Bank of Maharashtra Shares Surge 4% Following Impressive Q2 Net Profit Growth
The Bank of Maharashtra has recently made headlines as its shares experienced a robust 4.3% increase, reaching a daily high of ₹57.40 on the National Stock Exchange (NSE) on October 15. This surge in share price comes on the heels of the bank’s remarkable performance in the second quarter of FY26, where it reported a significant 23% year-on-year increase in net profit, amounting to ₹1,633 crore.
Key Financial Highlights
In its Q2FY26 report, the Bank of Maharashtra showcased several impressive financial metrics. Notably, the Net Interest Income (NII) climbed by 15.71% year-on-year, reaching ₹3,248 crore. This growth is indicative of the bank’s continual efforts to enhance its lending portfolio and overall operational efficiency.
Operating profit also saw a commendable rise, increasing by 16.91% year-on-year to ₹2,574 crore, up from ₹2,202 crore in the same quarter the previous year. Such robust growth metrics reflect a strong momentum in the bank’s earnings, bolstered by strategic initiatives aimed at improving asset quality and expanding its customer base.
Improving Profitability Ratios
The return on assets (RoA) improved to 1.82% in Q2FY26, compared to 1.74% in Q2FY24, further affirming the bank’s efficient management of its resources. Similarly, the return on equity (RoE) was reported at 22.58%, a slight decline from 26.01% in the same period last year but still indicative of healthy profitability.
The total business of Bank of Maharashtra also enjoyed a year-on-year growth of 14.20%, totaling ₹5,63,909 crore. This increase can be attributed to the bank’s expanding operations and improved customer engagement strategies, which are essential for sustaining long-term growth.
Asset Quality and Provisioning
One of the notable improvements reported was the bank’s asset quality, with gross Non-Performing Assets (NPAs) reducing to 1.72% from 1.84% year-on-year. This decline is a positive sign for investors and reflects the bank’s commitment to maintaining robust credit risk management practices. Additionally, net NPAs eased to 0.18% from 0.20%, indicating an overall strengthening of asset quality.
Furthermore, the provision coverage ratio remained stable at 98.34%, showcasing the bank’s preparedness for unexpected credit losses and signalling prudence in its financial management.
Half-Year Performance Highlights
For the half-year period ending September 30, 2025, Bank of Maharashtra reported a notable escalation in profitability. Net profit surged by ₹606 crore year-on-year, reaching ₹3,226 crore, compared to ₹2,620 crore during the same timeframe last year. Operating profit grew 14.41% to ₹5,144 crore from ₹4,496 crore, and NII rose by 16.65% to ₹6,539 crore.
Moreover, the cost-to-income ratio improved to 37.34% from 38.34% the previous year, highlighting the bank’s ongoing efforts to optimize operational costs while enhancing revenue generation.
Share Market Performance
By around 9:55 AM on October 15, the Bank of Maharashtra’s shares were trading at ₹57, showing an increase of 3.42% from the last close. Over the last six months, the stock has appreciated by 24%, reflecting growing investor confidence in the bank’s strategic direction and financial health.
Conclusion
In summary, the Bank of Maharashtra’s impressive Q2 results, characterized by a 23% increase in net profit and substantial growth in NII, have contributed significantly to its 4.3% rise in share price. These financial outcomes not only demonstrate strong operational performance but also reflect a commitment to improving asset quality and managing risks effectively. For investors, the bank’s strong half-year performance underscores its potential as a robust investment opportunity in the current market landscape.
With an unwavering focus on efficiency and growth, the Bank of Maharashtra is well-positioned to capitalize on future opportunities, making it a noteworthy contender in the banking sector.