Allahabad Bank to raise equity capital of Rs 2,000 crore

In the AGM held by Allahabad Bank, the members approved the proposal of raising equity capital of the bank aggregating up to Rs 2,000 crore which will include premium. The options sought for raising this capital would be QIP or FPO or through Rights issue.

A meeting of Share Issue and Allotment Committee (SIAC) of Board of Directors of the Bank is scheduled to be held on Friday, 13th October 2017, to consider the modes of raising this equity capital of Rs 2,000 crore.

Recently, as a part of its festive offering ‘AllBank Utsav’, the Bank has decided to waive off the processing fee on its home and car loans. This waiver of processing fee is valid from October 1, 2017 to March 31, 2018.

Also, to make home, car and other retail loans cheaper, the Bank has cut the MCLR to 8.45% per annum for one-year tenor. The bank provides additional concession on home loans to Women customers under the ‘AllBank Shakti’ scheme. This move is expected to improve the home and car loans segment of the Bank.

Allahabad Bank’s stock had touched a 52-week low of Rs. 57, in December 2016 and within five months it made a new 52-week high of Rs. 92.50. However, post-June it is trading in a consolidated mode and now is trading in the range of Rs. 65-70.