Bank of Maharashtra reported a net profit of Rs 1,593 crore in Q1, up 23.14% year-on-year (y-o-y). Net interest income increased by 17.60% to Rs 3,292 crore, driven primarily by high double-digit growth in the retail loan portfolio. The bank’s net interest margin (NIM) was 3.95% as of June 30, 2025, down 2 basis points y-o-y.
Asset quality deteriorated in the agriculture sector with the NPAs rising to 9.65% up from 7.77% a year ago. The slippage ratio was 1.23% for the quarter, compared to 1.18% in the June 2024 quarter.
The net NPA improved to 1.74%, while the gross NPA stood at 0.18%, compared to last June’s net NPA of 1.85% and gross NPA of 0.20%. The provision coverage ratio remained unchanged at 98.36%.
MD and CEO,Nidhu Saxena said the performance aligned with their guidance, and in many areas, exceeded expectations.
While overall asset quality remained stable, there were some slippages in the retail agriculture and MSME (micro, small, and medium enterprises) segments.
Saxena attributed this to cyclical developments, noting there was some pressure on agricultural advances. The slippage, he said is a recurring issue in the first quarter but expressed optimism about a recovery in coming months, with some upgrades already seen in first 15 days of this quarter.
The share of the bank’s CASA (current account savings account) ratio was 50.07% at the end of the quarter, compared to 49.86% a year ago. The bank is continuing its strategy of reducing its reliance on high-cost bulk deposits and focusing on low-cost individual deposits.
Retail advances grew by 35.37% to Rs 7,109.66 crore, driven by a 29% increase in housing loans, which reached Rs 40,001 crore. The gold loan segment now accounts for 39% of the other retail loan segment, totalling Rs 9,806 crore. However, the growth in agriculture and MSME advances was modest, with increases of 3% and 6.6%, respectively.
Saxena announced that the bank has obtained regulatory approval for a Rs 7,500 crore fundraising initiative, which includes raising Rs 5,000 crore through equity and Rs 2,500 crore through debt. Additionally, the bank has received approval to issue Rs 10,000 crore worth of infrastructure bonds. The bank is actively engaging with investors and plans to raise funds at an opportune time.
Saxena confirmed that the bank is maintaining its guidance for FY26, projecting a NIM of 3.75%. However, it has already outperformed this guidance in Q1 FY26, achieving a NIM of 3.95%. The bank aims for a 17% growth in advances for FY26 and expresses confidence in either meeting or surpassing this target.
Growth is expected to be driven by new branches in emerging markets, particularly focusing on five states: Madhya Pradesh, Uttar Pradesh, Rajasthan, Bihar, and Jharkhand. The bank has identified 120 branches as new growth clusters and has improved its products, processes, and response time to meet the demands arising from these new branches.
Overall, the bank’s total business grew by 14.63% to Rs 5.46 lakh crore, with deposits increasing by 14.07% to Rs 3.05 lakh crore and gross advances rising by 15.34% to Rs 2.41 lakh crore.