Broker’s call: Bank of Maharashtra (Buy)

Target: ₹62

CMP: ₹51.25

Bank of Maharashtra (BOM) is a midsized public sector bank headquartered in Pune (Maharashtra), is engaged in providing banking services for more than nine decades. It has largest network of branches of any nationalised bank in Maharashtra.

BOM 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. The bank has been consistently reporting superlative performance and rewarding its shareholders with handsome dividends timely.

BOM capitalisation profile continued to improve from 17.38 per cent in Mar`24 to 20.53 per cent in Mar`25 and in FY26 the board has further approved to raise ₹7,500 crore through FPO, QIP, and preference allotment of shares. This would infuse ample liquidity for the bank to achieve lending growth of 17 per cent in FY26.

BOM’s aggressive digital strategy is expected to help in scaling up its business through data enabled decision making which in turn is expected to improve quality of credit underwriting and control. We recommend ‘Buy’ on the stock with a target price of ₹62 at P/B(x) of 1.45 times FY26e book value of ₹43 with upside of 24 per cent over a period of 12 months.

Published on May 23, 2025