NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Systematix Report
Bank Of Maharashtra reported Q4 FY26 PAT of 2,010 crore, (12.3% above brokerage's estimate of Rs 1,790 crore) up by 13.2% QoQ and 34.9% YoY. The sequential improvement was driven by -
- healthy net interest income (NII) growth
- lower provisions.
The bank reported a healthy sequential growth in net advances of 6.9% in Q4 and 22.0% YoY while the deposits grew by 9% and 14.1% correspondingly. The net interest margin improved by 5 bps sequentially (down -9 bps YoY). The yield on advances declined by -20 bps QoQ to 8.72%. This was offset by a decline of -15 bps QoQ in cost of funds (CoF) combined with a 13 bps increase in yield on investments (driven by a one-off income) correspondingly.
Management indicated that deposit repricing benefits are largely captured and have guided for a NIM of ~3.75% going forward. Gross slippages stood at Rs 840 crore while the annualized gross slippage ratio was 1.2%, up 5 bps QoQ and 6 bps YoY.
The recoveries and upgrades stood at Rs 340 crore. This resulted in a net slippage addition of Rs 500 crore. Credit costs remained below 1% (at 0.9%). The slippages are expected to remain below 1% levels while the credit costs are expected to stabilise at 1% going forward.
Further, the advances are expected to grow by 18% and deposits to grow in the range of 14-15% while maintaining CASA at ~50% levels. The ROA guidance for FY27 has been increased by 5bps from FY26 levels to 1.8%. Based on its revised estimates Systematix has revised its target price to Rs 88 (from Rs 80 earlier) and maintain Buy rating on Bank of Maharashtra.
The brokerage values the standalone bank at 1.5x its FY28E adjusted book value per share of Rs. 58.
Click on the attachment to read the full report:
ALSO READ: HCLTech FY26 Dividend Announcement: Can It Beat D-Street Estimates This Time?
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
