Bank of Maharashtra’s provisional Q1 FY2027 business rises 19% YoY

Bank of Maharashtra, on 6 July 2026, released its provisional business figures for the quarter ended 30 June 2026 (Q1 FY2027). Total business — deposits plus advances — touched ₹6.51 lakh crore, a 19% increase over the same quarter last year . Global advances (all loans, domestic and overseas) surged 27% to ₹3.06 lakh crore, while total deposits grew by a more moderate 13% to ₹3.44 lakh crore. The share of low-cost current and savings account (CASA) deposits — the cheapest source of funds for a bank — edged down to 49% from 50% a year ago .

A snapshot of the bank

Bank of Maharashtra is a government-owned bank. It earns primarily from lending — home loans, vehicle loans, and loans to micro, small and medium enterprises (MSMEs) — and from fee-based services such as digital banking, FasTAG toll payments, and other transaction services. It serves corporate, retail and MSME customers and has recently launched a fully digital working-capital loan product and a new mobile banking app, “Zen Lyfe.”

The provisional Q1 numbers in detail

The bank shared a limited set of business metrics in its stock-exchange filing. The table below places the provisional June 2026 data alongside the reviewed June 2025 figures.

CASA ratio = proportion of total deposits coming from low-cost current and savings accounts. A higher ratio means cheaper funding for the bank.
RAM = Retail, Agriculture and MSME loans — a key segment that tends to carry higher yields.
Source: Bank of Maharashtra SEBI filing dated 06 July 2026; figures rounded off.

Advances growth of 27% outpaced deposit growth of 13%, and the CASA ratio dipped one percentage point year-on-year. Compared with the 52.51% CASA ratio reported as of 31 March 2026, the June 2026 figure represents a more marked decline .

How these numbers fit with recent trends

The 27% jump in advances marks an acceleration from the 22% loan growth recorded for the full fiscal year ended March 2026 (FY2025‑26) . Total deposits at the end of FY2025‑26 stood at ₹3,50,564 crore, with a CASA ratio of 52.51%; CASA deposits had grown 12.48% to ₹1,84,087 crore .

Management had already signalled a stronger deposit focus for the current year. The bank’s FY2025‑26 annual report notes:

> “the coming year will see a sharper focus on strengthening our deposit franchise, with FY2026‑27 designated as the ‘Year of Deposits’ to further improve retail participation and liquidity resilience”
>
> —Directors’ Report (Management Discussion and Analysis), Annual Report FY2025‑26 .

The provisional Q1 CASA ratio of 49% sits well below the full-year FY26 level. Whether that reflects a seasonal pattern or a more durable shift in deposit composition will only become clear when the detailed quarterly numbers are published.

On profitability, the annual report showed a net interest margin (NIM) — the difference between what a bank earns on loans and pays on deposits, expressed as a percentage of interest-earning assets — of 3.90% for FY2025‑26, down from 4.00% in FY2024‑25, as “elevated cost of funds and competitive deposit pricing exerted pressure on Net Interest Margins (NIMs) across the banking sector” . The cost of deposits (average interest rate the bank pays on deposits) improved to 4.52% from 4.66% a year earlier . However, the provisional business update contains no data on margins, earnings, or asset quality, so the impact of the strong loan expansion on Q1 profitability is not yet known.

What to watch

- Detailed Q1 FY2027 results: The full release will show net interest margin, cost of deposits, operating profit, and asset-quality trends — crucial for understanding whether the strong advances growth is translating into better returns.
- CASA trajectory: With the bank explicitly calling FY2026‑27 the “Year of Deposits,” the path of the CASA ratio in the coming quarters will be closely watched.
- Balance-sheet metrics: Once the full quarterly balance sheet is available, investors will be able to compute the price-to-book multiple and assess the bank’s capital adequacy alongside its growth.

This note is for informational purposes only and does not constitute investment advice.

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A snapshot of the bank

The provisional Q1 numbers in detail

How these numbers fit with recent trends

What to watch

Sources