PSU Bank stock in focus after the President of India offloaded 6% stake worth ₹461 Cr

Synopsis: Bank of Maharashtra is in the spotlight after the President of India sold a 6% stake in the company, worth ₹461 crore completing the OFS. Following the transaction, the President’s holding stands at 73.60% of the company’s total equity.

The shares of the Mid-Cap company, specializing in providing comprehensive banking services for individuals, MSMEs, agriculture, and corporates, focusing on retail loans (home, car, education), digital banking (NEFT, IMPS, Mobile/Internet), deposits, and foreign exchange, are in the spotlight after the President of India offloaded a 6 percent stake in the company.

With a market capitalization of 43,772.64 Crores on Tuesday, the shares of Bank of Maharashtra jumped upto 1.1 percent, reaching a high of Rs. 56.92 compared to its previous closing price of Rs. 56.30. 

What Happened 

Bank of Maharashtra, engaged in providing comprehensive banking services for individuals, MSMEs, agriculture, and corporates, focusing on retail loans (home, car, education), digital banking (NEFT, IMPS, Mobile/Internet), deposits, and foreign exchange, has been in the spotlight after the President of India offloaded the stake in the company.

The company initially planned an Offer for Sale (OFS) of a 5 percent government stake. However, due to oversubscription, it exercised a 1 percent green shoe option. The floor price for the Bank of Maharashtra OFS has been set at Rs. 54 per share.

On the first day, it got subscribed to over 400% of the base size of 38.46 crore shares, triggering the exercise of the green shoe option of an additional 1% and the issue was subscribed 4.07 times the base size, reflecting strong market confidence.

Here are the latest details on the Offer for Sale (OFS):

The President of India, classified under the Promoter category, executed a disposal of 461,568,297 equity shares, at an average price of Rs. 10 per share, and the total value of this transaction amounted to Rs. 461.57 crore, representing a 6 percent stake in the company.

Following the transaction, the post-transaction holding stood at 5,661,059,630 shares, which is 73.60% of the company’s total equity.  The sale falls under the Insider Trading regulation, involving equity shares, and was executed through a market sale. The transaction was reported to the exchange on December 8, 2025, under insider-trading regulations through a market sale.

Financials & Others

The company’s revenue rose by 18.46 percent from Rs. 6,017 crores to Rs. 7,128 crores in Q2FY25-26. Meanwhile, Net profit rose from Rs. 1,333 crores to Rs. 1,669 crores during the same period.

The company’s Net Interest Income stood at Rs. 3,248 in September 2025, compared to Rs. 3,292 in June 2024. The company has a net interest margin of 3.85 percent in September 2025, compared to 3.95 percent in June 2025. It has a good asset quality with a GNPA of 1.72 percent and NNPA of 0.18 percent.

Bank of Maharashtra (BoM) is a major Indian public sector bank (PSU), headquartered in Pune, offering diverse retail, corporate, and digital banking services, known for its strong presence in Maharashtra, a large customer base, and status as a government-owned entity under the Ministry of Finance. It provides savings, loans (education, home, agri), insurance, and wealth management, focusing on a diverse customer base from individuals to large firms, across its  2,665 branches.

Written by Sridhar J 

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