Bank of Maharashtra (BoM) is set to prioritize institutional deposit mobilization, branch-led growth, and cautious asset expansion to ensure a stable equilibrium between credit and deposit growth in FY27. In a recent conversation with BusinessLine, MD and CEO Nidhu Saxena indicated that, if current growth rates continue, the bank is on track to surpass the ₹10-lakh-crore milestone in total business by March 2029.
Saxena highlighted that BoM’s performance in FY26, which saw a 14 percent increase in deposits and a 22 percent rise in credit, is part of a sustained growth trajectory. He attributed this progress to balanced credit growth and robust liability mobilization. A cornerstone of this strategy is the bank’s Project 321, which involves the opening of 321 new branches—183 of which are already operational and contributing to business. Locations for these branches were chosen using detailed analytics, ensuring both profitability and quality sourcing from inception.
In light of potential global challenges, including geopolitical tensions and climate-related issues, BoM has adopted a cautious approach, including a ₹200 crore contingency fund for geopolitical uncertainties. Despite these global headwinds, Saxena noted that the bank is not currently facing significant adverse impacts.
Looking ahead to FY27, BoM projects an 18 percent increase in advances and a 14-15 percent rise in deposits, emphasizing quality and profitability. In FY26, advances grew by 21.74 percent and deposits by 14.14 percent. Credit growth is expected to be broadly distributed, primarily driven by the retail, agriculture, and MSME sectors, while corporate lending will remain selective, focusing on renewables, infrastructure, and data centers.
When questioned about the 760 basis point gap between credit and deposit growth at the end of FY26, Saxena acknowledged that while credit growth outpaced deposits, this gap is anticipated to narrow in FY27. He mentioned several structural initiatives that would bolster deposit momentum, including the operationalization of the bank’s GIFT City international banking unit (IBU), which began operations in FY26.
The bank plans to open 1,000 branches over the next five years, contributing to its growth trajectory. With a corporate loan pipeline of approximately ₹34,500 crore, BoM has observed healthy demand from sectors linked to infrastructure, renewable energy, and data centers. The IBU is projected to scale its exposure from around $750 million to approximately $1 billion in FY27, having reached breakeven within its first operational year.
On asset quality, BoM has reported consistent improvement, with gross NPAs and net NPAs declining to 1.45 percent and 0.13 percent, respectively, as of March 2026. The outlook for FY27 remains stable, with a continued focus on prudent lending practices and monitoring early warning indicators to avoid material stress in any sector. Saxena affirmed that despite potential economic challenges, the bank has established buffers, robust provision coverage, and effective monitoring mechanisms.
Regarding the anticipated impact of the transition to the expected credit loss (ECL) framework, BoM estimates incremental provisioning between ₹2,500 and ₹3,000 crore. The regulatory framework allows for a phased recognition of this impact, suggesting that there will be no immediate need to raise additional capital solely for ECL compliance.
Lastly, with the government’s launch of the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, BoM expects an 18-20 percent rise in credit demand from the MSME sector, aimed at addressing short-term liquidity challenges stemming from the West Asia crisis. This initiative is designed to ensure liquidity support and bolster the resilience of the Indian economy.
