Bank of Maharashtra receives Rs588 crore in Tier-I capital

Bank of Maharashtra said today that the central government has infused Rs588 crore in Tier-I capital in the bank, in the form of perpetual non-cumulative preference shares.

The bank said in a statement to the Bombay Stock Exchange, that the instrument used for the funding was through the issue of perpetual non-cumulative preference shares. The shares have an annual floating coupon amounting to the repo rate plus a share spread of 100 basis points, readjusted annually based on the Repo Rate prevailing on the relevant date.

The perpetual non-cumulative preference shares would be part of Tier I capital and the capital infusion would strengthen the banks capital base and facilitate business expansion according to the statement.

The bank, which was started in 1935 with authorised capital was Rs10 lakh and issued capital of Rs5 lakh, has today grown to a network of 1,444 branches, 345 ATMs, a total business of over Rs90,000 crore.