Bank of Maharashtra plans to raise upto ₹3,000 crore by issuing infrastructure bonds; check details

According to few bankers privy of the matter, the Indian public sector bank (PSB) is mulling to raise up to ₹3,000 crore through its first issue of infrastructure bonds that matures in 10 years. The said amount of $358.27 million or ₹3,000 crore includes a greenshoe worth ₹2,500 crore.

Bank of Maharashtra has invited coupon and commitment bids for the aforestated issue this week on Thursday, August 1, 2024, the bankers noted.

The state-owned lender has already raised an amount of ₹1,000 crore by issuing Basel III compliant tier II bonds earlier this month, which will mature in 10 years at a coupon rate of 7.89%.

Further, the public sector bank’s Board approved raising long-term bonds, that is, infra bonds, up to an amount of ₹10,000 crore on July 18, 2024. The amount will be raised in multiple tranches through a public issue or private placement during the ongoing financial year 2025 (FY25).

The Pune-headquartered Indian bank reported a healthy double-digit rise in net profit for quarter ended June 30, 2024, at ₹1,293 crore, jumping 46.64% year-on-year (YoY) as against ₹882 crore in the same period last year.

Bank of Maharashtra’s Net Interest Income (NII), an important profitability metric, grew nearly 20% to ₹2,799 crore during the April to June 2024 period, compared to ₹2,340 crore reported for the same period last year. Its gross advances also followed a similar trend, increasing 19% YoY in Q1 FY25 to ₹2,09,031 crore as opposed to ₹1,75,676 crore in the year-ago period.

The lender’s operating profit improved 23.13% year-on-year to ₹2,294 crore in the June 2024 quarter as compared to ₹1,863 crore in the corresponding quarter of the previous fiscal year.

The bank’s asset quality improved in the June 2024 quarter, as gross Non-Performing Asset (NPA) dropped significantly to 1.85% from 2.28% last year, while net NPA contracted to 0.2% in Q1 FY25 from 0.24% last year.

Bank of Maharashtra shares closed 1.06% lower at ₹66.9 per share on National Stock Exchange (NSE). The stock is trading near its 52-week high level of ₹73.5 per piece recorded last month on June 3, 2024.