Bank Of Maharashtra Q1 Profit Jumps 23% To ₹1,593 Crore, Eyes 17% Credit Growth Amid Branch Expansion
Key Highlights:
Net profit rose 23% YoY to Rs 1,593 crore.
Gross NPA improved to 1.74 percent; net NPA to 0.18 percent.
321 new branches planned; 17 percent credit growth target.
New Delhi: State-owned Bank of Maharashtra (BoM) on Tuesday reported a 23 per cent increase in net profit to Rs 1,593 crore during the first quarter, aided by a decline in bad loans and improvement in interest income.
The Pune-based lender had posted a net profit of Rs 1,293 crore in the April-June period of the previous year.
Total income in the quarter under review rose to Rs 7,879 crore from Rs 6,769 crore in the same period a year ago, BoM said in a regulatory filing.
Interest earned by the bank grew to Rs 7,054 crore in the first quarter from Rs 5,875 crore in the June quarter of FY25. Net Interest Income (NII) grew by 17.60 per cent to Rs 3,292 crore as against Rs 2,799 crore in Q1 FY25.
The bank's asset quality showed improvement as gross non-performing assets (NPAs) declined to 1.74 per cent of gross advances at the end of June quarter FY26 from 1.85 per cent a year ago.
Similarly, net NPAs or bad loans declined to 0.18 per cent as against 0.20 per cent in the year-ago period.
However, provision for non-performing assets increased to Rs 719 crore during the quarter from Rs 586 crore in the same quarter last year.
Explaining the reason for the increase in the provisions, BoM managing director and chief executive officer Nidhu Saxena said it is due to stress in the agriculture sector portfolio.
He exuded confidence that this should get better with the expected good monsoon and consequent upgradation of these accounts in the coming quarters.
Provision coverage ratio of the bank stood at 98.36 per cent as on June 30, 2025, as against 98.36 per cent as on June 30, 2024.
Talking to the media while announcing quarterly numbers, he said the bank is looking at credit growth of 17 per cent helped by branch expansion.
Last year, the bank opened 500 branches across the country and plans to open 321 new branches in 18 months in high-growth centres of the country, he said.
Despite rate cuts by the RBI, he said, the bank has set guidance of 3.75 per cent for the Net Interest Margin (NIM) on the conservative side for the current financial year as the bank has advantage of good Current Account and Savings Account (CASA) deposits.
"We hope to maintain CASA above 50 per cent of total deposits during the financial year," he said.
Net Interest Margin (NIM) improved to 4.01 per cent in FY'25 as compared to 3.97 per cent in the previous year.
On the fund raising, he said, the board has given approval for raising Rs 7,500 crore through a mix of debt and equity.
The capital raise would also help the bank to bring down the government's holding from the existing 79.60 per cent.
The bank also plans to mobilisation Rs 10,000 crore through infrastructure bonds, he said.
Capital adequacy ratio of the bank rose to 20.06 per cent from 17.04 per cent in the same quarter of FY25.
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