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Bank of Maharashtra to raise Rs. 650 cr.

NEW DELHI: Bank of Maharashtra is likely to raise Rs. 650 crore through bonds or hybrid instruments in the remaining part of this fiscal to meet a strong demand for credit and provide capital for operational risks.

"We may raise up to Rs. 650 crore more in the current financial year to maintain a capital adequacy ratio of above 11.5 per cent," Chairman, M. D. Mallya, said. The funds will be used for meeting strong credit growth and make provisions for operational risks under stringent Basel II norms which Indian banks will adopt from March 2007.

The bank had a capital adequacy ratio of 11.4 per cent as on June but the ratio has increased after the bank borrowed Rs. 225 crore through bonds in the first week of July. It will raise Rs. 650 crore through upper Tier-II bonds or Tier-I hybrid instruments and the timing of the issue will depend on market conditions. — PTI

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