Tag: bank of maharashtra

“Investors have shown a lot of enthusiasm in the bank’s scrip considering the promising performance of the bank since the last two years which resulted in a sharp rise in the bank’s share price. The Bank may come up with FPO in view of demand from retail investors in future at an opportune time,”bank’s MD & CEO A S Rajeev

Bank of Maharashtra, which has been adjudged best performer among PSBs for the last fiscal, is looking to come up with a follow-on public offer at an opportune time.

“Investors have shown a lot of enthusiasm in the bank’s scrip considering the promising performance of the bank since the last two years which resulted in a sharp rise in the bank’s share price. The Bank may come up with FPO in view of demand from retail investors in future at an opportune time,” bank’s MD & CEO A S Rajeev told ETBFSI.

The bank recently raised Rs 400 crore via qualified institutional placement as it took benefit of consistent performance in the last ten quarters and the current market scenario.

To support the projected growth and improve the CRAR level, the bank may further raise capital in the form of Tier I /Tier II bonds at an opportune time.

At present, the bank is well capitalised with CRAR as of Q1 FY22 at 14.46% as against the minimum requirement of 10.875%. The CET-1 capital ratio of the Bank stood at 11% as against the minimum requirement of 7.375%.

“Looking forward and considering present market condition, we are targeting growth in gross advances by 16-18% for the current fiscal, the bank’s Board has created an enabling provision to raise Rs 5,000 crore capital for business growth. We are projecting advances level of Rs 125,000 crore in this financial year,” Rajeev said.

Expansion plans

Bank of Maharashtra is on an expansion mode and wants to have branch presence in all the districts of the country. In the last fiscal, the bank opened 132 outlets, of which new branches are 86. The bank has been able to mobilise Rs 1,000 crore in just nine months of their operation.

“During current fiscal, we are all set for opening branches at 200 banking outlets with a hub and spoke model i.e. branches to act as hubs and surrounding centres through customer service points (CSPs) managed by Business Correspondents as spoke. We are targeting the Business centres, where ample opportunities are available for business growth, Rajeev said.

The bank plans utilisation of technology and data analytics to tap into previously untapped markets through product innovation & using artificial intelligence.


Reducing NPAs

Rajeev said the bank is taking conscious efforts to monitor recoveries including asset sales, one-time settlements etc. To push loan recoveries in stressed assets, the lender has come up with effective settlement schemes with attractive terms. “Keeping present scenario into consideration, we are also giving priority in small NPA accounts up to Rs 1 crore dues by extending compromise offer under non-discretionary and non-discriminatory policy. Recovery machinery at all levels are geared up through phone calls, emails, virtual interaction with the borrowers and through the Specialized SAMB and ARB branches,” he said. The bank organises recovery camps at regular intervals which helps in arriving amicable resolution. Mega e-auction through e-Bikray platform with appropriate publicity has been carried out including tie-up arrangements with real estate agencies at notified places to fetch favourable outcome, Rajeev said.