Bank of Maharashtra reported strong Q3FY26 results, exceeding guidance on key metrics like total business growth (17.24%) and advances (20%). CASA ratio remained above 50%. The bank achieved its highest-ever quarterly profit of ₹1,779 crores. Gross NPA decreased to 1.60%, and net NPA improved to 0.15%. A 10% interim dividend was approved. The bank is focusing on low-cost deposits and expanding branch network.
Strong Financial Performance
Bank of Maharashtra (BOM) finalized its Q3FY26 results, showcasing a consistent performance and one of the best quarters in terms of profitability. The bank exceeded its initial guidance for the year across various parameters.
Key Financial Metrics
The bank achieved the following:
- Total business grew by 17.24% year-on-year, reaching ₹5,95,000 crores.
- Total deposits increased by 15.3%.
- Advances increased by 20%.
- CASA share maintained above 50%.
- RAM to Corporate share stood at 63-37.
- Retail Home Loans grew at 28%; vehicle loans, 54%; Gold Loans, 56%. Retail overall, 36%.
Asset Quality Improvement
The bank demonstrated effective stress management in its loan book. Stress numbers improved, with overall stress at 3.35%, including SMA1 plus 2 at 1.69%. Gross NPA decreased from 1.72% to 1.60%, and net NPA improved from 0.18% to 0.15%.
Profitability and Returns
BOM reported strong profitability and returns:
- NIM at 3.87%.
- ROA at 1.86%.
- ROE at 23.79%.
- Cost-to-income ratio at 37.19%.
The bank achieved its highest-ever quarterly profit of ₹1,779 crores, with 9-month net profit exceeding ₹5,000 crores (₹5,005 crores). CRAR stood at 17.06% and CET1 at 13.10%.
Strategic Focus and Outlook
Bank of Maharashtra is strategically focused on raising low-cost deposits and has consciously allowed high-cost bulk deposits to decrease. The bank is exploring alternative sources of raising resources, including refinance transactions. A 10% interim dividend has been approved by the Board.
Branch Expansion and Future Growth
The bank is undertaking a project to open 321 new branches within 18 months, with 116 already functional. The Board has approved a plan to open 1,000 branches in the next five years, to be implemented in two phases. This expansion is expected to sustain the bank’s growth rate and profitability.
Source: BSE
