Bank of Maharashtra , a prominent public sector bank, has reported significant growth across key business segments, showcasing its strong performance in the banking sector.

Strong Growth in Global Business and Deposits

The bank has achieved an impressive 14.22% year-on-year growth in global business, reaching ₹5,63,987 crore. This substantial increase reflects the bank's expanding market presence and customer base.

In terms of deposits, Bank of Maharashtra has shown robust growth:

The bank's CASA (Current Account Savings Account) ratio has improved to 50.35%, indicating a healthy mix of low-cost deposits.

Impressive Advances Growth

Bank of Maharashtra has also demonstrated strong growth in its lending operations:

The retail advances segment has shown exceptional growth of 37.39%, reaching ₹78,195 crore. This significant expansion in retail lending indicates the bank's focus on catering to individual customers and small businesses.

Improved Credit-Deposit Ratio

The bank's Credit-Deposit (CD) ratio has improved from 78.72 to 82.05, suggesting more efficient utilization of deposits for lending activities.

Conclusion

Bank of Maharashtra's performance demonstrates its ability to grow across various business segments. The significant expansion in retail advances, coupled with strong growth in deposits and overall business, positions the bank well in the competitive banking landscape. As the bank continues to focus on both retail and corporate segments, it appears to be on a trajectory of balanced and sustainable growth.

Note: The financial figures mentioned are provisional and subject to review.

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.