Bank of Maharashtra has fulfilled its debt obligations by completing the annual interest payment on its BASEL III compliant Tier II bonds on March 23, 2026. The payment demonstrates the bank's commitment to maintaining its bond servicing schedule and regulatory compliance.

Bond Payment Details

The interest payment pertains to bonds with ISIN INE457A08084, representing a significant portion of the bank's Tier II capital structure. The comprehensive payment details are outlined below:

Regulatory Compliance

The payment was made in accordance with Regulation 57(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Bank of Maharashtra has notified both BSE Limited and National Stock Exchange of India Limited about the successful completion of the interest payment.

The bank confirmed that there were no changes in the payment frequency and no delays or non-payment issues were reported. The payment includes applicable Tax Deducted at Source (TDS) as per regulatory requirements.

Bond Structure and Trustee

The BASEL III compliant Tier II bonds form part of the bank's regulatory capital framework, supporting its capital adequacy requirements. Catalyst Trusteeship Limited serves as the Debenture Trustee for these bonds, ensuring proper oversight and bondholders' interest protection.

The timely completion of this interest payment reinforces Bank of Maharashtra's financial discipline and commitment to meeting its debt obligations as scheduled.

Bank of Maharashtra has received rating reaffirmation from Infomerics Valuation and Rating Limited on its Basel III compliant securities worth Rs 3000.00 crore. The rating agency maintained its existing ratings on March 11, 2026, reflecting the bank's strong fundamentals and government backing.

Rating Details and Instrument Breakdown

Infomerics reaffirmed ratings across multiple Basel III compliant instruments, maintaining differentiated ratings based on instrument characteristics:

The existing Tier II bonds include instruments with ISINs INE457A08126 (Rs 348.00 crore at 8.00% coupon) and INE457A08142 (Rs 515.00 crore at 7.98% coupon). The Additional Tier I bonds comprise instruments with ISINs INE457A08100 (Rs 290.00 crore at 8.75% coupon), INE457A08118 (Rs 710.00 crore at 8.74% coupon), and INE457A08134 (Rs 880.00 crore at 8.74% coupon).

Key Rating Strengths

Sovereign Ownership and Support: The Government of India maintains a 73.60% stake in Bank of Maharashtra as of December 31, 2025, down from 79.6% following an Offer for Sale to achieve regulatory compliance for minimum public shareholding. The government's consistent track record of providing capital support and operational initiatives across public sector banks underpins the rating strength.

Adequate Capitalisation Profile: The bank maintains comfortable capital ratios with Common Equity Tier-1 ratio at 13.10%, Tier-I Capital Adequacy Ratio at 13.95%, and overall Capital Adequacy Ratio at 17.06% as of December 31, 2025. During FY25, the bank raised Rs 3,500 crore through Qualified Institutional Placement and issued Rs 1,000 crore in Tier-II bonds.

Diversified Loan Portfolio: Gross advances grew by approximately 20% year-on-year to Rs 2,73,502 crore as of December 31, 2025. The Retail, Agriculture and MSME segment constitutes approximately 63% of total advances, with the retail segment recording strong 36% growth driven by vehicle loans (54% increase) and housing loans (28% increase).

Financial Performance and Asset Quality

The bank demonstrated significant improvement in asset quality metrics:

Total deposits grew by around 15% year-on-year to Rs 3,21,661 crore as of December 31, 2025. The bank's cost of deposits remained stable at 4.58% with overall cost of funds at 4.22%.

Rating Constraints and Outlook

The ratings face constraints from the bank's relatively moderate size among public sector banks, ranking 10th among twelve PSBs with total business of Rs 5.95 lakh crore and asset size of Rs 3.93 lakh crore. Geographic concentration remains a concern with approximately 43% of the 2,719 branches located in Maharashtra and 48% concentrated in the western region.

Infomerics expects the outlook to remain stable based on continued government support, growth in advances, healthy resource profile, and comfortable capitalisation levels. The rating agency anticipates further improvement in asset quality supported by strengthened credit monitoring mechanisms over the medium term.