Bank of Maharashtra Q4 FY26: Profit jumps 35% to Rs 2,014 cr

Share price extends gains after results

Bank of Maharashtra shares extended gains following its latest quarterly results. According to NSE data cited in the updates, the stock was up 5.79% at Rs 79.90 in Tuesday trade. The rally also followed a sharp move in the stock over a short period, with one update noting the shares rose 13% in three sessions. Separately, ahead of the earnings announcement, the stock was reported to have climbed 2.05% to Rs 74.22 on the NSE.

The price action came as the state-run lender reported a stronger March-quarter performance, with profit growth supported by higher net interest income and improved asset quality. Investors also tracked a set of board decisions taken alongside the results, including dividends and fundraising approvals.

Q4 FY26 earnings: profit growth remains strong

For Q4 FY26, Bank of Maharashtra reported net profit of Rs 2,014.09 crore. This was a 34.89% year-on-year increase compared with Rs 1,493.08 crore in Q4 FY25. Another update described the move as a 35% rise year-on-year.

Net interest income (NII) rose 18.81% year-on-year to Rs 3,702 crore in the January to March quarter of FY26, compared with Rs 3,116 crore in the year-ago period. The bank also reported that overall revenues increased 13% in the quarter, as referenced in the stock-move summary.

Asset quality improves in March quarter

The bank reported a further improvement in asset quality during the March quarter. Gross non-performing assets (GNPA) declined to 1.45% in Q4 FY26 from 1.74% in Q4 FY25, and from 1.6% in the preceding quarter.

Net NPA (NNPA) improved to 0.13% for Q4 FY26, compared with 0.18% in the corresponding period of FY25 and 0.15% in the December quarter of FY26. Provision coverage ratio was reported at 98.59% as on March 31, 2026, compared with 98.26% a year earlier and 98.41% in Q3 FY26.

The bank also disclosed that return on assets (ROA) improved to 1.97% for the reporting quarter, up from 1.78% in Q4 FY25.

Dividend: final payout of Rs 1.20 per share

Along with the results, the board recommended a final dividend of Rs 1.20 per equity share for FY26. The dividend was stated to be at a rate of 12%, with a face value of Rs 10 per share, and subject to shareholder approval at the ensuing AGM.

The final dividend recommendation follows an interim dividend of Rs 1 per equity share (10%) declared on January 13, 2026 and paid during the financial year. In a separate exchange-related update, the bank also stated that it had declared an interim dividend of 10%, equating to Rs 1.00 per share for FY26, with a record date set as January 20, 2026.

Board approvals: capital raising and bond plans for FY27

The board approvals cited alongside the earnings included multiple fundraising options. Bank of Maharashtra approved raising capital up to Rs 7,500 crore, including by issue of equity shares through routes such as preferential allotment to GOI, LIC, and others, and/or QIP, FPO, rights, ESPS, and/or Basel III Additional Tier I and/or Tier II bonds, subject to necessary approvals.

The board also approved issuance of long-term infrastructure bonds up to Rs 10,000 crore during FY27 in multiple tranches. In addition, it approved raising long-term funds by issuing foreign currency bonds up to $100 million during FY27 in multiple tranches.

Business scale: total business at Rs 642,000 crore

As of March 31, 2026, the bank reported total business of Rs 6.42 lakh crore, which equals Rs 642,000 crore. This was stated to reflect 17.47% year-on-year growth.

In disclosures describing the bank’s operations, its business segments were listed as Treasury, Corporate or Wholesale Banking, Retail Banking, and Other Banking Operations.

Prior quarters: Q3 and Q2 FY26 numbers in focus

The updates also included performance details from earlier quarters of FY26, which investors used as context for the March-quarter momentum.

For Q3 FY26, Bank of Maharashtra reported net profit rising 26.5% year-on-year to Rs 1,779 crore (also cited as Rs 1,779.33 crore). Net interest income for Q3 FY26 was reported to have grown 16.3% to Rs 7,344 crore, and return on assets improved to 1.86%. Other income in the December quarter was reported to have surged 18.41% to Rs 932.86 crore.

For Q2 FY26, the bank reported profit of Rs 1,633 crore, up 23% year-on-year from Rs 1,326 crore. NII grew 15.71% year-on-year to Rs 3,248 crore in Q2 FY26 versus Rs 2,807 crore in Q2 FY25. Interest income was cited at Rs 7,128 crore, up 18% year-on-year from Rs 6,017 crore.

Other key developments: rates, provisions, and government OFS

Beyond earnings, the updates pointed to multiple operational and market-linked developments.

The bank said it cut retail loan rates by 25 bps, with the revision effective on a Saturday. After the revision, the bank’s home loan started from 7.10% and car loan from 7.45%, which it described as among the lowest in the banking industry.

On credit cost expectations, an update attributed to CEO Nidhu Saxena said the bank was pegging quarterly ECL provisions at Rs 100-125 crore. Another report citing sources said the bank was expected to do additional provisions of Rs 125-150 crore every quarter.

The government also planned to divest up to 6% stake in Bank of Maharashtra through an offer for sale (OFS), aiming to garner Rs 2,600 crore. The sale included a base offer of 5% with an option to sell an additional 1%, with bidding to open for non-retail investors on December 2 and retail investors on December 3.

Key numbers at a glance

Market impact and what investors tracked

The sharp stock move after results was driven by a combination of profit growth, higher NII, and better reported asset quality metrics. Dividend visibility also remained a key factor, with the bank linking the final dividend to shareholder approval at the AGM, and the interim dividend already declared earlier in FY26.

Investors also monitored the board’s fundraising plans, which set out a wider set of options across equity and bonds. Separately, government divestment plans through an OFS, along with the bank’s retail loan rate cut, added to the list of near-term triggers that can influence trading volumes and positioning.

Conclusion

Bank of Maharashtra’s Q4 FY26 print showed net profit of Rs 2,014.09 crore and NII of Rs 3,702 crore, alongside an improvement in GNPA and NNPA ratios. The board recommended a final dividend of Rs 1.20 per share and approved multiple fundraising avenues for FY27, including up to Rs 7,500 crore in capital raising, up to Rs 10,000 crore in infra bonds, and up to $100 million in foreign currency bonds. Investors will next track shareholder approval for the final dividend at the AGM and any updates on the planned government OFS timeline and fundraising execution.