Bank of Maharashtra has reported a strong performance for the second quarter of the financial year 2025–26 on October 14, 2025, showcasing consistent growth in profitability and operational efficiency. The public sector lender’s standalone net profit rose 23.09% year-on-year to ₹1,633.14 crore, supported by a healthy increase in income and improved asset quality.
Robust Growth in Income and Profitability
The bank’s total income grew 17.1% to ₹7,973.61 crore in Q2 FY26 compared to ₹6,807.99 crore in the same quarter last year. Profit before tax (PBT) rose sharply by 31.78% to ₹1,818.38 crore, reflecting strong operational performance.
Net interest income (NII), a key indicator of a bank’s core lending operations, increased 15.71% to ₹2,807 crore during the quarter ended 30 September 2025. The net interest margin (NIM) remained healthy at 3.85%, highlighting the bank’s effective management of interest spreads.
Operating profit for the quarter stood at ₹2,574 crore, registering a 16.91% year-on-year growth, supported by efficient cost control and improved treasury performance.
Decline in Provisions and Continued Asset Quality Improvement
Provisions and contingencies (excluding taxes) declined 8.06% year-on-year to ₹755.87 crore, compared with ₹822.12 crore in the corresponding quarter of the previous year. This reduction in provisioning reflects the bank’s stronger balance sheet and improved asset quality metrics.
The gross non-performing asset (NPA) ratio improved to 1.72% as of 30 September 2025, compared with 1.84% a year earlier and 1.74% as of 31 March 2025. Similarly, the net NPA stood at 0.18%, down from 0.20% in September 2024. The provision coverage ratio (PCR) remained strong at 98.34%, demonstrating the bank’s prudent risk management and robust provisioning levels.
Steady Growth in Advances and Deposits
The bank continued to expand its lending and deposit base during the quarter. Gross advances grew 15.34% year-on-year to ₹2,41,097 crore in Q2 FY26, compared with ₹2,09,031 crore in the same quarter last year. Deposits also rose 14.07% to ₹2,67,416 crore, indicating steady customer confidence and deposit mobilisation across segments.
Strong Capital Adequacy Position
Bank of Maharashtra maintained a healthy capital position under Basel III norms, with an overall capital adequacy ratio (CAR) of 18.13% and a Common Equity Tier 1 (CET1) ratio of 14.05% as of September 2025. These levels provide a solid cushion for future growth and regulatory compliance.
Half-Yearly Performance Overview
On a half-yearly basis, the bank’s standalone net profit rose 23.11% to ₹3,225.90 crore for the first half of FY26, compared with ₹2,620.26 crore in the corresponding period of FY25. Total income for the same period increased 16.75% to ₹15,852.43 crore, highlighting consistent performance across both quarters.
Government Stake and Business Segments
Bank of Maharashtra operates across multiple segments, including treasury, corporate and wholesale banking, retail banking, and other banking operations. As of 30 September 2025, the Government of India held a 79.60% stake in the bank, reinforcing its status as a leading public sector lender.
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Conclusion
Bank of Maharashtra’s Q2 FY26 results underscore its steady progress in profitability, operational efficiency, and asset quality. The sustained growth in income and advances, coupled with reduced provisions and strong capital adequacy, reflects the bank’s financial resilience and prudent management. As the institution continues to strengthen its digital and retail banking focus, it remains well-positioned to sustain growth momentum in the coming quarters.
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