Bank of Maharashtra (BoM) has received a vote of confidence from CRISIL Ratings Limited, which has reaffirmed its 'CRISIL A1+' rating on the bank's Rs 20,000 crore Certificate of Deposits program. This rating reaffirmation underscores the bank's strong financial position and positive outlook in the Indian banking sector.

Key Factors Supporting the Rating

The rating reaffirmation is based on several key strengths of Bank of Maharashtra:

1. Strong Government Support: As a public sector bank, BoM benefits from the expectation of robust support from the Government of India (GoI), which holds a 79.6% stake in the bank.

2. Comfortable Resource Profile: The bank maintains a healthy proportion of low-cost current account and savings account (CASA) deposits, which stood at 50.4% of total deposits as of September 30, 2025.

3. Improving Asset Quality: BoM has shown sustained improvement in its asset quality metrics, with gross non-performing assets (GNPAs) declining to 1.72% as of September 30, 2025, from 1.74% on March 31, 2025.

4. Enhanced Profitability: The bank reported a net profit of Rs 3,226 crore in the first half of fiscal 2026, with an improved return on assets (RoA) of 1.74%.

Financial Performance Highlights

Strengths and Challenges

Strengths:

• Strong government backing with a 79.6% stake
• Comfortable liquidity position with a liquidity coverage ratio of 118.12%
• Sustained improvement in asset quality and profitability

Challenges:

• Moderate scale of operations in the overall banking sector
• High regional concentration with 71.6% of deposits and 51.7% of advances in Maharashtra

Outlook

The 'CRISIL A1+' rating reflects the highest degree of safety regarding timely payment of financial obligations. This rating reaffirmation is likely to boost investor confidence in Bank of Maharashtra's short-term debt instruments.

While the bank has shown impressive improvements in various financial metrics, it will be crucial for BoM to maintain this positive trajectory, especially in terms of asset quality and profitability. The bank's ability to diversify its geographic presence beyond Maharashtra and scale up its operations in the competitive banking landscape will be key factors to watch in the coming years.

Investors and stakeholders can view this rating reaffirmation as a positive indicator of Bank of Maharashtra's financial health and its capacity to meet short-term financial commitments.

Bank of Maharashtra , a prominent public sector bank, has announced revisions to its Marginal Cost of Funds Based Lending Rate (MCLR) effective October 31, 2025. The bank has implemented rate reductions across several tenors, which may impact borrowing costs for customers.

Key Rate Changes

The bank has made the following adjustments to its MCLR:

Impact of Rate Changes

The most significant reduction is observed in the overnight rate, which has decreased by 25 basis points from 8.20% to 7.95%. This change could potentially benefit short-term borrowers and impact the interbank lending market.

The one-month and three-month rates have also seen reductions of 10 basis points each, moving to 8.30% and 8.45% respectively. These adjustments may affect short-term loans and working capital financing.

It's noteworthy that the six-month and one-year MCLR rates remain unchanged at 8.70% and 8.85% respectively, indicating stability in medium-term lending rates.

Official Communication

The rate revision was officially communicated to both the BSE and NSE stock exchanges by Vishal Sethia, the Company Secretary and Compliance Officer of Bank of Maharashtra. This disclosure aligns with the bank's obligations under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Implications for Borrowers

While the reduction in short-term rates may lead to lower borrowing costs for some customers, the impact on long-term loans linked to the one-year MCLR remains neutral. Existing borrowers with loans tied to the reduced tenors may see some relief in their interest obligations, subject to the reset dates of their loans.

Potential borrowers considering short-term loans might find this an opportune time to approach Bank of Maharashtra, given the reduced rates for shorter tenors. However, as always, it's advisable for consumers to compare rates across multiple lenders and consider all aspects of loan terms before making financial decisions.

The bank's decision to adjust its MCLR comes amidst a dynamic financial landscape, and borrowers should stay informed about how these changes might affect their financial planning and loan obligations.