Rs.37.00 Crores dividend Cheque handed over to Finance Minister Mr. P. Chidambaram.Allahabad Bank pays 15% interim dividend

The Union Government, which is the largest shareholder in Allahabad Bank with a 71.16% stake, was issued a cheque for Rs.37,00,50,000/- towards interim dividend for the year 2004-05. The cheque was handed over to the Union Finance Minister, Mr. P. Chidambaram by the Chairman & Managing Director of the Bank, Mr. O. N. Singh on 21st March, 2005.

Earlier the Board of Directors of Allahabad Bank has announced a 15% interim dividend to be paid for the current fiscal, 2004-05.

Allahabad Bank has been reporting sustained growth in recent years. As on December 2004, the bank’s total business was 589,281.2 million, while total income was Rs.28.56 billion and net profit Rs.4.62 billion.

Between fiscal 2002 and 2004, the bank’s total income grew at a compounded annual rate of 13.4%, and the unadjusted and adjusted net profit rose at a compounded annual rate of 140.4% and 145.95% respectively.

The spread has improved from 3.02% in 2002 to 3.39% in fiscal 2004. Besides improving the spread through improving yields on advances and investments, on the one hand, and the other reducing cost of funds, the bank’s management has made concerted efforts to strengthen the bottom line by actively pursuing business that would provide higher fee based income.

Allahabad Bank, with a view to conforming to the capital adequacy norms as notified in the Basel II declaration, will shortly be entering the Capital Market with its second issue of 100 million equity shares of Rs.10 each for cash at a premium to be decided through the book building process.

Marketing (Publicity Cell) Department,
21st March,2005