Allahabad Bank gains 2% as lender considers merger of subsidiary with self

NEW DELHI: Shares of Allahabad Bank gained 2 per cent ahead of its board meet on Wednesday to consider a merger proposal with subsidiary AllBank Finance.

In a filing to BSE on Saturday, the bank said, "The board of state-owned Allahabad Bank will meet on Wednesday to consider a draft scheme of amalgamation of its wholly-owned subsidiary AllBank Finance."

Following the development, the stock rose 2.41 per cent to hit a high of Rs 74.10 on BSE. It settled at Rs 72.95, up 0.83 per cent, on Monday.

AllBank Finance (ABFL) is a leading merchant banker and has been holding licence for Debenture Trusteeship since February 2010.

“A meeting of Board of Directors is scheduled to be held on Wednesday, the 20th September, 2017, inter-alia, to consider Draft Scheme of amalgamation of... AllBank Finance Ltd with the bank,” the state-owned lender said in a regulatory filing.