**Bank of Maharashtra Aims to Meet 25% Public Shareholding Norm**
The Bank of Maharashtra, a state-owned financial institution, is optimistic about achieving the minimum public shareholding requirement of 25% following an additional fundraising round in the current fiscal year. Managing Director and CEO Nidhu Saxena shared this update during the FIBAC 2025 event organized by FICCI and the Indian Banks Association.
The finance ministry has mandated five public-sector banks, including Bank of Maharashtra, to elevate their public shareholding to 25% by August 1, 2026. This directive aligns with the Securities Contract Rules established by the Securities and Exchange Board of India (SEBI), which stipulate that all listed companies, including public sector entities, must maintain a minimum public shareholding of 25%. SEBI has granted a grace period until August 2026 for Central Public Sector Enterprises (CPSEs) and public sector financial institutions to comply.
Currently, the government holds a 79.6% stake in the Pune-based bank. Saxena indicated that if the bank successfully raises approximately ₹2,000-2,500 crore, the government’s stake would dip below the 75% threshold. To ensure compliance, the bank has secured approval for a ₹7,500 crore fundraising initiative through both debt and equity. In October, Bank of Maharashtra raised ₹3,500 crore via a Qualified Institutional Placement (QIP), increasing public shareholding from 13.5% to 20.4% by the end of September.
Saxena noted that the bank is still determining whether the upcoming fundraising will occur through a qualified institutional route or an offer for sale, stating, “We are still evaluating the mechanism.” Among the five public-sector banks required to reduce government stakes, Bank of Maharashtra is relatively well-positioned. In contrast, the government holds 94.6% in Indian Overseas Bank, 93.9% in Punjab & Sind Bank, 91% in UCO Bank, and 89.3% in Central Bank of India.
In the June quarter, Bank of Maharashtra reported a net profit of ₹1,593 crore, reflecting a 23% increase driven by rising interest income. Addressing the bank’s financial performance, Saxena expressed that, like many peers, they are not overly concerned about a decline in treasury income during the July-September quarter. He also mentioned that transactions on the Reserve Bank of India’s Unified Lending Interface are gradually increasing, with expectations for further improvement over time.
**FAQ**
**What is the current public shareholding percentage of Bank of Maharashtra?**
As of now, the public shareholding in Bank of Maharashtra stands at 20.4%, following a recent fundraising effort. The bank aims to reach the mandated 25% by August 2026.