Allahabad Bank seeks RBI nod to open 4 overseas branches

Allahabad Bank today said it has approached the Reserve Bank of India (RBI) to open four overseas branches.

"We have approached RBI to open a second branch in Hong Kong and branches in Dhaka, Singapore and Shanghai," chairman and managing director J P Dua told shareholders at the ninth AGM here.

Once the RBI nod was granted then the bank would approach the respective countries' regulators, he said, adding, to fund Hong Kong operations it would raise $500 million as medium-term note.

Dua said going forward, the bank would maintain net interest margin despite competitive pressures and rising deposit rates.

About the bank's strategy, Dua said short-term loans would be shed and long-term assets would be build.

The bank would give thrust to mid-cap companies and reduction of bulk deposits would help in maintaining a healthy CASA.

Allahabad Bank would improve delivery channels through ATMs and internet banking, he added.