RBI Rejects Bank Of Maharashtra’s Proposal To Set-Off Rs 7,360 Crore Losses
The bank wanted to settle losses with the balance lying in share premium account and revenue reserve account.
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State-run Bank of Maharashtra on Wednesday said that the Reserve Bank of India has denied permission to settle accumulated losses of Rs 7,360 crore against the balance lying in its share premium account and revenue reserve account.
The bank’s board and shareholders approved setting off accumulated losses of Rs 7,360.29 crore as of March 31, 2019, against the balance lying in share premium account and revenue reserve account of bank as on date of set-off.
“We hereby inform that RBI wide its letter dated 27 Sept. 2019 has intimated about its inability to accede to the request made by bank for setting-off the above accumulated losses against the balance lying in share premium account and revenue reserve account of bank,” the bank said in a regulatory filing.
Bank of Maharashtra shares closed 2 percent lower at Rs 10.8 apiece on BSE.