Allahabad Bank to raise Rs 2,600 cr in 2010-11

CHENNAI: Public sector Allahabad Bank plans to raise Rs 2,600 crore in the current fiscal and expects a 25 per cent credit growth in the year, its Chairman and Managing Director J P Dua said here today.

"The board has decided to raise Rs 2,600 crore in the current fiscal from the market. It might be through preferential allotment of shares or through tier-I capital from the government," he told reporters.

The bank had sought Rs 1,000 crore from the Centre for its expansion activities. The capital adequacy of the bank was around 13.55 per cent, he said.

The bank reported a credit and deposit growth of 24.12 per cent and 21.16 per cent respectively, during the quarter.

Its net NPA stood at 0.41 per cent and net interest margin at 3.10 per cent as on June 30.

It reported a 15 per cent rise in net profit to Rs 347 crore in the first quarter of the current fiscal, he said.

The bank proposes to open three foreign branches in Hongkong, Shanghai and Dacca, he said, adding the governments concerned and the Reserve Bank of India have been approached for this purpose, he said.