Bank of Maharashtra Shares Post Strong Quarterly Growth, Surging Nearly 6 Percent

Bank of Maharashtra Shares Surge 6% on Strong Q4 Earnings

Shares of state-run Bank of Maharashtra continued their upward momentum on Tuesday, extending gains of nearly 6% after the lender reported robust March quarter earnings.

According to the latest National Stock Exchange (NSE) data, the stock rose 5.79% to Rs 79.90 in Tuesday's trading session. This gain follows Monday's strong performance, where the stock closed at Rs 75.54, up 3.86% from the prior close of Rs 72.73.

The bank's financial performance for Q4 FY26 was impressive, with a 15% year-on-year rise in net profit to Rs 2,014 crore, compared to Rs 1,493 crore in the same quarter last year. Net Interest Income (NII), or core income, also rose 19% to Rs 3,702.5 crore from Rs 3,116.4 crore a year ago.

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Bank of Maharashtra's Managing Director and CEO, Nidhu Saxena, expressed confidence in the lender's ability to maintain profit growth going forward. Saxena highlighted that the bank has not seen any rise in Non-Performing Assets (NPAs) in the Micro, Small and Medium Enterprises (MSME) segment, although it is closely monitoring vulnerable pockets and some stress could emerge in coming quarters.

The bank is also cautious about crude prices, with Saxena stating that oil above $100 per barrel would be a cause for concern. However, Saxena noted that the Pradhan Mantri Fasal Bima Yojana (PMFBY) could help reduce risks in the agriculture segment. The bank expects its net NPA to remain below 0.25%.

HDFC Securities has assigned a 'Buy' rating on the stock with a target price of Rs 90, citing strong earnings supported by around 22% year-on-year loan growth. The brokerage also noted that the Current Account Savings Account (CASA) ratio improved to around 52.5%, while deposit growth of nearly 14% year-on-year remained below advances growth. Risks in agriculture and MSME portfolios remain key monitorables.

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Note: This table presents a comparison of the brokerage rating and target price assigned to Bank of Maharashtra shares by HDFC Securities.