Bank of Maharashtra to increase equity capital

Bank of Maharashtra has informed the BSE that a meeting of the board of directors of the bank will be held on December 22, 2012, to consider the proposal of raising equity capital by way of preferential allotment to Government of India and/or to qualified institutional buyers or rights issue. The government's shareholding as of September 2012 was nearly 79 per cent of the share capital.

The bank had a capital adequacy ratio of 10.75 at the end of September 2012. It had come down sharply from a level of 12.46 three months earlier as business volumes rose sharply in the second quarter. Risk weight assets rose from Rs 51,497 crore to Rs 59,059 crore in the second quarter of the fiscal.