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City bank duo in cash chase

Calcutta, Dec. 24: The shareholders of two city-based banks — Allahabad Bank and the United Bank of India (UBI) — have approved the preferential allotment of shares to the government.

Allahabad Bank’s shareholders agreed to issue Rs 400 crore to the government in 2013-14.

At an extra-ordinary general meeting today, the shareholders also agreed to the issue of equity shares aggregating up to Rs 320 crore through a qualified institutional placement, which will ensure that the promoter holding stays at 55.24 per cent of the total paid-up capital.

Allahabad Bank will issue 4.5 crore preferential shares for Rs 89.72 a share — a face value of Rs 10 and a premium of Rs 79.72 — the bank said in a statement.

Chairman and managing director Shubhalakshmi Panse said the move would enable the bank to shore up its capital base to maintain capital adequacy ratio in line with the Basel III norms.

UBI shares

The United Bank of India has also got approval for the preferential allotment of shares aggregating up to Rs 700 crore.

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