Mumbai: Shares of Bank of Maharashtra jumped sharply on April 21, rising 5.61 percent to Rs 79.78 during the day. The stock also touched a high of Rs 81.17, marking its strongest level in recent times.
The rally comes after the bank reported strong quarterly performance and shared a positive growth outlook for the coming financial year.
Strong FY27 Growth Guidance
The bank’s management has given a confident outlook for FY27. It expects total business growth of 16–17 percent. Advances are likely to grow around 18 percent, while deposits may rise by 14–15 percent.
This steady growth expectation has boosted investor confidence and supported the stock’s upward move.
Earnings and Margins Outlook
The bank expects its core income, or Net Interest Income (NII), to grow by about 15 percent year-on-year. Net Interest Margin (NIM) is expected to stay stable at 3.75 percent.
Non-interest income may grow by 10 percent, while the cost-to-income ratio is expected to remain below 40 percent, showing better efficiency.
Focus on Returns and Business Mix
Management aims to maintain strong returns, with Return on Assets (RoA) at 1.8 percent and Return on Equity (RoE) at 20 percent or higher.
Growth in the Retail, Agriculture, and MSME (RAM) segments is expected at 18 percent. The bank plans to keep a balanced mix between RAM and corporate lending at around 60:40.
Asset Quality Remains Strong
The bank expects asset quality to remain stable. Gross NPA is likely to stay below 2 percent, while Net NPA may remain under 0.2 percent.
Slippages are expected below 1 percent, and credit cost around 1 percent. The provision coverage ratio is projected at 98 percent, showing strong risk control.
Capital Raising Plans
To support growth, the bank plans to raise Rs 7,500 crore through equity and bonds. It is also preparing to issue up to $500 million in foreign bonds and Rs 10,000 crore in infrastructure bonds.
Strong Q4 Results
In Q4, the bank reported a 15 percent rise in net profit to Rs 2,014 crore. Net Interest Income grew 19 percent to Rs 3,702.5 crore.
Asset quality improved further, with Gross NPA at 1.45 percent and Net NPA at 0.13 percent.
Dividend and Investor Sentiment
The bank has recommended a dividend of Rs 1.2 per share for FY26, subject to approval. It had earlier paid an interim dividend of Rs 1 per share.
The stock has gained nearly 28 percent in the past month, reflecting strong investor confidence.
Disclaimer: This article is for informational purposes only and not investment advice. Stock market investments are subject to risks. Investors should consult financial advisors before making any investment decisions.
