Bank of Maharashtra Total Business Hits ₹6.51 Lakh Cr; Loan Growth Surges 27%

Synopsis: A provisional business update from a Pune-headquartered public sector bank shows total business crossing Rs. 6.51 lakh crore in the June quarter, with advances growing more than twice as fast as deposits, a gap that is good for growth but worth watching for what it implies about funding cost and balance sheet leverage ahead of full results.

Shares of a public sector lender came into focus after the bank furnished provisional business figures for the quarter ended June 30, 2026, ahead of its full Q1 FY27 results. The disclosure, filed under SEBI’s insider trading fair disclosure code, covers only deposits and advances at this stage, with profit, margins and asset quality numbers to follow separately.

With a market capitalisation of roughly Rs. 68,347.16 crore, the shares of Bank of Maharashtra were last trading near Rs. 88.87 apiece, trading at a P/E of approximately 9.70 based on FY26 earnings per share of Rs. 9.12. 

Q1 FY27 Business Update

Total business rose 19 percent year-on-year to Rs. 6.51 lakh crore as of June 30, 2026, from Rs. 5.46 lakh crore a year earlier. Total deposits grew 13 percent to Rs. 3.44 lakh crore, while global advances grew considerably faster at 27 percent to Rs. 3.06 lakh crore. Within advances, RAM (retail, agriculture and MSME) advances rose 25 percent to Rs. 1.87 lakh crore, and domestic corporate advances rose 21 percent to Rs. 1.11 lakh crore. The one figure moving in the wrong direction is the CASA ratio, which slipped from 50 percent to 49 percent year-on-year. All figures are explicitly provisional and subject to review.

The headline number that matters most here is not any single growth rate but the gap between two of them. Advances grew 27 percent while deposits grew only 13 percent, which means the credit-to-deposit ratio has moved from roughly 79 percent a year ago to nearly 89 percent now. That is a meaningful jump for a bank in a single year, and it typically means one of two things: the bank is either drawing down excess liquidity built up in prior quarters, or it is leaning more on borrowings and short-term wholesale funding to bridge the gap. Either way, a CD ratio approaching 90 percent leaves less room to keep growing advances at this pace without deposits catching up, unless the bank raises more expensive funding or slows lending growth in the coming quarters.

The CASA slip reinforces this reading. A one-point drop from 50 percent to 49 percent sounds minor, but CASA deposits are the cheapest source of funding a bank has, and a falling CASA ratio alongside above-average deposit growth suggests more of that growth is coming from higher-cost term deposits rather than current and savings accounts. Combined with rising advances funded partly by that costlier deposit mix, this is worth watching for what it does to net interest margin when the full results land, a metric this provisional filing does not disclose.

On the positive side, the mix of advances growth is granular rather than concentrated. RAM advances, which are typically smaller-ticket and more diversified across borrowers, grew 25 percent and now make up about 61 percent of the total loan book. Domestic corporate advances grew a healthy 21 percent as well, suggesting the bank is not simply chasing volume in one segment while starving the other. Historically, this bank’s asset quality has also been improving steadily gross NPA has fallen from 2.94 percent to 1.60 percent and net NPA from 0.47 percent to 0.15 percent over the preceding three years per its last reported quarterly trend so the growth acceleration is arriving from a cleaner starting base than it would have a few years ago, even though this particular update doesn’t carry fresh asset-quality figures.

Two other data points matter for how this growth gets funded going forward. The bank’s board and shareholders approved an equity capital raise of up to Rs. 7,500 crore at the June 30 annual general meeting, which should ease some of the funding pressure implied by the rising CD ratio once executed, though it will also mean fresh dilution for existing shareholders depending on how it is priced and structured.

Separately, promoters holding the Government of India’s stake now stands at 73.6 percent, comfortably within SEBI’s minimum public shareholding norm, removing an overhang that weighed on several PSU bank stocks until recently. FII holding has also climbed sharply, from 1.72 percent in March 2025 to 5.55 percent in March 2026, a sign of growing institutional interest even as the stock’s valuation has re-rated well above where PSU banks traded through much of the last decade.

Business Overview

Bank of Maharashtra, incorporated in 1935 and headquartered in Pune, is a public sector bank offering retail, corporate and treasury banking services through a network of over 2,600 branches. For FY26, the bank’s standalone net profit rose to Rs. 7,017 crore on revenue of Rs. 29,282 crore, with return on equity at 23.19 percent, among the stronger profitability profiles in the PSU banking space.

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