Analyst Concall
Bk of Maharashtra aiming to raise equity capital by Mar-end
This story was originally published at 18:42 IST on 14 October 2025
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--Bank of Maharashtra: Will look to raise equity capital by Mar-end
--Bank of Maharashtra: Consciously not renewing high cost bulk deposits
--CONTEXT: Comments by Bk of Maharashtra mgmt in post-earnings analyst call
--Bank of Maharashtra: Plan to open 321 branches in 18 months
By Sagar Sen and Akash Mandal
NEW DELHI – Bank of Maharashtra aims to raise equity capital by the end of the current financial year to meet the 75% public shareholding norm. "At the opportune time, we are definitely going to do this," the bank's management told analysts Tuesday after its September quarter earnings.
The management said the bank has received board approval as well as regulatory approvals for the equity dilution, but is yet to take a decision on when to hit the market. Previously, the board had approved raising INR 75 billion through debt and equity.
The government had, in August 2024, allowed five public sector banks, including Bank of Maharashtra, until Aug. 1, 2026, to meet the public shareholding norm of 75%. The bank had conducted a qualified institutional placement in September last year, where the government's stake fell below 80%. Currently, the government stake in the bank is at 79.6%. With only a 4.6% stake sale left to meet the norms, the bank's management said it will choose the opportune time and mode for the stake sale.
As per the Securities Exchange Board of India's Securities Contract (Regulation) Rules, all listed companies, including public sector companies, must have a minimum public shareholding of 25%.
Earlier Tuesday, the public sector bank reported that its net profit for the September quarter rose 23% on year and 2.5% on quarter to INR 16.33 billion. The net interest income grew a healthy 15.7% on year to INR 32.48 billion. The bank reported its earnings during market hours and shares ended 4.3% lower at INR 55.11 on the National Stock Exchange.
Its Basel-III capital adequacy ratio fell to 18.13% as of September-end from 20.06% a quarter ago. The lender's management said that, although there is no immediate need for a capital raise, the additional funds could be utilised for an expansion plan, including the opening of new branches nationwide.
"The plan is to open 321 branches in the next 18 months," the management said. "We are fast expanding our presence in potential growth centers of the country." The bank will focus on various large cities outside Maharashtra for these new branches. As of Sept. 30, the bank had 2,665 branches across the country, out of which 1,159 were in Maharashtra.
The bank is also consciously reducing the share of high-cost bulk deposits in its overall deposits to lower costs. "Focus clearly stands out to have more and more low-cost deposits in the system. And the high-cost bulk, wherever we have identified, which is sitting in our deposit book, we have been very consciously not renewing the bulk high-cost deposits," the management said. End
Edited by Saji George Titus
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