Indian Bank has obtained Board approval to raise Rs 5,000 crore from the centre through preferential allotment. The bank's board met Wednesday in New Delhi and, in addition to capital-raising, gave its nod for the proposed merger with Allahabad Bank.
"The proposed merger will create a robust entity with a Pan-India presence. Indian Bank, the anchor bank in this merger, enjoys a strong presence in Southern India while Allahabad Bank has cemented its position in the northern and eastern parts of the country," said Padmaja Chunduru, MD & CEO, Indian Bank.
"Further, the merger will lead to the emergence of a strong globally focused bank with a cumulative experience of over 266 years (Indian Bank is in existence for 112 years whereas Allahabad Bank is a 154-year-old Bank)," she added.
"The combined bank will provide more growth and learning opportunities to the employees and will be a win-win situation, given the different strengths of the dedicated workforce. Going forward, Indian Bank aims to emerge amongst the leading banks in the banking industry, given the efficiency of its operations and excellent customer service track-record through multiple platforms – both offline and digital," she had earlier said.
"Post-merger it will be the seventh largest, going by the numbers in March 2019. We are expecting the merger to take place by March 31, 2020. In two years from the merger, we want to make it the fifth largest," she said.
No comments:
Post a Comment