Allahabad Bank seeks Rs 900 crore capital from government

State-run Allahabad Bank said here today that it has sought a Rs 900-crore capital infusion from the government during the current financial year.
"We have asked for Rs 900 crore from the government. Usually it comes after September," Allahabad Bank's Chairman and Managing Director Rakesh Sethi told reporters on the sidelines of an annual banking event organised by FICCI and IBA here today.
The government has budgeted only Rs 11,200 for capital infusion in public sector banks during this fiscal.
Sethi further said the bank has board approval to raise Rs 320 crore from the government and a decision would be taken only if there is higher demand for credit.

"We have permission for a Rs 320 crore QIP, but (since) there is no demand for credit now, what do I do with that money," he asked.
When asked whether the bank plans to cut its lending rates, Sethi said that the decision would be taken by the asset liability committee.

The largest bank, State Bank of India cut the deposit rate today by 25 basis points to 8.75 per cent in the one to three years category, effective from September 18.
SBI has also increased its deposit rate by 25 basis points in the 180 days to 210 days category.

When asked whether Allahabad Bank plans a festive season offer on loans, Sethi said, "Our base rate is already at 10.25 per cent. So, how much lower can we go".