Allahabad Bank gains as board approve fundraising

Kolkata-headquartered banking major, Allahabad Bank's stock recovered from day's low after its board approved plans to raise funds up to Rs. 2,000 crore.

Allahabad Bank has received approval from its Board of Directors for raising equity capital of the Bank by an amount aggregating upto Rs. 2,000.00 crore (including premium) through Qualified Institutions Placement (QIP) subject to all other requisite Statutory/ Regulatory approval in this regard, out of the approval already accorded by the Board of Directors and shareholders in its meeting dated March 26, 2019 and June 28, 2019 respectively for raising Equity Capital aggregating upto Rs. 4,000.00 crore (including premium) through Qualified Institutional Placements (QIPs)/FPO /Rights Issue or in combination thereof. The Board of Directors of the Company at its meeting held on July 31, 2019 has approved the same.

The bank of recently in news after it reportedly alleged of diversion of funds of Rs. 1,774 crore by Bhushan Power and Steel. The bank, though, has made provisions of Rs. 900 crore, was considered as negative looking at NPA situation in the banking sector.

At 12:30 hours, the stock traded higher by 0.50 per cent at Rs. 39.25 on BSE.