The company board approved raising equity capital by an amount aggregating to Rs 1790 crore by way of preferential issue to the Government of India.
Shares of Allahabad Bank fell 3.6 percent intraday Tuesday as company reported net loss of Rs 1,944 crore for the quarter ended June 2018.
The company had reported net profit of Rs 28.8 crore in the same quarter last fiscal.
Meanwhile, company's net loss declined from Rs 3,509.63 crore reported in Q4FY18.
Gross NPA was flat at 15.97 percent, while net NPA was down at 7.32 percent, QoQ.
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On the absolute term, the company's gross NPA was down at Rs 25,068 crore and net NPA was down at Rs 10,410 crore, QoQ.
Provisions for the quarter was at Rs 2,763 crore versus Rs 4,783 crore, QoQ and 1,335 crore, YoY.
Net Interest Income (NII) rose 37 percent at Rs 1,704 crore against Rs 1,243 crore.
The company board approved raising equity capital by an amount aggregating to Rs 1790 crore by way of preferential issue to the Government of India (President of India) against their capital infusion of Rs 1790 crore in the bank for FY 2018-19, subject to approval of shareholders and all other requisite statutory/ regulatory approvals.
The extraordinary general meeting (EGM) of the bank is scheduled to be held on September 18 for obtaining shareholders' consent/ approval for said preferential issue to the Government of India.
At 12:48 hrs Allahabad Bank was quoting at Rs 41.15, down Rs 1.55, or 3.63 percent on the BSE.
Posted by Rakesh Patil