Bank of Maharashtra Reports Strong Q3 FY26 Results with 26.5% YoY Profit Growth
Bank of Maharashtra reported strong Q3 FY26 results with net profit growing 26.5% YoY to ₹1,779.33 crores. Asset quality improved with gross NPAs declining to 1.60% and net NPAs to 0.15%. The bank completed a 6% OFS achieving SEBI compliance and declared 10% interim dividend, reflecting robust operational performance and strategic progress.
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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.
| Metric | Q3 FY26 | Q3 FY25 | YoY Growth |
|---|---|---|---|
| Net Profit | ₹1,779.33 cr | ₹1,406.45 cr | +26.5% |
| Total Income | ₹8,277.06 cr | ₹7,112.43 cr | +16.4% |
| Interest Earned | ₹7,344.20 cr | ₹6,324.65 cr | +16.1% |
| Operating Profit | ₹2,735.57 cr | ₹2,303.01 cr | +18.8% |
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.
| Parameter | Q3 FY26 | Q3 FY25 | Improvement |
|---|---|---|---|
| Gross NPA Ratio | 1.60% | 1.80% | -20 bps |
| Net NPA Ratio | 0.15% | 0.20% | -5 bps |
| Gross NPA Amount | ₹4,387.79 cr | ₹4,124.30 cr | +6.4% |
| Net NPA Amount | ₹412.29 cr | ₹442.77 cr | -6.9% |
| Provision Coverage Ratio | 98.41% | - | Strong |
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.
| Development | Details |
|---|---|
| Interim Dividend | 10% (₹1 per share) |
| Face Value | ₹10 per share |
| OFS Completion | 6% equity stake sold |
| Public Shareholding | SEBI compliance achieved |
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.
Source:
Historical Stock Returns for Bank of Maharashtra
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.01% | +1.59% | +14.06% | +16.26% | +39.62% | +339.53% |
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