Bank of Maharashtra plans to raise around Rs1000 crore this year
Will look at raising Basel III-compliant additional Tier-1 capital instead of taking up further equity right now, says CMD
Mumbai: State-run Bank of Maharashtra on Tuesday said it plans to raise around ₹ 500-1,000 crore by issuing Basel III-compliant Tier-I bonds this year.
“We will look at raising Basel III-compliant additional Tier-1 capital instead of taking up further equity right now. We may raise around ₹ 500 crore to ₹ 1,000 crore during this fiscal year," bank’s chairman and managing director S. Muhnot told reporters on the sidelines of an event organised jointly by Federation of Indian Chambers of Commerce and Industry (Ficci) and Indian Banks’ Association (IBA). Currently, the city-based bank’s capital adequacy ratio is around 11.
The bank sees its credit growth to moderate to around 12% to 15% this fiscal. “We are looking at around 12% to 15% growth this fiscal year as compared to 18% to 20% last year," Muhnot said.
He said there are some signs of improvement in the manufacturing sector, adding that it would take one or two quarters for it to translate into growth in the banking system.
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