Bank of Maharashtra (BoM) reported a net profit of Rs 2,023 crore for the first quarter of fiscal 2027 (Q1FY27), up 27% from Rs 1,594 crore in the year-ago period, according to the bank's financial statement published on July 10. The rise was driven by higher net interest income and non-interest income, even as interest expenses increased.
Profit Performance and Key Drivers
Net interest income expanded as interest income rose to Rs 8,035 crore from Rs 7,105 crore a year earlier, while interest expenses increased to Rs 4,264 crore from Rs 3,762 crore. The resulting net interest income growth outpaced cost increases, reflecting a conscious strategy around margin management. 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, rising to Rs 1,029 crore from Rs 825 crore, led by treasury income, fees and commissions, and recoveries. Operating profit improved to Rs 3,118 crore from Rs 2,570 crore, as total income rose while operating expenses increased only moderately — employee costs rose on a year-on-year basis. Provisions declined to Rs 840 crore from Rs 867 crore, further lifting bottom-line profitability.
| Metric | Q1FY27 | Q1FY26 | Change |
|---|---|---|---|
| Net Profit | Rs 2,023 cr | Rs 1,594 cr | +27% |
| Interest Income | Rs 8,035 cr | Rs 7,105 cr | +13.1% |
| Interest Expenses | Rs 4,264 cr | Rs 3,762 cr | +13.4% |
| Non-Interest Income | Rs 1,029 cr | Rs 825 cr | +24.7% |
| Operating Profit | Rs 3,118 cr | Rs 2,570 cr | +21.3% |
| Provisions | Rs 840 cr | Rs 867 cr | -3.1% |
| Gross NPA Ratio | 1.45% | 1.74% | -29 bps |
| Net NPA Ratio | 0.13% | 0.18% | -5 bps |
| Return on Assets | 1.90% | 1.70% | +20 bps |
| Operating Margin | 34.4% | 31.9% | +250 bps |
Balance Sheet Strength and Asset Quality
Balance sheet growth remained robust, with deposits increasing to Rs 34.45 lakh crore from Rs 30.50 lakh crore and advances rising to Rs 30.19 lakh crore from Rs 23.73 lakh crore. The expansion in the loan book directly boosted interest income. Asset quality improved significantly: the gross non-performing asset (NPA) ratio fell to 1.45% from 1.74%, and the net NPA ratio declined to 0.13% from 0.18%. The bank's profitability ratios strengthened, with return on assets improving to 1.90% from 1.70% and operating margin rising to 34.4% from 31.9%.
International Fundraising and FCNR Deposit Plans
On deposit mobilisation, the bank is 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.” FCNR(B) deposits — foreign currency non-resident (banking) deposits — are a key source of foreign currency funding for Indian banks, and BoM's push here could help manage its cost of capital while supporting trade finance activities.
The bank's board has also approved raising up to $500 million through bond issuances. 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.” This potential dollar-denominated bond issuance would provide the bank with additional foreign currency resources, relevant for financing imports and exports.
Trade Finance Implications
The bank's continued loan growth and asset quality improvement signal stable capacity to support corporate borrowers, including small and medium enterprises. On loans under the government-backed Emergency Credit Line Guarantee Scheme (ECLGS), Saxena noted, “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.” This highlights the bank's role in trade-related lending to MSMEs. The planned FCNR(B) mobilisation and potential $500 million bond issuance will augment the bank's foreign currency liquidity, which can be used to facilitate trade finance instruments such as letters of credit and foreign currency loans to exporters. The improvement in return on assets to 1.90% suggests the bank is deploying capital efficiently, which may translate into competitive pricing for trade finance products.
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