Bank of Maharashtra to raise up to ₹1,000 Crore through Tier-II bond sale

20 Jun 2024 , 12:50 PM

Bank of Maharashtra is expected to raise up to ₹1,000 Crore by issuing 10-year tier-II bonds by the end of June, as the state-owned lender seeks long-term funding at a time when credit growth outpaces deposit growth.

According to news reports, the bank’s bond issuance will likely feature a base size of ₹250 Crore and a greenshoe option of ₹750 Crore.

According to the reports, ICRA and Care Ratings have rated the bonds AA+ with a stable outlook and a call option 5 years from the allotment date.

As of May 31, bank loan growth was 16.1% year on year, while deposit growth was 12.2% during the same period, according to the latest Reserve Bank of India figures. The statistic excludes the impact of HDFC and HDFC Bank’s merger in July 2023.

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