AllBank may raise Rs 350cr by selling shares to employees

State-run bank Allahabad Bank is planning to raise Rs 350 crore through an employee share purchase scheme, a top official has said.
The lender has received approvals from both the finance ministry as well as the Reserve Bank for the plan, and is awaiting nod from the market regulator.
"We are expecting to raise Rs 350 crore through an employee share purchase scheme (ESPS). Through this we are developing employees as a class of investors," managing director and chief executive Usha Ananthasubramanian told reporters today.
The scheme will have a one-year lock-in period after which the subscribers can sell the shares. "If the shares do well, even at Rs 10 premium one can make money and walk out," she said.

The employees will be given shares at a discount, but the pricing is not yet decided, she said.
The lender has got clearance from the finance ministry and the RBI for the plan, she said, adding "We are awaiting the Sebi approval now."
But she said it may not happen in the current quarter and is likey to take place in the March quarter.