Bank of Maharashtra has received a positive rating action from Fitch Ratings, with the agency upgrading the bank's Viability Rating while maintaining its investment-grade status. The rating agency verified these changes on March 2, 2026, reflecting the bank's improved financial metrics and strengthened operational profile.

Rating Actions Overview

Fitch Ratings has taken several rating actions for Bank of Maharashtra, with most ratings being affirmed and key upgrades in viability assessments:

Government Support and Sovereign Linkage

The bank's Long-Term IDR and Government Support Rating are equalized with India's sovereign rating of BBB-/Stable, reflecting Fitch's assessment of high probability of extraordinary state support if needed. This assessment is based on the state's 73% ownership of the bank, Bank of Maharashtra's solid share of deposits and loans in its home state, and the government's strong propensity to support the banking system.

Improved Financial Performance

The Viability Rating upgrade to 'bb' is supported by significant improvements across multiple financial metrics. The bank's operating profit to risk-weighted asset ratio rose to 3.7% in 9MFY26 from 3.4% in FY25, exceeding Fitch's expectation of 3.3% for FY26. This improvement was driven by higher margins and lower credit costs.

Asset Quality Enhancements

Asset quality metrics have shown notable improvement:

Franchise Strength and Market Position

Bank of Maharashtra operates through approximately 2,700 branches, supporting its growth in granular loans. Retail, farm, and SME loans accounted for 62% of total loans at end-2025, contributing to above-average margins. While the bank maintains a 1.2% national market share of system loans and deposits, its franchise strength is concentrated in Maharashtra state, where per-capita income is about 1.5 times the national average.

Capital and Funding Profile

The bank maintains strong capital buffers with a Common Equity Tier 1 ratio of 15.6% in 9MFY26, including profits. Fitch expects this ratio to be sustained at around 14.5% in the near-to-medium term. The bank's loss-absorption buffer was high relative to most state bank peers, with a net impaired loan to CET1 ratio of 1.6%.

Funding and liquidity remain strengths, supported by deposit stability reflecting depositors' confidence due to state linkages. The bank maintains a liquidity coverage ratio of 116% and customer deposits represent 91% of total non-equity funding in 9MFY26.

Rating Outlook and Sensitivities

The stable outlook on the Long-Term IDR mirrors that on India's sovereign IDR. Positive rating action could occur if there is corresponding positive sovereign rating action, while negative action could result from weakened sovereign support assessment or material deterioration in the bank's risk profile. A VR upgrade is likely if Fitch revises the bank's Operating Environment score to 'bbb-', indicating lower system risks.

Bank of Maharashtra has successfully completed its annual interest payment on Long Term Infrastructure Bonds, demonstrating its commitment to timely debt servicing obligations. The bank paid ₹124.12 crore as interest on February 18, 2026, fulfilling its regulatory and contractual commitments to bondholders.

Bond Payment Details

The interest payment pertains to the bank's Long Term Infrastructure Bonds with ISIN INE457A08183, which have a substantial issue size of ₹1,612.00 crore. The payment was made in accordance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, under Regulation 57(1).

Timely Compliance

The bank demonstrated excellent financial discipline by making the payment exactly on the due date without any delays. The interest payment record date was set for February 3, 2026, providing adequate notice to bondholders. Bank of Maharashtra maintained its annual payment frequency for these infrastructure bonds, with no changes reported in the payment schedule.

Regulatory Framework

The payment was executed under the regulatory framework established by SEBI's listing obligations, ensuring transparency and proper disclosure to stakeholders. The bank has communicated this information to both BSE Ltd. and National Stock Exchange of India Ltd., maintaining compliance with stock exchange requirements. Additionally, Axis Trustee Services Limited, serving as the Debenture Trustee for these bonds, was also informed of the successful payment.

This timely interest payment reinforces Bank of Maharashtra's financial stability and its ability to meet debt obligations as scheduled, providing confidence to bondholders and the broader investment community.