State-owned Bank of Maharashtra (BoM) is poised to meet the minimum public shareholding (MPS) norm of 25 percent, with Managing Director & CEO Nidhu Saxena expressing confidence that one more fundraising tranche in the current fiscal year will achieve this goal. This strategic move aims to bolster the bank's capital adequacy while simultaneously reducing the government's stake. The directive comes from the finance ministry, which has mandated five public-sector banks to increase public shareholding to 25 percent by August 1, 2026, aligning with the Securities Contract Rules issued by the Securities and Exchange Board of India (SEBI). SEBI has provided forbearance to CPSEs and public sector financial institutions until August 2026 to comply with this requirement.

Currently, the government holds a substantial 79.6 percent stake in the Pune-headquartered bank. According to Saxena, a fundraising effort of approximately ₹2,000-2,500 crore, based on the bank's current market capitalization, would effectively bring the government's holding below the 75 percent threshold. To ensure flexibility and security, BoM has already secured approval to raise ₹7,500 crore through a combination of debt and equity. A significant step in this direction was taken in October, when the bank successfully raised ₹3,500 crore via a Qualified Institutional Placement (QIP), which saw public shareholding increase from 13.5 percent at the end of September to 20.4 percent.

The specific mechanism for the upcoming fundraising—whether through another qualified institutional route or an offer for sale—is still under evaluation by the bank. Bank of Maharashtra is considered to be in a relatively favorable position compared to the other four public-sector banks that also need to reduce government stake. For context, the government holds 94.6 percent in Indian Overseas Bank, 93.9 percent in Punjab & Sind Bank, 91 percent in UCO Bank, and 89.3 percent in Central Bank of India.

In terms of financial performance, Bank of Maharashtra reported a net profit of ₹1,593 crore in the June quarter, marking a 23 percent increase, primarily driven by growth in interest income. Saxena also noted that, similar to its industry peers, BoM is not overly concerned about a potential fall in treasury income during the July-September quarter. Furthermore, he mentioned that transactions on the Reserve Bank of India's Unified Lending Interface are showing an upward trend, albeit at a gradual pace, with expectations for improved volumes over time.