NewsEarningsBank of Maharashtra Reports Record Q3FY26 Profit of ₹1,779 Crores, Approves 10% Interim DividendBank of Maharashtra Reports Record Q3FY26 Profit of ₹1,779 Crores, Approves 10% Interim Dividend
Bank of Maharashtra delivered record Q3FY26 results with highest quarterly profit of ₹1,779 crores and nine-month profit of ₹5,005 crores. The bank exceeded all guidance parameters with 17.24% business growth, 20% advances growth, and maintained 50% CASA share. Asset quality improved with gross NPA at 1.60% and net NPA at 0.15%. Strong profitability metrics included ROE of 23.79%, ROA of 1.86%, and NIM of 3.87%. The Board approved 10% interim dividend reflecting sustained performance confidence.
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Bank of Maharashtra announced exceptional financial results for Q3FY26, reporting its highest-ever quarterly profit of ₹1,779 crores during an earnings conference call held on January 13, 2026. The bank's nine-month net profit exceeded ₹5,000 crores, reaching ₹5,005 crores, demonstrating consistent profitability growth.
Outstanding Performance Across Key Metrics
The bank surpassed all guidance parameters set at the beginning of the fiscal year. Managing Director and CEO Nidhu Saxena highlighted the bank's comprehensive performance across business segments.
| Performance Metric | Q3FY26 Achievement | Guidance Target | Status |
|---|---|---|---|
| Total Business Growth | 17.24% | 15% | Exceeded |
| Total Business Size | ₹5,95,000 crores | - | - |
| Deposits Growth | 15.30% | 14% | Exceeded |
| Advances Growth | 20% | 17% | Exceeded |
| CASA Share | 50% | Above 50% | Maintained |
Strong Asset Quality and Risk Management
Bank of Maharashtra demonstrated improved asset quality metrics with effective stress management in its loan portfolio.
| Asset Quality Indicator | Q3FY26 | Previous Quarter | Improvement |
|---|---|---|---|
| Gross NPA | 1.60% | 1.72% | 12 bps |
| Net NPA | 0.15% | 0.18% | 3 bps |
| Overall Stress | 3.35% | - | - |
| SMA1 + SMA2 | 1.69% | - | 18 bps improvement |
The bank maintained stress levels above ₹5 crores at just 0.19%, indicating strong risk management practices.
Robust Profitability Metrics
The bank achieved exceptional profitability ratios, significantly exceeding guidance across all parameters.
| Profitability Metric | Q3FY26 Achievement | Guidance | Performance |
|---|---|---|---|
| Net Interest Margin (NIM) | 3.87% | 3.75% | +12 bps |
| Return on Assets (ROA) | 1.86% | 1.75% | +11 bps |
| Return on Equity (ROE) | 23.79% | Above 20% | +379 bps |
| Cost-to-Income Ratio | 37.19% | Below 40% | Well within target |
Retail Segment Growth and Product Performance
The bank's retail segment showed remarkable growth across key verticals, with the RAM (Retail, Agriculture, MSME) to Corporate ratio maintained at 63:37.
Key Retail Growth Drivers:
- Home Loans: 28% year-on-year growth
- Vehicle Loans: 54% year-on-year growth
- Gold Loans: 56% year-on-year growth
- Overall Retail Portfolio: 36% year-on-year growth
The bank's gold loan portfolio reached ₹22,000 crores including co-lending arrangements, with ₹16,500-17,000 crores through direct branches and ₹5,000 crores through co-lending partnerships with NBFCs.
Capital Adequacy and Ratings
Bank of Maharashtra maintained strong capital adequacy with CRAR at 17.06% and CET1 at 13.10%, well above regulatory requirements. The bank achieved significant rating milestones during the year, including a BBB- Stable rating from S&P Global in September 2025, complementing its existing AA+ Stable ratings from ICRA and CARE.
Strategic Initiatives and Expansion
The bank continued its aggressive expansion under Project 321, opening 116 branches during the fiscal year. These branches are strategically located in high-potential centers identified through scientific analysis at PIN code levels. The bank has Board approval to open 1,000 branches over the next five years.
Technology and Digital Enhancement:
- Launched revamped mobile application achieving 6 lakh active users versus 225,000 in the previous version
- Established 9 co-lending partnerships primarily in gold, housing, and MSME segments
- Implemented digital API integration for seamless co-lending operations
Dividend Declaration and Government Stake
Reflecting strong financial performance, the Board approved a 10% interim dividend. Following the government's Offer for Sale (OFS) during the nine-month period, Bank of Maharashtra became MPS-compliant with Government of India holding at 73.60%.
Outlook and Strategic Focus
The bank maintains its guidance of achieving 14% deposit growth for the full fiscal year while focusing on low-cost CASA deposits. Management emphasized conscious strategy to reduce dependence on high-cost bulk deposits, with bulk deposits showing year-on-year degrowth of 7% in the quarter. The bank continues to leverage alternative funding sources, including ₹14,000-15,000 crores of refinance transactions at blended rates of 6-6.5%.
Historical Stock Returns for Bank of Maharashtra
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.96% | +5.05% | +16.66% | +18.63% | +26.15% | +351.05% |
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