Bank of Maharashtra Q3FY26: Profit jumps 26.5%, advances and deposits post strong growth

Bank of Maharashtra Q3FY26 Results: State owned lender Bank of Maharashtra on Tuesday showing a strong performance for the December quarter, with consolidated net profit rising 26.50 per cent year-on-year to Rs 1,779.58 crore in Q3FY26. The lender had posted a profit of Rs 1,406.73 crore in the corresponding quarter last year, aided by steady income growth and improving asset quality.

Total income and operating profit show healthy growth

Total income during the quarter increased 16.4 per cent year-on-year to Rs 8,277.22 crore, compared with Rs 7,112.66 crore in Q3FY25. Operating profit, or profit before provisions and contingencies, rose nearly 19 per cent year-on-year to Rs 2,735.90 crore from Rs 2,303.39 crore a year earlier, reflecting better operating leverage and controlled costs.

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Margins improve despite slight dip in NIM

The bank’s net profit margin improved to 21.68 per cent from 19.83 per cent on a year-on-year basis, while operating margin rose to 33.21 per cent from 32.43 per cent in Q3FY25. Net interest income (NII) grew 16.27 per cent year-on-year to Rs 3,422 crore during the quarter, compared with Rs 2,943 crore in the year-ago period. The net interest margin (NIM) reduced to 3.86 per cent from 3.98 per cent YoY.\

Deposits and advances help growth

Bank of Maharashtra reported strong growth in its core business metrics. Total deposits rose 15.29 per cent year-on-year to Rs 3,21,661 crore, Global gross advances also increased 19.62 per cent year-on-year to Rs 2,73,502 crore as of December 31, 2025. The Bank also reported some improvement in its CASA ratio during the December quarter.

Improvement in asset quality

Bank of Maharashtra also saw a further improvement in its asset quality indicators. Gross non-performing assets (NPA) declined to 1.60 per cent from 1.80 per cent a year earlier, while net NPA fell to 0.15 per cent from 0.20 per cent in Q3FY25. The provision coverage ratio improved to 98.41 per cent as of December 31, 2025, compared with 98.28 per cent in the year-ago period.

The bank also said it continues to hold cumulative Covid-19 provisions of Rs 1,200 crore as on December 31, 2025, providing an additional buffer against potential stress.

Interim dividend announced

Alongside the results, the board of directors approved an interim dividend of Rs 1 per equity share of face value Rs 10 for FY26 (nine months), in line with Reserve Bank of India norms.

Overall, the December quarter performance underscores Bank of Maharashtra’s steady improvement in profitability, balance sheet strength and operating efficiency, keeping the stock in focus amid broader strength in public sector banking names.