Any current/future capex/capital investment/strategic investment?

The bank is heavily investing in digital transformation with a total budget of around INR 1,200 crore allocated for digital initiatives. Focus areas for digital spend include digital journeys, digital operations, and digital compliance under the project named "Parivartan." The bank has onboarded Boston Consulting Group (BCG) as a consultant for this digital transformation. Robotic Process Automation (RPA) is a key component, with plans to have over 25-30 processes live next quarter and to cross 60 processes within the year. Investments also focus on leveraging technology for credit sourcing, u

Future growth expectations in sales/revenue/volumes?

Bank of Maharashtra targets credit growth of 20% to 22% advances growth for FY24. Deposit growth is expected to normalize around 14% to 15% during the year. The bank aims for a business size of INR 5,00,000 crore by March 2024. Credit growth is planned to maintain a 60:40 mix between corporate and non-corporate sectors. Retail, Agriculture, and MSME sectors (RAM) contribute about 58.25% of advances, with growth rates of 25% (retail), 22% (agriculture), and 29% (MSME) respectively. The bank anticipates improved asset monitoring and digital initiatives to support growth and reduce stress assets.

Future growth expectations in earnings/operating earnings/profits/EPS?

Credit growth target maintained at 20%-22% for FY24, with advances expected around INR 13,000-14,000 crore per quarter. Total business targeted at INR 5,00,000 crore by March 2024. Deposit growth expected around 14%-15% for the current year. Net Interest Income (NII) is projected to have double-digit growth due to better funding and comfortable liquidity. Net Profit rose 95% YoY to INR 882 crore in Q1 FY24, indicating strong earnings momentum. Operating profit grew to INR 1,863 crore in Q1 FY24 from INR 1,202 crore in Q1 FY23. Return on Assets (ROA) expected to remain stable in the

Current/ Expected Orderbook/ Pending Orders?

The sanctioned but undrawn order book is around INR 7,000 to 8,000 crore. Some projects in the order book take time to complete, causing a fluctuating undrawn amount. The June quarter is considered a flat quarter, which may temporarily increase numbers. The management expects the order book to come down in subsequent quarters as projects progress.

Any current/future new fundraising through debt or equity?

On page 18, the management did not explicitly mention any new or planned fundraising through debt or equity in the current or future quarters. They discussed the investment book and accumulation of securities with short to medium-term maturities to benefit from rising yields, but no mention of raising funds through debt or equity issuance. Management addressed credit growth and loan sanctioning pipelines but did not highlight any capital raising plans. Discussions mainly focused on deposit growth, investment strategy, provisioning, and operational improvements, with no explicit commentary on f

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Bank of MaharashtraQ2 FY23Banks

Bank of Maharashtra Q2 FY23 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹88.7P/E: 8.6Market Cap: ₹60.0K CrSector: Banks

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

N/A

0 of 2 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 2

→Bank of Maharashtra targets credit growth of 20% to 22% advances growth for FY24.
→Deposit growth is expected to normalize around 14% to 15% during the year.
→The bank aims for a business size of INR 5,00,000 crore by March 2024.
→Credit growth is planned to maintain a 60:40 mix between corporate and non-corporate sectors.
→Retail, Agriculture, and MSME sectors (RAM) contribute about 58.25% of advances, with growth rates of 25% (retail), 22% (agriculture), and 29% (MSME) respectively.
→The bank anticipates improved asset monitoring and digital initiatives to support growth and reduce stress assets.
→Net Interest Income (NII) growth is expected to be double-digit, supported by improved funding and interest rates.
→Digital transformation, including robotic process automation, is expected to enhance efficiency and customer service, supporting future growth.

Margin guidance

Category 3

→Credit growth target maintained at 20%-22% for FY24, with advances expected around INR 13,000-14,000 crore per quarter.
→Total business targeted at INR 5,00,000 crore by March 2024.
→Deposit growth expected around 14%-15% for the current year.
→Net Interest Income (NII) is projected to have double-digit growth due to better funding and comfortable liquidity.
→Net Profit rose 95% YoY to INR 882 crore in Q1 FY24, indicating strong earnings momentum.
→Operating profit grew to INR 1,863 crore in Q1 FY24 from INR 1,202 crore in Q1 FY23.
→Return on Assets (ROA) expected to remain stable in the range of 1.3%-1.4%.
→Provisioning costs expected to stabilize around INR 2,000-2,500 crore, credit costs near 1%, supporting consistent profitability.
→Digital investment and operational efficiency efforts expected to sustain performance improvements.

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Fundraise plans

→On page 18, the management did not explicitly mention any new or planned fundraising through debt or equity in the current or future quarters.
→They discussed the investment book and accumulation of securities with short to medium-term maturities to benefit from rising yields, but no mention of raising funds through debt or equity issuance.
→Management addressed credit growth and loan sanctioning pipelines but did not highlight any capital raising plans.
→Discussions mainly focused on deposit growth, investment strategy, provisioning, and operational improvements, with no explicit commentary on fresh fundraising initiatives.

Order book

→The sanctioned but undrawn order book is around INR 7,000 to 8,000 crore.
→Some projects in the order book take time to complete, causing a fluctuating undrawn amount.
→The June quarter is considered a flat quarter, which may temporarily increase numbers.
→The management expects the order book to come down in subsequent quarters as projects progress.

Capex plans

→The bank is heavily investing in digital transformation with a total budget of around INR 1,200 crore allocated for digital initiatives.
→Focus areas for digital spend include digital journeys, digital operations, and digital compliance under the project named "Parivartan."
→The bank has onboarded Boston Consulting Group (BCG) as a consultant for this digital transformation.
→Robotic Process Automation (RPA) is a key component, with plans to have over 25-30 processes live next quarter and to cross 60 processes within the year.
→Investments also focus on leveraging technology for credit sourcing, underwriting, and monitoring.
→No specific mention of other capital expenditure outside digital technology and IT infrastructure in the current disclosures.

How does Bank of Maharashtra rank vs peers in Banks?

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