Bank of Maharashtra Shares Jump 15%: Q4 Profit Up 35% to Rs 2,014 Cr, Dividend Rs 1.20
Bank of Maharashtra Shares Surges 15% on 35% Profit Jump
Bank of Maharashtra reported stellar Q4 FY26 results, driving its shares up 15% amid robust profit growth and strong asset quality. Net profit soared 35% YoY to Rs 2,014 crore, fueled by higher interest income and lower NPAs.
Financial Performance
Net interest income (NII) rose 19% to Rs 3,702 crore, supporting a NIM of 3.95%. Advances grew 22% to Rs 2.92 lakh crore, deposits up 14% to Rs 3.50 lakh crore, pushing total business to Rs 6.42 lakh crore (17.5% YoY). Gross NPA improved to 1.45%, Net NPA at 0.13%, with ROA at 1.97%.
Dividend and Capital Plans
The board recommended a Rs 1.20 per share final dividend. It also approved raising up to Rs 7,500 crore via equity (QIP/FPO/Rights), bonds, or preferential allotment to fuel growth.
Growth Drivers
Higher core income, 22% loan book expansion, and superior CASA ratio of 52.51% boosted profitability. For FY26, annual net profit hit Rs 7,019 crore (up 27% YoY).
Stock Market Reaction
Shares jumped nearly 6% to Rs 79.90 on results day, extending gains to 15% over two sessions, hitting 52-week highs. Investor enthusiasm reflects confidence in the bank's outperformance among PSU peers.
Investor Implications
Strong metrics position Bank of Maharashtra as a top mid-sized PSU bank, with dividend yield appealing to income seekers. Capital raise signals ambitious FY27 expansion amid India's credit boom.
