Bank of Maharashtra board approves raising Rs 3,000 crore

Kolkata: The board of Bank of Maharashtra has approved a Rs 3000 crore capital raising plan in the next one year while the bank said it is comfortably placed to fund growth this fiscal.

The plan includes Rs 2000 crore equity raising in follow-on public offering rights issue and qualified institutional placement (QIP) and Rs 1000 crore through issue of tier 2 bonds.

"The present market condition is not conducive for raising fresh equity capital. The board has created an enabling provision for the future," bank chief executive AS Rajeev told ET.

"The bank is now adequately capitalised to achieve current year's business targets," Rajeev said.

He said the bank is looking to grow advances 10-12 percent this fiscal. Its CRAR stood at 13.5 percent at the end of March with tier capital being at 10.67 percent.

"The demand has started to pick up, although it is still lower than the pre-Covid levels.At present, the agriculture sector/rural economy is likely to pick up primarily due to good monsoon expected this year, which will further boost our GDP growth. In other sectors, recovery is likely to pick up from the third quarter onwards, subject to the then prevailing Covid situation," the CEO said.