Its peer Indian Overseas Bank (IOB) also said it will cut its MCLR by 10 basis points (bps) across all tenors effective September 10.
The sources said the four lenders are Punjab & Sind Bank, Bank of Maharashtra, UCO Bank and IDBI Bank, in which the Indian government owns majority stakes through direct and indirect holdings.
Total income of the Bank increased to Rs 3,264.81 crore during April-June, 2020-21 from Rs 3,191.88 crore in the year-ago same period.
Total income increased to Rs 3,264.81 crore during April-June, 2020-21 from Rs 3,191.88 crore in the year-ago same period, Bank of Maharashtra said in a regulatory filing.
The first part of the plan would be to sell majority stakes in Bank of India, Central Bank of India, Indian Overseas Bank, UCO Bank, Bank of Maharashtra and Punjab & Sind Bank, leading to an effective privatisation of these state-owned lenders, a government official said.
The Pune-headquartered bank said the board has okayed to issue equity shares of the lender to the government for Rs 831 crore on a preferential basis.
The loans to MSMEs were offered majorly under the government's Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) and the lender's emergency credit line for COVID-19.
Pune-headquartered Bank of Maharashtra (BoM) has reduced one-year MCLR to 7.50 percent from 7.70 percent.
The total income during the January-March quarter of 2019-20 rose to Rs 3,198.30 crore from Rs 3,160.79 crore in the year-ago quarter, the bank said in a release.
The revision in RLLR rates will be effective from June 8, the bank said in a release.
The employees of the bank have decided to give up their one-day salary and two days of leave encashment to contribute towards the fund, a release said.
After facing backlash over social media after publication of this report, the bank said it had withdrawn the circular about selling insurance to customers
"The bank is proposing to raise capital by issue of Basel III-compliant unsecured, redeemable non-convertible tier II bonds of base issue of Rs 200 crore with green shoe option of Rs 400 crore aggregating to Rs 600 crore on private placement basis," the lender said in a regulatory filing.
For digital transactions, the government has given a target of 4,000 crore digital transactions for the current fiscal.
Net interest margins (NIM) stood at 2.86 per cent compared to 2.41 per cent in the year-ago period.