Bank of Maharashtra

Bank of Maharashtra reported strong Q2 FY27 results, with business growth of 25% YoY, driven by a 30% increase in advances. Credit growth was 23% YoY, with significant contributions from the IBU (GIFT City) and domestic large credit segments. Deposits grew 22% YoY, with CASA increasing 12% YoY. GNPA reduced by 47 bps to 1.25%, and provision coverage ratio stood at 98.53%. Operating profit grew 31% YoY, net profit 41%, and ROE improved by 440 bps to 27%. NIM improved by 12 bps to 3.97%, and capital adequacy remained healthy (CET1: 15.61%, CRAR: 18.51%). Management highlighted robust credit pipelines, including INR23,000 crores in proposals, and emphasized profitable growth strategies, including branch expansion and digital preparedness. Provisions for NPAs decreased due to high coverage ratios and recoveries, while ECL provisioning was addressed with INR750 crores already allocated. The bank also discussed recovery efforts from written-off accounts, targeting INR1,300-1,500 crores annually. Management noted no significant stress from droughts in Maharashtra, with agri growth driven by secured gold loans. The bank is preparing for digital challenges, including the DPDP Act, with IT budgets allocated for cybersecurity. The discussion concluded with management reaffirming commitment to guidance and thanking participants.

The document highlights strong financial performance, growth in key metrics, and positive outlook on credit and recovery efforts.