Andhra Bank
| Company type | Public sector bank |
|---|---|
| Industry | Banking, Financial services |
| Founded | November 20, 1923 in Machilipatnam, India |
| Founder | Bhogaraju Pattabhi Sitaramayya |
| Defunct | April 1, 2020 |
| Fate | Merged with Union Bank of India |
| Headquarters | Hyderabad , India |
Area served | India, international offices in Dubai and Jersey City (representative offices) |
| Products | Banking, Financial services, Internet banking, Debit cards |
| Owner | Government of India (90.85% as of March 2019), Life Insurance Corporation (7.80% as of March 2019) |
Andhra Bank was a mid-sized public sector bank (PSB) in India, operating 2,885 branches, 4 extension counters, 38 satellite offices, and 3,798 automated teller machines (ATMs) as of 31 March 2019. During the 2011–12 period, it expanded its footprint into Tripura and Himachal Pradesh, establishing operations across 25 states and three union territories. The bank was headquartered in Hyderabad, Telangana, and merged with Union Bank of India in April 2020, along with Corporation Bank.
As of 31 March 2019, the government of India held a majority stake of 90.85% in Andhra Bank’s equity, while the state-owned Life Insurance Corporation owned 7.80%. For the fiscal year 2015–16, the bank managed a total business volume of and recorded a net profit amounting to .
History
Established in 1923 by Bhogaraju Pattabhi Sitaramayya at Machilipatnam, then part of the Madras Presidency (now within Andhra Pradesh), Andhra Bank received financial support from Raja Yarlagadda Sivarama Prasad. It was officially registered on 20 November 1923 and began operations on 28 November with a paid-up capital of and an authorised capital of . Post the linguistic reorganization in 1956, its registered office was relocated to Hyderabad. The bank became fully government-owned following its nationalisation in April 1980 during the second wave of bank nationalisations. In 1964, Andhra Bank strengthened its regional presence by merging with Bharat Lakshmi Bank.Cite error: The opening <ref> tag is malformed or has a bad name
Andhra Bank held a 30% stake as a joint venture partner in IndiaFirst Life Insurance Company, alongside Bank of Baroda with 44%, and Legal & General holding the remaining 26%. Founded in November 2009 and based in Mumbai, IndiaFirst Life achieved a turnover exceeding within just four and a half months and became the first life insurer recommended for ISO certification within seven months.
On 30 August 2019, Finance Minister Nirmala Sitharaman announced the merger plan involving Andhra Bank and Corporation Bank into Union Bank of India. This strategic consolidation elevated Union Bank to the position of the fifth largest public sector bank in India, with assets totaling and an extensive network of 9,609 branches. Andhra Bank’s board gave its consent to the merger on 13 September 2019,Cite error: The opening <ref> tag is malformed or has a bad name followed by final approval from the Union Cabinet on 4 March 2020. The integration process was completed on 1 April 2020.Cite error: The opening <ref> tag is malformed or has a bad name
Products and services
Andhra Bank introduced its Internet Banking Facility (AB INFI-net) accessible to customers across all cluster-linked branches. Debit cardholders and internet banking users could book rail tickets through a dedicated gateway on the IRCTC website. The bank’s corporate site is available in English, Hindi, and Telugu, showcasing its brand identity and providing information. In recognition of its extensive IT deployment in semi-urban and rural regions, Andhra Bank received the 'BEST BANK AWARD' from IDRBT, Hyderabad in 2006. Additionally, it was named Joint Runner-up for the Best Payments Initiative by IBA and TFCI for its efforts in promoting ATM channels.
International expansion
The bank established representative offices abroad: one in Dubai (May 2006) and another in Jersey City, New Jersey (June 2009).
In 2010, Malaysia issued a commercial banking license to India International Bank (Malaysia), a joint venture headquartered in Kuala Lumpur and owned by Bank of Baroda (40%), Indian Overseas Bank (35%), and Andhra Bank (25%).
Andhra Bank also collaborated with Bank of Baroda and Legal & General Group (UK) to form IndiaFirst Life Insurance Company. Incorporated in June 2008, this joint venture commenced operations after obtaining regulatory approvals.
Community engagement
Andhra Bank collaborated with the Andhra Pradesh State Government, NABARD, Canara Bank, Indian Bank, IOB, and SBH to support the Andhra Pradesh Bankers Institute of Entrepreneurship Development, delivering vocational training to unemployed youth across Andhra Pradesh.
The bank took responsibility for Gundugolanu village in West Godavari District—known as the birthplace of its founder, Dr. Bhogaraju Pattabhi Sitaramayya—and committed a budget of INR 55.5 million aimed at improving healthcare, sanitation, education, and community welfare.
See also
External links
- Defunct banks of India
- Banks established in 1923
- Banks disestablished in 2020
- Companies nationalised by the Government of India
- Companies based in Hyderabad, India
- Indian companies established in 1923
- Indian companies disestablished in 2020
- Companies formerly listed on the National Stock Exchange of India
- Companies formerly listed on the Bombay Stock Exchange