Monday, August 11, 2008

Allahabad bank hikes BPLR leave existing housing, personal loans

On Friday 8 August 2008 Allahabad bank raised its benchmark prime lending rate by 50 basis points to 14%. After the hike in bps rates, bank gained 1.40% to Rs 65.20 at 13:43 IST on BSE. The bank announced the hike during trading hours on 8 August 2008.

On the other hand BSE Sensex was losing by 103.25 points, or 0.68%, to 15,014. On BSE shares were trading at 1.09 lakh in the counter. In the past one quarter the scrip in an average daily had a volume of 2.77 lakh shares. Now updated interest rate for Allahabad Bank is available at one click so check them today.

During the day stock had gained at Rs 65.50 and downfall at Rs 62. Earlier stock had gained a 52-week high of Rs 143 on 3 January 2008 and a downfall of 52-week low of Rs 53.10 on 2 July 2008. Allahabad bank has an equity capital of Rs 446.70 crore and the face value per share is Rs 10.

The current price of Rs 65.20 discounts its Q1 June 2008 annualized EPS of Rs 8.36, by a PE multiple of 7.80.

Bank sources said the existing housing loan, personal loan; education and car/auto loan customers will not be affected with the hike in benchmark prime lending rate (BPLR). It further added that the housing loan up to 30 lakhs will not be affected by the hike in BPLR.

Earlier in Q1 June 2008 Allahabad Bank's net profit fell 53.4% to Rs 93.36 crore on 20.5% growth in operating income to Rs 1849.63 crore as compared to Q1 June 2007.

Allahabad Bank is providing treasury and banking operations including accepting deposits, lending loans and to provide other financial related services.

Government of India has a stake of 55.23% in Allahabad Bank

4 comments:

Realty Rider said...

Sensing a correction in the real estate sector, commercial banks have become selective in lending to new residential and commercial real estate projects. Besides increasing the lending rates, some banks have asked the promoters to increase their share in project funding in an attempt to mitigate the associated risks. Banks have already turned selective in taking up new funding proposals. The Reserve Bank of India has already declared the real estate space as a sensitive sector under its prudential norms. The sector thereby attracts higher risk weightage (banks have to set aside higher amount of capital for real estate exposure) and the lending is closely monitored. Keeping with the rising cost of funds and the need for additional capital for risky assets, the banks have increased the lending rates for real estate projects. The real estate companies are now paying prime lending rates (PLR) for new projects. The growth in loans to commercial real estate remained high, notwithstanding some moderation, RBI said in its macro-economy report for 2007-08.For more view- realtydigest.blogspot.com

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Pawan Sharma said...

Real estate sector is not bouce back due to this commercial banks have become selective in lending to new residential and commercial real estate projects. Besides increasing the lending rates, some banks have asked the promoters to increase their share in project funding in an attempt to mitigate the associated risks. Banks have already turned selective in taking up new funding proposals. The price of reality ready to increase by/within next quarter. The accelerated pace has spure a momentum in Reality sector. The leading banks have decreased the interest rates of home loans and the inflation level is also decreasing. Therefore, putting all together, the most property buyers are putting their money in different projects. , The Reserve Bank of India has already declared the real estate space as a sensitive sector under its prudential norms. The sector thereby attracts higher risk weightage (banks have to set aside higher amount of capital for real estate exposure) and the lending is closely monitored. Keeping with the rising cost of funds and the need for additional capital for risky assets, the banks have increased the lending rates for real estate projects. The real estate companies are now paying prime lending rates (PLR) for new projects. The growth in loans to commercial real estate remained high, notwithstanding some moderation.