Bank of Maharashtra is in need of capital in order to maintain its capital adequacy ratio. It has applied for capital worth Rs. 1,800 crore from the Government, a top official of the bank said.
"We have asked Rs 1,800 crore from the government," Executive Director of BoM, M G Sanghvi said.
He also denied any immediate plans by the bank for coming up with a follow on public offer.
He confirmed the bank's plans to come up with asset recovery branches in order to overcome increase in non performing assets.
"NPA is high due to monsoon failure and economic slowdown," Sanghvi said.
The bank booked a net NPA of 1.6% and a gross NPA of 2.9% for the fiscal last ended.
He also spoke on the bank's targets for this fiscal and said that it aims at achieving a 20% rise in advances and deposits. The bank has generated business worth Rs. 1,00,000 crore in the fiscal that ended on 31st March 2010.
Sanghvi quoted that the bank was active in reduction of operational costs and improvinf the efficiency in decision making.