Mahalaxmi Bikas Bank Limited (MLBL) Shows Resilient Q4 Performance with Stable Margins

Mahalaxmi Bikas Bank Limited (MLBL) has published its audited Q4 results for FY 2024/25, reflecting a decline in revenue compared to last year but steady profitability, improved cost control, and robust capital adequacy.

The bank recorded total revenue of Rs. 4.95 billion, a 20.91% year-over-year decline from Rs. 6.46 billion in Q4 2023/24. Revenue contraction persisted throughout the year, with consecutive quarterly drops, though the pace of decline has moderated in recent quarters.

Gross profit stood at Rs. 2.01 billion, yielding a margin of 40.76%, higher than last year’s 29.90% and consistent across FY 2024/25. Net income came in at Rs. 506.67 million, slightly higher than Rs. 470.14 million in the same period last year, supported by efficient interest spread management. The net margin improved to 10.22%, compared to 7.28% in Q4 2023/24.

For shareholders, EPS (annualized) was Rs. 11.79, modestly up from Rs. 11.27 last year, while the PE ratio stood at 34.91, indicating fair market valuation. Book Value per Share strengthened to Rs. 166.04, up from Rs. 160.44 last year, and the market value per share closed at Rs. 411.67, higher than last year’s Rs. 352.00. Dividend distribution has not been announced this year, while last year the bank provided Rs. 7.00 per share.

Financial Sector Indicators

MLBL’s balance sheet indicators point to stability:

• Capital Fund to RWA improved to 17.49%, compared to 15.01% last year, reflecting strong capital adequacy.

• NPL Ratio remained stable at 4.86%, compared to 4.58% a year earlier, showing consistent asset quality.

• Loan Loss Provision coverage rose to 112.82%, from 105.29% last year, ensuring full coverage of non-performing loans.

• Cost of Funds fell to 4.56%, down significantly from 7.03%, easing funding expenses.

• Credit-to-Deposit Ratio stood at 83.98%, a healthy level compared to 80.83% last year.

• Base Rate decreased to 6.94%, from 9.25% last year, improving borrower affordability.

• Net Interest Spread remained steady at 4.48%, sustaining profitability in lending.

• Net Liquid Asset stood at 29.38%, slightly lower than 33.53% last year but still robust.