Allahabad Bank may raise Rs 1,000 crore

Public-sector lender Allahabad Bank might raise up to Rs 1,000 crore in 2010-11, if the credit offtake picks up further. The bank’s capital adequacy ratio was at 13.65 per cent.

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 2010-11.

Allahabad Bank expects to post 27 per cent growth in advances during the second quarter (July-September) of the current financial year. The bank expects to have credit growth of about 25-26 per cent. The bank has also sought about Rs 1,000 crore from the government under the recapitalisation scheme during 2010-11.