Bank of Maharashtra announced robust Q2 and H1 FY2026 results, demonstrating strong growth across key metrics. Total business increased by 14% to ₹5.63 lakh crore. The bank’s net profit rose by 23% to ₹1,633 crore. Asset quality improved, with gross NPAs declining to 1.72% and net NPAs at 0.18%. S&P Global upgraded the bank’s rating, indicating enhanced financial strength and stability.
Financial Performance Highlights
Bank of Maharashtra reported significant financial achievements for Q2 and H1 FY2026:
- Total business grew by 14% reaching ₹5.63 lakh crore.
- Deposits increased by 12.13% and advances grew by nearly 17%.
- The CD ratio improved to 82%.
- Net profit rose by 23% to ₹1,633 crore.
- Operating profit increased by 17% to ₹2,500 crore.
- Net Interest Income (NII) increased by almost 16%.
- Net Interest Margin (NIM) stood at a healthy 3.85%.
- Return on Assets (ROA) improved to 1.82%.
Asset Quality and Capital Adequacy
The bank also showcased improved asset quality and capital management:
- Gross Non-Performing Assets (NPAs) declined to 1.72%.
- Net NPAs decreased to 0.18%.
- Provision coverage ratio stood at 98.34%.
- Capital adequacy improved to 18.13%, with Tier-1 at nearly 15%.
Strategic Developments
Key strategic initiatives and developments include:
- S&P Global assigned a BBB- rating, a three-notch improvement.
- The GIFT IBU commenced operations and closed the half-year with ₹100 million in business.
- FII holding increased to 2.58%.
- The bank plans to open 321 new branches in the next 18 months under Project 321.
Guidance and Outlook
The bank has provided a NIM guidance of 3.75%. The management aims to maintain and exceed its guidance quarter-on-quarter, focusing on sustaining growth and profitability.
Segment Performance
The bank is rebalancing its portfolio with RAM (Retail, Agriculture, and MSME) at a 62:38 ratio, aiming for a 60:40 ratio (+/- 2%). Retail is growing well, while focus is being given to investment credit in Agriculture.
Agricultural NPA Strategy
The bank acknowledges the increase in agricultural NPA and is focusing on resolving the issue. The strategy includes a shift toward investment credit and strict compliance with regulatory guidelines. The bank expects the percentage to normalize in the following quarter.
Source: BSE