Allahabad Bank to pay 60% dividend

KOLKATA: Shareholders of Allahabad Bank has approved a dividend of Rs 6 per equity share of face value Rs 10 for 2010-11, at the bank’s ninth annual general meeting.

Last year, it paid a dividend of Rs 5.5 a share.

At the AGM, the bank chairman and managing director JP Dua said that it will target to grow at 24% during 2011-12 and reach a business mix of Rs 2.80 lakh crore by March 2012. At the end of March 2011, its business stood at Rs
MR Dua said the bank plans to open four overseas branches this year and sought Reserve Bank of India’s clearance for the same.

"We have approached RBI to open a second branch in Hong Kong and branches in Dhaka, Singapore and Shanghai," he told shareholders.

The Kolkata-based entity has decided to raise $500 million overseas to support business growth of the Hong Kong branch, which has an outstanding loan portfolio of Rs 3,300 crore.

Allahabad Bank has placed a request with RBI for a branch in Kowloon, in the northern part of Hong Kong. It will be synergetic to the bank’s Hong Kong plan as Kowloon has a sizeable ethnic population and a good retail business potential, while the existing branch mainly does wholesale business.