Bank of Maharashtra Q3FY26 Results: Profit Jumps 26%, NPAs Crash To 0.15%; 10% Dividend Declared

Bank of Maharashtra (BoM) released its financial results for the quarter that ended on December 31, 2025, on Tuesday. On a year-on-year basis, the bank's net profit climbed by 26.51% to Rs 1,779 crore in Q3FY26 from Rs 1,406 crore in Q3FY25. According to BoM, its Net Interest Income (NII) surged by 16.27% YoY to Rs 3,422 crore in the December 2025 quarter compared to Rs 2,943 crore in the December 2024 quarter.

The bank said that, compared to Rs 3,731 crore for Q3FY25, its Net Revenues (Net Interest income + other revenue) for Q3FY26 increased by 16.73% to Rs 4,355 crore. The cost-to-income ratio improved from 38.27% for Q3FY25 to 37.19% for Q3FY26. BoM said that its Return on Equity (ROE) climbed to 23.79% for Q3FY26 from 22.36% for Q3FY25, while its Return on Assets (ROA) jumped to 1.86% for Q3FY26 from 1.78% for Q3FY25 and 1.82% for Q2FY26.

The bank reported robust balance sheet growth as of December 31, 2025, indicating strong business momentum across every segment. With consistent growth in both deposits and advances, total business grew by 17.24% YoY to Rs 5,95,163 crore. A robust funding base and ongoing client confidence are demonstrated by the 15.29% YoY rise in total deposits to Rs 3,21,661 crore. Lending-wise, global advances increased by a healthy 19.62% YoY to Rs 2,73,502 crore, primarily due to solid growth in retail and MSME lending.

The RAM (Retail, Agriculture, and MSME) portfolio, which grew by 20.26% YoY, had the strongest growth trend. The bank's growing emphasis on granular, high-quality retail lending was highlighted by the notable 36.40% YoY rise in retail advances. The bank is still well-capitalized in terms of capital strength. The Basel III Capital Adequacy Ratio was a comfortable 17.06% as of December 31, 2025, offering a substantial safety net over regulatory standards. At 13.10%, the Common Equity Tier 1 (CET1) ratio was in good shape, indicating strong core capital.

Over the course of the term, asset quality metrics improved further, demonstrating successful risk management and recovery initiatives. Compared to 1.80% a year earlier and 1.72% as of September 30, 2025, Gross Non-Performing Assets (GNPA) dropped to 1.60% as of December 31, 2025. Additionally, Net NPA showed a significant improvement, declining to 0.15% from 0.20% in December 2024 and 0.18% in September 2025, revealing better provisioning and lower incremental stress.

The Provision Coverage Ratio (PCR) increased from 98.28% to 98.41% as of December 31, 2025, indicating that provisioning levels continued to be extraordinarily high. This high PCR offers a substantial buffer against any risks to asset quality. Furthermore, as of December 31, 2025, the bank still has cumulative Covid-19 provisions of Rs 1,200 crore, which strengthens the long-term health of its balance sheet.

"This is to inform that the Board of Directors of the Bank, at their meeting held today i.e., on 13.01.2026, have considered and approved Interim Dividend of 10 % on the equity shares of the Bank i.e., Rs. 1.00/- per share having face value of Rs. 10/- each for the Financial year 2025-26. Accordingly, we wish to inform you that the Record Date for determining the eligibility of members entitled to receive interim dividend on equity shares is Tuesday, 20th January, 2026," said Bank of Maharashtra in a stock exchange filing on 13th January.