Bank mergers: Allahabad Bank branches are now Indian Bank branches

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.

Chunduru said HR policies and employee benefits had been harmonised and that all employees shall gain from this integration, both in terms of benefits and investments in their training for talent and skill building.

Commenting on the strategic operating model the bank has envisaged, she said that the focus would be on making the branches the business leads and Central Processing Centres would be the support structures.