Bank of Maharashtra , one of India's leading public sector banks, has reported a strong performance for the first quarter, demonstrating consistent growth across key financial metrics.

Business Growth and Financial Highlights

The bank's total business reached ₹5.46 lakh crore, marking a significant year-on-year growth of 15.00%. This growth translated to an addition of ₹70,000 crore to the bank's business volume. Despite challenges in the operating environment, Bank of Maharashtra maintained a healthy Net Interest Margin (NIM) of 3.95%, only slightly down from 4.00% in the previous quarter.

Asset Quality and Profitability

Bank of Maharashtra continued to demonstrate robust asset quality metrics. The bank's Net Non-Performing Assets (NNPA) ratio stood at an impressive 0.18%, well below its guidance of 0.20% to 0.25%. The Provision Coverage Ratio (PCR) remained strong at 98.36%, indicating a conservative approach to risk management.

Operational Efficiency

The bank's focus on operational efficiency was evident in its cost-to-income ratio, which improved to 37.57% from over 38.00% in the previous year. This improvement came despite ongoing investments in expansion and technology upgrades.

Strategic Initiatives

Bank of Maharashtra is pursuing an aggressive expansion strategy, with plans to open 321 new branches over the next 18 months. This expansion is part of a larger objective to open 1,000 branches over the next five years, aimed at strengthening the bank's pan-India presence.

In a significant development, the bank has received regulatory approval to establish an International Banking Unit (IBU) at GIFT City. This move is expected to open up new avenues for growth, including participation in global syndications and External Commercial Borrowing (ECB) transactions.

Capital Adequacy and Future Outlook

The bank's Capital Adequacy Ratio (CAR) stood at a robust 20.50%, well above regulatory requirements. While there are no immediate plans for capital raising, the bank has board approval to raise up to ₹7,500 crore through debt and equity at an opportune time.

Management Commentary

Shri Nidhu Saxena, Managing Director and CEO of Bank of Maharashtra, commented on the results: "This quarter qualifies as yet another consistent performing quarter. Our business growth, total business advances, deposit, CASA, RAM, asset quality, profitability and efficiency ratios seem to be well within the guided range."

Looking ahead, the bank maintains its guidance, targeting 17.00% advance growth and 14.00% deposit growth. With its strong performance and strategic initiatives, Bank of Maharashtra appears well-positioned to continue its growth trajectory in the coming quarters.

Bank of Maharashtra (BoM) has announced ambitious financial targets for the future during its recent concall update, while also reporting robust performance for the first quarter of fiscal year 2025-26.

Financial Targets

The bank has set its sights on achieving a Current Account Savings Account (CASA) ratio of over 50% and aims to bring its cost-to-income ratio below 40%. These targets reflect the bank's focus on improving its deposit mix and operational efficiency.

Despite recent higher Net Interest Margins (NIMs) of 3.95-4.00%, BoM maintains a NIM target of 3.75% for FY26, indicating a conservative approach to margin management. The bank expects total business growth of 15%, with a 17% increase in advances and 14% growth in deposits.

Q1 FY26 Performance Highlights

For the quarter ended June 30, 2025, Bank of Maharashtra reported impressive year-on-year growth across key financial metrics:

• Net Profit surged by 23.14% to ₹1,593.00 crore
• Operating Profit increased by 12.01% to ₹2,570.00 crore
• Net Interest Income grew by 17.60% to ₹3,292.00 crore
• Return on Assets (ROA) improved to 1.80% from 1.72% in Q1 FY25

Asset Quality and Capital Adequacy

The bank's asset quality showed improvement, with Gross Non-Performing Assets (GNPA) ratio decreasing to 1.74% as of June 30, 2025, compared to 1.85% a year ago. The Net NPA ratio also improved to 0.18% from 0.20% in the same period.

BoM's capital position remained strong, with the Capital Adequacy Ratio (CAR) under Basel III norms standing at 20.06%, well above regulatory requirements.

Business Growth

Total business of the bank grew by 14.63% year-on-year to ₹546,143.00 crore. Gross advances increased by 15.34% to ₹241,097.00 crore, while total deposits rose by 14.07% to ₹305,046.00 crore.

The bank's CASA deposits improved to 50.07% of total deposits, aligning with its strategic targets.

Segment-wise Performance

Retail advances showed robust growth of 35.37% year-on-year, reaching ₹71,966.00 crore. The MSME sector also saw growth, with advances increasing by 5.65% to ₹44,967.00 crore.

Outlook

With its strong Q1 performance and ambitious targets, Bank of Maharashtra appears well-positioned for sustained growth. The bank's focus on improving CASA ratio, managing costs, and maintaining asset quality bodes well for its future prospects in the competitive banking sector.

As the bank continues to execute its growth strategy, investors and stakeholders will be watching closely to see if it can maintain this momentum and achieve its stated financial targets for FY26.