13-Year Breakout: PSU Stock Below Rs 100 Nears Cup and Handle Breakout; FIIs and DIIs have Increased Their Stake, While Its Dividend Yield Is Better Than SBI’s

The bulls are back in action on D-Street with Nifty trading close to the important psychological level of 26,000. The market breadth is seen improving in the last couple of trading sessions after the announcement of the India–U.S. interim trade deal framework.

Amid this buoyancy, there is one stock which has caught attention, Bank of Maharashtra. Bank of Maharashtra is engaged in providing banking services. It is one of the 12 public sector banks (PSBs) post the consolidation of PSBs and has existed since 1935. The GoI holds about 73.60 per cent stake in the bank as of December 31, 2025.

Technical Perspective: 13-Year Long Cup and Handle Pattern Breakout

Now, here’s why the Bank of Maharashtra share price has caught the attention. The stock is on the verge of breaking out of a 13-year-long pattern. On the monthly chart, this structure resembles a Cup-and-Handle formation. Back in 2013, the stock touched a high of Rs 66.20. Thereafter, it corrected over the years and even traded in single digits.

Post the Covid recovery, along with the broader market uptrend, the stock also rebounded and climbed to the Rs 72-73.50 zone. From there, the pullback was relatively shallow, leading to the formation of the ‘handle’. The stock is now close to breaking this 13-year-long pattern.  

The 14-period RSI on the monthly chart is in bullish territory, i.e. above the level of 60 and is in a rising trajectory, thus validating positive bias. Meanwhile, the monthly MACD has generated a bullish crossover, further supporting the positive bias.

FIIs and DIIs Increased Their Stake to the Highest Level

Moving on from the technical side to shareholding and the fundamentals of the company. From the shareholding pattern, FIIs and DIIs have increased their stake to the highest level since 2023. As of December 31, 2025 shareholding pattern shows FIIs hold 4.92 per cent stake, while DIIs hold 13.50 per cent stake. FIIs and DIIs both have increased their stake from the previous quarter by 2.57 per cent and 3.44 per cent, respectively.

Bank of Maharashtra Q3 Result Performance: Clocked the Highest Quarterly Profit and Asset Quality Improved

Shifting focus on fundamentals, the bank clocked its highest quarterly profit of Rs 1,779 crore. Further, the gross NPA reduced from 1.72 per cent last quarter to 1.60 per cent and net NPA improved from 0.18 per cent to 0.15 per cent. The Bank’s retail segments showed significant growth: Home loans up 28 per cent, vehicle loans up 54 per cent and gold loans up 56 per cent, contributing to a retail growth of 36 per cent YoY.

Bank Surpassing Its Guidance

What was interesting to notice is the fact that both Return on Assets (ROA) and Return on Equity (ROE) were above the guidance. ROA was at 3.87 per cent, above the guidance of 3.75 per cent, while ROE was 23.79 per cent above the guidance of 20 per cent.

Management Commentary Highlights of Bank of Maharashtra: Target of Opening 1,000 Branches Over 5 Years

The bank’s focus remains on maintaining high asset quality, with stress levels well managed and NPA ratios below guidance thresholds. The management emphasised the importance of branch expansion, with 116 branches operational out of a planned 321 and a broader target of opening 1,000 branches over five years. Further, it has expressed confidence in sustaining high double-digit growth over the next three to four years, driven by branch expansion and strategic rebalancing of the loan portfolio. The bank’s gold loan portfolio has grown significantly, with Rs 12,000 crore in retail gold loans, Rs 9000 crore in agri gold loans and Rs 1,000 crore in MSME gold loans, with yields around 9 per cent.  

Last but not least, this PSU banking stock offers a dividend yield of 2.26 per cent, which is way better than the country’s largest public-sector lender, SBI.  

Disclaimer: The article is for informational purposes only and not investment advice.