BoM plans to raise capital of up to ₹7,500 crores for FY24 through various modes including follow-on-public offers, Qualified Institutional Placement(QIP), preferential issues, etc.
Bank of Maharashtra (BoM), one of India’s leading public sector banks, announced raising funds for 2023-2024 amounting to up to ₹7,500 crores in its board meeting on April 24. The bank aims to raise the finances through a combination of modes, including follow-on-public offers, good Institutional Placement( QIP), preferential issues, and the allocation of BASEL III or other securities grounded on the styles approved in the meeting.
Credit Growth and Loan Performance
The announcement to raise funds follows the bank’s report of credit growth of 29.59% at ₹1.75 lakh crore in the January-March period. The total advances and deposits for the bank rose by 21.28% to ₹4.09 lakh crore in the quarter that ended in March FY23, compared to the same period a year ago.
BoM was the top performer among state-owned lenders in loan growth percentage during Q3 of 2022-23, as per the latest quarterly numbers of the public sector bank. It recorded a 21.67% increase in gross advances YoY and has consistently maintained the top slot in credit growth in percentage terms for the past 10 quarters, despite COVID-19 pressures. Union Bank of India followed with a growth of 19.80%, while the country’s largest lender, SBI, stood at the fourth spot with a 16.91% rise in advances growth.
BoM’s First Dedicated Branch for Startups
BoM recently launched its first exclusive branch dedicated to startups in Pune, providing comprehensive support for their growth journey. The inauguration was attended by BoM MD and CEO AS Rajeev, who highlighted India’s growing prominence as a hub for startups and unicorns. He emphasized the importance of the startup sector and stated that the bank’s new branch would cater to all their requirements, from the ideation phase to the eventual issuance of IPO/FPO.
Before in February, BoM surfaced as the top pantomime among state-possessed lenders in terms of loan growth chance during the third quarter of 2022- 23. According to the rearmost daily figures of the public sector bank( PSB), the Pune- grounded lender recorded a 21.67 increase in gross advances on a time-on-time basis. The bank has constantly maintained the top niche in credit growth in chance terms for the once 10 diggings, despite COVID-19 pressures.
BoM was followed by the Union Bank of India with19.80 growth, while the country’s largest lender, State Bank of India( SBI), stood at the fourth spot with a a16.91 rise in advances growth.
BoM’s First Devoted Branch for Startups
In March, BoM opened its first devoted branch for startups in Pune, aiming to give all kinds of support to an incipiency during its growth trip. While addressing the induction, AS Rajeev, the MD and CEO of BoM, expressed that India has emerged as a significant hub for startups and unicorns worldwide. We must start our devoted branch for startups, where we shall feed all their requirements– right from the commencement to the allocation of IPO/ FPO.”
The bank plans to raise capital for the fiscal time 2023- 24 adding up to ₹ 7,500 crores through colourful modes, including follow-on-public offers, good Institutional Placement( QIP), preferential issues, etc. The bank may also seek to raise capital through the issue of BASEL III or similar securities grounded on the styles approved in the meeting.
According to a disclosure made by the Bank of Maharashtra to the Bombay Stock Exchange (BSE), a meeting of the Board of Directors of the Bank has been scheduled on Monday, April 24, 2023, in Pune, to discuss raising capital for the financial year 2023-24. The Bank plans to raise INR 7,500 crore through various means, including a Follow-on Public Offer (FPO), Rights issue, Qualified Institutional Placement (QIP), Preferential issue, or any other combination of these methods. Additionally, the Bank may issue BASEL III or similar securities as permitted under applicable laws, subject to necessary approvals.