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Informist, Tuesday, Jan. 13, 2026

 

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--Bk of Maharashtra: Q3 NIM over FY26 guidance, but maintaining 3.75% view 
--CONTEXT: Bk of Maharashtra mgmt's comments on media call post Q3 earnings
--Bk of Maharashtra: FY26 dividend payout to be 15% of PAT, same as FY25  
--Bank of Maharashtra: See no urgent need to raise further capital 
--Bank of Maharashtra: No impact of US tariff seen so far 
--Bk of Maharashtra: See minimal slippage risk from US tariff, but watchful 
 

 

NEW DELHI – Bank of Maharashtra's management has maintained its guidance for net interest margin in 2025-26 (Apr-Mar) at 3.75%, even as the margin expanded 3 basis points sequentially to 3.88% in the December quarter. The bank's NIM has been above the guidance level in each of the three quarters of FY26.

 

"We are well above the guidance number. But if there are more rate cuts, there will be some impact on us," its Managing Director and Chief Executive Officer Nidhu Saxena said at a press conference after releasing the financial results for the December quarter. "So we would like to maintain our guidance of 3.75% going forward, and I don't see a major challenge in achieving this because we have absorbed the impact of all the rate cuts except the last (in December)."

 

The bank's NIM expanded in the December quarter, but its deposit growth, at 15.3% as of Dec. 31, has been trailing loan growth of 19.6%. The higher interest rates on government-backed small savings schemes had some bearing on deposit mobilisation, Saxena said. "This is an element of discussion, and we keep raising it (with the government)," Saxena said. 

 

Bank of Maharashtra posted a record net profit of INR 17.79 billion in Oct-Dec, up 26.5% on year. The lender also declared an interim dividend of INR 1 per share with Jan. 20 as the record date. The declaration of an interim dividend follows the government's offloading of a 6% stake in the bank through an offer for sale in December, which helped it to comply with the Securities and Exchange Board of India's minimum public shareholding norm. 

 

The bank wanted to reward small shareholders after it reported its highest quarterly profit. "Last year we paid a full-year dividend of 15% (of net profit). This year we see the same fraction," Saxena said. Shares of the bank ended 2% higher on Tuesday, at INR 65.05 on the National Stock Exchange.

 

On fundraising, Saxena said that his team does not see any urgent need to raise capital. Bank of Maharashtra reported a capital adequacy ratio of 17.06% as of Dec. 31. Although the board has approved raising INR 100 billion through infrastructure bonds, the bank is adequately capitalised, and management will decide on raising funds only if needed, Saxena said.

 

Bank of Maharashtra's international banking unit in Gujarat International Finance Tec-City's International Financial Services Centre became operational in November and has recorded business of INR 35.40 billion so far, Saxena said. The RBI had approved the bank's GIFT City branch in February last year.

 

The bank has not yet seen any impact of the 50% US tariff on slippages, Saxena said. Bank of Maharashtra has exposure of INR 36 billion in the textile sector – one of the worst-affected sectors by the steep tariff – so the management is monitoring the developments at the entity level, Saxena said. "We are watchful of the portfolios, and if any issue arises, we will promptly take corrective measures. So far, we have not seen any major cause of concern." The bank's slippage ratio was 1.20% as of Dec. 31.  End

 

Reported by Krity Ambey and Sagar Sen

Edited by Saji George Titus

 

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