Allahabad Bank board approves merger with Indian Bank

The board of directors in a meeting held on Monday has considered and accorded its in-principle approval for amalgamation of Allahabad Bank into Indian Bank.

Kolkata:The board of Allahabad Bank on Monday approved the merger proposal with Indian Bank, making the amalgamated entity the seventh-largest public sector lender of the country.

Finance Minister Nirmala Sitharaman had on August 30 announced the consolidation of 10 state-run banks into four large-scale lenders.

"In terms of SEBI (listing obligations and disclosure requirements), the board of directors in a meeting held today has considered and accorded its in-principle approval for amalgamation of Allahabad Bank into Indian Bank," the city-based lender said in a statement.

Meanwhile, employees and officers of Allahabad Bank staged a demonstration in front of its headquarters here to protest against the merger.

A office-bearer of the staff association said the amalgamation is being opposed as Allahabad Bank has higher levels of CASA (current account and savings account), more staff strength and a bigger volume of business compared to the other lender.

"The merger proposal with Indian Bank is illegal," he claimed.