Allahabad Bank into sunset after getting merged with Indian Bank

The 155-year-old Allahabad Bank

ceased to exist as it got merged with Indian Bank on Wednesday.

All branches of the Kolkata-headquartered lender started functioning as units of Chennai-based Indian Bank from April 1, 2020, an official said.

"We warmly welcome the employees and customers of Allahabad Bank to Indian Bank fold," Indian Bank MD and CEO Padmaja Chunduru said.

The integration offered the lender a host of revenue and cost synergies, she said.

The merger makes the Indian Bank stronger with a business of Rs 8 lakh crore, 6,000 plus branches, 4,800 ATMs and 43,000 employees serving 120 million customers, the official said.

Chunduru said a chief general manager will be designated in Kolkata, when total business of the bank will cross Rs 10 lakh crore.

 

Speaking about preparedness, Chunduru said harmonisation of products -- both on the loan and deposit sides -- were completed and the same products will be offered to all customers.

She also said all the deposit and loan products, including access to Indian Bank's emergency credit lines launched in the wake of COVID-19 crisis would be made available to the customers of Allahabad Bank.

The 113-year-old Indian bank and the Allahabad Bank will create a "lender with sound financial strength", the official said.

The amalgamation is part of the mega merger decision of the government.

Apart from Allahabad Bank, five other public sector banks (PSBs) namely Oriental Bank of Commerce, United Bank of India, Syndicate Bank, Andhra Bank and Corporation Bank lost their individual identity as they were merged into three bigger lenders with the objective to make them globally competitive.