Allahabad Bank: Stock shines on capital infusion news

In a BSE regulatory filing, Allahabad Bank stated that a release of fresh capital infusion fund of Rs. 2,153 crore has been sanctioned from the government. Reacting to this news, the stock of Allahabad Bank jumped by nearly 9 per cent during Friday’s early trading session.

The sanction for the release of the fresh capital infusion fund of Rs 2,153 crore was conveyed via letter by the Department of Financial Services, Ministry of Finance, Government of India. The filing also stated that the capital infusion is towards the 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. Previously, when the government had announced the list of banks receiving capital infusion, Punjab National Bank was approved to receive Rs 16,000 crore, Union Bank of India was approved to receive Rs 11,700 crore, Canara Bank was approved to receive Rs 6,500 crore, and Indian Bank was approved to receive Rs 2,500 crore. In addition to these, Bank of Baroda received a capital infusion of Rs 7,000 crore, Indian Overseas Bank received Rs 3,800 crore, and Central Bank of India received Rs 3,300 crore. Allahabad Bank, however, did not feature on the list that was made to strengthen the capital base of public sector banks.

Founded in Allahabad and headquartered in Kolkata, Allahabad Bank is one of the oldest joint stock banks in India engaged in banking and financial services.

On Friday, in the early trading session, the stock of the bank was trading at Rs 19.25, up by 8.45 per cent or Rs 1.50 per share. The 52-week high is Rs 58.80 and 52-week low is Rs 16.75 on BSE.