Pune: Bank of Maharashtra (BoM) reported strong financial performance for the second quarter of the financial year 2026-27 (Q2 FY27), with standalone net profit rising 41.42% year-on-year to ₹2,309.59 crore from ₹1,633 crore in the corresponding quarter last year. The bank’s profit also exceeded the market estimate of ₹2,100 crore, supported by growth in interest income, operating profit and business volumes.
The bank’s total income increased 22% year-on-year to ₹9,735.41 crore in Q2 FY27, compared with ₹7,974 crore in Q2 FY26. Net Interest Income (NII) grew 21.76% to ₹3,954 crore, while operating profit rose 30.86% to ₹3,368.67 crore.
On a sequential basis, net profit increased 14.33% compared with Q1 FY27, reflecting continued momentum in the bank’s financial performance.
Bank of Maharashtra Q2 FY27 Financial Highlights
The bank reported growth across key profitability and income indicators during the quarter ended September 30, 2026.
Key standalone financial highlights include:
- Net Profit: ₹2,309.59 crore.
- Operating Profit: ₹3,368.67 crore.
- Total Income: ₹9,735.41 crore.
- Net Interest Income (NII): Approximately ₹3,954 crore.
- Earnings Per Share (EPS): ₹3.00.
- Year-on-Year Net Profit Growth: 41.42%.
The improvement in earnings was accompanied by higher business volumes and better asset quality, supporting the bank’s overall financial performance.
Read also: Bank of Maharashtra Pays ₹78.60 Crore Interest on ₹1,000 Crore Basel III Tier II Bonds
H1 FY27 Net Profit Rises 34.22% to ₹4,330 Crore
Bank of Maharashtra also reported strong results for the half year ended September 30, 2026. Net profit increased 34.22% year-on-year to ₹4,329.78 crore, while earnings per share stood at ₹5.63 for the half year.
Net Interest Income grew 18.12% year-on-year to ₹7,724 crore during H1 FY27. Fee-based income also increased 3.54% to ₹866 crore, indicating continued growth in the bank’s non-interest income.
The bank’s performance during the first half reflects sustained growth in core lending income and operating profitability.
Net Interest Margin and Return Ratios Improve
Bank of Maharashtra maintained healthy margins and profitability ratios during Q2 FY27.
The bank’s domestic Net Interest Margin (NIM) stood at 3.97%, while global NIM was recorded at 3.86%. Return on Equity (ROE) reached 26.98% for the quarter, reflecting improved profitability relative to shareholders’ equity.
Other key profitability indicators included:
- Domestic NIM: 3.97%.
- Global NIM: 3.86%.
- Return on Equity (ROE): 26.98%.
- Return on Assets (ROA): 2.02%.
These indicators highlight the bank’s ability to generate earnings from its lending and overall asset base.
Asset Quality Improves as Gross NPA Falls to 1.25%
The bank recorded a significant improvement in asset quality during Q2 FY27, with both gross and net non-performing asset ratios declining year-on-year.
Gross Non-Performing Assets (GNPA) fell to 1.25% as of September 30, 2026, compared with 1.72% in the corresponding period last year. Net Non-Performing Assets (NNPA) declined to 0.12% from 0.18%.
Provisions for non-performing assets dropped to ₹121 crore in Q2 FY27, compared with ₹583 crore in Q2 FY26 and ₹755 crore in Q1 FY27. The reduction in provisions coincided with an improvement in the bank’s asset quality indicators.
The Provision Coverage Ratio (PCR) stood at 98.53%, compared with 98.34% a year earlier.
Key asset quality highlights:
- Gross NPA: 1.25%, compared with 1.72% a year ago.
- Net NPA: 0.12%, compared with 0.18% a year ago.
- Provision Coverage Ratio: 98.53%.
- Q2 FY27 NPA Provisions: ₹121 crore.
- COVID-19 Contingency Provisions Reversed: ₹250 crore during the quarter.
- Contingency Provisions Retained: ₹510 crore as of September 30, 2026.
The bank’s improved asset quality reflects lower reported NPA ratios and reduced provisioning requirements during the quarter.
Capital Adequacy Remains Strong at 18.51%
Bank of Maharashtra maintained a strong capital position as of September 30, 2026. Its Basel III Capital to Risk-Weighted Assets Ratio (CRAR) stood at 18.51%, while the Common Equity Tier 1 (CET1) ratio was 15.61%.
The capital position provides a buffer to support lending operations and future business expansion while maintaining regulatory capital requirements.
Total Business Grows 25.16% to ₹7.05 Lakh Crore
The bank’s total business increased 25.16% year-on-year to ₹7,05,766 crore, supported by growth in both deposits and advances.
Deposits rose 21.50% year-on-year to ₹3,76,407 crore, while global advances increased 29.61% to ₹3,29,359 crore.
The bank’s credit-deposit ratio stood at 87.50% on a global basis and 82.85% on a domestic basis.
Key business growth figures for Q2 FY27 include:
- Total Business: ₹7,05,766 crore, up 25.16% year-on-year.
- Total Deposits: ₹3,76,407 crore, up 21.50%.
- Global Advances: ₹3,29,359 crore, up 29.61%.
- Global Credit-Deposit Ratio: 87.50%.
- Domestic Credit-Deposit Ratio: 82.85%.
The growth in advances outpaced deposit growth, reflecting the bank’s expansion in lending during the reporting period.
CASA Ratio Declines as Term Deposits Increase
Despite strong growth in total deposits, Bank of Maharashtra’s Current Account Savings Account (CASA) ratio declined to 46.47% from 50.35% a year earlier.
Term deposits increased 31.22% year-on-year to ₹2,01,831 crore, indicating a shift in the deposit mix towards term deposits compared with current and savings accounts.
A higher proportion of term deposits can affect funding costs because such deposits may carry higher interest rates than some CASA balances. The change in deposit composition will therefore remain an important metric to monitor alongside the bank’s growth in deposits and advances.
Retail and MSME Advances Record Strong Growth
Bank of Maharashtra continued to expand its lending to retail and micro, small and medium enterprises (MSMEs), supporting credit availability across key segments of the economy.
Retail advances increased 20.91% year-on-year to ₹94,582 crore, while MSME advances grew 24.69% to ₹58,049 crore.
The growth reflects the bank’s continued expansion across individual borrowers and smaller businesses, alongside its broader growth in advances.
Bank of Maharashtra Maintains Growth Momentum in FY27
Bank of Maharashtra’s Q2 FY27 performance was marked by strong profit growth, higher operating income, expansion in total business and an improvement in asset quality. Its 41.42% year-on-year rise in quarterly net profit and 34.22% growth in half-year profit underline the bank’s earnings momentum during the first half of FY27.
The decline in gross and net NPAs, together with a strong capital adequacy ratio, also provides support for its lending operations. Going forward, deposit mobilisation, the CASA ratio and funding costs will remain important indicators as the bank continues to expand its credit portfolio.
About Bank of Maharashtra
Bank of Maharashtra is a public sector bank headquartered in Pune, Maharashtra. It provides a range of banking and financial services, including savings and current accounts, deposits, retail loans, MSME financing, corporate banking and digital banking services. The bank serves individuals, businesses and institutions through its branch network and digital platforms across India.
Read also: Bank of Maharashtra Secures ‘Excellent’ ESG Rating of 74.7 from GlobeTrend Climate Impact
