Asset Quality Improvement
Expected: CurrentHIGH confidence
What: Net NPA: 0.15%
“The net NPA has improved from 0.18% in the last quarter to 0.15% this quarter.”
Bank of Maharashtra: Why Is It Outperforming Nifty 500?
ActiveRS +29.4%Strong12w StreakAccelerating
In , Bank of Maharashtra (Banks - PSU) is outperforming Nifty 500 with +29.4% relative strength. Fundamentals: Strong. On a 12-week streak.
Bank of Maharashtra Key Facts
- PE Ratio
- 9.2x
- Price/Book
- 1.60x
- Market Cap
- ₹64,532 Cr
- PAT Growth YoY
- +36%
- Revenue Growth YoY
- +15%
- RS vs Nifty 500
- +29.4%
PB: Mid ContractionMax Opportunity
What's Happening
📈PB contracting while earnings accelerate — market hasn't priced in the growth
👔Promoter stake down 6.9% this quarter
🌐FII stake increased 1.1% this quarter
🏛️DII accumulation — stake up 5.6%
🏦GNPA at 1.45% and improving — strong asset quality
💰Trading 93% below estimated fair value — significant discount
Earnings Acceleration Triggers
1. Asset Quality Improvement
CurrentHIGH
2. Geographical Expansion
18 monthsMEDIUM
3. Client Mining Cross Selling Wallet Share
OngoingMEDIUM
Key Risks
1. Mandatory 125 bps rate cut pass-through to repo-linked loans (40-42% of portfoli
MEDIUM2. Agri GNPA elevated at nearly 10% due to localized weather stress
LOW3. Impact of new labor codes estimated at ₹33 lakhs
LOWSector-Specific Signals
Net Interest Margin3.87%
Gross NPA Ratio1.60%
Net NPA Ratio0.15%
CASA Ratio50.0%
Key Numbers
PAT Growth YoY
+36%
Accelerating
Revenue YoY
+15%
Decelerating
GNPA
1.45%
Improving
Price to Book
1.9
PEG Ratio
0.12
Current Price
₹84
Dividend Yield
1.79%
Fundamental Score
74/100
Strong
3Y PAT CAGR
+39%
Market Cap
64.5K Cr
Valuation
Significantly Undervalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are Bank of Maharashtra's Earnings Accelerating?
Based on Q3 FY26 earnings • Updated Apr 18, 2026
Geographical Expansion
Expected: 18 monthsMEDIUM confidence
What: Branch Count: 321 branches
“The 1,000 branches that we have taken approval and this 321, it is all opening branches outside Maharashtra.”
Client Mining Cross Selling Wallet Share
Expected: OngoingMEDIUM confidence
What: Ancillary products: 4 products per home loan
“the mandate given to our field functionaries when they sell one home loan, they will be trying to sell minimum four products on the day 1.”
Advances growth of 20% vs 17% guidance.
HIGH confidence
What: Advances growth of 20% vs 17% guidance.
“Advances have increased at 19% -- sorry, advances against the guidance of 17%, have increased by 20% year-on-year.”
NIM of 3.87% vs 3.75% guidance.
HIGH confidence
What: NIM of 3.87% vs 3.75% guidance.
“The ROA, ROE and NIM numbers; against the guidance of 3.75%, we have achieved 3.87%.”
What Are the Key Risks for Bank of Maharashtra?
Earnings deceleration risks from management commentary
Mandatory 125 bps rate cut pass-through to repo-linked loans (40-42% of portfoli
MEDIUMTrigger: Regulatory mandate to pass on rate cut benefits without time lag.
Management view: Raising MCLR by 30-35 bps prior to cuts and focusing on low-cost CASA to offset yield compression.
Monitor: regulatory
Agri GNPA elevated at nearly 10% due to localized weather stress
LOWTrigger: Incessant rains and flooding in certain pockets causing slippages.
Management view: Rebalancing Agri book toward investment credit and reclassifying gold loans under Agri.
Monitor: commodity
Impact of new labor codes estimated at ₹33 lakhs
LOWTrigger: Assessment of contractual and regular employee costs under new framing.
Impact: PAT impact: ₹33 lakhs
Management view: Management considers this amount insignificant.
Monitor: labor
What Is Bank of Maharashtra's Management Saying?
Key quotes from recent conference calls
“specifically the ROA, ROE, NIM, these numbers, we are having a decent guidance for NIM of 3.75%. [Previous NIM Guidance guidance]”
“Advances have gone up by almost 17%, CD ratio for us has improved to 82%. [Previous Loan Growth (Advances) guidance]”
“Project 321, wherein 321 branches selected very scientifically at the PIN code level, we have decided to be opened in 18 months. [Initiative: Project 321]”
“We have to mandatorily pass this rate cut benefit to our portfolio, which is linked to the repo rate. [Risk (regulatory): MEDIUM]”
What Did Bank of Maharashtra Report This Quarter?
Headline numbers from the latest earnings call
PAT
₹1,779 Cr
QoQ +8.9%
Why: Profitability was driven by consistent performance across parameters and achieving guidance on growth and asset quality.
The bank achieved its highest-ever quarterly profit in Q3 FY26.
Other Highlights
• 9-month net profit exceeded ₹5,005 Cr.
• Total business reached ₹5,95,000 Cr, growing 17.24% YoY.
• Interim dividend of 10% approved by the Board.
What Sector Metrics Matter for Bank of Maharashtra?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Net Interest Margin
3.87%
QoQ +2 bps
Why: Management increased NIM by 2 bps despite rate cuts by managing deposit costs and repricing the MCLR portfolio.
Gross NPA Ratio
1.60%
QoQ -12 bps
Why: Improved underwriting and recovery, particularly in the retail segment.
Net NPA Ratio
0.15%
QoQ -3 bps
Why: High provision coverage and disciplined asset quality management.
CASA Ratio
50.0%
QoQ +26 bps
Why: Focus on low-cost institutional and retail CASA through a dedicated new business vertical.
Provision Coverage Ratio
98.37%
Why: Conscious strategy to build extra cushions and buffers in the balance sheet.
CET1 Ratio
13.10%
Why: Maintained through internal accruals and government OFS issuance.
Credit-Deposit Ratio
85.0%
Why: Credit growth (20%) significantly outpaced deposit growth (15.3%).
Yield on Advances
8.95%
QoQ -32 bps
Why: Impact of 125 bps regulatory rate cuts passed through to repo-linked loans.
Cost of Deposits
4.47%
Why: Managed by shedding high-cost bulk deposits and focusing on CASA.
Slippage Ratio
1.2%
YoY 0 bps
Why: Maintained at the same level as last year despite a larger advance book.
What Is Bank of Maharashtra's Management Guidance?
Forward-looking targets from management for FY26
OPM Guidance
3.75%
Margin Outlook
REAFFIRMED
Volume
REAFFIRMED
Management Tone: BULLISH
Guidance Changes
REAFFIRMED
NIM: 3.75% → 3.75%
How Fast Is Bank of Maharashtra Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +15% | +23% | Decelerating |
| PAT (Net Profit) | +36% | +39% | Accelerating |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Frequently Asked Questions: Bank of Maharashtra
Based on publicly available financial data. This is educational research, not investment advice.
What were Bank of Maharashtra's latest quarterly results?
Bank of Maharashtra's latest quarterly results (Mar 2026) show
- PAT Growth YoY: +36.2% (accelerating)
- Revenue Growth YoY: +15.2%
- Net Interest Margin: 18.00%
- Gross NPA: 1.45%
Is Bank of Maharashtra's profit growing or declining?
Bank of Maharashtra's profit is growing with an accelerating trend.
- PAT Growth YoY: +36.2% (latest quarter)
- PAT Growth QoQ: +13.7% (sequential)
- 3-Year PAT CAGR: +39.1%
- Trend: Accelerating — latest quarter growth stronger than prior
What is Bank of Maharashtra's revenue growth trend?
Bank of Maharashtra's revenue growth trend is decelerating.
- Revenue Growth YoY: +15.2%
- Revenue Growth QoQ: +5.6% (sequential)
- 3-Year Revenue CAGR: +22.6%
What is Bank of Maharashtra's asset quality trend?
Bank of Maharashtra's asset quality trend is improving.
- Gross NPA: 1.45%
- Net NPA: 0.13%
- GNPA Change YoY: -0.3% bps
What is Bank of Maharashtra's 3-year profit and revenue CAGR?
Bank of Maharashtra's long-term compounding rates
- 3-Year Profit CAGR: +39.1%
- 3-Year Revenue CAGR: +22.6%
Is Bank of Maharashtra's growth accelerating or decelerating?
Bank of Maharashtra's earnings growth is accelerating with positive momentum on a sequential basis.
- YoY Acceleration: +8.8% bps
- Sequential Acceleration: +5.9% bps
What is Bank of Maharashtra's trailing twelve month (TTM) performance?
Bank of Maharashtra's trailing twelve month (TTM) performance
- TTM PAT: ₹7,000 Cr
- TTM PAT Growth: +26.6% YoY
- TTM Revenue: ₹29,000 Cr
- TTM Revenue Growth: +17.4% YoY
Is Bank of Maharashtra overvalued or undervalued?
Bank of Maharashtra appears significantly undervalued based on our fair value analysis.
- Valuation Signal: Significantly Undervalued
- Current PE: 9.2x
- Price-to-Book: 1.9x
What is Bank of Maharashtra's current PE ratio?
Bank of Maharashtra's current PE ratio is 9.2x.
- Current PE: 9.2x
- Market Cap: 64.5K Cr
- Dividend Yield: 1.79%
How does Bank of Maharashtra's valuation compare to its history?
Bank of Maharashtra's current PE is 9.2x.
- Current PE: 9.2x
- Valuation Assessment: Significantly Undervalued
What is Bank of Maharashtra's price-to-book ratio?
Bank of Maharashtra's price-to-book ratio is 1.9x.
- Price-to-Book (P/B): 1.9x
- Book Value per Share: ₹43
- Current Price: ₹84
Is Bank of Maharashtra a fundamentally strong company?
Bank of Maharashtra is rated Strong with a fundamental score of 74.24/100. This score is calculated from objective financial metrics
- PAT Growth YoY: +36.2% (20% weight)
- PAT Growth QoQ: +13.7% (15% weight)
- Earnings accelerating — sequential improvement in growth rate (5% weight)
- Price-to-Book: 1.6x vs sector median (27.5% weight)
- PEG Ratio: 0.1x vs sector median (27.5% weight)
Is Bank of Maharashtra debt free?
Bank of Maharashtra has a debt-to-equity ratio of N/A.
- Total Debt: ₹35,000 Cr
What is Bank of Maharashtra's return on equity (ROE) and ROCE?
Bank of Maharashtra's return ratios over recent years
- FY2024: ROE 23.0%
- FY2025: ROE 23.0%
- FY2026: ROE 23.0%
Is Bank of Maharashtra's cash flow positive?
Bank of Maharashtra's operating cash flow is negative (FY2026).
- Cash from Operations (CFO): ₹-11,000 Cr
- Free Cash Flow (FCF): ₹-12,000 Cr
- CFO/PAT Ratio: -162% (weak cash conversion)
What is Bank of Maharashtra's dividend yield?
Bank of Maharashtra's current dividend yield is 1.79%.
- Dividend Yield: 1.79%
- Current Price: ₹84
Who holds Bank of Maharashtra shares — promoters, FII, DII?
Bank of Maharashtra's shareholding pattern (Mar 2026)
- Promoters: 73.6%
- FII (Foreign): 5.5%
- DII (Domestic): 13.9%
- Public: 6.9%
Is promoter holding increasing or decreasing in Bank of Maharashtra?
Bank of Maharashtra's promoter holding has remained stable recently.
- Current Promoter Holding: 73.6% (Mar 2026)
- Previous Quarter: 73.6% (Dec 2025)
- Change: 0.00% (stable)
How long has Bank of Maharashtra been outperforming Nifty 500?
Bank of Maharashtra has been outperforming Nifty 500 for 12 consecutive weeks, indicating strong sustained outperformance.
Is Bank of Maharashtra a new momentum entry or an established outperformer?
Bank of Maharashtra is an established outperformer with 12 weeks of consecutive Nifty 500 outperformance.
What are the growth catalysts for Bank of Maharashtra?
Bank of Maharashtra has 5 key growth catalysts identified from recent earnings analysis
- Asset Quality Improvement — Improved underwriting standards (no loans below 681 CIBIL) and better recovery in mortgage-backed retail.
- Geographical Expansion — Expansion outside Maharashtra to capture new deposit and loan markets.
- Client Mining Cross Selling Wallet Share — Mandate to sell minimum four products (credit cards, insurance, etc.) with every home loan.
- Advances growth of 20% vs 17% guidance. — Simultaneous growth in corporate (19%) and retail (36%) segments.
What are the key risks in Bank of Maharashtra?
Bank of Maharashtra has 3 key risks worth monitoring
- [MEDIUM] Mandatory 125 bps rate cut pass-through to repo-linked loans (40-42% of portfoli — Regulatory mandate to pass on rate cut benefits without time lag.
- [LOW] Agri GNPA elevated at nearly 10% due to localized weather stress — Incessant rains and flooding in certain pockets causing slippages.
- [LOW] Impact of new labor codes estimated at ₹33 lakhs — Assessment of contractual and regular employee costs under new framing.
What did Bank of Maharashtra's management say in the latest earnings call?
In Q3 FY26, Bank of Maharashtra's management highlighted
- "specifically the ROA, ROE, NIM, these numbers, we are having a decent guidance for NIM of 3.75%. [Previous NIM Guidance guidance]"
- "Advances have gone up by almost 17%, CD ratio for us has improved to 82%. [Previous Loan Growth (Advances) guidance]"
- "Project 321, wherein 321 branches selected very scientifically at the PIN code level, we have decided to be opened in 18 months. [Initiative: Project..."
What is Bank of Maharashtra's management guidance for growth?
Bank of Maharashtra's management has provided the following forward guidance for FY26
- Revenue outlook: Not Given
- OPM guidance: 3.75%
- Capex plan: Not Given for Branch expansion under Project 321
- Management tone: bullish
- Milestone: [REAFFIRMED] NIM: 3.75% → 3.75%
What sector-specific metrics matter most for Bank of Maharashtra?
Bank of Maharashtra's most important sub-sector-specific KPIs from the latest concall
- Net Interest Margin: 3.87% (QoQ +2 bps) — Management increased NIM by 2 bps despite rate cuts by managing deposit costs and repricing the MCLR portfolio.
- Gross NPA Ratio: 1.60% (QoQ -12 bps) — Improved underwriting and recovery, particularly in the retail segment.
- Net NPA Ratio: 0.15% (QoQ -3 bps) — High provision coverage and disciplined asset quality management.
- CASA Ratio: 50.0% (QoQ +26 bps) — Focus on low-cost institutional and retail CASA through a dedicated new business vertical.
- Provision Coverage Ratio: 98.37% — Conscious strategy to build extra cushions and buffers in the balance sheet.
- CET1 Ratio: 13.10% — Maintained through internal accruals and government OFS issuance.
Is Bank of Maharashtra worth studying for long term investment?
Based on quantitative research signals, here is why Bank of Maharashtra may be worth studying
- Earnings growth is accelerating — PAT YoY +36.2%
- Valuation: appears significantly undervalued
- Strong returns — ROE 23.0%
What is the investment thesis for Bank of Maharashtra?
Bank of Maharashtra investment thesis summary:
Research Signals (Bull Case)
- Earnings accelerating — strongest growth trend
- Revenue growing at +15.2% YoY
- Appears significantly undervalued
- Growth catalyst: Asset Quality Improvement
Risk Factors (Bear Case)
- Key risk: Mandatory 125 bps rate cut pass-through to repo-linked loans (40-42% of portfoli
What is the future outlook for Bank of Maharashtra?
Bank of Maharashtra's forward outlook based on current data signals
- Earnings Trend: accelerating
- Revenue Trend: decelerating
- Valuation: Significantly Undervalued
- Key Catalyst: Asset Quality Improvement
- Key Risk: Mandatory 125 bps rate cut pass-through to repo-linked loans (40-42% of portfoli
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.