Bank of Maharashtra on Monday, April 20, reported a 35 per cent year-on-year rise in net profit to INR 2,014 crore for the January–March quarter of FY2025–26, supported by higher income and improved asset quality.

The Pune-based lender had posted a net profit of INR 1,493 crore in the corresponding quarter last year. The latest results reflect continued growth in core income and a steady improvement in key financial metrics. Stocks To Buy or Sell Today, April 20, 2026: HDFC Bank, Wipro, Jio Financial Services Among Shares That May Remain in Focus on Monday.

Income Growth Drives Performance

Total income for the quarter rose to INR 8,693 crore, compared with INR 7,711 crore a year earlier, according to a regulatory filing. Interest income also increased to INR 7,755 crore from INR 6,731 crore in the same period last year. The growth in income highlights stable lending activity and improved yield on assets during the quarter.

Asset Quality Shows Improvement

The bank reported a decline in gross non-performing assets (GNPAs) to 1.45 per cent of gross advances as of March 2026, down from 1.74 per cent a year ago.

Net NPAs also improved to 0.13 per cent from 0.18 per cent at the end of March 2025. Return on assets (ROA) rose to 1.86 per cent for the full year, compared with 1.75 per cent in the previous fiscal. However, the capital adequacy ratio declined to 18.36 per cent from 20.53 per cent, indicating reduced capital buffers despite strong earnings. Stock Market Today: Sensex, Nifty Slip in Early Trade as US-Iran Tensions Escalate in Strait of Hormuz.

Board Approves INR 20,000 Crore Fundraising Plan

Alongside the quarterly results, the bank’s board approved raising over INR 20,000 crore through a mix of equity and debt instruments in the upcoming financial year.

The lender plans to raise up to INR 7,500 crore through equity routes such as Qualified Institutional Placement (QIP), follow-on public offers, rights issues, or preferential allotments, including to the Government of India and Life Insurance Corporation of India. Additionally, the bank may issue Basel-III compliant Additional Tier-I and Tier-II bonds, subject to regulatory approvals.

Additional Capital Plans and Market Reaction

The board also cleared plans to issue long-term infrastructure bonds worth up to INR 10,000 crore in FY2027, along with foreign currency bonds of up to USD 500 million in multiple tranches.

The fundraising strategy follows the government’s move last year to reduce its stake in the bank via a QIP to meet minimum public shareholding norms. Shares of the bank rose about 2.8 per cent to INR 74.76 after the earnings announcement, reflecting positive market sentiment.

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