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Stock Report
Acuité upgrades rating of Bank of Maharashtra
Posted On : 2022-03-02 15:06:41( TIMEZONE : IST )
Acuité has upgraded the long-term rating to 'ACUITE AA+(read as ACUITE double A plus) from 'ACUITE AA' (read as ACUITE double A) on the Rs.1000.00 Cr Basel III Compliant Tier-2 Bond Programme of Bank of Maharashtra. The outlook is 'Stable'.
Acuité has upgraded the long-term rating to 'ACUITE AA+(read as ACUITE double A plus) from 'ACUITE AA' (read as ACUITE double A) on the Rs.1000.00 Cr Basel III Compliant Tier-2 Bond Programme of Bank of Maharashtra. The outlook is 'Stable'.
Acuité has upgraded the long term rating to 'ACUITE AA' (read as ACUITE double A) from 'ACUITE AA-'(read as ACUITE double A minus) on the Rs.1000.00 crore Basel III Additional Tier-I Bonds of Bank of Maharashtra. The outlook is 'Stable'.
Further, Acuité has assigned the long-term rating of 'ACUITE AA+' (read as ACUITE double A plus) on the Rs.1000.00 crore proposed Basel III Compliant Tier-2 Bond Programme of Bank of Maharashtra. The outlook is 'Stable'.
The revision in ratings takes into account noticeable and sustained improvement in profitability, asset quality and capitalization metrics of the bank. Driven by traction in credit growth in RAM segment and healthy margins, the bank has been reporting improvement in operating performance. The ratings upgrade further take into account sequential improvement in the asset quality metrics and high provisioning buffers. The asset quality has shown improving trends due to lower slippages with slippage ratio of 1.91% as on December 2021 (March 2021:3.65%) resulting in GNPA at 4.73 % as on December 2021 (March 31, 2021:7.23%). The Provision Coverage Ratio (PCR )(Including technical write-offs) stood at 93.77 % as on December 2021(December 2020:89.55%) while PCR(excluding technical write offs) stood at 75.05% as on December 2021(December 2020:68.31 %). The bank's comfortable capitalization levels is marked by CAR and Tier I of 14.85% and 10.61% respectively as on December 2021 (CAR:14.49% and Tier I:10.98% as on March 31,2021). The bank raised Rs. 403.70 Cr via QIP route in July 2021 and Rs.1000 Cr from Tier II bonds issued in October 2021, resulting in further improvement in capitalization levels.
The rating continues to factor in strong ownership (GoI held 90.97% stake as on December 31, 2021) and demonstrated capital support from the Government of India. The rating also factors bank's favorable and stable liability profile with better than industry average CASA share of 55.05% as on December 31,2021 (53.99% as on March 31,2021).
However, these strengths are partly offset by the bank's relatively moderate scale of operations, moderate profitability and regional concentration in the state of Maharashtra. Going forward, continued GoI support, the bank's ability to maintain improvement in credit profile are key monitorable.
Shares of Bank of Maharashtra was last trading in BSE at Rs. 17.80 as compared to the previous close of Rs. 17.70. The total number of shares traded during the day was 711573 in over 1810 trades.
The stock hit an intraday high of Rs. 18.05 and intraday low of 17.45. The net turnover during the day was Rs. 12626855.00.
