The Bank of Maharashtra (BoM) has posted a robust performance for the July–September quarter of FY2025, recording a 23% year-on-year (YoY) increase in net profit, which rose to ₹1,633 crore. The impressive growth was mainly driven by higher net interest income (NII) and effective management of costs and lending operations.
Bank of Maharashtra Reports 23% Rise in Profit at ₹1,633 Crore Amid Strong Interest Income Growth
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Strong Profit Growth
The public sector lender reported a net profit of ₹1,633 crore for Q2 FY25, up from ₹1,330 crore in the same period last year. This steady rise reflects the bank’s growing efficiency in lending and improved revenue generation from its core operations.
Surge in Net Interest Income
BoM’s net interest income — the difference between interest earned and paid — climbed 19% YoY to ₹2,579 crore, compared to ₹2,172 crore last year. This growth came as a result of increased loan disbursements and better interest margins.
Asset Quality Improvement
The bank also showcased significant improvement in asset quality. Gross Non-Performing Assets (NPA) dropped to 2.02% from 2.24% a year ago, while Net NPA reduced to 0.18% from 0.24%. This indicates better recovery performance and effective risk management.
Expansion in Loan and Deposit Base
Total advances grew by 16.6% to ₹1.93 lakh crore, while total deposits increased by 13.5% to ₹2.51 lakh crore. The Credit-Deposit (CD) ratio stood at a healthy 77%, highlighting the bank’s balanced credit and deposit strategy.
Improved Capital Adequacy
The Capital Adequacy Ratio (CAR) remained strong at 16.85%, well above the regulatory requirement, ensuring the bank’s financial stability and capacity to absorb potential risks.
Strong Return Ratios
Return on Assets (RoA) and Return on Equity (RoE) showed notable improvements, reflecting better profitability and capital utilization. BoM continues to outperform many of its public sector peers in these metrics
Management Outlook
The bank’s management expressed confidence in maintaining this growth momentum. With steady improvement in credit quality, digital banking adoption, and cost efficiency, BoM aims to strengthen its presence in the retail and MSME sectors.
Frequently Asked Questions (FAQ)
What is the Bank of Maharashtra’s net profit for Q2 FY25?
The bank reported a net profit of ₹1,633 crore for Q2 FY25, a 23% increase compared to the previous year.
What factors contributed to this profit growth?
The growth was mainly driven by higher net interest income, improved asset quality, and effective cost management.
How did the bank perform in terms of asset quality?
Gross NPAs fell to 2.02% and Net NPAs declined to 0.18%, showing a marked improvement.
What is the status of BoM’s loan and deposit growth?
Loans increased by 16.6% to ₹1.93 lakh crore, while deposits grew by 13.5% to ₹2.51 lakh crore.
What are the bank’s future growth plans?
BoM plans to expand its retail and MSME portfolio, focus on digital banking, and maintain strong profitability.
How does Bank of Maharashtra compare with other public sector banks in India?
Bank of Maharashtra continues to lead among PSU banks in profitability and asset quality, maintaining one of the lowest NPA ratios and strong return metrics, positioning it as one of the fastest-growing public sector lenders in India.
