MUMBAI: Bank of Maharashtra reported a net profit of Rs 2,023 crore in Q1FY27, up 27% from Rs 1,594 crore in the corresponding quarter a year earlier, driven by higher net interest income and non-interest income as loan growth lifted interest earnings while other income streams strengthened. The increase in net profit was driven by higher interest income from loan growth and improved non-interest income, supported by stable margins.The rise in profit reflected growth in the loan book, which increased interest income, even as deposit mobilisation and funding costs pushed up interest expenses. Interest income rose to Rs 8,035 crore from Rs 7,105 crore a year ago, while interest expenses increased to Rs 4,264 crore from Rs 3,762 crore, resulting in higher net interest income as income growth outpaced the rise in costs. Managing director and chief executive nidhu saxena said, “We have been mindful of how the margins are shaping up in every transaction, and with that consciousness we have built the book. We remain focused on ensuring that growth is aligned with maintaining healthy margins.”Non-interest income supported overall income growth, with other income rising to Rs 1,029 crore from Rs 825 crore, led by treasury income, fees and commissions, and recoveries.Operating performance improved as operating profit rose to Rs 3,118 crore from Rs 2,570 crore on higher total income, while operating expenses increased moderately, with employee costs rising on a year-on-year basis.Lower provisions supported profitability as provisions declined to Rs 840 crore from Rs 867 crore. Asset quality improved, with gross NPA ratio declining to 1.45% from 1.74%, and net NPA ratio falling to 0.13% from 0.18%.Profitability ratios strengthened, with return on assets improving to 1.90% from 1.70%, and operating margin rising to 34.4% from 31.9%.Balance sheet growth remained strong as deposits increased to Rs 34.45 lakh crore from Rs 30.50 lakh crore, while advances rose to Rs 30.19 lakh crore from Rs 23.73 lakh crore, supporting the rise in interest income.On deposit mobilisation, the bank is also looking at overseas opportunities. Saxena said, “We are already on track with mobilisation… We aspire to achieve a sizable mobilisation under the FCNR(B) window by September 30, and we are working towards maximising this opportunity.”On capital raising plans, saxena said, “The board has approved raising up to $500 million through bond issuances. We are evaluating this option carefully… At the appropriate time, and depending on pricing, we will look at tapping these markets.”On loans under a Govt-backed scheme, he said, “ECLGS has been a contributor to growth. Out of around Rs 3,500 crore of advances under the scheme, about Rs 3,100 crore is to MSMEs and Rs 400 crore to corporates.”
