Bank of Maharashtra (NSEI:MAHABANK) is planning to raise INR 50.00 billion in equity this year as part of a two-year strategy to pare the government stake to 75% to conform to the market regulation. The bank said it needs to raise a total of INR 67.00 billion at current price to bring down the promoter holding below the threshold level. Managing director Nidhu Saxena said that the bank is awaiting the government approval for this year's equity raising, which would be done through qualified institutional placement or follow-on public offer or both.

"We are planning to bring down the government stake to 75% by the financial year 2025-26," he said. The bank has already reduced the holding to 86.46% from 90.97% in FY24. Securities & Exchange Board of India mandates every listed entity to have a minimum 25% public shareholding.

Several banks have breached the minimum public shareholding level following the government's continuous capital infusion in the past few years. The government had infused about INR 3.35 lakh crore in public sector banks in the past decade in multiple rounds.