Govt to infuse Rs 30.5 billion as fresh capital in Allahabad Bank

This is the govt's contribution in the preferential allotment of equity shares of the bank during the financial year 2018-19

Public-sector lender Allahabad Bank on Thursday informed stock exchanges that it had received a communication from the finance ministry stating it was getting a capital infusion to the tune of Rs 30.54 billion.

"...the Bank has received a communication from the Government of India, Ministry of Finance, Department of Financial Services regarding fresh capital infusion of Rs 30.54 billion towards contribution of the central government in the preferential allotment of

equity shares (Special Securities/Bonds) of the bank during the financial year 2018-19, as the government's investment," Allahabad Bank said in a letter to the BSE.

It had been reported last week that the finance ministry would likely finalise the second round of capital infusion into public-sector banks (PSBs) towards the end of this month, taking into account the latest quarter's performance. In this round of fund infusion, most of the banks would get growth capital for expanding their lending, particularly to micro, small and medium enterprises (MSMEs). 

The ministry had earlier this year provided capital infusion of Rs 113.36 billion to five PSBs to help them meet their interest payment commitments. 

Punjab National Bank (PNB), hit by the Nirav Modi scam, had received Rs 28.16 billion, while Allahabad Bank had got Rs 17.9 billion. Andhra Bank had got a capital support of Rs 20.19 billion, Indian Overseas Bank of Rs 21.57 billion and Corporation Bank of Rs 25.55 billion. The infusion was part of the remaining Rs 650 billion out of Rs 2.11-trillion capital infusion planned over two financial years.