Bank of Maharashtra’s Net Profit Up by 23.14% in June Quarter
By Ankur Chandra | Published at: Jul 15, 2025 03:03 PM IST
Pune, July 15, 2025: Bank of Maharashtra (NSE: MAHABANK, BSE: 532525) has announced its financial results for the first quarter of fiscal year 2026 (Q1 FY26) It has reported a 23.14% year-on-year (YoY) increase in net profit to ₹1,593 crore. Its gross NPA at the end of the quarter stood at 1.74% while its net NPA stood at 0.18%.
Key Financial Highlights (Q1FY26 vs Q1FY25)
| Metric | Q1FY25 | Q1FY26 | YoY Change |
|---|---|---|---|
| Total Income | ₹6,769 Cr | ₹7,879 Cr | +16.40% |
| Operating Profit | ₹2,294 Cr | ₹2,570 Cr | +12.03% |
| Net Profit | ₹1,293 Cr | ₹1,593 Cr | +23.14% |
| Net Interest Income (NII) | ₹2,799 Cr | ₹3,292 Cr | +17.60% |
| Fee-based Income | ₹368 Cr | ₹399 Cr | +8.49% |
| Net Interest Margin (NIM) | – | 3.95% | – |
| Return on Assets (ROA) | 1.72% | 1.80% | – |
| Return on Equity (RoE) | 27.62% | 23.00% | – |
| Cost-to-Income Ratio | 37.87% | 37.57% | Improved |
Asset Quality at Best-Ever Levels
Bank of Maharashtra has significantly strengthened its asset profile, achieving record-low Gross and Net Non-Performing Assets (NPA) ratios.
| Asset Quality Metrics | Q1FY25 | Q4FY25 | Q1FY26 |
|---|---|---|---|
| Gross NPA | 1.85% | 1.74% | 1.74% |
| Net NPA | 0.20% | 0.18% | 0.18% |
| Provision Coverage Ratio | 98.36% | 98.26% | 98.36% |
A low Net NPA ratio indicates that the bank has effectively managed its bad loans after making provisions, reflecting a healthier loan book. A high Provision Coverage Ratio (PCR) suggests that the bank has set aside a significant portion of funds to cover potential losses from bad loans, indicating strong financial prudence.
Business Growth & Segment Performance
- The bank reported robust growth in its overall business and key segments:
- Total Business expanded by 14.63% YoY, reaching ₹5.46 lakh crore.
- Total Deposits rose by 14.07% to ₹3.05 lakh crore, indicating strong customer trust and deposit mobilisation efforts.
- Gross Advances grew by 15.34% to ₹2.41 lakh crore, driven by healthy credit demand.
- The CASA (Current Account Savings Account) Ratio improved marginally to 50.07%, reflecting a stable and low-cost deposit base.
- The Credit-Deposit (CD) Ratio stood at 79.04%..
RAM Segment (Retail, Agriculture & MSME):
| Segment | Q1FY25 | Q1FY26 | YoY Growth |
|---|---|---|---|
| Retail Advances | ₹53,150 Cr | ₹71,966 Cr | +35.37% |
| MSME Advances | ₹42,550 Cr | ₹44,967 Cr | +5.65% |
| RAM Share of Advances | – | 62.10% | – |
Balance Sheet Summary (₹ in crore)
| Component | Q1FY25 | Q1FY26 |
|---|---|---|
| Total Assets | ₹3,05,232 Cr | ₹3,67,293 Cr |
| Capital | ₹7,081 Cr | ₹7,692 Cr |
| Reserves & Surplus | ₹14,083 Cr | ₹22,501 Cr |
| Borrowings | ₹9,448 Cr | ₹23,730 Cr |
| Investments | ₹76,374 Cr | ₹93,779 Cr |
| Net Advances | ₹2,05,573 Cr | ₹2,37,326 Cr |
Capital Adequacy (Basel III)
- Total CRAR: 20.06%
- Common Equity Tier I (CET1): 15.62%
- Tier I Capital: 16.63%
Stock Information (As of July 15, 2025, 1:30 PM IST)
| Detail | Value |
|---|---|
| Current Price | ₹57.14 (+1.91%) |
| Day’s Range | ₹56.22 – ₹57.64 |
| 52-Week Range | ₹42.00 – ₹70.80 |
| VWAP | ₹56.99 |
| Traded Volume | 165.33 lakh shares |
| Traded Value | ₹94.22 Cr |
| Market Capitalisation | ₹43,857.25 Cr |
| Free Float Market Cap | ₹8,966.35 Cr |
| P/E Ratio (TTM) | 7.81 |
| Index | NIFTY MIDCAP 100 |
| Industry | Public Sector Bank |
| % Deliverables | 51.23% |
| Date of Listing | 12-Apr-2004 |
Management Outlook
While no direct quote was provided in the press release, the bank’s performance clearly reflects strong strategic execution in terms of deposit mobilisation, expansion of the loan book, and significant improvements in credit quality. The management is expected to provide further detailed insights during its investor presentation, which will be available on the bank’s official website. This performance aligns with the broader positive trend seen across several public sector banks in recent quarters.
What’s Ahead?
With robust Q1FY26 results and record-low NPAs, Bank of Maharashtra is well-positioned to capitalise on rising credit demand. Continued focus on the RAM (Retail, Agriculture, MSME) segment, stable CASA ratio, and strong provisioning provide a solid foundation for sustainable growth. The healthy capital adequacy ratio above 20% supports future lending and expansion. However, future performance will depend on maintaining asset quality, managing rising borrowing costs, and navigating macroeconomic challenges. Investors will watch upcoming quarters for consistent execution and further improvement in return ratios.
About the Company
Bank of Maharashtra is a public sector bank headquartered in Pune and listed on the NSE and BSE. It offers retail, corporate, MSME, and agricultural banking services. The bank has consistently demonstrated strong financial discipline, digital adoption, and efficient credit underwriting.
REF: https://nsearchives.nseindia.com/corporate/MAHABANK_15072025130110_LettertoSE_Press_release_15072025.pdf
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