Bank of Maharashtra board okays raising Rs 3,000 cr via equity, bonds

State-owned Bank of Maharashtra on Friday said its board has approved a proposal to raise up to Rs 3,000 crore through the issuance of equity shares as well as bonds.

The board of directors at a meeting on Friday considered and approved "raising of capital in aggregate up to Rs 2,000 crore by way of preferential allotment to the Government of India/FI/others/or by way of qualified institutional placement issue/further public issue/rights issue and or/additional tier-1 bonds", the bank said in a regulatory filing.

The board also gave its approval to additional fundraising of Rs 1,000 crore through Basel-III-compliant tier-I and -II bonds or other such securities at an appropriate time, it added.

The Pune-headquartered bank said the board has okayed to issue equity shares of the lender to the government for Rs 831 crore on a preferential basis.

It also approved to "set-off the accumulated losses of the bank as on March 31, 2020, against the balance available in the share premium and special reserves account of the bank as on the date of set-off so as to present a true and fair view of the financial position of the bank and to take the same into account during the current financial year 2020-21," the filing said further.

In 2019-20, Bank of Maharashtra earned a net profit of Rs 389 crore, against a loss of Rs 4,783 crore in the previous financial year.

The bank's shares closed at Rs 11.57 apiece on the BSE, down 0.86 per cent from the previous close.