Bank of Maharashtra (BoM) said that its board has approved the proposal to convert the perpetual non cumulative preference shares(PNCPS) of Rs 5.88 billion held by Government of India into equity shares on preferential basis to Government of India at a price to be determined, subject to the approval of the shareholders.

The board also approved the proposal of raising equity capital by issuing additional equity shares to LIC of India or other Financial Institutions, on preferential basis at a price to be determined, subject to the approval of the shareholders.

"All these subject matters will be placed before the shareholders in the ensuing Annual General Meeting for requisite approval," it said.

Shares of the company gained Rs 1, or 2.65%, to settle at Rs 38.80. The total volume of shares traded was 896,070 at the BSE (Tuesday).