FPIs, DIIs continue to up their stake in Bank of Maharashtra, backing growth prospects

At a time when foreign portfolio investors (FPIs) were sellers in Indian equities over the past four quarters, Bank of Maharashtra stood out as one of the few large-cap lenders, which consistently saw FPIs raise their shareholding in the bank since December 2025. 

Shareholding data for the Bank of Maharashtra reveals that FII stake in the bank has risen to 6.5% in the September-ended quarter (Q2FY27) from 4.93% for the December-ended 2025 (Q3FY26) quarter, a jump seen over the past four consecutive quarters.   

But for the period between January to September 2026, FPIs had sold Indian equities worth $27.8 billion.  

Domestic institutional investors (DIIs) have been equally bullish on Bank of Maharashtra, increasing their shareholding to a record 14.27% in June this year, while profit booking reduced the stake to 13.77% by September-end. In March 2024, DIIs had a stake of just 4.68%, according to Trendlyne.com data. 

For Bank of Maharashtra, the investor confidence in the bank has improved after Nidhu Saxena, the bank's managing director and CEO took charge in March 2024. Saxena has focussed on diversifying the loan book, increasing distribution and making lending more disciplined. Bank of Maharashtra won the best mid-sized bank (PSB category) at the Fortune India Best Banks & NBFCs Awards 2026 in October.

As of September 30, the total business has grown to Rs 7.06 lakh crore, by 25.16% year-on-year within which advances have grown at the rate of 30% year-on-year. The credit growth in the bank in Q2FY27 was a healthy 23%. "All the verticals: the RAM (Retail, Agriculture and MSME) grew more than 20%," Saxena told analysts on October 26. 

Deposit growth grew 19% and asset quality improved as net NPA improved by six bps to 0.12% of total advances. The strong financials has reflected in the bank stock gaining 41% year-to-date and 45% to Rs 90 at the BSE on November 11, from when Saxena took charge. 

The bank has maintained its focus on RAM rather than pure corporate lending. RAM now accounts for 62% of the total loan book size of Rs 2.54 lakh crore in Q2FY27. 

Bank of Maharashtra has a Rs 23,000 crore of proposals in its credit pipeline. Saxena says that they estimate Rs 10,000 crore of this will be disbursed up to March 2027. Sectors where the bank has taken exposure and where these proposals of Rs 23,000 crore lie are mostly infrastructure...including power, roads, HAM projects of NHAI, renewable energy and metals. 

Investing.com, in a post earnings review of Bank of Maharashtra said: "The management reiterated its guidance for 18% credit growth in fiscal 2027, noting that actual growth excluding the international branch already runs at 23% year-over-year. " 

Anupama Bhootra, analyst with Pune E-Stock Broking Ltd said that Bank of Maharashtra remains well-positioned for sustainable growth, supported by strong credit expansion, improving asset quality and resilient profitability. However, sustaining deposit mobilisation, managing funding costs and maintaining margins amid aggressive loan growth remain key monitorables.