Bank of Maharashtra may opt for QIP route or follow on public issue if it doesn‘t receive the entire amount from the government
In an interview to CNBC-TV18 CVR Rajendran, ED, Bank of Maharashtra said that the bank’s tier I capital stands below 8 percent and the public sector lender is looking at capital infusion of Rs 2,000 crore of during the current year.
He further added that the bank may opt for QIP route or follow on public issue if it doesn’t receive the entire amount from the government.
Below is the edited transcript of CVR Rajendran’s interview with CNBC-TV18
Q: What is your tier I capital and how much capital infusion will you require?
A: We are slightly below 8 percent tier I capital and we were looking for about Rs 2,000 crore of capital infusion during the current year.
Q: Have you been communicated about how much capital will be infused?
A: Not yet.
Q: Out of this Rs 2,000 crore how much are you asking for from the government and how much would you require via the other equity dilution if that is the case?
A: If government is giving entire Rs 2,000 crore we will be happy about it. We will not look for other option. Government is not giving the entire Rs 2,000 crore we ask their permission to go through QIP route or follow on public issue also.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.