Bank of Maharashtra (BSE: 532525, NSE: MAHABANK) has emerged as a key player in the Indian public sector banking industry. For investors and traders tracking this space, the key questions are: Is Bank of Maharashtra a good buy? and what are its share price targets for 2026–2030?
In this article, we break down Bank of Maharashtra’s business model, profitability, key risks, and market position. We also provide data-driven share price targets from 2026 to 2030, supported by technical trend analysis using charts to assess momentum, support zones, and long-term price structure.
Table of Contents
- About Bank of Maharashtra (Bank of Maharashtra)
- How Bank of Maharashtra Makes Money – Business & Revenue Model
- Bank of Maharashtra Risks & SWOT Analysis
- Is Bank of Maharashtra Stock a Good Buy?
- Why Bank of Maharashtra’s Share Price May Lag
- Bank of Maharashtra Share Price Target 2026
- Bank of Maharashtra Share Price Target 2027
- Bank of Maharashtra Share Price Target 2028
- Bank of Maharashtra Share Price Target 2029
- Bank of Maharashtra Share Price Target 2030
- Should You Buy Bank of Maharashtra Stock?
- Bank of Maharashtra Technical Analysis
- Bank of Maharashtra – Annual Earnings
- Key Financial & Valuation Metrics of Bank of Maharashtra
- Bank of Maharashtra vs Peers – Valuation & Performance Comparison
- Final Verdict: Is Bank of Maharashtra a Good Long-Term Investment?
- FAQs on Bank of Maharashtra (Bank of Maharashtra)
1. Bank of Maharashtra Business Overview: What the Company Does and Why It Matters
Bank of Maharashtra is a public sector bank operating in the Indian banking and financial services space. Founded in 1935 and headquartered in Pune, the company focuses on providing a wide range of banking products and services to individuals, businesses, and institutions across India.
Over time, Bank of Maharashtra has expanded its offerings and built a growing customer base, positioning itself as a relevant player in the Indian banking segment.
Key offerings include:
- Retail banking services (savings, current accounts, personal loans, home loans)
- Corporate and wholesale banking solutions
- Treasury and investment services
- MSME and agricultural financing
- Digital banking and payment solutions
Official updates and platform details are available on Bank of Maharashtra’s website .
2. How Bank of Maharashtra Makes Money: Revenue Streams Explained
Bank of Maharashtra follows a traditional banking model, generating revenue primarily through interest income from lending activities, supported by fee-based and treasury operations.
Main monetisation drivers:
- Interest Income from Loans – Earnings from advances to retail, corporate, MSME, and agricultural customers form the largest revenue stream.
- Fee and Commission Income – Charges from services like account maintenance, remittances, and payment solutions add to non-interest income.
- Treasury Operations – Income from investments in government securities, bonds, and money market instruments helps diversify earnings.
- Other Banking Services – Revenue from ancillary services such as locker rentals, insurance distribution, and payment collections.
Investor takeaway: Bank of Maharashtra’s revenue model is built on a mix of lending, fee-based services, and treasury activities, providing a stable foundation for long-term growth in the Indian banking sector.
3. Risks & SWOT Analysis
Strengths
- Consistent improvement in asset quality, with Gross NPA reduced to 1.88% in FY24 from 3.94% in FY22.
- Strong profit growth, with profit after tax reaching ₹6,087 Cr. and 5-year EPS CAGR of over 60%.
- Healthy capital adequacy ratio at 17.38%, above regulatory requirements.
- High promoter (GOI) holding at 86.5%, providing stability and government backing.
- Expanding branch network, with over half of branches outside Maharashtra, supporting geographic diversification.
- Improved cost-to-income ratio, indicating better operational efficiency.
Weaknesses
- High debt to equity ratio of 10.7, which may limit financial flexibility.
- Low interest coverage ratio, raising concerns on ability to service debt comfortably.
- Declining CASA ratio (52.7% in FY24 vs 58% in FY22), which could impact cost of funds.
- Large contingent liabilities of ₹47,914 Cr. may pose future risks.
- Return on capital employed (ROCE) remains modest at 5.72% despite strong ROE.
Opportunities
- New business verticals such as payment and collection services and channel finance can diversify revenue streams.
- Increasing focus on retail, agriculture, and MSME lending (RAM), which are high-growth segments in India.
- Improved asset quality and high provision coverage ratio (PCR) position the bank for future credit growth.
- Potential for further market share gains in advances and deposits from a low base.
Threats
- Rising cost of funds and declining CASA share may pressure net interest margins.
- High government ownership could lead to policy-driven decisions, not always aligned with minority shareholders.
- Exposure to economic cycles and sectoral downturns, especially in corporate and MSME lending.
- Competition from larger private sector banks and fintechs in core segments.
4. Is Bank of Maharashtra Stock a Good Buy?
Bull Case
- Strong improvement in profitability and asset quality over the last few years.
- Attractive valuation with P/E and P/B below industry average, offering a margin of safety.
- Healthy dividend yield of 2.45% provides regular income for investors.
- Government backing ensures stability and access to capital if needed.
- Expanding presence outside Maharashtra and focus on high-growth retail and MSME segments.
Bear Case
- High debt to equity and low interest coverage ratio may limit ability to withstand financial shocks.
- Declining CASA ratio could increase funding costs and impact margins.
- Large contingent liabilities may result in unexpected outflows.
- Government ownership may lead to policy-driven lending or capital allocation decisions.
- ROCE remains low compared to peers, indicating scope for better capital efficiency.
5. Why Bank of Maharashtra’s Share Price May Lag
Even with long-term potential, the stock may underperform in certain periods due to:
- Pressure on net interest margins if cost of funds rises faster than yields on advances.
- Slowdown in credit growth, especially in corporate or MSME segments, impacting earnings momentum.
- Market perception of high government ownership and policy risks.
- Any materialisation of contingent liabilities or asset quality slippage.
- Greater competition from private sector banks and digital lenders.
6. Bank of Maharashtra Share Price Target 2026: ₹62 – ₹85
By 2026, Bank of Maharashtra could see its share price move higher if it maintains its current growth momentum in advances and asset quality. The bank’s focus on retail and MSME segments, along with improved profitability and stable capital adequacy, may support a gradual re-rating. However, sector-wide risks and margin pressures remain.
| Year | Bull Case (₹) | Base Case (₹) | Bear Case (₹) |
|---|---|---|---|
| 2026 | 85 | 73 | 62 |
Key Drivers:
- Consistent growth in advances and deposits, especially in retail and MSME segments
- Improvement in asset quality with lower gross and net NPA ratios
- Stable capital adequacy and healthy CASA ratio
Investment View: Investors may consider Bank of Maharashtra for moderate long-term growth, but should monitor asset quality trends and sector-wide risks closely.
7. Bank of Maharashtra Share Price Target 2027: ₹80 – ₹100
In 2027, the bank’s performance could be influenced by its ability to expand its branch network and further diversify its loan book. The new business verticals and digital initiatives may start contributing meaningfully, but competition and cost pressures could impact margins.
| Year | Bull Case (₹) | Base Case (₹) | Bear Case (₹) |
|---|---|---|---|
| 2027 | 100 | 92 | 80 |
Key Drivers:
- Expansion of branch network and increased presence outside Maharashtra
- Growth in fee-based income from new verticals and digital services
- Effective management of cost-to-income ratio
Investment View: The outlook remains positive if the bank sustains its growth initiatives, but investors should watch for rising competition and operational costs.
8. Bank of Maharashtra Share Price Target 2028: ₹88 – ₹110
By 2028, the bank’s long-term strategy around technology adoption and customer acquisition could start reflecting in improved operational efficiency. However, macroeconomic factors and regulatory changes may introduce volatility in earnings and valuations.
| Year | Bull Case (₹) | Base Case (₹) | Bear Case (₹) |
|---|---|---|---|
| 2028 | 110 | 102 | 88 |
Key Drivers:
- Benefits from digital transformation and improved customer acquisition
- Potential for higher return on equity with stable asset quality
- Resilience to macroeconomic and regulatory headwinds
Investment View: Investors should remain cautious of sector risks, but the bank’s focus on technology and efficiency could support steady performance if execution remains on track.
9. Bank of Maharashtra Share Price Target 2029: ₹98 – ₹120
For 2029, Bank of Maharashtra’s share price target is projected in the range of ₹98 (bear case) to ₹125 (bull case), with a base case around ₹110. These estimates reflect the bank’s ongoing efforts to strengthen its retail and MSME portfolios, as well as its focus on improving asset quality and operational efficiency. The targets assume steady macroeconomic conditions and continued sector growth, but also account for potential risks from rising competition and regulatory changes.
| Year | Bull Case (₹) | Base Case (₹) | Bear Case (₹) |
|---|---|---|---|
| 2029 | 120 | 105 | 98 |
Key Drivers:
- Expansion of the bank’s new business and customer acquisition vertical, targeting fee-based income streams.
- Further improvement in cost-to-income ratio through digital initiatives and branch network optimisation.
- Stable asset quality supported by proactive NPA management and high provision coverage ratio.
- Potential for higher dividend payouts if profitability sustains.
Investment View: By 2029, Bank of Maharashtra could benefit from a more diversified revenue base and improved operational metrics. However, investors should monitor execution of new initiatives and the impact of sector-wide regulatory changes. The risk-reward profile remains moderate for long-term investors.
10. Bank of Maharashtra Share Price Target 2030: ₹105 – ₹130
Looking ahead to 2030, the share price target for Bank of Maharashtra is estimated between ₹110 (bear case) and ₹140 (bull case), with a base case of ₹125. These projections factor in the bank’s ability to sustain growth in advances and deposits, maintain asset quality, and adapt to evolving banking technologies. The range also reflects uncertainties around economic cycles and sector competition.
| Year | Bull Case (₹) | Base Case (₹) | Bear Case (₹) |
|---|---|---|---|
| 2030 | 130 | 117 | 105 |
Key Drivers:
- Consistent growth in retail and MSME lending, supporting higher net interest margins.
- Effective use of technology for customer acquisition and risk management.
- Stable government ownership providing capital support if required.
- Ability to withstand sectoral headwinds and maintain profitability through economic cycles.
Investment View: By 2030, Bank of Maharashtra’s long-term prospects will depend on its execution of digital strategies and ability to manage credit risk. Investors should remain cautious of sector volatility but may consider the stock for gradual portfolio allocation if fundamentals remain stable.
11. Should You Buy Bank of Maharashtra Stock?
| Year | Bull Case (₹) | Base Case (₹) | Bear Case (₹) |
|---|---|---|---|
| 2026 | 85 | 73 | 62 |
| 2027 | 100 | 92 | 80 |
| 2028 | 110 | 102 | 88 |
| 2029 | 120 | 105 | 98 |
| 2030 | 130 | 117 | 105 |
Valuation Snapshot
- Current P/E of 7.85 is slightly below the industry average, indicating moderate valuation.
- Price to Book Value at 1.53 remains reasonable for a public sector bank with improving asset quality.
- Dividend yield of 2.45% provides some income cushion for investors.
- Strong capital adequacy ratio (17.38%) and high provision coverage (98.3%) support financial stability.
- Debt to equity remains high at 10.7, which is typical for banks but should be monitored.
Investor Verdict
- Short-term: Volatility may persist due to sector trends and macroeconomic factors. Conservative investors may wait for more clarity on execution of new initiatives.
- Long-term: Gradual improvement in fundamentals, asset quality, and digital adoption could support steady returns. Suitable for investors with a long-term horizon and moderate risk appetite.
12. Technical Analysis: Weekly & Monthly Chart View
The technical structure below is based on a combined reading of the weekly and monthly price charts, helping investors understand both medium-term momentum and long-term trend direction.
Weekly Chart Outlook (Medium-Term)
- The medium-term trend for MAHABANK on the NSE remains positive, with price trading above key moving averages and showing higher swing lows.
- Support is visible in the ₹56–₹58 range, while resistance is likely around ₹64–₹66, where previous supply has emerged.
- Momentum is moderately strong, with the RSI near the overbought zone but not extremely stretched, suggesting some caution for fresh momentum trades.
Monthly Chart Outlook (Long-Term)
- The long-term structure has shifted to an uptrend, with the stock making a series of higher highs and higher lows since 2021.
- Monthly price action shows a recovery from multi-year lows, but the stock is approaching historical resistance zones seen between ₹65–₹75.
- Long-term momentum remains constructive, with the RSI in a healthy range, but the risk of profit booking increases as price nears previous peaks.
Technical takeaway: MAHABANK’s technical charts indicate a positive bias in both medium and long-term timeframes, supported by strong momentum and higher swing structures. However, with prices nearing resistance zones, traders and investors may need to watch for potential consolidation or volatility in the coming weeks.
13. Bank of Maharashtra – Annual Earnings
The table below shows key consolidated financials of Bank of Maharashtra for the last five fiscal years.
Source: Company filings, BSE/NSE disclosures & investor presentations.
| Metric | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | TTM |
|---|---|---|---|---|---|---|
| Net Interest Income (₹ Cr) | 4,300 | 5,100 | 6,200 | 7,350 | — | 7,350 |
| Total Income (₹ Cr) | 13,800 | 15,900 | 18,200 | 21,100 | — | 21,100 |
| Operating Profit (₹ Cr) | 3,100 | 3,700 | 4,800 | 5,950 | — | 5,950 |
| Profit After Tax (₹ Cr) | 550 | 1,152 | 2,602 | 6,087 | — | 6,087 |
| Earnings Per Share (₹) | 0.72 | 1.51 | 3.41 | 7.91 | — | 7.91 |
| Gross NPA (%) | 7.23 | 3.94 | 2.47 | 1.88 | — | 1.88 |
| Net NPA (%) | 2.48 | 0.97 | 0.47 | 0.20 | — | 0.20 |
| ROE (%) | 5.2 | 11.5 | 17.5 | 22.8 | — | 22.8 |
| ROA (%) | 0.25 | 0.53 | 0.98 | 1.45 | — | 1.45 |
| Book Value per Share (₹) | 28.5 | 32.8 | 36.2 | 40.8 | — | 40.8 |
- Net interest income has grown steadily over the last five years, reflecting improved loan growth and better yields.
- Profit after tax has increased significantly, especially in FY24, supported by higher operating profits and lower credit costs.
- Asset quality has improved with gross and net NPA ratios declining consistently, indicating better risk management.
- Return on equity (ROE) and return on assets (ROA) have shown a healthy upward trend, supported by improved profitability.
- Book value per share has increased each year, reflecting retained earnings and capital infusion.
Financial Snapshot: Bank of Maharashtra has demonstrated strong earnings growth over the last five years, with a notable improvement in profitability and asset quality. The bank’s focus on reducing NPAs and improving operational efficiency has contributed to higher returns and a stronger balance sheet.
14. Bank of Maharashtra – Key Valuation Metrics
Key valuation and profitability ratios showing Bank of Maharashtra’s financial strength, pricing, and risk profile.
| Metric | Value |
|---|---|
| Market Capitalisation | ₹47,526 Cr |
| P/E Ratio | 7.85 |
| Price to Book Value | 1.53 |
| Dividend Yield | 2.45% |
| Return on Equity (ROE) | 22.8% |
| Return on Capital Employed (ROCE) | 5.72% |
| Debt to Equity | 10.7 |
| Price to Sales | 1.74 |
| PEG Ratio | 0.11 |
15. Bank of Maharashtra – Key Peers & Comparison
Focused comparison of Bank of Maharashtra with its closest industry peers based on valuation and profitability metrics.
| Company | P/E | Market Cap (₹ Cr) | Qtr Profit (₹ Cr) | Qtr Sales (₹ Cr) | ROCE % |
|---|---|---|---|---|---|
| Bank of Maharashtra | 7.85 | 47,526 | 1,520 | 5,250 | 5.72 |
| Indian Bank | 7.9 | 54,800 | 1,650 | 6,100 | 6.1 |
| Bank of India | 8.2 | 54,200 | 1,420 | 7,200 | 5.5 |
| UCO Bank | 8.0 | 38,900 | 1,110 | 4,800 | 5.2 |
| Punjab & Sind Bank | 7.7 | 19,200 | 510 | 2,300 | 4.9 |
16. Final Verdict – Bank of Maharashtra
Bank of Maharashtra shows improved fundamentals and asset quality, but faces sector-specific risks and valuation sensitivity.
Over the long term, Bank of Maharashtra benefits from a strong government backing, improved capital adequacy, and a cleaner balance sheet. Expansion in retail and MSME lending, along with a growing branch network, supports scalability. However, high leverage, sector cyclicality, and exposure to regulatory changes remain key risks. The stock’s valuation is close to industry averages, and future performance will depend on consistent execution and stable asset quality. Short-term volatility may persist due to market sentiment and sector events.
Best for: Cautious long-term investors seeking PSU banking exposure, and traders comfortable with moderate volatility and event-driven moves.
17. FAQs on Bank of Maharashtra
Q1. What is the Bank of Maharashtra share price target for 2026?
The target price for Bank of Maharashtra in 2026 is:
- Bull Case: ₹85
- Base Case: ₹73
- Bear Case: ₹62
Q2. What is the Bank of Maharashtra share price target for 2030?
The target price for Bank of Maharashtra in 2030 is:
- Bull Case: ₹130
- Base Case: ₹117
- Bear Case: ₹105
Q3. Is Bank of Maharashtra a good stock for long-term investment?
Bank of Maharashtra has shown strong profit growth and improved asset quality, but investors should consider sector risks and review fundamentals before investing.
Q4. Why is Bank of Maharashtra share price falling?
The share price may fall due to market volatility, sector challenges, or changes in financial performance. It is important to monitor quarterly results and news.
Q5. Why is Bank of Maharashtra share price rising?
The share price may rise on improved earnings, better asset quality, or positive banking sector sentiment. Strong quarterly results can also support upward movement.
Q6. Can I invest in Bank of Maharashtra stock?
Investors can invest in Bank of Maharashtra through NSE or BSE after evaluating their risk profile and the bank’s financial health.
Q7. What are the key risks of investing in Bank of Maharashtra?
Key risks include high debt to equity, low interest coverage, sector competition, and exposure to contingent liabilities. Market and regulatory risks also apply.
Q8. Is Bank of Maharashtra suitable for short-term trading?
The stock may see price movements, but short-term trading involves higher risk. Traders should track volumes, news, and technical indicators.
Q9. What factors can impact Bank of Maharashtra share price in the future?
Factors include asset quality, loan growth, interest rates, regulatory changes, and overall banking sector performance in India.
Q10. How does Bank of Maharashtra compare with its peers?
Bank of Maharashtra has improved its asset quality and profit growth, but its debt to equity is higher than some peers. Comparing key ratios helps assess its position.
Disclaimer
This article is for general informational and educational purposes only and should not be considered financial or investment advice. Stock markets involve risks, and actual results may differ from projections. Always conduct your own research or consult a licensed financial professional before making investment decisions. ChartMyWealth.com is not responsible for any financial losses arising from the use of this content.
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