Exclusive: Bank of Maharashtra aims to raise Rs 5000 crore through capital raising modes, says Executive Director Asheesh Pandey

Bank of Maharashtra has raised Rs 1000 crore through QIP (Qualified institutional placement) in June, and the bank aims to maintain a credit growth of 25 per cent in this financial year, while maintaining a deposit growth of 16 per cent. These facts were revealed by Bank of Maharashtra's Executive Director Asheesh Pandey during an exclusive interaction with Zee Business, where he talked about the bank's target for credit growth, deposit growth, liquidity management and capital raise. Excerpts from the interview here : 

Q: The bank has managed to raise Rs 1000 crore through QIP (Qualified institutional placement) in June. What is the next target for the bank in terms of QIP?

A: We have taken permission for a total of Rs 5000 crore from the board that we plan to get through various options like ESPs, follow-on, QIP, and other capital-raising methods. For the first tranche, we thought of Rs 1000 crore — which has been fully subscribed. Capital is not the issue as we are still above the 18 per cent range (of total capital ratio), so the bank is well capitalised and keeping in view the opportunities for growth, the bank will be opening (instruments for capital gain) again in the December or March quarter. Keeping in view the market scenario, to achieve Rs 5000 crore target, the bank will decide whether to go for ESPS or QIP. It will be based on the feedback we receive in the quarter.

Watch ED Asheesh Pandey talking about credit growth and deposit growth, and ways to bring NPAs 

Q: What are the areas you plan to address through the recently-launched outreach programme? How will it cater to the unbanked population in the rural areas?
 

A: Bank of Maharashtra has almost 2200 branches. But through the outreach, we are coming out of the branch and meeting the officers. The purpose is manifold — one is to get their feedback and suggestions, be it in terms of service or technology. We implemented various suggestions in our schemes. This is one of the practical ways to get customer feedback. We not only do credit outreach but we also do outreach programmes for PPF, NPF, PMJDY, PMJJY, etc. Through outreach programme, we also help in creating savings accounts and even loan accounts.

Q: The skewed customer and employee ratio has been a problem for the majority of PSU banks. What has been the attrition rate so far?  

A: The bank is hiring and has opened up more than 2500 vacancies this year. So, currently, we are not having any issues in terms of employee strength. We have already hired 540 people so far this year and the appointment letters of nearly 880 people have been issued.