A recent press report said that Allahabad Bank has issued a cheque for about Rs 166 crore to the Finance Minister, Mr Pranab Mukherjee.
The cheque was handed over by the bank’s Chairman and Managing Director, Mr J. P. Dua, and Executive Director, Mr. D. Sarkar. The Central Government holds 58 per cent stake in the bank at present. The amount is nothing but a 60 per cent dividend at Rs 6 per equity share for the financial year 2010-11.
The bank recently raised its lending rates by 25 basis points (bps). Mr. MR Nayak, executive director of the bank told the press that the bank has decided to hike the benchmark base rate by 25 bps to 10.25%.
Reports also said that the fresh and existing housing and car loans will become costlier due to the hike in interest rates as these are mostly linked to banks’ base rate. Interest rates on loans and advances are linked to base rate.
The bank offers home loan, personal loan, car loan, education loan etc to its customers. The hike in its rates will effect its existing and new borrowers.