Bank of Maharashtra FY26 profit up 27%, FY27 growth plan

What changed for Bank of Maharashtra in FY26

State-owned Bank of Maharashtra reported a sharp improvement in profitability in FY26, supported by strong loan growth and lower provisions. The lender also outlined its near-term growth outlook for FY27 and put multiple capital-raising options in place through enabling approvals. Separately, the stock saw a strong single-session move on April 1, 2026, even as broader markets were weak.

The bank’s provisional FY26 performance also drew attention because total business growth stayed strong and key funding indicators such as CASA remained elevated. Search interest for “Bank of Maharashtra” spiked in January 2026, which the report linked to the bank’s 600-vacancy recruitment drive. Together, the financial results and visibility helped keep the lender in focus for investors tracking public sector banks.

Q4 FY26 profit jumps 35% year-on-year

In the fourth quarter of FY26, Bank of Maharashtra reported net profit of ₹2,014 crore, up 35% from ₹1,493 crore in the same quarter last year. The rise was attributed to strong loan growth and a decrease in provisions. For a lender, the combination matters because provisions can swing profits materially even when operating performance is steady.

The quarter also saw a sharp fall in treasury income. Treasury income declined 63% to ₹33 crore in March 2026 from ₹97 crore a year earlier. The contrast between higher core profitability and weaker treasury income indicates that the profit performance was driven mainly by banking operations rather than trading gains.

FY26 net profit rises to ₹7,019 crore

For the full year FY26, the bank reported net profit of ₹7,019 crore, a 27% increase from FY25. The results were positioned as part of a broader trend of improved profitability and operating metrics during the year.

In the December quarter (Q3FY26), the bank reported net profit of ₹1,779 crore, up 26.51% year-on-year from ₹1,406 crore in Q3FY25. Net interest income (NII) in Q3FY26 rose 16.27% year-on-year to ₹3,422 crore from ₹2,943 crore. The bank’s domestic net interest margin (NIM) was reported at 3.87% in the exchange filing, while other parts of the provided material also referenced Q3 NIM around 3.86% to 3.88%.

Business growth led by advances and a high CASA base

The core catalyst highlighted in the material was the bank’s FY26 business expansion. Provisional FY26 results showed total business grew 18% year-on-year to ₹642,700 crore. The same narrative cited a 22% surge in global advances and a maintained 53% CASA ratio, pointing to growth alongside a relatively low-cost funding profile.

In addition, the bank’s domestic credit-to-deposit ratio was reported to have climbed to 82% from 78%, signalling a higher deployment of deposits into loans. Other references in the provided data discussed credit-to-deposit levels in the 83% to 85% range in different contexts, but the key point remained that the ratio moved up alongside advances growth.

Retail momentum and deposit growth details from Q3FY26

Within the advances book, gross advances expanded 19.6% year-on-year in Q3FY26 and 7.6% quarter-on-quarter. Retail advances grew about 36% year-on-year, supported by vehicle advances growth of 53.8% year-on-year and housing loan growth of 27.5% year-on-year.

On the liabilities side, total deposits grew 15.3% year-on-year and 3.8% quarter-on-quarter in Q3FY26. CASA deposits increased 15.9% year-on-year, while term deposits rose 14.7% year-on-year. These trends were presented as supportive of balance sheet growth without a visible deterioration in key funding metrics.

Asset quality improves; provisioning remains high

Asset quality indicators improved in Q3FY26. Gross non-performing assets (GNPA) declined to 1.60% as of December 2025. Net NPA declined to 0.15% (down 3 bps quarter-on-quarter). The bank also reported a provision coverage ratio (PCR) of 98.4%, indicating substantial provisioning against problem assets.

The bank also tightened underwriting standards, stating it permitted no new underwriting for customers with a credit score below 681. The SMA 1 and SMA 2 book (accounts above ₹5 crore) improved, declining by 18 bps to 1.69%, while overall stress in the loan book was reported at 3.35%.

Capital raising plans and FY27 infrastructure bond route

The board passed an enabling resolution to raise capital up to ₹7,500 crore through equity and debt. The bank also plans to raise ₹10,000 crore through long-term infrastructure bonds in fiscal 2027.

Separately, another management commentary in the provided text said there was “no urgent need” to raise further capital and noted a capital adequacy ratio of 17.06% as of Dec. 31. Taken together, the approvals appear to be about keeping options open, while actual timing and size could be calibrated to growth needs and market conditions.

FY27 guidance: credit growth at 18%, deposits at 14% to 15%

CEO Nidhu Saxena said the bank expects credit to grow at 18% in FY27, while deposits are expected to grow 14% to 15%. On margins, management maintained NIM guidance at 3.75% for FY26 in the provided material, while also noting rate cuts can influence margins and repricing.

The bank also declared an interim dividend of ₹1 per equity share (face value ₹10) for FY26, within RBI’s permissible limit. Another management comment in the supplied text indicated FY26 dividend payout would be 15% of profit after tax, the same fraction as FY25.

Market reaction: April 1 surge amid a weak tape

The stock reaction highlighted in the material was notable. On April 1, 2026, Bank of Maharashtra surged 5.15% even as the Sensex declined. The move was described as an outperformance of 2.03 percentage points versus its sector in a weak market environment.

The rally also followed a period of pressure, with the stock down 13.87% over the prior month. In another trading snapshot, the share price rose 4.14% to ₹67.74, the highest since July 31, 2024, before paring gains to ₹65.60 by 11:18 AM.

Key numbers at a glance

Valuation, ratings, and technical cautions cited

The supplied material noted the stock traded at a trailing P/E of 7.16 versus a sector average of 8.55, indicating a valuation discount. It also referenced a price-to-book value of 1.5, a PEG ratio of 0.3, and a dividend yield of 3.8%.

On performance comparisons, the text cited one-year total return of 28.41% versus the Sensex’s 7.07%, and also referenced multi-year outperformance (including three-year and five-year returns in the provided figures). It further stated the stock was rated “Strong Buy” with a Mojo Score of 87.0 and that the rating was upgraded on 06 Feb 2026. On the other hand, a technical view included in the material flagged that indicators looked “overbought” and advised caution at elevated levels.

Why the FY26 print matters for investors tracking PSU banks

The FY26 numbers, including a higher full-year profit and strong business growth, were presented alongside improved asset quality and high provisioning coverage. The combination of loan growth, stable funding metrics, and lower stressed assets typically supports earnings resilience, while treasury volatility can add noise to quarterly comparisons.

The other key development is the bank’s fundraising flexibility. With approvals for equity and debt up to ₹7,500 crore and infrastructure bonds of ₹10,000 crore in FY27, the bank has tools to support growth, while management commentary also suggests it will raise funds only if needed.

Conclusion

Bank of Maharashtra closed FY26 with higher quarterly and annual profits, strong business growth, and improved asset quality metrics, while treasury income fell sharply year-on-year in March 2026. Management’s FY27 guidance targets 18% credit growth and 14% to 15% deposit growth, and the board has approved enabling resolutions for capital raising and FY27 infra bonds. The next focus for investors will be how growth, margins, and capital decisions evolve as the bank executes on these targets.