Chennai: The Indian Bank will decide whether to continue with the general insurance business of the Allahabad Bank - which has been merged with it - after due diligence, its Managing Director and CEO Padmaja Chundru said on Wednesday.
"We will decide on continuing with the general insurance joint venture of Allahabad Bank after completing due diligence of the insurance business," Chundru told reporters here.
"I can only say that much now."
The Central government had recently decided to merge the Allahabad Bank with the city-based Indian Bank.
The Allahabad Bank is a joint venture partner in the Universal Sompo General Insurance Company along with the Indian Overseas Bank (IOB), the Karnataka Bank, Dabur Investments and Sompo Japan Nipponkoa Insurance Inc.
Chundru said pre-merger activities like issuing Request for Proposals (RFP) for different activities, setting up of committees of General Managers of both the banks are on.
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Meetings with the employees of both the banks are being held to iron out any apprehensions, she added.
Indian Bank has also reported a net profit of Rs 359 crore for the quarter ended September 2019 on increasing income and improving asset quality by controlling loan slippage and other factors, said a top bank official.
Announcing the second quarter results, Padmaja Chundru, Managing Director and CEO, said the bank registered a net profit of Rs 359 crore for the second quarter of FY20, logging 139 per cent growth.
The public sector lender earned Rs 738 crore for the second quarter, logging 72 per cent growth, mainly on account of sale of investments. The bank's total income for Q2 was Rs 6,045 crore, up by 18 per cent over Rs 5,129 crore earned during the second quarter of 2018-19.
