Post merger, Allahabad and Indian Bank to have 10,000 branches in 2 years

At the end of December 2019, the total business of Allahabad Bank was close to Rs 3.94 trillion, while that of Indian Bank was close to Rs 4.5 trillion

The merged entity of Allahabad Bank and Indian Bank will have around 10,000 branches, with combined business of Rs 10 trillion in the next two to three years, according to a top official of Allahabad Bank.

 

At the end of December 2019, the total business of Allahabad Bank was around Rs 3.9 trillion, while that of Indian Bank was close to Rs 4.5 trillion. Thus, the combined business stood at about Rs 8.4 trillion.

 

Meanwhile, the bank is awaiting government notification on the merger, and is prepared to meet April 1 deadline, said the official. 

 

“It is basically a horizontal merger. It does not take a lot of time. Effective date is most likely be April 1. But it will at least take 12-18 months for us for complete integration of all the processes. Complete integration of core banking system (CBS) will not happen from Day One of the merger,” he said.

 

In case of the merger, none of the branches will be closed as the two banks are present in distinct geographies. “In our case, the greatest advantage is none of the branch is going to be closed. Only those branches that are adjacent to each other will be combined,” the official said.

 

Under the mega merger plan by Union Finance Minister Nirmala Sitharaman, 10 public sector banks would be consolidated into four. Punjab National Bank, Oriental Bank of Commerce, and United Bank of India will combine to form the nation’s second-largest lender; Canara Bank and Syndicate Bank will merge; Union Bank of India will amalgamate with Andhra Bank and Corporation Bank; and Indian Bank will merge with Allahabad Bank. The consolidation exercise will bring down the number of nationalised public sector banks to 12 from 27 in 2017.