Earnings Review
Bank of Maharashtra PAT rises as costs, bad loans in check
This story was originally published at 18:40 IST on 14 October 2025
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--Bank of Maharashtra Jul-Sept PAT INR 16.33 bln
--Bank of Maharashtra Jul-Sept PAT INR 16.33 bln vs INR 13.27 bln year ago
--Bank of Maharashtra Jul-Sept total income INR 79.74 bln vs INR 68.09 bln
--Bank of Maharashtra gross NPAs 1.72% as on Sept 30 vs 1.74% qtr ago
--Bank of Maharashtra Apr-Sept PAT INR 32.26 bln vs INR 26.20 bln year ago
--Bank of Maharashtra Apr-Sept total income INR 158.52 bln vs INR 135.78 bln
--Bank of Maharashtra net NPAs 0.18% as on Sept 30, unch on qtr
--Bank of Maharashtra Basel-III capital adequacy ratio 18.13% as on Sept 30
--Bank of Maharashtra provision coverage ratio at 98.34% as on Sept 30
--Bank of Maharashtra Jul-Sept NPA provision INR 5.83 bln vs INR 5.98 bln
--Bk of Maharashtra Jul-Sept provision INR 7.56 bln vs INR 8.22 bln year ago
--Bk of Maharashtra Q2 net interest income INR 32.48 bln, up 15.7% on yr
--Bank of Maharashtra Jul-Sept NIM 3.85%
--Bank of Maharashtra Jul-Sept NIM 3.85% vs 3.95% qtr ago
--Bank of Maharashtra Jul-Sept cost of deposits 4.67% vs 4.59% qtr ago
--Bank of Maharashtra Jul-Sept cost of funds 4.32% vs 4.26% qtr ago
--Bk of Maharashtra Q2 net fresh slippage INR 7.1 bln vs INR 6.1 bln yr ago
--Bk of Maharashtra Q2 recovery, upgrades INR 4.3 bln vs INR 2.2 bln yr ago
By Aaryan Khanna
NEW DELHI – Bank of Maharashtra's net profit for the September quarter rose on year and on quarter as asset quality remained stellar for a second straight quarter. As the bank's top line expanded, a fall in provisions and employee expenses helped keep costs in check.
The bank's net profit rose 23% on year and 2.5% on quarter to INR 16.33 billion in Jul-Sept. Its total income was only 17% higher on year, at INR 79.74 billion. In Apr-Jun, the total income was INR 78.79 billion.
The bank's provisions fell to INR 7.56 billion in the September quarter from INR 8.22 billion a year ago, of which provisions for non-performing assets were also marginally lower on year at INR 5.83 billion. The bank's net non-performing assets remained at a low 0.18% as of Sept. 30, unchanged from a quarter ago. The gross non-performing assets fell marginally to 1.72% at September-end from 1.74% at June-end.
The provisioning fell largely on account of an increase in writebacks, which nearly doubled on year to INR 4.3 billion in the reporting quarter, the bank said in its investor presentation. Fresh slippages rose to INR 7.1 billion in Jul-Sept from INR 6.1 billion a year ago.
Tuesday, Bank of Maharashtra's shares ended 4.3% lower at INR 55.11 on the National Stock Exchange. The shares recovered from the day's low after the earnings were released during market hours.
The bank's expenses were led by a rise in interest costs to INR 38.81 billion in the reporting quarter, up 20.9% on year. On a sequential basis, the interest expended rose 3.2% and the bank's net interest margin fell 10 basis points to 3.85% in the September quarter. Still, the net interest income grew a healthy 15.7% on year to INR 32.48 billion.
Moreover, operating expenses were up only 8.7% on year and down on quarter at INR 15.19 billion. Of this, employee costs were down 6.6% on quarter and up only 1.3% on year at INR 8.22 billion. Total expenses rose 1.7% sequentially to INR 53.99 billion in Jul-Sept, up from INR 46.07 billion a year ago.
The bank's provision coverage ratio was little changed at 98.34% as of Sept. 30, including technical write-offs. Its Basel-III capital adequacy ratio fell to 18.13% as of September-end from 20.06% a quarter ago.
On the asset-liability front, Bank of Maharashtra's total domestic advances rose over 16% on year to INR 2.53 trillion as on Sept. 30. Advances to the retail sector rose nearly 38% on year to INR 782.26 billion. Overall, rural, agriculture, and micro, small, and medium enterprise advances made up 62.19% of domestic advances, in keeping with the trend seen over the past few quarters.
The bank also reported overseas advances for the first time, to the tune of INR 8.88 billion. The state-owned lender has an International Financial Services Centre banking unit in Gandhinagar's Gujarat International Finance Tec-City and likely operationalised it in the September quarter.
The bank's deposits increased a little over 12% on year to INR 3.10 trillion. The cost of deposits rose to 4.67% in the September quarter from 4.59% in Apr-Jun. The bank's cost of funds--the interest on its own borrowing--also inched up 6 basis points on quarter to 4.32%. The bank's low-cost current account savings account ratio was 50.35% in the September quarter, up slightly from 50.07% in Apr-Jun and 49.29% a year ago. End
Edited by Rajeev Pai
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