The Bank of Maharashtra has decided to issue bonds in order to raise Rs 300 crore by September this year, as Tier I and Tier II capital. The move is aimed at meeting the growing financial needs of the public sector bank.

M G Sanghvi, the Executive Director of Bank said that it has also urged the central government to release funds worth Rs 1500 crore, for a period of three years, for ensuring its 20 per cent credit growth.

Mr. Sanghvi, on the sidelines of CII's Banking Colloquium 2009, said: "The Government is considering our proposal. We hope to get the government approval by December."

Bank's adequacy rate currently stands at 12 per cent, which the bank expects would reach 13 per cent by March 2010. The lender has also set a business target of Rs
87,000 crore by March 2010.

About the bank's expansion plans, Mr. Sanghvi said that the bank, going to celebrate its 75th anniversary, would increase its penetration deep into the country by opening
75 new branches and ATM outlets. He, however, ruled out IPO plans, given the uncertain conditions prevailing in the market.