How has been the historical performance of Bank of Maha?

Revenue and Income Growth

Over the past six years, Bank of Maha's interest earned has surged impressively, rising from ₹10,850 crores in March 2019 to nearly ₹24,947 crores by March 2025. This growth reflects a robust expansion in the bank's core lending and investment activities. Income from investments has also increased steadily, contributing significantly to total interest income. The bank's interest on advances and bills, a critical revenue driver, more than tripled during this period, underscoring an expanding loan book and improved yield management.

Other income streams have shown a positive trend, with total income climbing from ₹12,397 crores in 2019 to ₹28,402 crores in 2025. This growth has been supported by a rising net interest income, which nearly tripled from ₹3,733 crores to ₹11,666 crores, indicating effective interest margin management despite competitive pressures.

Profitability and Expense Management

Bank of Maha's operating profit before provisions and contingencies has shown a steady rise, reaching ₹9,319 crores in March 2025 from ₹2,198 crores in March 2019. This improvement is a result of disciplined expense control and growing income. Total expenditure excluding depreciation has increased but at a controlled pace, with employee costs and other operating expenses rising in line with the bank's expansion.

Provisions and contingencies, a critical factor in banking profitability, have decreased significantly from ₹7,327 crores in 2019 to ₹3,597 crores in 2025, reflecting improved asset quality and risk management. Consequently, profit before tax has turned positive and grown substantially, from a loss of ₹5,129 crores in 2019 to a profit of ₹5,722 crores in 2025. After tax, the bank reported a profit of ₹5,520 crores in 2025, a remarkable recovery from a ₹4,784 crore loss six years prior.

Earnings per share have mirrored this recovery, rising from a negative ₹17.38 in 2019 to ₹7.18 in 2025, while the profit after tax margin improved to 22.13% in 2025 from a negative margin in 2019. Operating profit margins excluding other income have also strengthened, indicating efficient core operations.

Balance Sheet Expansion and Asset Quality

The bank's balance sheet has expanded significantly, with total assets growing from ₹1,68,867 crores in 2020 to ₹3,69,272 crores in 2025. Deposits have nearly doubled in the same period, reaching over ₹3,07,142 crores, reflecting strong customer confidence and deposit mobilisation. Advances have also grown robustly, more than doubling from ₹86,872 crores in 2020 to ₹2,36,084 crores in 2025, supporting the bank's income growth.

Importantly, asset quality has improved markedly. Gross non-performing assets (NPAs) have declined from ₹15,324 crores in 2019 to ₹4,185 crores in 2025, while net NPAs have dropped from ₹4,559 crores to ₹432 crores. Correspondingly, the percentage of net NPAs has fallen to a low 0.18% in 2025 from 5.52% in 2019, signalling effective credit risk management. The provision coverage ratio has also improved, exceeding 98% in recent years, providing a strong buffer against potential loan losses.

Capital Adequacy and Liquidity

Bank of Maha has strengthened its capital position, with total capital adequacy ratio rising to 20.53% in 2025 from 11.86% in 2019, well above regulatory requirements. Tier 1 capital ratio has similarly improved, supporting the bank's growth and risk absorption capacity. The bank's liquidity position remains robust, with cash and balances with the Reserve Bank of India increasing substantially to nearly ₹38,000 crores in 2025. The CASA (current and savings account) ratio has remained stable above 50%, indicating a healthy low-cost deposit base.

Cash Flow and Operational Efficiency

Cash flow from operations has shown positive trends, with net increases in cash and cash equivalents reaching ₹11,883 crores in 2025, up from ₹1,292 crores in 2020. The bank has maintained a steady increase in opening and closing cash balances, supporting its operational needs and liquidity management. This cash flow strength complements the bank's expanding business and capital base.

Overall, Bank of Maha's historical performance reflects a successful turnaround from losses and asset quality challenges to sustained profitability, strong capitalisation, and growth in core banking activities. The bank's strategic focus on improving asset quality, expanding its deposit base, and controlling costs has yielded tangible results, positioning it well for future growth in the competitive banking sector.

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