Bank of Maharashtra (MAHABANK) Q4 25/26 earnings summary

Executive summary

• Net profit for FY26 rose 27% YoY, with Q4 net profit up 34.89% YoY; all guidance metrics for FY26 were achieved, surpassing targets in growth, asset quality, profitability, and capital adequacy despite geopolitical and deposit competition challenges.

• Operating profit grew 16% YoY to INR 10,826 crore; total business grew 17% YoY, advances up 22%, deposits up 14%, and CASA ratio maintained at 52.51%.

• Audited standalone and consolidated financial results for FY26 were approved with an unmodified audit opinion; digital transactions accounted for 98.92% of total transactions.

• Final dividend of INR 12 per share recommended, in addition to INR 10 interim, totaling INR 22 per share for FY26; board approved capital raising up to INR 7,500 crore via equity and INR 10,000 crore via infra bonds.

• Government of India shareholding reduced to 73.60% via OFS, meeting SEBI's minimum public shareholding norm.

Financial highlights

• Net Interest Income rose 17% YoY; NIM for FY at 3.91% (Q4 at 3.95%), above 3.75% guidance; total income for FY26 was INR 32,823 crore, up 16% YoY.

• ROA for FY at 1.86% (Q4 at 1.97%), above 1.75% guidance; ROE for FY at 23.19% (Q4 at 26.61%).

• Cost-to-income ratio at 37.08%, below 40% guidance; yield on advances at 9.05%-9.30%; cost of funds at 4.15%-4.33%; cost of deposits at 4.33%-4.52%.

• CET1 at 14.59%, CRAR at 18.36%; earnings per share for FY26 was INR 9.13, up from INR 7.48 YoY.

• Dividend payout for FY at INR 22 per share, totaling INR 1,692 crore.

Outlook and guidance

• FY27 guidance: total business growth 16-17%, advances 18%, deposits 14-15%, CASA ~50%.

• RAM book to grow 18%, RAM/corporate mix at 60/40±2%; NII to grow 15%, NIM guidance at 3.75%, non-interest income to grow 10%.

• Cost-to-income to remain below 40%, ROA guidance at 1.80%, ROE at 20%+, GNPA within 2%, NNPA within 0.25%.

• Slippage below 1%, credit cost ~1%, PCR at 98%, CRAR at 18%.

• Board approved significant capital raising plans to support growth and regulatory requirements.