Indian Bank board gives in-principle nod to merge Allahabad Bank

Indian Bank board gives in-principle nod to merge Allahabad Bank

The board of Indian Bank given its in-principle approval for its amalgamation with Allahabad Bank. The Chennai-headquartered Indian Bank’s board held a meeting. The to discuss the merger, where it gave its in-principle approval to the merger, the bank informed the stock exchanges.

Key highlights:

• The Chennai-headquartered Indian Bank’s board held a meeting. The to discuss the merger, where it gave its in-principle approval to the merger, the bank informed the stock exchanges.
• The board approved the proposed capital infusion of up to ₹5,000 crore by the Centre through preferential allotment to the government.
• The Central government recently announced the merger of 10 public sector banks into four.
• Indian Bank will acquire Allahabad Bank (primarily present in eastern India) to form the seventh-largest public sector bank.
• The board after deliberations conveyed its in-principle approval for the amalgamation of Allahabad Bank with Indian Bank
• After the amalgamation, the combined entity will have over 6,100 branches across the country and overseas presence in three countries, it said.
• The business after the amalgamation will be more than Rs8 lakh crore.
• The Union government last month approved to merge 10 state-owned banks into four entities, to strengthen them and also to cut number of publicly hold banks into of the global-sized banks.
• Among the other amalgamation proposals, Punjab National Bank is to merge Oriental Bank of Commerce and United Bank of India with itself. And, Canara Bank will merge its regional peer Syndicate Bank with itself.