Bank of Maharashtra Receives SEBI Warning for Non-Compliance with NRC Meeting Requirements

State-owned Bank of Maharashtra Ltd disclosed on Monday, March 17, 2025, that it has received an administrative warning from the Securities and Exchange Board of India (SEBI) for failing to conduct mandatory Nomination & Remuneration Committee (NRC) meetings during the financial years 2022-23 and 2023-24.

The warning, dated March 12, 2025, was issued due to the bank’s violation of Regulation 19(3A) of the SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015.

In a regulatory filing, the bank stated, “The Exchange is hereby informed that the Bank has received an administrative warning letter no. SEBI/HO/CFD/SEC-1/OW/P/2025/08005/1 dated 12.03.2025 regarding non-conduct of Nomination & Remuneration Committee (NRC) Meeting in the FY 2022-23 & 2023-24 resulting into violation of Regulation 19(3A) of SEBI LODR Regulations, 2015.”

Bank’s Response to SEBI Directive

The bank acknowledged the receipt of the warning letter on March 17, 2025, and assured that it would take necessary steps to address the concerns raised by SEBI. “We have taken cognizance of the aforesaid letter and the bank will initiate necessary steps to address the concerns/directives as mentioned in the letter,” the bank added in its filing.

Stock Performance 

On March 18, 2025, Bank of Maharashtra share price traded 0.92% higher at ₹44.83 at 9:26 AM (IST). Bank of Maharashtra’s share price reached a 52-week high of ₹73.50, and a 52-week low of ₹43.69. As per BSE, the total traded volume for the stock stood at 0.48 lakh shares with a turnover of ₹21.49 lakhs.

At the current price, Bank of Maharashtra shares are trading at a price-to-earnings (P/E) ratio of 6.60x, based on its trailing 12-month earnings per share (EPS) of ₹6.82, and a price-to-book (P/B) ratio of 1.53, according to exchange data.

Conclusion

While the SEBI warning highlights a lapse in corporate governance, the Bank of Maharashtra’s strong financial performance and stable asset quality demonstrate its resilience. The bank has assured stakeholders that it will take corrective measures to comply with SEBI’s directives and strengthen its governance framework moving forward.

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