Move aside, SBI uncles — there’s a new PSU kid flexing its biceps. Bank of Maharashtra (BoM), with a ₹45,849 crore market cap and a stock price hovering near ₹59.6, has turned from a forgotten government bank into a dividend-paying beast with 23.8% ROE and 1.7% GNPA.
Quarterly revenue jumped to ₹7,128 crore, up 18.5% YoY, while profits hit ₹1,669 crore, up 25% YoY. The Net Interest Margin (NIM) climbed to 3.97%, and the Cost-to-Income ratio fell to 37.5% — a PSU banker’s dream after decades of Excel torture.
At a P/E of just 7.5x, with a dividend yield of 2.5%, and CASA at 52.7%, this Maharashtrian tiger has learned yoga — flexible, balanced, and occasionally roaring at private banks.
Once mocked as “SBI’s underpaid cousin,” BoM now runs a ₹3.7 lakh crore balance sheet, a network of 2,489 branches, and a clean book that would make even HDFC Bank nod in respect.
Let’s decode how this phoenix of Pune went from recapitalization memes to profitability dreams.
2. Introduction
For years, public sector banks were India’s version of slow-moving soap operas — long-running, dramatic, and full of recapitalization episodes. But somewhere between demonetization and digitization, Bank of Maharashtra decided it was done being background music.
Founded in 1935 (yes, pre-independence!), BoM was once the “common man’s bank” in Maharashtra. Then came decades of NPAs, bureaucracy, and management transfers that made the HR files thicker than the loan files.
But around FY20, something changed — new leadership, digital push, and a little bit of RBI tough love. Fast forward to FY24–25, and this PSU has turned into a turnaround case study.
ROE tripled from 11.5% in FY22 to 23.8% in FY24.
Gross NPA collapsed from 3.94% to 1.88%.
Net NPA nearly vanished to 0.20%.
Profit jumped from ₹2,605 Cr in FY23 to ₹6,087 Cr in FY25.
It’s like watching your lazy cousin suddenly win a marathon.
Question for the audience: Is BoM’s rally a genuine transformation or just the PSU bull run after-effect?
3. Business Model – WTF Do They Even Do?
Bank of Maharashtra follows the age-old PSU formula: take deposits from aunties, lend to everyone (except startups), and survive on government guarantees.
But here’s where it’s evolved:
a) Retail Banking (39%) – Housing, personal, gold, and vehicle loans — the real bread and butter. The retail share jumped from 35% in FY22 to 39% in FY24.
b) Corporate / Wholesale Banking (36%) – The bank lends to corporates who can actually repay. Radical concept, right?
c) Treasury (21%) – Investments in government securities and bonds. Basically, BoM’s comfort zone.
d) Other Banking Ops (4%) – Miscellaneous fees, locker charges, and good old “service charges for not maintaining balance.”
The secret sauce? A healthy RAM (Retail, Agri, MSME) mix now at 61%. This diversified lending ensures one corporate scam doesn’t take the entire balance sheet down.
And with 2,489 branches, half of them outside Maharashtra, BoM’s reach is spreading faster than a UPI QR code at a chai tapri.
4. Financials Overview
Metric
Latest Qtr (Q2FY26)
YoY Qtr (Q2FY25)
Prev Qtr (Q1FY26)
YoY %
QoQ %
Revenue (₹ Cr)
7,128
6,017
7,054
18.5%
1.0%
Operating Profit (₹ Cr)
973
588
878
65.5%
10.8%
PAT (₹ Cr)
1,669
1,333
1,504
25.2%
11.0%
EPS (₹)
2.17
1.88
1.96
15.4%
10.7%
BoM has gone from a government liability to a profit machine. EPS of ₹7.91 (FY25 TTM) implies that even with a sleepy PSU multiple of 7.5x, the market now respects the consistency.
5. Valuation Discussion – Fair Value Range
Let’s do the boring math in an exciting way.
Method 1: P/E Approach
EPS (TTM): ₹7.91 Industry Average P/E: 8x (Public Banks) Fair Value = 7.91 × 8 → ₹63 Bull case = 7.91 × 10 → ₹79 ✅ Fair range = ₹63–₹79 per share
Method 2: P/BV Method
Book Value: ₹40.8 Historical range for PSU banks = 1.2x–2.0x Fair Range = ₹49–₹82
Method 3: DCF (Discounted Cash Flow)
Assume profit CAGR 20%, cost of equity 12%, terminal growth 4%. DCF spits out ₹68–₹75.
📊 Fair Value Educational Range: ₹63–₹80 per share. (Disclaimer: For educational purposes only. This is not investment advice — we’re teachers, not SEBI-registered astrologers.)
6. What’s Cooking – News, Triggers, Drama
The last few quarters have been spicier than a Nagpur misal:
IFSC License: BoM got the green light to open a banking unit at GIFT City, Gujarat, joining India’s elite club of “internationally aspirational” PSUs.
Fundraising Mode: Approved plans to raise ₹7,500 crore in equity
