Bank of Maharashtra — Q4 FY26 earnings call

Call held 20 Apr 2026

Management summary

Bank of Maharashtra delivered a strong Q4 FY26, exceeding guidance across key financial and asset quality metrics, including a 27% YoY net profit growth to INR7,019 crores and a full-year ROA of 1.86%. The bank successfully maintained a high CASA ratio of 52.51% and significantly improved asset quality with GNPA at 1.45% and NNPA at 0.13%. While geopolitical risks and a temporary dip in gold loan book due to regulatory changes were noted, management expressed confidence in its strategic rebalancing, branch expansion, and robust FY27 guidance.

Highlights

  • Net Profit increased 27% YoY to INR7,019 crores, and Operating Profit grew 16% YoY to INR10,826 crores.

  • Total business grew 17%, with advances up 22% and deposits up 14%, and retail advances growing 32%.

  • GNPA improved to 1.45% (down 29 bps YoY) and NNPA to 0.13% (down 5 bps YoY), both well within guidance.

  • Full year ROA reached 1.86% (vs guidance 1.75%) and ROE 23.19% (vs guidance 20%+).

  • GIFT City operations achieved bottom-line positive within 12 months, significantly ahead of the initial 3-year breakeven expectation.

Concerns

  • Geopolitical uncertainties (West Asia crisis) are expected to impact in Q2 FY27, potentially causing inflation and currency depreciation.

  • Fee income growth was lower than loan growth, partly due to a one-time INR290 crores hit from an RRB amalgamation.

  • Gold loan book declined Q-o-Q due to new RBI CLM1 guidelines, temporarily halting fresh underwriting.

Key financials

  1. Net Profit ₹7,019 Cr +27%YoY
  2. Total Business Growth 17%
  3. Advances Growth 22%
  4. Deposits Growth 14%
  5. NIM (Full Year) 3.9%
  6. ROA (Full Year) 1.9%
  7. GNPA 1.4%
  8. NNPA 0.13%
  9. Cost to Income Ratio 37.1%
  10. CASA Ratio 52.5%

What they filed

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

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue6,017 6,325 6,731 7,054 7,128 +18%7,344 +16%7,755 +15%8,035 +14%
Net profit1,333 1,412 1,502 1,504 1,669 +25%1,799 +27%2,045 +36%2,023 +35%
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 Advances
    32% Growth
  • Home Loans
    29% Growth
  • Vehicle Loans
    56% Growth
  • Gold Loans
    53% Growth
  • MSME Advances
    11% Growth
  • Agri Advances
    13% Growth
  • Corporate Advances
    22% Growth
  • RAM Share of Corporate Book
    63% RAM Share37% Corporate Share
  • Overseas Advances Book
    ₹6,142 Cr Value

Capital allocation

high confidence
  • Returns FYTD ₹1,600 Cr
  • M&A Vidharbha Konkan Gramin Bank Amalgamation · Integrated

    To have one state, one RRB, amalgamating RRB from Bank of India

    One-time hit of INR290 crores to noninterest income due to taking investment on face value for accumulated losses.

    What has happened in this particular financial year, there is a one-time exercise where I had to provide for INR290 crores, so there is we have RRB, Maharashtra Gramin Bank and Government of India initiative to have one state, one RRB. I got to amalgamate the RRB from Bank of India, which is Vidharbha Konkan Gramin Bank.
  • Liquidity Liquidity disclosed CET1 is standing at 14.59%. CRAR is at 18.36%.
    Capital adequacy, we are adequately capitalized. And with this full year profitability now also added, CET1 is standing at 14.59%. CRAR is at 18.36%.

Guidance & targets

Business Growth

  • Total business growth Business Growth · FY27 · High confidence 16% to 17%
    So total business this year, we plan to grow at 16% to 17%, within which advances will grow at 18%.

    — Nidhu Saxena

  • Advances growth Business Growth · FY27 · High confidence 18%

    — Nidhu Saxena

  • Deposit growth Business Growth · FY27 · High confidence 14% to 15%
    Deposit to grow at 14% to 15%.

    — Nidhu Saxena

  • RAM book growth Business Growth · FY27 · High confidence 18%
    RAM book will be growing at 18%.

    — Nidhu Saxena

Deposit Mix

  • CASA ratio Deposit Mix · FY27 · High confidence Around 50%
    CASA, we will maintain around 50%.

    — Nidhu Saxena

Business Mix

  • RAM corporate ratio Business Mix · FY27 · High confidence 60-40 plus/minus 2%
    RAM corporate, the ratio 60-40 plus/minus 2%.

    — Nidhu Saxena

Profitability

  • Net Interest Income (NII) growth Profitability · FY27 · High confidence 15%
    Net interest income is to grow at 15%.

    — Nidhu Saxena

  • NIM Profitability · FY27 · High confidence 3.75%
    NIM, the guidance for this year is 3.75%.

    — Nidhu Saxena

  • Noninterest portion growth Profitability · FY27 · High confidence 10%
    Noninterest portion to grow at 10%.

    — Nidhu Saxena

  • ROA Profitability · FY27 · High confidence 1.80%

    Previously 1.75% → 1.80%

    ROA, here, we have actually upped our guidance number by 5 bps. Last year, ROA guidance was 1.75%. By seeing quarter 4 ROA touching 1.97% I mean, barely touching 2%. So ROA, we want to keep a guidance of 1.80%.

    — Nidhu Saxena

  • ROE Profitability · FY27 · High confidence 20% and more
    ROE, while we did 23% plus for this year, we want to maintain a guidance of 20% and more.

    — Nidhu Saxena

Efficiency

  • Cost to Income Ratio Efficiency · FY27 · High confidence Below 40%
    Cost to income, we will continue to maintain as last year, below 40%.

    — Nidhu Saxena

Asset Quality

  • GNPA Asset Quality · FY27 · High confidence Within 2%
    GNPA will remain within 2%.

    — Nidhu Saxena

  • NNPA Asset Quality · FY27 · High confidence Within 0.25%
    NNPA within 0.25%.

    — Nidhu Saxena

  • Slippage Asset Quality · FY27 · High confidence Below 1%
    Slippage will be maintained below 1%.

    — Nidhu Saxena

  • Credit Cost Asset Quality · FY27 · High confidence Around 1%
    And credit cost will be around 1%.

    — Nidhu Saxena

  • PCR Asset Quality · FY27 · High confidence 98%
    PCR at 98%.

    — Nidhu Saxena

Capital Adequacy

  • CRAR Capital Adequacy · FY27 · High confidence 18%
    And CRAR to be maintained at 18%.

    — Nidhu Saxena

Taxation

  • Tax rate (PBT basis) Taxation · FY27 · High confidence 18% to 20%
    On a PBT basis, Madam, roughly it will be around 18% to 20%.

    — Management

Branch Expansion

  • New branches Branch Expansion · Next 5 years · High confidence 1000
    I have 1,000 branches approval from the Board to be opened in the 5 years.

    — Nidhu Saxena

GIFT City

  • GIFT City book GIFT City · 12 months · High confidence 1 billion
    I have kept an aspiration of making GIFT City in 12 months minimum 1 billion book. 650 million we've already done. And I can share with you that we have - there is a pipeline visibility to us of 350 million.

    — Nidhu Saxena

What to watch in Q1 FY27

Impact of Geopolitical Uncertainties on Asset Quality

Q2 FY27
Current INR200 crores provision made, no direct impact seen in Q4 FY26
Target Observe if Q2 FY27 shows actual fallout on asset quality or other metrics

Why it matters

Potential for inflation, currency depreciation, and stress on corporate/MSME accounts, as acknowledged by management.

And you're also right to say that March will not be where the impact. We may see the impact in not Q1. By Q2, you will see the fallout of the West Asia crisis.

Risks & concerns

  • Geopolitical Uncertainties (West Asia Crisis)

    medium

    Potential for inflation, currency depreciation, and impact on corporate/MSME asset quality expected in Q2 FY27. Bank has proactively made INR200 crores provision.

    Both acknowledged

  • RBI CLM1 Guidelines Impact on Gold Loans

    low

    New RBI guidelines temporarily halted fresh underwriting, causing a Q-o-Q decline in gold loan book, but the model is implemented, and the bank is rebuilding the book.

    Management acknowledged

  • Maharashtra Farm Loan Waivers

    low

    While a waiver, management expects a net positive impact of ~INR2,000 crores on agri NPA and INR775 crores from prompt payment incentives.

    Both acknowledged

Q&A highlights

7 direct
Impact of geopolitical risks (West Asia crisis) on asset quality and SMA numbers Direct
And you're also right to say that March will not be where the impact. We may see the impact in not Q1. By Q2, you will see the fallout of the West Asia crisis. But as I again said, we are still to see the end. So we can only hope that the crisis resolves and what damage must have happened, the impact, how fast it can be replaced is also needs to be seen.

Analyst probed potential future risks, and management acknowledged a likely Q2 FY27 impact, indicating a watch item for investors.

Asked by Ashok Ajmera

Nature and purpose of the fresh INR200 crores provision Direct
But actually, what we have done, if you see, I think this is again an industry first. Keeping in mind this West Asia crisis, we have internally created, there is no regulator prescription. There is no nudge also towards that, but we are calling it as a global geopolitical uncertainties provisioning. And we have, in this quarter, built a provision of INR200 crores.

Clarified that the bank proactively created a specific provision for geopolitical risks, demonstrating prudence beyond regulatory mandates.

Asked by Ashok Ajmera

Growth and profitability of overseas advances and GIFT City operations Direct
But I'm happy to share, we said, why not? In the first 12 months, the balance sheet should be a profit - net profit should be there. And what we have done in March in GIFT City, we have achieved after covering the entire overheads, staff cost, premises, everything, including the IT, we have been able to see bottom line positive in the GIFT IBU also.

Revealed that GIFT City operations achieved profitability significantly ahead of schedule, indicating strong execution in a new strategic area.

Asked by Ashok Ajmera

Future tax rate and normalization post current benefits Direct
On a PBT basis, Madam, roughly it will be around 18% to 20%.

Provided clarity on the expected effective tax rate for the next fiscal year, which is crucial for earnings modeling.

Asked by Ashok Ajmera

Lower fee income growth compared to loan growth Partial
So noninterest income, if you are you must have seen, it is 2.51%, whereas we have kept 10% guidance for this year. What has happened in this particular financial year, there is a one-time exercise where I had to provide for INR290 crores, so there is we have RRB, Maharashtra Gramin Bank and Government of India initiative to have one state, one RRB.

Management explained the reason for the underperformance in non-interest income and highlighted it as a focus area for the next year.

Asked by Parth Gutka

Q-o-Q decline in gold loan book despite strong Y-o-Y growth Direct
But we did not do any fresh underwriting till the time we switched on from the CLM2 to CLM1 model, which needed some level of integrating my IT and developing, first of all, new underwriting mechanism with me and the NBFC. And it took time with NBFC also. So now by almost, I should say, first week of March, my portfolio because I was getting huge collections on a daily basis, but I had actually stopped fresh underwriting.

Provided a clear explanation for a specific segment's Q-o-Q performance, attributing it to regulatory changes and temporary operational adjustments.

Asked by Ashlesh Sonje

Strategy for MSME growth given lower current rates Direct
So likewise, in MSME, we have strengthened the underwriting benchmarks. And we want to see that in this good growth times, can we have some big ticket and secured and good rated portfolio that can come and sit in our loan book. So that was the attempt.

Management detailed its conscious strategy to rebalance the MSME portfolio towards quality and secured assets, even if it means a temporary slowdown in growth.

Asked by Preethi RS

Impact of Maharashtra farm loan waivers on agri NPA Direct
My agri NPA, which is standing at 7.72% with around INR3,100 crores. With this, it will come down to INR2,037 crores. Agri NPA will actually come down to 5.33% is what we are looking.

Management quantified the expected positive impact of the farm loan waiver on the bank's agri NPA, indicating a significant reduction.

Asked by Akshay Badlani

2 min read 6 chapters

Detailed narrative

Robust Financial Performance and Guidance Exceeded

Bank of Maharashtra reported a strong Q4 FY26, with Net Profit growing 27% YoY to INR7,019 crores and Operating Profit increasing 16% YoY to INR10,826 crores. The bank exceeded its full-year guidance across key profitability metrics, achieving an ROA of 1.86% (against a 1.75% target) and an ROE of 23.19%. NIM for the full year stood at 3.91%, surpassing the 3.75% guidance, with Q4 NIM at 3.95%. The Cost to Income Ratio was contained at 37.08%, below the 40% guidance.

Strategic Portfolio Rebalancing and Segmental Growth

Total business grew 17%, driven by a 22% increase in advances and 14% in deposits, with CASA growing 12% and maintaining a ratio of 52.51%. Retail advances saw a 32% growth, with home loans up 29%, and vehicle and gold loans growing 56% and 53% respectively. While MSME and Agri growth were 11% and 13%, management initiated a conscious rebalancing strategy to focus on quality, aiming to regain 15-16% growth in these segments for FY27.

Asset Quality Improvement and Proactive Risk Management

Asset quality significantly improved, with Gross NPA reducing by 29 bps YoY to 1.45% and Net NPA by 5 bps YoY to 0.13%, both well within guidance. Overall stress declined by 49 bps to 2.93%, and SMA-1 plus 2 improved by 61 bps to 1.39%. The bank also made a proactive INR200 crores provision for 'global geopolitical uncertainties' in Q4, acknowledging potential impacts from the West Asia crisis in Q2 FY27, while expecting a positive impact of ~INR2,000 crores from Maharashtra farm loan waivers on agri NPA.

GIFT City Operations and Overseas Expansion

The bank's overseas advances book grew substantially from INR3,517 crores to INR6,142 crores. Its GIFT City operations, which commenced in September 2025, achieved a bottom-line positive status within 12 months, significantly ahead of the initial 3-year breakeven expectation. The bank has already built a 650 million USD book and has a pipeline visibility of 350 million USD, aiming to reach its 1 billion USD target within 12 months.

Capital Adequacy and Shareholder Returns

Bank of Maharashtra maintained robust capital adequacy with a CET1 ratio of 14.59% and a CRAR of 18.36%. The board approved a total dividend payout of 22% (10% interim and 12% final), amounting to INR1,600-1,692 crores. Government of India holding reduced to 73.60% post OFS, making the bank MPS compliant, and FII/DII shareholdings have significantly increased.

Outlook and Key Focus Areas for FY27

For FY27, the bank targets 16-17% total business growth, 18% advances growth, and 14-15% deposit growth, while maintaining CASA around 50%. Key profitability targets include a NIM of 3.75%, ROA of 1.80% (upped from 1.75%), and ROE of 20%+. Asset quality guidance includes GNPA within 2%, NNPA within 0.25%, and PCR at 98%. Fee-based income and deposits are identified as strategic focus areas for the upcoming year, alongside continued branch expansion with 1,000 approvals for the next 5 years.

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