Allahabad Bank share price rises up to 11% after govt approves capital infusion of Rs 2,153 crore

Allahabad Bank share price rose in early trade today after the public sector lender said the government would infuse Rs 2,153 crore into the lender, which will be released during the current financial year of 2019-20. Share price of Allahabad Bank rose 11% to Rs 19.7 compared to the previous close of Rs 17.75 on BSE.

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The mid cap stock has gained after 3 days of consecutive fall. The stock opened with a gain of 4.79% at Rs 18.60 today. On NSE, the stock gained 10.98% to Rs 19.70 compared to the previous close of Rs 17.75.

Allahabad Bank stock has lost 58.62% during last one year and fallen 58.35% since the beginning of this year.

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"The President has sanctioned the release of fresh capital infusion fund of Rs 2,153 crore towards contribution of the Central Government in the preferential allotment of equity shares of the bank during the financial year 2019-20, as Government's investment," the bank said in an exchange filing, post-market hours, on Thursday.

In the Budget speech this year, FM Nirmala Sitharaman had announced capital infusion of Rs 70,000 crore into public sector banks, giving a much-needed boost to the stressed banks who were under pressure owing to the rising NPAs. Rs 70,000-crore recapitalisation amount was a small part of Rs 2.11 lakh crore that government planned to give to the banking sector in the next few years.

By Aseem Thapliyal