Bank of Maharashtra , a state-owned lender, has announced plans to raise at least Rs 2,000 crore through a qualified institutional placement (QIP) or offer for sale. This strategic move aims to reduce the government's stake in the bank from the current 79.60% to below or up to 75.00%, aligning with regulatory requirements.

Compliance with SEBI Norms

CEO Nidhu Saxena stated that this initiative would help the bank comply with the Securities and Exchange Board of India's (SEBI) minimum public shareholding norms. These regulations require listed companies to maintain at least 25.00% free float, ensuring a minimum level of public ownership in publicly traded companies.

Government's Divestment Initiative

The Department of Investment and Public Asset Management has initiated the process as part of the government's broader initiative to reduce stakes in five state-owned banks. The government has until August 1, 2026, to comply with SEBI norms, providing a clear timeline for the stake reduction.

Dual Benefits: Regulatory Compliance and Capital Adequacy

The planned fundraise serves a dual purpose for Bank of Maharashtra:

1. Regulatory Compliance: Reducing the government's stake to meet SEBI's public shareholding requirements.
2. Capital Adequacy: Strengthening the bank's capital base to support business growth.

Previous Successful Fundraising

The bank has a track record of successful capital raising. Bank of Maharashtra raised Rs 3,500 crore through a QIP, which garnered strong investor interest. This previous success bodes well for the upcoming share sale.

Growth Targets

Looking ahead, CEO Saxena has set ambitious targets for the bank:

• 15.00% overall business growth for the current financial year
• 17.00% credit growth

These targets reflect the bank's confidence in its growth prospects and its ability to leverage the additional capital effectively.

Implications for Investors

This share sale presents an opportunity for institutional investors to increase their stake in Bank of Maharashtra. For the bank, it represents a significant step towards diversifying its ownership structure while ensuring compliance with regulatory requirements.

As the process unfolds, market observers will be keen to see the level of investor interest and the impact on the bank's share price and overall market perception.

Bank of Maharashtra , a prominent public sector bank, has joined forces with SBI Card to launch a new co-branded credit card, marking a significant expansion in the credit card market. The partnership introduces the 'Bank of Maharashtra SBI Card', offering three distinct variants tailored to meet diverse customer needs.

Three Tiers of Benefits

The new credit card lineup includes:

1. ELITE
2. PRIME
3. SimplySAVE

Each variant is designed to cater to different customer segments, promising premium shopping experiences and a range of benefits.

Features and Advantages

The Bank of Maharashtra SBI Card boasts an array of attractive features:

• Accelerated reward points
• Fuel surcharge waiver
• Utility bill payment options
• Travel and dining discounts
• Contactless payment functionality

These features combine Bank of Maharashtra's extensive reach with SBI Card's digital capabilities, offering cardholders a blend of convenience and rewards.

Availability and Accessibility

The co-branded credit cards will be available on both RuPay and VISA platforms, ensuring wide acceptance at millions of merchant outlets globally. Interested customers can apply for these cards through Bank of Maharashtra branches, making the application process accessible to a broad customer base.

Bank Profiles

Bank of Maharashtra

• Customer base: Over 3 crore
• Total business: Exceeding ₹5.46 lakh crore

SBI Card

• Cards in force: Over 20 million

This partnership leverages the strengths of both institutions, combining Bank of Maharashtra's extensive customer reach with SBI Card's expertise in the credit card market. The collaboration aims to provide enhanced financial services and rewards to customers across various segments, potentially reshaping the credit card landscape in India.

The launch of this co-branded credit card reflects the growing trend of partnerships between traditional banks and specialized financial service providers, aimed at offering more comprehensive and competitive products to consumers.