Concall AI

Bank of Maharashtra — Q3 FY26 earnings call

Call held 13 Jan 2026

Management summary

Bank of Maharashtra delivered a strong Q3 FY26, reporting its highest ever quarterly profit of INR1,779 crores and exceeding guidance across key financial parameters like business growth, ROA, and ROE. Asset quality continued to improve with reduced NPAs, and the bank maintained a robust CASA ratio. While treasury performance was impacted by a one-off event and declining yields, management expressed confidence in achieving full-year deposit targets and sustaining profitability through strategic branch expansion and digital initiatives.

Highlights

Highest ever quarterly profit of INR1,779 crores, and 9 months net profit of INR5,005 crores.
Total business grew 17.24% YoY to INR5,95,000 crores, exceeding 15% guidance.
Advances grew 20% YoY, surpassing 17% guidance.
Gross NPA reduced to 1.60% from 1.72% last quarter, and Net NPA to 0.15% from 0.18%.
ROA achieved 1.86% (guidance 1.75%) and ROE 23.79% (guidance above 20%).
Cost-to-income ratio maintained at 37.19%, below 40% guidance.

Concerns

Treasury segment recorded a loss of INR180 crores on investment, compared to a profit of INR99 crores last quarter, partly due to a one-off INR290 crores amalgamation hit.
Slippages increased slightly to INR700-750 crores this quarter, compared to INR650-700 crores in the previous quarter.
Yield on advances reduced from 9.27% last December to 8.92% this December, impacted by repo rate cuts.

Key financials

2 periods

Headline

Quarterly Net Profit
₹1,779 Cr
9 Months Net Profit
₹5,005 Cr
Total Business
₹5.95L Cr
YoY +17.2%
Total Deposits Growth
—
YoY +15.3%
Advances Growth
—
YoY +20%
CASA Ratio
50%
Gross NPA
1.6%
Net NPA
0.15%
Return on Assets (ROA)
1.9%
Return on Equity (ROE)
23.8%
Cost-to-Income Ratio
37.2%
Yield on Advances
8.9%
Cost of Funds
4.1%
Cost of Deposits
4.5%
CRAR
17.1%
CET1
13.1%
Slippages as % of Advances
1.2%
FX Operations Profit (9 Months)
₹107 Cr

Q3

LDR
116.4%
Slippages
₹700 Cr
Treasury Profit
₹136 Cr
Treasury Loss on Investment
₹-180 Cr

What they filed

Q1 FY27: revenue up 13.9%, net profit up 34.5% against the same quarter last year.

₹ Cr · quarterly

Line item	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Revenue	6,017	6,325	6,731	7,054	7,128 +18%	7,344 +16%	7,755 +15%	8,035 +14%
Expenses	2,219	2,269	2,561	2,414	2,275	2,348	2,312	2,522
Other income	792	788	981	825	846	933	938	1,029
Interest	3,210	3,381	3,614	3,762	3,880	3,922	4,052	4,264
Depreciation	0	0	0	0	0	0	0	0
Profit before tax	1,380	1,463	1,537	1,703	1,819 +32%	2,008 +37%	2,330 +52%	2,277 +34%
Tax rate	4%	4%	3%	6%	10%	11%	14%	11%
Net profit	1,333	1,412	1,502	1,504	1,669 +25%	1,799 +27%	2,045 +36%	2,023 +35%
EPS	1.88	1.84	1.95	1.96	2.17	2.34	2.66	2.63

How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Retail Book
₹1,050 Cr Profit36% Growth
Wholesale Book
₹802 Cr Profit
Home Loans
28% Growth
Vehicle Loans
54% Growth
Gold Loans
56% Growth
Corporate Growth
19% Growth
MSME Growth
8% Growth
Agri Gold Loan Book
₹9,000 Cr Value
MSME Gold Loan Book
₹1,000 Cr Value
Retail Gold Loan Book
₹12,000 Cr Value
Co-lending Gold Loan Exposure
₹5,000 Cr Value

Capital allocation

high confidence

Dividend %10/share (interim)

I'm happy to share that 10% interim dividend has been approved by our Board today.
Liquidity Liquidity disclosed LCR for Q3 is 116.36%. Management aims to maintain LCR around 83-84%. Net outflow positive impact on banks from new RBI guidelines is around 3%.

So the LDR, in my case, we are keeping guidance of maintaining around 83%, 84% in the present circumstances. And we feel that is the best prescription in terms of being able to generate our good profitability. So I also had mentioned to a previous query wherein very consciously, we have been looking at other alternative sources, including infrastructure bonds, which have also contributed in some way to see that 1 bps, 2 bps more of CD ratio LDR in the case of Bank of Maharashtra. But I think there is no major challenge. ... LCR, to answer your question, for Q3 is 116.36%. ... On the 1st April, whatever the guidance states, increasing the dividend or let's say the deposits, and we have seen this actually and considering the net outflow positive impact on the banks is around 3%.

Guidance & targets

Business Growth

Total Business Growth Business Growth · Year-on-year · High confidence 15%

So total business, against our guidance of 15% growth year-on-year, 17.24%, and we reached INR5,95,000 crores.

— Nidhu Saxena

Deposits

Total Deposits Growth Deposits · Year-on-year · High confidence 14%

Total deposits have increased by 15.3% against the guidance number of 14%.

— Nidhu Saxena
CASA Share Deposits · Ongoing · High confidence above 50%

Then CASA share has been maintained at above 50%. We are doing 50% this year also -- this quarter also.

— Nidhu Saxena
Deposit Target Achievement Deposits · Full year · High confidence 14%

And I will have no element of doubt that 14%, that objective is in mind, will not be achieved.

— Nidhu Saxena

Advances

Advances Growth Advances · Year-on-year · High confidence 17%

Advances have increased at 19% -- sorry, advances against the guidance of 17%, have increased by 20% year-on-year.

— Nidhu Saxena
RAM to Corporate Share Advances · Ongoing · High confidence 60-40 +/- 2

Our RAM to Corporate share, which was 60-40 plus/minus 2, we have done 63-37 share.

— Nidhu Saxena
RAM Growth Advances · Ongoing · High confidence 20%

RAM growth against the guidance of 20%, we are exceeding that number also.

— Nidhu Saxena

Asset Quality

Gross NPA Asset Quality · Ongoing · High confidence less than 2%

and we are well within our guidance that is to maintain our gross NPA less than 2% and net NPA at less than 0.25%.

— Nidhu Saxena
Net NPA Asset Quality · Ongoing · High confidence less than 0.25%

— Nidhu Saxena
Slippages Asset Quality · Ongoing · High confidence below 1%

We will not see, going forward the kind of slippages number where guidance we are keeping to maintain it below 1.

— Nidhu Saxena

Profitability

ROA Profitability · Ongoing · High confidence 1.75%

ROA guidance, 1.75%, we have achieved 1.86%.

— Nidhu Saxena
ROE Profitability · Ongoing · High confidence above 20%

ROE guidance to maintain ROE above 20%, we have actually achieved in this quarter 23.79%.

— Nidhu Saxena
NIM Profitability · Ongoing · High confidence 3.75%

We don't have guidance on yield on advances. We have a guidance on NIM, we are targeting to maintain at about 3.75%, and we will maintain it.

— Management

Efficiency

Cost-to-Income Ratio Efficiency · Ongoing · High confidence below 40%

Our cost-to-income is to be maintained below 40%. Against that guidance, we have done 37.19%.

— Nidhu Saxena

Capital Adequacy

CRAR Capital Adequacy · Ongoing · High confidence above 16%

We are maintaining a healthy CRAR against the guidance of keeping the number above 16%. We have a CRAR of 17.06%.

— Nidhu Saxena

Liquidity

LCR Liquidity · Ongoing · High confidence 115-120%

So we are looking at -- these calculations are being done. But -- meanwhile, we are keeping the internal guidance for us to maintain LCR between 115% to 120%.

— Nidhu Saxena

Branch Expansion

Number of Branches Branch Expansion · next five years · High confidence 1000

We will keep growing because these branches, 321, doesn't end. We have a Board approval to open 1,000 branches in the next five years. We are doing it in two phases.

— Nidhu Saxena

What to watch in Q4 FY26

Deposit Growth Achievement

next quarter (Q4 FY26)

Current 9-month growth at 4.73% vs 14% target

Target Achieve 14% full-year deposit growth

Why it matters

Crucial for funding credit growth and managing CD ratio; management expressed confidence in achieving it.

I don't take the whole year, but 9 months, which means in the last quarter of this January, March quarter, we'll have to raise the deposit of almost about INR29,000 crores, INR30,000 crores to reach the target of that 14% of the deposit. So just like in the previous year you have achieved that, this year, too, are you confident of achieving this gap or bridging this gap of about 9% for the whole year, so on the deposit front?

Risks & concerns

Impact of interest rate cuts on NIM
medium

125 bps repo rate cut has led to a decline in yield on advances, with 40-42% of portfolio linked to repo rate, while deposit repricing lags. Management expects further rate cuts.

Management acknowledged
Competition in lending rates
medium

Good rated borrowers are approaching banks for concessions, and competition means the bank sometimes has to offer lower rates to retain business.

Management acknowledged
Maintaining deposit growth target
medium

9-month deposit growth of 4.73% lags the 14% full-year target, requiring significant deposit mobilization in Q4.

Analyst acknowledged
Treasury segment volatility
medium

Treasury segment recorded a loss of INR180 crores on investment this quarter, partly due to a one-off amalgamation hit of INR290 crores.

Management acknowledged

Q&A highlights

7 direct

Deposit growth, CD ratio, and CRAR concerns Direct

So Ajmera ji, the deposit guidance that we have kept is 14%, which will be maintained. I would like to bring to notice that if you see the deposit growth, which has lagged the credit growth, but within the deposit, the composition that has grown in the bank is the low-cost component.

Analyst highlighted a significant gap in 9-month deposit growth (4.73%) versus the 14% target, and its impact on CD ratio (85%) and CRAR (17.06%), prompting management to explain their strategy for low-cost deposits and confidence in meeting targets.

Asked by Ashok Ajmera

Treasury performance and segment-wise profit jump Direct

So if you -- before I start looking at this, let me just give you one more number. CASA percentage has actually improved in this quarter by 26 bps year-on-year. So that again is a substantial improvement. In terms of treasury income and the number that you are seeing, there is a one-off INR290 crores of Maharashtra Gramin Bank and Vidarbha Konkan Gramin Bank amalgamation, which has resulted in this INR290 crores of one-time hit.

Analyst questioned the treasury loss of INR180 crores and the large jump in retail segment profit. Management clarified the one-off amalgamation impact on treasury and attributed retail growth to strong performance in home, vehicle, and gold loans, along with co-lending partnerships.

Asked by Ashok Ajmera

LDR levels and potential RBI intervention Direct

So the LDR, in my case, we are keeping guidance of maintaining around 83%, 84% in the present circumstances. And we feel that is the best prescription in terms of being able to generate our good profitability. So I also had mentioned to a previous query wherein very consciously, we have been looking at other alternative sources, including infrastructure bonds, which have also contributed in some way to see that 1 bps, 2 bps more of CD ratio LDR in the case of Bank of Maharashtra. But I think there is no major challenge.

Analyst raised concern about the high system LDR (82%) and the bank's LDR (116.36%), and potential RBI action. Management stated their internal LDR guidance (83-84%) and explained their strategy of focusing on low-cost deposits and alternative funding sources to manage liquidity without relying on high-cost bulk deposits.

Asked by Mahrukh Adajania

Yield on advances decline Direct

So the yield on advances is standing at 8.95%. But you would have seen that there has been 125 bps rate cut from the regulator. And like every bank has mandated to pass on the rate cut without any time lag. We have to mandatorily pass this rate cut benefit to our portfolio, which is linked to the repo rate. So around 40% -- 42% of portfolio is linked to the repo, which gets this benefit passed on immediately.

Analyst questioned the reduction in yield on advances from 9.27% to 8.92%. Management attributed this to the 125 bps repo rate cut by the regulator, which mandates immediate pass-through to 40-42% of their portfolio, while deposit repricing lags.

Asked by Rohit Priyadarshi

MSME growth strategy and yield Direct

So as I said, we are into wherever we see profitable opportunities and where we are comfortable to build our exposures on. So be it MSME also, we are looking at this segment also very seriously. What we have done is low-ticket MSMEs, the journeys have been created in using technology and the end-to-end process is digitalized where we don't wish to have too much of engagement in our branch for availing or disbursing these MSMEs small ticket size loans.

Analyst inquired about the bank's focus on MSME growth and expected yields. Management detailed their strategy for low-ticket MSMEs through digital journeys, rebalancing portfolios, and focusing on high-quality business with good pricing, while also mentioning growth in agri and MSME ancillary activities.

Asked by Rohit Priyadarshi

Term deposit repricing, home loan disbursements, and loan purchases Direct

So first is, deposit getting re-priced. So when this rate cut cycle began, and very closely, we have been seeing and monitoring this development. So our typical maturity profile is against the industry standard of 12 to 15 months. Our maturity profile at that point in time was 8 to 10 months. And we have seen that most of the deposits by that time have been re-priced.

Analyst sought clarity on the proportion of term deposits yet to be repriced, the share of 7.1% home loan disbursements, and the nature of INR5,000 crores in loan purchases. Management explained that most deposits have been repriced, 23% of sanctions are at 7.1% for high CIBIL scores, and loan purchases are part of portfolio rebalancing.

Asked by Ashlesh Sonje

MSME rebalancing, agri degrowth, and other expenses spike Direct

So, thank you for the question. So MSME, there has been some reasoning behind the change in the regulator guidelines. So with the MSME limits getting enhanced, you would have seen some portfolio which is MSME shifts. So they have increased the limits. So there is a portfolio which would move from MSME mid to the small segment. And likewise to micro.

Analyst questioned the MSME rebalancing, degrowth in farm credit, and a sequential spike in other expenses. Management explained MSME shifts due to regulatory guideline changes, conscious rebalancing away from stressed agri segments, and attributed other expense increase to new branch openings and a one-off INR63 crores for PLC certificates.

Asked by Bhavesh Kanani

2 min read 6 chapters

Detailed narrative

Strong Q3 FY26 Performance Exceeding Guidance

Bank of Maharashtra reported its highest ever quarterly profit of INR1,779 crores for Q3 FY26, contributing to a 9-month net profit of INR5,005 crores. The bank surpassed its guidance across several key parameters, with total business growing 17.24% YoY to INR5,95,000 crores against a 15% target, and advances increasing 20% YoY against a 17% target. ROA stood at 1.86% (guidance 1.75%) and ROE at 23.79% (guidance above 20%), demonstrating robust profitability.

Improving Asset Quality and Controlled Slippages

The bank continued to improve its asset quality, with Gross NPA reducing to 1.60% from 1.72% in the previous quarter, and Net NPA falling to 0.15% from 0.18%. These figures are well within the bank's guidance of less than 2% Gross NPA and less than 0.25% Net NPA. While slippages increased slightly to INR700-750 crores this quarter, the slippage rate as a percentage of the advance book remained stable at 1.2%, consistent with the previous year.

Strategic Deposit Growth and CASA Focus

Total deposits grew 15.3% YoY, exceeding the 14% guidance, with CASA share maintained above 50%. Management emphasized a conscious strategy to raise low-cost deposits, with CASA growing 16% YoY this quarter. The bank has allowed high-cost bulk deposits to degrow by 7% YoY and reduced its DRI component from 13% to 5.08%, focusing instead on profitable growth and alternative funding sources like refinance transactions of INR14,000-15,000 crores at a blended rate of 6-6.5%.

Diversified Credit Growth Across Segments

Credit growth was strong across segments, with Retail growing 36% YoY, Home Loans 28% YoY, Vehicle Loans 54% YoY, and Gold Loans 56% YoY. The RAM to Corporate share stood at 63-37, exceeding the 60-40 +/- 2 guidance. The bank's total gold loan book, including co-lending, reached INR22,000 crores, with INR5,000 crores from co-lending. Corporate growth also contributed significantly at 19% YoY, with a focus on green financing and data centers.

Treasury Performance and One-off Impact

The treasury segment reported a profit of INR136 crores this quarter, but recorded a loss of INR180 crores on investment, compared to a profit of INR99 crores last quarter. This was primarily due to a one-off hit of INR290 crores from the amalgamation of Maharashtra Gramin Bank and Vidarbha Konkan Gramin Bank. Excluding this one-off, the treasury profit would have been around INR115-112 crores. FX operations profit for 9 months reached INR107 crores, up from INR63 crores last year.

LDR Management and Branch Expansion Strategy

The bank's LDR for Q3 stood at 116.36%, with an internal guidance to maintain it around 83-84%. Management is actively managing liquidity through low-cost deposits and alternative funding, rather than high-cost bulk deposits. The bank is aggressively expanding its branch network, having opened 116 branches this fiscal year as part of a plan to open 321 scientifically selected branches in 18 months, with a long-term goal of 1,000 branches in five years to drive core business growth.

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