Allahabad Bank to raise Rs.690 cr through preferential shares

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SME Times News Bureau | 05 May, 2016
State-run Allahabad Bank on Wednesday said it has got shareholders' approval for raising Rs.690 crore by way of preferential allotment of equity in favour of the government.

The Kolkata-based lender obtained the approval of the shareholders for raising equity capital through preferential issue of 10,92,29,064 equity shares of the face value of Rs.10 each at an issue price of Rs.63.17 per share, including premium of Rs.53.17 per share, to the government of India, aggregating to Rs.690 crore, according to a release.

An extraordinary general meeting was held in the city on Wednesday.

The bank said shareholding of the government in it will increase to 67.21 percent from the existing 61.38 percent after the issue and allotment of the equity shares.

In December last year, Allahabad Bank had raised Rs.1,000 crore through an issue of tier II bonds on private placement basis.

The bank's capital adequacy ratio as per Basel II stood at 10.44 percent at the end of December 2015.

The bank reported a net loss of Rs.486.14 crore for the quarter ended December 31, 2015, compared to net profit of Rs.164.11 crore for the same quarter in the previous year.