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Merger process of Allahabad Bank, Indian Bank might face slight delay: Official

The merger process of Indian Bank and Allahabad Bank could face a slight delay in the wake of the 21-day nationwide lockdown, an official of the Kolkata-based lender said on Saturday.

PTI|
Last Updated: Mar 28, 2020, 04.18 PM IST
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The merger process of Indian Bank and Allahabad Bank could face a slight delay in the wake of the 21-day nationwide lockdown, an official of the Kolkata-based lender said on Saturday. Basic banking transactions, however, will commence from April 1, the effective date of merger, he said. "Due to the prolonged lockdown, there could be some slight delay in completing the merger process but transactions like cash deposits, withdrawals and money transfer will begin from April 1," the official told PTI.

As per the swap ratio of the merger, 115 shares of Indian Bank will be exchanged with every 1,000 shares of Allahabad Bank. The official also said post the amalgamation, Allahabad Bank will vacate its iconic head office building on NSC Bose Road here and move to a nearby premise. He said the name 'Allahabad' will be retained in the new logo just below the slot for Indian Bank. "We will vacate the head office building, hopefully after three to six months once the merger takes place. This is a rented building and we will move to our annex building across the street on India Exchange Place," he said.

The official said though the branches are noT operating at full strength due to the lockdown, all internal guidelines have been disemminated to the staff regarding standardisation of products, process and procedures. Post the merger, the total business volume will be to the tune of Rs 8.40 lakh crore, he said, adding, all the staff will be retained. The current MD and CEO of Indian Bank will become the new chief of the merged entity.
(Catch all the Business News, Breaking News Events and Latest News Updates on The Economic Times.)

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