Bank of Maharashtra Reports 41.42% Profit Surge in Q2 FY27
The Bank of Maharashtra achieved a remarkable 41.42% increase in net profit for Q2 FY27, surpassing market expectations.
Net profit reached ₹2,310 crore, exceeding estimates of ₹2,100 crore.
Total income rose to ₹9,736 crore, a 22% year-on-year increase.
Significant improvements in asset quality with GNPA down to 1.25%.
The Bank of Maharashtra has announced a robust performance for the second quarter of FY27, with net profit soaring by 41.42% year-on-year to ₹2,310 crore. This impressive result not only surpassed market expectations of ₹2,100 crore but also reflects the bank's strong revenue growth and enhanced asset quality. The total income for the quarter was reported at ₹9,736 crore, marking a substantial 22% increase from ₹7,974 crore in the same quarter last year.
In terms of key financial metrics, the bank's Net Interest Income (NII) grew by 21.76% year-on-year to ₹3,954 crore, while Operating Profit saw a significant rise of 30.86% to ₹3,369 crore. The Domestic Net Interest Margin (NIM) improved to 3.97%, and the Return on Equity (ROE) increased to 26.98%. Compared to the previous quarter, net profit rose by 14.33%, indicating consistent growth.
The bank also reported a notable improvement in asset quality, with provisions for Non-Performing Assets (NPAs) sharply declining to ₹121 crore in Q2 FY27 from ₹583 crore in the same quarter last year. The Gross Non-Performing Assets (GNPA) ratio decreased to 1.25%, down from 1.72% a year earlier, while the Net Non-Performing Assets (NNPA) ratio improved to 0.12%. The Provisions Coverage Ratio (PCR) stood strong at 98.53%, underscoring the bank's solid financial standing.
On the business front, total business expanded by 25.16% year-on-year to ₹7,05,766 crore, with deposits growing by 21.50% to ₹3,76,407 crore. However, the CASA ratio saw a decline to 46.47% from 50.35% a year ago, indicating a shift towards term deposits, which surged by 31.22%. Retail and MSME advances also demonstrated strong growth, contributing to the bank's overall performance.
Looking ahead, the Bank of Maharashtra aims to maintain its growth trajectory, with management expressing confidence in meeting future targets for profitability and asset quality. The bank's management highlighted that significant credit growth was driven by the GIFT City IBU branch, and they anticipate continued recovery from written-off accounts, targeting annual recoveries of ₹1,300–₹1,500 crore over the next few years.
