Bank of Maharashtra to raise Rs 650 cr through Upper Tier II bonds

Kolkata, Jul 6 (UNI) Bank of Maharashtra will raise Rs 650 crore through Upper and lower Tier II bonds and perpetual debt in the current financial year to meet its growth requirements.

Speaking to UNI here today, Bank of Maharashtra CMD M D Mallya said, ''We will be raising funds to meet the growth needs of our balance sheet.'' ''Depending on the market conditions, we will raise Rs 650 crore of Upper tier-II and (lower) tier-II capital in the current financial year,'' he said.

The upper tier-II bonds will be issued in July-September, and subsequently go for lower tier-II issues.

At present, the Pune-based bank's capital adequacy ratio is around 12 per cent.

The state-run bank aims to grow its credit 28 per cent and deposit 23 per cent in the current financial year, he said. As of March 31, 2007, the bank's advances stood at Rs 23,400 crore, while deposits were at Rs 34,000 crore. The total business of the company stood at Rs 57,400 crore in the fiscal ended on March 2007.

''BOM being a common mass bank, our retail customers stand at 11.5 million,'' he said.

The Current and Savings Account(CASA) also registered a growth of 43.4 per cent of the bank's total business.

UNI