2QFY2012 Result Update | Banking

October 22, 2011

Bank of Maharashtra
Performance Highlights

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

Source: Company, Angel Research

BUY
CMP Target Price
% chg (qoq) 7.1 2.5 (17.7) 2QFY11 461 220 52 % chg (yoy) 37.3 93.0 92.0

`48 `57
12 Months

2QFY12 633 425 100

1QFY12 591 415 122

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 2,309 0.9 85/45 90,180 10 16,786 5,050 BMBK.BO BOMH@IN

For 2QFY2012, Bank of Maharashtra posted a robust net profit growth of 92.0% yoy (primarily due to a low-base effect) to `100cr, above our estimates, due to higher than expected growth in net interest income as well as non-interest income and significantly lower provisioning expenses than built in by us. Sequential improvement in NIMs, healthy growth in fee income and sharp improvement in asset quality were the key positive takeaways from the results. We maintain our Buy recommendation on the stock. Remarkable quarter in terms of earning quality: During 2QFY2012, advances grew by a strong 24.0% yoy, while deposit grew by a moderate 12.5% yoy. Consequently, the banks incremental CD ratio for 2QFY2012 stood at 227.6%, leading to overall CD ratio improving from 69.1% in 1QFY2012 to 72.1% in 2QFY2012. CASA deposits growth was comparable to the deposit growth at 12.4% yoy, with saving account deposits rising by 13.3% yoy. On the back of reasonable growth in CASA deposits, the bank was able to improve its CASA ratio albeit marginally to 40.7%. During 2QFY2012, the yield on advances for the bank increased by 62bp to 11.5%, while the cost of deposits increased by a lower 36bp, leading to a 16bp qoq expansion in calculated NIMs. The bank surprised on the asset quality front with slippages declining by 50.3% qoq to `93cr (average quarterly slippages of `226cr since 1QFY2010). The slippages which have been on a declining trend since 1QFY2011 onwards, improved sharply in 2QFY2012 to 0.8%, compared to 1.6% in 1QFY2012 and 4.0% in 1QFY2011. The gross NPA ratio improved to 2.2% compared to 2.4% in 1QFY2012, while the net NPA ratio halved from 1.2% in 1QFY2012 to 0.6%. The provision coverage ratio (including technical write-offs) improved further to 86.0%. Outlook and valuation: We expect the bank to deliver a healthy 38.1% earnings CAGR over FY201113E on the back of relatively better NIM, pick-up in fee income and improving asset quality. At the CMP, the stock is trading at attractive valuations, in our view, of 0.6x FY2013E ABV vs. its five-year range of 0.61.2x and median of 0.9x. We maintain a Buy on the stock with a target price of `57. 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 79.2 8.8 1.1 10.9

Abs. (%) Sensex BOM

3m (9.0) (11.4)

1yr (17.2) (41.8)

3yr 57.1 66.8

FY2010 1,296 3.2 440 17.2 2.1 10.2 4.7 1.0 0.7 19.7

FY2011 1,968 51.9 330 (24.8) 2.8 6.2 7.8 0.8 0.4 11.3

FY2012E 2,444 24.1 483 46.3 3.1 8.9 5.4 0.7 0.5 14.1

FY2013E 2,536 3.8 620 28.3 2.9 11.7 4.1 0.6 0.6 16.5

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

Shrinivas Bhutda
022 3935 7800 Ext: 6845 shrinivas.bhutda@angelbroking.com

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

Please refer to important disclosures at the end of this report

Bank of Maharashtra | 2QFY2012 Result Update

Exhibit 1: 2QFY2012 performance

Particulars (` cr) Interest earned - on Advances / Bills - on investments - on balance with RBI & others - on others Interest Expended Net Interest Income Other income 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

2QFY12 1QFY12 % chg (qoq) 2QFY11 % chg (yoy) 1,800 1,371 427 0 3 1,167 633 145 778 353 228 125 425 278 147 46 100 31.5 1,644 1,237 401 1 5 1,053 591 173 765 350 229 121 415 224 191 69 122 36.2 9.5 10.8 6.4 (85.6) (41.5) 10.9 7.1 (16.6) 1.7 0.8 (0.4) 2.9 2.5 24.5 (23.3) (33.1) (17.7) (464)bp 1,308 929 372 6 1 847 461 118 579 359 242 117 220 176 44 (8) 52 (18.5) 37.6 47.6 14.7 (97.7) 118.9 37.8 37.3 22.9 34.4 (1.6) (5.6) 6.5 93.0 58.1 232.2 92.0 5001bp

Exhibit 2: 2QFY2012 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 633 145 778 353 425 278 147 46 100

Estimates 556 125 681 368 312 192 120 39 81

Var. (%) 13.9 15.8 14.3 (4.3) 36.1 45.0 22.0 18.5 23.7

October 22, 2011

Bank of Maharashtra | 2QFY2012 Result Update

Exhibit 3: 2QFY2012 performance analysis

Particulars Advances (` cr) Deposits (` cr) Credit-to-Deposit Ratio (%) Current deposits (` cr) Saving deposits (` cr) CASA deposits (` cr) CASA ratio (%) CAR (%) Tier 1 CAR (%) Profitability Ratios (%) Cost of deposits Yield on advances Yield on investments Yield on funds Cost of funds Calculated 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

2QFY12 50,043 69,376 72.1 6,550 21,699 28,249 40.7 11.9 7.1 6.3 11.5 7.1 9.2 6.0 3.3 45.3 1,094 2.2 284 0.6 86.0 0.8

1QFY12 47,026 68,050 69.1 6,526 21,106 27,632 40.6 12.6 7.6 6.0 10.9 7.1 8.8 5.7 3.2 45.8 1,148 2.4 531 1.2 73.2 1.6

% chg (qoq) 6.4 1.9 303bp 0.4 2.8 2.2 11bp (71)bp (45)bp 36bp 62bp 1bp 37bp 31bp 16bp (41)bp (4.7) (29)bp (46.5) (58)bp 1,275bp (81)bp

2QFY11 % chg (yoy) 40,368 61,661 65.5 5,989 19,153 25,142 40.8 13.8 7.7 5.3 9.3 7.1 7.7 5.0 2.7 61.9 1,467 3.6 880 2.2 55.8 2.3 24.0 12.5 667bp 9.4 13.3 12.4 (6)bp (194)bp (61)bp 109bp 225bp 1bp 154bp 100bp 57bp (1,660)bp (25.4) (143)bp (67.7) (161)bp 3,017bp (153)bp

Advances growth strong; CD ratio improves

During 2QFY2012, advances grew by a strong 24.0% yoy to `50,043cr, while deposit grew by a moderate 12.5% yoy to `63,976cr. Consequently, the banks incremental CD ratio for 2QFY2012 stood at 227.6%, leading to overall CD ratio improving from 69.1% in 1QFY2012 to 72.1% in 2QFY2012. Growth in SME advances was robust at 74.2% yoy (5.6% qoq), leading to an increase in its share in loan book to 15.8% from 11.3% as of 2QFY2011. Retail advances loan growth was at 11.8% yoy within which housing loans grew at a relatively faster pace of 15.7% yoy. CASA deposits growth was comparable to the deposit growth at 12.4% yoy, with saving account deposits rising by 13.3% yoy. On the back of reasonable growth in CASA deposits, the bank was able to improve its CASA ratio albeit marginally to 40.7%.

October 22, 2011

Bank of Maharashtra | 2QFY2012 Result Update

Exhibit 4: Advances growth strong; CD ratio improves

Adv. yoy chg (%) 30.0 25.0 20.0 15.0 10.0 5.0 2QFY11 3QFY11 4QFY11 1QFY12 2QFY12
Source: Company, Angel Research

Exhibit 5: CASA ratio maintained at healthy 40%+ levels

CASA ratio (%) 42.0
28.4 20.8 15.7 15.9 12.4

Dep. yoy chg (%)

CDR (%, RHS) 72.1 74.0 72.0

CASA yoy growth (%, RHS) 35.0 28.0 21.0 14.0 7.0 -

69.7

70.1

69.1

70.0 68.0 66.0

39.0

65.5

36.0

12.1 13.2

14.7 10.4

16.3 5.6

11.6 14.2

24.0 12.5

40.8

40.2

40.4

40.6

64.0 62.0 33.0

2QFY11 3QFY11 4QFY11 1QFY12 2QFY12

Source: Company, Angel Research

NIM improves
During 2QFY2012, the yield on advances for the bank increased by 62bp to 11.5%, while the cost of deposits increased by a lower 36bp, leading to a 16bp sequential expansion in calculated NIMs. Management is targeting to maintain the banks NIM at 3.15% for FY2012 (reported NIMs of 3.18% for 1QFY2012) as compared to 2.80% in FY2011 on the back of focus on better yielding retail and SME advances.

Exhibit 6: Higher yield on advances for 2QFY2012...

(%) 12.50 11.50 10.50 9.50 8.50 7.50 2QFY11 3QFY11 4QFY11 1QFY12 2QFY12 9.29 10.52 9.79 11.54 10.92

Exhibit 7: ...leading to 16bp expansion in calculated NIMs

(%) 3.50 3.03 3.00 2.50 2.00 1.50 2QFY11 3QFY11 4QFY11 1QFY12 2QFY12 2.79 3.20 3.19 3.35

Source: Company, Angel Research

Source: Company, Angel Research

Asset quality surprises positively; net NPA halves sequentially

The bank had in FY2011 itself implemented the system-based NPA recognition system and is hence is relatively better placed in terms of asset-quality pressures compared to peers. While 2QFY2012 is expected to throw higher slippages for most PSUs, BOM has witnessed a sharp improvement in its asset quality. The bank surprised on the asset quality front with slippages declining by 50.3% qoq to `93cr (average `226cr since 1QFY2010). The slippage, which has been on a declining trend since 1QFY2011 onwards, improved sharply in 2QFY2012 to 0.8%, compared to 1.6% in 1QFY2012 and 4.0% in 1QFY2011. The gross NPA ratio improved to 2.2% compared to 2.4% in 1QFY2012, while the net NPA ratio halved from 1.2% in 1QFY2012 to 0.6%. The provision coverage ratio (including technical write-offs), which was as low as 54.7% in 1QFY2011, increased from 73.2% in 1QFY2012 to 86.0%.
October 22, 2011

40.7

Bank of Maharashtra | 2QFY2012 Result Update

Out of the `278cr provisioning expenses for the quarter, `185cr pertained to the catch-up counter cyclical provisions required under the RBIs 70% NPA coverage norm. With this provisioning, the bank has now achieved a provision coverage of 70% on NPAs as of 2QFY2011.

Exhibit 8: Slippages decline considerably

(%) 3.0 2.3 2.3 1.5 0.8 2QFY11 3QFY11 4QFY11 1QFY12 2QFY12 1.2 0.8 2.2 1.6

Exhibit 9: Asset quality sees sharp improvement

Gross NPAs (%) 4.0 3.0 2.0 1.0 55.8 60.0 73.2 Net NPAs (%) PCR (%, RHS) 86.0 65.6 100.0 80.0 60.0 40.0

3.6 2.2

3.2 1.9

2.5 1.3

2.4 1.2

2QFY11 3QFY11 4QFY11 1QFY12 2QFY12

2.2 0.6
20.0 100.0 80.0 45.3 60.0 40.0 20.0 1.8 -

Source: Company, Angel Research

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

Staff expenses decline

Staff expenses declined by 5.6% yoy to `228cr (down 0.4% sequentially), mostly due to a high base (49.4% yoy growth in staff expenses in 2QFY2011). The banks operating efficiency has been relatively lower than peers, as reflected in the opex to average assets ratio upwards of 1.71.8% (2.2% in FY2011 highest amongst the PSU banks). We have factored in opex to average assets ratio of 1.8% for both FY2012 and FY2013.

Exhibit 10: Operating expenses flat during 2QFY2012

Staff expenses (` cr) 700 600 500 400 300 200 100 242 2QFY11 212 3QFY11 530 4QFY11 229 1QFY12 228 2QFY12 359 117 337 125 Other opex (` cr) 666 137 350 121 353 125

Exhibit 11: Cost ratios structurally higher for BOM

Opex to average assets (%) 4.0 3.0 2.0 1.0 2.1 1.9 3.6 1.8 61.9 91.0 Cost-to-income ratio (%, RHS)

52.2

45.8

2QFY11 3QFY11 4QFY11 1QFY12 2QFY12

Source: Company, Angel Research

Source: Company, Angel Research

Tier-I ratio low at 7.1%; Capital infusion from government expected

The bank in FY2011 had received `588cr via capital infusion from the government through the form of preference shares. The bank had approached the government for an infusion of ~`900cr in 1QFY2012, (at least `500cr infusion expected in FY2012), which will ensure sufficient capital for future growth. As of 2QFY2012, the banks total CAR stood at 11.8%, with a low tier-I CAR of 7.1% (excluding 1HFY2012 profits). Also, the governments shareholding in the bank stands at an elevated 79.2%, providing adequate headroom for dilution.
October 22, 2011

Bank of Maharashtra | 2QFY2012 Result Update

Investment arguments
Healthy CASA share ensures low-cost funding
Bank of Maharashtra has enjoyed a healthy CASA ratio in the vicinity of 40% over the past several years on the back of strong rural and semi-urban presence (accounting for ~55% of the entire branch network). Branch expansion seems to be gradually picking up, with the addition of 69 branches in FY2011 and a target of adding similar number of branches in FY2012. Steady branch expansion and moderate balance sheet growth strategy is expected to aid the bank in maintaining its CASA share at ~40% levels over FY201213. Also, management has been focusing on reduction of dependence on bulk deposits. The benefit of healthy CASA ratio and a relatively lower dependence on bulk deposits is reflected in the banks relatively lower cost of deposits (at 6.3% for 2QFY2012) than peers.

Better placed than peers on the asset-quality front

The bank had in FY2011 itself implemented the system-based NPA recognition system and is relatively better placed in terms of asset-quality pressures than peers on this count. The banks restructuring of advances has also been much lower than peers at just 0.9% of gross advances (as of FY2011), of which 5.3% had slipped into NPAs by FY2011. Even the provision coverage ratio (including technical writeoffs) has been enhanced to comfortable 80%+ levels as of 2QFY2012 from 54.7% in 1QFY2011. In spite of the above stated positives and taking into account the macro headwinds, we have conservatively built in NPA provisions to average assets of 1.0% for FY2012 and 0.6% for FY2013 as compared to the average of 0.4% over FY200711. Even in terms of slippages, we have conservatively assumed slightly higher levels (1.9% in FY2012 and 2.1% in FY2013) than those witnessed in FY2011 (1.7%).

Attractive valuations
We expect the bank to deliver a healthy 38.1% earnings CAGR over FY201113E on the back of relatively better NIM, pick-up in fee income and improving asset quality. We have tweaked our estimates to factor in better than expected NIM trajectory and holding up of asset quality leading to reduced provisioning burden. At the CMP, the stock is trading at attractive valuations, in our view, of 0.6x FY2013E ABV vs. its five-year range of 0.61.2x and median of 0.9x. We maintain our Buy recommendation on the stock with a target price of `57, implying an upside of 19.5% from current levels.

October 22, 2011

Bank of Maharashtra | 2QFY2012 Result Update

Exhibit 12: Key assumptions

Particulars (%) Credit growth Deposit growth CASA ratio NIMs Other income growth Growth in staff expenses Growth in other expenses Slippages Treasury gain/(loss) (% of investments)
Source: Angel Research

Earlier estimates FY2012 15.0 14.0 39.4 2.9 12.0 (15.0) 10.0 1.9 0.1 FY2013 18.0 14.0 38.4 2.6 13.9 12.0 12.0 1.9 0.2

Revised estimates FY2012 17.0 13.0 39.7 3.1 13.7 (19.0) 5.0 1.9 0.1 FY2013 17.0 14.0 38.7 2.9 11.7 12.0 12.0 2.1 0.2

Exhibit 13: Change in estimates

FY2012 Particulars (` cr) NII Non-interest income Operating income Operating expenses Pre-prov. profit Provisions & cont. PBT Prov. for taxes PAT
Source: Angel Research

FY2013 Earlier estimates 2,352 678 3,030 1,702 1,328 484 844 274 570 Revised Var. (%) estimates 2,536 674 3,210 1,623 1,587 670 918 298 620 7.8 (0.5) 5.9 (4.6) 19.5 38.3 8.7 8.7 8.7

Earlier estimates 2,255 595 2,850 1,519 1,331 640 691 224 467

Revised Var. (%) estimates 2,444 603 3,047 1,449 1,598 883 716 232 483 8.3 1.4 6.9 (4.6) 20.1 37.9 3.6 3.6 3.6

Exhibit 14: P/ABV band

Price(`) 120 100 80 60 40 20 0
Nov-06 Nov-10 Apr-04 Aug-05 Mar-08 Jul-09 Mar-12

0.4x

0.7x

1x

1.3x

1.6x

Source: Company, Angel Research

October 22, 2011

Bank of Maharashtra | 2QFY2012 Result Update

Exhibit 15: Recommendation summary

Company AxisBk FedBk HDFCBk ICICIBk* SIB YesBk AllBk AndhBk BOB BOI BOM CanBk CentBk CorpBk DenaBk IDBI IOB J&KBk OBC PNB SBI* SynBk UcoBk UnionBk UtdBk VijBk
#

Reco. Buy Buy Accumulate Buy Accumulate Buy Buy Neutral Buy Accumulate Buy Neutral Neutral Buy Neutral Neutral Accumulate Accumulate Neutral Accumulate Accumulate Buy Buy Neutral Buy Buy Neutral

CMP (`) 1,124 386 486 870 23 278 150 118 744 324 48 451 101 410 74 104 206 97 822 296 982 1,949 102 65 240 71 53

Tgt. price (`) 1,414 444 519 1,146 24 324 174 943 371 57 489 220 104 325 1,129 2,335 125 286 91 -

Upside (%) 25.8 15.2 6.7 31.6 6.2 16.5 15.9 26.8 14.4 19.5 19.2 6.6 7.3 9.8 15.0 19.8 22.7 19.3 28.0 -

FY2013E P/ABV (x) 1.8 1.0 3.3 1.6 1.1 1.8 0.7 0.8 1.0 0.9 0.6 0.9 0.7 0.7 0.5 0.7 0.8 0.6 0.9 0.7 1.1 1.5 0.7 0.8 0.9 0.6 0.7

FY2013E Tgt P/ABV (x) 2.3 1.2 3.5 2.1 1.2 2.1 0.8 1.3 1.0 0.8 0.8 0.9 0.7 0.8 1.3 1.8 0.9 1.1 0.8 -

FY2013E P/E (x) 9.8 7.9 16.9 12.6 6.7 9.2 4.2 5.3 5.6 5.4 4.1 5.3 5.0 4.1 3.6 4.9 5.3 3.9 5.7 5.2 6.1 7.5 4.7 4.0 5.0 4.3 6.5

FY2011-13E EPS CAGR (%) 17.7 19.5 30.5 24.1 15.6 19.9 8.9 (0.9) 10.6 15.2 38.1 (2.8) (14.6) 2.3 5.8 12.3 0.2 20.3 6.7 5.4 7.2 41.4 9.1 14.0 9.6 11.7 (3.2)

FY2013E RoA (%) 1.5 1.2 1.7 1.4 1.0 1.3 0.9 0.9 1.1 0.7 0.6 0.9 0.5 0.8 0.8 0.7 1.1 0.6 1.2 0.8 1.0 1.0 0.6 0.6 0.8 0.6 0.4

FY2013E RoE (%) 20.0 14.0 20.9 15.6 18.2 20.8 17.7 15.8 19.6 17.1 16.5 17.1 14.2 16.8 16.2 14.0 17.4 15.9 16.4 13.9 20.0 21.9 15.7 16.5 18.1 13.8 10.5

IndBk

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

October 22, 2011

Bank of Maharashtra | 2QFY2012 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 (%) FY08 1,129 3.2 380 0.5 1,509 2.5 836 12.1 673 (7.4) 150 (61.6) 523 55.6 194 37.2 328 20.8 328 20.8 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) FY12E 2,444 24.1 603 13.7 3,047 21.9 1,449 (11.9) 1,598 86.9 883 88.9 716 84.5 232 32.4 483 46.3 55 429 44.5 FY13E 2,536 3.8 674 11.7 3,210 5.4 1,623 12.0 1,587 (0.7) 670 (24.1) 918 28.3 298 32.4 620 28.3 55 565 31.9

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 (%) FY08 431 431 1,351 41,758 23.1 199 2,168 2,244 48,151 3,894 332 12,283 29,286 27.8 220 2,136 48,151 23.4 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 FY12E 1,070 482 588 3,218 75,535 13.0 652 2,925 2,981 86,380 4,910 230 22,999 54,850 17.0 731 2,660 86,380 13.0 FY13E 1,070 482 588 3,643 86,109 14.0 743 3,422 3,485 98,473 5,597 262 24,598 64,175 17.0 808 3,033 98,473 14.0

October 22, 2011

Bank of Maharashtra | 2QFY2012 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 2.6 0.3 2.2 0.2 2.4 0.7 3.1 1.9 1.2 0.4 0.8 0.8 25.0 18.9 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 3.0 1.1 1.9 0.0 1.9 0.7 2.7 1.8 0.9 0.3 0.6 0.1 0.5 26.3 14.1 2.7 0.7 2.0 0.0 2.1 0.7 2.7 1.8 1.0 0.3 0.7 0.1 0.6 26.6 16.5 6.3 1.2 4.2 5.5 1.0 3.1 4.7 1.0 4.2 7.8 0.8 4.2 5.4 0.7 4.2 4.1 0.6 5.2 7.6 39.6 2.0 8.7 46.3 1.5 10.2 48.6 2.0 6.2 57.3 2.0 8.9 67.6 2.0 11.7 76.4 2.5 2.6 0.9 1.1 0.2 66.8 2.3 0.8 1.2 0.3 65.9 3.0 1.6 2.5 0.4 45.2 2.5 1.3 1.7 0.5 47.3 3.1 0.7 1.9 1.0 79.1 3.8 0.7 2.1 0.6 81.4 42.2 70.1 10.9 5.4 35.7 65.6 9.9 5.0 36.9 63.7 10.5 5.3 40.4 70.1 12.3 7.4 39.7 72.6 12.4 7.1 38.7 74.5 12.6 7.0 2.7 55.4 0.8 18.9 2.5 54.8 0.7 19.6 2.1 56.8 0.7 19.7 2.8 65.8 0.4 11.3 3.1 47.5 0.5 14.1 2.9 50.5 0.6 16.5 FY08 FY09 FY10 FY11 FY12E FY13E

October 22, 2011

10

Bank of Maharashtra | 2QFY2012 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 22, 2011

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