Bank of Maharashtra has sought government approval to raise Rs 1,500 crore in three years.The bank intends to raise Rs 500 crore each year over the next three years.The bank is to raise capital either through a follow-on public offer (FPO), qualified institutional placement (QIP), or a perpetual preferential share issue.
The government currently holds 76 per cent in the bank. If the bank raises Rs 500 crore through FPO, the government holding will decline by 10 per cent, depending upon the market conditions.The bank expects a credit growth of 20 per cent and a deposit growth of 18 per cent in the current financial year.