Allahabad Bank merged with Indian Bank from 01 April 2020

 

Allahabad Bank merged with Indian Bank from 01 April 2020

Allahabad Bank is one of the premier nationalized banks in India. It is also the oldest joint stock bank of India. It was incorporated by a group of Europeans at Allahabad on April 24, 1865. It was the time Indian economy had started shifting towards organized trade and business affairs. After some years in 1920, the P&O Bank brought Allahabad Bank and its headquarters at Kolkata. The Allahabad bank got an entirely new identity when it was nationalized in 1969 along with 13 other banks in India. Since then the Allahabad Bank had a smooth journey towards progress. Allahabad has adopted CBS (Core Banking Service) since 2006 and has developed 24 hours connectivity with its 2165 branches across the length and breath of the country.

Issued this special cover during 125 years of celebration of Allahabad Bank (2015)

Established in April 24, 1865, Allahabad Bank was headquartered in Uttar Pradesh’s Allahabad initially. It also had its presence in Gwalior district of Madhya Pradesh 45 years ago. The headquarters was later shifted to Kolkata after 20 years of establishment.

Allahabad Bank, one of the oldest public sector banks in India, will soon become history as it will be merged with Indian Bank on February 15. The merger process will begin from 9 PM on February 12 and complete at 9 AM on Monday. Finance Minister Nirmala Sitharaman had announced the merger of several public sector banks in Budget 2020 held in March last year. As a result, Allahabad Bank’s online services like net banking, fund transfer, issuance of cheques etc have already been stopped.

Effective April 1, Allahabad Bank will merge with Indian Bank, creating an entity with over 6,000 branches, 4,800 ATMs, 43,000 employees, 120 million customers and business mix of Rs 8 trillion. All branches of Allahabad Bank will function as branches of Indian Bank following the amalgamation of the two lenders as per Reserve Bank of India (RBI)’s notification dated March 28, 2020. Effective April 1, Allahabad Bank will cease to exist in its present form and will be officially merged with Indian Bank.

Indian Bank’s Managing Director and CEO Padmaja Chunduru said, “We warmly welcome the employees and customers of Allahabad Bank to the Indian Bank fold. We assure all that the bank would continue to deliver top-grade products and services to all its customers. We deeply value the rich legacy of both the banks which gives us a great platform to serve our clientele pan-India”.

She added that both lenders had a rich legacy that went back to the pre–Independence era. Indian bank with 113 years and Allahabad Bank with 155 years will create an institution with sound financial strength and nationwide connectivity consisting of 6,000-plus branches, 4,800-plus ATMs, 43,000-plus employees serving 120 million-plus customers and business mix of over Rs 8 trillion.

The complementary branch presence shall add to Indian Bank’s network in the northern, central and eastern states and the 120 million-plus customers of both the banks will benefit from a wider geographical reach, Chunduru said.

The integration offers the merged entity a host of revenue and cost synergies. The realisable revenue synergies arise from harmonised and wider product offering, optimisation of operations, increased opportunities for cross-selling, and technology spend optimisation, she added.

The increased lending capacity shall be utilised to serve Corporate and MSME clientele, Chunduru said. The large branch network and BC network of both lenders spread over the length and breadth of the country will ensure full coverage of priority sectors. Customers of both shall have access to a wider range of products and services.