Bank of Maharashtra Q2 Profit Jumps 41%

Summary: Bank of Maharashtra’s Q2 FY27 net profit rose 41.4% year on year to ₹2,310 crore as net interest income, deposits and advances expanded. Gross bad loans improved to 1.25% and net NPA fell to 0.12%, while return on assets reached 2.02%. The state-owned lender also made an additional ₹500 crore provision ahead of the expected credit-loss framework, supporting stronger profitability and asset quality.

Bank of Maharashtra reported broad-based growth for the quarter ended September 30, 2026, combining faster loans and deposits with lower bad-loan ratios. The results also include a sizeable additional provision as the public-sector lender prepares for the expected-credit-loss regime.

What Happened

Net profit increased 41.42% year on year to ₹2,309.59 crore in Q2 FY27. Operating profit rose 30.86% to ₹3,369 crore, while net interest income increased 21.76% to ₹3,954 crore. Non-interest income grew 34%, according to the bank’s release.

Total global business grew 25.16% to ₹7.06 lakh crore.
Deposits increased 21.50% to ₹3.76 lakh crore.
Gross advances rose 29.61% to ₹3.29 lakh crore.
Gross NPA improved to 1.25% from 1.72% a year earlier; net NPA declined to 0.12% from 0.18%.
Return on assets improved to 2.02%, while capital adequacy stood at 18.51%.

Why It Matters

The combination of loan growth, deposit mobilisation and improving asset quality strengthens the earnings picture. However, investors should also examine funding costs, loan mix and credit-cycle risks. The bank made an additional ₹500 crore provision ahead of the expected-credit-loss framework, which reduced near-term profit but provides a buffer for the regulatory transition.

Market Impact

No reliable report available at publication time demonstrated a sustained Bank of Maharashtra share-price move caused by the results. The stock traded during the session, but ordinary intraday movement should not be attributed to the earnings announcement without verified evidence.

Industry Context

Indian banks are balancing rapid credit growth against deposit competition and evolving provisioning rules. Bank of Maharashtra’s 29.61% advance growth outpaced its 21.50% deposit growth, making funding mix and the credit-deposit ratio important follow-up measures. For comparison, BusinessNews1 recently reviewed IDFC FIRST Bank’s Q2 deposit and loan growth.

What To Watch Next

Whether return on assets remains above 2%.
Implementation details and further provisioning for the expected-credit-loss regime.
Deposit growth relative to advances and its effect on funding costs.
Slippages and recoveries as the loan book expands.
Capital needs if high credit growth continues.

Frequently Asked Questions

What was Bank of Maharashtra’s Q2 FY27 profit?

The bank reported net profit of ₹2,309.59 crore for Q2 FY27, up 41.42% from ₹1,633 crore a year earlier. Operating profit rose 30.86% to ₹3,369 crore, supported by 21.76% growth in net interest income and a 34% rise in non-interest income.

How did Bank of Maharashtra’s bad loans change?

Gross non-performing assets declined to 1.25% of loans at September 30, 2026, from 1.72% a year earlier. Net NPA improved to 0.12% from 0.18%, and the provision coverage ratio reached 98.53%, indicating a larger buffer against stressed assets. That leaves the bank with a strong cushion against remaining stressed loans.

How fast did deposits and loans grow?

Global deposits increased 21.50% year on year to ₹3.76 lakh crore, while gross global advances grew 29.61% to ₹3.29 lakh crore. Because loans expanded faster than deposits, investors should watch the credit-deposit ratio, funding costs and whether deposit mobilisation keeps pace.

Why did the bank make an additional ₹500 crore provision?

Management said the additional provision was made in preparation for the expected-credit-loss framework from the next financial year. The buffer lowered current earnings but may help the bank absorb future regulatory provisioning requirements. The final impact will depend on rules and the bank’s loan-risk profile.