If the deal fructifies, it would mark the foray of the diversified Bajaj Group into banking. The entity has offered a price of Rs 40 per share to acquire the bank, which is also based out of Pune. As the private company is also based out of Pune, there will be no movement of assets or people. It appears to be a clear win-win for all the stakeholders, the person told DTNext, on condition of anonymity.
Incidentally, the share counter of the public sector bank has been witnessing heightened activity with price movement on an upward swing. Its stock price currently at Rs 23.20, has been surging between 10 and 20 per cent over the last few days. The bank has been expanding its branch network in recent times, taking its total count to 1,949 outlets across the country.
The 85-year-old Bank of Maharashtra (BoM) has generated business worth Rs 2.66 lakh cr as of December 31, 2020. Its revenues were Rs 13,144.67 cr with its current MD AS Rajeev taking charge in December 2018. For the nine months ended December 2020, BoM’s total business surged by 13.15 % to Rs. 2,66,875 crore. The bank’s net profit went up by 13.91% to Rs. 154 crore, as per a release. BoM is the largest public sector bank in Maharashtra, considering its branch network. The government holds 92.49 per cent stake in the bank. There are talks that the deal involving the Bank of Maharashtra will come up for discussion during a meeting to be held on April 14. When contacted, company officials did not comment on the development.