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Margin compression from rate cuts
View Risks →Bank of Maharashtra — Q3 FY26
Bank of Maharashtra reported its highest-ever quarterly net profit of ₹179 crore for Q3 FY26, with 9-month PAT exceeding ₹5,005 crore.
bullish
high
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Bank of Maharashtra reported its highest-ever quarterly net profit of ₹179 crore for Q3 FY26, with 9-month PAT exceeding ₹5,005 crore. The bank surpassed its full-year guidance on all key parameters: total business grew 17.2% YoY to ₹5.95 lakh crore, advances rose 20% YoY, and deposits increased 15.3% YoY. Asset quality improved with gross NPA at 1.60% (down 12bps QoQ) and net NPA at 0.15%. NIM expanded 2bps to 3.87%, ROA reached 1.86%, and ROE hit 23.79%. The bank maintained a strong CASA ratio of 50% and cost-to-income of 37.19%. Management guided for continued double-digit growth driven by branch expansion (321 new branches under Project C21) and focus on retail segments (home loans up 28%, gold loans up 56% YoY). Key risk: potential margin compression from further rate cuts and repricing of 18-20% of term deposits in Q4.
बैंक ऑफ महाराष्ट्र ने तीसरी तिमाही में अब तक का सबसे ज़्यादा मुनाफा ₹179 करोड़ कमाया। नौ महीने का कुल मुनाफा ₹5,005 करोड़ से ज़्यादा रहा। बैंक ने अपने सभी लक्ष्य पूरे किए: कुल कारोबार 17.2% बढ़कर ₹5.95 लाख करोड़ हुआ, कर्ज 20% और जमा 15.3% बढ़ी। खराब कर्ज घटकर 1.60% रह गया, जो पिछली तिमाही से 0.12% कम है। बैंक की ब्याज आय में थोड़ा सुधार हुआ और मुनाफा दर 23.79% पहुंच गई। बैंक ने 321 नई शाखाएं खोलीं और घर व सोने के कर्ज में ज़बरदस्त बढ़ोतरी हुई। लेकिन सावधानी: अगर ब्याज दरें और गिरीं तो मुनाफा कम हो सकता है।
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Read Transcript →Quarter Snapshot
Gross NPA
1.60%
-12bps QoQ
Improved from 1.72% in Q2 FY26, reflecting better asset quality.
Net NPA
0.15%
-3bps QoQ
Improved from 0.18% in Q2 FY26, well below guidance of 0.25%.
CASA Ratio
50%
+26bps YoY
Maintained above 50% despite industry headwinds, supporting low cost of funds.
Gold Loan Portfolio
₹22,000 Cr
+56% YoY
Includes co-lending; retail gold loans at ₹12,000 Cr, agri at ₹9,000 Cr, MSME at ₹1,000 Cr.
What Changed vs Last Quarter
NEW
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.
NEW
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.
NEW
Cost-to-income below 40%
Despite branch expansion, management expects to maintain cost-to-income below 40%; current level is 37.19%.
UPDATED
NIM to be maintained at ~3.75%
Management targets NIM around 3.75% despite rate cuts, supported by MCLR repricing and cost management.
DROPPED
Credit cost below 1%
Management guided to maintain credit cost below 1% on a sustainable basis, including ECL impact.
DROPPED
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.
DROPPED
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.
NEW RISK
Margin compression from rate cuts
RBI rate cuts of 125bps have pressured yields; full impact of Q3 cut will be felt in Q4, and further cuts could compress NIM.
NEW RISK
Deposit growth lagging credit growth
9-month deposit growth of 4.73% trails credit growth, pushing CD ratio to 85%; reliance on Q4 seasonal inflows to meet 14% target.
NEW RISK
Treasury loss from Gramin Bank amalgamation
One-time hit of ₹290 crore from amalgamation of Maharashtra Gramin Bank and Vidharbha Konkan Gramin Bank impacted treasury profits.
NEW RISK
MSME rebalancing execution risk
Strategic 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.
RISK GONE
Agriculture NPA elevation
Agriculture GNPA has risen to nearly 10% due to rebalancing and RBI classification changes; management expects normalization in 1-2 quarters.
RISK GONE
ECL provisioning impact
ECL provisions of ₹2,500 crore need to be built by FY31, requiring ₹100-125 crore per quarter, which could pressure profitability.
RISK GONE
Cost of deposit pressure
Cost of deposits increased 8 bps due to fixed deposit repricing and client shift from CASA to term deposits, potentially impacting NIM.
RISK GONE
Capital consumption and fund raise dilution
Capital adequacy consumed 193 bps in Q2; planned ₹5,000 crore equity raise may dilute existing shareholders.
Fast read
Guidance and risk preview
Management confirmed achieving 14% deposit growth target for the full year, despite Q3 YTD growth of 4.73%, citing Q4 seasonal inflows and strategi...
RBI rate cuts of 125bps have pressured yields; full impact of Q3 cut will be felt in Q4, and further cuts could compress NIM.
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