Bank of Maharashtra's CVR Rajendran spoke to CNBC-TV18 regarding government capital infusion of Rs 14,000 crore for the public sector banks and what are his expectations from the same.
Bank of Maharashtra may opt for QIP route or follow on public issue if it doesn‘t receive the entire amount from the government
More than 30 percent of Bank of Maharashtra's deposits are in interest-sensitive deposits, which come to more than Rs 1 crore, and unless the cost of deposits is increased, the bank may not be in a position to retain these deposits
Since their bank's base is small the credit growth in percentage terms appears to be large. So, the credit growth for the bank will remain above industry but will moderate to 16-18 percent in FY14, says CVR Rajendran, ED, Bank of Maharashtra.
AS Bhatacharya, chairman and managing director, Bank of Maharashtra aims to maintain its net interest margins (NIMs) at 3% ahead.
In an interview with CNBC-TV18 Madukant Sanghvi, ED of Bank Of Maharashtra said, " With the help of this bank, we will be able to make 8% capital adequacy ratio in Tier I level and the total capital adequacy will cross 14.5%."