in this segment, the individual core segment that is happening in branches. For the institutional segment, we have started with putting up a new business vertical, calling it as new business customer acquisition vertical headed by a lady General Manager. Having a complete structure with her, the only two KRA is to reach out to institutions and look at their banking needs and try to get institutional deposits from them. Bringing some value also to the institutional clients and understanding their specific needs and also offering some technology- based solutions there , so, these two verticals are independently working. As I said there is a core business of CASA, there is an institutional business of CASA and we are trying to address both these components with a different strategy that is working for us. We are trying to see that we maintain this low -cost element in our deposit profile, which is a big enabler, contributor to our bottom line. The system would have seen the average CASA at some point of time, which was in the industry 43%, 44%, came down to almost 37%, but we have been able to maintain our guidance to maintain it above 50%. That is one. Second, a lot of our experience is that with this rate cuts in the deposit side also, clients are also parking their money from the CASA to creating term deposits with us.
Bank of Maharashtra CC-Jun25.pdf · 2025-07-15
Rohan, if you see, my last year guidance was to have a NIM of 3.75%. If you see last year, Q1, Q2, Q3, Q4 we were already having 3.97%, 3.98%, 3.98%, and we closed the year with a 4% NIM, but if you look at the guidance because this fact of rate cuts was well known and on expected lines, so despite doing 3.98%, 4% kind of number, my NIM guidance for this year is conservative again at 3.75%. If you look at NIM that we have achieved in the Q1, with the repo cut, my 40% of portfolio is linked to repo loans. Now I have to mandatorily pass the benefit which we have done immediately on the entire portfolio, the calculations were there, we were expecting around 18 to 19 bps as per the entire RBI rate cut that had to be passed on the 40% loan book. With regards to other strategies that we have put in place, I would just like to mention those to see that my NIM contraction is not to that extent or how we can protect it. If you see my cost of deposits, it has actually come down sequentially, and how it has happened is during the last 10- 12 months, we have very consciously not gone for high -cost bulk deposits. Very consciously and strategically, we have not taken the renewal with the bulk deposit when it is coming for renewal and we have focused entirely on the low-cost. My CASA share when we closed the year is 53%. We are keeping t he guidance to maintain CASA ratio above 50%, and if you see my Q1 also, it is above 50% , so this is one big enabler. My average CASA has seen an improvement of 14 bps, 14% point year-on-year, so straightaway the 18 bps of reduction in repo loans have been offset with the high CASA and a very conscious strategy of not depending on high-cost bulk to fuel my growth. That's how we have seen, whereas probably the industry may see that kind of contraction, but we have seen that my NIM has come down to 3.95%. We also still have some leftover portfolios. My MCLR book is 55%. Now that 55% in the last 12 months, we had gone for MCLR raise by 5-10 bps, and over the 12 months, almost 35 bps of MCLR raise happened. There is still one or two more quarters where some accounts resets will happen, so these two factors put together, low cost deposit, that kitty of more than 50% and consciously doing away with high-cost bulk, and this little bit of MCLR resetting remaining in accounts or happening in phases, has actually cushioned my NIM contraction. I am still mindful that maybe we can see with the benign inflation number, retail inflation is 2 point something, and we may see further rate cuts. My guidance, if you look at is 3.75% for the full year, and I feel the kind of consciousness in terms of doing business, is growing fine, but growth with profitability, is the kind of focus that we are having and we will definitely achieve the guidance for this year as well.
Yield on advance has been 9.28%, which is a healthy yield, and I'll tell you a couple of things have worked for us to get this kind of profitability numbers. We are very consciously on the profitability and the pricing aspect in every transaction that we are doing. We have a T-bill link rate product with us, Board-approved where we could have lent to central PSUs, AAA corporates and build up our top line , but whatever exposure we had that we actually consciously had in product is there. Today, we don't have any exposure in that. With regards to the segments, not that we are not mindful of quality , it is all investment grade which we are looking at, but consciously we are not so willing to look at any business, or any new customer acquisition, if it is not impacting our bottom line favourably. Sometimes we will match out of sheer competition, but we also then try to look at how the relationship can be made profitable. If it is a vanilla credit, that relationship we are having, can we have some ancillary business from that corporate, some of their payment collection requirements, can that be routed through us, some fee-based income can come, some payroll business can come. We are very mindful on the profitability with every customer. At transaction level, we have tried to drive this point in the field function also. An essential part of my review now from this quarter, 17-18, we have acquired some software, which helps me to let the branch see how profitably they are operating. If they are growing , fine, but it's not only the top line in this FY that we are going to review, we will see that on the growth at the branch, how the profitability has behaved. Bringing in that kind of consciousness in the field functionaries I'm sure people will be more conscious at the ground level as well, in terms of how they look at offering concessions, special rates, can they compensate any finer rate with some ancillary business, so on and so forth , so this is how we are looking at this issue. Yes, with more rate cuts that can happen, my 40% loan book immediately gets repriced. We have kept, I think, a conservative guidance of 3.75%, despite even maintaining it above 3.95% for last 4 quarters which again is a very good number. With 3.75%, we again lead the industry. The next number could be, 3.5% if I'm not wrong. That's how we differentiate ourselves in this NIM metric also.
Bank of Maharashtra CC-Mar25.pdf · 2025-04-25
I did mention about it. Let me further elaborate. As I said, we have 500-plus branches and the new business that is coming into the bank, is mostly from my existing set of branches and these new branches, which have been identified to be opened in potential growth centres. They are contributing in a significant manner to the bank's business. The focus in the last full year, in fact, for the last 3 quarters, the way we are reviewing our zones, the field functionaries, it was amply clear that the bulk components of business are handled by the head office, corporate office centrally, but the zones in the field are ensuring that each of their branches are functioning at their optimum level and getting both the assets and the liability business that is available in the periphery or in the geography of the new branch or the existing branch that is opened. With that clear focus given to our feel functionaries in the review, I will share a small data with you, which will indicate that how the business that has been growing in the bank has been more from the branches, which is the core and the sustainable one. Taking, for example, our NBFC relationships and the pool buyout and direct assignment transactions. In the previous years, we have been experiencing some year -on-year growth in this contribution coming from the tie-ups with the NBFC, whether through pool or direct assignment transactions. FY '25 has been the first year where there has been de-growth in pool buyer transaction by minus 7%. Despite this, the advance, the credit has grown by almost 18% in the bank. That strategy has worked and the branches have been given a lot of enablers from head office to help them source new business. As regards to your question on DSA, we are very conscious and considering about the quality of the loan book that is going to get created. We are mindful of the quality and the underwriting benchmark standards. In fact, in the last year, we have strengthened our underwriting standards and have said that below a point of, say, credit score for an individual segmented borrower, there is no underwriting permitted in the entire bank. While that was a tough call, we had seen that the right enablers gone from head office, the growth has not decreased. We are growing and maintained the growth and this growth rate has only improved, but the satisfactory part of it is that the growth and the quality of loan growth has been insured with the stricter underwriting standard. To answer in one line, there are no aggressive DSAs and acquisition strategies. It is my own core branches where we have complete control and asset quality is of supreme importance. I don't mind achieving a level of business in, say, one or two more quarters, if I take, but there is definitely, no compromise on the asset quality at any point of time.
From my loan book, 37% portfolio is linked to EBLR and 57%-odd is what is linked to MCLR. You would see a distinctive factor that there has been two rate cuts. I'm not operating out of the system. I also would be affected going forward. I'm sure the impact is going to be felt by us, but the way we have managed our business mix, and there has not been the full quarter impact for the large rate cut that we have seen , but if you see that NIM in our case, actually, for the las t three quarters, the number was 3.97%, 3.98%, 3.99%, and we have crossed to 4.01% for Q4. We have always been mindful of not only the quality, but also of the pricing aspect. The top line growth has been very consciously driven in the bank to see how it is impacting my bottom line. ` We were seeing that in some of the businesses there is no contribution to the bottom line, even sometimes due to competition where we are we are required to give some concessions, are we able to keep that relationship profitable by taking some ancillary business from the same set of borrowers. If those were not happening, some segments we have not taken exposure or exited. Like, for example, we have a Board approved product where a t T-bill rate we could have built some portfolio, but we decided that whate ver exposure we had, that T -bill rate products today as of March '25, the exposure is not there. It is zero. That's how we have been driving business consciously that not only top line, but bottom line as well and also how each and every ratio is maintained in the bank quarter-on-quarter.
Bank of Maharashtra CC-Dec24.pdf · 2025-01-16
Good evening to you. If you are intending to know about the corporate CAPEX, private CAPEX cycle, those things are yet to happen. When I look at my Bank, we have identified certain sectors where we feel we should increase our presence, and where there are a lot of opportunities present so, in Infrastructure, in Green Renewable Energy, taking up LRD proposals, Healthcare, Pharma, we have very consciously looked at these sectors, and we have also been growing our book, and that's how you see that year -on-year, we have grown. I think a lot of opportunities are also coming. I will ask ED also to add.
If you ask me, in my loan book, 50 -55% of loan book is priced to MCLR , and around 37% is linked to repo so, whenever the rate cut that we have been hearing is going to happen, this portion of the book is going to get repriced immediately so, that headwind would remain, but when we compare ourselves with other lenders in the industry, we see that our share in the MCLR is a little higher so, to that extent, the impact is not going to be, and we have also been able to raise our MCLR, and that's how we have been able to increase our interest income also during this past couple of quarters.