Bank of Maharashtra kicked off the week with a strong set of September quarter numbers. The public sector lender reported a 41.4 percent jump in net profit for the second quarter of FY27, as higher interest income, brisk loan growth and cleaner asset quality came together in the same quarter.
The bank earned a net profit of Rs 2,309.59 crore in the July to September 2026 quarter, up from Rs 1,633 crore in the same quarter last year. On a sequential basis too, profit rose 14.33 percent.
What drove the profit jump
The biggest driver was net interest income, the difference between what a bank earns on loans and what it pays on deposits. Net interest income rose about 22 percent year on year to Rs 3,954 crore, from Rs 3,247.6 crore a year earlier.
Interest income itself grew 20.7 percent to Rs 8,606.37 crore, while interest expenses rose 19.9 percent to Rs 4,652.14 crore. In other words, income grew a little faster than the cost of funds, and that gap flowed straight into profit.
Other income also helped. It rose 33.6 percent to Rs 1,129.04 crore, taking total income up 22.1 percent to Rs 9,735.41 crore. Operating profit, which measures earnings before provisions and tax, increased 30.86 percent to Rs 3,369 crore.
Provisions and contingencies, the money set aside for possible loan losses, fell 13.4 percent to Rs 654.45 crore. Lower provisions are often a sign that a bank is more comfortable with the quality of its loan book.
Loans and deposits grew at a fast clip
Bank of Maharashtra’s total global business grew 25.16 percent year on year to Rs 7,05,766 crore as of September 30, 2026. That is a large number, but the split underneath it tells the more interesting story.
- Global deposits rose 21.50 percent to Rs 3,76,407 crore.
- Gross global advances jumped 29.61 percent to Rs 3,29,359 crore.
- Current and savings account deposits accounted for more than 50 percent of the deposit base, helping keep funding costs in check.
- The bank has retained its FY27 advances growth guidance at 18 percent.
Loan growth running ahead of deposit growth is common when credit demand is strong. The bank’s domestic net interest margin stood at 3.97 percent for the quarter, with global net interest margin at 3.86 percent.
Asset quality improved further
Asset quality, the health of the loans a bank has already made, improved on every key measure in the quarter.
- Gross non-performing assets fell to 1.25 percent, from 1.72 percent a year earlier and 1.45 percent in the June 2026 quarter.
- Net non-performing assets eased to 0.12 percent, from 0.18 percent a year earlier.
- The provision coverage ratio stood at 98.53 percent, broadly steady against 98.34 percent a year ago.
A provision coverage ratio near 98 percent means the bank has already provided for almost all of its recognised bad loans.
Efficiency and returns also moved up
The bank became more efficient in the quarter. Its cost to income ratio improved to 33.73 percent, from 37.10 percent a year earlier and 35.04 percent in the June quarter. Put simply, it spent less to earn each rupee of income.
Return on assets improved to 2.02 percent, from 1.82 percent a year ago, while return on equity stood at 26.98 percent for the quarter. Capital buffers also stayed strong, with total capital adequacy at 18.51 percent and common equity tier 1 capital at 15.61 percent.
For the first half of FY27, net profit rose 34.22 percent to Rs 4,330 crore, operating profit increased 26.08 percent to Rs 6,486 crore, and net interest income grew 18.12 percent to Rs 7,724 crore.
What the market made of it
Shares of Bank of Maharashtra were flat at around Rs 75.48 on the NSE when the results landed on Monday, according to live market coverage of the day. A flat reaction after a strong result is not unusual: when a stock has already run up ahead of earnings, good numbers can simply meet expectations rather than surprise.
For the wider banking sector, the result adds to a pattern visible across this earnings season. Public sector banks with strong deposit franchises and improving asset quality have been reporting steady profit growth, even as high crude oil prices and global uncertainty keep the broader market on edge.
FAQs
What was Bank of Maharashtra’s Q2 FY27 net profit?
Net profit rose 41.4 percent year on year to Rs 2,309.59 crore in the September 2026 quarter, from Rs 1,633 crore a year earlier.
How much did net interest income grow?
Net interest income rose about 22 percent to Rs 3,954 crore, helped by 20.7 percent growth in interest income.
How did asset quality change?
Gross NPAs improved to 1.25 percent from 1.72 percent a year ago, while net NPAs eased to 0.12 percent from 0.18 percent.
How big is Bank of Maharashtra’s business now?
Total global business stood at Rs 7,05,766 crore as of September 30, 2026, with deposits of Rs 3,76,407 crore and advances of Rs 3,29,359 crore.
Did the bank’s shares rise after the results?
Shares were largely flat at around Rs 75.48 on the NSE when the results were reported on Monday, as per live market coverage.
Bank of Maharashtra’s September quarter shows a public sector lender in a strong phase: lending fast, earning more on that lending, and carrying a cleaner loan book into the second half of the financial year.
