Bank of Maharashtra deposits rise 14% in FY26 update

What the FY26 update signalled

Bank of Maharashtra’s provisional update for the year ended March 31, 2026 showed a sharp expansion in both deposits and lending. Total deposits increased 14% year-on-year (YoY), while global advances grew 22% YoY. The Pune-based public sector lender said total business crossed ₹6,42,700 crore in FY26, a milestone that the market read as a sign of sustained balance-sheet momentum. The stock reacted quickly, rising in early trade on the back of the update. The bank also indicated that growth was driven by credit off-take and retail deposit mobilisation, suggesting the liability franchise kept pace with loan growth. For investors tracking PSU banks, the data points to a combination of growth and improving deployment efficiency.

Key FY26 numbers: deposits, advances, total business

As of March-end FY26, the bank reported total deposits of ₹3,50,585 crore, up from ₹3,07,143 crore in the previous fiscal year. Global advances rose to ₹2,92,115 crore from ₹2,39,837 crore a year ago, marking 22% YoY growth. Total business grew 18% YoY to ₹6,42,700 crore, according to the FY26 provisional figures cited in the update. The bank’s update positioned it as outperforming several public sector peers on credit growth during the period. The scale-up in both sides of the balance sheet also sets the context for why the stock saw strong interest during the session when the update was released.

Loan growth: RAM becomes the backbone

The update highlighted the RAM segment (Retail, Agriculture, and MSME) as a key driver of loan growth. RAM advances contributed ₹1,79,000 crore to the total loan book. On the corporate side, domestic corporate advances stood at ₹1,12,000 crore, up from about ₹94,000 crore last year. This mix matters because it shows the bank is growing corporate credit while also leaning on granular segments that are central to its strategy. The bank’s narrative in the update emphasised that RAM has become the backbone of its lending approach.

Efficiency indicator: credit-deposit ratio improves

One of the notable metrics in the business update was the domestic credit-deposit (CD) ratio, which improved to 82% from 78% in the previous year. The bank linked this to more efficient capital deployment, as a higher CD ratio typically indicates that a larger share of deposits is being converted into advances. The CD ratio move also sits alongside the bank’s claim of resilient retail deposit mobilisation. Together, the figures suggest the bank grew loans without losing deposit momentum.

Why deposits rose: branches, digital acquisition, CASA strength

The bank attributed the 14% deposit rise to aggressive branch expansion and a digital-first customer acquisition strategy. It also reported CASA deposits rising 13% to ₹1,84,000 crore. The CASA ratio remained at 53%, which the update described as sector-leading. The bank said it kept a high-quality liability profile by focusing on granular retail deposits rather than bulk deposits, which it characterised as more volatile. It also cited a low cost-to-income ratio in the PSU space at about 37%, saying this helped it offer competitive rates while maintaining margins in a high-interest-rate environment.

Market reaction: gap-up open, intraday high, volume spike

The stock opened at ₹64.22, a gap-up versus the previous close of ₹63.89, after the business update. Buying interest strengthened as the PSU Bank index held up despite global macro headwinds, according to the market description in the text. During the session, the stock hit an intraday high of ₹66.85, supported by a trading volume spike that crossed 1 crore shares early in the day. In another market snapshot included with the report, the price was shown at ₹66.59 with a +4.23% move, alongside a 5-day change of +3.30% and a 1st Jan change of +7.32%.

FY25 base: profitability and margin indicators cited

The provided text also includes FY25 financial performance metrics that form the recent baseline for Bank of Maharashtra. For Q4 FY25, standalone net profit was ₹1,493.08 crore versus ₹1,217.67 crore in the year-ago period, a 22.6% YoY rise. Net interest income (NII) in Q4 FY25 increased 20.59% YoY to ₹3,116 crore, while net interest margin (NIM) improved to 4.01% as of March 31, 2025 from 3.97% a year earlier. Total income for the quarter was ₹7,711.44 crore, up from ₹6,488.25 crore. The managing director, Nidhu Saxena, was quoted saying profitability metrics were likely to be better than the industry average and that the bank would like to maintain the trend in NIM and CASA ratio.

Asset quality and capital: low NPAs and higher CRAR

On asset quality, the text cites gross NPA ratio at 1.74% as of March 31, 2025, down from 1.88% a year earlier, while net NPA ratio stood at 0.18% versus 0.20%. Provision coverage ratio (PCR) was reported at 98.26% (also referenced as 98.3% in the text). On the capital side, the bank reported a CRAR of 20.53% in FY25, up from 17.38% in FY24, and CET1 at 15.83% versus 12.50%. Separately, the text notes a Qualified Institutional Placement (QIP) on October 5, 2024, raising ₹3,500 crore through issuance of 61,01,81,311 equity shares, after which the Government of India’s shareholding reduced to 79.60% by March 2025.

Snapshot: FY26 business update versus FY25 base

The FY26 update sits on top of a FY25 base that already showed deposit and advance growth. FY25 deposits were cited at ₹3,07,142.60 crore and advances at ₹2,36,083.80 crore as of March 31, 2025. Total business was also cited as ₹5,47,000 crore (₹5.47 trillion) on a YoY growth basis for FY25 in the text.

What investors will track next

The update puts attention on whether the bank can sustain high advance growth while protecting liability quality and margins. The reported 53% CASA ratio and the 82% CD ratio are likely to remain key operating metrics to watch in subsequent disclosures. Investors will also monitor how the RAM-led mix develops versus corporate advances, given the bank provided both segment numbers. On the market side, the stock’s sharp move on the update and the reported spike in volume underline how sensitive PSU bank stocks can be to business momentum indicators.

Conclusion

Bank of Maharashtra’s FY26 provisional update showed deposits up 14% to ₹3,50,585 crore and advances up 22% to ₹2,92,115 crore, taking total business to ₹6,42,700 crore. The market responded with a gap-up open and an intraday move to ₹66.85, supported by heavy volumes. The next set of formal results and filings will provide more detail on how the bank balanced growth, margins, and asset quality as FY26 closed.