The Hindu Business Line : Allahabad Bank plans ADR/rights issue

The company may take up miscellaneous non-fund based activities, including merchant banking, project appraisal and distribution of investment products.

The company, which has a capital base of Rs 60 crore, does not have any liability. It was initially started to conduct leasing activities, which did not materialise in the desired manner. The bank, however, had retained the outfit although it stayed inactive.

"Distribution of savings and investment products could be one of its main activities in the days ahead," said Mr O.N. Singh, CMD, Allahabad Bank. The bank plans to work out an ADR or a rights offer with the intention of raising resources. It plans to mobilise around Rs 100 crore and is waiting for the right moment to decide on the instrument.The bank also plans to unveil its first overseas branch in Hong Kong, which has been okayed by its board. It will approach RBI for approval.

For the remaining part of the year, the bank has proposed to focus on farm credit. "We hope to achieve a major growth in agri business," Mr Singh told newspersons. The farm sector has major potential for the banking industry, he added.

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