Bank of Maharashtra eyes tier-II bond sale worth Rs 1,000 crore
Bank of Maharashtra is likely to raise up to Rs 1,000 crore through the issuance of 10-year tier-II bonds at the end of June as the state-owned lender looks to garner long-term funds at a time when credit growth is stronger than deposit growth.
The bank’s bond issuance is likely to have a base size of Rs 250 crore and a greenshoe option worth Rs 750 crore, market sources said.
The bonds, which are likely to have a call option 5 years from allotment date, are rated AA+ with a stable outlook by rating agencies ICRA and Care Ratings, sources said.
As on May 31, bank credit growth was at 16.1% year-on-year, while deposit growth was at 12.2% over the same period, latest Reserve Bank of India data showed. The data excludes the impact of the merger of HDFC and HDFC Bank in July 2023.
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