Allahabad Bank gets shareholders nod for QIP

At the general meeting of the bank held here yesterday, the shareholders approved the preferential issue of Rs 400 crore to government against capital infusion

City-based nationalised Allahabad Bank has got the shareholders' approval for a preferential issue of Rs 400 crore and a Qualified Institutional Placement (QIP) of Rs 320 crore for shoring up the equity base of the lender.

At an extra-ordinary general meeting of the bank held here yesterday, the shareholders approved the preferential issue of Rs 400 crore to government against capital infusion.

The bank also sought nod of the shareholders to access the market for issue of equity shares through Qualified Institutional Placement (QIP) aggregating up to Rs 320 crore in such a manner that government's holding will continue to be at 55.24 per cent of the total paid-up capital.

Allahabad Bank would issue and allot 4,45,83,147 equity shares of face value of Rs 10 each at an issue price of Rs 89.72 (including premium of Rs 79.72) per equity share on preferential basis to government.

Chairperson and Managing Director of Allahabad Bank Shubhalakshmi Panse said at the EGM that the money was needed to shore up the capital base of the bank to maintain future growth and Capital Adequacy Ratio under the BASEL-III regime.