Bank of Maharashtra vs Union Bank of Q4 FY26

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.

UN

Union Bank of

Q4 FY26 · Financial Services

Union Bank of India reported a strong Q4 FY26 with net profit of ₹18,697 crore and recommended a dividend of ₹5 per share. The bank achieved robust business growth, with gross advances up 9.74% YoY and a significant improvement in CASA ratio to 35.21% from 32.51% in September. Management highlighted a strategic shift from bulk deposits to retail term deposits and CASA, reducing bulk deposits by ₹70,000 crore. The bank also created a ₹700 crore contingency provision without impacting profit or capital. NIM compressed to 2.64% due to the December rate cut but management expects stabilization and gradual improvement. Credit cost was low at 23 bps for the year, with guidance of ~1% for FY27. Key risks include potential stress from West Asia disruptions and elevated SMA1 levels, though management sees no material impact yet. The bank targets 13-14% credit growth in FY27 while maintaining asset quality and profitability.

Guidance read

Credit growth target of 13-14% for FY27: Management expects to achieve 13-14% credit growth in FY27, in line with industry trends and better than the 9.74% YoY growth in FY26. NIM to stabilize and improve from 2.64%: Management expects NIM to defend current levels and gradually improve, driven by CASA expansion and better asset-liability management. Credit cost guidance of ~1% for FY27: Management guided credit cost around 1% for FY27, up from 23 bps in FY26, reflecting normalization and prudent provisioning. PSLC fee income to potentially reach ₹1,000 crore: Management indicated that PSLC fee income could return to ₹1,000 crore plus levels in FY27, similar to FY25, after a lower contribution in FY26.

Risk read

Key risks include West Asia geopolitical disruption impact — Ongoing West Asia conflict could stress energy-sensitive sectors and remittance flows, though management sees no material impact yet.; Elevated SMA1 levels — SMA1 loans nearly doubled sequentially, indicating potential stress in the near term, though management attributed it to migration from SMA2.; NIM compression from rate cuts — Further repo rate cuts could compress NIM, though management expects to defend margins through liability mix improvement.; Deposit growth lagging credit growth — Total deposit growth of 2.72% YoY trailed credit growth of 9.74%, potentially constraining future loan growth if not addressed..

Promise ledger

Scorecard data is being built as historical quarters are processed.