Bank of Maharashtra posted a 23% rise in net profit to Rs 1,593 crore in the fiscal first quarter amid decline in bad loans and improvement in interest income.

In the year-ago period, the state-owned lender had reported a net profit of Rs 1,293 crore.

The bank’s total income rose to Rs 7,879 crore in the June quarter, from Rs 6,769 crore a year earlier. 

Interest income grew to Rs 7,054 crore, up from Rs 5,875 crore in the year-ago quarter.

NII and NIM

Net interest income (NII) grew 17.6% year-on-year to Rs 3,292 crore in Q1 FY26, up from Rs 2,799 crore in Q1 FY25. 

Net interest margin (NIM) stood at 3.95%, almost flat from 3.97% a year ago and down from 4.01% a quarter ago.

Asset quality

The state-owned bank’s asset quality improved, with gross non-performing assets (NPAs) declining to 1.74% of gross advances as of 30 June 2025, from 1.85% a year ago.

Net NPA fell to 0.18% from 0.20% in the same period of the previous fiscal.

Slippages increased sequentially to Rs 727 crore from Rs 660 crore in the March quarter.

The provision coverage ratio stood at 98.36% as of 30 June 2025. 

Provisions for the June quarter declined to Rs 867.41 crore from Rs 983.29 crore a quarter ago.

Total Business 

The lender reported a 14.6% year-on-year growth in total business to touch Rs 5.46 lakh crore. While deposits grew 14% to Rs 3.05 lakh crore, gross advances rose 15.34% to Rs 2.41 lakh crore as on 30 June 2025.

Low-cost CASA (current account savings account) deposits grew to Rs 152,738 crore, representing 50.07% of the bank’s total deposits. 

The loan book was driven mainly by the RAM (Retail, Agriculture and MSME) sector, improving to 62.10% of gross advances. Retail loans rose 35.37% to Rs 71,966 crore on YoY basis. MSME advances grew 5.65% YoY to Rs 44,967 crore.