Bank of Maharashtra Shares Jump 5% After Strong Q4 Business Update

Bank of Maharashtra’s stock surged 5% to ₹46 per share on April 8, following the release of its business update for the January-March quarter. According to provisional data, the bank’s total deposits rose 13.4% year-on-year (YoY) to ₹3.07 lakh crore. Sequentially, deposits increased by 10.1% compared to the previous quarter.

The bank’s advances stood at ₹2.4 lakh crore, registering a YoY growth of 17.8% and a 5% rise over the December quarter, reflecting robust credit momentum.

CASA Performance Boosts Low-Cost Funding

The lender reported strong growth in Current Account and Savings Account (CASA) deposits, which rose 14.6% YoY and surged 19% quarter-on-quarter to ₹1.63 lakh crore. The CASA ratio—a critical indicator of low-cost deposit strength—stood at 53.3%. This marks an improvement over 52.7% recorded in the same quarter last year and a significant jump from 49.3% in Q3 FY24.

Credit-Deposit Ratio Sees Mixed Movement

The bank’s credit-deposit ratio for the March quarter was reported at 78.14%. While this is higher than the 75.22% reported in the corresponding period last year, it marks a decline from 81.95% in the previous quarter. Nonetheless, the data underscores continued business momentum and expanding asset base for the bank.

Stock Performance

Despite Today’s uptick, shares of Bank of Maharashtra remain under pressure, having declined nearly 34% over the past 12 months.

The recent rally comes after five straight months of losses. Even within April so far, the stock has slipped by 3%, indicating that investor sentiment is still stabilising.

Conclusion 

The Bank of Maharashtra’s Q4 update highlights solid growth in deposits, advances, and low-cost CASA funding, reflecting ongoing business momentum. While the improved metrics sparked a short-term stock rally, long-term investor sentiment remains cautious due to the stock’s year-long decline.

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