Bank of Maharashtra delivered strong third-quarter results, with shares initially surging to a 17-month high before paring gains during Wednesday's trading session. The state-owned lender reported robust financial performance driven by improved asset quality and higher interest income.

Strong Financial Performance in Q3 FY26

The Pune-based bank demonstrated solid growth across key financial metrics during the quarter ended December 2025:

The bank's net profit surge of 26.50% to ₹1,779 crore reflects strong operational performance and effective cost management. Total income growth of 16.39% was primarily driven by rising interest income, which increased to ₹7,344 crore from ₹6,325 crore in the corresponding period last year.

Asset Quality Improvement

Bank of Maharashtra achieved significant improvements in asset quality metrics, demonstrating enhanced risk management:

The reduction in gross Non-Performing Assets to 1.60% from 1.80% year-on-year indicates improved loan recovery and better credit underwriting. Net NPAs declined to 0.15% from 0.20%, while provision expenses decreased to ₹728 crore from ₹841 crore, reflecting the bank's strengthened balance sheet.

Key Ratios and Dividend Declaration

The board approved a 10% interim dividend of ₹1 per share with a face value of ₹10 each for financial year 2025-26, as announced by Managing Director and CEO Nidhu Saxena. However, some key ratios showed moderation:

• Capital Adequacy Ratio: Declined to 17.06% from 18.71% in Q3 FY25
• Net Interest Margin: Decreased to 3.88% from 3.98% in December 2024

Despite these moderations, the bank maintains healthy capital buffers well above regulatory requirements.

Share Price Performance and Market Response

Bank of Maharashtra shares rose as much as 4.14% to ₹67.74 during Wednesday's session, marking the highest level since July 31, 2024. However, the stock pared gains to trade 0.61% lower at ₹64.65 as of 10:10 a.m., compared to a 0.11% decline in the NSE Nifty 50 Index.

All three analysts tracking the company maintain a 'buy' rating with an average 12-month consensus price target of ₹77.33, indicating potential upside of 19.7% from current levels.

Bank Of Maharashtra has announced its expectations for achieving strong double-digit growth over the next few years, driven by strategic branch expansion initiatives. The bank's growth strategy focuses on expanding its physical presence to capture a larger market share and enhance customer accessibility.

Growth Strategy Through Branch Expansion

The bank's strategic approach centers on expanding its branch network as a key driver for future growth. This expansion plan is designed to strengthen the bank's market position and improve its competitive standing in the banking sector. The initiative reflects the bank's confidence in its ability to scale operations effectively while maintaining service quality.

Expected Performance Outlook

Bank Of Maharashtra's management has expressed optimism about achieving strong double-digit growth rates in the coming years. This growth projection is directly linked to the bank's planned branch expansion strategy, which aims to increase customer base and transaction volumes. The strategic expansion is expected to contribute significantly to the bank's overall business performance and market penetration.

Strategic Market Positioning

The branch expansion initiative represents a focused approach to strengthen the bank's presence across key markets. By increasing its physical footprint, Bank Of Maharashtra aims to enhance customer convenience and accessibility to banking services. This strategy aligns with the bank's broader objectives of sustainable growth and market expansion in the competitive banking landscape.