Bank of Maharashtra to float infra bonds

Jul 22 2014, 00:32 IST
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SummaryPublic sector lender Bank of Maharashtra on Monday said it is planning to float infrastructure bonds within the next six months to raise funds.

Public sector lender Bank of Maharashtra on Monday said it is planning to float infrastructure bonds within the next six months to raise funds.

The Reserve Bank of India (RBI) recently exempted long-term bonds from the mandatory regulatory norms, such as the Cash Reserve Ratio (CRR), the Statutory Liquidity Ratio (SLR) and Priority Sector Lending (PSL), if the money raised is used for funding of infrastructure projects.

“We hope to build up the infrastructure portfolio and go for infra bonds soon… maybe, earlier than six months,” Bank of Maharashtra CMD S Muhnot told media persons on the sidelines of a banking conclave, organized by Ficci.

Muhnot said the funds raised would help the bank increase its exposure to the sector to about 17% of its loan portfolio by this fiscal-end from the current 14%.

He said the bank’s lending to infrastructure sector was expected to soar to about 20% of its portfolio during the next financial year when full benefits of the bonds would be visible.

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