Allahabad Bank raises ₹1,500 crore

Public sector lender Allahabad Bank has raised ₹1,500 crore through private placement of Basel III-compliant tier-2 bonds.

These bonds have a tenor of 10 years with a call option after five years. The issuance/placement of the bonds has been completed by the bank through NSE’s Electronic Debt Bidding Platform, said the bank in a filing.

In an earlier statement, Allahabad Bank had said the Centre had agreed to make a capital infusion of ₹2,153 crore. The contribution will be made via preferential allotment of equity shares (special securities or bonds) of the bank during financial year 2019-20.

The capital infusion comes just months before its amalgamation with the Chennai-based Indian Bank. The fresh capital would help the bank meet the regulatory requirements. Shares of the bank rose 8.17% to close to ₹19.20 on the BSE.

In the second quarter, the bank reported widening of its consolidated net losses to ₹2,103.19 crore from a net loss of ₹1,816.19 crore in the corresponding year-earlier period, due to higher provisioning for bad loans. Gross non-performing assets (NPAs) increased to 19.05% of the gross advances from 17.53% while net NPAs came down to 5.98% from 7.96% a year ago, it said.

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Printable version | Oct 6, 2022 8:00:31 pm |