New Delhi / Mumbai: State-owned Bank of Maharashtra reported a strong set of earnings for the quarter and financial year ended March 2026, with net profit rising sharply by nearly 35% year-on-year, supported by robust loan growth, higher interest income, and continued improvement in asset quality.
Net Profit Rises 35% in Q4 FY26
The bank posted a standalone net profit of ₹2,014 crore in Q4 FY26, compared to ₹1,493 crore in the same period last year, marking a growth of about 35%.
Total income during the quarter rose to ₹8,693 crore, up from ₹7,711 crore a year ago, driven mainly by higher interest income.
Interest income increased to ₹7,755 crore, reflecting healthy credit expansion and better yield on advances.
Full-Year Profit Crosses ₹7,000 Crore
For the full financial year FY26, Bank of Maharashtra reported a net profit of ₹7,019 crore, up 27.2% from ₹5,520 crore in FY25.
Operating profit for the year also rose to ₹10,826 crore, supported by strong core banking performance and controlled provisioning.
Asset Quality Improves to Multi-Year Lows
The bank continued to strengthen its balance sheet, reporting significant improvement in asset quality:
- Gross NPA: 1.45% (down from 1.74%)
- Net NPA: 0.13% (down from 0.18%)
Provision coverage ratio remained strong at 98.59%, one of the highest in the banking sector, indicating a strong buffer against potential stress.
Strong Growth in Loans and Deposits
Bank of Maharashtra reported healthy double-digit business growth:
- Total Advances: ₹2.88 lakh crore (↑ 22% YoY)
- Total Deposits: ₹3.50 lakh crore (↑ 14.1% YoY)
- CASA Ratio: Strong at 48.5%
The growth reflects sustained retail and corporate credit demand along with stable deposit mobilization.
Profitability Ratios Improve
- Return on Assets (RoA): 1.86% in Q4 FY26
- Annualized RoA improved further to around 1.97%
- Operating efficiency improved with better margins and lower provisioning costs
Dividend Declared: ₹2.20 per Share for FY26
The board recommended a total dividend of ₹2.20 per equity share (22%) for FY26, including:
- Final Dividend: ₹1.20 per share
- Interim Dividend: ₹1.00 per share (already paid)
The final dividend is subject to shareholder approval at the upcoming Annual General Meeting.
Capital Adequacy and Financial Strength
The bank remains well-capitalized with:
- Capital Adequacy Ratio (CAR): 18.36%
- CET-1 Ratio: 14.59%
However, CAR saw a slight decline from the previous year due to business expansion and capital usage.
Fraud Provisions and Risk Buffer
During FY26, the bank reported 394 fraud cases involving ₹990 crore, for which it has made full provisions of approximately ₹874 crore on the loss portion.
Additionally, COVID-related contingency provisions of ₹1,010 crore remain on the books.
Fundraising and Future Plans
The bank approved multiple fundraising initiatives to support future growth, including:
- Equity capital raising up to ₹7,500 crore
- Basel III-compliant bonds (AT-1 and Tier II)
- Infrastructure bonds up to ₹10,000 crore (FY27 plan)
- Foreign currency bonds up to USD 500 million
Government Stake Update
Following a recent Offer for Sale (OFS), the Government of India’s stake in the bank has reduced to 73.6%, ensuring compliance with minimum public shareholding norms.
About Bank of Maharashtra
Bank of Maharashtra is a leading public sector bank headquartered in Pune, India. It offers a wide range of banking and financial services across retail, corporate, and agricultural segments. Known for its strong regional presence and improving asset quality, the bank has been consistently delivering steady growth in profits and expanding its national footprint.
