Allahabad Bank is the top newsmaker in the social media and the news is not good. The stock price hit a new low today at Rs.42.05, going down some 5%.
Following the same path of restrictions it put on Dena Bank, RBI yesterday imposed restrictions on Allahabad Bank’s lending to risky assets and raising high-cost deposits in view of deteriorating financial health.
Additionally, the Govt has also initiated action to fire its CEO, Usha Ananthasubramanian and two executive directors of Punjab National Bank following the CBI's first chargesheet in the USD 2 billion NIrav Modi fraud at PNB detailing their role.
Allahabad Bank board has also been asked to divest Ananthasubramanian of all powers and initiate further action.
The Govt currently owns 65% stake in this bank.