Bank of Maharashtra - Q4FY13 Result Review - Angel Broking

Bank of Maharashtra reported stellar performance during the quarter, registering a bottom-line growth of 255.6% yoy, which was ahead of our expectation of 192.5% yoy growth. Strong NII growth (34.6% yoy, aided by similar growth in advance), robust non-interest income performance (more than double on a yoy basis) and flat provisioning expenses (on sequential improvement in asset quality and also due to high base), resulted in stellar earnings performance for the bank.

Asset quality for the bank improved sequentially, as both Gross and net NPA levels declined by 11.4% and 19.3% qoq, respectively.

At CMP, the stock trades at 0.6x FY2015x ABV. Post the recent surge in the stock, our target price has been achieved and hence our rating and recommendation on the stock is currently under review.

Source : Equity Bulls

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