Bank Of Maharashtra · NSE:MAHABANK
Bank Of Maharashtra — Investor Presentation (2017)
27 slides from Bank Of Maharashtra's investor presentation, 2017
Slide 1: Bank of Maharashtra Investor Presentation
Bank of Maharashtra Investor Presentation
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), has been prepared by Bank of Maharashtra (the “Company” or “BoM”), solely for information purposes and does not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall no
Slide 3: Table of Contents
Table of Contents Bank of Maharashtra : An Introduction Key Summary Financials Overview 2
Slide 4: Bank of Maharashtra: An Introduction
Bank of Maharashtra: An Introduction Snapshot Financials ● Bank of Maharashtra (“BoM”) is a public sector bank founded in the INR bn FY15 FY16 FY17 Q1FY18 Q2FY18 year 1935 and based in Pune, Maharashtra Total Income 136.7 140.7 135.7 32.1 33.0 ● It offers diversified products and services to corpora
Slide 5: Key Summary
Key Summary Wide Distribution Network with pan-India presence Increasing focus on retail loans Focused approach towards retail distribution Healthy and diversified liability profile Turnaround of non performing assets Strategy for improving asset quality and recovery Comfortable Capitalization Stron
Slide 6: Wide Distribution Network with pan India presence
Wide Distribution Network with pan India presence Pan India Branch Network Branch & ATM Network Branches ATMs 1,920 1,895 1,897 1,897 2 1,900 1,880 1,878 1,882 1,883 1,880 31 5 1,861 39 1,860 1,849 1,850 5 1 1,840 30 1 1,820 39 82 10 1 1,800 13 FY15 FY16 FY17 Q1FY18 Q2FY18 1 68 7 1 144 32 1 Branches
Slide 7: Increasing focus on retail loan products
Increasing focus on retail loan products Total Advances Retail Loans INR bn Large Corp & Others MSE Agriculture Retail Medium INR bn Housing Education Vehicle Others Total Retail 1,012.1 1,112.4 1,015.4 971.0 929.7 Advances 118.2 125.7 157.9 161.2 133.0 Advances 1,200 180 19.0 160 7.0 33.2 125.7 14.
Slide 8: Focused approach towards retail distribution
Focused approach towards retail distribution Bank has developed strong client base and robust relationships with customers which it intends to leverage for enhancing retail presence Launching array of new products for varied customer class Setting up of 30 specialised retail loan processing across c
Slide 9: Healthy and diversified liability profile
Healthy and diversified liability profile Gross Deposit CASA ratio INR bn CASA % of Total deposits Gross Deposit 1,500 1,389.9 1,390.5 1,366.3 700 44.9% 44.1% 44.3% 50% 1,351.0 1,221.2 600 37.1% 1,250 36.7% 40% 500 1,000 400 30% 750 300 624 602 598 20% 500 453 510 200 250 10% 100 0 0 0% FY15 FY16 FY
Slide 10: Turnaround of non performing assets
Turnaround of non performing assets Movement of NPA Figures in INR in billion FY15 FY16 FY17 Q1FY18 Q2FY18 Opening Gross NPA 28.6 64.0 103.9 171.9 180.5 Less: Cash Recoveries 4.3 6.5 8.1 6.3 4.3 Less: Upgradation 4.0 1.9 1.5 1.8 2.7 Less Write Off 2.6 9.0 13.6 3.2 13.7 Total Reduction [A] 10.9 17.4
Slide 11: Turnaround of non performing assets
Turnaround of non performing assets GNPA and NNPA GNPA and NNPA (%) INR bn Gross NPA Net NPA Gross NPA Net NPA 200 180.5 24% 171.9 172.4 20% 18.6% 18.5% 150 16.9% 112.3 112.6 109.9 16% 12.7% 103.9 11.8% 12.5% 100 12% 9.3% 64.0 68.3 8% 6.3% 6.4% 50 41.3 4.2% 4% 0 0% FY15 FY16 FY17 Q1FY18 Q2FY18 FY15
Slide 12: Strategy for improving asset quality and recovery
Strategy for improving asset quality and recovery Bank has taken multiple steps to curtail further slippages and improve the quality of assets Strengthening of Asset Recovery Cells (‘ARC’) at all Zones and setting up of Asset Recovery Branches (‘ARB’) Introducing of schemes such as ‘Mahabank Karjmuk
Slide 13: Comfortable Capitalization
Comfortable Capitalization Capital Adequacy (Basel III) INR bn FY15 FY16 FY17 Q1FY18 Q2FY18 Risk Weighted Assets 934.4 1,016.9 954.7 889.0 839.7 % of RWA to Gross Advances 92.3% 91.4% 94.0% 91.6% 90.3% Tier 1 Capital 81.8 91.8 86.0 78.7 75.6 Tier 2 Capital 29.7 22.2 20.7 19.8 19.1 Total Capital Fund
Slide 14: Strong capital support from Government
Strong capital support from Government Fund infusion Year Investor Particulars (INR mn) August 2017 Issued to GOI 3,000 88,888,888 shares allotted to GOI (President of India) on Preferential basis October 2015 Issued to GOI 3,940 105,150,787 shares allotted to GOI (President of India) on Preferentia
Slide 15: Improving Cost to Income ratio and better operating metrics
Improving Cost to Income ratio and better operating metrics Cost to Income ratio Total Income per Employee Cost to Income INR mn Total Income/Employee (INR mn) 75% 11.0 61.0% 10.5 51.8% 52.1% 53.9% 10.5 10.2 48.1% 50% 10.0 9.6 9.5 25% 9.0 0% 8.5 FY15 FY16 FY17 Q1FY18 Q2FY18 FY15 FY16 FY17 Business1
Slide 16: Reduction in operating expenditure
Reduction in operating expenditure Bank has undertaken measures for rationalization of Branch network and No. of Employees Improving Employee efficiencies ● Non-profitable branches to be closed/ relocated/ merged Improving Branch efficiencies ● Merging branches in close vicinity in Metro and Urban a
Slide 17: Focus on IT and digital technology
Focus on IT and digital technology Mobile & Internet Banking ATM card users Lacs Mobile Banking users(Lacs) Internet Banking users(Lacs) Lacs ATM card users (Lacs) 8 7.0 7.2 80 68 6.8 65 67 54 57 6 5.2 60 4.0 4 3.3 3.6 40 2.9 2 1.1 20 0.2 0 0 FY15 FY16 FY17 Q1FY18 Q2FY18 FY15 FY16 FY17 Q1FY18 Q2FY18
Slide 18: Way forward
Way forward In a nutshell, Bank is on the path to achieving healthy financial position Controlling and recovery of NPAs Maintaining healthy CASA ratio Strengthening of Risk Management Measures and loan review mechanism Re-balancing of credit portfolio in favour of RAM Growing Advances through Retail
Slide 19: Financial Overview
Financial Overview 18
Slide 20: Key ratios
Key ratios Net Interest Margin (NIM) Yield on Advances NIM % Yield on Advances % 4% 14% 12% 11.0% 2.8% 2.8% 10.1% 3% 2.6% 10% 8.5% 8.5% 2.2% 7.7% 1.9% 8% 2% 6% 1% 4% 2% 0% 0% FY15 FY16 FY17 Q1FY18 Q2FY18 FY15 FY16 FY17 Q1FY18 Q2FY18 Cost of Deposit Credit to Deposit ratio Cost of Deposit Cost Of Dep
Slide 21: Key ratios
Key ratios Operating profit Net profit INR bn INR bn Operating Profit Net Profit 25 23.6 23.5 10 18.3 4.5 20 5 1.0 (0.2) 15 0 10 (5) 6.9 (4.1) 5.4 5 (10) (13.7) 0 (15) FY15 FY16 FY17 Q1FY18 Q2FY18 FY15 FY16 FY17 Q1FY18 Q2FY18 RoA RoE ROA % ROE % 4% 10% 6.7% 1.4% 3% (1.9%) 0% 2% -10% 1% 0.3% 0.1% (0.
Slide 22: Summary Financials
Summary Financials Figures in INR in billion FY15 FY16 FY17 Q1FY18 Q2FY18 Interest Earned 126.7 130.5 120.6 27.5 29.3 Other Income 10.1 10.2 15.1 4.6 3.7 Total Income 136.7 140.7 135.7 32.1 33.0 Interest Expended 87.9 91.7 88.9 20.5 19.7 Operating Expenses 25.3 25.5 28.6 6.2 6.4 Total 113.2 117.3 11
Slide 23: Board of Directors
Board of Directors Ravindra R. Marathe R. K. Gupta Alekh C. Rout MD & CEO Executive Director Executive Director Age: 59 years Age: 57 years Age: 57 years Over 35 years of rich Banking experience in Corporate Having a vast Banking experience of 34 years and core Strategic Planning, Credit Appraisal,
Slide 24: Key management profiles
Key management profiles R. H. Phadnis P. N. Deshpande T. V. Ramanmurthy General Manager General Manager General Manager Present Portfolio: CFO, Present Portfolio : Chief Present Portfolio : Financial Management & Executive Officer, METCO Information Technology Account, Inspection & Audit C. K. Verma
Slide 25: Annexure
Annexure 24
Slide 26: Awards & accolades
Awards & accolades Awards 12th “Banking Technology Excellence Awards 2015-16” organized by Institute for Development & Research in Banking Technology (IDRBT) SKOCH AWARD 2016 in the field of Financial Inclusion The IBA Runner-Up Award for the "Best Financial Inclusion Initiatives." Best Bank Award f
Slide 27: Thank you
Thank you 26