Bank of Maharashtra (MAHABANK) Q1 25/26 earnings summary

Executive summary

• Delivered another consistent and profitable quarter, with net profit rising 23.14% YoY to ₹1,593 crore and operating profit up 12.01%, maintaining performance in line with guidance across key parameters.

• Total business grew 15% YoY to ₹5.46 lakh crore, with gross advances up 15.34% and deposits up 14.07%.

• Asset quality improved, with net NPA at 0.18% and gross NPA at 1.74% as of June 2025.

• Continued branch expansion with Project 321 and digital banking initiatives, with 98.70% of transactions now digital.

• Emphasized sustainable growth, regulatory compliance, and proactive adaptation to evolving guidelines.

Financial highlights

• Net interest margin for Q1 stood at 3.95%, slightly down from 4.0% in Q4, but above guidance; total income for Q1 FY25-26 was ₹7,879 crore, up 16% YoY.

• Yield on advances remained healthy at 9.28%, and cost of deposits declined by 15 bps sequentially.

• Treasury profit for the quarter was INR 625 crore, up from INR 360 crore YoY.

• Non-interest income declined 8% YoY to ₹825 crore, while provision and contingencies decreased 9% YoY to ₹867 crore.

• Cost-to-income ratio improved to 37.57% for the quarter.

Outlook and guidance

• Maintains FY26 guidance: total business growth at 15%, advances at 17%, deposits at 14%, and CASA above 50%.

• NIM guidance for FY26 remains at 3.75%; slippage ratio guidance below 1%, credit cost at 1%, and NNPA targeted at 0.2%-0.25%.

• Cost-to-income ratio to be kept below 40%.

• No immediate need for equity capital raise; CRAR stands at 20.5% with a target to maintain around 18%.

• Real GDP growth for 2025-26 projected at 6.5%, with inflation at 2.1% as of June 2025.