Mumbai: Bank of Maharashtra reported its highest-ever quarterly net profit of Rs 1,779 crore for the third quarter of FY25-26, driven by strong credit growth, improving asset quality and stable margins. The public sector lender outperformed its internal guidance across key balance sheet and profitability metrics during the quarter.
Total business rose 17.24 percent year-on-year to Rs 5.95 lakh crore, exceeding the bank’s guidance of 15 percent growth. Total deposits increased 15.3 percent YoY, ahead of the targeted 14 percent, supported by sustained traction in low-cost deposits. The CASA ratio remained stable at 50 percent, underscoring the bank’s focus on granular and stable funding.
Advances grew 20 percent YoY, surpassing the guidance of 17 percent, with the Retail, Agriculture and MSME (RAM) to Corporate mix improving to 63:37. Retail lending continued to lead growth, with home loans rising 28 percent, vehicle loans up 54 percent and gold loans expanding 56 percent on a year-on-year basis.
Asset quality indicators showed further sequential improvement. Gross non-performing assets declined to 1.60 percent from 1.72 percent in the preceding quarter, while net NPA improved to 0.15 percent from 0.18 percent, reflecting better recoveries and controlled slippages.
Profitability ratios remained strong. Net interest margin stood at 3.87 percent, above the bank’s guidance of 3.75 percent. Return on assets improved to 1.86 percent, while return on equity rose to 23.79 percent. Cost efficiency also strengthened, with the cost-to-income ratio declining to 37.19 percent, well below the sub-40 percent threshold.
Capital adequacy remained comfortable, with CRAR at 17.06 percent and CET-1 ratio at 13.10 percent, providing adequate headroom for growth. Liquidity coverage ratio stood at 116.36 percent, within the bank’s internal operating range.
During the quarter, co-lending partnerships contributed Rs 5,500 crore to the loan book, while the overall gold loan portfolio expanded to Rs 22,000 crore. The bank also continued to scale its digital initiatives, with its revamped mobile banking application crossing six lakh active users.
Under Project 321, Bank of Maharashtra plans to open 321 new branches over 18 months, with 116 branches already operational. The board approved a 10 percent interim dividend, while the government’s shareholding stood at 73.6 percent following the recent offer for sale.
