Bank Of Maharashtra · NSE:MAHABANK
Bank Of Maharashtra — Investor Presentation (May 2023)
41 slides from Bank Of Maharashtra's investor presentation, May 17, 2023
Slide 1: Stock exchange intimation letter on investor meet
AX1/ISD/STEX/1/2023-24 Date: 17th May, 2023 The General Manager, The Vice President, BSE Limited Listing Department, Corporate Relationships Department, National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Corporate Relationships Department, Dalal Street, Exchange Plaza, Plot No. C/1,
Slide 2: Investor Presentation May 2023
Investor Presentation May 2023 www.bankofmaharashtra.in /mahabank
Slide 3: Disclaimer
Disclaimer This presentation has been prepared for general information purposes in respect of Bank of Maharashtra (“Bank”) together with its subsidiary and associate, as applicable (together, with the Bank, the “Group”) only, without regard to any specific objectives, suitability, financial situatio
Slide 4: Disclaimer
Disclaimer This presentation includes certain industry data and projections that have been obtained from industry publications and surveys. Industry publications and surveys and forecasts generally state that the information contained therein has been obtained from sources believed to be reliable, b
Slide 5: Table of Contents
Table of Contents 1 Bank of Maharashtra Overview 6 2 Key Financial Highlights 9 3 Key Growth Strategies 33 4 Annexures 35 Strictly Private and Confidential © 2023 Bank of Maharashtra. All Rights Reserved 4
Slide 6: Abbreviations
Abbreviations Abbreviation Meaning AFS Available for Sale CASA Current Account & Savings Account CRAR Capital to Risk Weighted Asset Ratio GNPA Gross Non-Performing Asset HFT Held for Trading HQLA High Quality Liquid Asset LCR Liquidity Coverage Ratio LAD Loan against Deposit LAP Loan against Proper
Slide 7: Bank of Maharashtra – An Overview
Bank of Maharashtra – An Overview Strictly Private and Confidential
Slide 8: Overview
Overview Shareholding Pattern Brief Snapshot Credit Rating (As of Mar`23) ❖ Founded in 1935, Bank of Maharashtra (“BoM”) has a legacy of more than Long Term Ratings Domestic 88 years (Tier II Bonds) Companies; 0.25% Individuals; 5.05% Mutual funds/ ❖ BoM has a customer base of approximately 2.96 Cro
Slide 9: Robust Banking Franchise
Robust Banking Franchise 01 Consistent improvement in financial performance 02 A relatively stable and granular RAM portfolio more than half of the asset base (57% of gross advances)1 BoM has achieved financial turnaround over the past 2 years. results in a diversified asset base with a focus on the
Slide 10: Key Financial Highlights
Key Financial Highlights Strictly Private and Confidential
Slide 11: Business Performance
Business Performance Business Expansion Pace Continues Headroom to Further Expand CD Ratio One of the Highest CASA Share among Banks 2,50,000 25.0 74.81 57.85 21.23 53.99 53.38 19.84 66.85 2,00,000 20.0 61.87 14.98 1,50,000 15.0 1,00,000 10.0 50,000 5.0 - 0.0 Mar'21 Mar'22 Mar'23 Mar'21 Mar'22 Mar'2
Slide 12: Diversified Credit Portfolio
Diversified Credit Portfolio Domestic Gross Advances – Growth driven by Corporate & MSME Advances Profile % Yield on Advances % Mar` 23 ( ₹ In Crore ) 1,75,120 8.04 YoY Particulars 19 1,35,240 Growth* % 43 1,07,654 43 40 Retail 23% 7.48 13 37 7.29 Agriculture 23% 57 63 60 MSME 27% 25 Corporate & Oth
Slide 13: Stable Ratings Profile despite Challenging Environment
Stable Ratings Profile despite Challenging Environment External Rating-wise Advances – Above ₹ 25Cr ( ₹ In Crore ) Mar`22 Mar`23 Particulars No. of Borrowers O/s Amount % of O/s Amount No. of Borrowers O/s Amount % of O/s Amount Total Eligible Exposure for External 382 60,875 100 439 84,148 100 Rati
Slide 14: Asset Quality
Asset Quality Strictly Private and Confidential
Slide 15: Asset Quality – One of the lowest stressed assets in the industry
Asset Quality – One of the lowest stressed assets in the industry Rising Trend in Standard Advances Unprovided NPAs Pose Insignificant Risk to Networth 96.06 97.53 31.73 92.77 12.54 3.41 Mar'21 Mar'22 Mar'23 Mar'21 Mar'22 Mar'23 Standard Adv. / Total Adv. (%) NNPA/ Networth (%) Standard Restructured
Slide 16: Asset Quality – Decline in Delinquency Rate and Credit Cost
Asset Quality – Decline in Delinquency Rate and Credit Cost A Declining Trend in Delinquency Ratio Lower Delinquency Rate Leads to Lower Credit Cost 2.58 2.06 1.91 2.05 1.29 1.24 Mar'21 Mar'22 Mar'23 Mar'21 Mar'22 Mar'23 Provision Coverage Ratios Improve Accompanied by Fall in Net Non-Performing Ass
Slide 17: Asset Quality – Sectoral & Segmental NPA Position
Asset Quality – Sectoral & Segmental NPA Position Retail Sector - NPA ( ₹ In Crore ) MSME Sector - NPA ((₹₹ In Crore) ) In Crore Mar`23 Mar`23 Particulars Particulars Advances Sector NPA Sector NPA % Advances Sector NPA Sector NPA % Total Retail Credit 43,433 294 0.68 Total MSME Credit 33,244 1,274
Slide 18: Asset Quality – Industrial Exposures Above 1.0%
Asset Quality – Industrial Exposures Above 1.0% Funded Exposure to select industries (More than 1.0%)- Mar`23 Chemicals & Chemical Products 1.09% Vehicle Loans Top 3 selected sectors are 1.16% Agriculture & Allied activities All Engineering 1.21% Housing and Infrastructure Education Top 1.28% 3 sele
Slide 19: Restructuring Advances Well Contained
Restructuring Advances Well Contained ( ₹ In Crore ) Sector-wise COVID Restructuring under RP 1.0 as on Mar’23 RP Invoked RP Implemented (as on Mar’22) RP Implemented (as on Mar’23) % to % to % to Total % to Total Std. Advance respective respective Sector Amount Std Amount Std. as on Mar’23 sector s
Slide 20: A Balanced Approach to Treasury Operations
A Balanced Approach to Treasury Operations Particulars ( ₹ In Crore ) Mar`21 Mar`22 Mar`23 Interest on Investments 4,153 4,385 4,267 Yield on investments 6.72 % 6.24 % 6.11 % Gross Investments 68,647 69,093 69,215 (SLR/ Non SLR %) 76 / 24 % 79 / 21 % 81 / 19 % M-Duration (AFS+HFT/ Total Portfolio) 2
Slide 21: Diversified and Growing Liability Profile
Diversified and Growing Liability Profile Healthy Growth in Deposits Deposit Composition ( ₹ In Crore ) 2,34,083 Mar`22 Mar`23 2,02,294 14% 12% 1,74,006 47 42 42% 46 47% 41% 53 44% 58 54 Mar'21 Mar'22 Mar'23 CASA (%) Term Deposits (%) Total Deposits Current Account Saving Account Term Deposits Cost
Slide 22: Consistent improvement in Profitability metrics
Consistent improvement in Profitability metrics Net Interest Income & NIM Operating Profit Net Profit ( ₹ In Crore ) ( ₹ In Crore ) ( ₹ In Crore ) 6,099 10,000 3.56 4 2,602 3.15 7,741 8,000 2.84 4,848 3 6,044 3,960 6,000 4,897 2 4,000 1,152 1 2,000 550 0 0 Mar'21 Mar'22 Mar'23 Net Intrest Income NIM
Slide 23: Capital Adequacy
Capital Adequacy Strictly Private and Confidential
Slide 24: Improvement in capital consumption and RoRWAs
Improvement in capital consumption rate and RoRWAs BoM has Stable Capital Ratios % 20.0 18.14 10 Bank has raised Rs. 348 16.48 Crore, Tier-2 Bond from the market during Dec`22 16.0 14.49 14.25 8 quarter. 12.38 10.98 12.0 6 4.10 3.89 3.51 Bank has raised Rs. 880 8.0 4 Crore, Tier-1 Bond from the mark
Slide 25: Liquidity
Liquidity Strictly Private and Confidential
Slide 26: Liquidity – A fine balancing act on liquidity management
Liquidity – A fine balancing act on liquidity management Trimming Excess HQLA Liquid Asset Composition Trending in-line with HQLA 3,00,000 35.00 50 47 10.00 28.79 44 2,50,000 30.00 23.71 40 37 8.00 25.00 8.64 2,00,000 17.50 20.00 30 6.92 6.00 1,50,000 6.58 15.00 20 4.00 1,00,000 10.00 50,000 10 2.00
Slide 27: Technology & Digital Initiatives
Technology & Digital Initiatives Strictly Private and Confidential
Slide 28: Leveraging IT & Technology to build a Digital Bank
Leveraging IT & Technology to build a Digital Bank Digital initiatives of Bank of Maharashtra Tab Banking & White label WhatsApp / Door Step Online Saving Payment FASTag QUICK pay Online LAD Chatbot Banking Account Gateway Opening 1 2 3 4 5 6 7 ATM Card Base (Lakhs.) Digital transaction (%) UPI/BHIM
Slide 29: Digital Initiatives to move to the next leap
Digital Initiatives to move to the next leap ✓ Implemented ✓ TIN 2.0 ✓ Bank has integrated ✓ Started Online Forex ✓ Offered digital lending Loan Lifecycle Implemented Account Aggregator Remittance through facility with tie up Management under [AA] & is now LIVE on Internet Banking arrangements with
Slide 30: Expanding Footprints across India
Expanding Footprints across India BoM's Population-wise Mar`21 Mar’`22 Mar’23 branches Metro 24% 24% 24% Urban 19% 20% 22% Semi Urban 23% 25% 27% Rural 34% 30% 28% Total Branches 1,964 2,022 2,203 Human Resource Strength* Employee Age Profile (in Years) Staff Qualification Nos. B.E./ B.Tech / M.Tech
Slide 31: Management Team
Management Team Strictly Private and Confidential
Slide 32: Our Experienced Board Members
Our Experienced Board Members He holds a bachelor’s degree in Science from University of Kerala and a MBA. Having vast experience in Regulation and Supervision of Bank & master’s degree in Business Administration from Indira Gandhi National Financial Institutions with Reserve Bank of India. He serve
Slide 33: Recent Awards
Recent Awards BFSI Suvidha (May 2023) Bagged prestigious the BFSI Finnoviti (April 2023) Technology Awards 2023 by Bagged 'Finnoviti 2023 January 2023 Indian Express, for our online Award' by Banking Frontier Best PSU Bank (other than portal "Suvidha", the for our in-house Developed large) Award at
Slide 34: Key Growth Strategies
Key Growth Strategies Strictly Private and Confidential
Slide 35: Our Growth Strategies
Our Growth Strategies Improvement in credit quality through business and technological integration Emphasis on Retail, Agriculture, and MSME segments through collaboration (Co-lending partnership) Growth of core retail business Increase in share of wallet / No. of products per customer Strategize an
Slide 36: Annexures
Annexures Strictly Private and Confidential
Slide 37: P & L Highlights
P & L Highlights ( ₹ In Crore ) QUARTER ENDED (AUDITED) YEAR ENDED (AUDITED) PARTICULARS Mar`22 Mar`23 Y-O-Y (%) Mar`22 Mar`23 Y-O-Y (%) Total Income 3,949 5,317 35 15,672 18,179 16 Interest Income 3,426 4,495 31 13,019 15,898 22 Non-Interest Income 522 822 57 2,652 2,280 (14) Total Expenses 2,770 3
Slide 38: Interest and Non-Interest Income
Interest and Non-Interest Income ( ₹ In Crore ) QUARTER ENDED (AUDITED) YEAR ENDED (AUDITED) Particulars Mar`22 Mar`23 Y-O-Y (%) Mar`22 Mar`23 Y-O-Y (%) Interest on Advances 2,232 3,368 51 8,232 11,486 40 Interest on Investment 1,075 1,097 2 4,385 4,267 (3) Other Interest Income 119 30 (75) 403 146
Slide 39: Provisions – Credit cost provision trending down
Provisions – Credit cost provision trending down ( ₹ In Crore ) QUARTER ENDED (AUDITED) YEAR ENDED (AUDITED) PARTICULARS Mar`22 Mar`23 Mar`22 Mar`23 Prov for Non-Performing Assets 568 545 2,578 2,253 Prov for Standard/Restructured Assets (118) 280 302 (114) Prov for Non-performing Investment 8 167 1
Slide 40: Balance Sheet Highlights
Balance Sheet Highlights ( ₹ In Crore ) ASSETS YEAR ENDED (AUDITED) Mar`21 Mar`22 Mar`23 Cash & Balance with RBI 12,882 19,722 18,508 Balances with Bank & Call Money 59 194 21 Total Investments (Net of Depreciation & Provision) 68,112 68,590 68,867 Total Advances (Net of Provision) 1,02,405 1,31,170
Slide 41: Thank You
Thank You www.bankofmaharashtra.in /mahabank
Bank of Maharashtra — Investor Presentation (May 2023) on 6ix