PSU Bank Stock Sets Record Date For FY25 Dividend: After A 43% Crash, Is MAHABANK Ready For A Major Comeback?

With a market value of Rs 39.50KCr, Bank of Maharashtra's shares closed Monday's trading session on the NSE 1.94% higher at Rs 50.98 a share. After a steep drop of around 43% from its peak, MAHABANK has recently shown indications of resurgence and is presently trading around the Rs 60 mark. Following the bank's announcement of strong financial results for the quarter and year ending March 31, 2025, the stock is under focus. Along with announcing double-digit growth across all key metrics, Bank of Maharashtra also announced its FY25 dividend and set a record date.

Bank of Maharashtra Dividend

"This is to inform that the Board of Directors of the Bank at their meeting dated 25.04.2025 has recommended dividend of 15 % on the equity shares of the Bank ie., Rs. 1.50/- per share having face value of Rs. 10/- each for the Financial year 2024-25. Accordingly, we wish to inform you that the Record Date for determining the eligibility of members entitled to receive dividend on equity shares is Friday, 9th May, 2025. Dividend, if approved by the shareholders of the Bank, shall be paid after the AGM to those shareholders, whose names appear in the Bank's Register of Members/ Register of Beneficial Owners maintained by the Depositories viz., National Securities Depository Limited and Central Depository Services (India) Limited as at the close of business hours on Friday, 9th May, 2025," said Bank of Maharashtra in a stock exchange filing.

Bank of Maharashtra Q4 Results

On Friday, April 25, the Bank of Maharashtra announced its financial results for the quarter and year ended March 31, 2025. Net profit increased 22.62% YoY to Rs 1,493 crore in Q4FY25 from Rs 1,218 crore in Q4FY24. The bank's Net Interest Income (NII) climbed from Rs 2,584 crore in Q4FY24 to Rs 3,116 crore in Q4FY25, a 20.59% YoY growth. The bank claims that its operating profit increased 14.03 percent YoY to Rs 2,520 crore in the quarter under review from Rs 2,210 crore in the same quarter of the previous fiscal.

For the entire year FY25, the bank reported a net profit of Rs 5,520 crore, increasing 36.12% from Rs 4,055 crore for the year ending March 31, 2024. Net Interest Income (NII) climbed 18.77% YoY to Rs 11,666 crore for the year ending March 31, 2025, from Rs 9,822 crore for the year ending March 31, 2024. Operating profit rose 16.41% YoY to Rs 9,319 crore in FY25 from Rs 8,005 crore in FY24.

At Rs 546,979 crore, the bank's total business increased 15.30% YoY. As of March 31, 2025, the Bank of Maharashtra reported that its net advances had grown 17.90% YoY to Rs 236,084 crore, while its gross advances had expanded 17.76% YoY to Rs 239,837 crore. A solid asset quality was shown by the bank's gross non-performing asset (NPA), which grew to 1.74 percent on March 31, 2025, from 1.88 percent on March 31, 2024, and its net non-performing asset (NPA), which improved to 0.18 percent on March 31, 2025, from 0.20 percent on March 31, 2024.

Bank of Maharashtra Share Price Target

Hardik Matalia - Derivative Analyst at Choice Broking said, "MAHABANK is currently trading around ₹50.79 and has recently shown signs of strength after being in a prolonged bearish trend, marked by consistent formation of lower highs and lower lows on the daily time frame. Following a sharp decline of nearly 43% from its peak, the stock has now broken out of its falling trend line, supported by improving and consistent trading volumes - indicating early signs of a trend reversal."

"Currently, MAHABANK is consolidating near its breakout zones, showing healthy price action. A decisive and sustainable move above the ₹55 mark would confirm the breakout and trend change, potentially paving the way for a meaningful upside rally in the near term. Technically, the stock is trading above its short-term and medium-term EMAs, and is hovering near its long-term EMA. A breakout and sustained trade above the long-term EMA would further strengthen the bullish setup and support the possibility of a larger trend reversal," the analyst added.

"The Relative Strength Index (RSI) is currently at 62.07 and is trending upwards with positive momentum, suggesting growing strength and increasing buying interest. For short-term traders, it is advisable to wait for a clear confirmation above ₹55 for higher conviction entries. Meanwhile, long-term investors can consider partial accumulations at current levels and continue to add on dips, backed by the improving technical structure. Nearby support is placed around ₹45, and as long as the stock sustains above this level, the potential for a sustained upside move remains intact," Hardik Matalia further recommended.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.