State-controlled Allahabad Bank on Wednesday said it will raise equity capital up to Rs 2,000 crore through qualified institutional placement (QIP).
"The share issue and allotment committee of the board of directors in its meeting held on date has accorded approval for raising equity capital of the bank by an amount aggregating up to Rs 2,000 crore," Allahabad Bank said in a filing to the Bombay Stock Exchange.
The Kolkata-headquartered lender said that this is part of the bank's plan to raise equity capital aggregating up to Rs 4,000 crore this fiscal.
"With the government having already infused regulatory capital, the bank proposes to raise growth capital from public during the year and has obtained board approval for raising equity capital up to Rs 4,000 crore through various modes," it said in the exchange filing.
Earlier this year, the government had announced a Rs 48,239 crore capital infusion in 12 public sector banks, including Allahabad Bank, to help them meet regulatory capital requirements. The Allahabad Bank would receive fund worth Rs 6,896 crore under the recapitalisation plan of the government, the Ministry of Finance had said.
The board has also approved financial results for the first quarter ended June 30, 2019. The public sector lender has posted net profit of Rs 128 crore for the June quarter against a net loss of Rs 1,944.37 crore in the year-ago period and Rs 3,834.07 crore loss in the preceding March quarter.
Total income declined to Rs 4,747.49 crore as against Rs 4,794.04 crore in the same quarter of the last fiscal, the bank said.
Meanwhile, shares of Allahabad Bank closed 3.20 per cent lower at Rs 37.80 apiece on the BSE on Wednesday.
Edited by Chitranjan Kumar