Homefinance News

Huge geographical advantage of merger with Indian Bank, says Allahabad Bank MD Mallikarjuna Rao

finance | IST

Huge geographical advantage of merger with Indian Bank, says Allahabad Bank MD Mallikarjuna Rao

SS Mallikarjuna Rao, managing director and CEO, Allahabad Bank, on Tuesday said that the lender's merger with Indian Bank has an enormous geographical advantage.
The government last week announced the merger of 10 PSU banks into four and one of them is between Indian Bank and Allahabad Bank. The merged entity will become the country’s seventh-largest PSU bank.
Discussing the roadmap post the merger, Rao said, "The geographical advantage of merger of both the banks is enormous... we are looking at the merger from the angle of geographical merger and not a cultural merger."
"The presence of Allahabad bank in northern parts of the country is high while that of Indian bank is less, while in southern parts their presence is higher and ours is less, so geographical synergies for the merged entity are huge," he explained.
Rao said the net NPA for the consolidated entity would be maintained around 6 percent and the gross NPA would be dependent on cases to be settled in NCLT.
“As far as the business vertical projections we have made for 2020, 2021 and 2022, we will stick to that and as far as the combined entity's business profile for March ’20 is concerned, we will have to sit together and see because as of today, their targets for March’20 and our targets for March’20 will still remain,” Rao said, adding that for Allahabad Bank, he expects a 9 percent growth in credit profile and 10 percent growth in deposits.
next story

Market Movers

Currency

CompanyPriceChng%Chng