Allahabad Bank

Last updated

Allahabad Bank
Company type Public
BSE: 532480
NSE: ALBK
IndustryBanking, Financial services
Founded24 April 1865;159 years ago (1865-04-24)
Defunct1 April 2020;4 years ago (2020-04-01)
FateMerged with Indian Bank
Successor Indian Bank
Headquarters
Kolkata
,
India
Number of locations
3230 branches (2019)
Area served
India
Key people
Ch. S. S. Mallikarjuna Rao
(MD & CEO)
Services
RevenueDecrease2.svg₹18,564.50 crore (US$2.2 billion) (2019)
Decrease2.svg₹2,767.01 crore (US$330 million) (2019)
Decrease2.svg₹−8,333.96 crore (US$−1,000 million)[ verification needed ] (2019)
Total assets Decrease2.svg₹248,575.77 crore (US$30 billion) (2019)
Number of employees
23,210 (2019)
Footnotes /references
[1]

Allahabad Bank was an Indian nationalised bank with its headquarters in Kolkata, India. [2] Founded in Allahabad in 1865 and nationalized by the government of India in 1969, the bank provided banking and financial services for 155 years until it was merged with Indian Bank in 2020. It was the oldest still running joint stock bank in India until its merger.[ citation needed ]

Contents

As of 31 March 2018, Allahabad Bank had over 3245 branches across India. [3] The bank did a total business of ₹3.8 trillion during the FY 2017–18. [4] The bank's market capitalisation in June 2018 was US$573 million and ranked #1,882 on the Forbes Global 2000 list. [5]

19th century

A 1989 stamp dedicated to the 125th anniversary of Allahabad Bank Allahabad Bank 1989 stamp of India.jpg
A 1989 stamp dedicated to the 125th anniversary of Allahabad Bank

On 24 April 1865, a group of Europeans[ citation needed ] founded Allahabad Bank in Allahabad. [6] [7] By the end of the 19th century it had branches at Jhansi, Kanpur, Lucknow, Bareilly, Nainital, Calcutta, and Delhi.[ citation needed ]

20th century

In the early 20th century, with the start of Swadeshi movement, Allahabad Bank witnessed a spurt in deposits. In 1920, P & O Banking Corporation acquired Allahabad Bank with a bid price of ₹436 (US$5.20) per share. In 1923 the bank moved its head office and the registered office to Calcutta for reasons of both operational convenience and business opportunities. Then in 1927 Chartered Bank of India, Australia and China (Chartered Bank) acquired P&O Bank. However, Chartered Bank continued to operate Allahabad Bank as a separate entity.[ citation needed ]

Allahabad Bank opened a branch in Rangoon (Yangon). At some point, Chartered Bank amalgamated Allahabad Bank's branch in Rangoon with its own. [8] In 1963 the revolutionary government in Burma nationalized the Chartered Bank's operations there, which became People's Bank No. 2. [9]

On 19 July 1969, the Indian government nationalised Allahabad Bank, along with 13 other banks. [10]

In October 1989, Allahabad Bank acquired United Industrial Bank, a Calcutta-based bank that had been established in 1940 and that brought with it 145 branches. Two years later, Allahabad Bank established AllBank Finance Ltd, a wholly owned merchant banking subsidiary.[ citation needed ]

21st century

Its older logo, a monogram consisting of "A" and "B", was replaced by the current 'Triveni Sangam' logo circa 1997. [11]

The government's ownership of Allahabad Bank shrank in October 2002 after the bank engaged in an initial public offering (IPO) of ₹100 million (US$1.2 million) of shares, each with a face value ₹10. The IPO reduced the Government's shareholding to 71.16%. Then in April 2005 the bank conducted a second public offering of ₹100 million shares, each with a face value ₹10 and selling at a premium of ₹72. This offering reduced the Government's ownership to 55.23%.[ citation needed ]

In June 2006, the bank opened its first office outside India when it opened a representative office in Shenzhen, Mainland China. [12] In February 2007, Allahabad Bank opened its first overseas branch, in Hong Kong. In March, the bank's business crossed the ₹10 million mark.[ citation needed ]

On 30 August 2019, Finance Minister Nirmala Sitharaman announced that Allahabad Bank would merge with Indian Bank. The merger would create the seventh largest public sector bank in the country with assets of ₹8.08 trillion (US$97 billion). [13] [14] The Union Cabinet approved the merger on 4 March 2020. [15] Indian Bank assumed control of Allahabad Bank on 1 April 2020. [16]

Listings and shareholding

Allahabad Bank's equity shares were listed on Bombay Stock Exchange and the National Stock Exchange of India.

Shareholders (as on 31 March 2014) [17] Shareholding
Promoter Group (Government of India)64.80%
Indian FIs/MFs16.60%
Foreign Institutional Investors (FII)03.20%
Resident Indians08.80%
Others06.60%
Total100.0%
Allahabad Bank head office in Kolkata Albho.jpg
Allahabad Bank head office in Kolkata

Employees

As of 31 March 2013, the bank had 22,557 employees, out of which 3,293 were women (15%). [4] Out of the total employees, 51% were officers, 30% were clerks and the remaining 19% were subordinate staff. [4] The bank recruited 1,950 employees (1,421 Officers, 390 Clerks and 139 subordinate staff) during the same financial year. [4] The company incurred ₹20 billion on employee benefit expenses during the same financial year. [4] During the FY 2013–14, the business per employee was ₹13.50 million and it earned a net profit of ₹0.477 million per employee. [4]

The bank was operating in the following states/UTs.[ citation needed ]

Scams

On 13 July 2019, Allahabad Bank disclosed that it detected a fraud, worth ₹17.7482 billion (US$213 million) by Bhushan Power & Steel (BPSL). [18]

The bank also detected another fraud of ₹6.8827 billion (US$82 million) by SEL Manufacturing Ltd., a Ludhiana-based textile company on 17 July 2019. [19] [20]

See also

Related Research Articles

<span class="mw-page-title-main">State Bank of India</span> Indian public sector bank

State Bank of India (SBI) is an Indian multinational public sector bank and financial services statutory body headquartered in Mumbai, Maharashtra. It is the 48th largest bank in the world by total assets and ranked 178th in the Fortune Global 500 list of the world's biggest corporations of 2024, being the only Indian bank on the list. It is a public sector bank and the largest bank in India with a 23% market share by assets and a 25% share of the total loan and deposits market. It is also the tenth largest employer in India with nearly 250,000 employees. In 2024, the company’s seat in Forbes Global 2000 was 55.

<span class="mw-page-title-main">Bank of Baroda</span> Indian public sector bank

Bank of Baroda is an Indian government Public sector bank headquartered in Vadodara, Gujarat. It is the third largest public sector bank in India after State Bank of India. Based on 2023 data, it is ranked 586 on the Forbes Global 2000 list.

<span class="mw-page-title-main">Punjab National Bank</span> Indian public sector bank

Punjab National Bank is an Indian government public sector bank based in New Delhi. It was founded in May 1894 and is the second-largest public sector bank in India in terms of its business volumes, with over 180 million customers, 12,248 branches, and 13,000+ ATMs.

<span class="mw-page-title-main">Indian Bank</span> Indian nationalised bank

Indian Bank is an Indian public sector bank, established in 1907 and headquartered in Chennai. It serves over 100 million customers with 40,187 employees, 5,847 branches with 4,937 ATMs and Cash deposit machines. Total business of the bank has touched ₹1,221,773 crore (US$150 billion) as of 31 March 2024.

<span class="mw-page-title-main">ICICI Bank</span> Indian private sector bank

ICICI Bank Limited is an Indian multinational bank and financial services company headquartered in Mumbai with a registered office in Vadodara. It offers a wide range of banking and financial services for corporate and retail customers through various delivery channels and specialized subsidiaries in the areas of investment banking, life, non-life insurance, venture capital and asset management.

<span class="mw-page-title-main">UCO Bank</span> Indian public sector bank

UCO Bank, formerly United Commercial Bank, is an Indian public sector bank, and financial services statutory body headquartered in Kolkata. UCO Bank is the 10th largest public sector bank in India by total asset and ranked 1948 in Forbes Global 2000 list of year 2018 & ranked 80 on the Fortune India 500 list in 2020. During FY 2023–24, its total business was ₹4.50 lakh crore. The market capitalisation of bank is ₹71,078 crore (2024).

<span class="mw-page-title-main">Banking in India</span> Brief account of Indian banking

Modern banking in India originated in the mid of 18th century. Among the first banks were the Bank of Hindustan, which was established in 1770 and liquidated in 1829–32; and the General Bank of India, established in 1786 but failed in 1791.

Union Bank of India, commonly referred to as Union Bank, is an Indian public sector bank headquartered in Mumbai. It has 153+ million customers and a total business of Rs.21,36,405 crores as of June 30 2024. After the merging with Corporation Bank and Andhra Bank, which came into effect on 1 April 2020, the merged entity became one of the largest PSU banks in terms of branch network with around 8700+ branches. Four of these are located overseas in Hong Kong, Dubai, Antwerp, and Sydney. UBI also has representative offices at Shanghai, Beijing and Abu Dhabi. UBI operates in the United Kingdom through its wholly owned subsidiary, Union Bank of India (UK). The bank has a network of 8500+ domestic branches, 10000+ ATMs, and 18000+ Business Correspondent Points serving over 153 million customers with 76,700+ employees.

<span class="mw-page-title-main">United Bank of India</span> Nationalized bank in India (now defunct)

United Bank of India (UBI) was an Indian nationalized bank which provided financial and banking services. Established in 1950 and headquartered in Kolkata, the bank was nationalised by the government of India in 1969 becoming one of public sector banks in the country. The bank has been amalgamated with Punjab National Bank, along with Oriental Bank of Commerce, with effective from 1 April 2020.

<span class="mw-page-title-main">Syndicate Bank</span> Public sector bank in India(now defunct)

Syndicate Bank was one of the oldest major commercial banks in India. It was founded by Upendra Ananth Pai, T. M. A. Pai and Vaman Srinivas Kudva. At the time of its establishment, the bank was known as Canara Industrial and Banking Syndicate Limited. The bank, along with 13 major commercial banks of India, was nationalised on 19 July 1969, by the government of India. It was headquartered in the university town of Manipal, India. On 1 April 2020, the bank was merged into Canara Bank.

Canara Bank is an Indian public sector bank based in Bangalore, India. Established in 1906 at Mangalore by Ammembal Subba Rao Pai. The bank was nationalized in 1969. Canara Bank also has offices in London, Dubai and New York.

The IDBI Bank Limited is a Scheduled Commercial Bank under the ownership of Life Insurance Corporation of India (LIC) and Government of India. It was established by Government of India as a wholly owned subsidiary of Reserve Bank of India in 1964 as Industrial Development Bank of India, a Development Finance Institution, which provided financial services to industrial sector. In 2005, the institution was merged with its subsidiary commercial division, IDBI Bank, and was categorised as "Other Development Finance Institution" category. Later in March 2019, Government of India asked LIC to infuse capital in the bank due to high NPA and capital adequacy issues and also asked LIC to manage the bank to meet the regulatory norms. Consequent upon LIC acquiring 51% of the total paid-up equity share capital, the bank was categorised as a 'Private Sector Bank' for regulatory purposes by Reserve Bank of India with effect from 21 January 2019. IDBI was put under Prompt Corrective Action of the Reserve Bank of India and on 10 March 2021 IDBI came out of the same. At present direct and indirect shareholding of Government of India in IDBI Bank is approximately 95%, which Government of India (GoI) vide its communication F.No. 8/2/2019-BO-II dated 17 December 2019, has clarified and directed all Central/State Government departments to consider IDBI Bank for allocation of Government Business. Many national institutes find their roots in IDBI like SIDBI, EXIM, National Stock Exchange of India, SEBI, National Securities Depository Limited. Presently, IDBI Bank is one of the largest Commercial Banks in India.

<span class="mw-page-title-main">Andhra Bank</span> Public bank in India

Andhra Bank was a medium-sized public sector bank (PSB) of India, with a network of 2885 branches, 4 extension counters, 38 satellite offices and 3798 automated teller machines (ATMs) as of 31 March 2019. During 2011–12, the bank entered the states of Tripura and Himachal Pradesh. It operated in 25 states and three union territories. It had its headquarters in Hyderabad, Telangana, India. Along with Corporation Bank, Andhra Bank was merged with Union Bank of India in April 2020.

HDFC Bank Limited is an Indian banking and financial services company, headquartered in Mumbai. It is India's largest private sector bank by assets and the world's tenth-largest bank by market capitalization as of May 2024.

Axis Bank Limited, formerly known as UTI Bank (1993–2007), is an Indian multinational banking and financial services company headquartered in Mumbai, Maharashtra. It is India's third largest private sector bank by assets and fourth largest by market capitalisation. It sells financial services to large and mid-size companies, SMEs and retail businesses.

<span class="mw-page-title-main">Jammu & Kashmir Bank</span> Indian private sector bank

Jammu & Kashmir Bank Limited is an Indian public sector bank headquartered in Srinagar, Jammu and Kashmir. J&K Bank was incorporated on 1 October 1938, by the then ruler of the princely state of Jammu and Kashmir Maharaja Hari Singh with an initial paid up capital of ₹5.00 Lakh. The bank registered a total business turnover of over ₹1750 billion as of 31 March 2021.

Oriental Bank of Commerce (OBC) was an Indian public sector bank headquartered at Gurgaon, Haryana. It had 2390 branches and 2625 ATMs across India. In April 2020, the bank along with United Bank of India was merged with Punjab National Bank, making the latter the second-largest public sector bank in India.

Public Sector Undertakings (Banks) are a major type of government-owned banks in India, where a majority stake (i.e., more than 50%) is held by the Ministry of Finance (India) of the Government of India or State Ministry of Finance of various State Governments of India. The shares of these government-owned-banks are listed on stock exchanges. Their main objective is social welfare.

Lakshmi Vilas Bank was an Indian private sector bank established in 1926 in Karur, Tamil Nadu. As of November 2020, the bank had 566 branches in 19 states and 1 union territory. On 27 November 2020, the bank was merged into the Indian subsidiary of DBS Bank.

The Punjab National Bank Fraud Case relates to fraudulent letter of undertaking worth ₹12,000 crore issued by the Punjab National Bank at its Brady House branch in Fort, Mumbai; making Punjab National Bank liable for the amount. The fraud was allegedly organized by jeweller and designer Nirav Modi. Nirav, his wife Ami Modi, brother Nishal Modi and uncle Mehul Choksi, all partners of the firms, M/s Diamond R US, M/s Solar Exports and M/s Stellar Diamonds; along with PNB officials and employees, and directors of Nirav Modi and Mehul Choksi's firms have all been named in a charge sheet by the CBI. Nirav Modi and his family absconded in early 2018, days before the news of the scam broke in India.

References

  1. ↑ "Balance Sheet 31.03.2019" Archived 12 June 2018 at the Wayback Machine (PDF)
  2. ↑ "Allahabad Bank head office IFSC Code, MICR Code, Branch Code and Full Address". The Financial Express. Archived from the original on 19 November 2020. Retrieved 19 November 2020.
  3. ↑ "Welcome to the website of Allahabad Bank" (PDF). Archived from the original (PDF) on 12 June 2018. Retrieved 8 June 2018.
  4. 1 2 3 4 5 6 "Annual Report 2017-18" (PDF). Allahabad Bank. Archived from the original (PDF) on 12 June 2018. Retrieved 11 May 2018.
  5. ↑ "Allahabad Bank on the Forbes Global 2000 List". Forbes. 31 May 2016. Retrieved 11 May 2018.
  6. ↑ Rajesh, R.; Sivagnanasithi, T (2009). Banking Theory: Law & Practice. Tata McGraw-Hill Education. p. 8. ISBN   9780070091238 . Retrieved 4 November 2014.
  7. ↑ Narasimhan, T. E. (29 April 2020). "Indian Bank sees new opportunities with larger footprint after merger". Business Standard India . Retrieved 30 October 2021.
  8. ↑ Turnell, Sean (2009) Fiery Dragons: Banks, Moneylenders and Microfinnance in Burma. NAIS Press. p. 110. ISBN   9788776940409.
  9. ↑ Standard Chartered Bank: A Story Brought Up To Date, Standard Chartered Bank (1980) p. 45.
  10. ↑ "Reserve Bank of India - Chronology of Events". www.rbi.org.in. Retrieved 7 April 2022.
  11. ↑ "The history of Allahabad Bank". The Business Quiz - TBQ. 6 November 2014. Retrieved 8 November 2019.
  12. ↑ "Allahabad Bank opens first overseas office in China". The Economic Times. Retrieved 7 April 2022.
  13. ↑ "Bank Merger News: Government unveils mega bank mergers to revive growth from 5-year low". The Times of India . 30 August 2019. Archived from the original on 30 August 2019. Retrieved 30 August 2019.
  14. ↑ "10 public sector banks to be merged into four". LiveMint . 30 August 2019. Archived from the original on 30 August 2019. Retrieved 30 August 2019.
  15. ↑ Ghosh, Shayan (5 March 2020). "Three banks announce merger ratios". Livemint. Retrieved 6 March 2020.
  16. ↑ "Indian Bank to merge 325 branches". The Hindu . 29 September 2020. ISSN   0971-751X . Retrieved 30 October 2021.
  17. ↑ "Shareholding pattern". Allahabad Bank. Archived from the original on 17 March 2015. Retrieved 26 February 2014.
  18. ↑ "Allahabad Bank defrauded of Rs 17,775 crore by Bhushan Power & Steel". India Today. 13 July 2019.
  19. ↑ "Allahabad Bank reports Rs 688.27 crore fraud". India Today. 18 July 2019.
  20. ↑ "Allahabad Bank reports about ₹688 crore fraud by SEL Manufacturing". Livemint. 18 July 2019.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.