Bank of Maharashtra (BoM) on Friday reported a 26.84% year-on-year (y-o-y) jump in net profit to Rs 2,020 crore for the June quarter, driven by healthy growth in net interest income, improved asset quality and a sustained push towards low-cost deposits. Operating profit for the quarter rose 21.29% to Rs 3,117crore. Net interest margin was 3.85% against the bank’s full-year guidance of 3.75%. The bank attributed the performance to better asset quality, the Emergency Credit Line Guarantee Scheme (ECLGS) led MSME loan growth and a continued focus on mobilising low-cost deposits. The Bank’s International Branch became profitable in March 2026, within six months of commencing operations.
Managing Director and CEO Nidhu Saxena said the bank had met all FY27 guidance numbers and, in some cases, exceeded them by a good margin. Net interest income rose 14.53% to Rs 3,770 crore. Regarding the FCNRB deposit mobilisation, he said it was early days, and there were no big numbers to report. They were in the process of formulating guidelines and setting internal targets. Saxena was confident of a sizable mobilisation by September as they were offering an interest rate of 6.60%, which was among the best by PSBs.
International Expansion Traction
The decision to open the IBU has proved right, with the brand reaching $965 million in sanctions and $2.79 million in profits. After seeing the IBU gain traction, the Bank is planning to raise funds for growth. The bank has received approval for a $ 500 million bond issue, and it is evaluating options and rates for raising these funds. They will be reaching out to investors in Hong Kong, Singapore, Vietnam and Japan for this, Saxena said.
Deposits grew 19.10%, and CASA deposits were up 9%, adding Rs 14,000 crore during the quarter and accounting for 48% of the deposits. BoM did not issue a CD (certificate of deposit) in Q1. “We have consciously not looked at the CD option. The credit growth in our bank has been funded not from borrowings but by deposits,” Saxena said.
Core Loan Book Trajectory
Advances rose by 26.90%, led by growth in the Retail, Agriculture and MSME (RAM) loans. Retail loans were up 24.59% to Rs 89,661 crore, agri up 28.94% to Rs 42,290 crore, and MSME advances up 23.17% to Rs 55,386 crore. According to Saxena, the MSME loans segment benefited from the ECLGS, and the bank has already sanctioned 65% of the loans to eligible MSMEs. Of this, around 82% have already been disbursed. He did not foresee any impact on ECLGS provisioning. Without the ECLGS, the MSME credit growth would have been at 17%, the BoM MD said. Around Rs 3,100 crore has gone to MSMEs and Rs 400 crore to other corporates.
On the asset quality front, the bank’s gross NPA stood at 1.45%, and net NPA was at 0.13%, both flat sequentially.
Addressing concerns over agricultural advances, Saxena said they had yet to see any adverse impact on the rainfall deficit or distribution of rains, and did not expect any stress.
On the CASA deposit reduction, Saxena said it had come down from 52-53% earlier to 48.5%, but it was better than the industry performance, which had decreased from 44% to 34-36%, as people were moving to different asset classes. BoM will maintain core deposit growth and higher CASA growth, he said.
On the fundraising plans, he said they have approvals for Rs 7,500 crore (Rs 5,000 crore via equity and Rs 2,500 crore via debt) in FY27. The mode and timing of funding will be decided later, as they are adequately capitalised for now.