Bank of Maharashtra Eyes Government Stake Reduction Below 75%

Bank of Maharashtra plans to reduce government holding below 75%, in compliance with Sebi's norms, through further capital raises. The bank recently reduced the government's stake from 86.46% to 79.6%. The bank has a robust financial standing, with rising profits and reduced NPAs.

Bank of Maharashtra (BoM) is set to further lower the government's shareholding below 75%, thereby aligning with Sebi's minimum public shareholding norms, according to the bank's top official.

The bank's government stake has been reduced to 79.6% following a Rs 3,500 crore capital raise via Qualified Institutional Placements (QIP) in October 2024. BoM Managing Director and CEO Nidhu Saxena revealed plans for additional capital raising measures to meet regulatory requirements.

Despite some challenges in the current quarter, the bank anticipates raising capital in the next financial year. BoM has demonstrated strong financial performance, including a 36% increase in net profits and a reduction in gross NPAs, positioning it well for future growth.

(With inputs from agencies.)