The Hindu Business Line : Allbank Fin to reduce capital base to Rs 15 cr

A petition moved before the Ministry of Company Affairs for confirming a reduction in the capital will be heard in mid-April. The petition is relevant under sections 100-105 of the Companies Act, 1956, and Rules 46-47 of the Companies (Court) Rules, 1959.

The proposal on capital reduction is part of the bank's plan to have a leaner outfit, sources aware of the development have indicated, adding that the subsidiary, which has for long been a partially dormant outfit, did find greater attention in recent times, with the parent bank exploring possibilities of revitalising it.

Allbank Finance is now expected to play a role in distribution of insurance - an area that Allahabad Bank is trying to enter through the joint venture route. The bank's proposed insurance venture, which will have a couple of other banking entities as local partners, is expected to rope in a foreign insurance major as well. A couple of overseas insurers, including Sompo of Japan, have been shortlisted already, sources mentioned.

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