Kolkata, March 15 (IANS) State-run Allahabad Bank is looking to raise around Rs 500-600 crore capital in the next fiscal through dilution in stake of its joint venture insurance company and also by selling non-core assets, an official said on Friday.
This comes close on the heels of its coming out from the prompt corrective action (PCA) framework of the Reserve Bank of India.
“We are looking to raise capital around Rs 500-600 crore in the next fiscal through dilution in stake of our joint venture – Universal Sompo General Insurance Company Ltd and also by selling non-core assets like land and properties,” the bank’s MD and CEO S.S. Mallikarjuna Rao told reporters here.
According to the bank’s latest annual report, the Kolkata-based lender holds 28.52 per cent equity stake in the joint venture company for general insurance along with the Indian Overseas Bank, the Karnataka Bank, Dabur Investment Ltd. and Japanese insurance major Sompo.
The lender had appointed a consultant for valuation of the joint venture entity.
The bank is also looking to raise close to Rs 300 crore through sale of non-core assets. It has identified 11-12 properties, of which three or four are in Mumbai, Rao said.
According to Rao, the lender is hopeful of growing its advances by 8-10 per cent in 2019-20.
India’s first public-private general insurance company on Friday launched the online portal for its partner bank, Allahabad Bank, that will be integrated with the bank’s branch systems and would allow its employees to issue the co-branded health insurance product for their saving bank customers.