Should I buy Bank of Maharashtra stock in 2025?

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At HelloSafe, our expert has been tracking the performance of Bank of Maharashtra for over three years. Every month, hundreds of thousands of users in India trust us to analyse market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by Bank of Maharashtra.

What is Bank of Maharashtra?

Bank of Maharashtra Stock Price

The price of Bank of Maharashtra stock is rising this week. As of now, the stock trades at ₹57.49, up by ₹0.30 (0.52%) over the last 24 hours and showing a weekly gain of 6.78%. With a market capitalization of ₹44,157 crores and an average three-month daily volume of 14.7 million shares, Bank of Maharashtra remains actively traded. The P/E ratio stands at 7.97, offering a dividend yield of 2.61%, and the stock’s beta is 1.21. Investors should note the strong recent momentum, but the stock’s moderate volatility may present both opportunities and risks in the current Indian market context.

Our full analysis of the Bank of Maharashtra stock

Having reviewed Bank of Maharashtra’s latest financial results and meticulously tracked its stock performance over the past three years, this analysis combines proprietary algorithms with established financial and technical indicators, sectoral benchmarks, and comparative market intelligence. In light of consistently robust numbers, notable strategic advances, and our positive technical bias, the question naturally arises: Why might Bank of Maharashtra stock once again become a strategic entry point into Indian public sector banking in 2025?

Recent performance and market context

Bank of Maharashtra has demonstrated remarkable resilience and adaptability in the face of evolving market conditions. The stock has posted an impressive +268.5% gain over the past three years and +427.4% over the last five years, underlining its capacity to deliver outperformance even amidst a demanding sector landscape. While the past year recorded a modest pullback (-9.95%), this comes after a sustained rally and should be seen as a healthy consolidation phase.

Recent weeks have brought a turnaround, with the share price rebounding by +6.78% in one week and +4.28% over six months, currently trading at ₹57.49. The macroeconomic environment for Indian banks remains particularly favourable: GDP growth, rising credit demand, strong liquidity, and a government committed to financial sector reforms all combine to support continued outperformance among public sector banks. Furthermore, the sector’s improving asset quality and digitalisation focus position it as a compelling investment narrative for FY26.

Technical analysis

Technical signals for Bank of Maharashtra reinforce the case for optimistic upward momentum. Relative Strength Index (RSI) reads 62.6, indicating neither overbought nor oversold conditions—suggestive of further room for the rally to extend before facing any technical constraints. The MACD (now at 1.1, with a bullish crossover above the signal line) confirms this constructive setup.

Notably, the share price is trading above every major moving average, including the 5-day (₹57.4), 20-day (₹55.3), 50-day (₹53.2), 100-day (₹50.4), and 200-day (₹52.2) levels. This consistent alignment signals robust bullish momentum, while key support levels at ₹56.60 and ₹56.42 provide stability for new buyers. Momentum indicators and elevated trading volumes point to a structure conducive to both short-term trading and medium-term positioning, with clear resistance targets (₹58.06, ₹58.66) in sight.

Fundamental analysis

Bank of Maharashtra’s fundamentals shine across multiple axes. FY25 net profit soared by 36.1% YoY to ₹5,542 crores, with annual revenues up 21.7% to ₹24,948 crores, powered by a combination of rising loan book, improved margins, and cost controls. EPS strengthened to ₹7.21, and the bank continues to deliver sector-beating asset quality: gross NPAs fell to 1.74%, while net NPAs improved to a low of 0.18%. Both metrics signify strong underwriting discipline and prudent risk management.

On valuation, the stock is strikingly attractive. The P/E of 7.97 and price-to-book at 1.53 stand at a discount to sector growth peers, presenting a margin of safety likely to draw new inflows—especially given an above-trend ROE of 22.8%. A steady dividend history (2.61% yield) further supports investor confidence.

Structurally, Bank of Maharashtra’s successful transition towards retail and corporate banking (alongside treasury realignment), growing digital presence, and a rapidly expanding CASA ratio (now at 50.07%) are fundamental levers for continued earnings growth. The bank’s strong brand recognition and prudent expansion underscore its robust competitive advantage.

Volume and liquidity

A key pillar reinforcing our constructive view is the stock’s consistent, high liquidity profile. With an average daily volume of 14.7 million shares and a solid traded value of ₹84.28 crores, Bank of Maharashtra enjoys substantial market participation and trading depth, enabling both institutional and retail investors to enter and exit positions efficiently.

The sizeable free float (₹9,007 crores) encourages dynamic valuation movements, allowing for price discovery in response to news and results, while maintaining an efficient mechanism for capital allocation and new stake acquisition.

Catalysts and positive outlook

A variety of imminent catalysts signal ongoing upside potential:

• Strategic Expansion: RBI’s approval of a GIFT City branch unlocks important international and corporate banking opportunities.
• Capital Initiatives: Planned Qualified Institutional Placement (QIP) of ₹2,500 crores will further reduce government holding and increase private participation, a process that typically enhances market sentiment.
• Digital Transformation: Aggressive digital adoption and improved CASA metrics drive operating leverage.
• Leadership Refresh: The arrival of an experienced MD & CEO promises sharper execution and renewed strategic vision.
• Financial Strength: Declining NPA levels, healthy capital reserves, and double-digit business and deposit growth signal fundamental resilience.
• Peer Outperformance: By maintaining sector-leading profitability and superior asset quality, Bank of Maharashtra continues to stand out amidst intense competition.
• Continued Government Support: Ongoing structural reforms and growth incentives in the banking sector support sustained sector tailwinds.

Each of these elements underpins a positive expectation for both earnings growth and valuation re-rating in the upcoming quarters.

Investment strategies

For investors searching for compelling entry points, Bank of Maharashtra offers a range of strategic scenarios:

• Short-term: Elevated volatility and high trading volumes create lucrative swing trading opportunities, particularly when the stock nears key technical support at ₹56.60 or experiences momentum-driven breakouts above ₹58.06.
• Medium-term: For those willing to ride earning cycles and sector seasonality, current positioning above major moving averages—especially ahead of potential GIFT City business ramp-up and the QIP—suggests the potential for re-rating towards ₹70-₹74.
• Long-term: With a five-year CAGR in profits of 70%, deepening digital strategy, and proven asset quality gains, investors with a long-term orientation can capitalise on compounding returns, sector stability, and dividend income as government reforms entice further growth.

Optimal positioning is achieved either on pullbacks to strong technical support or in anticipation of fundamental catalysts such as Q2 results, government stake sale progress, or milestone business expansion announcements.

Is it the right time to buy Bank of Maharashtra?

The convergence of robust fundamentals, positive recent performance, bullish technical signals, and multiple structural catalysts creates a uniquely favourable set-up for investors. With the share price trading above all major moving averages, asset quality at multi-year bests, and a pipeline of expansionary projects, the stage is set for a potential new phase of outperformance.

An attractive valuation—bolstered by a P/E of 7.97, an ROE of 22.8%, and a growing dividend—justifies renewed investor attention, while the improving macro and supportive sector backdrop reinforce the bank’s upside prospects. Traders and investors alike may find that the present context represents an excellent opportunity to consider participating in one of India’s most resilient and well-managed public sector banking stories.

Bank of Maharashtra stands poised on the threshold of its next growth chapter, a stock worth serious consideration by those seeking both security and strategic sector exposure in the evolving Indian market.

How to buy Bank of Maharashtra stock in India?

Buying Bank of Maharashtra stock online is simple and secure when using a regulated broker in India. You can invest using two main methods: spot buying, where you become the direct owner of the shares, or trading via CFDs (Contracts for Difference), which lets you speculate on the share price without owning the stock. Both approaches offer quick access with robust security for your funds. To find the best rates and conditions, be sure to check out our detailed broker comparison further down the page.

Spot buying

A cash purchase of Bank of Maharashtra stock means buying and directly owning the company’s shares in your demat account. Typical fees include a fixed commission on each order—often between ₹20 and ₹50—charged by most brokers. This method is ideal for long-term investors who want to benefit from potential capital gains and dividend payments.

Bank of Maharashtra Share Gain Scenario

If the Bank of Maharashtra share price is ₹57.49, you can buy around 17 shares with a ₹1,000 stake, including a brokerage fee of around ₹40.

✔️ Gain scenario:

If the share price rises by 10%, your shares are now worth ₹1,100.

Result: +₹100 gross gain, i.e. +10% on your investment.

Trading via CFD

CFD trading on Bank of Maharashtra shares allows you to speculate on the share price without actually owning the stock. Instead, you enter into a contract with a broker and can use leverage. Fees usually include the spread (the difference between buy and sell prices) and overnight financing costs if you hold positions for more than a day. CFD trading offers greater flexibility and the possibility to profit from both rising and falling prices, but it also carries higher risk.

Gain scenario

You open a CFD position on Bank of Maharashtra shares, with 5x leverage.
This gives you a market exposure of ₹5,000 for a stake of ₹1,000.

If the stock rises by 8%, your position gains 8% × 5 = 40%.
Result: +₹400 gain, on a bet of ₹1,000 (excluding fees).

Final advice

Before investing, always compare the fees, account types, and support offered by different brokers. The choice between cash buying and CFD trading should depend on your investment goals and risk tolerance. For detailed comparisons and tips on choosing the right broker, see our broker comparison further down the page.

Our 7 tips for buying Bank of Maharashtra stock

The latest news about Bank of Maharashtra

Bank of Maharashtra posts robust 6.78% stock gain over the past week, signaling strong market momentum. This performance is supported by a daily rise of 0.52% and places the stock well above all major moving averages. Analysts note a clear bullish trend, reflecting positive investor sentiment and broad-based buying in the public sector banking segment.

Recent Q1 FY26 business update reports bank-wide growth above 14% YoY in deposits and advances. This momentum is attributed to successful retail and corporate banking strategies as well as strong CASA ratio maintenance at 50.07%. Such robust growth rates signal ongoing customer acquisition and an expanding deposit base in alignment with India’s broader economic expansion.

The Reserve Bank of India approved Bank of Maharashtra’s entry into GIFT City, strengthening its international outlook. This strategic development paves the way for the bank to establish an International Financial Services Centre, allowing it to tap into cross-border transaction flows and serve global clients from Gujarat’s GIFT City, marking a move highly regarded by investors and regulators.

Continued reduction in NPA levels demonstrates effective risk management and improved asset quality. Gross NPA has steadily fallen to 1.74% and Net NPA to 0.18% by March 2025, underlining the bank’s progress in lending discipline and credit control. This improvement not only supports profit growth but also enhances the bank’s reputation as one of the sector’s best performers in asset quality.

Dividend payout increased to ₹1.50 per share, underscoring a strong commitment toward shareholder returns. The latest dividend, with an ex-date of May 9, 2025, highlights the bank’s ability to reward investors while growing profits at 36% YoY, making Bank of Maharashtra one of the more attractive yield opportunities among public sector banks in India.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.