Bank of Maharashtra bank of maharashtra reported a 27% year-on-year increase in net profit to ₹20.20 billion for the quarter ended June 2026, driven by higher interest income and controlled operating costs.

The public sector lender filed its investor presentation with stock exchanges on September 7, 2026, detailing financial performance for the first quarter of fiscal 2027. The bank’s total income rose 15% to ₹91 billion, while operating profit expanded 21% to ₹31.17 billion.

Financial Performance

Net interest income (NII) grew 15% to ₹37.70 billion from ₹32.92 billion in the corresponding quarter last year. Despite this growth, the net interest margin (NIM) contracted to 3.79% from 4.00% in March 2026 and 3.79% annualized for the period. Non-interest income increased 25% to ₹10 billion, led by fee-based income of ₹5 billion and treasury income of ₹3 billion.

Provisions for non-performing assets rose to ₹8 billion from ₹7 billion in June 2025. Income tax expense stood at ₹3 billion. The cost-to-income ratio improved to 35.04% from 38.37% in March 2026.

Asset Quality and Capital

Gross non-performing assets (GNPA) remained stable at 1.45%, while net NPAs held steady at 0.13%. The provision coverage ratio was 98.55%. Standard restructured advances as a percentage of standard credit fell to 0.66% from 0.72% in March 2026.

Capital adequacy ratios showed resilience. The capital to risk-weighted assets ratio (CRAR) stood at 18.64%, with Tier-1 capital at 16.35%. Common Equity Tier 1 (CET-1) capital was 15.56% against total risk-weighted assets of ₹2,174 billion.

Deposit and Loan Book Growth

Total deposits reached ₹3,444.93 billion, a decline from ₹3,505.64 billion in March 2026 but up significantly from ₹2,022.94 billion in March 2022. The current account savings account (CASA) ratio dropped to 48.51% from 52.51% in March 2026. Term deposits grew at a 19% CAGR since March 2022.

Global advances stood at ₹3,059.64 billion, including ₹81.06 billion in overseas advances. Retail loans accounted for 29% of the portfolio, growing at a 24% CAGR since March 2022. MSME loans grew at 19% CAGR, while agriculture loans expanded at 21% CAGR.

What the Numbers Show

The divergence between NII growth and NIM contraction highlights the bank’s asset-liability management dynamics. While net interest income rose 15%, the NIM fell from 4.00% in March 2026 to 3.79% annualized in June 2026. This suggests that loan yield compression or deposit cost pressures may be offsetting volume growth. Meanwhile, the 27% jump in net profit outpaced the 15% rise in total income, indicating operational leverage through controlled provisions and expenses.

Bank of Maharashtra has secured a BBB- credit rating from Fitch Ratings for its USD 500 million Euro Medium Term Note (EMTN) Programme. The rating underscores the lender’s creditworthiness in international markets as it seeks to diversify its funding sources.

The bank initially established the programme on September 5, 2026, disclosing the move pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This corporate action enables the lender to raise funds from international investors through medium-term notes.

Rating and Programme Details

Fitch Ratings assigned the 'BBB-' rating to the entire USD 500 million facility. The offering circular for the EMTN Programme has been submitted to two key exchanges: NSE IFSC Limited and India International Exchange (IFSC) Limited. Investors can access the document on the respective websites of these exchanges.

The bank also published the intimation on its official website in compliance with SEBI LODR norms. Vishal Sethia, Company Secretary and Compliance Officer, signed the disclosure.

What the Numbers Show

The establishment of a USD 500 million facility indicates the bank’s intent to diversify its funding sources beyond domestic markets. While no notes have been issued yet, the programme structure allows for future tranches up to this limit, providing flexibility in managing liquidity and currency exposure. The BBB- rating from Fitch provides a benchmark for international investors, potentially lowering the cost of capital for future issuances under this programme.