S&P Global Ratings has reaffirmed Bank of Maharashtra’s ‘BBB’ long-term and ‘A-2’ short-term issuer credit ratings as of November 27, 2025. The ratings reflect the bank’s strong capitalization, high likelihood of government support, and stable deposit base. However, concentration risk in its loan book and higher credit losses relative to the industry average remain key challenges. The outlook remains stable.
Ratings Reaffirmed
Bank of Maharashtra announced that S&P Global Ratings reaffirmed its credit ratings on November 27, 2025. The long-term issuer credit rating is maintained at ‘BBB’, and the short-term issuer credit rating remains at ‘A-2’. This announcement highlights the bank’s financial stability and creditworthiness.
Key Strengths and Risks
The S&P report acknowledges several key strengths for Bank of Maharashtra. These include a very high likelihood of government support, solid capitalization, and a stable deposit base supporting its funding profile and liquidity.
Despite these strengths, the bank faces certain risks, including its relatively small size and concentration risk within its loan book. Furthermore, it experiences higher credit losses compared to the industry average, requiring careful management and mitigation strategies. The stable outlook reflects S&P’s view that Bank of Maharashtra will maintain capital and sustain its solid capital position, as well as maintain solid funding and liquidity, supported by high customer confidence over the next two years. S&P anticipates the bank’s risk-adjusted capital (RAC) ratio to strengthen to 10.5%-11.0% over the next two years. The bank’s current and savings account deposits are at about 50.4% of the total deposits remain significantly higher than domestic peers. Source: BSEOutlook
Capitalization
