Bank of Maharashtra reported net profit of Rs 2,310 crore for the second quarter of fiscal 2026–27, up 41.5% from Rs 1,633 crore a year earlier. The state-owned lender’s September 2026 quarter benefited from business growth and improving asset quality, with higher income accompanied by lower provisions.
Key Takeaways
- Operating profit rose 31%, supported by growth in both interest and non-interest income.
- Gross and net bad-loan ratios declined from their September 2025 levels.
- Management aims to maintain return on assets above 2%; that remains an objective, not a guaranteed outcome.
Bank of Maharashtra earnings strengthen across income streams
Operating profit reached Rs 3,369 crore, compared with Rs 2,574 crore in the corresponding quarter a year earlier. Net interest income—the difference between interest earned and interest paid—increased 22% to Rs 3,954 crore, while non-interest income rose 34% to Rs 1,129 crore.
The bank’s historical Q2 results archive records profit of Rs 1,633 crore for Q2 FY2025–26 in its October 14, 2025 entry, providing the prior-year base for the latest earnings comparison.
Provisions and contingencies fell to Rs 654 crore from Rs 756 crore. The lower charge supported bottom-line growth even though the bank made an additional Rs 500 crore provision in preparation for the credit-loss regime expected from the next fiscal year.
| Item | Details |
|---|---|
| Total deposits | Rs 3.76 lakh crore at September 2026; up 21.5% year on year. |
| Credit | Rs 3.29 lakh crore at September 2026; up 29.6% year on year. |
| Provision coverage ratio | Maintained at around 98%. |
Bad-loan ratios decline as lending expands
The gross non-performing assets ratio improved to 1.25% at the end of September 2026 from 1.72% a year earlier. The net NPA ratio declined to 0.12% from 0.18% over the same period.
These ratios measure the share of loans classified as non-performing, before and after provisions. Their decline indicates improved asset quality relative to the loan book, but does not by itself establish that the absolute amount of bad loans fell.
Credit expanded faster than deposits on a year-on-year basis. The bank reported the following balance-sheet figures at the end of September.
Return on assets exceeds management’s 2% threshold
Return on assets improved to 2.02% for the quarter from 1.82% a year earlier, showing higher profit relative to the bank’s asset base.
Managing director Nidhu Saxena said the bank would take steps to maintain return on assets above 2%. That statement sets out management’s intended direction rather than a confirmed future result.
Read More News
Disclaimer
This FinanceVelix article provides general information, not personalized financial, investment, legal, or tax advice. Market prices, interest rates and economic conditions can change; investments carry a risk of loss. Facts reflect the material available when published and may change. Check important information independently and consult a qualified professional when needed. Mentioning an asset, company, or service is not an endorsement.
Comments
Be respectful. No spam, impersonation or private credentials. Ordinary posts and comments appear immediately; suspicious links are held for review.
Please wait…