Allahabad Bank Eyes Rs 270 Cr Capital From Staff Share Offer

"We plan to raise between Rs 250 crore and Rs 270 crore as capital from the employee share offer. The bank is giving a 25 per cent discount on pricing at Rs 53.94 per share to the employees," MD and CEO of Allahabad Bank Usha Ananthasubramanian told PTI.

She said that Allahabad Bank is the first among the public sector banks to (PSBs) to offer share to its employees and got the approval of the board, RBI, SEBI and the Finance Ministry.

The offer would remain open for two weeks. The bank is also planning to come with a qualified institutional placement (QIP) in the third week of March to raise around Rs 1,000 crore, Subramanian said.

Last month, the RBI had also initiated ‘prompt corrective action’ (PCA) against the state-run lender over its high bad loans.

High net non-performing assets (NPA) and a negative Return On Assets (ROA) for two years in a row had prompted the action by the central bank.

So far in the current fiscal, the bank had raised Rs 700 crore as capital and also raised some bonds.