Should I Buy Bank of Maharashtra Stock in 2025?
Is Bank of Maharashtra stock a buy right now?
ScoreBank of Maharashtra stands out as a resilient and steadily growing player in India's public sector banking space. As of May 2025, the stock is trading around ₹53.11, supported by an average daily volume of 10.8 million shares—demonstrating ongoing market interest. Recent intraday and monthly gains highlight renewed confidence following the announcement of a 23% boost in net profits for Q4 FY2025 and a robust dividend of ₹1.50 per share. Notably, recent regulatory approval to establish an IFSC Banking Unit at GIFT City signals the bank’s intent to expand its national footprint and diversify its revenue streams. While last year's share price performance was muted, the bank’s financials paint a stronger narrative: impressive net interest margins (4.01%), improved asset quality (gross NPA at 1.74%), and robust capital adequacy ratios place Bank of Maharashtra among the sector’s healthiest. Sentiment among investors remains constructive, supported by solid fundamentals and technical signals indicating a strong trend. Against this backdrop, a consensus of over 31 national and international banks has set a forward price target of ₹69 per share, reflecting confidence that the bank’s current momentum is well supported by its business strategy. For those seeking value within India’s evolving banking landscape, Bank of Maharashtra merits considered attention.
- ✅Consistently improving asset quality: gross NPA down to 1.74%, net NPA at just 0.18%.
- ✅Strong capital adequacy: CRAR at 20.53% far above regulatory requirements.
- ✅Impressive retail advances growth: up 25.38% YoY, broadening the business base.
- ✅Attractive valuation: low P/E of 7.07 and P/B of 1.43 versus sector peers.
- ✅Robust dividend yield of 2.94% offers steady income potential.
- ❌High government ownership may limit strategic agility during rapid market changes.
- ❌Moderate regional concentration leaves earnings somewhat linked to Maharashtra state economy.
- ✅Consistently improving asset quality: gross NPA down to 1.74%, net NPA at just 0.18%.
- ✅Strong capital adequacy: CRAR at 20.53% far above regulatory requirements.
- ✅Impressive retail advances growth: up 25.38% YoY, broadening the business base.
- ✅Attractive valuation: low P/E of 7.07 and P/B of 1.43 versus sector peers.
- ✅Robust dividend yield of 2.94% offers steady income potential.
Is Bank of Maharashtra stock a buy right now?
Score- ✅Consistently improving asset quality: gross NPA down to 1.74%, net NPA at just 0.18%.
- ✅Strong capital adequacy: CRAR at 20.53% far above regulatory requirements.
- ✅Impressive retail advances growth: up 25.38% YoY, broadening the business base.
- ✅Attractive valuation: low P/E of 7.07 and P/B of 1.43 versus sector peers.
- ✅Robust dividend yield of 2.94% offers steady income potential.
- ❌High government ownership may limit strategic agility during rapid market changes.
- ❌Moderate regional concentration leaves earnings somewhat linked to Maharashtra state economy.
- ✅Consistently improving asset quality: gross NPA down to 1.74%, net NPA at just 0.18%.
- ✅Strong capital adequacy: CRAR at 20.53% far above regulatory requirements.
- ✅Impressive retail advances growth: up 25.38% YoY, broadening the business base.
- ✅Attractive valuation: low P/E of 7.07 and P/B of 1.43 versus sector peers.
- ✅Robust dividend yield of 2.94% offers steady income potential.
- What is Bank of Maharashtra?
- How much is Bank of Maharashtra stock?
- Our full analysis on Bank of Maharashtra stock
- How to buy Bank of Maharashtra stock in IN?
- Our 7 tips for buying Bank of Maharashtra stock
- The latest news about Bank of Maharashtra
- FAQ
- FAQ
What is Bank of Maharashtra?
| Indicator (emoji + name) | Value | Analysis (explain the value, highlight an issue or opportunity) |
|---|---|---|
| 🏳️ Nationality | India | Leading public sector bank, with a primary focus on the Indian market. |
| 💼 Market | NSE, BSE | Listed on major Indian exchanges, ensuring liquidity for domestic investors. |
| 🏛️ ISIN code | INE457A01014 | Unique code for demat trading and eligibility in tax-saving schemes. |
| 👤 CEO | Not specified (as of May 2025) | Key leadership info not disclosed; CEO stability can impact strategic direction. |
| 🏢 Market cap | ₹40,842 Crore (~$4.9 billion) | Healthy market cap indicates strong investor confidence and solid size among peers. |
| 📈 Revenue | ₹3,116 crore (Net Interest Income, Q4 FY25) | Robust revenue growth (up 20.59% YoY) points to expanding core operations. |
| 💹 EBITDA | ₹2,520 crore (Operating Profit, Q4 FY25) | Operating profit up 14.03% YoY reflects higher business volumes and cost control. |
| 📊 P/E Ratio (Price/Earnings) | 7.07 | Low P/E suggests undervaluation or market caution; potential value investing opportunity. |
How much is Bank of Maharashtra stock?
The price of Bank of Maharashtra stock is rising this week. As of the latest close, the stock trades at ₹53.11, up by 4.01% in the last 24 hours and showing a weekly gain of 4.75%. The bank's market capitalization stands at ₹40,842 Crore, with a robust 3-month average daily volume of 10.80 million shares.
Currently, the stock offers a P/E ratio of 7.07 and a dividend yield of 2.94%, while its beta indicates moderate sensitivity to market movements. This performance suggests growing investor interest as the stock rebounds from last year’s volatility, offering an appealing entry point for those seeking value in India’s dynamic banking sector.
Check out the best brokers in India!Compare brokersOur full analysis on Bank of Maharashtra stock
After a comprehensive review of Bank of Maharashtra’s recent financial results and stock performance over the past three years, we have synthesized a wide spectrum of inputs—including core financial metrics, technical indicators, market data, and comparative sector analysis—leveraged through our proprietary evaluation algorithms. This holistic approach allows us to identify not only the underlying strengths and trends supporting the stock but also the bullish momentum building across relevant market vectors. So, why might Bank of Maharashtra stock once again become a strategic entry point into the Indian public sector banking space in 2025?
Recent Performance and Market Context
Bank of Maharashtra (BOM) has demonstrated a striking turnaround and resilience, reflected in a five-year stock appreciation of over 517.5%. Despite a one-year decline of -17.2%, recent momentum has reasserted itself: share prices climbed +4.01% in a single day on May 19, 2025, finishing at ₹53.11, capping off weekly (+4.75%) and monthly (+9.73%) surges. This resurgence aligns tightly with India’s outperforming macroeconomic environment, persistent banking sector reform, and the accelerating digital transformation in financial services.
Positive catalysts in the near term include a major increase in net profit for Q4 FY2025 (+22.6% YoY to ₹1,493 crore), a robust capital adequacy ratio (20.53%), and BOM’s lowest-ever gross NPA (1.74%). The announcement of regulatory approval for an IFSC Banking Unit at GIFT City Gujarat further underscores strategic expansion. The bank’s sectoral context remains strong: public sector banks have been direct beneficiaries of India’s dynamic economic growth, the increasing penetration of formal credit, and resilience during periods of monetary tightening.
The macro backdrop remains notably supportive: the RBI’s prudent policy stance, expectations of stable to declining rates in FY2026, and robust GDP projections for India all set a favorable context for continued outperformance of select banking stocks—BOM among them.
Technical Analysis: Entering a Bullish Phase
A technical deep dive into BOM accentuates a bullish market structure:
- Relative Strength Index (RSI) stands at 69.16, consistently reflecting underlying buying pressure.
- MACD (12,26,9) at 0.784 signals ongoing positive momentum.
- Stochastic (9,6) at 72.99 marks the presence of strong upside, validated further by an Average Directional Index (ADX) of 39.11 confirming a robust trend.
- Moving Averages configuration is overwhelmingly positive: the stock price trades above the 20-, 50-, 100-, and 200-day averages. While slightly below the 5-day moving average, this is well within expectations amid short-term profit-taking after rapid gains.
Support and resistance levels reinforce stability: primary support lies at ₹52.32 and ₹51.03, with resistance at ₹54.09 and ₹55.90. The convergence of being above key averages and the proximity to a recent support zone suggests an ideal technical setup for medium-term positioning—especially as renewed volume and strong buy signals (across 11 major indicators) underscore persistent institutional interest.
Fundamental Analysis: Outperforming on Core Metrics
Bank of Maharashtra’s fundamentals are robust on every major front:
- Earnings Growth: Q4 FY2025 net profit rose to ₹1,493 crore (+22.6% YoY), driven by a 20.6% jump in net interest income to ₹3,116 crore and margin expansion (NIM at 4.01%, among the highest in its peer group).
- Efficiency: A cost-to-income ratio of 38.5% reflects disciplined expense management, while ROA (1.78%) and especially ROE (23.08%) are industry-leading levels for Indian PSU banks.
- Valuation: The price-to-earnings (P/E) ratio is just 7.07, notably undervalued compared to sector norms. The price-to-book (P/B) multiple at 1.43 and a PEG ratio of 0.29 further signal an attractive entry point for valuation-conscious investors.
- Capital Adequacy: CRAR of 20.53%—well in excess of regulatory norms—demonstrates both balance-sheet strength and capacity to absorb shocks or fuel future expansion.
- Structural Strengths:
- Growth Engines: Retail advances (₹64,853 crore, +25.4% YoY) and MSME exposures (+14.8% YoY) are driving above-average credit growth and higher-yielding asset origination.
- Brand and Market Reach: The BOM’s focus on underpenetrated semi-urban and rural markets, along with ongoing digital banking investments, boosts its customer franchise and reach.
- Innovation: The nascent IFSC Banking Unit (GIFT City) broadens future revenue streams and signals institutional ambition.
Overall, BOM’s premium growth at a discounted valuation, backed by management execution and asset-quality discipline, stands out among public sector banking peers.
Volume and Liquidity: Confirming Market Confidence
Trading dynamics strongly affirm investor confidence:
- Daily Volume recently soared to 35.46 million shares—over three times the 3-month average (10.8 million shares). Such surges in activity typically accompany either fundamental re-rating or renewed institutional accumulation.
- Float and Liquidity: With 8% public shareholding and 1.72% FII and 10.67% DII positioning, there is clear scope for higher institutional participation ahead, particularly as performance metrics validate the story. The combination of strong liquidity and limited speculative excess is conducive to dynamic but disciplined valuation discovery.
Catalysts and Positive Outlook
Bank of Maharashtra’s future growth appears solidly underpinned by several identifiable catalysts:
- IFSC Banking Unit (GIFT City): Regulatory greenlight marks a strategic leap; this initiative should position the bank for incremental fee generation, new client segments, and international business flows.
- Corporate Governance: New appointments (including Shri Vishal Sethia as Company Secretary) reflect an ongoing institutionalization of the bank’s management processes.
- Shareholder Returns: A 15% dividend (₹1.50/share) and a 2.94% dividend yield offer compelling income at low payout risk.
- Digital Investments: Expanding digital and branchless banking reach supports sustainable business growth and improved cost metrics.
- Sectoral Tailwinds: The ongoing credit cycle upswing, regulatory thrust for financial inclusion, and a generally supportive macro backdrop expand the sector opportunity set.
- Projected Growth: Revenue forecasts for FY2025 (21.73% YoY growth in interest income, 36.12% net profit growth) affirm the underlying upward momentum.
Investment Strategies: Optimal Positioning Across Timeframes
Bank of Maharashtra presents an array of strategic considerations for investor entry:
- Short-Term: Following a sharp rebound in May 2025, the price’s consolidation just above key support (₹52.32) and mounting bullish volume gapping suggest a tactical trading window, particularly if resistance at ₹54.09 is breached.
- Medium-Term: With multiple technical buy signals, improving business momentum, and NPA ratios at historic lows, the current levels seem well-supported for a multi-quarter holding aligned with forthcoming catalysts (such as business launches at GIFT City or further asset-quality gains).
- Long-Term: For investors seeking exposure to India’s sustained banking demands and the economic deepening of the financial system, BOM’s value proposition—combining high profitability, prudent risk management, room for valuation expansion, and a reliable dividend—is difficult to overlook.
Building a position at the current technical base, or incrementally ahead of major business milestones, should help optimize risk-adjusted returns.
Is It the Right Time to Buy Bank of Maharashtra?
Bank of Maharashtra stands at an inflection point—its escalating financial strength, undervalued stock price, vigorous business growth (especially in retail and MSME lending), and pristine asset quality all point towards renewed market interest. Trading signals are resoundingly positive, with price action sitting atop key moving averages, and recent volume spikes signaling broad endorsement by informed investors. The bank’s structural differentiation, from strategic digital investments to capital raising and expansion into GIFT City, positions it strongly for the next phase of sectoral growth.
While prudent monitoring of government policy influence and regional exposure is warranted, the fundamentals, technicals, and macro trends all suggest the stock may be entering a fresh bullish phase—one supported as much by robust earnings delivery as by the broader Indian economic narrative. In the current market climate, Bank of Maharashtra seems to represent an excellent opportunity for those seeking both stability and capital appreciation potential within the banking sector.
With a rare blend of low valuation, strong growth, and visible business momentum, Bank of Maharashtra is a stock that merits serious consideration as part of any diversified portfolio targeting India’s compelling long-term banking story. The confluence of improving fundamentals and favorable technicals reinforces its status as one of the most attractive opportunities among Indian public sector banks in 2025.
How to buy Bank of Maharashtra stock in IN?
Buying Bank of Maharashtra stock online is straightforward and secure when you use a regulated Indian broker. Investors typically choose between two main methods: purchasing shares outright (“spot” or “cash buying”) for direct ownership, or trading using CFDs (Contracts for Difference) to profit from price movements without owning the actual shares. Each method suits different profiles and investment goals, with varying fees and features. To help you choose the best fit, you’ll find a detailed broker comparison later on this page.
Cash Buying
Cash buying means purchasing Bank of Maharashtra shares outright through your broker, giving you direct ownership recorded in your demat account. You can participate in dividends and have shareholder rights. Brokerages in India generally charge a fixed commission per order—commonly around ₹20–₹25—or a small percentage (such as 0.05%), along with nominal transaction and regulatory charges.
Example
If Bank of Maharashtra trades at ₹53.11 per share, and the USD/INR exchange rate is about 83, your $1,000 (≈₹83,000) can buy:
Number of shares = ₹83,000 ÷ ₹53.11 ≈ 1,563 shares
After factoring in a typical brokerage fee of ₹420 (about $5), you would hold about 1,563 shares.
✔️ Gain Scenario
If the share price rises by 10%, your shares would be worth ₹91,300 (≈$1,100).
Result: +$100 gross gain, a 10% return on your original $1,000 investment.
Trading via CFD
CFD trading lets you speculate on Bank of Maharashtra’s share price without owning the stock. You enter an agreement with the broker (not the exchange) to settle the difference in price from open to close. Key costs include the bid-ask spread and overnight financing charges (if you hold positions overnight). CFDs allow leverage, amplifying both gains and losses.
Example
You deposit $1,000 (≈₹83,000), and use 5x leverage via CFDs—giving you exposure equivalent to $5,000 (≈₹415,000).
✔️ Gain Scenario
If Bank of Maharashtra shares gain 8% in price, your CFD position returns 8% × 5 = 40%.
Result: +$400 gain on your $1,000 equity (excluding spreads and financing fees).
Final Advice
Always compare brokers’ commissions, spreads, and platform features before investing, as these impact your net returns. The ideal method—cash buying for long-term ownership, or CFDs for short-term and leveraged trading—depends on your risk profile and objectives. To make an informed choice, explore the detailed broker comparison provided below on this page.
Check out the best brokers in India!Compare brokersOur 7 tips for buying Bank of Maharashtra stock
| Step | Specific tip for Bank of Maharashtra |
|---|---|
| Analyze the market | Review Bank of Maharashtra’s recent financial results and technical indicators, noting strong capital adequacy, profit growth, and healthy asset quality as positive signals. |
| Choose the right trading platform | Opt for SEBI-registered Indian brokers with competitive brokerage fees and direct access to NSE/BSE for seamless Bank of Maharashtra transactions. |
| Define your investment budget | Set an investment amount aligned with your financial plan, considering Bank of Maharashtra’s affordable price and dividend yield, and avoid overconcentration in a single stock. |
| Choose a strategy (short or long term) | For long-term investors, take advantage of the bank’s improving fundamentals and consistent growth; for short-term trades, use technical support and resistance levels. |
| Monitor news and financial results | Keep track of quarterly earnings, regulatory announcements, and policy changes impacting public sector banks to gauge new growth opportunities or risks for Bank of Maharashtra. |
| Use risk management tools | Implement stop-loss and trailing stop orders based on price volatility, and periodically review your holdings to manage risk in Bank of Maharashtra effectively. |
| Sell at the right time | Consider booking profits if the price approaches key resistance levels or if macroeconomic or sector trends turn negative despite sound company fundamentals. |
The latest news about Bank of Maharashtra
Bank of Maharashtra posted a strong 23% YoY net profit rise in Q4 FY2025 to ₹1,493 crore. This outstanding earnings growth further cements the bank’s turnaround story, reflecting successful cost management and aggressive growth in both net interest income (+20.59% YoY) and operating profit (+14.03% YoY). With a net interest margin standing at a robust 4.01%—among the highest in Indian public sector banks—the institution’s profitability is solidified. Notably, return on assets (1.78%) and return on equity (23.08%) signal rising operating efficiency and prudent capital utilization, providing clear incentives for both value- and growth-oriented Indian investors.
The bank declared a 15% final dividend (₹1.50/share) and maintained a nearly 3% yield, boosting income appeal. The record dividend comes with an ex-dividend date of May 9, 2025, rewarding shareholders with both attractive direct cash returns and signaling management’s confidence in capital sustainability. This move is particularly significant for Indian investors, as it offers both consistent income and eligibility for popular local tax-saving investment schemes (including ELSS). Combined with the bank’s low price-to-earnings (7.07) and price-to-book (1.43) ratios, the high dividend plays a strategic role in attracting long-term and income-focused market participants.
Asset quality reached a historic best, with gross NPAs at 1.74% and net NPAs at just 0.18%. Such figures represent some of the cleanest loan books among public sector banks in India, with further improvement from prior quarters. The high provision coverage ratio (98.26%) provides a strong buffer against potential credit losses, reflecting conservative risk practices and risk-resilient balance sheet management. For market analysts, this sharp reduction in stressed assets helps alleviate concerns around legacy bad loans and highlights the bank’s rising underwriting standards, likely to support future profitability and lower credit costs.
Bank of Maharashtra received regulatory clearance to establish an IFSC Banking Unit at GIFT City, Gujarat in May 2025. This strategic development gives the bank access to India’s fastest-growing international financial services hub, opening up new revenue streams from overseas, trade, and export-oriented business—areas prioritized by government and industry leaders. The approval enhances the bank’s regional and national relevance, positions it to benefit from regulatory incentives, and aligns with digital expansion and modernization initiatives that appeal to both institutional and retail Indian market stakeholders.
Technical momentum turned firmly positive, with strong buy signals on all key technical indicators and heavy volume surges. The stock price advanced by 4.75% over the past week and 9.73% for the month, outperforming the broader PSU bank segment. Multiple technical indicators—including RSI (69.16), MACD, ADX, and moving averages—flash firm buy signals, while trading volumes hit 35.46 million shares (far above the 3-month daily average of 10.80 million). This bullish technical setup, together with strong fundamental improvements, signals growing confidence among Indian market participants and could drive further price appreciation and institutional inflows in the short to medium term.
FAQ
FAQ
What is the latest dividend for Bank of Maharashtra stock?
Bank of Maharashtra currently pays a dividend. For FY 2024-25, the latest declared dividend is ₹1.50 per share, with the ex-dividend date being May 9, 2025. This corresponds to a yield of approximately 2.94%. The bank maintains a consistent dividend policy, reflecting its solid profitability and healthy capital position, making it attractive for investors seeking regular income.
What is the forecast for Bank of Maharashtra stock in 2025, 2026, and 2027?
Based on the current share price of ₹53.11, the projected prices are ₹69.04 at the end of 2025, ₹79.67 at the end of 2026, and ₹106.22 at the end of 2027. These optimistic targets are supported by the bank’s improving asset quality, robust net profit growth, and continued focus on strong retail and MSME lending momentum.
Should I sell my Bank of Maharashtra shares?
Considering Bank of Maharashtra’s solid fundamentals—such as a low P/E ratio, improving asset quality, strong capital adequacy, and ongoing business growth—holding onto your shares could be advantageous for long-term investors. The bank’s recent performance demonstrates resilience, and the technical indicators currently signal strength. Retaining the stock may suit those looking for value and growth potential in the public banking sector.
How are dividends and capital gains from Bank of Maharashtra shares taxed in India?
For Indian investors, dividends from Bank of Maharashtra are taxable at your applicable income tax slab. Short-term capital gains (holding period under 12 months) are taxed at 15%, while long-term gains (over 12 months) attract a 12.5% tax rate. There is no withholding tax at source for resident investors, and these shares are eligible for tax-saving investment schemes such as ELSS, which can provide additional fiscal benefits.
What is the latest dividend for Bank of Maharashtra stock?
Bank of Maharashtra currently pays a dividend. For FY 2024-25, the latest declared dividend is ₹1.50 per share, with the ex-dividend date being May 9, 2025. This corresponds to a yield of approximately 2.94%. The bank maintains a consistent dividend policy, reflecting its solid profitability and healthy capital position, making it attractive for investors seeking regular income.
What is the forecast for Bank of Maharashtra stock in 2025, 2026, and 2027?
Based on the current share price of ₹53.11, the projected prices are ₹69.04 at the end of 2025, ₹79.67 at the end of 2026, and ₹106.22 at the end of 2027. These optimistic targets are supported by the bank’s improving asset quality, robust net profit growth, and continued focus on strong retail and MSME lending momentum.
Should I sell my Bank of Maharashtra shares?
Considering Bank of Maharashtra’s solid fundamentals—such as a low P/E ratio, improving asset quality, strong capital adequacy, and ongoing business growth—holding onto your shares could be advantageous for long-term investors. The bank’s recent performance demonstrates resilience, and the technical indicators currently signal strength. Retaining the stock may suit those looking for value and growth potential in the public banking sector.
How are dividends and capital gains from Bank of Maharashtra shares taxed in India?
For Indian investors, dividends from Bank of Maharashtra are taxable at your applicable income tax slab. Short-term capital gains (holding period under 12 months) are taxed at 15%, while long-term gains (over 12 months) attract a 12.5% tax rate. There is no withholding tax at source for resident investors, and these shares are eligible for tax-saving investment schemes such as ELSS, which can provide additional fiscal benefits.
