Public sector lender Allahabad Bank is planning to raise Rs 350 crore by issuing shares to its employees under the employee stock purchase scheme (ESPS), MD & CEO Usha Ananthasubramanian said on Monday. She added that the plan has been approved by the finance ministry and the Reserve Bank of India (RBI); however, the bank was awaiting a nod from the Securities and Exchange Board of India (Sebi). “It may not happen in this quarter but it should be done by the first quarter of the next calendar year (CY2018),” she said on the sidelines of the FIBAC banking conference in Mumbai. Ananthasubramanian said that the lock-in for the purchase programme is expected to be one year. “If the shares are doing well, even at Rs 10 more, you can make money and walk out,” she said, adding that the plan is to develop employees as a class of investors.
Meanwhile, Allahabad Bank had said in a regulatory filing last month that of the approval for raising up to Rs 2,000 crore, the share issue and allotment committee of the board of directors has approved raising equity capital up to Rs 1,000 crore through qualified institutional placement in one or more tranches during FY18.