Bank of Maharashtra has received rating reaffirmation from Acuite Ratings Research Limited across multiple bond series totaling ₹5,073.00 crores. The rating agency maintained its ACUITE AA/Stable outlook on the bank's Basel III Additional Tier-1 and Tier-II bonds, reflecting the institution's strong fundamentals and government backing.

Rating Details and Bond Portfolio

Acuite Ratings reaffirmed ratings on 13 different bond series, including both existing and proposed instruments. The rated portfolio encompasses various Basel III compliant bonds with coupon rates ranging from 7.75% to 8.75%.

The rating action also covers several proposed Basel III compliant bonds, including ₹1,000.00 crores in Tier-II bonds and ₹120.00 crores in Perpetual Additional Tier-1 bonds.

Strong Government Ownership and Capital Support

The rating reaffirmation considers Bank of Maharashtra's robust ownership structure, with the Government of India holding a 79.60% stake. This strong government backing provides demonstrated capital support and strategic importance in furthering financial inclusion objectives.

The bank maintains comfortable capitalization levels with key metrics showing significant strength:

Improved Asset Quality and Operational Performance

Bank of Maharashtra demonstrated notable improvement in asset quality metrics during the review period. The Gross Non-Performing Assets (GNPA) ratio declined to 1.72% as of September 30, 2025, from 1.84% in September 2024, reflecting better credit management and lower slippages.

The bank's operational performance showed sustained improvement with profits (PAT) reaching ₹5,519.79 crores in FY2025 compared to ₹4,055.03 crores in FY2024. The institution maintained healthy margins supported by a strong CASA (Current Account Savings Account) base of 50.35% as of September 30, 2025.

Deposit Growth and Resource Profile

The bank's resource profile derives strength from its robust deposit base, which grew by 12.13% from ₹2,76,289 crores in September 2024 to ₹3,09,791 crores in September 2025. This growth rate exceeded industry averages, demonstrating the bank's competitive positioning in deposit mobilization.

Bank of Maharashtra operates through an extensive network of 2,665 branches across India as of September 30, 2025, with significant presence in Maharashtra state. The bank's RAM (Retail, Agriculture and MSME) advances constitute 62.41% of gross advances, supporting healthy margin sustainability.

Rating Outlook and Key Factors

Acuite Ratings maintained a stable outlook based on continued government support, the bank's ability to maintain credit profile improvements, and adequate capital position sustainability. The rating agency expects Bank of Maharashtra to continue benefiting from lower cost of funds due to sovereign parentage and stable retail deposit base.

Key rating sensitivities include government ownership continuity, asset quality movements, deposit base stability, and maintenance of adequate capital levels above regulatory minimums. The bank's liquidity position remains strong with a liquidity coverage ratio of 118.12% for the quarter ended September 2025, well above the minimum regulatory requirement of 100%.

Bank of Maharashtra has completed its annual interest payment on Basel III Compliant Tier-II Bonds, fulfilling its regulatory obligations under SEBI listing requirements. The payment was processed on December 15, 2025, in compliance with the bank's bond agreement terms.

Bond Interest Payment Details

The bank made the interest payment on bonds with ISIN INE457A08159, representing a significant financial obligation. The payment details are structured as follows:

Payment Timeline and Compliance

The interest payment was originally scheduled for December 14, 2025. However, since this date fell on a bank holiday, the payment was processed on the next working day, December 15, 2025, as stipulated in the Information Memorandum. This demonstrates the bank's adherence to established protocols and regulatory guidelines.

Regulatory Framework

The interest payment was made pursuant to Regulation 57(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Bank of Maharashtra communicated this information to both BSE Limited and National Stock Exchange of India Limited, maintaining transparency with stakeholders and regulatory bodies.

Bond Structure and Characteristics

The Basel III Compliant Tier-II Bonds represent part of Bank of Maharashtra's capital structure, with the principal amount standing at ₹259.00 crores. The annual interest payment of ₹20.69 crores reflects the bank's commitment to meeting its debt obligations in a timely manner.

The bank has also informed IDBI Trusteeship Services Limited, which serves as the Debenture Trustee for these bonds, ensuring all relevant parties are kept informed of the payment completion. This systematic approach to communication underscores the bank's commitment to regulatory compliance and stakeholder transparency.