BoM Targets Rs 300-cr Net By March; No Rate Change

Mumbai, Nov 6: | Updated: Nov 7 2003, 05:30am hrs
Pune-based Bank of Maharashtra (BoM) has targeted to grow its total business to Rs 38,700 crore and net profit at Rs 300 crore by March 2004, even as it ruled out any change in the lending rates till end of the fiscal.

The bank plans to have advances of Rs 12,000 crore and deposit base of Rs 26,700 crore by end of March 2004, up from total business of Rs 32,200 crore in FY03, chairman and managing director SC Basu told reporters here on Thursday.

The business growth would be supported by pick up in credit demand and agricultural advances, Mr Basu said adding the retail segment would also contribute significantly.

The net profit of the state-owned bank stood at Rs 73.95 crore as on March 31, 2003 and expect about a four-fold growth at Rs 300 crore by end of the current fiscal, Mr basu said.

Asked about reference in RBIs credit policy review for banks to extend benefit of cut in lending rates to sectors beyond housing, he said, we will review cost of funds including deposits in March and then take a decision.

The bank had revised interest rates recently and the current prime lending rate stood at 11 per cent, he added.

On the proposed initial public offering, he said the bank would hit the market with IPO before March 2004, when the environment is favourable.

The size of the issue would depend on the premium but the face value of total number of shares to be issued would be Rs 100 crore, he said

The funds raised from issue would help to support growth plans and strengthen capital adequacy base, which currently stood at 11.70 per cent as on March 2003.