Bank of Maharashtra has reported fresh slippages of ₹7.50 billion in its latest quarterly results, representing an increase from the previous quarter's figure of ₹7.10 billion. This development highlights the bank's ongoing challenges in managing asset quality during the reporting period.

Fresh Slippages Analysis

The bank's fresh slippages showed a sequential increase, with the following quarterly comparison:

Asset Quality Implications

Fresh slippages represent loans that have transitioned from the standard category to non-performing assets (NPAs) during the reporting quarter. This metric serves as a crucial indicator of a bank's asset quality trends and credit risk management effectiveness. The increase of ₹0.40 billion in fresh slippages suggests that Bank of Maharashtra faced headwinds in maintaining its loan portfolio quality during the quarter.

Key Takeaways

The reported figures indicate:

• Sequential growth in fresh slippages on a quarter-on-quarter basis
• Continued pressure on asset quality metrics
• Need for enhanced credit monitoring and recovery mechanisms

The bank's management will likely focus on strengthening its credit appraisal processes and recovery efforts to address the rising trend in fresh slippages and maintain overall portfolio health.

Bank of Maharashtra delivered robust financial performance for the quarter ended December 31, 2025, showcasing strong growth across key metrics and improved asset quality. The public sector bank reported significant year-on-year improvements in profitability while maintaining healthy operational efficiency.

Financial Performance Highlights

The bank's financial results for Q3 FY26 demonstrated strong momentum across all major parameters. Net profit after tax reached ₹1,779.33 crores, marking a substantial 26.5% increase from ₹1,406.45 crores in the corresponding quarter of the previous year.

For the nine-month period ended December 31, 2025, the bank maintained its growth trajectory with net profit of ₹5,005.23 crores compared to ₹4,026.71 crores in the previous year, representing a 24.3% increase.

Asset Quality Improvement

Bank of Maharashtra demonstrated significant improvement in asset quality metrics during the quarter. The bank's disciplined approach to risk management and recovery efforts yielded positive results across all NPA parameters.

The improvement in NPA ratios despite higher absolute amounts indicates the bank's growing loan book and effective provisioning strategy.

Capital Adequacy and Profitability Ratios

The bank maintained strong capital adequacy ratios well above regulatory requirements. The Capital Adequacy Ratio under Basel III framework stood at 17.06% as of December 31, 2025, with Common Equity Tier 1 ratio at 13.10%.

Profitability metrics showed consistent improvement with Return on Assets reaching 1.86% on an annualized basis, up from 1.78% in the previous year. The operating margin improved to 33.05% from 32.38%, while net profit margin expanded to 21.50% from 19.77%.

Corporate Actions and Strategic Developments

The Board of Directors approved several significant decisions during their meeting on January 13, 2026. The board declared an interim dividend of 10% (₹1.00 per equity share) for FY 2025-26, reflecting confidence in the bank's financial performance.

A major milestone was the successful completion of an Offer for Sale (OFS) on December 1, 2025, where the Government of India sold 46.15 crore equity shares representing 6% of the paid-up capital. This transaction ensured compliance with SEBI's minimum public shareholding requirement of 25%.

Segment Performance Analysis

The bank's diversified business model showed balanced growth across segments. Retail Banking Operations generated revenue of ₹3,783.19 crores in Q3 FY26, while Corporate/Wholesale Banking Operations contributed ₹2,876.82 crores. Treasury Operations added ₹1,557.86 crores to the total revenue mix.

Digital Banking, reported as a sub-segment of Retail Banking, showed steady progress with revenue of ₹0.27 crores for the quarter, indicating the bank's focus on digital transformation initiatives.

Operational Efficiency and Risk Management

Bank of Maharashtra continued to maintain robust risk management practices while improving operational efficiency. The bank reported 285 fraud cases involving ₹807.28 crores during the nine-month period, with provisions of ₹723.92 crores maintained for potential losses.

The bank holds COVID-19 related contingency provisions of ₹1,200 crores as of December 31, 2025, demonstrating prudent risk management in uncertain times. Additionally, the bank acquired loans worth ₹5,080.82 crores during the quarter through assignment, with appropriate retention of beneficial economic interest by originators.

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