Mumbai: Public sector lender Bank of Maharashtra (BoM) reported a strong financial performance for the first quarter of FY2026-27, with significant growth in profitability, income, and asset quality improvement.
The bank posted a standalone net profit of ₹2,020.19 crore in Q1 FY27, registering a 26.8% year-on-year growth compared to ₹1,592.76 crore in the same quarter of the previous financial year.
The bank also strengthened its balance sheet with a healthy Capital Adequacy Ratio of 18.64% and continued improvement in non-performing assets.
Bank of Maharashtra Q1 FY27 Financial Performance
For the quarter ended June 30, 2026, Bank of Maharashtra reported strong growth across key financial parameters.
Key Financial Highlights
- Net Profit: ₹2,020.19 crore, up 26.8% YoY from ₹1,592.76 crore
- Total Income: ₹9,063.29 crore, up 15% from ₹7,878.82 crore
- Interest Earned: ₹8,034.63 crore, up 13.9% from ₹7,053.91 crore
- Operating Profit: ₹3,117.17 crore, up 21.3% from ₹2,569.94 crore
- Basic Earnings Per Share (EPS): ₹2.63 (not annualised)
- Net Worth: ₹32,780.38 crore as of June 30, 2026
The bank’s profitability crossed the ₹2,000 crore mark, supported by higher interest income and improved operational efficiency.
Asset Quality Continues to Strengthen
Bank of Maharashtra maintained strong asset quality during the quarter, with further improvement in stressed assets.
Asset Quality Highlights
- Gross NPA Ratio: Improved to 1.45% from 1.74% in June 2025
- Net NPA Ratio: Improved to 0.13% from 0.18%
- Provision Coverage Ratio: Increased to 98.55% from 98.36%
The low net NPA level highlights the bank’s strong recovery efforts and prudent risk management practices.
Strong Capital Position and Key Ratios
The bank remained well-capitalised with capital levels significantly above regulatory requirements.
Key Ratios
- Capital Adequacy Ratio (Basel III): 18.64%
- Common Equity Tier 1 (CET1) Ratio: 15.56%
- Return on Assets (Annualised): 1.90%
- Operating Profit Margin: 34.39%
- Net Profit Margin: 22.29%
The strong capital base provides additional support for future business expansion.
Segment Performance: Retail Banking Leads Revenue Contribution
Bank of Maharashtra recorded strong performance across its major business segments during Q1 FY27.
- Retail Banking
- Revenue: ₹3,950.30 crore
- Segment Result: ₹660.45 crore
- Corporate/Wholesale Banking
- Revenue: ₹3,009.37 crore
- Segment Result: ₹842.73 crore
- Treasury Operations
- Revenue: ₹2,037.06 crore
- Segment Result: ₹540.25 crore
- Digital Banking
- Revenue: ₹0.32 crore
- Segment Result: Loss of ₹0.33 crore
- Other Banking Operations
- Revenue: ₹66.50 crore
- Segment Result: ₹33.33 crore
Retail Banking remained the largest revenue contributor, while corporate banking delivered a strong segment result.
Domestic Operations Drive Majority of Revenue
The bank’s business continued to be primarily driven by domestic operations.
- Domestic Operations Revenue: ₹8,972.60 crore
- International Operations Revenue: ₹90.69 crore
Domestic banking activities remained the key contributor to overall earnings.
Consolidated Results Show Stable Performance
Including its subsidiary The Maharashtra Executor and Trustee Company Private Limited and associate Maharashtra Gramin Bank, the consolidated performance remained strong.
Consolidated Q1 FY27 Highlights
- Net Profit after Minority Interest: ₹2,023.32 crore
- Total Income: ₹9,063.53 crore
- Operating Profit: ₹3,117.63 crore
- Net Worth: ₹32,900.29 crore
Other Key Developments During Q1 FY27
COVID-19 Provision Reversal
During the quarter, Bank of Maharashtra reversed ₹250 crore of COVID-19-related contingency provisions due to improving economic conditions and better asset quality.
The bank continues to maintain COVID-related provisions of ₹760 crore as of June 30, 2026.
Fraud Cases Reported
The bank reported 47 fraud cases amounting to ₹106.22 crore during the quarter.
There were no losses suffered by the bank due to digital payment fraud cases.
For fraud cases amounting to ₹103.86 crore, the bank maintained provisions of ₹103.84 crore.
RBI Penalty
The Reserve Bank of India imposed a penalty of ₹0.02 crore on the bank during the quarter.
Loan Acquisition and Co-Lending Growth
Bank of Maharashtra acquired non-defaulting loans through assignment amounting to ₹4,658.34 crore during the quarter.
The bank also expanded its co-lending partnerships:
- Number of Co-Lending Partners: 9
- Total Co-Lending Portfolio: ₹3,056.80 crore
- Weighted Average Interest Rate: 9.49%
The performance of loans under co-lending arrangements remained satisfactory.
Project Finance Portfolio Update
The bank continued supporting infrastructure and project financing activities.
Project Finance Highlights
- Projects under implementation at beginning of quarter: 188 accounts worth ₹10,950.45 crore
- Projects sanctioned during quarter: 33 accounts worth ₹366.98 crore
- Projects achieving DCCO during quarter: 27 accounts worth ₹473.14 crore
- Projects under implementation at end of quarter: 194 accounts worth ₹10,304.61 crore
Resolution processes were initiated for selected accounts to improve project outcomes.
Market Outlook: Strong Profit Growth Despite Deposit Growth Challenge
Bank of Maharashtra delivered a strong Q1 FY27 performance with profitability rising significantly and asset quality remaining among the best in the banking sector.
The bank’s net profit crossed the ₹2,000 crore milestone, supported by higher interest income and controlled credit costs.
However, deposit growth remains an area requiring attention. Deposits grew 13% year-on-year, but declined around 2% sequentially, slightly below the management’s FY27 growth guidance of 14-15%.
About Bank of Maharashtra
Bank of Maharashtra (BoM) is a public sector bank headquartered in Pune, Maharashtra. Established in 1935, the bank provides banking services across retail, agriculture, MSME, corporate, and digital banking segments. With a wide branch network across India, BoM focuses on financial inclusion, technology-driven banking solutions, and sustainable business growth.
Read also: Indian Bank Q1 FY27 Results: Net Profit Rises 10% to ₹3,273 Crore, Gross NPA Improves to 1.86%
