CRISIL ASSIGNS P1+ FOR ALLAHABAD BANK CERTIFICATE OF DEPOSIT

Allahabad Bank's Certificate of Deposit programme has been assigned the highest rating of 'P1+' by CRISIL Limited.

Allahabad Bank, one of the largest commercial banks in India and ranked eighth largest in terms of assets, proposes to raise Rs.10 billion through the Certificate of Deposit Programme. The CRISIL rating of 'P1+' indicates that the instrument is "Very Strong" in terms of timely payment of interest and principal. Crisil's ratings are normally valid for a one-year period.

It may be recalled that last week, Allahabad Bank also filed a draft Red Herring Prospectus with the Securities & Exchange Board of India to enter the capital market with its second public issue of equity shares aggregating 100 million equity shares of Rs. 10 each for cash at a premium to be decided through the book building process. The issue is to be made through a 100% book-built process.

Allahabad Bank, amongst the oldest banks in India, caters to over 15 million customers across India through its network of 1938 branches. The Bank has grown rapidly in recent years. As on 31st December, 2004, its total business was Rs.589281.2 million. In the first nine months of fiscal 2005, total income was Rs.28.56 billion and net profit was Rs.4.62 billion.

Between fiscal 2002 and 2004, the Bank's total income grew at a compound annual rate of 13.4% while unadjusted and adjusted net profit grew at a compound annual rate of 140.4% and 145.95% respectively. Total deposits and total advances during the same period grew at a compound annual growth rate of 17.8% and 20.4% respectively.

Publicity Cell,
Kolkata,
23rd February,2005