RBI turns down Maha Bank's request to set-off losses on share premium

The bank would look for higher equity infusion from the central government, its promoter, and also look at tapping tier-II bonds to enhance capital adequacy

The Reserve Bank of India (RBI) has rejected Bank of Maharashtra's (Maha Bank's) request to allow it to set-off the accumulated losses of Rs 7,360.29 crore against the balance lying in share premium account and revenue reserve account.

The RBI, through a letter on September 27, 2019, has intimated its inability to accede to the request by the bank for setting-off the accumulated losses of Rs 7.360.29 crore (at end of March 2019), as against the balance lying in share premium account and revenue reserve account. 

The public sector lender's stock closed two per cent lower at Rs 10.8 per share on