State-run Bank of Maharashtra (BoM) on Tuesday said the board has fixed floor price of ₹24.89 per share for the proposed ₹2,000 crore qualified institutional placement (QIP).

The committee of board has approved floor price of ₹24.89 per share, BoM said in a regulatory filing.

In April this year, the lender received board approval to raise Rs 5,000 crore by way of QIP/rights issue/ preferential issue or by issuing Basel III bonds.

Discount on issue

The bank may at its discretion offer a discount of not more than 5 per cent on the floor price so calculated for the issue, it said.

Fund Proceeds

This fund will be proceed for expansion of the loan book, which the bank is looking to grow by 16-18 per cent to around ₹1.25 lakh crore in this fiscal from ₹1.08 lakh crore as of March 31, 2021.

Company’s Performance

The bank has managed to bring its gross non-performing assets to 7.23 per cent as of March 31, 2021, from 18.64 per cent in September 2018, when it was under PCA.

Net NPAs stood at 2.48 per cent as of March 31, 2021.It has set a recovery and upgradation target of Rs 2,500-2,600 crore during the current year.

The lender is also expecting Rs 500 crore recovery from written-off accounts in this fiscal, Rajeev had said.

As of now, market capitalisation of the bank stands at ₹17,500 crore against ₹3,948 crore as of March 2019.


In FY22, the bank is targeting to bring down gross NPA to below 6 per cent and net NPA to below 2 per cent. Net interest margins (NIM) will remain above 3 per cent in this fiscal.

The lender is looking at opening 200 banking outlets with a hub and spoke model in this fiscal.

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