Bank of Maharashtra announced robust Q2 FY27 results, with net profit soaring 41% year-on-year. The bank successfully met all its guidance numbers across growth, profitability, asset quality, and capital adequacy. Key highlights include a 25% business growth, 30% advances growth, and improved asset quality with GNPA reducing to 1.25%. The bank also saw a significant improvement in ROE to 26.98%.
Bank of Maharashtra Reports Strong Q2 FY27 Earnings
Bank of Maharashtra has reported a commendable performance for the second quarter of FY27, with net profit surging by 41% year-on-year. The bank achieved its stated guidance for growth, profitability, asset quality, and capital adequacy, marking a consistent trend of meeting financial targets.
Key Financial and Business Highlights
The bank’s overall business grew by 25% in the September 2026 quarter. Advances saw a healthy 30% year-on-year growth, with a significant contribution from both domestic and GIFT City IBU operations. Domestic credit growth stood at 23%, while large credit grew by 38%.
Deposit growth kept pace, rising by 22% year-on-year, with CASA growing by 12%. The bank added approximately INR19,000 crores in absolute CASA terms.
Asset Quality Improvement
Asset quality witnessed significant improvement, with Gross Non-Performing Assets (GNPA) reducing by 47 basis points to stand at 1.25%. Net Non-Performing Assets (NNPA) also decreased by 6 basis points to 0.12%. The Provision Coverage Ratio (PCR) remains strong at 98.53%.
Profitability and Capital Adequacy
Operating profit grew by 31% year-on-year, while net profit saw a 41% increase. Return on Equity (ROE) improved sharply by 440 basis points to reach 26.98%. Return on Assets (ROA) improved by 20 basis points to 2.02%.
Capital adequacy ratios remain healthy, with CET1 at 15.61% and CRAR at 18.51%. The bank maintained a strong Liquidity Coverage Ratio (LCR) of 123% and Net Stable Funding Ratio (NSFR) of 127%.
Sectoral Performance
The bank reported improved stress levels across key sectors including Retail, Agriculture, and MSME. The SMA 1 and 2 portfolio saw a reduction of 50 basis points, standing at 1.37%. The NPA stress above INR5 crores is at approximately 0.13%.
Resource Management
Cost of deposits reduced by 4 basis points year-on-year to 4.38%, and the overall cost of funds decreased by 25 basis points to 4.07%. The bank has been actively managing its funding mix, including utilizing refinance windows and raising infra bonds.
Future Outlook
The bank expressed confidence in maintaining its credit growth momentum, aiming for over 18% growth. The pipeline for corporate proposals stands at approximately INR23,000 crores, with expected disbursements of INR10,000 crores by March 2027. The bank is strategically focusing on sectors like infrastructure, renewable energy, and data centers, aligning with the ‘Viksit Bharat’ vision.
Addressing concerns about the agricultural sector, the bank noted that stress levels have reduced, and growth in the agri book is primarily from secured gold loans. The bank is actively monitoring the drought situation and is prepared to implement restructuring as per SLBC guidelines.
Source: BSE
