NEW DELHI: Shares of Allahabad Bank today tumbled nearly 9 per cent after the state-owned company said the Reserve Bank has imposed restrictions on its lending to risky assets and raising high-cost deposits in view of deteriorating financial health.
The stock tanked 8.60 per cent to end at Rs 40.40 on BSE. During the day, it lost 9.84 per cent to Rs 39.85 -- its 52-week low. At NSE, shares of the company slumped 8.60 per cent to close at Rs 40.35.
On the equity volume front, 6.44 lakh shares of the company were traded on BSE and over one crore shares changed hands at NSE during the day.
The stock was down 3.17 per cent in the previous trading session also.
The directive has come within days of the RBI imposing similar restrictions on another public sector lender Dena Bank, which is under the Prompt Corrective Action (PCA) of the central bank.
The central bank asked Allahabad Bank, which is already under the PCA mechanism, to restrict expansion of risk weighted average and reduce exposure to un-rated and high-risk advances, according to a stock exchange filing yesterday.
Last week, Allahabad Bank reported a standalone net loss of Rs 3,509.63 crore for the last quarter ended March of 2017-18 due to more than three-time rise in its provisions for bad loans.