Bank of Maharashtra shares surged 4.04% to end at ₹75.66 on the BSE following the lender's comprehensive Q4 FY26 earnings announcement. The state-run bank reported net profit of ₹2,014 crore, representing a 35% increase from the previous year. According to latest reports, the bank's Net Interest Income (NII) grew 18.81% YoY to ₹3,702 crore compared to the previous year, with net interest margin standing at 3.9%. The bank's total income for Q4 FY26 increased 12.79% YoY to ₹8,693.04 crore, while profit before tax (PBT) climbed 51.58% to ₹2,329.09 crore during the quarter. For the full year FY26, the bank reported net profit of ₹7,019.32 crore, representing a 27.16% YoY increase, with total income rising 15.56% to ₹32,822.53 crore.
The management has set ambitious growth targets for the upcoming financial year, with total business growth projected between 16% to 17%. As reported by CNBC TV18, the bank expects advances growth of 18% and deposits growth of 14% to 15% for FY27. The lender anticipates Net Interest Income (NII) growth of 15% year-on-year and Net Interest Margins (NIMs) at 3.75%. Additionally, the bank targets Return on Assets (RoA) at 1.8% and Return on Equity (RoE) at 20% or higher. CEO Nidhu Saxena confirmed that credit to grow at 18% while deposits to grow at 14% to 15% in FY27. The bank's board has passed an enabling resolution to raise capital up to ₹7,500 crore through equity and debt instruments.
The bank's asset quality showed marked improvement in Q4 FY26, with gross NPA declining to 1.45% as of March 31, 2026, from 1.74% a year earlier and 1.6% in the quarter-ago period. Net NPA also improved to 0.13% from 0.18% in the corresponding period, while provision coverage ratio strengthened to 98.59%, up from 98.26% a year back and 98.41% in Q3 FY26. The management has guided for gross NPA to remain within 2% and net NPA within 0.2% for FY27. The bank expects slippages below 1%, credit cost around 1%, and provision coverage ratio at 98%. The credit to risk-weighted assets ratio (CRAR) is projected at 18%, with Basel III capital adequacy ratio improving to 18.36%, including a Common Equity Tier 1 (CET1) ratio of 14.59%.
The bank's business expansion was robust, with total business expanding 17.47% YoY to ₹6.42 lakh crore, driven by a 14.14% rise in deposits to ₹3.51 lakh crore and a 21.74% increase in gross advances to ₹2.92 lakh crore. Net advances grew 22.03% YoY to ₹2.88 lakh crore. The bank's Retail, Agriculture, and MSME (RAM) segment grew 21% YoY, with retail advances surging 32% to ₹85,857 crore and MSME advances rising 10.71% to ₹53,547 crore. The cost-to-income ratio improved to 37.08% for FY26 from 38.37% in FY25, while Return on Assets (ROA) rose to 1.97% and Return on Equity (ROE) improved to 23.19% for the full year. However, treasury income fell 63% to ₹33 crore in March 2026 from ₹97 crore a year earlier.
The bank has recommended a final dividend of ₹1.20 per equity share (12%) for FY26, subject to shareholder approval at the upcoming annual general meeting. This follows the interim dividend of ₹1 per equity share declared in January 2026. The bank is planning significant fundraising activities, including raising up to ₹7,500 crore through equity instruments such as QIP, FPO, or rights issues, along with Basel III-compliant bonds. Additionally, the bank plans to issue long-term infrastructure bonds of up to ₹10,000 crore and raise up to $500 million via foreign currency bonds in the new fiscal year. The bank's board has also approved raising ₹10,000 crore through long-term infrastructure bonds in fiscal 2027 to support its growth initiatives.
