As Government of India is reported to appoints Goldman Sachs as the sole banker for stake sales in four PSU banks (UCO Bank, Central Bank of India, Punjab & Sind Bank, and Indian Overseas Bank) suggest some media reports, select brokerage firms continue to remain positive on another state-run lender Bank of Maharashtra, which is priced around Rs 53-54.
Centrum Broking, which recently met the management of Bank of Maharashtra (BOM) to understand the underlying drivers of its consistent performance and long-term strategy. The bank is clearly positioning itself for sustained outperformance among public sector peers, anchored by a shift in loan mix toward retail, agri and MSME (RAM), which makes up around 60 per cent of its book.
Despite the policy-driven headwinds from cuts, margins have held up well thanks to a disciplined approach to deposit cost management, a consistently strong Best-in-Class CASA ratio (above 50 per cent). The retail portfolio continues to shine, driven majorly by a home-loan led book, government-salaried customers, and low delinquencies in cross-sold vehicle loans, said Centrum.
“Management is building for the future with focused geographic expansion beyond Maharashtra, a digital lending portfolio, co-lending partnerships, and a pipeline of branch additions, With capital buffers intact, BOM’s execution discipline and multi-pronged strategy offer strong visibility on growth and profitability over the next few year,” it said without rating the stock.
Bank of Maharashtra reported a 23.14 per cent year-on-year (YoY) rise in its consolidated net profit at Rs 1,593.09 crore for three-months ended on June 30, 2025. The state-run lender’s net interest income (NIIs) increased 17.57 per cent YoY to Rs 3,292 crore for the reported period.
HDFC Securities believes that banks’ earnings are likely to rebound during H2FY26 on the back of a pick-up in volumes, deposit repricing, and moderation in credit costs. It has a ‘buy’ rating on Bank of Maharashtra with a target price of Rs 70, making it a preferred pick in the mid-sized banks.
“BOMH reported a healthy set of Q1FY26 earnings on the back of steady margins. BOMH has a superior deposit franchise, stemming from sticky and sizable state and public account balances, reflected in a best-in-class mix of CA balances, translating into lower cost of funds, and a superior margin profile. We expect BOMH to sustain its high growth and healthy earnings trajectory,” it said post its Q1 earnings.
Bank of Maharashtra dropped 2 per cent to Rs 53.31 on Tuesday, against its previous close at Rs 54.35 on Monday. The total marketcap of the lender slipped below Rs 41,000 crore mark. The stock has cracked more than 16 per cent from its 52-week high at Rs 63.60, hit a year ago. The stock touched its 52-week low of Rs 38.11 in April 2025 and has risen 43 per cent since then.
Bank of Maharashtra is emerging as one of the most robust and agile performers in India’s public sector banking space, firing on all cylinders with industry leading metrics across asset quality, CASA ratio, RoA, NIMs, PCR and capital strength. It has been
consistently reporting superlative performance and rewarding its shareholders with handsome dividends timely, said AUM Capital.
“With a P/B of 1.47 times and P/E of 7.11 times make it an attractive investment opportunity. We recommend ‘buy’ on the stock with a target price of Rs 62 at P/B of 1.45 times FY26E book Value of Rs 43 over a period of 12 months,” AUM Capital added in its report, released in May 2025.
As a techno-funda pick, Geojit Investment has a target price of Rs 68 on the stock. Bank of Maharashtra, established in 1935, is one of India’s leading public sector banks, offering a wide range of banking and financial services. The bank plays a vital role in supporting small and medium enterprises (SMEs) and has a significant footprint in rural and semi-urban areas.
Government of India owns 79.60 per cent stake in Bank of Maharashtra, while LIC of India has 7.10 per cent stake in the lender. Mutual funds own less than one per cent stake. More than 9.75 lakh retail investors own nearly 54 crore equity shares, or 7.02 per cent stake, in the company.