Bank of Maharashtra shares climb over 6% on strong Q3 business updates

Shares of Bank of Maharashtra surged more than 6 percent during intraday trading on Friday, January 3, after the public sector lender reported robust updates for the December quarter (Q3 FY25). The bank's total business rose 16.9 percent year-on-year (Y-o-Y) to ₹5.08 lakh crore, compared to ₹4.34 lakh crore in the previous year.

Key Business Updates

In its Q3 FY25 update, the bank revealed a 21.19 percent Y-o-Y growth in gross advances, which reached ₹2,28,652 crore, up from ₹1,88,670 crore in Q3 FY24. Meanwhile, its current account savings account (CASA) deposits increased by 11.5 percent Y-o-Y to ₹1,37,504 crore, compared to ₹1,23,322 crore in the same quarter of the previous year.

The lender's total deposits rose 13.54 percent Y-o-Y to ₹2,79,018 crore, up from ₹2,45,734 crore in Q3 FY24. Additionally, the credit-deposit ratio improved significantly, rising to 81.95 percent from 76.78 percent a year ago, indicating a healthy balance between the bank's lending and deposit growth.

Q2 FY25 Financial Performance

For the second quarter of FY25, Bank of Maharashtra had reported a 44.24 percent Y-o-Y increase in net profit, reaching ₹1,327 crore. Sequentially, net profit saw a 2.62 percent rise from ₹1,293 crore recorded in Q1 FY25.

The bank's net interest income (NII) also saw healthy growth, expanding 15.41 percent Y-o-Y to ₹2,807 crore in Q2 FY25, compared to ₹2,432 crore in Q2 FY24. Net interest margin (NIM) improved to 3.98 percent during the quarter, up from 3.89 percent in Q2 FY24. On a sequential basis, NIM increased marginally by one basis point from 3.97 percent in Q1 FY25.

Stock Price Performance

The bank's stock climbed as much as 6.2 percent to reach an intraday high of ₹56.09. Despite the rise, the stock remains 23 percent below its 52-week high of ₹73.50, which it hit in June 2024. Conversely, it has gained 24 percent from its 52-week low of ₹45.20, recorded in January 2024.

In the last year, Bank of Maharashtra shares have risen by more than 11 percent. Notably, the stock has added over 5 percent in the first three sessions of January 2025, recovering from an 8.5 percent decline in December 2024.

With strong business updates and consistent financial performance, Bank of Maharashtra continues to demonstrate resilience and growth potential. The improved credit-deposit ratio and steady CASA growth reflect its robust operational health, while the expansion in NII and NIM underscores its profitability metrics. The stock's recovery trajectory signals positive investor sentiment as the bank enters 2025 on a solid footing.