Bank of Maha to allot pref shares to govt for Rs 300 cr

State owned Bank of Maharashtra has approved issuance of preferential shares to the government for capital infusion of Rs 300 crore.
The board of the bank in its meeting today approved the proposal of raising of equity capital up to Rs 300 crore by way of preferential allotment in favour of government, the bank said in a BSE filing.
Pune-based Bank of Maharashtra on March 16 had received communication from the government for Rs 300 crore capital allocation plan.
The bank said issue price of shares to be allotted will be decided on April 3.
The government has approved second tranche of capital infusion in public sector banks to enhance their capital base.

The first tranche was announced in July with the objective of enhancing their lending operations and enabling them to raise more money from the market.
It has already announced a fund infusion of Rs 22,915 crore, out of the Rs 25,000 crore earmarked for 13 PSBs for the current fiscal.
Stock of the bank closed 1.19 per cent higher at Rs 34.10 on BSE today.