Allahabad Bank to rope in strategic partner for merchant banking

Kolkata, June 10 (IANS) State-run Allahabad Bank is planning to rope in a strategic investor for its merchant banking division AllBank Finance Ltd after bolstering its operations, a senior official said here Thursday.

‘The merchant banking wing has started its operations. We want to expand its presence to five-six cities starting with Delhi and then maybe we may bring in a strategic partner,’ Chairman and Managing Director J.P. Dua said here on the sidelines of bank’s annual general meeting.

Dua was confident that the government would release Rs.1,000 crore sought by the bank in the second half of the year.

‘We understand that our application for Rs.1,000 crore has been processed by the government but we would get it in the second half of this year,’ he said.

With the government notifying that commercial banks cannot lend below the base rates from July 1, Allahabad Bank will finalise the rate within the next five-six days.

The bank would zero in on the base rate after taking in to account various factors like share of low-cost deposits.

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