Allahabad Bank surged 11% to Rs.19.70 and continues to remain pretty strong at Rs.19 levels. Volumes are robust, jumping up 4 times. Its 20% UC for today is at Rs.21.30.
The Bank announced yesterday evening that the President of India has sanctioned the release of fresh capital infusion fund of Rs.2,153 crore towards the contribution of the central government in the preferential allotment of equity shares of the bank during the financial year 2019-20.
This capital infusion comes just before the merger of the bank with Indian Bank to help meet the regulatory requirements to get amalgamated with a bigger bank.
Capital infusion helps increase the capital base to facilitate more lending which in turn spurs growth.