Bank of Maharashtra revises MCLR; seeks fundraising via capital markets; will issue shares to Govt for Rs831cr

The bank has scheduled a board meeting this week where it will consider various options for fundraising.

Jul 07, 2020 04:07 IST India Infoline News Service

Bank of Maharashtra (BoM) has announced a host of development on Tuesday. To begin with, the bank has reduced its Marginal Cost of Funds based Lending Rate (MCLR) with immediate effect. Further, the bank has scheduled a board meeting this week where it will consider various options for fundraising.

To exchanges, BoM said, "This is to inform that in terms of RBI guidelines, bank reviewed its lending rates and decided to reduce Marginal Cost of Funds based Lending Rate (MCLR) w.e.f. 07.07.2020."

Now the bank's MCLR stands at 7.50% on 1-year tenor, while a 7.30% rate will be applicable at 7.30% and 7.20% on 6-months and 3-months tenor respectively. For overnight and one-month tenor, the rate is set at 7.10% and 7% respectively.

Further, the bank said the meeting of board of directors will be held on July 10, 2020, at Pune to consider following agenda:

1. Raising of capital through FPO/Rights issue/QIP/preferential issue or any other mode or combination thereof and/ or through issue of BASEL III Bonds or such other securities as may be permitted under applicable laws etc. subject to the necessary approvals.

2. Issue of equity shares to Government of India on preferential basis aggregating to Rs831cr received by the bank in March, 2020, subject to the necessary approvals.

Following the announcement, the bank's stock ended at Rs10.91 per piece up by 0.65%. The stock has clocked an intraday high and low of Rs11.21 per piece and Rs10.63 per piece respectively.

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