Allahabad Bank

Last updated

Allahabad Bank
Company type Public
BSE: 532480
NSE: ALBK
IndustryBanking, Financial services
Founded24 April 1865;158 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$2.3 billion) (2019)
Decrease2.svg₹2,767.01 crore (US$350 million) (2019)
Decrease2.svg₹−8,333.96 crore (US$−1.0 billion)[ verification needed ] (2019)
Total assets Decrease2.svg₹248,575.77 crore (US$31 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$5.50) 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$1.3 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$100 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$222 million) by Bhushan Power & Steel (BPSL). [18]

The bank also detected another fraud of ₹6.8827 billion (US$86 million) by SEL Manufacturing Ltd., a Ludhiana-based textile company on 17 July 2019. [19] [20]

See also

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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.
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