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.

Bank of Maharashtra , one of India's leading public sector banks, has announced plans to raise ₹10,000 crore through infrastructure bonds in the current fiscal year. This significant move aims to bolster the bank's capital base and support its growth initiatives.

Timing and Market Conditions

The bank intends to issue these infrastructure bonds later in the year, with the exact timing dependent on prevailing interest rate movements. This strategic approach allows the bank to potentially secure more favorable terms for its bond issuance.

Additional Capital Raising Approvals

In addition to the infrastructure bond issue, Bank of Maharashtra has secured approvals for raising further capital:

• ₹5,000 crore in equity
• ₹2,500 crore in debt

These approvals provide the bank with flexibility to access various funding sources as needed to support its operations and growth plans.

Financial Performance Context

The announcement comes on the heels of the bank's strong financial performance for the recent quarter. Key highlights include:

This robust financial position likely provides a solid foundation for the bank's ambitious capital raising plans.

Implications for Growth and Infrastructure Financing

The substantial size of the proposed infrastructure bond issue suggests that Bank of Maharashtra is positioning itself to play a significant role in financing infrastructure projects. This aligns with the broader national focus on infrastructure development as a key driver of economic growth.

As the bank moves forward with its capital raising initiatives, investors and market observers will be closely watching for further details on the terms of the bond issue and how the bank plans to deploy the raised capital to support its growth strategy and contribute to India's infrastructure development goals.