Allahabad Bank organises roadshow on NPAs

State-run Allahabad Bank, on Tuesday, organised a country-wide road show to create awareness among the public about recovery in non-performing asset (NPA) accounts.

Bank’s staff along with top executives carrying placards gathered near the residence/offices of select large NPA borrowers during the road show to silently impress on the urgency of repayment and regularisation of loan accounts, Allahabad Bank said in a release.


Source : Thehindubusinessline

Read more »

Allahabad Bank Q2 net up at Rs 177 cr

Allahabad Bank has reported a net profit of Rs. 177.10 crore during the second quarter to September 30, 2015 against Rs. 141.44 crore in the corresponding quarter last year. The bank's gross NPA stood at Rs. 7,985.75 crore (Rs 7,674.27 crore).


Source : Thehindubusinessline

Read more »

After IOB, RBI may pull up Allahabad Bank, Central Bank of India and Andhra Bank

The Reserve Bank of India may now turn its focus on Allahabad Bank, Central Bank of India and Andhra Bank as their dodgy loans and provision for loan losses are getting precariously close to that of Indian Overseas Bank's -the bank on which the central bank has imposed restrictions on branch expansion.

On Monday, the Chennai-based Indian Overseas Bank had informed the Bombay Stock Exchange that the RBI has initiated a Prompt Corrective Action (PCA) on the bank, which is triggered if bad loans rise above 10 per cent, capital adequacy ratio slips below 9 per cent, and return on assets falls below 0.25 per cent.

According to a report by Asian Markets Securities, in case of some public sector banks, the gross impaired loans -which includes gross non-performing assets and gross restructured loans -have crossed 15 per cent. This comes at a time when demand for credit has dried up and slippages continue to be at an elevated level which in turn could hurt banks' earnings.

The report says that as on March 2014-15, the gross impaired loans of Central Bank was 21.3 per cent, Andhra Bank's was 16.4 per cent, Allahabad Bank's was 16.6 per cent and Punjab National Bank's was 15.9 per cent. During the same period, the provision coverage ratio -the total provisions set aside to write off bad loans -is less than 60 per cent.

Banking experts said the move to impose PCA on Indian Overseas Bank was taken after the RBI inspected the bank and found several irregularities.

The bank cannot open new branches, declare dividend and recruit new employees without RBI's approval.

"However, the regu lator has not placed any restrictions on lending, which means that the regulator is more concerned about the way the bank is run," they added. In a notice to the ex change, the bank has said that "this action will not have any material impact on the growth prospects performance of the bank. The directions given by the RBI are for improving its internal controls and consolidation of its activities".

In the past, the central bank had initiated Prompt Corrective Action on United Bank of India after it came to light that the bank's bad loans were much more than declared.

The restrictions were, however, lifted after two years once its performance improved.



Source : Economic Times

Read more »

Andhra Bank cuts base rate by 25 bps to 9.75%

Andhra Bank has reduced its base rate by 25 basis points to 9.75 per cent with immediate effect.

A press release in this regard was issued here on Tuesday. Andhra Bank was the first to announce an interest rate cut after the Reserve Bank of India announced a 50 bps cut in the repo rate in its policy review today. 

Source : Thehindubusinessline

Read more »

Allahabad Bank net profit halves to Rs. 164 cr

Net profit of public sector lender Allahabad Bank halved to nearly 164 crore for the third quarter (October-December) of this fiscal. It had reported a net profit of 325 crore during the corresponding quarter last year.

A slow growth in total income, operating profit along with increase in provisioning and tax expenses impacted the bottomline.

Operating profit saw a mere six per cent growth, while total income during the period grew 1.5 per cent to Rs. 5,387 crore.

Provisions for bad loans increased by nearly 15.6 percent year-on-year to Rs. 644 crore in the quarter ended December 2014. It stood at Rs. 557 crore during the year-ago period.

Interest earned during the quarter under review stood at Rs. 4,941 crore, a near 4 per cent rise, compared with Rs. 4,764 crore earned during the year-ago-period.

However, other income (non-interest income) declined by nearly 17.7 per cent to Rs. 446 crore from Rs. 542 crore.

Asset quality

Asset quality of the Kolkata-headquartered bank remained stable.

However, gross non-performing assets (NPA) stood at 5.46 per cent (Rs 8,012.42 crore) in Q3 of FY15. In the year-ago-period, it remained flat at 5.47 per cent.

Net NPAs, however, declined by 30 basis points year-on-year to 3.89 per cent in the third quarter of the current financial year 2014-15.

Capital adequacy ratio (as per Basel-III norms) of the bank was 10.02 per cent in Q3FY15 against 10.46 percent in the year-ago period.


Source : Thehindubusinessline

Read more »

Allahabad Bank revises interest rates

Kolkata-based Allahabad Bank has revised the interest rates on domestic term deposits below Rs. one crore; and for a period of one year to less then five year.

The interest rate now stands at 8.75 per cent, a downward revision by15 basis point, from the previous 8.90 per cent.

The new interest rates come into effect from January 1, 2015.


Source : Thehindubusinessline

Read more »

Allahabad Bank gets nod to raise funds via QIP

Allahabad Bank obtained board approval for raising capital from various means including Qualified Institutional Placement (QIP).

The board at its meeting held Monday have discussed and approved in principle the raising of capital of the bank through preferential or QIP issue, Allahabad Bank said in a statement.

Funds would be raised in such a manner that the equity shareholding of the Government of India will not go below 52 per cent.

The government holding in the Kolkata-based banks stood at 58.90 per cent at the end of September 2014.

Keeping the huge capital requirement in the mind, the Union Cabinet earlier this month, allowed public sector banks to raise up to Rs. 1.60 lakh crore from markets by diluting government holding to 52 per cent in phases so as to meet Basel III capital adequacy norms.

Finance Minister Arun Jaitley in the first Budget speech had said: “To be in line with Basel-III norms there is a requirement to infuse Rs. 2.40 lakh crore as equity by 2018 in our banks. To meet this huge capital requirement we need to raise additional resources to fulfil this obligation.”

While preserving the public ownership, the capital of these banks will be raised by increasing the shareholding of the people in a phased manner through the sale of shares largely through retail to common citizens of this country, he had said.


Source : Thehindubusinessline

Read more »

Allahabad Bank to raise 500 cr through private placement

Kolkata-based lender Allahabad Bank is looking to raise Basel-III compliant tier-II bonds aggregating upto Rs. 500 crore through private placement.

According to a notification to the bourses, the lender will raise the amount in one or more tranche during the current fiscal (FY-15).



Source : The Hindu

Read more »

Allahabad Bank net profit halves to Rs. 141 cr

Kolkata-based Allahabad Bank reported a near 49 per cent dip in net profit to Rs. 141 crore for the period ending September 30, 2014.

Profit for the corresponding period last fiscal stood at Rs. 276 crore.

During the period, the bank, however, reported a marginal increase in both total income and interest earnings.

Total income for the second quarter stood at Rs. 5,417 crore, an increase of mere 2 per cent (over Rs. 5,303 crore it reported last fiscal).

Interest earnings moved up by 6 per cent to Rs. 4,901 crore ( as against Rs. 4,607 crore last year) for the period between July and September.

Asset Quality

The bank, meanwhile, saw an approximate 16 per cent rise in gross non-performing assets (NPAs) to Rs. 7,674 crore for the period ending September 30, 2014. Gross NPAs for the corresponding period last year stood at Rs. 6,613 crore.

Gross NPA per cent during the period rose to 5.36; as against 4.94 in the year ago period.

Net NPAs in Q2 of FY-15, however, saw a marginal decline of 2 per cent to Rs. 4,948 crore (as against Rs. 5,048 crore last year).

As a result, net NPA per cent during the period improved to 3.54; from 3.83 from the year-ago period.

At 2.15 pm shares of Allahabad Bank were trading at Rs. 111.40, up by 4.26 per cent at the BSE on Thursday.


Source : The Hindu

Read more »

Allahabad Bank seeks Rs 900 crore capital from government

State-run Allahabad Bank said here today that it has sought a Rs900-crore capital infusion from the government during the current financial year.

"We have asked for Rs 900 crore from the government. Usually it comes after September," Allahabad Bank's Chairman and Managing Director Rakesh Sethi told reporters on the sidelines of an annual banking event organised by FICCI and IBA here today.

The government has budgeted only Rs 11,200 for capital infusion in public sector banks during this fiscal.

Sethi further said the bank has board approval to raise Rs 320 crore from the government and a decision would be taken only if there is higher demand for credit.

"We have permission for a Rs 320 crore QIP, but (since) there is no demand for credit now, what do I do with that money," he asked.

When asked whether the bank plans to cut its lending rates, Sethi said that the decision would be taken by the asset liability committee.

The largest bank, State Bank of India cut the deposit rate today by 25 basis points to 8.75 per cent in the one to three years category, effective from September 18.

SBI has also increased its deposit rate by 25 basis points in the 180 days to 210 days category.

When asked whether Allahabad Bank plans a festive season offer on loans, Sethi said, "Our base rate is already at 10.25 per cent. So, how much lower can we go".

Source : Economic Times

Read more »

Canara Bank bags award, Allahabad Bank gets second prize in Indira Gandhi Rajbhasha Shield Scheme

Rajeev Kishore Dubey, CMD of Canara Bank, received the 1st Prize under the Indira Gandhi Rajbhasha Puraskar Yojana from the President of India, Pranab Mukherji, at the Rashtrapathi Bhavan Auditorium in New Delhi, the bank said in a statement.

Kolkata-based Allahabad Bank was awarded the second prize in “region ‘C’” banks for the year 2012-13 under the Indira Gandhi Rajbhasha Shield Scheme of Department of Official Language, Ministry of Home Affairs.

According to a release issued by Allahabad Bank, its Chairman and Managing Director, Rakesh Sethi, received the shield from the President, Pranab Mukherjee, at a function help in the Rashtrapati Bhavan on September 14.

Union Home Minister Rajnath Singh also graced the occasion.

Allahabad Bank is celebrating the month of September as Hindi month, the bank said in a release.

Source : The Hindu

Read more »

Allahabad Bank registers 7 pc growth last fiscal

State-owned Allahabad Bank has registered a growth of 7 per cent in the last financial year.

"In the fiscal 2013-14, the bank's business stood at Rs 3.31 lakh crore, with deposits at Rs 1.90 lakh crore and advances at Rs 1.41 lakh crore," bank's chairman and managing director Rakesh Sethi told reporters here today.

He said that in the absence of takers of any corporate credit, the bank was now focusing on farm credit, retail and the MSME sector.

The newly-appointed CMD said that the bank would target arresting of slippages as well as maintaining asset quality.

Although the bank had obtained the RBI approval for qualified institutional placement (QIP), Sethi said the government nod was yet to come.

He said that the bank would raise Rs 320 crore from the market through QIP once the government approval was accorded to it.

The bank would celebrate its 150th year of existence tomorrow. It would open 150 units of branches, ATMs and e-lobbies tomorrow.

He said that the bank was eyeing the semi-urban and rural areas for growth.


Source: Economic Times

Read more »

Allahabad Bank gets shareholders' nod for preferential issue, QIP

City-based nationalised Allahabad Bank has got the shareholders’ approval for a preferential issue of Rs 400 crore and a Qualified Institutional Placement (QIP) of Rs 320 crore for shoring up the equity base of the lender.

At an extra-ordinary general meeting of the bank held here yesterday, the shareholders approved the preferential issue of Rs 400 crore to government against capital infusion.

The bank also sought nod of the shareholders to access the market for issue of equity shares through Qualified Institutional Placement (QIP) aggregating up to Rs 320 crore in such a manner that government’s holding will continue to be at 55.24 per cent of the total paid-up capital.

Allahabad Bank would issue and allot 4,45,83,147 equity shares of face value of Rs 10 each at an issue price of Rs 89.72 (including premium of Rs 79.72) per equity share on preferential basis to government.

Chairperson and Managing Director of Allahabad Bank Shubhalakshmi Panse said at the EGM that the money was needed to shore up the capital base of the bank to maintain future growth and Capital Adequacy Ratio under the BASEL-III regime.

Source: thehindubusinessline

Read more »

Allahabad Bank plans preferential issue of up to Rs 400 cr

Allahabad Bank has decided to issue equity shares worth up to Rs 400 crore to the Government of India on preferential basis.

According to a filing to the stock exchanges, the decision was taken at a meeting of the board of directors on Friday.

The bank has also decided to raise up to Rs 320 crore by way of Qualified Institutional Placement.

The issues will be made in such a way that the shareholding of the Government of India remains unchanged at 55.24 per cent.

The bank has called an extraordinary general meeting of shareholders on December 24, seeking their approval for the capital issue plan.

ayan.pramanik@thehindu.co.in

Source: thehindubusinessline

Read more »

Allahabad Bank seeks clarity on safe savings scheme

Allahabad Bank said on Thursday that it has sought a clarification from the RBI on whether it can collect public deposits on behalf of the West Bengal Government-promoted Safe Savings Scheme.

The bank had on Wednesday issued a statement claiming that the West Bengal Infrastructure Development Finance Corporation, a financial services company promoted by the State Government, had included its name as one of the bankers for accepting under the Safe Savings Scheme without its consent.

“Such schemes have to be in accordance with RBI’s guidelines. Moreover, we need consent from RBI to know if we can participate in such a programme or not. Clarifications have been sought from the RBI. We are awaiting a response (from them),” Shubhalakshmi Panse, CMD, Allahabad Bank said.

According to Panse, the bank was not sure if a non-banking finance company (NBFC) such as WBIDFC can raise public deposits through banks. “We do not know what happens to the deposit because it will not remain with us,” she said. WBIDFC had come out with an advertisement inviting application money from the general public requesting them to deposit it at any branch of these four banks in West Bengal.

The Safe Deposit scheme was proposed by West Bengal Chief Minister Mamamta Banerjee, after several people were duped in the Saradha scam.

abhishek.l@thehindu.co.in

Source: thehindubusinessline

Read more »

Allahabad Bank net profit climbs 18% to Rs 276 cr

Kolkata-based Allahabad Bank has reported a 17.77 per cent growth in net profit at Rs 276 crore for the quarter ended September 30, 2013.

The bank's total business stood at Rs 3,14,262 crore, a growth of approximately 15 per cent, over Rs 2,74,116 crore it reported in the corresponding quarter last fiscal.

According to Subhalakshmi Panse, CMD, Allahabad Bank, the Centre has decided to opt for a capital infusion of Rs 400 crore in the bank.

The bank would also opt for Qualified Institutional Placement (QIP) to the tune of Rs 330 crore. Depending on market conditions, QIPs could either be by the end of this fiscal or in 2014-15.

Abhishek.l@thehindu.co.in

Source: thehindubusinessline

Read more »

Allahabad Bank keen to restructure MFI accounts

Allahabad Bank is keen on restructuring accounts of micro finance institutions (MFIs) for a second time and it is for promoters to come up with a solution, an official of the bank said.

“The bank will not write off the MFI accounts. But we are keen to do a second round of restructuring,” the official said.

The official said that for the first year, the assets would be treated as non-performing, and would be upgraded to standard asset after accounts start performing.

“Lending to MFIs is not the bank’s core business. It is up to the promoters to come up with a solution. We are there as far as second restructuring is concerned,” he added.

Source: thehindubusinessline

Read more »

Allahabad Bank to focus on retail segment

In a bid to focus on its retail credit business, Kolkata-headquartered Allahabad Bank has set up 40 centralised retail banking boutiques. These come in addition to the 59 retail banking boutiques that allow faster processing, appraisal and sanction of retail loans.

According to a press release issued by the bank, it has taken steps to speed up sanction of housing loans within six working days and car (vehicle) loans within 48 hours.

Financing of commercial vehicles (to transport operators) will be through its All Bank Fleet Finance Scheme; wherein, loans above Rs 2 crore are sanctioned.

Allahabad Bank, the release stated, has also entered into a tie-up with automobile manufacturers such as Piaggio Vehicles, Tata Motors, Ashok Leyland, Hindustan Motors, Bajaj Auto, Force Motors, amongst others for financing their vehicles.

Shares of Allahabad Bank closed at Rs 77.30, up by 1.51 per cent, at the BSE, on Thursday.

abhishek.l@thehindu.co.in

Source: thehindubusinessline

Read more »

Allahabad Bank not to hike lending rates

Public sector lender Allahabad Bank on Wednesday said it is not going to hike lending rates despite RBI raising rates and tightening liquidity to stem rupee volatility.

The RBI stance would not put any pressure on the funding cost and there is no need for an upward correction of the base rate, the bank said in a statement.

Earlier this week, the RBI made cost of fund expensive by announcing a slew of measures including hiking the lending rates for banks and sucking up of Rs 12,000 crore, to make the currency dearer.


Source: thehindubusinessline

Read more »

Allahabad Bank, LIC tie up

Allahabad Bank has signed an agreement with the Life Insurance Corporation of India for selling micro-insurance products. According to a release, these insurance schemes are aimed at providing “appropriate” financial products and services to the weaker sections and low-income groups at an affordable cost. These schemes will be sold through the bank’s network of business correspondents.

Source: thehindubusinessline

Read more »