Bank of Maharashtra , a prominent public sector bank , has announced impressive year-over-year growth in its key financial metrics for the fiscal year ending March 31, 2025. The bank's performance highlights its strong position in the Indian banking sector and its ability to attract deposits while expanding its loan portfolio.

Deposit Growth

Bank of Maharashtra reported a significant increase in its total deposits, which grew by 13.45% year-over-year. As of March 31, 2025, the bank's total deposits stood at ₹307,152.00 crore, up from ₹270,747.00 crore in the previous year. This growth demonstrates the bank's ability to attract and retain customer deposits, reflecting increased trust and confidence in the institution.

Advances Expansion

The bank's gross advances witnessed a substantial rise of 17.84% year-over-year. As of March 31, 2025, gross advances reached ₹240,007.00 crore, compared to ₹203,664.00 crore at the end of the previous fiscal year. This growth in the loan book indicates the bank's active participation in supporting various sectors of the economy and its commitment to credit expansion.

CASA Deposits and Ratio

Current Account and Savings Account (CASA) deposits, a key indicator of a bank's low-cost deposit base, also showed robust growth. CASA deposits increased by 14.64% year-over-year, reaching ₹163,669.00 crore. The CASA ratio, which represents the proportion of CASA deposits to total deposits, improved to 53.29% as of March 31, 2025, up from 52.73% in the previous year. This improvement suggests enhanced operational efficiency and reduced cost of funds for the bank.

Overall Business Growth

The bank's total business, which is the sum of deposits and gross advances, grew by 15.33% year-over-year, reaching ₹547,159.00 crore as of March 31, 2025. This overall growth reflects the bank's expanding market presence and its ability to capitalize on opportunities in both deposit mobilization and credit deployment.

Credit-Deposit Ratio

The Credit-Deposit (CD) ratio, which indicates the proportion of loans given out of the deposits received, stood at 78.14% as of March 31, 2025. This represents a moderate increase from 75.22% in the previous year, suggesting that the bank has maintained a balanced approach to lending while ensuring adequate liquidity.

The strong performance across key financial parameters underscores Bank of Maharashtra's resilience and growth trajectory in the competitive banking landscape. As the bank continues to focus on expanding its deposit base and loan portfolio, it is well-positioned to support economic growth and meet the diverse financial needs of its customers.

*Subject to audit

Bank of Maharashtra , a prominent public sector bank, has announced plans to invest up to ₹50.00 crore in tier-I perpetual bonds to be issued by Maharashtra Gramin Bank, a regional rural bank under its sponsorship. This strategic move aims to strengthen the capital base of the rural financial institution and enhance its lending capabilities in Maharashtra's rural areas.

Investment Details

The total bond issue by Maharashtra Gramin Bank is planned for ₹70.00 crore, with Bank of Maharashtra taking a significant portion of the offering. The remaining ₹20.00 crore is expected to be raised from the market, indicating a balanced approach to funding and investor participation.

Bond Specifications

Strategic Implications

This investment by Bank of Maharashtra demonstrates its commitment to supporting rural banking infrastructure and promoting financial inclusion in Maharashtra's rural areas. By investing in Maharashtra Gramin Bank's tier-I bonds, Bank of Maharashtra is helping to bolster the rural bank's capital adequacy and potentially expand its operational capacity.

Market Context

The decision to invest in these bonds comes at a time when strengthening rural financial institutions is crucial for India's economic growth. Regional rural banks play a vital role in providing banking services to underserved areas, and this capital infusion could enhance Maharashtra Gramin Bank's ability to meet the financial needs of rural communities.

The attractive interest rate of 10.15% on the bonds suggests a competitive offering that balances the need for capital with investor returns. This rate may also reflect the current interest rate environment and the specific risk profile of regional rural bank instruments.

As the bond issue is expected to close before the end of March, it aligns with the financial year-end considerations, potentially benefiting both institutions in their year-end financial reporting.

This move by Bank of Maharashtra underscores the interconnected nature of India's banking system and the importance of public sector banks in supporting smaller, specialized financial institutions that serve critical segments of the economy.