Business

Allahabad Bank to get ₹2,153 crore

A branch of Allahabad Bank.

A branch of Allahabad Bank.   | Photo Credit: PTI

Infusion of the capital into the Allahabad bank comes ahead of its merger with Indian Bank

State-owned Allahabad Bank on Thursday said in a regulatory filing that it would get a fresh capital infusion of ₹2,153 crore from the government in the current financial year.

The Department of Financial Services conveyed the sanction for release of the fresh capital.

The infusion is towards contribution of the central government in the preferential allotment of equity shares of the bank during the financial year 2019-20 as the government’s investment, it said.

Infusion of the capital into the bank comes ahead of the merger with Indian Bank and would help the bank meet the regulatory requirement to get amalgamated with a bigger peer.

Notably, Allahabad Bank had not featured in the list of banks who were approved a total fresh capital infusion of ₹55,250 crore, as announced on August 30 by the government.

In this list, Punjab National Bank was approved to get ₹16,000 crore, Union Bank of India ₹11,700 crore, Canara Bank ₹6,500 crore and Indian Bank ₹2,500 crore.

Besides, Bank of Baroda got a capital infusion of ₹7,000 crore, Indian Overseas Bank ₹3,800 crore and Central Bank of India ₹3,300 crore.

This round of capital infusion as intended will enhance the capital base of public sector banks so that they could accelerate lending in a bid to bolster growth.

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Printable version | Feb 26, 2020 4:26:33 AM | https://www.thehindu.com/business/allahabad-bank-to-get-2153-crore/article30405879.ece

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