Allahabad Bank

2021-09-01T05:44:33Z

2409:4043:2C0A:CC3C:940B:2926:8A2F:CBCE: Undid revision 1041735918 by 2409:4043:2C0A:CC3C:940B:2926:8A2F:CBCE (talk)

{{Short description|India national bank}}
{{Use dmy dates|date=December 2018}}
{{Use Indian English|date=January 2014}}{{Infobox company
| name = Allahabad Bank
| logo = Allahabad Bank Logo.svg
| logo_caption = ''A Tradition of Trust''
| type = [[Subsidiary]] of [[Indian Bank]]
| traded_as = {{BSE|532814}}<br/>{{NSE|INDIANB}}
| founded = {{start date and age|1865|4|24|df=y}} in [[Allahabad]], [[North-Western Provinces]], [[British India]]
| industry = Banking, [[Financial services]]
| location_city = [[Kolkata]], [[West Bengal]]
| location_country = India
| fate =
| successor = [[Indian Bank]]
| area_served = India
| locations = 3230 branches
| key_people = CH. S. S. Mallikarjuna Rao <br> {{small|([[Managing Director|MD]] & [[Chief Executive Officer|CEO]])}}
| services = {{ubl|[[Finance and insurance]]|[[Retail banking|Consumer banking]]|[[Commercial bank|Corporate banking]]}}
| revenue = {{decrease}} {{INRConvert|18564.50|c}}(2019)<ref name="Balance Sheet 2019">[https://www.allahabadbank.in/Internet_Site/download/alb-110518.pdf "Balance Sheet 31.03.2019"].</ref>
| operating_income = {{decrease}}{{INRConvert|2767.01|c}}(2019)<ref name="Balance Sheet 2019"/>
| net_income = {{decrease}}{{INRConvert|-8333.96|c}}(2019)<ref name="Balance Sheet 2019"/>
| assets = {{decrease}}{{INRConvert|248575.77|c}}(2019)<ref name="Balance Sheet 2019"/>
| equity =
| owner = [[Indian Bank]] (100%)
| num_employees = 23,210 (March 2019) <ref name="Balance Sheet 2019"/>
| ratio =
| homepage = {{URL|allahabadbank.in}}
}}

'''Allahabad Bank''' was founded in [[Allahabad]] in 1865,<ref>{{cite book |first1=R. |last1=Rajesh |first2=T|last2=Sivagnanasithi|title=Banking Theory: Law & Practice |url=https://books.google.com/books?id=PHCQsprFST4C&q=allahabad+bank+established&pg=PA8 |publisher=Tata McGraw-Hill Education |page=8 |isbn= 9780070091238|access-date=4 November 2014 |year=2009 }}</ref> and is a fully owned [[subsidiary]] of [[Indian Bank]] with its headquarters in [[Kolkata]], India.<ref>{{Cite web|title=Allahabad Bank head office IFSC Code, MICR Code, Branch Code and Full Address|url=https://www.financialexpress.com/ifsc-code/allahabad-bank/head-office-branch-in-kolkata-alla0210032/|url-status=live|archive-url=https://web.archive.org/web/20201119191057/https://www.financialexpress.com/ifsc-code/allahabad-bank/head-office-branch-in-kolkata-alla0210032/|archive-date=2020-11-19|access-date=2020-11-19|website=The Financial Express|language=en-US}}</ref> India. On 24 April 2014, the bank entered into its 150th year of establishment. Until its merger with the [[Indian Bank]] in 2020, ''Allahabad'' was the oldest joint stock bank in India.

As of 31 March 2018, Allahabad Bank had over 3245 branches across India.<ref name="ar">{{cite web|url=https://www.allahabadbank.in/Internet_Site/download/alb-110518.pdf|title=Welcome to the website of Allahabad Bank}}</ref> The bank did a total business of INR 3.8 trillion during the FY 2017–18.<ref name=ABAR2012-13>{{cite web |url=https://www.allahabadbank.in/Internet_Site/download/alb-110518.pdf |title=Annual Report 2017-18 |publisher=Allahabad Bank |access-date=11 May 2018}}</ref>

The bank's market capitalisation in June 2018 was US$573 million and it ranked #1,882 on the [[Forbes Global 2000]] list.<ref>{{cite web|url=https://www.forbes.com/companies/allahabad-bank/|title=Allahabad Bank on the Forbes Global 2000 List|date=31 May 2016|work=Forbes|access-date=11 May 2018}}</ref> On 30 August 2019, the Finance Minister [[Nirmala Sitharaman]] announced merger of Allahabad Bank with [[Indian Bank]].

==19th century==
[[File:Allahabad Bank 1989 stamp of India.jpg|thumb|left|A 1989 stamp dedicated to the 125th anniversary of Allahabad Bank]]
On 24 April 1865, a group of Europeans founded Allahabad Bank in Allahabad. By the end of the 19th century it had branches at [[Jhansi]], [[Kanpur]], [[Lucknow]], [[Bareilly]], [[Nainital]], [[Kolkata|Calcutta]], and [[Delhi]].

==20th century==
In the early 20th century, with the start of [[Swadeshi movement]], Allahabad Bank witnessed a spurt in deposits. In 1920, [[P&O Bank|P & O Banking Corporation]] acquired Allahabad Bank with a bid price of {{INRConvert|436}} 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.

Allahabad Bank opened a branch in Rangoon ([[Yangon]]). At some point, Chartered Bank amalgamated Allahabad Bank's branch in Rangoon with its own.<ref>Turnell, Sean (2009) ''Fiery Dragons: Banks, Moneylenders and Microfinnance in Burma''. NAIS Press. p. 110. {{ISBN|9788776940409}}.</ref> In 1963 the [[Politics of Burma#Military socialist era|revolutionary government]] in Burma nationalized the Chartered Bank's operations there, which became People's Bank No. 2.<ref>Standard Chartered Bank: A Story Brought Up To Date, Standard Chartered Bank (1980) p. 45.</ref>

On 19 July 1969, the Indian Government nationalised Allahabad Bank, along with 13 other banks.

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 bank]]ing subsidiary.

==21st century==
Its older logo, a monogram consisting of "A" and "B", was replaced by the current 'Triveni sangam' logo circa 1997.<ref>{{Cite web|url=https://www.thebusinessquiz.com/2014/11/06/indian-banks-the-story-of-allahabad-bank/|title=The history of Allahabad Bank|date=2014-11-06|website=The Business Quiz - TBQ|language=en|access-date=2019-11-08}}</ref>

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

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

On 30 August 2019, [[Minister of Finance (India)|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 {{INRConvert|8.08|lc}}.<ref>{{cite web |url=https://timesofindia.indiatimes.com/business/india-business/government-unveils-mega-bank-mergers-to-revive-growth-from-5-year-low/articleshow/70911359.cms |access-date=30 August 2019|title=Bank Merger News: Government unveils mega bank mergers to revive growth from 5-year low | India Business News - Times of India}}</ref><ref>{{cite web |author=Staff Writer |title=10 public sector banks to be merged into four |url=https://www.livemint.com/news/india/pnb-obc-and-united-bank-to-be-merged-nirmala-sitharaman-1567158678718.html |website=Mint |access-date=30 August 2019 |language=en |date=30 August 2019}}</ref> The Union Cabinet approved the merger on 4 March 2020. Indian Bank assumed control of Allahabad Bank on 1 April 2020.<ref>{{cite web |last1=Ghosh |first1=Shayan |title=Three banks announce merger ratios |url=https://www.livemint.com/market/stock-market-news/two-anchor-banks-pnb-union-bank-of-india-disclose-merger-ratios-11583413469591.html |website=Livemint |access-date=6 March 2020 |language=en |date=5 March 2020}}</ref>

==Listings and shareholding==
Allahabad Bank's equity shares are listed on [[Bombay Stock Exchange]] and the [[National Stock Exchange of India]].

{| class="wikitable"
|-
! Shareholders (as on 31 March 2014)<ref name=Shareholding>{{cite web |url=https://www.allahabadbank.in/english/shareholding.aspx? |title=Shareholding pattern |publisher=Allahabad Bank |access-date=26 February 2014}}</ref> !! Shareholding
|-
| Promoter Group ([[Government of India]])||64.80%
|-
| Indian FIs/MFs||16.60%
|-
| Foreign Institutional Investors (FII)||03.20%
|-
| Resident Indians||08.80%
|-
| Others||06.60%
|-
| Total||100.0%
|}
[[File:Albho.jpg|thumb|Allahabad Bank Head Office at Kolkata]]

==Employees==
As on 31 March 2013, the bank had 22,557 employees, out of which 3,293 were women (15%).<ref name=ABAR2012-13/> Out of the total employees, 51% were officers, 30% were clerks and remaining 19% were subordinate staff.<ref name=ABAR2012-13/> The bank recruited 1,950 employees (1,421 Officers, 390 Clerks and 139 subordinate staff) during the same financial year.<ref name=ABAR2012-13/> The company incurred INR 20 billion on employee benefit expenses during the same financial year.<ref name=ABAR2012-13/><br>
Employee productivity: During the FY 2013–14, the business per employee was INR 13.50 [[crore]]s and it earned a net profit of INR 4.77 [[lakh]]s per employee.<ref name=ABAR2012-13/>

The bank was operating in the following States/UTs
{{div col|colwidth=15em}}
* Andaman And Nicobar Island
* Andhra Pradesh
* Arunachal Pradesh
* Assam
* Bihar
* Chandigarh
* Chhattisgarh
* Delhi
* Goa
* Gujarat
* Haryana
* Himachal Pradesh
* Jammu And Kashmir
* Jharkhand
* Karnataka
* Kerala
* Madhya Pradesh
* Maharashtra
* Manipur
* Meghalaya
* Nagaland
* Odisha
* Puducherry
* Punjab
* Rajasthan
* Sikkim
* Tamil Nadu
* Telangana
* Tripura
* Uttar Pradesh
* Uttarakhand
* West Bengal
{{div col end}}

== Scams ==
On July 13, 2019, Allahabad Bank disclosed that it detected a fraud, worth {{INRConvert|1774.82|c|0}} by [[Bhushan Power & Steel]] Ltd (BPSL).<ref>{{cite news |title=Allahabad Bank defrauded of Rs 17,775 crore by Bhushan Power & Steel |url=https://www.indiatoday.in/business/story/allahabad-bank-defrauded-of-rs-17-775-crore-by-bhushan-power-steel-1568419-2019-07-13 |publisher=[[India Today]] |date=July 13, 2019}}</ref>

The bank also detected another fraud of {{INRConvert|688.27|c|0}} by SEL Manufacturing Ltd., a Ludhiana-based textile company on July 17, 2019.<ref>{{cite news |title=Allahabad Bank reports Rs 688.27 crore fraud |url=https://www.indiatoday.in/business/story/allahabad-bank-reports-rs-688-27-crore-fraud-1570644-2019-07-18 |publisher=[[India Today]] |date=July 18, 2019}}</ref><ref>{{cite news |title=Allahabad Bank reports about ₹688 crore fraud by SEL Manufacturing |url=https://www.livemint.com/industry/banking/allahabad-bank-reports-about-rs-688-crore-fraud-by-sel-manufacturing-1563417859745.html |publisher=[[Livemint]] |date=July 18, 2019}}</ref>

==See also==
{{Portal|Companies|Banks|India}}
*[[List of banks]]
*[[List of banks (alphabetical)]]
*[[List of banks in India]]
*[[Banking in India]]
*[[Chartered Bank of India, Australia and China]]

==References==
{{reflist}}

==External links==
{{Commons category|Allahabad Bank}}
* [http://www.allahabadbank.in Official website]
* [https://www.allbankonline.in/ Internet Banking Portal]

{{Banking in India}}

[[Category:Defunct banks of India]]
[[Category:Indian companies established in 1865]]
[[Category:Banks established in 1865]]
[[Category:Banks disestablished in 2020]]
[[Category:Companies formerly listed on the Bombay Stock Exchange]]
[[Category:Companies nationalised by the Government of India]]
[[Category:Banks based in Kolkata]]
[[Category:Indian companies disestablished in 2020]]
[[Category:Economic history of Uttar Pradesh]]
[[Category:Companies listed on the National Stock Exchange of India]]
[[Category:Companies listed on the Bombay Stock Exchange]]

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Allahabad Bank