Allahabad Bank’s Nayak Says Fund Infusion Will Help Lending

M.R. Nayak, executive director, at state-owned Allahabad Bank (ALBK), comments on India’s annual budget released today by Finance Minister Pranab Mukherjee.

India more than doubled its target for a capital infusion into state-run banks to 158.9 billion rupees ($3.2 billion) for the year ending March 2013 as it sought to bolster risk buffers and boost credit growth.

Nayak spoke in a phone interview from Kolkata.

“Banks have been recapitalized which will help strengthen our position and enable us to lend more. We have asked for 10 billion rupees of capital from the government, but how much the government will give us depends on their decision. We asked for it three months back and expect some portion of this capital infusion by the end of this month.

‘‘This year’s budget will stimulate a lot of investment across sectors. Agro-based industries will have a good future.’’

To contact the reporter on this story: Pradipta Mukherjee in Kolkata at pmukherjee7@bloomberg.net

To contact the editor responsible for this story: Arijit Ghosh at aghosh@bloomberg.net

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