Target: ₹88
CMP: ₹80.16
Bank of Maharashtra has reported a profit after tax (PAT) of ₹2,010 crore for Q4FY26, which is 12.3% higher than the analysts’ estimate of ₹1,790 crore. This marks a quarter-on-quarter increase of 13.2% and a year-on-year increase of 34.9%. The sequential growth can be attributed to robust net interest income (NII) performance and reduced provisions.
In Q4, net advances saw a sequential growth of 6.9% and an annual growth of 22%. Deposits increased by 9% sequentially and 14.1% year-on-year. The net interest margin (NIM) improved by 5 basis points from the previous quarter but showed a decrease of 9 basis points year-on-year. The yield on advances, however, fell by 20 basis points quarter on quarter, settling at 8.72%. Management noted that the benefits from deposit repricing have largely been realized and projected a NIM of approximately 3.75% moving forward.
The bank reported gross slippages of ₹840 crore, resulting in an annualized gross slippage ratio of 1.2%. Recoveries and upgrades amounted to ₹340 crore, leading to a net slippage addition of ₹500 crore. Future slippages are expected to remain below the 1% mark, with credit costs anticipated to stabilize at 1%.
Looking ahead, advances are projected to grow by 18%, while deposits are expected to increase by 14-15%, with maintaining a CASA ratio around 50%. In light of these revised projections, the target price has been adjusted to ₹88 from ₹80, while the rating on Bank of Maharashtra remains a “BUY.” The valuation of the standalone bank is set at 1.5 times its FY28E adjusted book value per share of ₹58.
Published on April 21, 2026.
