Bank of Maharashtra to raise Rs 500 cr Tier-I capital

State-run Bank of Maharashtra plans to raise Rs 500 crore capital this fiscal to fund its expansion, a top official said.

"We will be raising Rs 500 crore through the Tier-I route in the current fiscal," Bank of Maharashtra Chairman and Managing Director Allen C A Pereira told reporters here.

Tier I capital primarily comprises equity and disclosed reserves. The bank is also looking at reducing its interest rates, both on the lending and deposit side, in the next one month, Pereira said.

"If we look at the industry, different banks have different headrooms to lower rates, according to their liquidity conditions. It can be 0.75-1 per cent," Pereira said.

The bank's asset liability committe will soon meet to assess the market conditions and decide the margin of rate cut, he said.