 "Bank of Maharashtra eyes QIP of Rs 2,500 cr in FY26 to support biz growth")
Public sector lender Bank of Maharashtra is planning to go for another round of equity capital raise in the next financial year (FY26) to support business growth and reduce the government holding to 75 per cent. The fresh equity capital raise could be around Rs 2,500 crore through institutional placement.
In October 2024, Pune-based lender had raised equity capital of Rs 3,500 crore through Qualified Institutional Placement (QIP). It issued share equity at Rs 57.36 per share. Consequently, the government’s holding was reduced from 86.46 per cent to 79.60 per cent.
Nidhu Saxena, managing director and chief executive, BoM in a press conference said banks have dispensation available to meet minimum public holding (at least 25 per cent) by August 2026.
“However, the bank has plans to meet the timeline much before the deadline. There is no immediate need for such a raise since there is adequate capital now but the way the bank is growing and looking at new sectors and segments, we can look at raising (more capital). Bank will take appropriate decisions on this,” Saxena said.
Its capital adequacy ratio (CAR) stood at 18.71 per cent with Common Equity Tier 1 ratio of 13.60 per cent at end of December 2024.
Meanwhile, the bank reported 35.82 per cent year-on-year (Y-o-Y) growth in net profit of Rs 1,406 crore in the quarter ended December 2024 (Q3Fy25), as against Rs 1,036 crore posted in Q3FY24. Its Net Interest Income (NII) grew by 19.37 per cent on Y-o-Y basis to Rs 2,943 crore in Q3Fy25 as against Rs 2,466 crore for Q3Fy24.
Its gross advances grew by 21.19 per cent Y-o-Y basis to Rs 2.28 trillion. Its total deposits were up by 13.54 per cent on a Y-o-Y basis to Rs 2.79 trillion. The share of low cost money – current account and savings account (CASA) – stood at 49.28 per cent. It has guided for maintaining CASA level of about 50 per cent.