Allahabad Bank banks on rate cut

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Meanwhile, the BSE Sensex was up 231.60 points, or 2.38%, to 9,965.82.

On BSE, 48,659 lakh shares were traded in the counter. The stock had an average daily volume of 2.06 shares in the past one quarter.The stock hit a high of Rs 53.90 and a low of Rs 51.50 so far during the day. The stock has a 52-week high of Rs 143 on 3 January 2008 and a 52-week low of Rs 42.05 on 27 October 2008.

The mid-cap bank stock had outperformed the market over the past one month till 6 November 2008, declining 15.38% as compared to the Sensex�s decline of 17.52%. It had also outperformed the market in the past one quarter, declining 18.72% as compared to the Sensex�s decline of 35.42%.

The bank�s current equity is Rs 446.70 crore. Face value per share is Rs 10.The current price of Rs 53.85 discounts the bank�s Q2 September 2008 annualized EPS of Rs 3.73, by a PE multiple of 14.44.

Allahabad Bank has decided to cut its benchmark prime-lending rate (BPLR) by 75 basis points to 13.25% with effect from 10 November 2008. The bank announced the rate cut before trading hours today, 7 November 2008.

The Reserve Bank of India (RBI) on Saturday, 1 November 2008, unexpectedly cut its repo rate or main short-term lending rate by 50 basis points to 7.5% and banks' cash reserve ratio (CRR) by 100 basis points to 5.5%. The RBI also cut banks' statutory liquidity ratio (SLR) by 100 bps to 24% of their deposits with effect from 8 November 2008.

Allahabad Bank�s net profit fell 82.60% to Rs 41.68 crore on 18.8% increase in operating income to Rs 1977.20 crore in Q2 September 2008 over Q2 September 2007.Allahabad Bank provides treasury and banking operations. The activities include accepting deposits, lending loans and to provide other financial related services.Government of India holds 55.23% stake in Allahabad Bank.

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Allahabad Bank to open two branches

KOCHI: The Kolkata-based Allahabad Bank will open two new branches in the State, K.R. Kamath, chairman and managing director of the bank has said. Talking to reporters here after inaugurating a branch at Fort Kochi on Wednesday, Mr. Kamath said the branches in the State would be in Kannur and Kasaragod.

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Bank branch inaugurated
KHAMMAM: The Allahabad Bank which opened its 2,230th branch in Khamam on Monday pledged to support capacity building of farmers, unemployed youths and women.