• Total business grew 17% YoY with advances growing 22% and deposits growing 14%, maintaining CASA ratio above 50% at 52.51%
• Retail portfolio grew 32% YoY, with home loans up 29%, vehicle loans up 56%, and gold loans up 53%
• Recovery from write-off book reached ₹1,423 crores in FY26 (vs ₹1,375 crores in FY25) from a total write-off book of ₹20,000 crores, with target of ₹1,200-1,500 crores annually
• Gift City operations achieved $650 million book in 6 months (started September 2024), targeting $1 billion in first 12 months with profitability achieved in March 2025
• Asset quality improved significantly with GNPA declining 29 bps YoY to 1.45% and NNPA declining 5 bps to 0.13%, both better than guidance
• Government of India shareholding reduced below 75% to 73.6% post-OFS, making bank NPS compliant; FII holding increased from 0.39% to 5.8%, DII from 0.24% to 6.86%
• Branch expansion project '3-2-1' progressing with 183 of planned 1,000 branches (over 5 years) already operational
• Created new ₹200 crore provision for global geopolitical uncertainties, demonstrating proactive risk management

Bank of Maharashtra delivered a strong FY26 performance, meeting or exceeding all 18-19 guidance parameters with 22% advances growth, 27% net profit growth, and improved asset quality (GNPA at 1.45%, NNPA at 0.13%). Management expressed confidence despite geopolitical uncertainties, highlighting successful portfolio rebalancing, strong recovery from write-offs (₹1,423 crores), and expansion into Gift City. The bank has upped its FY27 ROA guidance to 1.8% from 1.75%, demonstrating sustained momentum.

Bank of Maharashtra reported strong financial performance for FY26. Net Interest Income grew 17% YoY. Operating Profit reached ₹10,826 crores with 16% YoY growth, while Net Profit grew 27% YoY to ₹7,019 crores. NIM for the full year was 3.91% (vs guidance of 3.75%), with Q4 NIM at 3.95%, showing improvement after dipping to 3.85% in Q2. ROA improved to 1.86% for FY26 (vs guidance of 1.75%) with Q4 ROA touching 1.97%. ROE stood at 23.19% for the full year and 26.61% for Q4. Cost-to-income ratio was contained at 37.08%, well below the 40% guidance. Cost of deposits improved 14 bps YoY to 4.52% (Q4: 4.33%), while cost of funds reduced 7 bps YoY to 4.15%. Provision coverage ratio stood at 9.05%. Capital adequacy remained strong with CET1 at 14.59% and CRAR at 18.36%. The bank proposed a final dividend of 12% plus interim dividend of 10%, totaling 22% (approximately ₹1,692 crores).

Management demonstrated high confidence and strategic clarity throughout the call. MD & CEO Nidhu Saxena emphasized the bank's achievement of becoming a 'bank of greater significance' while maintaining top 1-3 rankings in key ratios among PSBs. He highlighted the strategic shift from institutional bulk transactions to core branch-level business, resulting in reduced volatility and sustainable growth. Management stressed the importance of profitable growth without compromising asset quality, implementing stringent underwriting standards (e.g., minimum credit score of 681 for retail). The focus on portfolio rebalancing in MSME and Agri segments (initially causing growth to dip but recovering to double-digit levels) demonstrates disciplined risk management. Management expressed particular pride in write-off recovery performance and successful Gift City launch. The creation of a new ₹200 crore provision for geopolitical uncertainties, while acknowledging potential West Asia crisis impacts, shows proactive risk management. Management committed to meeting all 17-18 guidance parameters for FY27, having successfully delivered on all targets for two consecutive years.

The primary headwind discussed was the ongoing West Asia geopolitical crisis (Iran-Israel-US tensions starting February 28, 2025), with management acknowledging potential impacts may not fully manifest until Q2 FY27 or later. Crude oil prices above $100-115 could trigger inflationary pressures and currency depreciation, potentially stressing MSME borrowers. Management noted the crisis is ongoing with no clear end in sight, though current SMA figures show no stress yet (SMA-1: ₹241 crores, SMA-2: ₹56 crores). The deposit war and intense competition for deposits was mentioned as a challenge. Fee income growth was significantly impacted by a one-time ₹290 crore MTM provision related to RRB amalgamation (Maharashtra Grameen Bank taking on accumulated losses), causing non-interest income to grow only 2.51% vs 10% guidance. Gold loan book declined QoQ by ~17% due to mandatory transition from CLM-2 to CLM-1 co-lending model (RBI guidelines effective January 2026), temporarily halting fresh underwriting with NBFCs though this is now resolved. The bank experienced AFS reserve swing of approximately ₹505 crores from Q3 to Q4 due to yield movements, though this has partially recovered. Maharashtra state farm loan waiver scheme (for KCC loans below ₹2 lakhs as of September 30, 2025) will impact approximately ₹1,984 crores of overdue/NPA accounts, though management views this positively as it will reduce Agri NPA from 7.72% to 5.33%.

Revenue Outlook: Total business growth: 16-17%, Advances: 18%, Deposits: 14-15%, NII growth: 15%

Margin Outlook: NIM guidance: 3.75% for FY27

Key Targets:

• ROA: 1.8% (increased from 1.75% prior year guidance)
• ROE: 20%+
• CASA ratio: ~50%
• RAM/Corporate split: 60:40 (±2%)
• GNPA: <2%
• NNPA: <0.25%
• Slippage ratio: <1%
• Credit cost: ~1%
• PCR: 98%
• CRAR: 18%
• Cost-to-income: <40%
• Non-interest income growth: 10%
• Write-off recovery: ₹1,200-1,500 crores annually for next 5 years
• Gift City: $1 billion book in 12 months with profitability

The Q&A session revealed strong analyst confidence in Bank of Maharashtra's execution capabilities, with questions focused on forward-looking risks rather than current performance concerns. Analysts probed the West Asia geopolitical crisis impact, with management providing measured responses acknowledging uncertainty while emphasizing current portfolio health and monitoring mechanisms. Tax rate normalization emerged as a key modeling concern, with CFO clarifying the shift from 10% to 18-20% effective rate on PBT for FY27. The fee income underperformance drew attention, but management successfully explained the one-time RRB provision impact and outlined corrective measures. Gold loan book decline was satisfactorily explained as temporary due to regulatory model transition. The Maharashtra farm loan waiver discussion was notably positive, with management framing it as asset quality improvement catalyst rather than a concern. Analysts also focused on technical aspects like AFS mark-to-mark movements, overseas book growth in Gift City, and CGTMSE coverage (₹9,800 crores). Overall, management demonstrated deep operational knowledge, providing specific quantitative responses and maintaining confidence despite acknowledging external uncertainties. The fact that management has delivered on all guidance parameters for two consecutive years significantly bolstered their credibility.