Bank of Maharashtra Q1 FY26: profit up 23%, NII 17.6%

What Bank of Maharashtra reported for Q1 FY26

Bank of Maharashtra (NSE: MAHABANK; BSE: 532525) reported a year-on-year rise in profitability in Q1 FY26, supported by higher core interest income and steady balance-sheet expansion. Net profit rose 23.14% to ₹1,593 crore in Q1 FY26, compared with ₹1,293 crore in Q1 FY25. Operating profit increased to ₹2,570 crore from ₹2,294 crore a year earlier. Net interest income (NII) grew 17.60% to ₹3,292 crore, up from ₹2,799 crore.

The bank also disclosed that total income for the quarter stood at ₹7,879 crore, compared with ₹6,769 crore in the year-ago period. Alongside earnings, the quarter featured continued growth in advances and deposits, with management commentary pointing to momentum in retail, agriculture, and MSME lending.

Profitability metrics in focus

The Q1 print highlighted a broad-based improvement in earnings lines, with profit growth outpacing operating profit growth. The quarterly update also included profitability ratios, with return on assets (ROA) stated at 1.80% and return on equity (ROE) at 23.00%. These metrics were presented as part of the quarter’s positives alongside business growth and asset-quality indicators.

In the same set of disclosures, the bank flagged that provisions rose due to agriculture NPAs, even as headline asset-quality ratios improved. That combination matters to investors because it links near-term earnings to credit-cost movements, particularly in segments sensitive to monsoon and rural cash flows.

Loan growth and business expansion during the quarter

Bank of Maharashtra reported that advances grew 15.34% year-on-year to about ₹2,41,000 crore (₹2.41 lakh crore). It also shared a target of 17% expansion in advances for FY26. In the RAM book, retail advances were highlighted as a key driver.

The quarter’s business snapshot also cited total business growth of 14.6% year-on-year to ₹5,46,143 crore. A separate year-on-year comparison in the provided material described deposits up around 14% to over ₹3,05,000 crore and gross advances up over 15% to roughly ₹2,41,000 crore, indicating consistent momentum across both sides of the balance sheet.

Retail, MSME, and agriculture details from the quarter

Within RAM (retail, agriculture, and MSME), the bank’s commentary pointed to retail as the standout. Retail advances were reported to have grown 35.4% year-on-year. Gold loans were cited as a major contributor within retail, up 58% year-on-year.

MSME advances were reported to have grown 5.7%, while agriculture advances rose 2.9%. The RAM segment was described as accounting for over 62% of total loans in the quarter’s discussion, underlining the bank’s tilt toward granular credit, even as it continues to grow corporate credit in other periods.

Asset quality and capital position

On asset quality, gross NPA improved to 1.74% from 1.85%, while net NPA was steady at 0.18%. Provision coverage ratio (PCR) was stated at 98.36% including technical write-offs. These indicators were presented as part of stable asset quality in the quarter.

Capital adequacy was also disclosed in the quarter’s highlights. Tier I capital ratio was stated at 16.63% and CRAR at 20.06%. For investors tracking PSU banks, these levels are relevant because they influence growth capacity and resilience against credit shocks.

Digital activity mentioned in quarterly highlights

The quarter’s update also included operational datapoints on digital usage. The bank stated that 98.85% of total transactions were via digital channels. It also reported UPI transactions at 852 million.

The bank mentioned new digital initiatives such as online salary accounts and credit proposal tracking, along with a push toward end-to-end digital processes. While these do not directly translate into quarterly earnings, they are often tracked for cost-to-income trajectory and customer acquisition efficiency.

How Q1 FY26 fits with FY26 and recent quarters

The Q1 FY26 numbers were presented against a broader run of strong results and business growth metrics shared for other periods. For Q4 FY26, Bank of Maharashtra reported net profit of ₹2,014 crore, up 35% from ₹1,493 crore, supported by strong loan growth and lower provisions. In that quarter, NII rose 19% to ₹3,702.5 crore from ₹3,116.4 crore. Net interest margin (NIM) was stated at 3.9%, unchanged from a year earlier.

For the full year FY26, net profit was reported at ₹7,019 crore, up 27% from FY25. Separately, the material also cited net profit of ₹5,520 crore for the year ended March 31, 2025, described as a 36.12% increase.

Provisional FY26 business update and balance-sheet milestones

In its provisional business update for the year ended March 31, 2026, the bank reported global advances of ₹2,92,115 crore, up 22% year-on-year. RAM advances were stated at ₹1,79,847 crore, up 21% year-on-year. The bank also reported total deposits of ₹3,50,585 crore, up 14% year-on-year.

Total business was reported at ₹6,42,700 crore, reflecting 18% year-on-year growth, and another line item in the provided material stated total business at ₹6,42,531 crore, up 17.47% year-on-year as on March 31, 2026. The update also included first overseas figures for IBU (IFSC Banking Unit) advances at ₹6,124 crore and noted that these were provisional and subject to statutory audit.

Key numbers at a glance

Market impact and what investors will track next

The Q1 outcome reinforces two themes visible in Bank of Maharashtra’s updates: steady balance-sheet growth and improving headline asset-quality ratios. The quarterly numbers also show that NII growth remains a key earnings driver, with advances expanding at a mid-teens pace. At the same time, the bank flagged that provisions rose due to agriculture NPAs, which keeps credit costs in focus even when GNPA and NNPA trend better.

For investors, the next set of cues will likely come from whether the bank sustains its stated growth objective for FY26 advances, and how loan mix changes across retail, MSME, agriculture, and corporate credit. Disclosures around deposit growth, margins, and provisioning trends will remain central as the bank moves through FY26 and into its FY27 growth outlook mentioned in the provided material.