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Allahabad Bank

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Allahabad Bank
Company typeNationalized bank
IndustryBanking, Financial services
FoundedApril 24, 1865; 161 years ago (1865-04-24) in Allahabad, India
DefunctApril 1, 2020 (2020-04-01)
FateMerged with Indian Bank
Headquarters
Kolkata
,
India
Area served
India
ProductsBanking, Financial services
OwnerGovernment of India (until merger)
Number of employees
22,557 (2013)

Allahabad Bank was a nationalized banking institution in India, with its headquarters situated in Kolkata. Established in Allahabad in 1865 and brought under government ownership in 1969, the bank operated independently for 155 years before its integration with Indian Bank in 2020. Prior to this merger, it held the distinction of being the oldest joint stock bank in the country.

By March 2018, Allahabad Bank operated more than 3,245 branches across India and managed a total business volume of 3.8 trillion during the fiscal year 2017–18. Its market capitalization reached US$573 million as of June 2018, placing it at number 1,882 on the Forbes Global 2000 ranking.

19th century

Allahabad Bank was established on 24 April 1865 in Allahabad by a consortium of European entrepreneurs.[1][2] By the close of the century, it had established branches in locations including Jhansi, Kanpur, Lucknow, Bareilly, Nainital, Calcutta, and Delhi.

20th century

During the early decades of the twentieth century and amidst the Swadeshi movement, deposits at Allahabad Bank experienced growth. In 1920, ownership shifted when P & O Banking Corporation acquired the bank at a specified price per share. To leverage better operational opportunities, the bank moved its head office and registered office to Calcutta in 1923. Later, in 1927, the Chartered Bank of India, Australia and China took over P&O Bank but continued to operate Allahabad Bank as an independent entity.

The bank extended its international presence by opening a branch in Rangoon (Yangon), which was eventually consolidated with Chartered Bank’s local operations.[3] However, following nationalization by Burma’s revolutionary government in 1963, Chartered Bank’s activities there were transformed into People's Bank No. 2.[4]

On 19 July 1969, Allahabad Bank was among fourteen banks nationalized by the Indian government.[5]

In October 1989, it expanded its footprint by acquiring United Industrial Bank, a Calcutta-based bank founded in 1940, thereby adding 145 branches to its network. The bank also launched AllBank Finance Ltd in 1991 as its fully owned merchant banking subsidiary.

21st century

Around 1997, Allahabad Bank replaced its traditional "A" and "B" monogram emblem with a new 'Triveni Sangam' logo.

The government’s shareholding declined following two public offerings: an initial public offering in October 2002 involving the sale of 100 million shares (face value ₹10), which reduced government ownership to 71.16%, followed by a second offering in April 2005 of another 100 million shares at a premium of ₹72 per share that further decreased the stake to 55.23%.

In June 2006, Allahabad Bank broadened its international reach by inaugurating a representative office in Shenzhen, China, followed by establishing its first overseas branch in Hong Kong in February 2007. By March of that year, the bank's total business had surpassed ₹10 million.

On 30 August 2019, Finance Minister Nirmala Sitharaman announced plans to merge Allahabad Bank with Indian Bank, forming India’s seventh largest public sector bank with assets totaling ₹8.08 trillion. The Union Cabinet granted approval for this merger on 4 March 2020, with Indian Bank officially taking over operations on 1 April 2020.

Listings and Shareholding

The equity shares of Allahabad Bank were traded on both the Bombay Stock Exchange and the National Stock Exchange of India.

Shareholders (as of 31 March 2014) Percentage Holding
Promoter Group (Government of India) 64.80%
Indian Financial Institutions/Mutual Funds 16.60%
Foreign Institutional Investors (FII) 3.20%
Resident Indian Individuals 8.80%
Others 6.60%
Total 100.0%

Workforce

By 31 March 2013, the bank's workforce numbered 22,557 employees, including 3,293 women, representing 15% of the total staff. The composition consisted of 51% officers, 30% clerical staff, and 19% subordinate personnel. Within that fiscal year, the bank onboarded 1,950 new hires: 1,421 officers, 390 clerks, and 139 subordinate employees. Employee-related expenses reached 20 billion. For the fiscal year 2013–14, the bank recorded a business volume of 13.50 million per employee and a net profit averaging 0.477 million per employee.

The institution maintained operations across numerous Indian states and union territories such as Andhra Pradesh, Bihar, Delhi, Gujarat, Karnataka, Maharashtra, Punjab, Tamil Nadu, Uttar Pradesh, West Bengal, among others.

Fraud Incidents

On 13 July 2019, Allahabad Bank revealed a fraudulent transaction involving Bhushan Power & Steel (BPSL) amounting to . Shortly thereafter, on 17 July 2019, another scam was uncovered concerning SEL Manufacturing Ltd., a textile firm based in Ludhiana, involving .

See also

External links

  1. ↑ Lua error in Module:Citation/CS1/Configuration at line 2123: attempt to index field '?' (a nil value).
  2. ↑ Lua error in Module:Citation/CS1/Configuration at line 2123: attempt to index field '?' (a nil value).
  3. ↑ Turnell, Sean (2009) Fiery Dragons: Banks, Moneylenders and Microfinnance in Burma. NAIS Press. p. 110. ISBN 9788776940409.
  4. ↑ Standard Chartered Bank: A Story Brought Up To Date, Standard Chartered Bank (1980) p. 45.
  5. ↑ Lua error in Module:Citation/CS1/Configuration at line 2123: attempt to index field '?' (a nil value).
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