State-owned bank, Bank of Maharashtra has asked for capital infusion of of Rs 1,500-1,800 crore from the government.
Allen CA Pareira, chairman and managing director of the bank confirmed the development to FE.
The bank also plans to increase the size of its balance sheet to Rs 1,10,000 crore from the existing size of Rs 90,000 crore as on September 30, 2009. Also, the bank is planning to bring down its net NPA further from the existing level of around 1%. The bank is taking all measures possible to improve its net interest margin (NIM). The bank has established second ?retail credit hub? (retail assets branch) in Mumbai on Thursday.
Pareira said that ?We want to improve our NIM to 1.75 % from the existing level of 1.65%?by the end of the fiscal.? The bank has already opened one such branch at Pune, which also happens to be the headquarters of the bank, the next one will be opened in New Delhi in near future, he added.
The idea is to facilitate appraisal, sanction and disbursal of retail loans, like housing, education and auto loans, within the least possible time.
Pareira, however, said that ?We are cautious at our retail growth as we want to have only a qualitative growth under this segment?.
Going forward, the bank plans to increase its retail credit by 10-15%, from its present level, by the end of the fiscal.?The bank has got licence for opening of 91 new branches from the Reserve Bank of India.
On the hiring front too, the bank has already appointed 500 probationary officers during the current fiscal so far including? 150 agriculture graduates, 15 law officers and 10-15 technical persons? to take care of my bank?s IT requirements, said Pareira.
On the interest rate scenario, Pariera is of the firm belief it must remain stable until February next year.
