Speaking to reporters on the sidelines of FIBAC 2025, organised by FICCI and the Indian Banks’ Association, Saxena said the upcoming share sale would help the bank strengthen its capital adequacy while reducing the government’s stake
According to its current market capitalisation, if the bank raises around Rs 2,000-2,500 crore, the government's holding will fall. Representational Pic
State-owned Bank of Maharashtra is confident of meeting the minimum public shareholding requirement of 25 per cent after another tranche of fundraising in the current fiscal, Managing Director & CEO Nidhu Saxena said on Monday.
Speaking to reporters on the sidelines of FIBAC 2025, organised by FICCI and the Indian Banks’ Association, Saxena said the upcoming share sale would help the bank strengthen its capital adequacy while reducing the government’s stake, as per PTI.
The finance ministry has directed five public-sector banks to raise public shareholding to 25 pc by 1 August 2026.
Currently, the government holds 79.6 per cent stake in the Pune-headquartered bank.
According to its current market capitalisation, if the bank raises around Rs 2,000-2,500 crore, the government's holding will fall.
l below the 75 per cent mark, Saxena said, adding that it has taken an approval of Rs 7,500 crore fund raise via debt and equity to be on the safer side, according to PTI.
In October, BoM raised Rs 3,500 crore through a QIP, which resulted in the public shareholding in the bank rising to 20.4 per cent from 13.5 per cent at the end of September.
According to Saxena, the bank is yet to firm up whether the fundraising will happen through a qualified institution route or offer for sale route. "We are still evaluating the mechanism," he said.
BoM is comparatively well-positioned among the five public-sector banks in which the government has to lower its stake.
The government holds 94.6 per cent stake in Indian Overseas Bank, 93.9 per cent in Punjab & Sind Bank, 91 per cent in UCO Bank, and 89.3 per cent stake in Central Bank of India.
The state-owned Bank of Maharashtra registered a net profit of Rs 1,593 crore in the June quarter, up 23 per cent helped by an increase in interest income.
Speaking about the financial results, Saxena said that like many of his peers, BoM is not too worried about fall in treasury income during the Jul-Sept quarter.
He also said that transactions on the Reserve Bank of India's Unified Lending Interface are picking up, although at a slower pace. Over the course of time, I expect transactions will improve, he said, reported PTI.
(With PTI inputs)
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