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Allahabad Bank to raise Rs 500 cr in 2nd quarter

Written by: Staff

Kolkata, Jul 12: In a bid to meet BASEL II standard on 31st March,2008, Allahabad Bank, a leading public sector bank, will raise Rs 500crore in the second quarter of 2007-08 to maintain the CAR of 12 percent.

Speaking to mediapersons here today, Allahabad Bank ManagingDirector A C Mahajan said, '' The bank has headroom to raise Rs 1650crore. Out of this Rs 950 crore will be Upper Tier II and Rs 650 croreLower Tier II. We have to maintain the Cash Reserve Ratio(CAR) of 12per cent in order to meet the BASEL II standards.'' Elaborating on thebank's plan in this fiscal, Mr Mahajan said, ''We expect the bank'sadvances to touch Rs 50,000 crore at the end of this fiscal, a growthof 22 to 23 per cent. However, the growth in advances was 37 per centlast year and this year we may overshoot the growth target.'' The bankdeposit would grow at the rate of 18 to 20 per cent this year, comparedto 30 per cent last year.

''We expect high growth in the manufacturing sector this year,''he added. The bank's total agriculture portfolio is Rs 7300 crore.

The bank had a total exposure of Rs1300 to 1400 crore last year inagri sector, which would be maintained this year as well, he said.

When asked about the high deposit rates, he said the deposit rates were too high and it should be reduced.

Talking about the net profit outlook of the bank in this fiscal,Mr Mahajan expressed hope that the operating profit of the bank wouldincrease by 25 per cent.


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