BoM seeks Rs 1,000 cr from govt in FY15
The Bank of Maharashtra has sought Rs 1,000 crore capital infusion from the government and may hit the market next year
“We are not planning to hit the capital market this year. We can manage with internal accruals……we have asked for Rs 1,000 crore,” BoM Chairman and Managing Director Sushil Muhnot told reporters on the sidelines of FICCI organised 11th Banking Conclave.
The Union budget had made a provision of around Rs 11,000 crore for capital infusion in the public sector banks.
Government had allowed banks to reduce government holding to 51 per cent. Government holding in BoM is at 79 per cent. The bank had received Rs 800 crore last year.
When asked why the bank was not trying to hit the market this fiscal, Muhnot said presently they were focusing to improve the profitability for better valuation.
“We are also trying to improve the net interest margin from 2.7 per cent to three per cent and improving return on assets by 50 basis points. These will improve our valuation. With recent placement with LIC and some infusion from government we hope would not require any additional capital this year,” he said.
Meanwhile, the bank is planning to set up 110 new bank branches across the country this year.