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Informist, Thursday, Jan. 16, 2025

 

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--Bk of Maharashtra: Expect recoveries of INR 15 bln a year for next 5 years
--Bk of Maharashtra: See scope to increase bancassurance business
--CONTEXT: Bk of Maharashtra mgmt's comments in post-earnings analyst call
--Bk of Maharashtra: Discussions on with 5 more partners for co-lending
--Bk of Maharashtra: Got board approval to open branch in GIFT City
--Bk of Maharashtra: Quality focus in underwriting retail, agri, MSME loans
--Bk of Maharashtra: To focus on agri invest credit than production credit
 

 

By Sourabh Kumar and Ashna Mariam George

 

MUMBAI – Bank of Maharashtra expects to make annual recoveries of INR 15 billion over the next five years, senior officials from the bank said in a post-earnings analyst call on Thursday. The bank made recoveries of INR 3.08 billion in Oct-Dec from written-off accounts, while the recoveries last year were INR 9.86 billion.

 

Bank of Maharashtra on Wednesday reported a 35.8% on-year rise in net profit at INR 14.06 billion in Oct-Dec on the back of a 19.4% increase in net interest income.

 

Officials said the bank would focus on the quality of underwriting of loans in the retail, agriculture, and micro, small, and medium enterprise segments. "Just to safeguard ourselves, we have rather made the task more difficult for ourselves by increasing the underwriting benchmark," a bank official said. But despite being selective, the bank does not see any challenges in terms of credit growth. The bank will also focus more on investment credit in the agriculture sector, which are of a higher ticket-size, than production credit going forward.

 

On its plan to open a branch in Gujarat International Finance Tec-City, or GIFT City, Managing Director and Chief Executive Officer Nidhu Saxena said the proposal has been approved by the bank's board. In October, the bank said it had submitted a request to the Reserve Bank of India for a licence to commence operations in GIFT City.

 

Saxena said the bank is shortly launching bancassurance with Life Insurance Corp. "There is a scope to increase this bancassurance business, and we want to grow in a very compliant manner and make use of some technology around this proposition." On co-lending partnerships, the bank is in discussions with five non-banking finance companies. It currently has partnerships with six non-banks, Saxena said.

 

The bank is also on track to achieve its target of opening 200 branches by the end of the current financial year. The bank had a total of 2,551 branches as on Dec. 31.

 

Shares of Bank of Maharashtra closed 1.9% higher on Thursday at INR 51.98 on the National Stock Exchange.  End

 

Edited by Saji George Titus

 

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