Allahabad Bank will receive 670 crore as fresh equity from the government before March, to raise the government holding in the bank to 58% from 55.23%. The bank will preferentially allot 2, 95, 15,418 equity shares of Rs. 10 each at a premium of Rs. 217 per share to the government against the capital injection. Consequently, its tier-I will improve to 8.23% at the end of the fiscal.
The capital dose will provide the banks much larger headroom to raise capital through follow-on public offer. As per the extant guidelines, government holding in public banks can’t go below 51%, the norm which restricts equity-raising capacity for many banks like Allahabad Bank, Dena Bank or Union Bank of India, wherein the government holding has come close to the stipulation. crackcrack
| Company Name | CMP |
|---|---|
| SBI | 1107.60 |
| PNB | 113.75 |
| Canara Bank | 142.70 |
| Bank Of Baroda | 280.85 |
| Union Bank Of India | 189.05 |
| View more.. | |
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