Bank Of Maharashtra Shares Pare Gains After Hitting 17-Month High
The shares of Bank of Maharashtra rose on Wednesday to hit a 17-month high after the bank announced its third quarter results. However, the shares later pared the gains to trade lower.
The state-owned bank posted a 26.5% rise in net profit to Rs 1,779 crore for the third quarter ended December 2025, driven by rising interest income. The bank’s total income increased to Rs 8,277 crore during the quarter under review from Rs 7,112 crore in the same period previous year.
Key Highlights Of Q3 Results
The bank’s interest income grew to Rs 7,344 crore during the quarter compared to Rs 6,325 crore a year ago. Net Interest Income (NII) grew 16% to Rs 3,422 crore in Q3FY26 as against Rs 2,943 crore in Q3FY25.
The bank’s board has approved an interim dividend of 10% on the equity shares of the bank, i.e., Rs 1 per share having a face value of Rs 10 each for the financial year 2025-26, according to Bank of Maharashtra Managing Director and CEO Nidhu Saxena.
Asset Quality Improves
The bank was able to reduce gross Non-Performing Assets (NPAs) to 1.60 per cent of gross loans by the end of December 2025 from 1.80% in the year-ago period. Similarly, net NPAs or bad loans came down to 0.15% from 0.2% at the end of the third quarter of the previous fiscal.
As a result, the bank’s provision and contingencies declined to Rs 728 crore as against Rs 841 crore in the same period a year ago.
Capital Adequacy Ratio And Net Interest Margin
However, the Capital Adequacy Ratio of the bank witnessed moderation at 17.06% as compared to 18.71% at the end of the third quarter of the previous year. At the same time, Net Interest Margin (NIM) of the bank too declined to 3.88% from 3.98% at the end of December 2024.
Share Price Movement
The scrip rose as much as 4.14% to Rs 67.74 apiece on Wednesday, the highest level since July 31, 2024. It later pared gains to trade 0.61% lower at Rs 64.65 apiece, as of 10:10 a.m. This compares to a 0.11% decline in the NSE Nifty 50 Index.
It has risen 22.83% in the last 12 months and 4.40% year-to-date. Total traded volume so far in the day stood at 24.77 times its 30-day average. The relative strength index was at 57.25.
Analyst Ratings And Price Targets
All three analysts tracking the company maintain a ‘buy’ rating according to Bloomberg data. The average 12-month consensus price target stands at Rs 77.33, indicating an upside of 19.7%.
For investors looking to invest in the Indian banking sector, it’s essential to keep an eye on the bank’s asset quality, capital adequacy ratio, and net interest margin. Investors can also explore other Nifty 50 stocks and Sensex stocks to diversify their portfolio.
Investment Strategies
Investors can consider a long-term perspective when investing in Bank of Maharashtra, given its improving asset quality and rising interest income. However, it’s crucial to keep an eye on the bank’s capital adequacy ratio and net interest margin, which have witnessed moderation.
For traders, it’s essential to keep an eye on the stock market trends and market news to make informed decisions. Investors can also explore technical analysis and fundamental analysis to identify potential trading opportunities.