Allahabad Bank to raise Rs2600 crore in FY11

Allahabad Bank to raise Rs2600 crore in FY11

Kolkata: Allahabad Bank plans to raise Rs2600 crore in FY11 and expects a 25% credit growth during the year, its chairman and managing director said on Friday.

“The board has decided to raise Rs2600 crore during FY11 from the market. It might be through preferential allotment of shares or through tier-I capital from the government," J P Dua told reporters. The capital adequacy of the bank is around 13.55%, he said.

The bank reported a credit and deposit growth of 24.12% and 21.16%, respectively, during the quarter. Its net NPA stood at 0.41% and net interest margins were at 3.10% as on 30 June.

Earlier in the day, the bank reported a 15% rise in net profit to Rs3.47 million for April-June quarter.

“The net profit was higher due to growth in core business and fee-based income of the bank," he said.

In April-June, the bank’s fee-based income rose 16% to Rs170 crore from Rs146 crore in the same period last year.

Its income from treasury operations was at Rs900 million, compared with Rs214 crore in the corresponding period a year ago.