Acuite Ratings & Research Limited has reaffirmed its ratings on Bank of Maharashtra’s securities as of December 18, 2025. The ratings apply to various Basel III bonds, with outlooks remaining stable. These ratings reflect the bank’s strong government ownership, favorable liability profile, and comfortable capitalization levels, as well as improvements in asset quality and operating performance.
Ratings Reaffirmed
Acuite Ratings & Research Limited has reaffirmed the long-term rating of ‘ACUITE AA’ on the Rs. 2000.00 Cr. Basel III Additional Tier-I Bonds, with a ‘Stable’ outlook. Additionally, the long-term rating of ‘ACUITE AA+’ has been reaffirmed on the Rs. 3000.00 Cr. Basel III Tier-II Bonds, also with a ‘Stable’ outlook. These reaffirmations were announced on December 18, 2025.
Rationale for the Ratings
The ratings consider the bank’s strong ownership by the Government of India (79.60% stake as of September 30, 2025), demonstrated capital support, a favorable and stable liability profile with a better-than-industry-average CASA share of 50.35% as of September 30, 2025, and comfortable capitalization levels, with a CAR of 18.13% and Tier I of 14.96%.
Asset Quality and Performance
Improvements in asset quality due to lower slippages have resulted in a GNPA of 1.72% as of September 2025. The Provision Coverage Ratio (PCR) stood at 98.34% as of September 2025. Driven by credit growth and healthy margins, the bank reports improved operating performance.
Key Monitorable
Continued support from the Government of India and the bank’s ability to maintain improvements in its credit profile are key factors for monitoring.
Breakdown of Rated Instruments
The reaffirmations cover a range of instruments including:
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| ISIN | Instrument Details | Coupon Rate | Rated Amount (Rs. Crore) | Rating Action |
|---|---|---|---|---|
| INE457A08134 | Basel III AT I Bonds (Series-3) | 8.74% | 880.00 | ACUITE AA/Stable |
| INE457A08118 | Basel III AT I Bonds (Series-2) | 8.74% | 710.00 | ACUITE AA/Stable |
| INE457A08100 | Basel III AT I Bonds (Series-1) | 8.75% | 290.00 | ACUITE AA/Stable |
| INE457A08159 | Basel III Tier II Bonds (Series-7) | 7.99% | 259.00 | ACUITE AA+/Stable |
| INE457A08142 | Basel III Tier II Bonds (Series-6) | 7.98% | 515.00 | ACUITE AA+/Stable |
| INE457A08126 | Basel III Tier II Bonds (Series-5) | 8.00% | 348.00 | ACUITE AA+/Stable |
| INE457A08084 | Basel III Tier II Bonds (Series-3) | 8.00% | 100.00 | ACUITE AA+/Stable |
| INE457A08076 | Basel III Tier II Bonds (Series-2) | 8.00% | 205.00 | ACUITE AA+/Stable |
| INE457A08068 | Basel III Tier II Bonds (Series-1) | 7.75% | 200.70 | ACUITE AA+/Stable |
Source: BSE
