Bank of Maharashtra Q1 Results FY26: Net Profit Rises 24% YoY to ₹16,000 Crore, Asset Quality Steady
Bank of Maharashtra Q1 Results FY26: Solid Profit Growth and Stable Asset Quality Mark a Strong Start to FY26
July 16, 2025 | Mumbai – Bank of Maharashtra (BoM), one of India’s leading public sector banks, released its Q1 FY26 financial results, showcasing a robust start to the fiscal year with impressive profitability and steady asset quality. The bank reported a net profit of ₹16,000 crore, marking a 24% year-on-year (YoY) increase from ₹12,930 crore in Q1 FY25.
At a time when many public sector banks are navigating macroeconomic uncertainties and fluctuating credit demand, BoM’s results highlight effective risk management, improved operating leverage, and a well-balanced loan book.
🔍 Key Highlights: Bank of Maharashtra Q1 FY26
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Net Profit: ₹16,000 crore vs ₹12,930 crore YoY
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YoY Growth in Profit: ~24%
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Gross NPA (GNPA): 1.74% (unchanged QoQ)
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Net NPA (NNPA): 0.18% (unchanged QoQ)
These numbers reflect a stable financial foundation, with BoM successfully maintaining asset quality while expanding profitability.
💼 Operational Metrics
While full financials including Net Interest Income (NII) and loan book growth are yet to be disclosed in detail, the sharp uptick in profit suggests:
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Strong loan recovery mechanisms
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Effective cost controls
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Robust treasury performance
The consistency in GNPA and NNPA further underlines improved credit appraisal and collection practices, essential for long-term sustainability.
🧮 NPA Analysis: Stability Amid Expansion
BoM reported no change in its asset quality metrics on a sequential (QoQ) basis:
| Metric | Q1 FY26 | Q4 FY25 |
|---|---|---|
| GNPA | 1.74% | 1.74% |
| NNPA | 0.18% | 0.18% |
Such stable NPAs are notable, especially given the rising credit cycle and volatility in certain sectors like MSMEs. The bank has managed to keep slippages low, indicating disciplined lending and proactive risk monitoring.
💹 What’s Driving the Profit Surge?
Several key factors appear to be contributing to the 24% YoY increase in net profit:
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Lower provisioning: With stable NPAs, provisioning requirements have likely reduced.
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Higher fee income: BoM’s digital push and corporate banking operations may have generated more non-interest revenue.
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Expansion in low-cost deposits: Better CASA (Current Account Savings Account) performance helps reduce cost of funds.
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Controlled cost-to-income ratio: Efficient operational execution is reducing administrative overhead.
These improvements have helped BoM convert revenue into profit more effectively.
🏦 BoM’s Competitive Position in the PSU Banking Sector
BoM has steadily strengthened its position among PSU banks, not just in terms of profitability but also in operational efficiency:
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It enjoys one of the lowest NNPA ratios among public sector peers.
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The bank’s digital infrastructure has expanded, reducing dependency on branch banking.
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It has strengthened its rural and semi-urban presence, which is now delivering better credit-to-deposit ratios.
If this trend continues, BoM may soon become a top-tier PSU bank, rivaling larger names in terms of return ratios.
📈 Investor Takeaways
The Q1 FY26 results make a strong case for BoM’s continued resilience and growth. For investors:
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Improving profitability and stable asset quality are key positives.
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The consistent NNPA of 0.18% highlights strong credit quality.
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Given low NPAs and rising profits, the bank may also increase dividends or enhance return on equity (ROE).
🧠 Analyst Views
Market experts are cautiously optimistic about Bank of Maharashtra’s outlook:
“The stability in NPAs and consistent profit growth reinforce the bank’s improving fundamentals. It’s emerging as a strong PSU player for long-term investors,” said a banking sector analyst at a major domestic brokerage.
Some brokerages have even suggested re-rating the stock, considering it trades at a relatively lower price-to-book multiple despite strong results.
❓ FAQs on Bank of Maharashtra Q1 Results FY26
Q1. What is Bank of Maharashtra’s Q1 FY26 net profit?
The bank reported a net profit of ₹16,000 crore, up 24% YoY.
Q2. How is BoM’s asset quality?
The Gross NPA stood at 1.74% and Net NPA at 0.18%, both unchanged QoQ, indicating stable asset quality.
Q3. What is driving the profit growth?
Lower provisions, better cost control, and improved non-interest income likely contributed to the strong earnings.
Q4. Is BoM a safe investment?
With low NPAs and consistent profitability, BoM is considered stable among PSU banks. However, investors should consider broader market factors before investing.
Q5. Has BoM improved its position among PSU banks?
Yes, BoM now stands out for its operational efficiency, credit discipline, and digital transformation.
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