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Allahabad Bank to offer Rs 700 crore securities for buy-back
Kolkata, July 01: Allahabad Bank today said it would participate in the centre`s security buy-back plan and offer Rs 700 crore worth of securities under the scheme scheduled to start on July seven while targeting 13.70 per cent growth in total business during the current fiscal.
Kolkata, July 01: Allahabad Bank today said it would
participate in the centre's security buy-back plan and offer
Rs 700 crore worth of securities under the scheme scheduled to
start on July seven while targeting 13.70 per cent growth in
total business during the current fiscal.
"Based on recent calculation, we have identified Rs 700 crore worth of securities that could be offered under the government's buy-back programme", Allahabad Bank executive director K K Rai said. Rai, who was talking to reporters after the bank's first annual general meeting after going public last year, said, "We are eagerly awaiting for July seven when the buy-back will start under Reserve Bank of India supervision".
He said the government securities held by banks were so far illiquid, but providing high yields. "Even if we agree to offer these at discount, we stand to benefit as we will get tax benefit apart from liquid cash that will be utilised for improving the balance sheet", Rai said.
Commenting on the bank's future plans, the executive director said, Allahabad Bank would continue its thrust on retail lending and would come out with a new scheme for loan against mortgage of immovable property as also a low-cost insurance scheme for the depositors in collaboration with life insurance corporation.
"The loan against mortgage scheme would be launched by end of July and attract an interest between 12 and 13 per cent", he said.
Bureau Report
"Based on recent calculation, we have identified Rs 700 crore worth of securities that could be offered under the government's buy-back programme", Allahabad Bank executive director K K Rai said. Rai, who was talking to reporters after the bank's first annual general meeting after going public last year, said, "We are eagerly awaiting for July seven when the buy-back will start under Reserve Bank of India supervision".
He said the government securities held by banks were so far illiquid, but providing high yields. "Even if we agree to offer these at discount, we stand to benefit as we will get tax benefit apart from liquid cash that will be utilised for improving the balance sheet", Rai said.
Commenting on the bank's future plans, the executive director said, Allahabad Bank would continue its thrust on retail lending and would come out with a new scheme for loan against mortgage of immovable property as also a low-cost insurance scheme for the depositors in collaboration with life insurance corporation.
"The loan against mortgage scheme would be launched by end of July and attract an interest between 12 and 13 per cent", he said.
Bureau Report