Pune, India — April 20, 2026:
India’s public sector lender Bank of Maharashtra reported a robust financial performance for the fourth quarter and full fiscal year ended March 31, 2026, driven by strong loan growth, improved margins, and a sharp decline in bad loans.
The bank posted a standalone net profit (PAT) of ₹2,014 crore (approximately $240 million) in Q4FY26, marking a 34.9% year-over-year increase from ₹1,493 crore in the same period last year. The results underscore the bank’s continued momentum in profitability and operational efficiency.
Strong Quarterly Performance
Net interest income (NII), a key indicator of core earnings, rose significantly to ₹3,702 crore, supported by a 15.2% increase in interest earned. Operating profit climbed 16.9% year-over-year to ₹2,946 crore, while profit before tax surged 51.6% to ₹2,329 crore.
Provisions for bad loans dropped sharply by 37.3% to ₹617 crore, reflecting improved asset quality and lower stress in the loan book.
Record Annual Profit
For the full fiscal year FY26, the bank delivered its highest-ever net profit of ₹7,019 crore, up 27.2% from ₹5,520 crore in FY25. Annual operating profit rose 16.2% to ₹10,826 crore, highlighting sustained growth across business segments.
Dividend Boost for Shareholders
The board recommended a final dividend of ₹1.20 per equity share (12% of face value), in addition to an interim dividend of ₹1.00 already paid. This brings the total dividend payout for FY26 to ₹2.20 per share, subject to shareholder approval at the upcoming Annual General Meeting.
Asset Quality at Multi-Year Best
The bank’s asset quality continued to improve, with non-performing assets (NPAs) falling to some of the lowest levels in the industry:
- Gross NPA: 1.45% (down from 1.74% YoY)
- Net NPA: 0.13% (down from 0.18% YoY)
The provision coverage ratio (PCR) stood at an impressive 98.59%, providing a strong buffer against potential loan defaults.
Balance Sheet Shows Strong Growth
The bank reported healthy double-digit growth in both lending and deposits:
- Total Advances: ₹2.88 lakh crore (up 22% YoY)
- Total Deposits: ₹3.50 lakh crore (up 14.1% YoY)
- CASA Ratio: 48.50%, indicating strong low-cost deposits
Capital adequacy remained robust, with a capital adequacy ratio (CAR) of 18.36%, well above regulatory requirements. The bank’s CET-1 ratio stood at 14.59%.
Improved Profitability Metrics
- Return on Assets (RoA): 1.97% (up from 1.78%)
- Return on Equity (RoE): Improved significantly
- Operating Profit Margin: Increased to 33.89%
Lower funding costs and better yields on loans contributed to improved net interest margins.
Expansion and Strategic Developments
The bank continues to expand its branch network across India while maintaining cost discipline. It also reported stable performance from its subsidiary, The Maharashtra Executor and Trustee Company Pvt. Ltd.
An impairment loss of ₹280.59 crore was recognized due to the merger of Vidarbha Konkan Gramin Bank into Maharashtra Gramin Bank, in which the bank holds a 35% stake.
Fundraising Plans for Future Growth
The board approved multiple capital-raising initiatives:
- Equity Capital: Up to ₹7,500 crore via various routes including QIP and rights issues
- Infrastructure Bonds: Up to ₹10,000 crore in FY27
- Foreign Currency Bonds: Up to $500 million
These measures aim to support future expansion and strengthen the bank’s capital base.
Government Stake and Compliance
Following an Offer for Sale (OFS) in December 2025, the Government of India reduced its stake in the bank to 73.60% from 79.60%. The move helped the bank meet the minimum public shareholding requirement set by Securities and Exchange Board of India.
Fraud and Risk Management
The bank reported 394 fraud cases totaling ₹990 crore during FY26 and has already made provisions covering 100% of the loss portion. It also retained additional COVID-19-related contingency provisions of ₹1,010 crore.
Outlook
With record profitability, industry-leading asset quality, and strong capital buffers, Bank of Maharashtra is well-positioned for sustained growth. Analysts expect the bank’s stock to remain in focus as it continues to outperform peers across key financial metrics.
The latest results reinforce the bank’s transformation into one of India’s top-performing public sector lenders, supported by disciplined lending, efficient cost management, and a strong recovery framework.