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Allahabad Bank expects 25-26% credit growth

16 Sep 2010 Evaluate

On the back of robust demand for credit, Allahabad Bank expects to post 27 per cent growth in advances during the second quarter (July-September) of fiscal 2010-11. The bank might raise about Rs 1,000 crore during the current fiscal, if the credit off take picks up. The bank's capital adequacy ratio was at 13.65 per cent.

The bank has also sought funds to the tune of about Rs 1,000 crore from the Government under the recapitalisation scheme during 2010-11.  Allahabad Bank has headroom to raise Rs 2,600 crore. The bank had recently received the approval of its board of directors for raising debt capital instruments in the form of Innovative Perpetual Debt Instrument (Tier I Capital), and subordinated debts (Tier II Capital) aggregating to Rs 1,400 crore during the 2010-11.

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