Core Viewpoint - Bank of Maharashtra's stock has reached a 52-week high but is trading at a discount compared to previous highs, indicating potential for future growth due to strong fundamentals and market positioning [1][2]. Company Overview - Bank of Maharashtra is a mid-cap PSU bank with a promoter holding of approximately 74% after a government stake sale [4]. - The bank manages a loan book of about ₹2.75 lakh crore, with a small portion (1.3%) in overseas advances [5]. Financial Performance - The bank has shown consistent growth, with a net profit of ₹5,520 crore for FY25, up from ₹389 crore in FY20 [10]. - In 9M-FY26, net profit reached ₹5,005 crore, growing over 24% year-on-year [12]. - The bank's advances and deposits grew by 20% and 15% respectively in 9M-FY26, outperforming the banking system [12]. Asset Quality - As of Q3 FY26, the bank's gross NPA and net NPA ratios are at 1.6% and 0.15% respectively, indicating strong asset quality [14]. - The bank has a provision coverage ratio of 90.7% and a slippage ratio of 1.2%, reflecting effective management of bad loans [15]. Cost and Efficiency Metrics - The bank boasts a CASA ratio of 49.5% and a cost-to-income ratio of 37.3%, which are among the best in the industry [13]. - The management plans to expand its branch network by 1,000 branches over the next five years, which may impact the cost-to-income ratio [13]. Future Guidance - For FY26, the bank targets a loan growth of 17% and a NNPA ratio of 0.25% [17]. - The management expects to achieve a net interest margin (NIM) of 3.75% by the end of FY26 [18].

Group 1 - The stock is currently trading at 19x estimated EPS for 2026, indicating that the market valuation appears to be accurate based on Bloomberg consensus estimates [1] Group 2 - The analysis emphasizes a focus on macroeconomic factors, portfolio management, and equity research, highlighting the importance of economic cycles and monetary policy in investment strategies [1]