Allahabad Bank

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Allahabad Bank
Type Public
Traded as BSE532480,
NSEALBK
Industry Banking, Financial services
Founded 24 April 1865 in Allahabad
Headquarters Kolkata, India
Number of locations 2,840 branches (2014)[1]
Key people

TR Chawla Executive Director[2]

Rakesh Sethi (Chairman and MD);[3]
Services
Revenue Increase INR189.13 billion (US$3.1 billion) (2013)[4]
Operating income Decrease INR33.85 billion (US$560 million) (2013)[4]
Net income Decrease INR11.85 billion (US$200 million) (2013)[4]
Total equity Increase INR5 billion (US$83 million) (2013)[4]
Employees 22,557 (March 2013)[5]
Website allahabadbank.in

Allahabad Bank (Hindi: इलाहाबाद बैंक) is a nationalised bank with its headquarters in Kolkata, India. It is the oldest joint stock bank in India. On 24 April 2014, the bank entered into its 150th year of establishment. It was founded in Allahabad in 1865.

Shri T.R Chawla is the senior most Executive Director of the bank. Shri Rakesh Sethi is the newly appointed Chairman & Managing Director of the bank.[6]

As of 31 March 2012, it had over 2,500 branches across India.[1] The bank did a total business of INR 3.1 trillion during the FY 2012-13.[5] The bank has a branch in Hong Kong and a representative office in Shenzen.

The bank's market capitalisation in May 2013 was US$ 1.28 billion and it ranked #1466 on the Forbes Global 2000 list.[7]

History[edit]

19th century[edit]

On 24 April 1865, a group of Englishmen at Allahabad founded Allahabad Bank. By the end of 19th century it had branches at Jhansi, Kanpur, Lucknow, Bareilly, Nainital, Calcutta, and Delhi.

20th century[edit]

In the early 20th century, with the start of Swadeshi movement, Allahabad Bank witnessed a spurt in deposits. In 1920, P & O Banking Corporation acquired Allahabad Bank with a bid price of INR436 (US$7.20) 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.[8] In 1963 the revolutionary government in Burma nationalized Central Bank of India's operations there, which became People's Bank No. 2.[9]

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

In October 1989, Allahabad Bank acquired United Industrial Bank, a Calcutta-based bank that had been established in 1940. Two years later, Allahabad Bank established AllBank Finance Ltd, a wholly owned Merchant Banking subsidiary.

21st century[edit]

The government's ownership of Allahabad Bank shrank in October 2002 after the bank engaged in an Initial Public Offering (IPO) of INR100 million (US$1.7 million) 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 million mark.

Listings and shareholding[edit]

Allahabad Bank's equity shares are listed on Bombay Stock Exchange and the National Stock Exchange of India.

Shareholders (as on 31-Mar-2014)[10] Shareholding
Promoter Group (Government of India) 58.90%
Indian FIs/MFs 17.74%
Foreign Institutional Investors (FII) 08.74%
Resident Indians 12.70%
Others 01.92%
Total 100.0%

Employees[edit]

As om 31 March 2013, the bank had 22,557 employees, out of which 3,293 were women (15%).[5] Out of the total employees, 51% were officers, 30% were clerks and remaining 19% were subordinate staff.[5] The bank recruited 1,950 employees (1,421 Officers, 390 Clerks and 139 subordinate staff) during the same financial year.[5] The company incurred INR 20 billion on employee benefit expenses during the same financial year.[5]
Employee productivity: During the FY 2013-14, the business per employee was INR 13.50 crores and it earned a net profit of INR 4.77 lakhs per employee.[5]

See also[edit]

Citations and references[edit]

Citations
  1. ^ a b [1]
  2. ^ TR Chawla Executive Director
  3. ^ http://articles.economictimes.indiatimes.com/2014-03-12/news/48154059_1_new-cmd-allahabad-bank-chairman-and-managing-director
  4. ^ a b c d "Financial Results - Annual Trend". Bombay Stock Exchange. Retrieved 26 February 2014. 
  5. ^ a b c d e f g "Annual Report 2012-13". Allahabad Bank. Retrieved 26 February 2014. 
  6. ^ https://www.allahabadbank.in/english/Directors.aspx
  7. ^ "Allahabad Bank on the Forbes Global 2000 List". Forbes. 31 May 2013. Retrieved 26 February 2014. 
  8. ^ Turnell (2009), p. 110.
  9. ^ Turnell (2009), p.226.
  10. ^ "Shareholding pattern". Allahabad Bank. Retrieved 26 February 2014. 
References
  • Turnell, Sean (2009) Fiery Dragons: Banks, Moneylenders and Microfinnance in Burma. (NAIS Press). ISBN 9788776940409

External links[edit]