Bank of Maharashtra looking at stock split to improve liquidity
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State-owned lender Bank of Maharashtra is considering a stock split to improve its liquidity even as it has sought Rs 800 crore as capital infusion from the finance ministry.
"We need to have some mechanism to create liquidity. Stock split is one such option, which we are discussing with the government," Narendra Singh, chairman and managing director, Bank of Maharashtra told The Indian Express.
Singh said that the proposal is being discussed with the finance ministry. "With little trade in our shares, the price is not rising by much," he said.
Shares of Bank of Maharashtra closed at Rs 54.90 on Friday on the Bombay Stock Exchange , registering a gain of 1.29 per cent. Though 1,364 shares of the Bank was traded, on average less than 500 shares of the Bank are traded on the BSE daily.
The Pune headquartered public sector lender which registered a net profit of 65.32 per cent in its second quarter had total business of Rs 1,51,320 crore as on September 30.
The state owned bank has also sought Rs 800 crore from the finance ministry as capital infusion, executive director C VR Rajendran said.
Bank of Maharashtra is amongst the top three public sector lenders that the finance ministry has identified for capital infusion.
Finance minister P Chidambaram had on Thursday announced that the department of financial services would soon finalise the allocation for each bank.
The Union Budget 2012-13 had allocated Rs 15,000 crore for the exercise.