Robust expansion in retail, MSME and corporate lending, coupled with healthy deposit growth, strengthens the public sector lender's growth trajectory

Bank of Maharashtra (BoM) has kicked off FY27 on a strong note, reporting broad-based growth across its lending and deposit businesses during the April-June quarter. The Pune-headquartered public sector lender recorded a 27% year-on-year increase in gross advances, while its total business crossed the ₹6.5 trillion milestone for the first time, reflecting sustained momentum in credit demand and customer acquisition.

The quarterly business update highlights the bank's continued focus on expanding its retail and MSME franchise, strengthening corporate lending, and maintaining a healthy deposit base despite intense competition in the banking sector.

Loan Book Expands to ₹3.06 Trillion

Bank of Maharashtra's gross advances rose to ₹3.06 trillion as of June 30, 2026, compared with ₹2.41 trillion in the corresponding quarter of the previous financial year. The 27% annual growth significantly outpaced the overall banking industry's average credit expansion, underscoring the lender's aggressive yet diversified lending strategy.

The rise in advances was supported by higher demand across retail loans, agricultural financing, MSME credit and corporate borrowing, enabling the bank to strengthen its presence across multiple customer segments.

Retail, Agriculture and MSME Portfolio Continues to Lead

The bank's Retail, Agriculture and MSME (RAM) portfolio remained the key driver of credit growth during the quarter.

Loans under these segments increased 25% year-on-year to ₹1.87 trillion, reflecting strong demand for home loans, vehicle loans, personal loans, agricultural finance and credit extended to small and medium enterprises.

The continued expansion of the RAM portfolio aligns with the government's emphasis on financial inclusion and support for India's growing MSME ecosystem, which remains a critical contributor to employment and economic growth.

Corporate Lending Crosses the ₹1 Trillion Milestone

Corporate lending also witnessed healthy growth during the quarter.

The bank's corporate loan portfolio increased 21% year-on-year to ₹1.11 trillion, crossing the ₹1 trillion mark for the first time.

The increase suggests improving capital expenditure activity, higher working capital requirements and renewed borrowing by businesses across manufacturing, infrastructure, services and other sectors.

A balanced mix of retail and corporate lending helps diversify the bank's credit exposure while supporting sustainable business expansion.

Deposits Grow 13%, Providing Strong Funding Support

On the liability side, total deposits rose 13% year-on-year to ₹3.44 trillion, compared with ₹3.05 trillion in the year-ago period.

The steady increase in deposits demonstrates continued customer confidence in the bank and provides a stable funding base for future loan growth.

A healthy deposit franchise also enables the lender to manage liquidity efficiently while supporting profitability in a competitive interest-rate environment.

Total Business Surpasses ₹6.5 Trillion

With healthy growth in both advances and deposits, Bank of Maharashtra's total business climbed 19% year-on-year to ₹6.51 trillion, compared with ₹5.46 trillion recorded a year earlier.

Crossing the ₹6.5 trillion milestone marks an important achievement for the bank as it continues to expand its nationwide presence and strengthen its balance sheet.

The consistent increase in business volumes reflects disciplined execution, expanding customer relationships and growing demand across retail and corporate banking.

CASA Ratio Remains Among the Strongest

The bank reported a Current Account Savings Account (CASA) ratio of 49% at the end of the June quarter, marginally lower than 50% recorded in the same period last year.

Although there was a slight decline, the CASA ratio remains among the strongest in the public sector banking space, helping the bank maintain access to low-cost deposits and supporting its net interest margins.

A high CASA ratio is considered an important indicator of a bank's operational efficiency and funding strength.

Positive Signals for Investors

The strong business update indicates that Bank of Maharashtra has entered FY27 with solid operational momentum.

Healthy growth across retail, MSME and corporate lending, coupled with steady deposit mobilisation, positions the lender well for sustained earnings growth. Investors will now closely monitor the bank's upcoming quarterly financial results for key indicators such as net interest income (NII), net profit, asset quality, net interest margin (NIM), and provisioning trends.

If the bank maintains disciplined credit growth while keeping non-performing assets under control, it could continue to strengthen its competitive position among India's public sector banks.

Key Highlights

• Gross Advances: ₹3.06 trillion (▲27% YoY)

• Retail, Agriculture & MSME Loans: ₹1.87 trillion (▲25% YoY)

• Corporate Loan Book: ₹1.11 trillion (▲21% YoY)

• Total Deposits: ₹3.44 trillion (▲13% YoY)

• Total Business: ₹6.51 trillion (▲19% YoY)

• CASA Ratio: 49% (vs 50% a year ago)