Credit rating agency, CARE has reaffirmed ‘AA’ rating to Allahabad Bank’s Lower Tier II Bonds worth Rs 2,411.90 crore and ‘AA-‘rating to the company’s Upper Tier II Bonds worth Rs 1,000 crore. The rating agency has also reaffirmed ‘AA-’ rating to the company’s Perpetual Bonds worth Rs 300 crore.
CARE has rated the aforesaid Upper Tier II Bonds one notch lower than the Lower Tier II Bonds of the Bank in view of their increased sensitiveness to the Bank’s Capital Adequacy Ratio (CAR), capital raising ability and profitability during the long tenure of the instruments.
Allahabad Bank (AB) is a Kolkata-based mid-sized public sector bank. AB manages an deposit and advance base of Rs.183,521 crore and Rs.151,027 crore through a network of 3,134 domestic branches and one overseas branch at Hong Kong as on June 30, 2015. Government of India (GoI) is the major shareholder of AB, holding 60.83% equity stake as on June 30, 2015.
