State-owned Bank of Maharashtra (BoM) has announced a significant surge in its financial performance for the second quarter of the fiscal year 2027 (Q2 FY27). The bank reported a 41.42% year-on-year (YoY) rise in net profit, reaching an impressive Rs 2,310 crore. This marks a substantial increase from Rs 1,633 crore recorded in the corresponding quarter of the previous fiscal year.
The positive earnings announcement on Monday led to an upward movement in BoM's shares, which had largely traded flat earlier in the session. The stock ultimately settled 1.06% higher at Rs 76.10, reflecting investor confidence in the bank's robust results.
Strong Growth Across Key Financial Metrics
BoM's financial report highlighted strong growth across several key indicators:
- Net Interest Income (NII): Increased by 21.76% YoY to Rs 3,954 crore in Q2 FY27, up from Rs 3,248 crore in the year-ago period. Sequentially, NII grew by 4.89%.
- Operating Profit: Rose 30.86% YoY to Rs 3,369 crore, compared to Rs 2,574 crore in Q2 FY26. Quarter-on-quarter, operating profit improved by 8.07%.
- Sequential Net Profit Growth: Beyond the annual increase, the bank's net profit also saw a 14.33% sequential rise from the preceding quarter.
Improved Efficiency and Asset Quality
The bank demonstrated enhanced operational efficiency and a healthier asset book:
- Cost-to-Income Ratio: Improved significantly to 33.73% in Q2 FY27, down from 37.10% in Q2 FY26 and 35.04% in the previous quarter.
- Return on Assets (RoA): Increased to 2.02% in the September quarter, an improvement from 1.82% in the corresponding period last year.
- Total Global Business: Expanded by 25.16% YoY, reaching Rs 7,05,766 crore as of September 30, 2026. This includes global deposits growing 21.50% to Rs 3,76,407 crore and gross global advances rising 29.61% to Rs 3,29,359 crore. Net advances saw a 30.16% YoY increase to Rs 3,25,641 crore.
Asset Quality Sees Significant Improvement
A notable highlight of the quarter was the substantial improvement in asset quality:
- Gross Non-Performing Assets (NPA) Ratio: Declined to 1.25% as of September 30, 2026, a significant reduction from 1.72% a year earlier and 1.45% as of June 30, 2026.
- Net NPA Ratio: Fell to a remarkably low 0.12% from 0.18% in the year-ago period and 0.13% in the preceding quarter, indicating a robust management of distressed assets.
These strong Q2 FY27 results underscore Bank of Maharashtra's consistent growth trajectory and its effective strategies in managing both income generation and asset quality.