Allahabad Bank to raise Rs 300 crore through perpetual bond

Kolkata, Jan 16 (UNI) Allahabad Bank plans to raise Rs 300 crore through perpetual bonds in the last quarter this fiscal to increase its capital adequacy ratio.

" We have planned to come out with Rs 300 crore perptual bond during the last quarter. This will increase our capital adequacy ratio to 13 per cent from the present 12.84 per cent, " Chairman and Managing Director A C Mahajan today said.

Speaking to reporters after announcing the Bank's third quarter result, Mr Mahajan said the Board had already approved the plan.

The CMD also said the Bank, already deciding to make foray into insurance business, would launch its first product on February 11.

The Board would meet on January 22 to decide what exactly the product would be.

" There will be aggressive marketing of retail products, corss-selling of insurance and mutual fund products with more thrust on income generation, " Mr Mahajan said.

The Bank would give a notice tomorrow to National Insurance Company severing its tie-up for insurance service, he said.

Announcing the third quarter results, Mr Mahajan said the Bank posted 28.96 per cent growth in net profit at Rs 805.23 crore during April-December, 07 as against Rs 624.41.

The Bank also achieved a growth of 27.58 per cent in earnings in the quarter ended to Rs 365.05 crore as compared to Rs 286.12 crore in the corresponding period last year.

The earnings per share (EPS) for the quarter climbed 27.46 per cent to Rs 8.17 compared with Rs 6.41 in prior year period.

The interest earned for the quarter rose by 21.34 per cent at Rs 1583.49 crore, while the total income for the quarter climbed 36.77 per cent to Rs 1956.41 crore, when compared with the corresponding quarter, a year ago.

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