Bank of Maharashtra ratings upgraded by Fitch on improved risk profile

Fitch Ratings affirmed Bank of Maharashtra's (BOM) Long-Term Issuer Default Rating (IDR) at 'BBB-' with a Stable Outlook and upgraded its Viability Rating (VR) to 'bb-' from 'b+,' based on improvements to BOM’s risk profile over the past five years. The agency also affirmed the Government Support Rating (GSR) at 'bbb-'. The upgrade is supported by India's strong medium-term growth potential. Fitch projects GDP growth above 6% for FY25 and FY26. Improvements included better underwriting practices and a diversified loan mix. BOM's common equity Tier 1 (CET1) ratio rose by 360bp to 16.1% in 9MFY25, driven by a fresh equity infusion of INR35 billion in October 2024. Fitch expects the CET1 ratio to settle slightly below 15% by FY25.