Bank of Maharashtra (MAHABANK) Q3 24/25 earnings summary

Executive summary

• Consistent performance maintained over the last 12-15 quarters, with sustainable growth focus and strong contributions from both new and existing branches.

• Net profit for Q3 FY25 rose 35.8% YoY to ₹1,406 crore, with nine-month net profit up 41.9% to ₹4,027 crore; operating profit increased 14.5% YoY for the quarter.

• Total business crossed ₹5,07,650 crore, registering 16.9% YoY growth; advances grew 21.2% YoY and deposits rose 13.5% YoY.

• Retail, agriculture, and MSME (RAM) segments showed robust double-digit growth, with retail advances up 24.5%, housing loans up 29%, and car loans up 44% YoY.

• Asset quality improved, with GNPA at 1.80% and NNPA at 0.20%; stress in the loan book reduced by 174 bps YoY to 4.87%.

Financial highlights

• Net Interest Margin (NIM) stable at 3.98% for Q3 FY25; ROA improved by 23 bps to 1.78%.

• Net interest income for Q3 FY25 rose 19.4% YoY to ₹2,799 crore; total income for Q3 FY25 was ₹7,112 crore, up 22% YoY.

• Cost-to-income ratio improved to 36.04% for the nine months, below the 40% guidance.

• Employee costs rose 25% YoY due to new hiring and incentive provisions.

• Credit cost improved to 1.04%.

Outlook and guidance

• Confident in sustaining high double-digit growth in advances and deposits, supported by aggressive branch expansion and robust loan demand.

• NIM expected to remain in the 3.70%-3.90% range, even with potential rate cuts.

• Macro environment remains positive with GDP growth projected at 6.4% for FY25 and CPI inflation at 4.8%.

• Continued focus on quality loan book, with stricter underwriting and selective sectoral growth, especially in renewables, infrastructure, and manufacturing.

• Branch expansion strategy to shift towards cluster openings in growth centers, with a plan to open 1,000 branches over five years.