Earnings Review
Bank of Maharashtra Q3 PAT above view on lower provisions
This story was originally published at 18:06 IST on 13 January 2026
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--Bank of Maharashtra Oct-Dec PAT INR 17.79 bln vs INR 14.06 bln year ago
--Bank of Maharashtra Oct-Dec total income INR 82.77 bln vs INR 71.12 bln
--Bk of Maharashtra Oct-Dec provision INR 7.28 bln vs INR 8.41 bln year ago
--Bank of Maharashtra Apr-Dec PAT INR 50.05 bln vs INR 40.27 bln year
--Bank of Maharashtra Apr-Dec total income INR 241.29 bln vs INR 206.90 bln
--Bk of Maharashtra Q3 NPA provision INR 6.60 bln vs INR 5.93 bln yr ago
--Bank of Maharashtra to pay INR 1 per share interim dividend
--Bk of Maharashtra gross NPAs 1.60% on Dec 31 vs 1.72% qtr ago, 1.80% yr ago
--Bk of Maharashtra net NPAs 0.15% on Dec 31 vs 0.18% qtr ago, 0.20% yr ago
--Bank of Maharashtra Basel-III capital adequacy ratio 17.06% on Dec 31
--Bank of Maharashtra interim dividend record date is Jan 2
By Shruti Nair
MUMBAI – Bank of Maharashtra's net interest income rose on year on the back of strong growth in advances. Higher interest income, along with lower provision, helped the bank report higher-than-expected net profit during the quarter.
The bank's net profit during the quarter increased over 26% on year and close to 9% on quarter to INR 17.79 billion. Systematix Institutional Equities had estimated the bank's net profit for the December quarter at INR 16.33 billion.
Its net profit beat expectations largely due to fall in provisions, which came down more than 13% on year to INR 7.28 billion in the December quarter. At the same time, provisions made towards non-performing assets were up 11% on year to INR 6.60 billion.
In the December quarter, its total income was INR 82.77 billion, over 16% higher on year and nearly 4% higher on quarter. Its net interest income was INR 34.22 billion, up more than 16% on year. Systematix estimated the bank's net interest income at INR 33.89 billion.
The increase in the bank's advances further supported its net profit. The bank's global advances were INR 2.29 trillion as of Dec. 31, a 20% increase on year. The domestic advances for the quarter were also INR 2.29 trillion, an 18% on-year rise.
On other hand, the bank's net interest margin was 3.86% for the reporting quarter, a 12-basis-point decline on year and nearly flat sequentially. The NIM was pressurised as the fall in yield on advances outpaced the fall in cost of deposits due to cumulative reduction of 125 bps in the benchmark repo-rate in 2025 by the Reserve Bank of India.
The bank's yield on advances reduced to 8.92% in the December quarter, down 35 bps from the same year-ago quarter and 27 bps from the trailing quarter. The fall in the repo rate has also reduced the bank's cost of deposits to 4.47%, down 28 bps on year 20 bps sequentially.
The bottom line was also supported by an improvement in the bank's asset quality. The bank's gross NPA was 1.6% for the December quarter, a 20-bps fall on year and 12-bps fall on quarter. The bank's net NPA was 0.15%, a 3-bps reduction after three consecutive quarters of remaining unchanged. The net NPA was 5 bps lower on year.
The bank's Basel-III capital adequacy ratio declined to 17.06% as on Dec. 31. Capital adequacy was lower by 165 bps on year and 107 bps sequentially.
The bank will pay INR 1 per share interim dividend with the record date set on Jan. 20, it said. Bank of Maharashtra's shares touched a high of INR 65.50 on the National Stock Exchange after the results were declared and closed 2% higher at INR 65.05. End
Edited by Akul Nishant Akhoury
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