Bank of Maharashtra Plans to Raise Rs 1,500 Crore through Bonds for Business Growth
Bank of Maharashtra, a public sector bank, has announced its plan to raise Rs 1,500 crore through bonds in order to fuel its business growth. The bank has scheduled a bond auction on September 14, with allotment to bidders taking place on September 18.
Bank of Maharashtra Aims to Raise Rs 1,500 Crore
As part of its fundraising strategy, Bank of Maharashtra intends to raise Rs 1,500 crore, out of which Rs 1,250 crore will be raised through Basel-3 compliant Tier-2 bonds that will mature in 10 years. These bonds offer the option of a call after five years or a coupon payment thereafter.
Bond Tenure Set at 10 Years
In a stock exchange filing, Bank of Maharashtra stated its intention to raise funds through a private placement of Basel-3 compliant Tier 2 bonds. The issue size of the bonds is Rs 250 crore, with a green shoe option of Rs 1,250 crore. The bond will have a tenure of 10 years.
Bank of Maharashtra Reports Increased Loan Supply
Bank of Maharashtra has witnessed a significant increase in its loan supply, with a growth of 24.93 percent to reach Rs 1.75 lakh crore in the June quarter. The bank’s outstanding loan at the end of June 30, 2022, stood at Rs 1.40 lakh crore.
Impressive Growth in Overall Business
The bank recorded a growth of 24.82 percent in its total business, including total advances and total deposits, reaching Rs 4.19 lakh crore at the end of June 2023. This marks a substantial increase from the Rs 3.36 lakh crore recorded in the same quarter of the previous fiscal year.
Increase in Deposits for Bank of Maharashtra
Bank of Maharashtra has experienced a growth of 24.73 percent in its total deposits, which now amount to Rs 2.44 lakh crore compared to Rs 1.95 lakh crore in the first quarter of the previous fiscal year. The Current Account to Savings Account (CASA) ratio during this quarter was 50.97 percent of the total deposits.
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News Title: Bank of Maharashtra Bonds Interest Rates on September 14, 2023.
