Bank of Maharashtra looks to raise up to Rs 1,000 crore in fourth quarter

Bank of Maharashtra looks to raise up to Rs 1,000 crore in fourth quarter

Kolkata: State-owned Bank of Maharashtra is planning to mobilise up to Rs 1000 crore in bonds before the end of the fiscal.

Chief executive AS Rajeev said that the bank would raise Rs 500 crore in tier 2 bonds soon while it may go for another Rs 500 crore in additional tier 1 (AT1) bonds if pricing is attractive.

The government holds 93.33% in BoM.

“We are looking for Rs 500 crore under AT1 subject to good pricing. We will raise another Rs 500 crore with good pricing, it’s on the way,” Rajeev told ET in a texted message.

He said that the Pune-based lender with 13.65% capital adequacy ratio would not require capital immediately and the current capital raising is part of its growth plan for the next financial year starting April.

In July last year, the bank’s board approved a Rs 3000 crore capital mobilisation plan which includes Rs 2000 crore equity expansion.

The lender reported a 14% rise in third quarter net profit at Rs 154 crore while its asset quality improved. OPerating profit rose 7.2% at Rs 902 crore.

Its gross non-performing assets ratio fell to 7.69% at the end of December from 16.77% a year back.The ratio was at 8.81% at the end of September 30, 2020.

Net NPA ratio improved to 2.59% from 3.3% three months back and 5.46% a year back.

Its advances to the tune of Rs 1500 crore are under special mention accounts (SMA2) with overdue for 61-90 days, while Rs 1000 crore worth of loans are in the line for a debt restructuring.

The bank’s advances grew 11.74% year-on-year to Rs 1.05 lakh crore while retail loans grew 29% to Rs 27540 crore.

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