Government stake in Andhra Bank rises 2 per cent to 60 per cent

Government shareholding in public lender Andhra Bank has gone up by 2.14 per cent after the latest round of capital infusion.

The city-headquartered lender has allotted 3,00,34,539 equity shares on preferential basis to the government, as per a filing with stock exchanges Thursday.

Government shareholding in the bank stood at 60.14 per cent from the earlier 58 per cent, according to the filing.

In an earlier filing, the bank said the extraordinary general meeting of its shareholders held on December 19 passed a special resolution to allot shares at Rs 66.59 apiece (including a premium of Rs 56.59 per share) in return for Rs 200-crore additional capital infusion.

Shares in Andhra Bank, on Thursday, settled at Rs 63 apiece on the BSE, up 0.72 per cent from the previous close. The 30-scrip benchmark index, Sensex, gained 0.20 per cent to 21,074.59 on this day.

The government infused around Rs 200 crore on December 20 towards issuance and allotment of equity shares on preferential basis, Andhra Bank had said on Monday.