2QFY2013 Result Update | Banking

October 26, 2012

Bank of Maharashtra
Performance Highlights

Particulars (` cr) NII Pre-prov. profit PAT

Source: Company, Angel Research

NEUTRAL
CMP Target Price
% chg (qoq) 10.4 7.4 18.2 2QFY12 633 425 100 % chg (yoy) 13.6 11.3 65.3

`53 -

2QFY13 719 473 166

1QFY13 651 440 140

Investment Period
Stock Info Sector Market Cap (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code

Banking 3,107 1.0 59/38 53,851 10 18,625 5,664 BMBK.BO BOMH@IN

During 2QFY2013, Bank of Maharashtra reported a strong 65.3% yoy growth in net profit to `166cr, as provisioning expenses declined by 20% yoy (due to high base in 2QFY2012). The key highlight of the result was the stability witnessed on the asset quality front, with slippages coming at normalized levels. Business growth strong, NIM improves, Asset quality witnessed stability: During 2QFY2013, the bank reported a strong growth in its business, with advances and deposits growth of 27.6% and 24.7% yoy, respectively. CASA deposits were higher by 14.7% on a yoy basis, aided by a 17.4% growth in current deposits and 14.0% growth in savings deposits. The CASA ratio declined by 214bp sequentially to 37.4%. However, the bank witnessed strong traction in its overall retail deposits, with a growth of 25.0% yoy aided by a strong growth of 34.1% yoy in its retail term deposits. As of 2QFY2013, the share of bulk deposits (including CDs) stood at 12.8% compared to 13.8% as of 1QFY2013. The reported NIM for the bank improved by 8bp qoq to 3.0% as a 26bp sequential improvement in the yield on funds fully negated the 19bp qoq increase in costs of funds. The noninterest income (excluding treasury) for the bank grew by 10.0% yoy to `161cr, as subdued growth of 4.2% yoy was witnessed in CEB income stream. On the asset quality front, the bank witnessed stability with the gross NPA remaining flat qoq and the net NPA witnessing a marginal increase of 1.7% sequentially, on an absolute basis. The gross NPA ratio improved by 24bp sequentially to 2.0% during the quarter, while the net NPA ratio improved from 1.0% to 0.9%. Slippages came in at `210cr during the quarter compared to `441cr in 4QFY2012. The annualized slippage ratio came in at 1.5% compared to 3.1% witnessed in 1QFY2013 and 3.9% in 4QFY2012. The provisioning coverage ratio for the bank improved by 80bp qoq to 80.1%. Outlook and valuation: At the CMP, the stock is trading at valuations of 0.7x FY2014E ABV, which we believe factors in an expected 33.4% CAGR in earnings over FY2012-14E. Owing to the asset quality concerns arising due to weak macro-economic outlook, we recommend a Neutral rating on the stock. Key financials
Y/E March (` cr) NII % chg Net profit % chg NIM (%) EPS (`) P/E (x) P/ABV (x) RoA (%) RoE (%)
Source: Company, Angel Research

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 79.0 11.1 0.9 9.1

Abs. (%) Sensex BOM

3m 11.9 15.7

1yr 7.7 5.9

3yr 11.3 10.3

FY2011 1,968 51.9 330 (24.8) 2.8 6.2 8.6 0.9 0.4 11.3

FY2012 2,517 27.9 431 30.4 3.2 6.2 8.5 0.8 0.5 11.2

FY2013E 2,847 13.1 630 46.1 3.1 9.7 5.4 0.7 0.6 14.6

FY2014E 3,142 10.4 767 21.8 3.1 12.0 4.4 0.7 0.7 16.1

Vaibhav Agrawal
022 3935 7800 Ext: 6808 vaibhav.agrawal@angelbroking.com

Varun Varma
022 3935 7800 Ext: 6847 varun.varma@angelbroking.com

Sourabh Taparia
022 3935 7800 Ext: 6872 sourabh.taparia@angelbroking.com

Please refer to important disclosures at the end of this report

Bank of Maharashtra | 2QFY2013 Result Update

Exhibit 1: 2QFY2013 performance

Particulars (` cr) Interest earned - on Advances / Bills - on investments - on balance with RBI & others - on others Interest Expended Net Interest Income Other income Other income excl. treasury - Fee Income - Treasury Income - Recoveries from written off accounts - Others Operating income Operating expenses - Employee expenses - Other Opex Pre-provision Profit Provisions & Contingencies PBT Provision for Tax PAT Effective Tax Rate (%)
Source: Company, Angel Research

2QFY13 2,257 1,674 571 1 12 1,538 719 177 162 116 16 30 16 896 423 277 146 473 223 250 84 166 33.7

1QFY13 2,039 1,553 474 1 10 1,387 651 179 155 96 24 22 36 830 390 259 130 440 316 125 (16) 140 (12.8)

% chg (qoq) 10.7 7.7 20.4 (22.2) 13.2 10.9 10.4 (0.9) 4.6 20.5 (36.1) 35.8 (56.4) 8.0 8.6 6.9 12.1 7.4 (29.5) 101.0 18.2 -

2QFY12 1,800 1,371 427 0 3 1,167 633 145 147 112 (2) 24 12 778 353 228 125 425 278 147 46 100 31.5

% chg (yoy) 25.4 22.1 33.8 300.0 325.5 31.8 13.6 22.5 10.0 4.2 26.0 33.4 15.2 20.0 21.6 17.2 11.3 (20.1) 70.7 82.4 65.3 216bp

FY2012 4,295 3,227 1,045 1 22 2,925 1,370 356 316 213 40 51 52 1,726 813 537 276 913 538 375 68 306 18.3

FY2011 3,445 2,608 828 1 8 2,220 1,224 318 311 248 7 40 24 1,543 703 457 246 840 502 338 115 222 34.2

% chg (qoq) 24.7 23.7 26.2 15.3 195.9 31.8 11.9 11.9 1.6 (14.1) 486.0 29.0 117.6 11.9 15.7 17.5 12.4 8.7 7.2 11.0 (40.7) 37.8 (1590)bp

Exhibit 2: 2QFY2013 Actual vs Angel estimates

Particulars (` cr) Net interest income Other income Operating income Operating expenses Pre-prov. profit Provisions & cont. PBT Prov. for taxes PAT
Source: Company, Angel Research

Actual 719 177 896 423 473 223 250 84 166

Estimates 674 161 836 421 415 244 171 34 137

Var. (%) 6.6 9.7 7.2 0.6 13.9 (8.8) 46.3 146.4 21.3

October 26, 2012

Bank of Maharashtra | 2QFY2013 Result Update

Exhibit 3: 2QFY2013 performance analysis

Particulars Advances (` cr) Deposits (` cr) Credit-to-Deposit Ratio (%) Current deposits (` cr) Saving deposits (` cr) CASA deposits (` cr) CASA ratio (%) CAR (%) Profitability Ratios (%) Cost of deposits Yield on advances Yield on investments Yield on funds Cost of funds Reported NIM Cost-to-income ratio Asset quality Gross NPAs (` cr) Gross NPAs (%) Net NPAs (` cr) Net NPAs (%) Provision Coverage Ratio (%) Slippage ratio (%)
Source: Company, Angel Research

2QFY13 63,839 86,542 73.8 7,662 24,742 32,404 37.4 10.8 6.8 11.7 7.7 9.4 6.4 3.0 47.2 1,292 2.0 559 0.9 80.1 1.5

1QFY13 56,872 79,880 71.2 7,596 24,023 31,619 39.6 12.5 6.7 11.2 7.2 9.1 6.2 2.9 47.0 1,294 2.2 549 1.0 79.3 3.1

% chg (qoq) 12.2 8.3 257bp 0.9 3.0 2.5 (214)bp (171)bp 16bp 51bp 50bp 26bp 19bp 8bp 28bp (0.2) (24)bp 1.7 (9)bp 80bp (165)bp

2QFY12 50,043 69,376 72.1 6,550 21,699 28,249 40.7 11.9 6.3 11.5 7.1 9.2 6.0 3.2 45.3 1,094 2.2 284 0.6 86.0 0.8

% chg (yoy) 27.6 24.7 163bp 17.0 14.0 14.7 (328)bp (113)bp 47bp 13bp 52bp 16bp 42bp (25)bp 188bp 18.1 (15)bp 96.6 31bp (583)bp 72bp

Business growth strong in 2QFY2013, NIMs improve sequentially

During 2QFY2013, the bank reported a strong growth in its business, with advances witnessing a growth of 27.6% yoy and deposits registering a growth of 24.7% yoy. Consequentially, the credit-to-deposit (CD) ratio for the bank improved by 163bp yoy and 257bp sequentially to 73.8%. The CASA deposits were higher by 14.7% on a yoy basis, aided by a 17.4% growth in current deposits and 14.0% growth in savings deposits. The CASA ratio for the bank came off sharply by 328bp yoy and 214bp sequentially to 37.4%. However, the bank witnessed strong traction in its overall retail deposits, with a growth of 25.0% yoy aided by a strong growth of 34.1% yoy in its retail term deposits. As of 2QFY2013, bulk deposit (including CDs) for the bank stood at 12.8% of total deposits compared to 13.8% as of 1QFY2013. The reported NIM for the bank improved by 8bp qoq to 3.0% as a 26bp sequential improvement in the yield on funds fully negated the 19bp qoq increase in the cost of funds. The yield on advances for the bank improved by 51bp qoq to 11.7% while yield on investments improved by 50bp sequentially to 7.7%.

October 26, 2012

Bank of Maharashtra | 2QFY2013 Result Update

Exhibit 4: Business growth remained healthy

Adv. yoy chg (%) 30.0 25.0 20.0 15.0 10.0 70.0 72.1 71.3 71.2 72.0 Dep. yoy chg (%) 73.3 CDR (%, RHS) 73.8 74.0

Exhibit 5: CASA ratio declines sequentially by 214bp

CASA ratio (%) 42.0
12.4 13.6

CASA yoy growth (%, RHS)

17.0 14.4 14.7

20.0 15.0 10.0

39.0

36.0

24.0 12.5

14.0 11.4

19.6 14.5

22.7 17.4

27.6 24.7

40.7

41.0

41.3

39.6

5.0 -

68.0 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13

33.0 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13

Source: Company, Angel Research

37.4

5.0 -

Source: Company, Angel Research

Exhibit 6: NIM declines sequentially by 26bp mainly...

(%) 3.50 3.00 2.50 2.00 1.50 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3.24 3.28 3.17 2.91 2.99

Exhibit 7: ... due to 19bp qoq decline in yield on funds

(%) 10.00 9.00 8.00 7.00 6.00 5.00 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 9.21 9.52 9.30 9.11 9.37

Source: Company, Angel Research

Source: Company, Angel Research

Moderate growth in non-interest income (excluding treasury)

During 2QFY2013, the banks non-interest income (excluding treasury) grew by 10.0% yoy to `161cr, as a subdued growth of 4.2% yoy was witnessed in income from Commission, Exchange and Brokerage stream. Recoveries from written off accounts grew at a healthy pace of 26.0% yoy to `30cr. The treasury income for the bank came in at `16cr during the quarter as against a treasury loss of `2cr in 2QFY2012. Overall, the non-interest income grew by 22.5% yoy to `177cr.

Asset quality witnessed stability as slippages normalize

On the asset quality front, the bank witnessed stability with the gross NPA remaining flat qoq and net NPA witnessing a marginal increase of 1.7% sequentially, on an absolute basis. The gross NPA ratio improved by 24bp sequentially to 2.0% during the quarter, while the net NPA ratio improved from 1.0% to 0.9%. Slippages came in at `210cr during the quarter compared to `441cr in 4QFY2012. The annualized slippage ratio came in at 1.5% compared to 3.1% witnessed in 1QFY2013 and 3.9% in 4QFY2012. The provisioning coverage ratio for the bank improved by 80bp qoq to 80.1%.

October 26, 2012

Bank of Maharashtra | 2QFY2013 Result Update

Exhibit 8: Slippages came at normalized levels

(%) 4.0 3.2 2.5 1.7 1.0 0.2 (0.5) 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 0.8 1.1 1.5 3.9 3.1

Exhibit 9: NPA ratios improved sequentially

Gross NPAs (%) 3.0 86.0 87.0 Net NPAs (%) 80.4 79.3 PCR (%, RHS) 100.0 80.1 80.0 60.0 1.0 40.0

2.0

2.2 0.6

2.1 0.5

2.3 0.8

2.2 1.0

2QFY12 3QFY12 4QFY12 1QFY13 2QFY13

2.0 0.9
20.0 80.0 47.2 60.0 40.0 20.0 1.8 -

Source: Company, Angel Research

Source: Company, Angel Research; Note: PCR including tech. write-offs

Operating expenses higher by 20.0% yoy during 2QFY2013

During 2QFY2013, staff expenses increased by 21.6% yoy to `277cr. Other operating expenses increased by 17.2% yoy to `146cr, partly on account of addition of 74 branches in the last one year. Structurally, the banks operating efficiency has been relatively lower than peers, as is evident from an opex to average assets ratio of 2.0% for FY2012- the highest amongst the PSU banks. For 2QFY2013E, the banks opex to average asset ratio came in at 1.8%.

Exhibit 10: Operating expenses trend for BOM

(` cr) 600 500 400 300 200 100 228 2QFY12 233 3QFY12 423 4QFY12 259 1QFY13 277 2QFY13 353 125 370 136 Staff expenses Other opex 570 148 423 146

Exhibit 11: Cost ratios structurally higher for BOM

Opex to average assets (%) 3.0 2.5 2.0 1.5 1.0 0.5 1.8 1.9 2.7 1.7 45.3 46.5 47.0 69.5 Cost-to-income ratio (%, RHS)

390 130

2QFY12 3QFY12 4QFY12 1QFY13 2QFY13

Source: Company, Angel Research

Source: Company, Angel Research

Capital infused by Govt. and LIC, still tier-1 CAR at a low 7.1%
The bank had approached the government for an infusion of ~`860cr in 1QFY2012. The bank in FY2012 has received `605cr via equity capital infusion from the government and LIC. As of 2QFY2013, excluding 1HFY2013 profits, the banks total CAR stood at 10.75%, with tier-1 ratio at 7.1%, which still remains on the lower side.

October 26, 2012

Bank of Maharashtra | 2QFY2013 Result Update

Investment arguments
Healthy CASA franchise ensures low-cost funding
Bank of Maharashtra has enjoyed a healthy CASA franchise for the past several years on the back of strong rural and semi-urban presence (accounting for 53.3% of the entire branch network). Branch expansion stood at a modest 53 branches in FY2012, but the management has guided for an addition of 200 branches in FY2013 (till 1HFY2013 branch addition has been moderate at 49). Also, the management has been constantly focusing on reduction of dependence on bulk deposits. The benefit of a healthy CASA ratio and a relatively lower dependence on bulk deposits is reflected in the banks relatively lower cost of deposits than peers (at 6.8% for 2QFY2013).

Outlook and Valuation

At the current market price, the stock is trading at a valuation of 0.7x FY2014E ABV, which we believe factors in an expected 33.4% CAGR in earnings over FY2012-14E. Owing to the asset quality concerns arising due to weak macroeconomic outlook, we recommend a Neutral rating on the stock.

Exhibit 12: Key assumptions

Particulars (%) Credit growth Deposit growth CASA ratio NIMs Other income growth Growth in staff expenses Growth in other expenses Slippages Coverage
Source: Angel Research

Earlier estimates FY2013 13.0 11.0 40.7 3.1 7.3 11.0 10.0 2.9 78.0 FY2014 11.0 11.0 40.3 3.2 1.2 12.0 10.0 2.4 75.0

Revised estimates FY2013 18.0 15.0 39.2 3.1 11.8 11.0 10.0 2.5 80.0 FY2014 11.0 11.0 38.9 3.1 2.4 12.0 10.0 2.4 75.0

October 26, 2012

Bank of Maharashtra | 2QFY2013 Result Update

Exhibit 13: Change in estimates

FY2013 Particulars (` cr) NII Non-interest income Operating income Operating expenses Pre-prov. profit Provisions & cont. PBT Prov. for taxes PAT
Source: Angel Research

FY2014 Earlier estimates 3,106 696 3,802 2,024 1,777 693 1,084 352 732 Revised Var. (%) estimates 3,142 734 3,876 2,024 1,851 716 1,135 368 767 1.2 5.4 2.0 4.2 3.3 4.7 4.7 4.7

Earlier estimates 2,755 687 3,442 1,818 1,624 939 685 103 582

Revised Var. (%) estimates 2,847 716 3,563 1,818 1,745 938 807 178 630 3.3 4.2 3.5 7.4 (0.1) 17.8 72.7 8.1

Exhibit 14: P/ABV band

Price(`) 140 120 100 80 60 40 20 0 0.4x 0.7x 1x 1.3x 1.6x

Feb-05

Nov-08

Sep-04

Feb-10

Oct-06

Sep-09

May-06

May-11

Oct-11

Jun-08

Dec-05

Dec-10

Jan-08

Aug-07

Source: Company, Angel Research

October 26, 2012

Mar-07

Mar-12

Aug-12

Apr-09

Apr-04

Jan-13

Jul-05

Jul-10

Bank of Maharashtra | 2QFY2013 Result Update

Exhibit 15: Recommendation summary

Company AxisBk FedBk HDFCBk ICICIBk* SIB YesBk AllBk AndhBk BOB BOI BOM CanBk CentBk CorpBk DenaBk IDBI# IndBk IOB J&KBk OBC PNB SBI* SynBk UcoBk UnionBk UtdBk VijBk Reco. Buy Neutral Neutral Buy Accumulate Buy Neutral Reduce Accumulate Accumulate Neutral Accumulate Neutral Accumulate Neutral Accumulate Neutral Neutral Neutral Neutral Accumulate Accumulate Neutral Neutral Accumulate Buy Neutral CMP (`) 1,231 488 637 1,078 22 413 135 108 761 287 53 424 71 405 106 96 178 75 1,149 309 749 2,173 119 76 206 65 55 Tgt. price (`) 1,439 1,245 25 483 97 860 330 449 447 108 842 2,353 226 78 Upside (%) 16.9 15.5 12.8 16.8 (9.5) 13.0 14.9 5.9 10.4 13.2 12.4 8.3 9.9 19.4 FY2014E P/ABV (x) 1.7 1.2 3.6 1.7 0.9 2.1 0.5 0.7 0.9 0.7 0.7 0.8 0.7 0.7 0.7 0.6 0.6 0.5 1.0 0.7 0.8 1.4 0.7 0.8 0.7 0.5 0.7 FY2014E Tgt. P/ABV (x) 2.0 2.0 1.1 2.5 0.6 1.0 0.8 0.8 0.7 0.7 0.9 1.5 0.8 0.55 FY2014E P/E (x) 8.9 9.4 17.7 13.1 5.7 9.8 3.6 4.4 5.5 4.2 4.6 5.0 3.4 4.0 4.4 4.2 4.3 3.5 6.1 4.7 4.5 8.4 4.4 4.6 4.4 2.9 4.8 FY2012-14E EPS CAGR (%) 16.0 6.7 27.9 20.9 4.2 23.5 (0.4) 1.0 6.4 20.8 35.5 7.2 100.1 (2.2) 3.1 20.1 2.8 27.1 6.5 29.0 7.4 21.7 11.5 7.9 19.8 20.7 12.1 FY2014E RoA (%) 1.6 1.1 1.9 1.4 0.9 1.5 0.9 0.9 1.0 0.8 0.7 0.9 0.6 0.8 0.8 0.9 1.1 0.6 1.3 0.9 1.0 1.0 0.7 0.6 0.8 0.7 0.5 FY2014E RoE (%) 20.2 13.3 22.0 15.5 16.9 23.5 15.7 15.3 17.0 16.3 15.5 15.3 14.7 15.1 15.9 14.4 16.3 13.6 17.7 14.4 17.3 17.7 16.6 14.4 16.3 16.2 13.0

Source: Company, Angel Research; Note:*Target multiples=SOTP Target Price/ABV (including subsidiaries), #Without adjusting for SASF

Company Background
Bank of Maharashtra is a mid-sized Pune-based public sector bank, with operations mostly concentrated in the parent state of Maharashtra (~64% branches as of 2QFY2013). The bank has the highest number of branches in Maharashtra (1,046 as of 2QFY2013) after State Bank of India, which has allowed the bank to grow in-line with the state's progress over the past decade.

October 26, 2012

Bank of Maharashtra | 2QFY2013 Result Update

Income statement
Y/E March (` cr) Net Interest Income - YoY Growth (%) Other Income - YoY Growth (%) Operating Income - YoY Growth (%) Operating Expenses - YoY Growth (%) Pre - Provision Profit - YoY Growth (%) Prov. & Cont. - YoY Growth (%) Profit Before Tax - YoY Growth (%) Prov. for Taxation - as a % of PBT PAT - YoY Growth (%) Preference Dividend PAT avl. to Eq. shareholders - YoY Growth (%) FY09 1,257 11.3 500 31.5 1,757 16.4 963 15.1 794 18.0 282 88.2 511 (2.2) 136 26.6 375 14.2 375 14.2 FY10 1,296 3.2 591 18.2 1,887 7.5 1,073 11.4 815 2.6 246 (13.0) 569 11.3 129 22.7 440 17.2 440 17.2 FY11 1,968 51.9 531 (10.2) 2,499 32.4 1,644 53.2 855 5.0 467 90.1 388 (31.8) 57 14.8 330 (24.8) 34 297 (32.5) FY12 2,517 27.9 641 20.7 3,158 26.3 1,643 (0.1) 1,515 77.2 856 83.3 659 69.9 228 34.6 431 30.4 64 367 23.8 FY13E 2,847 13.1 716 11.8 3,563 12.8 1,818 10.7 1,745 15.2 938 9.5 807 22.5 178 22.0 630 46.1 58 571 55.6 FY14E 3,142 10.4 734 2.4 3,876 8.8 2,024 11.4 1,851 6.1 716 (23.7) 1,135 40.7 368 32.4 767 21.8 58 709 24.0

Balance sheet
Y/E March (` cr) Share Capital - Equity - Preference Reserve & Surplus Deposits - Growth (%) Borrowings Tier 2 Capital Other Liab. & Prov. Total Liabilities Cash Balances Bank Balances Investments Advances - Growth (%) Fixed Assets Other Assets Total Assets - Growth (%) FY09 431 431 2,087 52,255 25.1 190 2,068 2,001 59,030 3,881 224 18,382 34,291 17.1 655 1,597 59,030 22.6 FY10 431 431 2,428 63,304 21.1 129 2,668 2,096 71,056 5,315 1,379 21,324 40,315 17.6 660 2,063 71,056 20.4 FY11 1,070 482 588 2,901 66,845 5.6 577 2,500 2,550 76,442 3,846 203 22,491 46,881 16.3 667 2,354 76,442 7.6 FY12 1,178 590 588 3,545 76,529 14.5 1,325 2,500 2,941 88,017 4,535 1,209 22,911 56,060 19.6 601 2,701 88,017 15.1 FY13E 1,178 590 588 3,979 88,008 15.0 2,276 2,438 3,048 100,927 3,960 1,386 25,664 66,151 18.0 668 3,098 100,927 14.7 FY14E 1,178 590 588 4,517 97,689 11.0 2,233 2,377 3,395 111,388 3,908 1,530 28,390 73,427 11.0 715 3,419 111,388 10.4

October 26, 2012

Bank of Maharashtra | 2QFY2013 Result Update

Ratio analysis
Y/E March Profitability ratios (%) NIMs Cost to Income Ratio RoA RoE B/S ratios (%) CASA Ratio Credit/Deposit Ratio CAR - Tier I Asset Quality (%) Gross NPAs Net NPAs Slippages Loan Loss Prov. /Avg. Assets Provision Coverage Per Share Data (`) EPS ABVPS (75% cover.) DPS Valuation Ratios PER (x) P/ABVPS (x) Dividend Yield DuPont Analysis NII (-) Prov. Exp. Adj. NII Treasury Int. Sens. Inc. Other Inc. Op. Inc. Opex PBT Taxes RoA Pref. Div. RoA after Pref. Div Leverage RoE 2.3 0.5 1.8 0.3 2.1 0.6 2.8 1.8 1.0 0.3 0.7 0.7 28.0 19.6 2.0 0.4 1.6 0.3 1.9 0.6 2.5 1.6 0.9 0.2 0.7 0.7 29.1 19.7 2.7 0.6 2.0 0.1 2.1 0.6 2.8 2.2 0.5 0.1 0.4 0.0 0.4 27.6 11.3 3.1 1.0 2.0 0.0 2.0 0.8 2.8 2.0 0.8 0.3 0.5 0.1 0.5 24.5 11.2 3.0 1.0 2.0 0.0 2.1 0.7 2.8 1.9 0.9 0.2 0.7 0.1 0.6 23.8 14.6 3.0 0.7 2.3 0.0 2.3 0.7 3.0 1.9 1.1 0.3 0.7 0.0 0.7 23.8 16.1 6.0 1.1 2.8 5.2 1.1 3.8 8.6 0.9 3.8 8.5 0.8 4.2 5.4 0.7 3.8 4.4 0.7 4.7 8.7 46.3 1.5 10.2 48.9 2.0 6.2 57.5 2.0 6.2 63.8 2.2 9.7 71.1 2.0 12.0 80.3 2.5 2.3 0.8 1.2 0.3 65.9 3.0 1.6 2.5 0.4 54.7 2.5 1.3 1.7 0.5 65.6 2.3 0.8 1.8 0.8 80.4 2.7 1.0 2.5 0.8 80.0 4.0 1.5 2.4 0.6 75.0 35.7 65.6 10.8 5.5 36.9 63.7 12.8 5.7 40.4 70.1 13.4 8.0 41.3 73.3 12.4 8.3 39.2 75.2 11.5 8.0 38.9 75.2 11.2 8.0 2.5 54.8 0.7 19.6 2.1 56.8 0.7 19.7 2.8 65.8 0.4 11.3 3.2 52.0 0.5 11.2 3.1 51.0 0.6 14.6 3.1 52.2 0.7 16.1 FY09 FY10 FY11 FY12 FY13E FY14E

October 26, 2012

10

Bank of Maharashtra | 2QFY2013 Result Update

Research Team Tel: 022 - 39357800

E-mail: research@angelbroking.com

Website: www.angelbroking.com

DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

Bank of Maharashtra No No No No

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors

Ratings (Returns):

Buy (> 15%) Reduce (-5% to -15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

October 26, 2012

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