Maharashtra Bank allots 10.52 cr shares to govt for Rs 394 cr

Post the issuance, govt's holding in the bank would increase to 81.61%

Bank of Maharashtra today said it has allotted over 10.52 crore equity shares to the government valued at Rs 393.99 crore in exchange of infusion of capital into the bank.

"On receipt of the funds from the government, the Board of Directors of the Bank at its meeting held today, has issued and allotted 10,51,50,787 equity shares at the issue price of Rs 37.47 per equity shares on preferential basis to government," it said in a regulatory filing.

The equity allotment was decided at the board meeting of the bank today.

The shares so allotted will be locked in for a period of three years from the date of receipt of trading approval from stock exchanges, it added.

Post the issuance, the government's holding in the bank would increase to 81.61% from the existing 79.80%.

Earlier in August, the government had decided to infuse Rs 20,088 crore in 13 PSU banks, including SBI, Punjab National Bank, Bank of India, IDBI, Union Bank of India, Canara Bank, Corporation Bank and a few others.

The government has laid out a road map for Rs 70,000 crore of capital infusion in PSU banks over four years.

Of this, Rs 25,000 crore each is marked for 2015-16 and 2016-17 and Rs 10,000 crore each in 2017-18 and 2018-19.

It has estimated a capital requirement of Rs 1.80 lakh crore for PSU banks over four years. Of this, banks will have to raise Rs 1.10 lakh crore from the market.