Pune: Public sector lender Bank of Maharashtra (BoM) has announced plans to raise ₹2,000 crore through an equity issue by FY26. The move aims to comply with SEBI’s requirement of 75% public shareholding by August 2026. Currently, the Government of India holds nearly 80% in the bank.
Regulatory Compliance Drive
BoM’s board has approved the capital-raising plan for FY25-26. Managing Director and CEO Nidhu Saxena confirmed the development during the FICCI-IBA event. The bank is evaluating the mode and timing of the fundraise.
The options include an Offer for Sale (OFS) of part of the government’s stake or a fresh equity issuance. The proposed issue is expected to reduce the Centre’s shareholding to below 75%, aligning with SEBI norms.
Capital Strategy and Market Standing
Saxena noted that the quantum of equity would be determined by prevailing market prices. “Even at the current price, around ₹2,000 crore should suffice,” he said. On Monday, the stock closed 0.77% lower at ₹54.35 per share on BSE.
In October 2024, the bank raised ₹3,500 crore through a Qualified Institutional Placement, cutting the government’s stake by 7% to 79.6% as of June 30, 2025.
Strong Capital Position
BoM remains well-capitalized, with its capital adequacy ratio at 20.06% and Common Equity Tier 1 ratio at 15.62% at the end of June 2025. The planned equity issue will further strengthen its capital base while meeting statutory shareholding norms.
About Bank of Maharashtra
Bank of Maharashtra, a leading public sector bank headquartered in Pune, serves customers across India with a wide branch network. Known for its strong retail and corporate banking presence, the bank continues to play a key role in extending financial inclusion and supporting India’s economic growth.
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