Bank of Maharashtra to raise up to Rs 600 cr via bonds

New Delhi: State-run Bank of Maharashtra on Tuesday said it will raise up to Rs 600 crore by issuing bonds on a private placement basis.

“The bank is proposing to raise capital by issue of Basel III-compliant unsecured, redeemable non-convertible tier-II bonds of base issue of Rs 200 crore with greenshoe option of Rs 400 crore aggregating to Rs 600 crore on private placement basis,” the lender said in a regulatory filing.

To comply with Basel-III Capital Regulations, banks need to improve and strengthen their capital planning processes.

These norms are being implemented to mitigate concerns on potential stresses on asset quality and consequential impact on performance and profitability of banks.

The Indian banking system has been implementing Basel III standards in phases since April 1, 2013.

Stocks of Bank of Maharashtra was trading at Rs 10.54 on BSE, down 0.57 per cent from its previous close.