Foreign portfolio investors (FPIs) and domestic institutional investors (DIIs) have steadily increased their shareholding in Bank of Maharashtra over recent quarters, highlighting growing institutional interest in the state-owned lender. Foreign investor ownership rose to 6.5% in the September 2026 quarter, compared with 4.93% in December 2025, marking four consecutive quarters of increases.
Domestic institutions have also expanded their exposure to the bank. DII shareholding reached a record 14.27% in June 2026 before moderating to 13.77% by September-end. The growing institutional interest comes as Bank of Maharashtra reports strong credit growth, improving asset quality and expanding business across retail, agriculture and micro, small and medium enterprises (MSMEs).
FPIs Increase Stake in Bank of Maharashtra for Four Consecutive Quarters
Bank of Maharashtra has attracted foreign investor interest even as FPIs have withdrawn substantial amounts from Indian equities.
According to shareholding data reported by Fortune India, FPI ownership in the bank increased from 4.93% in December 2025 to 6.5% in September 2026.
The increase is particularly notable because foreign investors were net sellers in the broader Indian equity market during much of the same period.
| Quarter | FPI shareholding |
|---|---|
| December 2025 | 4.93% |
| March 2026 | 5.55% |
| June 2026 | 5.82% |
| September 2026 | 6.50% |
The data indicates that foreign investors have continued increasing their exposure to the bank despite a challenging environment for Indian equities.
The number of FPI investors holding Bank of Maharashtra shares also increased from 288 to 312 during the September quarter, according to Trendlyne data.
This suggests that institutional interest has broadened rather than being driven solely by a small group of investors.
DIIs Also Increase Their Exposure to the Public Sector Bank
Domestic institutional investors have shown similar interest in Bank of Maharashtra.
DII shareholding increased substantially from 4.68% in March 2024 to 13.77% in September 2026, according to the figures cited by Fortune India.
The stake reached a record 14.27% in June 2026 before declining slightly in the following quarter, potentially reflecting some profit booking.
| Period | DII shareholding |
|---|---|
| March 2024 | 4.68% |
| June 2026 | 14.27% |
| September 2026 | 13.77% |
The rise in domestic institutional ownership indicates growing confidence in the bank’s financial performance and business strategy.
Mutual funds have also increased their exposure. Their combined holding rose from 5.32% in December 2025 to 6.78% in September 2026, according to Trendlyne’s shareholding data.
However, DII ownership should be distinguished from mutual fund ownership. DIIs include several domestic institutional categories, such as mutual funds, insurance companies and financial institutions.
Bank of Maharashtra’s Business Grows 25% to ₹7.06 Lakh Crore
The growing institutional interest comes as Bank of Maharashtra reports strong expansion across its banking operations.
The bank’s total business reached ₹7.06 lakh crore as of September 30, 2026, representing year-on-year growth of 25.16%.
Total business includes deposits and advances, making it an important measure of the overall scale of a bank’s operations.
Advances grew approximately 30% year-on-year, while deposit growth stood at 19%.
The bank also reported credit growth of 23% during the second quarter of FY27.
| Business indicator | September 2026 |
|---|---|
| Total business | ₹7.06 lakh crore |
| Total business growth | 25.16% YoY |
| Advances growth | Approximately 30% |
| Deposit growth | 19% |
| Credit growth in Q2 FY27 | 23% |
The stronger growth in advances indicates that the bank has been expanding lending activity faster than deposits.
This can support revenue growth, although maintaining sufficient deposit mobilisation remains important to fund lending operations without putting excessive pressure on borrowing costs.
Retail, Agriculture and MSME Lending Drive Growth
Bank of Maharashtra has focused on expanding its retail, agriculture and MSME businesses, collectively known as the RAM segment.
The bank’s RAM portfolio accounted for approximately 62% of its total loan book of ₹2.54 lakh crore in Q2 FY27.
All three segments recorded growth of more than 20% during the quarter, according to managing director and CEO Nidhu Saxena.
The strategy is designed to diversify the bank’s lending portfolio rather than relying excessively on large corporate borrowers.
Retail lending
Retail lending includes loans to individual customers for housing, vehicles, personal requirements and other financial needs.
A larger retail portfolio can diversify a bank’s income sources and expand its customer base.
However, the segment requires careful monitoring of repayment behaviour and borrower creditworthiness.
Agriculture lending
Agriculture remains an important part of India’s banking sector, particularly for public sector banks with a substantial presence in rural areas.
Bank of Maharashtra’s agriculture lending supports farmers and other businesses connected to the agricultural economy.
MSME lending
Micro, small and medium enterprises are another important growth area.
These businesses require financing for working capital, equipment purchases, expansion and day-to-day operations.
By increasing its MSME exposure, Bank of Maharashtra is targeting a segment that plays an important role in employment generation and economic activity.
Asset Quality Improves as Net NPA Falls to 0.12%
Alongside lending growth, Bank of Maharashtra has reported an improvement in asset quality.
The bank’s net non-performing assets (NNPA) declined by six basis points to 0.12% of total advances.
Net NPA measures the value of loans that remain non-performing after accounting for provisions already made by the bank.
A lower net NPA ratio generally indicates that the bank has a smaller proportion of stressed loans remaining after provisions.
Improving asset quality is important because loan defaults can require banks to set aside additional money as provisions, reducing profitability.
For investors, the combination of faster credit growth and a low net NPA ratio is an important part of the bank’s growth story.
However, sustaining these metrics will require disciplined underwriting, effective recovery processes and careful monitoring of new loans.
Nidhu Saxena’s Leadership and Business Strategy
Nidhu Saxena took charge as Bank of Maharashtra’s managing director and CEO in March 2024.
Since then, the bank has focused on diversifying its loan book, strengthening its distribution network and maintaining more disciplined lending practices.
The strategy has coincided with an improvement in the bank’s business growth and institutional shareholding.
The bank also received the Best Mid-Sized Bank award in the public sector bank category at the Fortune India Best Banks and NBFCs Awards 2026 in October.
Its stock performance has also attracted attention. According to Fortune India, shares gained approximately 41% year-to-date and rose around 45% to ₹90 on the BSE on November 11 compared with the level when Saxena took charge.
Past share price performance, however, does not guarantee future returns.
Bank of Maharashtra Has a ₹23,000 Crore Credit Pipeline
The bank is also preparing for further expansion through a substantial pipeline of proposed loans.
Bank of Maharashtra has approximately ₹23,000 crore worth of proposals in its credit pipeline.
Management expects around ₹10,000 crore of these proposals to be disbursed by March 2027.
The proposed lending includes exposure to infrastructure-related sectors such as:
- Power generation and distribution.
- Roads and highway projects.
- Hybrid Annuity Model projects of the National Highways Authority of India.
- Renewable energy.
- Metals.
Infrastructure lending can provide opportunities for banks to finance large, long-term projects. However, these loans also require careful assessment of project execution, cash flows, repayment capacity and regulatory risks.
Management has reiterated its guidance for 18% credit growth in FY27, while actual growth excluding the international branch was already running at approximately 23% year-on-year, according to the earnings commentary cited in the report.
What Is Driving Institutional Confidence in Bank of Maharashtra?
The increase in FPI and DII ownership reflects several factors that institutional investors may be considering.
Strong credit expansion: The bank’s advances have grown faster than its overall business, indicating increasing lending activity.
Improving asset quality: A net NPA ratio of 0.12% provides evidence of relatively low residual stressed assets.
Diversified lending portfolio: The focus on retail, agriculture and MSMEs reduces dependence on a narrow group of large corporate borrowers.
Growth opportunities: The ₹23,000 crore credit pipeline offers opportunities to expand lending across infrastructure and other sectors.
Improved financial performance: The bank’s business expansion and operational strategy have strengthened investor interest.
However, analysts have also highlighted important risks. Sustaining deposit mobilisation, controlling funding costs and protecting margins amid rapid loan growth will remain key challenges.
The Bigger Picture
Bank of Maharashtra’s rising institutional shareholding stands out against a period when foreign investors have been reducing their exposure to Indian equities. The bank’s ability to attract FPI and DII interest reflects confidence in its recent operating performance, particularly its credit expansion, diversified lending strategy and improving asset quality.
The bank is also benefiting from a broader opportunity among public sector lenders to expand retail, agricultural, MSME and infrastructure financing. However, faster loan growth must be supported by sufficient deposits and disciplined risk management. Institutional investors will need to assess whether the bank can maintain profitability and asset quality as its balance sheet expands.
Looking Ahead
Bank of Maharashtra’s next phase of growth will depend on its ability to convert the existing credit pipeline into actual disbursements while maintaining strong asset quality. Management’s expectation of approximately ₹10,000 crore in additional disbursements by March 2027 will be an important milestone. The bank will also need to sustain deposit growth to support its lending expansion without significantly increasing funding costs.
The continued rise in FPI and DII ownership suggests that institutional investors are paying closer attention to the bank’s growth prospects. However, shareholding trends alone do not guarantee future stock performance. Investors will continue monitoring quarterly earnings, net interest margins, deposit mobilisation, credit costs and loan quality to determine whether the bank can sustain its recent momentum.
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