Allahabad Bank is widening the operations of its financial services subsidiary, AllBank Finance Ltd, which is at present limited to merchant banking and allied fee-based activities like distribution of mutual funds.

The company had recently inducted three independent directors — PK Gupta, former chairman and managing director of United Bank of India, D Sengupta, former chairman and managing director of General Insurance Corporation and RG Sharma, former chief executive officer, LIC Mutual Fund.

BSE  |  NSE Price

Also Read   Related Stories News Now - ArcelorMittal seeks equal treatment for its Orissa project - Air India chief meets officials on employee incentive issue - RBI governor meets bankers, discusses industry issues - Airtel offers STD, local calls at 50 paisa per minute - FDI inflows into India to slip as TNCs rework investment plans - RPG enterprises to enter coffee chain business

Also Read   Related Stories News Now - Markets end flat - SAIL to add 5 mn tonne capacity in FY13 - NHPC FY12 net up 28% at Rs 2,772 cr - Aarti Industries Q4 up nearly 27% at Rs 28.24 crore - BPCL posts four-fold jump in Q4 net at Rs 3,963 cr More

AllBank Finance is also looking at strengthening its core team by inducting 8-10 professionals.

“The company was dormant for a while, but with the reconstitution of the board, we hope to bring professional management. The new board will discuss venturing into new business activities. Based on its recommendations, we hope to give a new shape to the organisation by the end of this financial year,” said a company official.

Established as a custodian of securities (documents pledged by clients of Allahabad Bank and held as collateral security against loans) under the name of Allahabad Bank Nominees Ltd, the company changed its name to AllBank Finance Ltd in 1991 and was registered with the Securities and Exchange Board of India as a category-I merchant banker. However, after 1995, the company remained non-functional for quite some time.

Later, the board decided to surrender its non-banking financial company (NBFC) licence to focus on merchant banking. Subsequently, the company transferred a part of the paid-up capital to the bank as being a financial sector subsidiary, its capital requirement was less than an NBFC’s. Last financial year, the company booked a profit of about Rs 2 crore.

New Ipad Application :Business Standard's all new IPad App Click here to download for free Other Stories      - Markets end flat - SAIL to add 5 mn tonne capacity in FY13 - NHPC FY12 net up 28% at Rs 2,772 cr - Aarti Industries Q4 up nearly 27% at Rs 28.24 crore - BPCL posts four-fold jump in Q4 net at Rs 3,963 cr

Tags : Allahabad Bank   Read Business news in  Advertisements -  Benefits Upto Rs. 2.36 Lakhs on the Fully Loaded TJet Petrol. -  Journey on, We are by Your Side. Click here to know more -  2 Lac Apartments, 1 Lac House / Plots. Click here -  Benefits Upto Rs. 2.36 Lakhs on the Fully Loaded TJet Petrol. -  Watch The Film Here. Click here to know more.. -  Leader in Passenger Car & Automobile Tyres. Click here -  1 billion in saving for Unilever without any tangles. -  Learn How One City is Running on FOOD SCRAPS. -  One Partnership Endless Possibilities. Click here to know more -  Helping doctors detect diseases earlier, saving costs & extending lives. -  36 Lakhs can get you a pool of Luxuries. Click here -  Which is the best plan for your daughter -  Check out the TRUE COLOURS of your Stocks, Now for FREE! -  One of the leading business schools in the world.Know More