Bank of Maharashtra Q2FY26 Net Profit Increases 23% to ₹1,633 Crore; Stock Drops 4.8% After Results

Pune, 14th October 2025 – Bank of Maharashtra (NSE: MAHABANK, BSE: 532525) reported a 23.09% year-over-year (YoY) increase in net profit at ₹1,633 crore for the quarter ended September 30, 2025, courtesy of robust credit growth, improving margins, and enhanced asset quality. Even with the robust financials, the stock fell 4.81% to ₹54.81 on Tuesday as investors offloaded stocks after a recent price surge.

Strong Q2FY26 Financial Performance

The overall income of the bank grew 17.1% to ₹7,974 crore in Q2FY26 from ₹6,809 crore in Q2FY25. Operating profit went up 16.91% to ₹2,574 crore, and net profit rose to ₹1,633 crore from ₹1,327 crore a year ago. Net Interest Income (NII) rose 15.71% to ₹3,248 crore, evidencing good loan growth and steady net interest margins. The cost-to-income ratio reduced to 37.10% from 38.81%, reflecting improving operational efficiency.

Return on Assets (ROA) improved to 1.82% from 1.74%, and Return on Equity (ROE) was steady at 22.58%. Net Interest Margin (NIM) of the bank remained unchanged at 3.85%, and Provision Coverage Ratio (PCR) was impressive at 98.34%, exemplifying prudent risk management.

Balance Sheet Growth and Asset Quality

Bank of Maharashtra’s business increased by 14.20% YoY to ₹5.63 lakh crore as of September 2025, driven by strong deposit and credit growth. Deposits increased 12.13% to ₹3,09,791 crore and gross advances by 16.83% to ₹2,54,118 crore.

The CASA deposits increased by 14.54% to ₹1,55,979 crore, taking the CASA ratio to 50.35%, one of the highest in the public sector banking space. Asset quality also improved as Gross NPA reduced to 1.72% and Net NPA remained at 0.18%. The bank’s capital adequacy ratio (CRAR) was 18.13% and CET-1 ratio was 14.05%, which reflects a very strong capital position.

Stock Market Reaction

Even after strong quarterly numbers, the stock went under selling pressure after results. The shares declined 3.35% to close at ₹55.65 against the last close of ₹57.59. The stock had an intraday low of ₹54.66 and high of ₹57.99, and over 205 lakh shares were traded with a turnover of ₹115 crore.

The stock has a market capitalization of ₹42,142 crore and a free-float market cap of ₹8,618 crore. Over the past one year, Bank of Maharashtra’s shares have gained 1.55%, with a 206% rise in three years and nearly 394% in five years, underscoring its strong long-term performance despite near-term corrections.

Long-Term Price Trend Snapshot

The scrip has maintained consistent growth momentum, posting 20.4% returns in the last six months and 4.54% year to date. The 52-week high was at ₹59.85 (December 5, 2024), and the low was at ₹42.00 (April 7, 2025). The stock is available at a price-to-earnings (P/E) multiple of 7.6 and is included in the Nifty Midcap 150 index.

REF: https://nsearchives.nseindia.com/corporate/MAHABANK_14102025150706_Notice_to_SE-Pressrelease.pdf

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