BOM PLANS TO RAISE UP TO ₹2,000 CRORE THROUGH QIP

State-run Bank of Maharashtra is looking to raise up to ₹2,000 crore through qualified institutional placement (QIP) route before Julyend, its Managing Director and CEO A S Rajeev said.

In April this year, the Punebased lender had received board approval to raise ₹5,000 crore by way of Qip/rights issue/ preferential issue or by issuing Basel III bonds.

“We are planning to raise around ₹2,000 crore equity through QIP immediately. The process has already started and we will raise it before July-end,” Rajeev said.

The base size of the issue is ₹1,000 crore and it has a greenshoe option of another ₹1,000 crore, he said.

Following this equity raise, the government’s holding in the bank will reduce to below 85% from 94% currently, and the capital adequacy ratio will improve to 17-18% from around 14.49% as of March 31, 2021, Rajeev said.

This fund will be deployed for expansion of the loan book, which the bank is looking to grow by 16-18% to around ₹1.25 lakh crore in this fiscal from ₹1.08 lakh crore as of March 31, 2021, he said.