Bank of Maharashtra has decided to raise Rs 300 crore by September this year as Tier I and Tier II capital by issuing bonds.

The lender has sought recapitalization of Rs 1500 crore from the government over a period of three years, to meet its capital needs.

According to company official, the recapitalization is needed to maintain a credit growth of 20% for the next three years.

With the present CAR of 12 per cent, the bank is targeting a capital adequacy of 13 per cent by March 2010. The lender has set business target of worth Rs 1 lakh crore by March 2010.

The bank is schedule to open 75 branches and ATMs across the country.