ALLAHABAD BANK

(Constituted under the Banking Companies (Acquision and Transfer of Undertakings) Act, 1970)
Head Office : 2, Netaji Subhas Road, Kolkata 700 001
Tel.:(033) 22423373, 22420883 Fax.: (033) 22104048, 2242 4048
E-mail: allahabad_fpo@allahabadbank.co.in

BASIS OF ALLOCATION

Public Issue of 100,000,000 Equity Shares of Rs.10 each for cash at a price of Rs.82 per share aggregating Rs.8,200 million (The "Issue") by Allahabad Bank ("The Bank " or "The Issue"). The Issue comprises Net Issue to the Public of up to 80,000,000 Equity Shares of Rs.10 each, a reservation for Employees of up to 10,000,000 equity shares of Rs.10 each and a reservation for Existing Shareholders of up to 10,000,000 Equity Shares of Rs.10 each, at the Issue Price. The Issue would constitute 22.38% of the fully diluted post Issue paid-up capital of the Bank

THE FACE VALUE OF THE EQUITY SHARES IS RS.10/- EACH AND THE ISSUE PRICE IS RS.82, IS 8.2 TIMES OF FACE VALUE

The Issue was made through the 100% Book Building Process wherein 50% of the Net Issue to the public was to be allocated on a discretionary basis to Qualified Institutional Buyers. Further, not less than 155% of the Net Issue to the public was to be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Net Issue to the public was to be available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received at or above the Issue Price. Up to 10,000,000 Equity Shares shall be available for allocation on a proportionate basis to the Employees, subject to valid Bids being received at or above the Issue Price and the maximum Bid in this portion was limited to 2,500 Equity Shares. Up to 10,000,000 Equity Shares was to be available for allocation on a proportionate basis to the Existing shareholders, subject to valid Bids being received at or above the Issue Price

The Board of Directors of Allahabd bank wish to thank the Investing Public for their response to the Issue. The Issue received 176,980 valid bids for 874,301,925 Equity Shares resulting in 8.74 times subscription. The details of the applications received in the Issue from Employees, Existing Shareholders, Retail, Non-Institutional bidders and Qualified Institutional buyers categories are as under:

*After eliminating Cheque returns   # Including Bids at cut-off price

Final Demand
The final demand at different bid prices is as under:

The Basis of Allocation was finalized in consultation with The National Stock Exchange, Mumbai (Designated Exchange) on April 23, 2005

(A) All ocation to Employees
The Basis of Allocation to employees of Allahabad Bank, who have bid at cut-off or at the Issue price of Rs. 82/- per
Equity Share was finalized in consultation with NSE. The total numberof shares allotted in this category is 10,000,000.
The allotment was firm for all the valid bids.

(B) Allocation to Existing Shareholders
The Basis of Allocation to Existing Shareholders of Allahabad Bank, who have bid at cut-off or at the Issue price of Rs. 82/- per Equity Share was finalized in consultation with NSE. The total numberof shares allotted in this category is 10,000,000.
A sample of the category wise details of the Basis of Allocation is under:

(C) Allocation to Retail Investors                               
The Basis of Allocaton to employees of Allahabad Bank, who have bid at cut-off or at the Issue price of Rs. 82/- per
Equity Share was finalized in consultation with NSE. The total number of shares allotted in this category is 28,000,000
Equity Shares. The category wise details of the Basis of Allocation are as under: 

(D) Allocation to Non Institutional Investors                 
The Basis of Allocation to Non Institutional Investors, who have bid at the Issue price of Rs. 82/- per Equity Share (was finalized in consultation with NSE. The total number of shares allotted in this category is 12,000,000 Equity Shares. A sample of category wise details of the Basis of Allocation is as under:

(E) Allocation to QIBs

The Chairman and Managing Director of Allahabad Bank approved the basis of allocation and allotment of shares on April 25, 2005.

The despatch of Refund Orders is being made to the address of the Investors as registered with the depositories. Necessary steps are being taken for the credit of the allotted shares to the successful applicants subject to validation of account details with the depositories concerned. Issue is taking necessary steps to get the Equity Shares admitted for trading on the National Stock Exchange, The Stock Exchange, Mumbai and The Calcutta Stock Exchange within seven working days from the date of approval of Basis of Allocation.

INVESTORS PLEASE NOTE:
These details of the allocation made would also be hosted on the website of registrars to the Issue, MCS Limited at http://www.mcsind.com. All future correspondence in this regard may kindly be addressed to the Registrar to the Issue quoting full name of the First/Sole applicants, Serial number of the bid-cum-application form, number of shares bid for, name of the Member of the Syndicate and place where the bid was submitted and payment details at the address given below:

MCS Limited (Unit: Allahabad Bank - FPO), Sri Padmavati Bhavan, Plot No. 93, Road No. 16, MIDC Area, Andheri (East), Mumbai 400093 Tel: (91 22) 2820 1785; Fax (91 22) 28201783, E-mail: allahabad_fpo@mcsind.com;
website: http://www.mcsind.com/

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARE ON LISTING OR THE PROSPECTUS OF THE BANK