According to recent press reports Kolkata-based Allahabad Bank is planning to go for a medium term notes (MTN) issue to raise $500 million to fund its overseas expansion program. The senior officials of the bank said that the bank is expected to continue with the MTN issue in another three months, and will be listed on the Singapore Stock Exchange. The MTN issue is expected to stay alive for a term of at least five years.
Reports said that the bank is planning to set up new overseas branches in Shanghai, Singapore, Dhaka and Hong Kong.
J. P. Dua, Chairman and Managing Director, Allahabad Bank said that the bank is expecting a contribution of seven to eight per cent the bank’s overseas businesses in the coming years.
The bank reported nearly 15 per cent rise in profit to Rs 258 crore during the fourth quarter of the last fiscal as against Rs 225 crore during the corresponding period in 2009-10. Operating profit went up by close to 19 per cent to Rs 780 crore from Rs 658 crore and the net profit rose by nearly 18 per cent to Rs 1,423 crore. The bank has many retail loans in its portfolio including Car Loan, Personal loan etc which add to its income.
The board of directors proposed a dividend of 60 per cent (Rs 6 per equity share of Rs 10) for March 31, 2011. The bank has offered 55 per cent dividend in 2009-10.