Reaffirmation of Credit Ratings by ICRA Limited

Investor Services Department Corporate Office: Montclaire, 134/1, Baner- Pashan Link Road, Pashan, Pune 411021 E-mail: investor_services@bankofmaharashtra.bank.in Phone nos - 020-71658139 www.bankofmaharashtra.bank.in AX1/ISD/STEX/47/2026-27 Date: 21st July, 2026 The Vice President The Vice President BSE Ltd., National Stock Exchange of India Ltd., P.J Towers, Exchange Plaza, Dalal Street, Fort, Bandra Kurla Complex, Mumbai-400 001 Bandra (East), Mumbai-400 051 BSE Scrip Code: 532525 NSE Scrip Code: MAHABANK Dear Sir / Madam, Sub: Reaffirmation of Ratings on securities by ICRA Limited Pursuant to Regulation 55 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform that ICRA Limited has reaffirmed its ratings on Bank’s securities on 21.07.2026 as below: Sr. ISIN & Details of the Coupon Rated Rating Verificatio Date of No. Instrument Rate amount action n status of Verification (Rs.Crore) rating agencies 1 INE457A08035 9.20% 500.00 ICRA AA+; Reaffirmed 21.07.2026 Basel III Tier II Bonds Stable 2 INE457A08167 7.89% 1000.00 ICRA AA+; Reaffirmed 21.07.2026 Basel III Tier II Bonds Stable 3 INE457A08175 7.80% 811.00 ICRA AA+; Reaffirmed 21.07.2026 Infrastructure Bonds Stable 4 INE457A08183 7.70% 1612.00 ICRA AA+; Reaffirmed 21.07.2026 Infrastructure Bonds Stable 5 Proposed Basel III - 500.00 ICRA AA+; Reaffirmed 21.07.2026 Tier II Bonds Stable 6 Proposed - 7577.00 ICRA AA+; Reaffirmed 21.07.2026 Infrastructure Bonds Stable Please find the enclosed Rating rationale dated 21.07.2026 issued by ICRA Ltd with respect to the ratings on above Securities. This is for kind information and appropriate dissemination. Thanking you. Yours faithfully, For Bank of Maharashtra (Vishal Sethia) Company Secretary Encl: As above Restricted July 21, 2026 Bank of Maharashtra: Rating reaffirmed Summary of rating action Previous rated amount Current rated amount Instrument* Rating action Financial sector regulator# (Rs. crore) (Rs. crore) Basel III Tier II bonds 2,000.00 2,000.00 [ICRA]AA+ (Stable); reaffirmed SEBI Infrastructure bonds 10,000.00 10,000.00 [ICRA]AA+ (Stable); reaffirmed SEBI Total 12,000.00 12,000.00 *Instrument details are provided in Annexure I; # SEBI’s grievance redressal/dispute resolution and SEBI investor protection mechanisms such as SCORES and ODR shall not be available for activities and instruments which fall under the regulatory purview of Financial Sector Regulators other than SEBI. Rationale The rating continues to factor in the sustained improvement in Bank of Maharashtra’s (BoM) earnings profile, aided by the healthy growth in its loan book, steady margins and increasing operating efficiency, driving its operating profitability. Additionally, it reported an improvement in its headline asset quality indicators and solvency1 metrics. The rating remains supported by the bank’s majority sovereign ownership and its above-average resource profile, given its established retail network with a strong presence in Maharashtra. BoM has a high share of low-cost current account and savings account (CASA) deposits, which translates into a competitive cost of funds, supporting its profitability. The bank continued its practice of providing for stressed assets upfront, aided by the transfer of provisions maintained on standard assets to non-performing advances (NPAs), which helped contain net additions to NPAs during the period. Coupled with the healthy growth in advances, this supported an improvement in the gross NPA (GNPA) ratio to 1.45% as on June 30, 2026 from 1.74% as on March 31, 2025. The vulnerable book (SMA-1, SMA-22 and standard restructured book) declined to 0.78% of standard advances as on June 30, 2026 from 1.12% as on March 31, 2025. Nonetheless, the asset quality will remain monitorable as the loan book seasons, given that the bank’s credit growth has been high in the recent past. Additionally, uncertainty around the West Asia conflict could impact the asset quality and profitability profile. In this regard, BoM continues to hold contingent provisions that can absorb some of the incremental impact if the same materialises. Healthy profitability continued to support the capitalisation metrics in FY2026, which are expected to remain comfortable, given BoM’s resource-raising plans, including its intention to raise equity in the near term. ICRA also notes that the bank expects an impact of around Rs. 2,500 crore upon its transition to the expected credit loss (ECL) framework, against which it has started creating provisions (Rs. 255 crore so far). Consequently, the impact on the reported CET I ratio, which stood at 15.56% as on June 30, 2026, is expected to remain limited at 100-110 basis points (bps). The Stable outlook on the rating reflects ICRA’s expectation that the bank will be able to maintain a steady credit profile, with stable asset quality as well as healthy profitability and capitalisation. 1 Solvency is defined as (Net non-performing advances + Net non-performing investments + Net security receipts)/Core capital 2 SMA is defined as a special mention account (SMA), which is an account exhibiting signs of incipient stress resulting in the borrower defaulting in the timely servicing of their debt obligations though the account has not yet been classified as an NPA as per the extant RBI guidelines; SMA-1 accounts are overdue by 31-60 days while SMA-2 accounts are overdue by 61-90 days. The reported amount refers to SMAs with amount outstanding of Rs. 5 crore and above www.icra .in 1 Sensitivity Label : Public Page | Key rating drivers and their description Credit strengths Sovereign ownership – The rating continues to factor in BoM’s majority sovereign ownership, with the Government of India (GoI) holding 73.60% as on June 30, 2026. While its stake moderated from 79.60%, following an offer for sale (OFS) in FY2026 to reduce its shareholding in the bank to meet with the regulatory requirement of minimum public shareholding, the GoI remains the dominant shareholder and is expected to retain a significant presence in the bank's ownership structure. Historically, BoM has benefited from strong sovereign support, receiving cumulative capital infusions of Rs. 9,007 crore during FY2017-FY2020, which helped it absorb legacy stressed assets while maintaining regulatory capital requirements. Following its exit from the Prompt Corrective Action (PCA) framework in January 2019, the bank has reported a sustained improvement in its profitability, supported by the healthy growth in advances and relatively lower credit costs. BoM’s strong internal capital generation, healthy capitalisation levels, and comfortable buffers over the regulatory minimum requirements are expected to support its growth plans over the near-to-medium term. Nevertheless, given the bank’s strategic importance and majority sovereign ownership, ICRA expects the GoI to extend capital support, if required, to support its growth and maintain adequate capitalisation. Healthy capitalisation profile and solvency – BoM’s capitalisation profile has remained comfortable with the CET I {as a percentage of risk-weighted assets (RWA)} at 15.56% as on June 30, 2026 (14.59% as on March 31, 2026), aided by healthy internal capital accretion and lending towards lower RWA density retail advances. Furthermore, supported by the high provision coverage on its GNPAs, BoM’s solvency improved to 1.20% as on June 30, 2026 (1.25% as on March 31, 2026 and 1.63% as on March 31, 2025). The bank maintained prudent/contingency Covid provisions of Rs. 760 crore, which remained significantly above its stock of net NPAs (NNPAs) of Rs. 405 crore as on June 30, 2026. ICRA also notes that BoM expects an impact of around Rs. 2,500 crore upon its transition to the ECL framework, against which it has started creating provisions (Rs. 255 crore provided so far). Consequently, the impact on the reported CET I ratio is expected to remain limited at 100-110 bps. The availability of the ex [Showing first 8,000 characters — download PDF for full document]