Bank of Maharashtra Q2FY26 Net Profit Rises 23% YoY to ₹1,633 Crore; Stock Up Over 8.40%

Mumbai, October 15, 2025: The shares of Bank of Maharashtra (NSE: MAHABANK, BSE: 532525) surged massively on Wednesday as the bank reported a significant 23.09% year-on-year increase in standalone profit (at ₹1633 crore) for the second quarter of the current financial year. At 01:20 PM, the stock traded at ₹59.74 per share (up by 8.40% from the previous day’s closing price). The stock has surged by close to 30% in the past three months.

Key Financial Highlights and Performance Assessment

As underlined, the current quarter witnessed strong growth in income and revenues for the bank. The total income rose by 17.1% (year on year) and reached ₹7974 crore, and the net profit shot up by 23.09% (and reached ₹1633 crore). There was an improvement in the operating profits, reaching ₹2574 crore (up by 16.91% year on year). The net interest income was also up by 15.71% and reached ₹3248 crore.

The bank also reported a critical improvement in the cost-to-income ratio to 37.10%, reflecting operational efficiency. ROA improved to 1.82%, though ROE saw a slight decline to 22.58%.

Business Growth & Asset Quality

The bank showcased robust business and asset quality growth in FY25, with total business rising 14.2% YoY to ₹5,63,909 crore, driven by deposit growth of 12.13% and gross advances up 16.83%. The CASA ratio improved to 50.35%, reflecting a strong retail deposit base. Gross NPA reduced to 1.72% and net NPA to 0.18%, supported by a healthy provision coverage ratio of 98.34%.

Capital adequacy (CRAR) strengthened to 18.13%. Segmentally, Retail, Agriculture, and MSME (RAM) grew 16.94% YoY, with retail loans surging 37.45%, underscoring sustained credit demand. A ₹1,200 crore Covid-19 provision buffer remains intact, enhancing balance sheet resilience.

Market Reaction

As reported, the share traded at ₹59.74 (up by 8.40% from the previous day’s closing). The stock started strong today and went up consistently in the afternoon session. The trading volume was extraordinarily high (at 6.72 crore shares traded). The company’s PE ratio is 7.28 compared to sectoral average of 13.95.

Management Commentary

The company’s management underlined that the increased profits are attributed to a sustained growth in retail and MSME lending. The profitability metrics have improved, along with operational quality, due to operational discipline and efficient capital deployment.

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

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