Allahabad Bank receives capital of Rs 2,153 crore from centre

Allahabad Bank

Public lender Allahabad Bank has received a fresh capital infusion worth Rs 2,153 crore from the centre in the current financial year.

Allahabad Bank

The Department of Financial Services through a written communication on Thursday declared the sanction for release of the fresh capital infusion fund of Rs 2,153 crore, said Allahabad Bank in a regulatory filing.

The capital infusion granted refers to the central government’s contribution in the preferential allotment of equity shares of the lender during the financial year 2019-20 as the centre’s investment, it said.

The announcement of infusion of the capital into the lender by the government comes ahead of the amalgamation with Indian Bank and it will help the lender in meeting the regulatory requirement to get merged with a bigger bank.

As a matter of fact, Allahabad Bank does not feature in the list of lenders who were cleared for a total fresh capital infusion of Rs 55,250 crore, as announced on August 30 by the centre.

In this list, Punjab National Bank was been approved to receive Rs 16,000 crore, Union Bank of India Rs 11,700 crore, Canara Bank Rs 6,500 crore and Indian Bank Rs 2,500 crore.

Moreover , Bank of Baroda received a infusion of Rs 7,000 crore, Indian Overseas Bank Rs 3,800 crore and Central Bank of India Rs 3,300

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