NEW DELHI: Shares of
Allahabad Bank declined nearly 6 per cent in Monday's session amid reports that the company is looking to raise around Rs 1,200 crore in
qualified institutional placement in the next three to five months.
The fundraising is a part of its Rs 4,500 crore
capital raising plan to pare government stake to below 75 per cent by October 2020, an ET report said.
The state-owned lender, which has reported a higher net loss of Rs 3,834 crore in the March quarter on higher provisions, is hoping to be back in black in the April-June quarter and is planning the QIP accordingly, the report added.
The bank witnessed Rs 2,800 crore of fresh bad loans while gross non-performing assets ratio dipped to 17.55 per cent as on March from 17.81 per cent a quarter ago. Net NPA dipped to 5.22 per cent from 7.70 per cent as the bank adjusted the bulk of the government's capital infusion to make loan loss provisions.
Shares of Allahabad Bank traded 4.56 per cent down at Rs 42.95 on BSE around 10:30 am.