Bank of Maharashtra to raise Rs 300 cr

Bank of Maharashtra will raise Rs 300 crore by September this year as Tier I and Tier II capital by issuing bonds, the bank executive director M G Sanghvi said today.     

To meet its capital needs, Sanghvi said the bank has sought recapitalisation of Rs 1,500 crore from the government over a period of three years.     

"We hope to get the government approval by December," he told reporters on the sidelines of Banking Colloquium 2009 organised by Confederation of Indian Industry (CII) here today.

Recapitalisation is needed to maintain a credit growth of 20 per cent for the next three years, Sanghvi said. 

With the present CAR of 12 per cent, the bank is targeting a capital adequacy of 13 per cent by March 2010. The business target by March 2010 was Rs one lakh crore (Rs 87,000 crore). 

Sanghvi said the bank would open 75 branches and ATMs across the country to commemorate its 75 years of existence.