The bank made the announcement at its Annual General Meeting on Monday, 15 June 2009
Meanwhile, the BSE Sensex was up 92.45 points, or 0.62%, to 14972.61
On BSE, 1.56 lakh shares were traded in the counter. The scrip had an average daily volume of 3.88 lakh shares in the past one quarter.
The stock hit a high of Rs 81.80 and a low of Rs 76.05 so far during the day. The stock had hit a 52-week high of Rs 90.90 on 2 June 2009 and a 52-week low of Rs 36.85 on 6 March 2009.
The stock had outperformed the market over the past one month till 15 June 2009, rising 29.56% as compared to the Sensex's return of 22.20%. It had also outperformed the market in the past one quarter, surging 98.33% as compared to the Sensex's return of 69.88%.
The mid-cap state-run lender has an equity capital of Rs 446.70 crore. Face value per share is Rs 10.
The current price of Rs 81.10 discounts the company's year ended March 2009 EPS of Rs 17.21, by a PE multiple of 4.71
Allahabad Bank will use options like innovative perpetual debt instrument (IPDI), upper tier 2 and lower tier 2 bonds to raise funds, reports indicated. However, the bank's chairman ruled out any immediate possibility of a rights issue or dilution of government stake from 55.23% as at end March 2009.
Allahabad Bank's net profit surged 55.70% to Rs 264.09 crore on 19.9% rise in operating income to Rs 2373.37 crore in Q4 March 2009 over Q4 March 2008.
However, the net profit declined 21.1% to Rs 768.60 crore on a 19.2% rise in operating income to Rs 8506.65 crore in the year ended March 2009 over the year ended March 2008.
The bank's gross non-performing assets (NPA) rose 6.69% to Rs 1078.24 crore as at 31 March 2009 from Rs 1010.61 crore as on 31 March 2008. The ratio of gross NPAs to gross advances declined to 1.81% as of 31 March 2009 from 2% as of 31 March 2008. The net NPA as of 31 March 2009 was at 0.72% of net advances.
At the time of announcing results, the board of directors of the bank recommended a dividend at the rate of Rs 2.50 per share (25%).
Allahabad Bank provides treasury and banking operations. The activities include accepting deposits, lending loans and to provide other financial related services.