Bank of Maharashtra FY26 Annual Earnings Summary
3 quarters covered · ₹0 Cr revenue · ₹3,857 Cr PAT · 0.0% average EBITDA margin.
Quarter-by-quarter progression
Management promises made during the year
Promise tracking available after 2+ quarters of coverage.
Risks flagged during the year
Prolonged conflict could stress MSME and agri portfolios due to crude price rise and inflation; impact expected from Q2.
Q2 FY26 · mediumAgriculture GNPA has risen to nearly 10% due to rebalancing and RBI classification changes; management expects normalization in 1-2 quarters.
Q2 FY26 · mediumECL provisions of ₹2,500 crore need to be built by FY31, requiring ₹100-125 crore per quarter, which could pressure profitability.
Q2 FY26 · mediumCapital adequacy consumed 193 bps in Q2; planned ₹5,000 crore equity raise may dilute existing shareholders.
Q3 FY26 · mediumRBI rate cuts of 125bps have pressured yields; full impact of Q3 cut will be felt in Q4, and further cuts could compress NIM.
Q3 FY26 · medium9-month deposit growth of 4.73% trails credit growth, pushing CD ratio to 85%; reliance on Q4 seasonal inflows to meet 14% target.
Q3 FY26 · mediumStrategic shift away from bill discounting and tightening underwriting (CMR 1-5 only) may slow MSME growth; current YoY growth is 8% vs earlier double-digit.
Q4 FY26 · mediumMaharashtra government's KCC loan waiver (up to ₹2 lakh) may affect borrower behavior; bank estimates ₹2,000 crore exposure.
Q4 FY26 · mediumEffective tax rate may rise from ~10% to 18-20% as unabsorbed losses are exhausted, impacting net profit growth.
Q2 FY26 · lowCost of deposits increased 8 bps due to fixed deposit repricing and client shift from CASA to term deposits, potentially impacting NIM.
Q3 FY26 · lowOne-time hit of ₹290 crore from amalgamation of Maharashtra Gramin Bank and Vidharbha Konkan Gramin Bank impacted treasury profits.
Q4 FY26 · lowTransition to CLM1 model caused temporary halt in gold co-lending; book declined 70% QoQ, though resuming.
What changed through the year
Q2 FY26 · NIM guidance of 3.75% for FY26
Management expects NIM to remain around 3.75% for the full year, with potential stabilization as deposits reprice.
Q2 FY26 · Credit cost below 1%
Management guided to maintain credit cost below 1% on a sustainable basis, including ECL impact.
Q2 FY26 · Branch expansion: 321 branches in 18 months
The bank plans to open 321 new branches in 18 months, primarily outside Maharashtra, targeting high-growth pin codes.
Q2 FY26 · GIFT IBU target of $1 billion book in 12 months
Management aspires to grow the GIFT IBU book to $1 billion in the next 12 months, with a profitable business model.
Q3 FY26 · Deposit growth guidance of 14% YoY for FY26
Management confirmed achieving 14% deposit growth target for the full year, despite Q3 YTD growth of 4.73%, citing Q4 seasonal inflows and strategic focus on low-cost deposits.
Q3 FY26 · NIM to be maintained at ~3.75%
Management targets NIM around 3.75% despite rate cuts, supported by MCLR repricing and cost management.
Q3 FY26 · Gross NPA below 2%, Net NPA below 0.25%
Asset quality guidance reiterated; current gross NPA 1.60% and net NPA 0.15% are well within targets.
Q3 FY26 · Cost-to-income below 40%
Despite branch expansion, management expects to maintain cost-to-income below 40%; current level is 37.19%.
Q4 FY26 · Advances growth of 18% for FY27
Total business to grow 16-17%, with advances at 18% and deposits at 14-15%.
Q4 FY26 · NIM guidance of 3.75% for FY27
Net interest margin expected to be 3.75% for the full year.
Q4 FY26 · ROA guidance of 1.80% for FY27
Return on assets guided at 1.80%, up from 1.75% in FY26.
Q4 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%.