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Bank of Maharashtra Ltd — Q4 FY26
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).
bullish
high
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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.
Promises0 met · 4 missedRisks4 trackedTranscriptfull text
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0 delivered, 0 close, 4 missed.
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Risk Intelligence
West Asia geopolitical crisis impact
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CASA Ratio
52.51%
Flat YoY
CASA ratio maintained above 50% despite deposit competition; CASA grew 12% YoY.
Gross NPA Ratio
1.45%
-29bps YoY
Asset quality improved; GNPA down both in absolute and percentage terms.
Net NPA Ratio
0.13%
-5bps YoY
Net NPA at historic low, well within guidance of 0.25%.
Gold Loan Growth
53% YoY
+53pp YoY
Gold loan book reached ₹24,000 crore; co-lending paused temporarily due to CLM1 transition.
What Changed vs Last Quarter
NEW
Advances growth of 18% for FY27
Total business to grow 16-17%, with advances at 18% and deposits at 14-15%.
NEW
ROA guidance of 1.80% for FY27
Return on assets guided at 1.80%, up from 1.75% in FY26.
NEW
GNPA to remain below 2%, NNPA below 0.25%
Asset quality guidance: gross NPA under 2%, net NPA under 0.25%, slippage below 1%.
UPDATED
NIM guidance of 3.75% for FY27
Net interest margin expected to be 3.75% for the full year.
DROPPED
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.
DROPPED
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.
DROPPED
Cost-to-income below 40%
Despite branch expansion, management expects to maintain cost-to-income below 40%; current level is 37.19%.
NEW RISK
West Asia geopolitical crisis impact
Prolonged conflict could stress MSME and agri portfolios due to crude price rise and inflation; impact expected from Q2.
NEW RISK
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.
NEW RISK
Tax rate normalization
Effective tax rate may rise from ~10% to 18-20% as unabsorbed losses are exhausted, impacting net profit growth.
NEW RISK
Gold loan co-lending disruption
Transition to CLM1 model caused temporary halt in gold co-lending; book declined 70% QoQ, though resuming.
RISK GONE
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.
RISK GONE
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.
RISK GONE
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.
RISK GONE
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.
🤫 Topics management stopped discussing
Mentioned in Q2 FY26, Q3 FY26
Despite branch expansion, management expects to maintain cost-to-income below 40%; current level is 37.19%.
Fast read
Guidance and risk preview
Total business to grow 16-17%, with advances at 18% and deposits at 14-15%.
Prolonged conflict could stress MSME and agri portfolios due to crude price rise and inflation; impact expected from Q2.
View Risks →