Bank of Maharashtra reported robust financial results for FY 2025-26, marked by a 27% year-on-year growth in net profit, totaling ₹7,019 crore. The bank achieved key performance milestones, including a 17% growth in total business and a 52.51% CASA ratio. Management highlighted a successful strategic shift toward core banking operations, significant asset quality improvements, and the successful scaling of its GIFT City international operations to achieve early profitability.
Key Financial Performance
During the FY 2025-26 earnings call held on April 20, 2026, management announced a year of exceptional performance. The bank’s operating profit grew by 16% to ₹10,826 crore, while net profit surged by 27% to reach ₹7,019 crore. Total business expanded by 17%, with advances recording a notable 22% growth. The bank maintained a strong CASA ratio of 52.51%, reflecting its continued focus on building a stable, low-cost deposit base.
Asset Quality and Profitability Metrics
Asset quality showed significant improvement, with Gross NPA falling to 1.45% and Net NPA declining to 0.13%. The bank also successfully managed stress levels, with SMA-1 and SMA-2 portfolios improving by 61 basis points. For the full year, the bank achieved a Return on Assets (ROA) of 1.86% and a Return on Equity (ROE) of 23.19%, both comfortably exceeding initial guidance targets. The net interest margin (NIM) closed the year at 3.91%.
Strategic Growth Initiatives
The bank’s strategy is centered on profitable growth rather than mindless top-line expansion. Key focus areas included the RAM (Retail, Agriculture, and MSME) segment, where retail grew by 32%. The bank successfully rebalanced its portfolio and is currently executing a Project 321 branch expansion initiative, with 183 branches already functional. Furthermore, the bank’s GIFT City IBU reached a significant milestone by achieving a positive bottom line within its first year of operation.
Forward Outlook and Guidance
Looking ahead to FY26-27, the bank has provided ambitious guidance: 16% to 17% growth in total business and 18% growth in advances. The bank plans to maintain a NIM of 3.75% and an ROA of 1.80%. Management remains committed to prudent provisioning, having already established a ₹200 crore buffer for potential global geopolitical uncertainties, ensuring the bank remains well-capitalized with a CRAR of 18.36%.
Source: BSE
