Bank of Maharashtra (BoM) saw a notable surge in its share price on April 8, rising 5 percent to touch Rs 46 apiece following the release of a solid business update for the quarter ended March 2025. The public sector lender’s provisional data revealed strong growth in both deposits and advances, boosting investor sentiment after a long bearish phase.

Strong Year-on-Year Growth in Deposits

According to the bank’s update, total deposits climbed to Rs 3.07 lakh crore, marking a 13.4 percent year-on-year (YoY) increase. The data also highlighted a 10.1 percent rise on a sequential basis, i.e., compared to the December quarter of the same financial year.

This significant improvement in deposits is indicative of growing customer trust and increasing traction in BoM’s retail and institutional offerings. The surge not only outpaced several peer public sector banks but also underlined a strong end to the fiscal year for BoM.

Advances Growth Continues to Impress

The bank’s advances touched Rs 2.4 lakh crore, showcasing a 17.8 percent YoY growth—a clear reflection of BoM’s expanding loan book across retail, MSME, and corporate segments. Sequentially, advances grew by 5 percent compared to the December 2024 quarter.

Such robust credit growth during a period of tightening monetary conditions signals the bank’s ability to navigate market volatility and expand its lending base, particularly in priority and underserved sectors.

CASA Deposits and Ratio Jump Sharply

One of the most noteworthy metrics in the business update is the performance of Current Account and Savings Account (CASA) deposits. CASA deposits rose 14.6 percent YoY and an impressive 19 percent QoQ, taking the total CASA deposits to Rs 1.63 lakh crore.

The CASA ratio, a key indicator of low-cost funding for banks, improved to 53.3 percent in the March quarter. This was higher than the 52.7 percent CASA ratio in the same quarter of the previous year and a substantial jump from 49.3 percent in the December 2024 quarter.

This jump in CASA reflects the bank’s continued focus on improving its retail liability franchise, which not only reduces the cost of funds but also improves profitability and interest margins.

Credit-Deposit Ratio Reflects Stable Utilization

Another important metric highlighted was the credit-deposit ratio, which stood at 78.14 percent for the quarter. This marked an improvement over 75.22 percent in the corresponding quarter last year, although slightly lower than 81.95 percent in the October–December 2024 quarter.

This suggests that while the bank’s credit deployment is healthy, it also has sufficient deposit reserves to fuel further lending growth in the coming quarters.

Stock Performance: A Reversal Amidst Long-term Decline

Despite the current bullish sentiment, Bank of Maharashtra shares have faced a tough year, with the stock price having fallen nearly 34 percent over the past 12 months. The recent uptick comes after five consecutive months of losses, indicating a potential trend reversal, or at the very least, a temporary bounce supported by strong fundamentals.

Even within April, the stock was down 3 percent before the update, suggesting that investors may now be reassessing the bank’s long-term potential after the fresh quarterly update.

Momentum Rebuilding Despite Previous Underperformance

The April rally could mark the start of momentum rebuilding for the PSU bank. Market participants might be betting on continued growth in deposits, strong CASA metrics, and improving asset quality—factors that could aid in re-rating of the stock over the coming quarters.

However, whether this momentum sustains will depend on the bank’s performance in the coming full-year audited results, particularly on parameters like net interest margin (NIM), gross and net NPAs, and provision coverage ratio (PCR).

Conclusion: A Positive Signal for Investors and Stakeholders

The provisional business update from Bank of Maharashtra sends a strong signal to investors, analysts, and market participants. With double-digit growth in deposits and advances, an improving CASA ratio, and a stable credit-deposit mix, the bank seems to be on a path of gradual recovery and resurgence.

If this trend continues into the audited results and the bank maintains asset quality and profitability metrics, Bank of Maharashtra may regain investor trust and attract long-term capital, especially from retail investors looking for value in the public sector banking space.

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