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Informist, Monday, Apr. 20, 2026

By Janwee Prajapati

MUMBAI – Bank of Maharashtra's net profit rose significantly on year due to a slip in its provisions and contingencies. Moreover, the state-owned bank's total income rose more than its rise in total expenses, both on year and sequentially. 

The bank's net profit during the quarter increased nearly 35% on year, the highest in last four quarters, and was up over 13% on quarter to INR 20.14 billion. The bank's net profit beat expectations largely due to fall in provisions and contingencies, which came down more than 37% on year to INR 6.17 billion in the March quarter.

At the same time, provisions made towards non-performing assets were up nearly 4% on year to INR 6.64 billion. Along with the fall in provisions, the lender's asset quality improved and net non-performing assets ratio declined to 0.13% from 0.18% a year ago and 0.15% a quarter ago. The banks' gross non-performing assets fell 1.45% from 1.74% year ago and 1.60% a quarter ago.

In the March quarter, the bank's total income was INR 86.93 billion, up nearly 13% on year and over 5% on quarter. The rise in its total income was majorly driven by an increase in earned interest, which was at INR 77.55 billion, up over 15% on year and up nearly 6% sequentially. However, other income was at INR 9.38 billion, down over 4% on year, but up marginally on quarter.

The public sector bank's total expenses, excluding provisions and contingencies, were at INR 57.74 billion, up nearly 11% on year and nearly 4% on quarter. The rise in total expenses was majorly due to a rise in interest expended, which stood at INR 40.53 billion, up over 12% on year. This led to a net interest income of INR 37.02 billion in the March quarter, up from INR 31.17 billion in the year-ago quarter.

The increase in the bank's advances further supported its net profit as it rose to INR 2.88 trillion as of Mar. 31, over 22% increase on year. The bank's deposits were up 14% on year at INR 3.51 trillion. It was up nearly 9% on quarter. The bank's net interest margin was 3.91% for the reporting quarter, a 10-basis-point decline on year and down 5 bps sequentially. 

The bank's yield on advances reduced to 8.72% in the March quarter, down 58 bps from the year-ago quarter and 20 bps from the trailing quarter. The bank's cost of deposits fell to 4.33%, down 41 bps on the year and 14 bps sequentially.

The bank's Basel-III capital adequacy ratio rose to 18.36% as on Mar. 31. Capital adequacy was lower by 217 bps on year but up 130 bps sequentially.

Moreover, the bank will pay INR 1.20 per share interim dividend over INR 1.00 dividend per share declared in previous quarter, it said. Bank of Maharashtra's shares touched a high of INR 76.95 on the National Stock Exchange after the results were declared and closed nearly 4% higher at INR 75.54 on Monday.  End

US$1 = INR 93.13

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Akul Nishant Akhoury

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