Bank of Maharashtra (BoM) has planned to raise Rs 7,500 crore in 2025 in capital to reduce the government's stake from 79 percent to below 75 percent, aligning with regulatory expectations, said CEO Nidhu Saxena.
During the post-earnings press call, Saxena said the board-approved capital will be raised though a mix of tier 1 and tier 2 instruments, with the exact composition to be determined based on market conditions, interest rates, and liquidity.
Addressing the reported dip in non-interest income, primarily attributed to a decline in treasury income, CEO said the bank consciously chose not to book Rs 350 crore in potential treasury profits.
“We anticipated further rate cuts and softening yields, which would yield better profits later,” Saxena explained saying that it was a deliberate strategy to hold securities rather than sell them.
To further enhance the bank's income stream, BoM will bet on strategic tie-ups, including potential credit card partnerships, he said.
On the Current Accounts and Savings Account (CASA) front, Saxena said, he is confident that the company will maintain its CASA deposits, despite the falling interest rate environment.
The bank, he said, has implemented a multi-pronged strategy, including a dedicated vertical to tap institutional CASA from Central and State governments.
He also projected a double-digit growth in retail, agriculture, MSME and corporate segments over the next two to three quarters.
He also said, in addition to the 500 branches opened in the last five years, the bank will now target to open 1,000 more in the next five, with 200-220 annually.
“New branches in high-growth centres are bringing in core, sustainable retail deposits,” he added.
State-owned Bank of Maharashtra on April 25 posted a 23 per cent rise in net profit to Rs 1,493 crore in the fourth quarter ended March 2025, aided by rising interest income.
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