52 Week High Stock: After excellent results, the stock of this public sector bank reached its highest level of the year, and even today it registered a rise.

News Topical, Digital Desk :  Shares of public sector bank Bank of Maharashtra rose nearly 6.5% to reach a 52-week high of ₹80.43 on Tuesday, April 21. The strong growth guidance provided by bank management for the financial year 2027 (FY27) is believed to be the main reason behind this surge.

Following the fourth-quarter results, bank management assured investors that business will remain strong in the coming years. Management expects overall business growth to be between 16% and 17%, with advance growth expected to be 18% and deposit growth expected to be between 14% and 15%.

Strong earnings and margin projections: The bank has projected 15% year-on-year growth in core earnings, i.e., net interest income (NII). The target is to maintain net interest margin (NIM) at 3.75%, while non-interest income growth is possible by 10%. The cost-to-income ratio is targeted to be below 40%. 

Focus on returns and business mix: Management has projected return on assets (RoA) of 1.8% and return on equity (RoE) of 20% or more. CASA growth is expected to be around 5%, while retail, agriculture, and MSME (RAM) segments are projected to grow by 18%. The bank plans to maintain a ratio of RAM and corporate portfolios around 60:40. 

Asset quality is expected to remain strong.
On the asset quality front, the bank expressed confidence that gross NPAs will remain within 2% and net NPAs within 0.2%. Slippage is expected to be less than 1%, credit costs around 1%, and the provision coverage ratio at 98%. Additionally, CRAR is planned to be maintained at 18%. Management clarified that growth will not be pursued at the expense of credit quality, and that deposit mobilization and fee income will be the primary focus in FY27.

Fundraising plans:
The bank plans to raise ₹7,500 crore through equity and bonds to increase capital. It is also preparing to issue foreign currency bonds worth up to $500 million and infrastructure bonds worth up to ₹10,000 crore.

Q4 results were also strong.
Bank of Maharashtra reported a 15% increase in net profit to ₹2,014 crore in its fourth quarter results released on Monday. NII increased by 19% to ₹3,702.5 crore. Asset quality continued to improve, with gross NPAs declining to 1.45% and net NPAs falling to 0.13%.

Dividend announcement
The bank has recommended a dividend of ₹1.2 per share for FY26, subject to approval at the AGM. An interim dividend of ₹1 per share was previously announced in January 2026.

Investor confidence strengthened
The bank's stock has risen by nearly 28% in the past month, further strengthening investor confidence. Due to strong fundamentals and aggressive growth plans, the market will continue to closely monitor the bank's performance in the coming times.

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