The state-run bank’s management has guided for total business growth to be between 16% to 17%. It has pegged advances growth at 18% and deposits growth to be between 14% to 15% for financial year 2025.
Across other important parameters, Bank of Maharashtra sees its core income or Net Interest Income (NII) growing by 15% year-on-year, Net Interest Margins (NIMs) at 3.75%, growth in Non-Interest Income to be at 10% and the cost to income ratio to be below 40%.
Return on Assets (RoA) is seen at 1.8% and Return on Equity (RoE) is seen at 20% or higher for the new financial year.
The lender sees current account savings account (CASA) growth of around 5%, retail agriculture MSME (RAM) growth of 18% and a RAM-to-corporate mix to be in the 60:40 ratio with a +/- 2% variation.
On asset quality, the management has guided for the gross non-performing assets (NPA) to be within 2%, net NPA to be within 0.2%. It sees slippages below 1%, credit cost around 1%, provision coverage ratio at 98% and credit to risk-weighted assets ratio (CRAR) at 18%.
The management said that while growth will continue, it will not be at the cost of credit quality. The lender will focus on deposits and fee income in FY27.
Liability mobilisation will be a key monitorable and the management remains confident on asset quality.
The Maharashtra farm waiver could help agri NPAs. Meanwhile, the MSME slowdown was due to quality-led rebalancing and that it is not a demand problem, as per the management.
Bank of Maharashtra reported its fourth quarter results on Monday. Its net profit increased 15% to ₹2,014 crore, its NII or core income was up 19% at ₹3,702.5 crore from the previous year. The lender’s asset quality improved in the December quarter with its gross NPA declining to 1.45% and net NPA improving to 0.13% from the previous quarter.
The lender also recommended a dividend of ₹1.2 per equity share for FY26, subject to the approval of shareholders at the upcoming annual general meeting (AGM) of the bank. In January 2026, it had declared an interim dividend of ₹1 per equity share.
Bank of Maharashtra is also looking at raising 7,500 crore via equity and bonds and along with that, it also plans to issue foreign currency bonds of up to $500 million in the new fiscal. It will also issue long-term infrastructure bonds of up to ₹10,000 crore this year.
Bank of Maharashtra shares ended the previous session 2.8% higher at ₹74.82 apiece. The stock has risen 20% in the past month.
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