Indian Bank gets board nod to raise Rs 5,000 cr, merge with Allahabad Bank

Indian Bank to be anchor in the merger, which will create country's seventh largest lender

Government-owned Indian Bank on Wednesday got a nod from its board to raise Rs 5,000-crore capital from the government through preferential allotment. The board also approved the proposed merger of Allahabad Bank with Indian Bank.

Padmaja Chunduru, managing director and chief executive officer of the bank, said it was earlier planning to raise Rs 2,000 crore, but the plan was reviewed in the light of the proposed merger. “The money will be raised after the merger. It will be used for growth plans.”

The government has suggested Rs 2,500 crore will be allotted to Indian Bank, taking into account the requirements