RBI denies Bank of Maharashtra proposal for setting off Rs 7,360 cr losses

Bank of Maharashtra | Photo: Wikipedia

State-run Bank of Maharashtra on Wednesday said the Reserve Bank has denied permission to settle its 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 September 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 per cent down at Rs 10.80 on BSE.

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