Bank of Maharashtra is planning to raise Rs 100 billion through infrastructure bonds during the current financial year, according to managing director Nidhu Saxena. The issue is expected to be launched in the latter half of the year, depending on the movement of interest rates.

"The timing of the issue will depend on the interest rate movement. We will wait for the best pricing and finalise the issue timing accordingly," Saxena said, adding that the interest rate outlook will play a key role in scheduling the bond sale.

In addition to the bond issuance, the state-owned lender has board approval to raise Rs 50 billion through equity and Rs 25 billion through debt instruments.

With the government currently holding a 79.60 per cent stake in the bank, Bank of Maharashtra will need to reduce promoter shareholding below 75 per cent in line with the minimum public shareholding norms.