Bank of India vs Bank of Maharashtra Q4 FY26

BA

Bank of India

Q4 FY26 · Financial Services

Bank of India reported a strong Q4 FY26 with net profit of ₹10,527 crore (up 14% YoY) driven by robust business growth and improved asset quality. Global business grew 14.6% to ₹16.98 lakh crore, with deposits up 13.6% and advances up 15.8%. Asset quality improved significantly: GNPA ratio fell 129 bps to 1.98% and NNPA to 0.56%. Management guided for 15-16% credit growth and 13-14% deposit growth in FY27, targeting domestic NIM of ~3% and ROA of 1%. Key risks include geopolitical headwinds impacting MSMEs and potential credit cost increase from ECL implementation (estimated 10 bps annual impact).

Guidance read

Credit growth guidance of 15-16% for FY27: Global advances expected to grow 15-16% in FY27, driven by RAM and mid-corporate segments. Deposit growth guidance of 13-14% for FY27: Global deposits targeted to grow 13-14% in FY27, with focus on CASA and retail term deposits. Domestic NIM target of ~3% by March 2027: Management aims to improve domestic NIM from 2.78% to near 3% by end of FY27 through better yield and lower cost of deposits. ROA target of 1% for FY27: Bank expects to achieve ROA of 1% for the full year FY27, up from 0.93% in FY26.

Risk read

Key risks include Geopolitical headwinds impacting credit quality — Rising crude prices, supply chain disruptions, and interest rate hikes may stress MSME and export-oriented sectors.; ECL implementation impact on credit cost — Transition to ECL guidelines from April 2027 may increase credit cost by ~10 bps annually, though management expects smooth transition.; CASA ratio decline and deposit cost pressure — CASA ratio fell to 37.64% from ~40% due to structural shift, potentially increasing cost of deposits if not reversed.; State PSU slippage risk — Three state PSUs in SMA category may slip into NPA if cash flows don't improve, though management is confident of recovery..

Promise ledger

Scorecard data is being built as historical quarters are processed.

BA

Bank of Maharashtra

Q4 FY26 · Financial Services

Bank of Maharashtra delivered a strong Q4 FY26, with net profit surging 27% YoY to ₹7,019 crore, driven by robust loan growth of 22% YoY and stable NIM of 3.91% (full year). Asset quality improved further with GNPA at 1.45% (down 29bps YoY) and NNPA at 0.13%. Management met all 18-19 guidance parameters set at the start of the year. Key growth drivers included retail (home loans +29%, vehicle +56%, gold +53%) and corporate lending in renewable energy and infrastructure. The bank created a ₹200 crore geopolitical uncertainty provision proactively. Guidance for FY27 includes advances growth of 18%, NIM of 3.75%, and ROA of 1.80%. Risk: Prolonged West Asia crisis could stress MSME and agri portfolios, with impact visible from Q2.

Guidance read

Advances growth of 18% for FY27: Total business to grow 16-17%, with advances at 18% and deposits at 14-15%. NIM guidance of 3.75% for FY27: Net interest margin expected to be 3.75% for the full year. ROA guidance of 1.80% for FY27: Return on assets guided at 1.80%, up from 1.75% in FY26. GNPA to remain below 2%, NNPA below 0.25%: Asset quality guidance: gross NPA under 2%, net NPA under 0.25%, slippage below 1%.

Risk read

Key risks include West Asia geopolitical crisis impact — Prolonged conflict could stress MSME and agri portfolios due to crude price rise and inflation; impact expected from Q2.; Farm loan waiver implementation risk — Maharashtra government's KCC loan waiver (up to ₹2 lakh) may affect borrower behavior; bank estimates ₹2,000 crore exposure.; Tax rate normalization — Effective tax rate may rise from ~10% to 18-20% as unabsorbed losses are exhausted, impacting net profit growth.; Gold loan co-lending disruption — Transition to CLM1 model caused temporary halt in gold co-lending; book declined 70% QoQ, though resuming..

Promise ledger

Scorecard data is being built as historical quarters are processed.