4QFY2012 Result Update Banking May 10, 2012 Bank of Maharashtra Performance Highlights Particulars (` cr) 4QFY12 3QFY12 % chg (qoq) 4QFY11 % chg (yoy) NII 647 645 0.3 575 12.6 Preprov. profit 250 425 (41.2) 66 279.6 PAT 73 136 (46.3) 69 4.9 Bank of Maharashtra reported a muted performance for 4QFY2012, registering net profit growth of just 4.9% yoy to `73cr, despite moderate growth in operating income and a sizeable decline in operating expenses, mainly due to higher provisioning expenses during the quarter. We recommend an Accumulate rating on the stock. Strong performance on the operating front: During 4QFY2012, the bank s advances grew at a healthy rate of 19.6% yoy, while deposits growth was moderate at 14.5% yoy. CASA deposits growth stood at 17.0% yoy, which was higher as compared to overall deposit growth, mainly due to 28.1% yoy growth in current account deposits, leading to an 89bp yoy improvement in CASA ratio to 41.3% (33bp sequentially). The bank shed around ~`3,000cr of high cost bulk deposits during 4QFY2012, taking its total bulk deposits to ~`4,000cr (5.0% of overall deposits as against 8.6% in 3QFY2012). Cost of funds for the quarter decreased by relatively low 11bp qoq compared to a 22bp qoq decrease in yield on funds. Consequently, reported NIM witnessed a decline of 11bp qoq to 3.2%. The bank s fee income witnessed healthy traction during 4QFY2012, growing by healthy 22.5% yoy to `117cr. The bank s asset quality deteriorated sequentially during 4QFY2012, with both absolute gross and net NPAs increasing on a qoq basis. While gross NPAs increased from 2.1% to 2.3%, net NPA ratio increased from 0.5% to 0.8%. Slippage ratio increased on a sequential basis to 3.9%, much above the comfortable 11.5% levels. PCR for the bank dipped by 664bp, but remained at comfortable levels. The bank restructured ~`485cr of loans during the quarter, taking its outstanding restructured advances to `3,227cr (~5.6% of the overall loan book). Outlook and valuation: At the CMP, the stock is trading at attractive valuations, in our view, of 0.6x FY2014E ABV, which is even below its lower trading range for the past five years (its fiveyear range of 0.7 1.2x and median of 0.9x). On the back of high NIM, moderate fee income and better provisioning coverage than peers, we expect the bank to deliver a healthy 38.5% earnings CAGR over FY2012 14E. We value the stock at 0.7x and, hence, recommend an Accumulate rating with a target price of `55. Key financials Y/E March (` cr) FY2011 FY2012 FY2013E FY2014E NII 1,968 2,517 2,882 3,308 % chg 51.9 27.9 14.5 14.8 Net profit 330 431 742 827 % chg (24.8) 30.4 72.1 11.4 NIM (%) 2.8 3.2 3.2 3.2 EPS (`) 6.2 6.2 11.5 13.1 P/E (x) 7.8 7.8 4.2 3.7 P/ABV (x) 0.9 0.8 0.7 0.6 RoA (%) 0.4 0.5 0.7 0.7 RoE (%) 11.3 11.3 17.4 17.2 ACCUMULATE CMP `48 Target Price `55 Investment Period 12 Months Stock Info Sector Banking Market Cap (` cr) 2,851 Beta 1.0 52 Week High / Low 60/38 Avg. Daily Volume 66,874 Face Value (`) 10 BSE Sensex 16,420 Nifty 4,966 Reuters Code BMBK.BO Bloomberg Code BOMH@IN Shareholding Pattern (%) Promoters 79.0 MF / Banks / Indian Fls 11.1 FII / NRIs / OCBs 0.9 Indian Public / Others 9.0 Abs. (%) 3m 1yr 3yr Sensex (7.5) (11.3) 38.3 BOM (13.7) (16.3) 101.9 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 1
Exhibit 1: 4QFY2012 performance Particulars (` cr) 4QFY12 3QFY12 % chg (qoq) 4QFY11 % chg (yoy) Interest earned 1,898 1,871 1.5 1,546 22.8 on Advances / Bills 1,448 1,435 0.9 1,138 27.2 on investments 445 436 2.2 393 13.2 on balance with RBI & others 0 0 620.0 8 (95.7) on others 5 0 1,097.7 6 (15.8) Interest Expended 1,251 1,226 2.1 971 28.9 Net Interest Income 647 645 0.3 575 12.6 Other income 173 150 15.5 157 10.1 Other income excl. treasury 177 140 26.5 150 18.3 Fee Income 117 101 16.3 96 22.5 Treasury Income (4) 10 (144.8) 7 (159.7) Recoveries from written off a/c 34 22 56.1 41 (15.5) Others 26 17 49.2 13 90.9 Operating income 820 795 3.2 732 12.0 Operating expenses 570 370 54.2 666 (14.4) Employee expenses 423 233 81.0 530 (20.2) Other Opex 148 136 8.3 137 8.1 Preprovision Profit 250 425 (41.2) 66 279.6 Provisions & Contingencies 144 210 (31.3) 23 521.9 PBT 106 215 (50.9) 43 147.9 Provision for Tax 33 80 (58.8) (27) (223.1) PAT 73 136 (46.3) 69 4.9 Effective Tax Rate (%) 31.1 37.1 (593)bp (62.7) 9380bp Exhibit 2: 4QFY2012 Actual vs. Angel estimates Particulars (` cr) Actual Estimates Var. (%) Net interest income 647 666 (2.9) Other income 173 154 12.0 Operating income 820 821 (0.1) Operating expenses 570 386 47.7 Preprov. profit 250 435 (42.5) Provisions & cont. 144 294 (51.0) PBT 106 140 (24.6) Prov. for taxes 33 30 10.5 PAT 73 110 (34.1) May 10, 2012 2
Exhibit 3: 4QFY2012 performance analysis Particulars 4QFY12 3QFY12 % chg (qoq) 4QFY11 % chg (yoy) Advances (` cr) 56,060 49,872 12.4 46,881 19.6 Deposits (` cr) 76,529 69,926 9.4 66,845 14.5 CredittoDeposit Ratio (%) 73.3 71.3 193bp 70.1 312bp Current deposits (` cr) 8,452 6,528 29.5 6,599 28.1 Saving deposits (` cr) 23,180 22,145 4.7 20,433 13.4 CASA deposits (` cr) 31,632 28,673 10.3 27,032 17.0 CASA ratio (%) 41.3 41.0 33bp 40.4 89bp CAR (%) 12.4 11.8 68bp 13.4 (92)bp Tier 1 CAR (%) 8.3 7.1 125bp 8.0 29bp Profitability Ratios (%) Cost of deposits 6.6 6.5 11bp 5.7 91bp Yield on advances 11.5 11.8 (26)bp 10.5 98bp Yield on investments 7.3 7.2 18bp 7.1 21bp Yield on funds 9.3 9.5 (22)bp 8.4 89bp Cost of funds 6.1 6.2 (11)bp 5.3 85bp Reported NIM 3.2 3.3 (11)bp 3.1 4bp Costtoincome ratio 69.5 46.5 2302bp 91.0 (2148)bp Asset quality Gross NPAs (` cr) 1,297 1,045 24.1 1,174 10.5 Gross NPAs (%) 2.3 2.1 22bp 2.5 (19)bp Net NPAs (` cr) 470 272 72.8 619 (24.1) Net NPAs (%) 0.8 0.5 30bp 1.3 (48)bp Provision Coverage Ratio (%) 80.4 87.0 (664)bp 65.6 1480bp Slippage ratio (%) 3.9 1.1 280bp 2.2 172bp Business growth healthy in 4QFY2012 During 4QFY2012, the bank s advances grew at a healthy rate of 19.6% yoy, while deposits growth was moderate at 14.5% yoy. CASA deposits growth at 17.0% yoy was relatively high compared to overall deposit growth, mainly due to 28.1% yoy growth in current account deposits (as growth in savings account deposits remained moderate at 13.4% yoy), leading to an 89bp yoy improvement in CASA ratio to 41.3% (33bp sequentially). The bank shed around ~`3,000cr of high cost bulk deposits during 4QFY2012, taking its total bulk deposits to ~`4,000cr (5.0% of overall deposits as against 8.6% in 3QFY2012). Cost of funds for the quarter decreased by a relatively low 11bp qoq compared to the 22bp qoq decrease in yield on funds. Consequently, reported NIM witnessed a decline of 11bp qoq to 3.2%. May 10, 2012 3
Exhibit 4: Business growth healthy Exhibit 5: CASA ratio maintained at healthy 40%+ levels Adv. yoy chg (%) Dep. yoy chg (%) CDR (%, RHS) CASA ratio (%) CASA yoy growth (%, RHS) 30.0 25.0 20.0 15.0 70.1 69.1 72.1 71.3 73.3 74.0 72.0 70.0 42.0 39.0 15.7 15.9 12.4 13.6 17.0 20.0 15.0 10.0 10.0 5.0 16.3 5.6 11.6 14.2 24.0 12.5 14.0 11.4 19.6 14.5 68.0 36.0 40.4 40.6 40.7 41.0 41.3 5.0 66.0 33.0 Exhibit 6: Yield on funds decline sequentially by 22bp Exhibit 7: NIM declines by 11bp qoq (%) (%) 10.50 9.50 8.50 7.50 8.41 8.84 9.21 9.52 9.30 3.50 3.00 2.50 3.13 3.18 3.24 3.28 3.17 6.50 2.00 5.50 1.50 Healthy growth in fee income drives 18.3% yoy growth in non interest income The bank s fee income witnessed healthy traction during 4QFY2012, growing by healthy 22.5% yoy to `117cr. Treasury operations reported a loss of `4cr during the quarter as against profit of `7cr in 4QFY2011, while recoveries from writtenoff accounts decreased by 15.5% yoy to `34cr. Asset quality deteriorates sequentially; slippages surge The bank s asset quality deteriorated sequentially during 4QFY2012, with both absolute gross and net NPAs increasing on a qoq basis. While gross NPAs increased from 2.1% to 2.3%, net NPA ratio increased from 0.5% to 0.8%. Slippage ratio increased on a sequential basis to 3.9%, much above the comfortable 11.5% levels. PCR for the bank dipped by 664bp, but remained at comfortable levels. The bank restructured ~`485cr of loans during the quarter, taking its outstanding restructured advances to `3,227cr (~5.6% of the overall loan book). May 10, 2012 4
Exhibit 8: Slippages surge in 4QFY2012 Exhibit 9: Asset quality deteriorates sequentially (%) 4.0 3.2 2.5 1.7 1.0 0.2 2.2 1.6 0.8 1.1 3.9 3.0 2.0 1.0 Gross NPAs (%) Net NPAs (%) PCR (%, RHS) 100.0 86.0 87.0 80.4 73.2 80.0 65.6 60.0 40.0 2.5 1.3 2.4 1.2 2.2 0.6 2.1 0.5 2.3 0.8 (0.5) 20.0 ; Note: PCR including tech. writeoffs Staff expenses down on a yoy basis but increase sequentially Staff expenses decreased by 20.2% yoy to `423cr on account of high base in 4QFY2011. However, on a sequential basis, staff expenses increased by 81.0% on the back of actuarial provisions in 4QFY2012. Other expenses during the quarter increased by 8.1% yoy to `148. The bank s operating efficiency has been relatively low compared to peers, as reflected in the opex to average assets ratio of 2.7% in 4QFY2012 (2.0% in FY2012 highest amongst PSU banks). We have built in higher opex to average assets ratio of 1.9%, from 1.8% earlier, for both FY2013 and FY2014. Exhibit 10: Operating expenses trend for BOM Staff expenses (` cr) Other opex (` cr) 700 666 600 137 570 500 148 350 370 400 353 300 121 125 136 200 100 530 229 228 233 423 Exhibit 11: Cost ratios structurally higher for BOM Opex to average assets (%) Costtoincome ratio (%, RHS) 4.0 91.0 100.0 3.0 69.5 80.0 45.8 45.3 46.5 60.0 2.0 40.0 1.0 20.0 3.6 1.8 1.8 1.9 2.7 Capital infused by govt. and LIC, tieri ratio still at low 8.3% The bank had approached the government for an infusion of ~`860cr in 1QFY2012. In FY2012, the bank received `605cr via equity capital infusion from the government and LIC. As of 4QFY2012, the bank s total CAR stood at 12.43%, with tieri CAR of 8.31%. Accordingly, we have built in advances growth of 16.5% and 14.0% for FY2013 and FY2014, respectively. May 10, 2012 5
Investment arguments Healthy CASA share ensures lowcost 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 semiurban presence (accounting for 53.3% of the entire branch network). Branch expansion seems to be gradually picking up, with the addition of 53 branches in FY2012 and a target of adding 200 branches in FY2013. We expect the bank to maintain its CASA share at ~40% levels over FY201314. The benefit of healthy CASA ratio and a relatively low dependence on bulk deposits are reflected in the bank s relatively low cost of deposits compared to peers (at 6.56% for 4QFY2012). Attractive valuations At the CMP, the stock is trading at attractive valuations, in our view, of 0.6x FY2014E ABV, which is even below its lower trading range for the past five years (its fiveyear range of 0.7 1.2x and median of 0.9x). On the back of high NIM, moderate fee income and better provisioning coverage than peers, we expect the bank to deliver a healthy 38.5% earnings CAGR over FY2012 14E. We value the stock at 0.7x and, hence, recommend an Accumulate rating with a target price of `55. Exhibit 12: Key assumptions Particulars (%) Earlier estimates Revised estimates FY2013 FY2014 FY2013 FY2014 Credit growth 16.5 14.0 16.5 14.0 Deposit growth 14.0 14.0 14.0 14.0 CASA ratio 40.0 39.6 40.1 39.7 NIMs 3.5 3.4 3.2 3.2 Other income growth 7.3 6.1 9.1 6.2 Growth in staff expenses 13.0 13.0 12.0 12.0 Growth in other expenses 13.0 13.0 10.0 10.0 Slippages 2.8 2.8 2.3 2.3 Coverage 80.0 75.0 77.0 75.0 Source: Angel Research May 10, 2012 6
Exhibit 13: Change in estimates FY2013 FY2014 Particulars (` cr) Earlier Revised Earlier Revised Var. (%) Var. (%) estimates estimates estimates estimates NII 2,997 2,882 (3.9) 3,399 3,308 (2.7) Noninterest income 667 699 4.7 708 742 4.7 Operating income 3,665 3,580 (2.3) 4,107 4,050 (1.4) Operating expenses 1,648 1,829 11.0 1,862 2,037 9.4 Preprov. profit 2,016 1,751 (13.1) 2,245 2,013 (10.3) Provisions & cont. 884 653 (26.1) 852 790 (7.3) PBT 1,133 1,098 (3.1) 1,393 1,224 (12.1) Prov. for taxes 367 356 (3.1) 452 397 (12.1) PAT 765 742 (3.1) 941 827 (12.1) Source: Angel Research Exhibit 14: P/ABV band 140 Price(`) 0.4x 0.7x 1x 1.3x 1.6x 120 100 80 60 40 20 0 Apr04 Sep04 Feb05 Jul05 Dec05 May06 Oct06 Mar07 Aug07 Jan08 Jun08 Nov08 Apr09 Sep09 Feb10 Jul10 Dec10 May11 Oct11 Mar12 Aug12 Jan13 May 10, 2012 7
Exhibit 15: Recommendation summary Company Reco. CMP (`) Tgt. price (`) Upside (%) FY2014E P/ABV (x) FY2014E Tgt P/ABV (x) FY2014E P/E (x) FY201214E EPS CAGR (%) FY2014E RoA (%) FY2014E RoE (%) AxisBk Buy 979 1,587 62.1 1.3 2.2 7.0 16.4 1.5 20.3 FedBk Neutral 408 1.0 7.1 13.0 1.3 14.5 HDFCBk Accumulate 517 567 9.7 3.0 3.3 14.6 27.0 1.7 22.1 ICICIBk* Buy 813 1,201 47.8 1.3 1.9 10.0 20.4 1.5 16.0 SIB Neutral 23 1.1 6.1 4.5 0.8 17.5 YesBk Buy 326 470 43.9 1.7 2.4 7.9 22.5 1.4 23.3 AllBk Accumulate 152 166 9.3 0.6 0.7 3.6 6.2 0.9 17.6 AndhBk Neutral 105 0.6 4.1 3.3 0.9 16.0 BOB Buy 641 925 44.5 0.7 1.1 4.3 11.1 1.1 18.2 BOI Buy 353 411 16.3 0.7 1.0 4.4 23.3 0.8 16.9 BOM Accumulate 48 55 14.5 0.6 0.7 3.7 45.3 0.7 17.2 CanBk Buy 419 522 24.7 0.7 0.9 4.5 11.8 0.9 16.4 CentBk Neutral 77 0.7 3.9 45.7 0.5 13.8 CorpBk Buy 404 504 24.7 0.5 0.7 3.6 5.3 0.8 16.5 DenaBk Buy 84 118 39.8 0.5 0.7 3.3 6.2 0.9 16.9 IDBI# Buy 92 117 26.5 0.6 0.7 3.9 22.7 0.9 14.8 IndBk Buy 196 240 22.4 0.7 0.8 4.0 5.4 1.2 18.2 IOB Buy 82 101 23.7 0.5 0.6 3.8 28.3 0.6 13.9 J&KBk Neutral 854 0.8 4.4 8.8 1.4 18.6 OBC Buy 220 285 29.6 0.5 0.6 3.4 27.7 0.8 14.3 PNB Buy 754 1,117 48.1 0.7 1.1 4.3 10.3 1.0 18.1 SBI* Buy 1,844 2,593 40.6 1.1 1.6 6.8 23.6 1.0 19.1 SynBk Buy 91 128 41.1 0.5 0.8 3.3 8.7 0.8 17.1 UcoBk Neutral 68 0.8 4.7 7.0 0.5 13.4 UnionBk Buy 203 276 35.9 0.7 0.9 4.0 24.8 0.8 17.5 UtdBk Buy 58 85 46.3 0.4 0.6 2.7 11.4 0.7 15.9 VijBk Neutral 53 0.6 4.3 13.5 0.5 13.7 ; Note:*Target multiples=sotp Target Price/ABV (including subsidiaries), # Without adjusting for SASF May 10, 2012 8
Income statement Y/E March (` cr) FY09 FY10 FY11 FY12 FY13E FY14E Net Interest Income 1,257 1,296 1,968 2,517 2,882 3,308 YoY Growth (%) 11.3 3.2 51.9 27.9 14.5 14.8 Other Income 500 591 531 641 699 742 YoY Growth (%) 31.5 18.2 (10.2) 20.7 9.1 6.2 Operating Income 1,757 1,887 2,499 3,158 3,580 4,050 YoY Growth (%) 16.4 7.5 32.4 26.3 13.4 13.1 Operating Expenses 963 1,073 1,644 1,643 1,829 2,037 YoY Growth (%) 15.1 11.4 53.2 (0.1) 11.4 11.4 Pre Provision Profit 794 815 855 1,515 1,751 2,013 YoY Growth (%) 18.0 2.6 5.0 77.2 15.6 15.0 Prov. & Cont. 282 246 467 856 653 790 YoY Growth (%) 88.2 (13.0) 90.1 83.3 (23.7) 20.9 Profit Before Tax 511 569 388 659 1,098 1,224 YoY Growth (%) (2.2) 11.3 (31.8) 69.9 66.6 11.4 Prov. for Taxation 136 129 57 228 356 397 as a % of PBT 26.6 22.7 14.8 34.6 32.4 32.4 PAT 375 440 330 431 742 827 YoY Growth (%) 14.2 17.2 (24.8) 30.4 72.1 11.4 Preference Dividend 34 65 62 54 PAT avl. to Eq. shareholders 375 440 297 366 680 773 YoY Growth (%) 14.2 17.2 (32.5) 23.4 85.9 13.6 Balance sheet Y/E March (` cr) FY09 FY10 FY11 FY12 FY13E FY14E Share Capital 431 431 1,070 1,178 1,178 1,178 Equity 431 431 482 590 590 590 Preference 588 588 588 588 Reserve & Surplus 2,087 2,428 2,901 3,545 4,088 4,690 Deposits 52,255 63,304 66,845 76,529 87,243 99,457 Growth (%) 25.1 21.1 5.6 14.5 14.0 14.0 Borrowings 190 129 577 664 756 860 Tier 2 Capital 2,068 2,668 2,500 3,161 3,682 4,198 Other Liab. & Prov. 2,001 2,096 2,550 2,941 3,221 3,612 Total Liabilities 59,030 71,056 76,442 88,017 100,167 113,994 Cash Balances 3,881 5,315 3,846 4,535 3,490 3,978 Bank Balances 224 1,379 203 1,209 1,376 1,566 Investments 18,382 21,324 22,491 22,911 26,255 29,767 Advances 34,291 40,315 46,881 56,060 65,310 74,453 Growth (%) 17.1 17.6 16.3 19.6 16.5 14.0 Fixed Assets 655 660 667 601 663 732 Other Assets 1,597 2,063 2,354 2,701 3,074 3,499 Total Assets 59,030 71,056 76,442 88,017 100,167 113,994 Growth (%) 22.6 20.4 7.6 15.1 13.8 13.8 May 10, 2012 9
Ratio analysis Y/E March FY09 FY10 FY11 FY12 FY13E FY14E Profitability ratios (%) NIMs 2.5 2.1 2.8 3.2 3.2 3.2 Cost to Income Ratio 54.8 56.8 65.8 52.0 51.1 50.3 RoA 0.7 0.7 0.4 0.4 0.7 0.7 RoE 19.6 19.7 11.3 11.3 17.4 17.2 B/S ratios (%) CASA Ratio 35.7 36.9 40.4 41.3 40.1 39.7 Credit/Deposit Ratio 65.6 63.7 70.1 73.3 74.9 74.9 CAR 10.8 12.8 13.4 14.7 14.9 14.9 Tier I 5.5 5.7 8.0 8.5 8.5 8.4 Asset Quality (%) Gross NPAs 2.3 3.0 2.5 2.3 3.4 4.5 Net NPAs 0.8 1.6 1.3 0.8 1.2 1.5 Slippages 1.2 2.5 1.7 1.8 2.3 2.3 Loan Loss Prov. /Avg. Assets 0.3 0.4 0.5 0.8 0.6 0.7 Provision Coverage 65.9 54.7 63.2 80.4 77.0 75.0 Per Share Data (`) EPS 8.7 10.2 6.2 6.2 11.5 13.1 ABVPS (75% cover.) 46.3 48.6 56.6 62.6 71.8 82.0 DPS 1.5 2.0 2.0 1.0 2.0 2.5 Valuation Ratios PER (x) 5.5 4.7 7.8 7.8 4.2 3.7 P/ABVPS (x) 1.0 1.0 0.9 0.8 0.7 0.6 Dividend Yield 3.1 4.1 4.1 2.1 4.1 5.2 DuPont Analysis NII 2.3 2.0 2.7 3.1 3.1 3.1 () Prov. Exp. 0.5 0.4 0.6 1.0 0.7 0.7 Adj. NII 1.8 1.6 2.0 2.0 2.4 2.4 Treasury 0.3 0.3 0.1 0.0 0.0 0.0 Int. Sens. Inc. 2.1 1.9 2.1 2.0 2.4 2.4 Other Inc. 0.6 0.6 0.6 0.8 0.7 0.7 Op. Inc. 2.8 2.5 2.8 2.8 3.1 3.0 Opex 1.8 1.6 2.2 2.0 1.9 1.9 PBT 1.0 0.9 0.5 0.8 1.2 1.1 Taxes 0.3 0.2 0.1 0.3 0.4 0.4 RoA 0.7 0.7 0.4 0.5 0.8 0.8 Pref. Div. 0.0 0.1 0.1 0.0 RoA after Pref. Div 0.7 0.7 0.4 0.5 0.7 0.7 Leverage 28.0 29.1 27.6 24.8 23.7 23.6 RoE 19.6 19.7 11.3 11.3 17.4 17.2 May 10, 2012 10
Research Team Tel: 022 39357800 Email: 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 Bank of Maharashtra 1. Analyst ownership of the stock No 2. Angel and its Group companies ownership of the stock No 3. Angel and its Group companies' Directors ownership of the stock No 4. Broking relationship with company covered No Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors Ratings (Returns): Buy (> 15%) Accumulate (5% to 15%) Neutral (5 to 5%) Reduce (5% to 15%) Sell (< 15%) May 10, 2012 11