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Last Updated : Aug 19, 2015 07:09 PM IST | Source: Moneycontrol.com

Arihant capital neutral on Bank of Maharashtra

Arihant capital markets has recommended a neutral rating on Bank of Maharashtra with a target price of Rs 38, in its research report dated August 18, 2015.

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Arihant capital markets' research report on Bank of Maharashtra

Bank of Maharashtra Q1FY16 numbers were below our estimates. Bank performed deficiently on account of provisions & contingencies. NII increased by 11.9% on YoY basis. Other income increased by 7.6 %. However, quality of assets deteriorated with most of the NPAs coming from small borrowers which is a cause of concern.

Outlook: We have became cautious on Bank of Maharashtra post its first quarter (Q1FY15) results due to deteriorating asset quality. We have assumed Advances as well as deposits to grow by 11% in FY16. At CMP of Rs 36 the bank is trading at 0.57x its FY16 ABV of Rs 63. We have Neutral rating on the bank with a price target of Rs 38 based on 0.6x P/ABV FY16E, say Arihant capital market's research report.

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First Published on Aug 19, 2015 07:08 pm