Allahabad Bank Share Price

Allahabad Bank Stock Trends in 2018

1. On January 2, 2018, the opening stock price of Allahabad Bank on the NSE was Rs.74. The price didn't vary considerably in the first half of the month. In the second half, however, the shares lost close to 8% to descend into the Rs.60 region.
2. The month of February was a tumultuous one for the investors. The shares lost close to 20% in a steep manner owing to turbulence and uncertainties in the international markets. The closing price of the scrip on February 28 was Rs.52.65 on the NSE.
3. The shares lost slightly more in March and they dropped into the Rs.40 region. Through the course of March, the Allahabad Bank shares were seen trading at levels below Rs.50. The scrip didn't make any noticeable gains in this period. The shares recovered marginally in April to go beyond the Rs.50 mark, although they failed to find momentum at those levels.
4. This small rise was followed by another sharp decline in the stock price and this time, the shares lost significantly to go below Rs.45. There were a couple of instances in the month of May when the shares dipped into the Rs.30 region. Once again, the prices recovered in June although they didn't go above the Rs.45 mark, except on a couple of instances.
5. The same trend was seen in the months of July and August as well. The shares maintained their bearings at levels varying from Rs.40 - Rs.44. Things worsened slightly in September and the shares hit their 52-week low at Rs.35.75 on the NSE. As of September 25, the shares were seen trading at levels close to Rs.37.

Allahabad Bank Stock Trends in 2016 and 2017

1. At the start of 2016, the stock price of Allahabad Bank was varying at levels close to Rs.70. Like several stocks that month, this particular scrip lost massively to descend onto the levels below Rs.50 by mid-February. However, the prices managed to recover slightly over the course of March, although those gains were not as significant as the ones made previously. The closing price of the scrip on March 31 was Rs.54.85 on the NSE.
2. The Allahabad Bank share price improved marginally in the month of April, only to shed those gains in the subsequent weeks. The stocks were seen trading at levels above Rs.50, without making any discernible gains. It wasn't until the second half of June that the prices rose sharply - the scrip gained close to 50% to touch the Rs.80 mark by mid-July.
3. Through the months of July, August, and September, the shares were seen changing hands at levels varying from Rs.79 - Rs.85. In the month of October, the scrip commenced a bear run which was seen for the remainder of the year. The Allahabad Bank stocks lost close to 25% in the final quarter of the calendar year. The closing price of the scrip on December 30 was Rs.60.20.
4. 2017 started on a positive note for the investors. The shares commenced the year trading at Rs.60. The shares gained steadily over the course of the first three months to eventually cross the Rs.70 mark. By March, the shares had gained close to 15% to end the month at Rs.73.45.
5. April and May turned out to be a remarkable time for the stakeholders. The scrip gained handsomely in this period to eventually reach the psychologically important mark of Rs.90. However, the shares failed to find momentum at those levels and eventually, they descended sharply to their previous levels at Rs.70.
6. Though the months of June and July, the shares maintained their bearings steadily levels varying from Rs.68 - Rs.75. A similar trend was seen in the months of August and September as well. The stocks didn't make any noticeable gains in these months.
7. In the final week of October, the share price of Allahabad Bank rose sharply to reach its 52-week high at Rs.89 on the NSE. However, once again, the shares failed to find a steady heading above the Rs.80 mark and consequently, they retreated back to their previous levels through the months of November and December. The closing price at the end of 2017 was Rs.73.45.

Should you invest in Allahabad Bank Limited Shares?

1. Allahabad Bank is a nationalised bank owned by the Government of India. It is one of the oldest banks in the country and caters to a variety of segments such as personal, business, corporate, and NRI. It offers a comprehensive range of banking and financial services and products.
2. For the year ended on March 31, 2018, Allahabad Bank reported an increase of 5.81% in its deposits and 5.27% in its advances, y-o-y. Considering its profit and loss statement, the bank reported its net interest income to be down by 10.49% in comparison to the previous financial year.
3. For the FY 2017-18, the provisions and contingencies were up by 94.07% y-o-y. This, combined with a drop in net interest income and operating profit severely impacted the profitability of the company. The bank reported an astounding loss of Rs.4,674 crore, as against a loss of Rs.314 crore for the previous fiscal year.
4. As for the bank's asset quality, its Gross NPA ratio worsened from 13.09% to 15.96% y-o-y. Similarly, its Net NPA ratio improved marginally from 8.92% to 8.04%, y-o-y. In comparison to its peers, it is well above the public-sector bank average of 12.9%.
5. Considering the performance of the stock, the bank hasn't given a dividend since 2015. Furthermore, year after year, the scrip has moved up marginally to deliver small returns. Needless to mention, the bank is struggling to report a profit and the same has been reflected in its stock performance too.
6. However, with the intervention of the Reserve Bank of India to tackle the bad loans problem, we may see the situation improve in the coming months. A long-term investor may benefit by investing in this stock, although there are superior banks in the same sector. Whatever may be the case, it is strongly recommended to research thoroughly before investing.

Company Information

Allahabad Bank Limited is a public-sector bank owned by the Government of India. It is the oldest bank in India and has been in business for more than 150 years. It offers an array of banking and financial products to its customers like accounts & deposits, cards, loans, insurance, et cetera. It caters to personal, business, NRI, and corporate segments. As of March 2018, Allahabad Bank has a little over 3,200 branches in India.

History of the Allahabad Bank

The history of Allahabad Bank can be traced back to the year 1865 when the bank was founded by a group of Europeans in Allahabad. In 1920, the bank became a part of the P&O Banking Corporation Group. The decade also saw the bank move its head office to Calcutta. Over the course of next couple of decades, the bank continued its operations and eventually expanded its reach in India. The bank was nationalised in the year 1969. In a bid to boost its presence, United Industrial Bank Limited was merged with Allahabad Bank in 1989. In 2002, the bank came up with its first Initial Public Offer of 10 crore equity shares. In 2005, it came up with a Follow-on Public Offer of 10 crore equity shares. In 2010, the bank's core business crossed the Rs.1,75,000 crore mark. At the same time, it had also established more than 1,500 branches in the country.

Management of the Company

Mr. S. S. Mallikarjuna Rao - Managing Director, Chief Executive Officer

Mr. S. S. Mallikarjuna Rao presently serves as the Managing Director and Chief Executive Officer of Allahabad Bank - the two key posts he has held since September 19, 2018. Prior to his appointment, he served as the General Manager and Chief Financial Officer of Oriental Bank of Commerce. In addition to his present responsibilities, he serves as the Executive Director of Syndicate Bank Limited. He has been a part of the banking sector for more than 30 years and has held various key positions over the years. He holds a Bachelor's' degree in Science and an Advanced Diploma in Relational Database Management System.

Mr. N. K. Sahoo - Executive Director

Mr. N. K. Sahoo has been the Executive Director of Allahabad Bank since March 2015. Before joining this organisation, he served in the capacity of General Manager of the Canara Bank at its London branch. He started his banking career in 1983 as an Agriculture Officer and since then, he has worked in various banking divisions at various levels. He has undergone various training programs at several reputed institutes like IIM Bangalore, JNIDB Hyderabad, ISB Hyderabad, et cetera.

Mr. Sanjay Aggarwal - Chief Financial Officer & General Manager of Finance and Accounts

Mr. Sanjay Aggarwal currently serves as the CFO and GM of Finance and Accounts at Allahabad Bank Limited. He has held these positions since April 2018. Prior to this, he served as the General Manager of Recovery & Law at the Head Office of the Bank. In addition to this, he has served as the General Manager of Zonal Office - Mumbai.

Allahabad Bank Listings in NSE, BSE, and Stock Market Indices

The equity shares of Allahabad Bank was listed on the country's two major stock exchanges - the National Stock Exchange of India Limited and the Bombay Stock Exchange. These shares are available to the general public for trading. The respective call signs for the same are as follows:

1. NSE Code: ALBKEQ
2. BSE Code: 532480
3. ISIN: INE428A01015
4. Sector: Banks - Public

Coming to the stock market indices, the company comprises the following:

1. Nifty 500
2. Nifty Full Smallcap 100
3. Nifty Smallcap 100
4. Nifty Smallcap 50
5. S&P BSE Finance
6. S&P BSE PSU
7. S&P BSE SmallCap
8. S&P BSE 500

Registered Office

Allahabad Bank

2, N.S. Road,

Kolkata - 700-001

West Bengal, India

Contact number: 2242-0915/0863/0900

Email: customercare@allahabadbank.in

Stocks vs. Mutual Funds: here's what we recommend

Stock market investments require a lot of research and knowledge. They do not generally offer any tax benefits and are regarded as high-risk investments. Hence,it is crucial to have a diversified portfolio. At Bankbazaar, we encourage our readers to invest on mutual funds.It doesn't require a lot of knowledge and equity linked mutual fund schemes offer tax benefits. Additionally, since mutual funds comprise stocks from multiple companies, they help in building a diversified portfolio.

DISCLAIMER:

The contents of this post/blog does not constitute financial or other professional advice nor does it imply in any manner a principal-agent relationship, and is not a professional advice on a specific financial matter.