Mumbai: The Bank of Maharashtra (BoM) has reported strong financial results for the first quarter of FY2027 and a 26.8 percent year-on-year growth in net profit. This is the result of strong net interest income growth and increased operating profit, as well as very healthy growth in non-interest income and stable asset quality of the bank.
In the quarter ended June 30, 2026, the bank posted a net profit of ₹2,020 crore compared to ₹1,593 crore in the previous quarter of the year. The nearly 27% increase in operating performance and lending business is indicative of the bank’s performance improvement.
Core Income Registers Healthy Growth
The bank’s Net Interest Income (NII) in the last quarter of 2026, which represents interest earned and interest paid, increased by 14.5 percent year-on-year to ₹3,770 crore from ₹3,292 crore in the previous quarter.
The growth in NII indicates healthy growth in the bank's loan portfolio and sustained performance of its core banking operations in an expanding lending market.
Operating profit and other income are also growing strongly
Bank of Maharashtra also scored a good improvement in its operating performance.
Operating profit rose 21.3 percent to ₹3,117 crore (up from ₹2,570 crore a year ago). This growth is based on better cost management and operational efficiency.
Meanwhile, other income increased 25% year-on-year to ₹1,029 crore (in comparison to ₹825 crore during the same period last year). The growth in non-interest income also increased the bank’s overall profitability.
COVID-19 Provisions Reversed
The bank also said that it reversed COVID-19-related contingency provisions of ₹250 crore (i.e., in its regulatory filing) in the June quarter.
Even in light of the change in the scenario, the lender still has ₹760 crore in COVID-related contingency provisions as of June 30, 2026, showing that the lender is not shy about keeping a solid balance sheet.
Asset Quality Remains Stable
On asset quality, the bank was in a good position.
- Gross NPA (Gross Non-Performing Assets) remained unchanged at 1.45% quarter-on-quarter.
- Net NPA also remained the same at 0.13%, indicating that stressed assets are still under control.
Stable NPAs show good credit monitoring, proper lending practices, and efficient recovery mechanisms, and therefore are the key strengths for the lender.
Provisioning Position
The bank has provisions of ₹840 crore during the quarter.
- ₹840 crore compared to ₹867 crore in the corresponding quarter last year (lower YoY).
- ₹840 crore compared to ₹617 crore in the previous quarter (higher QoQ).
The provisioning levels indicate that the bank still has sufficient buffers to support current and future loan growth.
Key Financial Highlights (Q1 FY27)
- Net Profit: ₹2,020 crore (Up 26.8% YoY).
- Net Interest Income (NII): ₹3,770 crore (Up 14.5% YoY).
- Operating Profit: ₹3,117 crore (Up 21.3% YoY).
- Other Income: ₹1,029 crore (Up 25% YoY).
- Gross NPA: 1.45% (Stable QoQ).
- Net NPA: 0.13% (Stable QoQ).
- Provisions: ₹840 crore (Lower YoY, Higher QoQ).
Outlook
Bank of Maharashtra has started FY2027 on a strong footing, as lending income has flourished, operating performance has been strong, and good asset quality has been maintained. This lender can maintain low NPAs and achieve double-digit profit growth as a result, in line with its business strategy.
Bank of Maharashtra will remain one of the best public sector banks in the next quarter with credit growth, digital banking expansion, and prudent risk management. Investors will be closely watching how it continues to expand its loan base and deposit base as the financial year progresses.
Comments
Please to leave a comment on this article.