Allahabad Bank Announces 15% Interim Dividend
The Board of Directors, Allahabad Bank, one of the largest commercial
banks in India and ranked eighth largest in terms of assets, at its meeting held on 26th
February,2005 declared an Interim Dividend at 15% for the financial year 2004-05. The
Record Date for the purpose of payment of interim dividend has been fixed as on
14.03.2005.
The decision to pay an interim dividend is also a reflection of the Board
of Directors' confidence in the strong growth pattern established in recent years and
particularly in the first nine months of the current year. 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.
It may be recalled that with a view to confirm to the capital adequacy
norms as notified in the Basel II declaration, Allahabad Bank last week 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. The Bank proposes to issue 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.
Of the total offer, the bank has reserved 10 million equity shares to be
offered to its employees and another 10 million equity shares to be offered to existing
retail shareholders.
Of the balance net offer of 80 million shares, 40 million equity shares
are reserved for allotment to qualified institutional buyers on a discretionary basis and
20 million shares are reserved for allotment to non- institutional buyers. The balance 20
million would be allotted to retail investors on a proportionate basis.
The book running lead managers for the issue are SBI Capital Markets, DSP
Merill Lynch Pvt. Ltd, ICICI Securities Ltd, J M Morgan Stanley Pvt. Ltd and Kotak
Mahindra Capital Company Ltd.
Publicity Cell,
26th February,2005
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