Indian Bank has a strong presence in South whereas Allahabad Bank is present in northern and eastern India.
Chennai-based public sector lender Indian Bank, which has been proposed by the Centre as an anchor bank in the merger with Allahabad Bank, on Tuesday said that post-merger, its priority will be business growth and profitability, even as it will focus on employee management and welfare.
The bank said that with support from the government, RBI, investors, customers, employees and other stakeholders, it expects to fast-forward growth and emerge as one of the top five power-packed next generation public sector banks in India with a global focus.
Indian Bank believes that with the integration of the two banks, the focus on MSMEs and agricultural sector in the respective geographies, could also be leveraged better. The merger of Allahabad Bank into Indian Bank will create an amalgamated entity with a pan-India presence.
Indian Bank has a strong presence in South whereas Allahabad Bank is present in northern and eastern India. Padmaja Chunduru, MD & CEO, Indian Bank, said: “We are confident that given our commitment to deliver the best, we will be amongst the first to complete the integration and shall thrive on the mutual strengths, thereby emerging as a global bank of the future. Also, as a combined entity, we can leverage the balance sheet which will make the lending capacity more robust.”
The merger will also enable major scaling up of both the banks’ business, due to complementary networks as currently both use the same CBS platform (BaNCS), thereby enabling quick realisation of gains.
Post-merger, the combined entity will emerge as the seventh-largest PSB with a business of `8.08 lakhs crore, a nation-wide presence spread over 6,100 branches and around 43,000 employees.
“The technical and HR integration is likely to be seamless, so will be the cultural processes and systems. Post-merger, our top priority apart from business growth and profitability, will be employee management and welfare. Further, with this integration, focus on MSMEs and agricultural sector in the respective geographies can be leveraged better,” she said.