Allahabad Bank gets Rs 1,790cr as equity capital from government

Public sector Allahabad Bank today said the government has approved capital infusion of Rs 1,790 crore through preferential allotment of equity shares in 2018-19.

"The bank has received a communication from the government regarding capital infusion of Rs 1,790 crore towards contribution of the central government in the preferential allotment of equity shares of the bank during the financial year 2018-19, as government's investment," the bank said in a regulatory filing.

Earlier this week, the Finance Ministry had approved capital infusion into five public sector banks including Allahabad Bank.

Of these, Punjab National Bank is to get the highest amount at Rs 2,816 crore, Andhra Bank Rs 2,019 crore, Indian Overseas Bank Rs 2,157 crore and Corporation Bank Rs 2,555 crore.

This capital infusion is the part of remaining Rs 65,000 crore out of Rs 2.11 lakh crore capital infusion over two financial years.

The government had announced Rs 2.11 lakh crore capital infusion programme October last year.

As per the plan, the public sector banks (PSBs) were to get Rs 1.35 lakh crore through re-capitalisation bonds, and the balance Rs 58,000 crore through raising of capital from the market.

Out of the Rs 1.35 lakh crore, the government has already infused about Rs 71,000 crore through recap bonds in the banks and balance would be done during this fiscal.

Allahabad Bank shares closed 0.24 per cent up at Rs 41.10 on BSE.