Stock Report

Bank of Maharashtra Net Profit Jumps 34.5% to ₹2,023 Crore in Q1 FY27; Asset Quality Holds Firm

Posted On : 2026-07-12 11:04:03( TIMEZONE : IST )

Bank of Maharashtra has announced its unaudited consolidated financial results for the first quarter of the fiscal year 2026-27 ended June 30, 2026. The Pune-headquartered public sector lender delivered a robust financial performance to open the new fiscal year, showcasing strong double-digit growth in net profit and a steady reduction in bad loans compared to the same period last year.

Income Generation and Revenue Architecture

During the opening quarter of FY27, Bank of Maharashtra registered a total income of ₹9,06,353 lakhs (~₹9,063.5 crore), highlighting an impressive 15.03% year-on-year growth against the ₹7,87,918 lakhs posted in Q1 FY26. Sequentially, total revenue expanded by 4.26% over the ₹8,69,346 lakhs logged in the immediate preceding quarter ended March 31, 2026.

The bank's revenue streams were anchored by core interest earnings, which grew to ₹8,03,465 lakhs from ₹7,10,398 lakhs in the corresponding year-ago period. A deeper dive into interest lines reveals:

Advances & Bills: Interest and discounting on advances or bills generated the majority of the revenue at ₹6,26,636 lakhs.

Investments: Investment portfolios brought in ₹1,72,422 lakhs.

Inter-bank Funds: Interest on balances with the Reserve Bank of India (RBI) and other inter-bank funding channels contributed ₹3,105 lakhs.

Other Income: Non-interest revenues climbed to ₹1,02,888 lakhs, up from ₹82,520 lakhs year-on-year.

Operating Efficiency and Segment Performance

Total expenditure (excluding provisions and contingencies) stood at ₹5,94,590 lakhs for the quarter, compared to ₹5,30,878 lakhs in Q1 FY26. Core interest expended reached ₹4,26,429 lakhs, reflecting the broader industry trend of rising deposit costs. Total operating expenses were well-managed at ₹1,68,161 lakhs, within which staff-related employee costs accounted for ₹1,006,82 lakhs and miscellaneous operating costs accounted for ₹67,479 lakhs.

Strong top-line gains outstripped operating costs, driving core operating profits up 21.29% year-on-year to ₹3,11,763 lakhs from ₹2,57,040 lakhs.

From a segment operations viewpoint, core banking verticals showcased resilient execution. Total segment revenue reached ₹9,86,431 lakhs before inter-segment eliminations:

Retail Banking Operations led total revenue generation, yielding ₹3,99,036 lakhs (with digital banking bringing in ₹32 lakhs).

Corporate / Wholesale Banking Operations contributed ₹3,08,937 lakhs.

Treasury Operations brought in ₹2,03,706 lakhs.

Provisions, Net Profit, and Return Metrics

Bank of Maharashtra earmarked ₹84,041 lakhs for provisions (other than tax) and contingencies during the three-month period, down marginally from the ₹86,741 lakhs set aside in Q1 FY26. Specific allocations made for non-performing assets (NPAs) stood at ₹75,476 lakhs. After subtracting a corporate tax outgo of ₹25,668 lakhs and incorporating a minor profit share of ₹276 lakhs from associate entities, the lender concluded the period with a Consolidated Net Profit of ₹2,02,332 lakhs (~₹2,023.32 crore).

This final bottom-line highlights a sharp 34.50% expansion compared to the ₹1,50,437 lakhs cleared in the year-ago quarter, while holding nearly steady against the sequential ₹2,04,488 lakhs netted in Q4 FY26. The lender's annualized Return on Assets (RoA) improved notably to 1.90%, up from 1.70% in the year-ago period.

Superior Asset Quality and Shareholder Metrics

The bank's credit risk profile showed significant refinement on a year-on-year basis. While absolute Gross NPAs rose slightly to ₹4,43,428 lakhs from ₹4,20,583 lakhs in Q1 FY26, the Gross NPA ratio fell sharply to 1.45% from 1.74% year-on-year, mirroring the sequential asset level. Similarly, the Net NPA ratio declined to a low 0.13%, improving from 0.18% in the year-ago period and holding perfectly steady with the preceding quarter.

On a stable paid-up equity share capital base of ₹7,69,156 lakhs consisting of shares with a face value of ₹10 each, basic and diluted earnings per share (EPS) expanded to ₹2.63 per share for the quarter, up from ₹1.96 year-on-year. The bank's consolidated net worth stood strengthened at ₹32,90,029 lakhs, with the Government of India maintaining its controlling equity stake at 73.60%.

Shares of Bank of Maharashtra was last trading in BSE at Rs. 84.35 as compared to the previous close of Rs. 82.00. The total number of shares traded during the day was 2589488 in over 11526 trades.

The stock hit an intraday high of Rs. 87.40 and intraday low of 81.66. The net turnover during the day was Rs. 218126646.00.