Calcutta, Aug. 9 : Bank of Maharashtra and Central Bank of India are in talks with SBI Capital Markets and DSP Merrill Lynch to decide whether their initial public offers (IPO) should be floated on a par or at a premium. The Calcutta-based bank Allahabad Bank is also talking to SBI Caps for managing its Rs 100-crore IPO, expected to be launched by the end of this calendar year. Central Bank of India plans a Rs 300-crore issue, while Bank of Maharashtra intends to mop up Rs 250 crore. Industry sources said the focus of discussions between banks and their merchant bankers have now shifted to giving the fund-mobilisation plans a final shape. 'Both banks may come up with their issues by the end of the current financial year,' merchant bankers said. However, there is a perception in the market that some of the bank IPOs in the pipeline will command a modest premium. Union Bank of India, for instance, has set a premium of Rs 6 on its share flotation this month. 'The bank's capital adequacy ratio will increase from 9.58 per cent in March 2002 to 12 per cent after the public offer. The aim is to generate 1,00,000 crore in business by 2005-06. Risk-weighted assets are also expected to swell. The IPO is aimed at augmenting long-term resources and to meet future capital adequacy requirements,' Central Bank of India officials said. Central Bank of India has written off its entire accumulated loss of Rs 681 crore in the last financial year, bringing down the capital base to Rs 1,124 crore. 'Selling bank issues is not a problem in most cases. Nationalised banks have certain inherent strengths. One of them is huge assets, which is never reflected in their balance-sheets. The bank, therefore, can withstand any fluctuation in the market. Moreover, bank issues do not command huge premium. So, it is easily lapped up by retail investors,' merchant bankers said. The Pune-based Bank of Maharshtra is targeting a 25 per cent growth in business, and doubling it within a span of three years. With a capital adequacy ratio of 11.16 per cent, it plans to add 25 branches to its present network of 1,222. 'The bank needs fresh funds to expand business. So, it is talking to the merchant bankers on its planned flotation,' banking sources said.