Bank of Maharashtra: Q4FY14 Results Disappoints Streets
Waseem Ahmad / 13 May 2014
Pune based public sector lender, Bank of Maharashtra, has posted poor set of numbers for the fourth quarter and year ended 31 March, 2014. The bank's net interest income (NII) during Q4FY14 showed marginal decrease and stood at Rs 868 crore against Rs 871 crore in Q4FY13 on account of sharp increase in interest expended which went up by 15.4% during said period.
Pune based public sector lender, Bank of Maharashtra, has posted poor set of numbers for the fourth quarter and year ended 31 March, 2014. The bank's net interest income (NII) during Q4FY14 showed marginal decrease and stood at Rs 868 crore against Rs 871 crore in Q4FY13 on account of sharp increase in interest expended which went up by 15.4% during said period.
However operating profit of the bank recorded sharp decrease in number and went down by 34.3% to Rs 467 crore during Q4FY14 against Rs 711 crore in same period last year. Operating profit of the bank dropped during the quarter mainly due to increase in operating expenses of the bank. Employee cost of the bank went up by 30% to Rs 473 crore in the said quarter from Rs 363 crore in Q4FY13. Further, other expenses of the bank increased 26% to Rs 228 crore as compared to Rs 179 crore in same period last year.
Moreover, net profit of the bank slumped by 78% on Y-o-Y basis to Rs 57 crore during Q4FY14 as against Rs 259 crore in Q4FY13. This was on account of higher provision made by the bank. The provisions and contingencies increased by 107% on Y-o-Y basis to Rs 257 crore in the said period from Rs 124 crore in the same period last year.
On the asset quality front, the bank recorded improvement during the quarter. The ratio of gross non performing assets (NPAs) to gross total assets came down to 3.16% in Q4FY14 as compared to 4.01% in Q3FY14. Further, the ratio of net performing assets to net total lending also showed improvement during the quarter and stood at 2.03% against 2.56% in Q3FY14. However provision coverage ratio (PCR) of the bank recorded sharp decline during the said quarter and stood at 56% in Q4FY14 against Rs 83.36% in same period last year.
Coming to annualized performance for FY14, NII of the bank grew by 15.5% on Y-o-Y basis to Rs 3509 crore in FY14 against Rs 3033 crore in last fiscal year. However operating profit decreased by 6.5% to Rs 2019 crore in FY14 on account of increase in operating expenses as against Rs 2158 crore in FY13. Further, net profit of the bank dropped by 48% to Rs 398 crore in FY14 as compared to Rs 769 crore in FY13.
At CMP of Rs 38.8 per share, the stock is trading at 0.54x of its adjusted book value.
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