Allahabad Bank
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BSE Code:
532480
NSE Code:
ALBK
Business Profile
Business Profile
Allahabad Bank (ALLBANK) is the oldest public sector bank in India. It was incorporated in 1865 by a few Europeans and was later nationalized in 1969. Avinash Chander Mahajan is the chairman and managing director.
The bank offers services like the AllBank-Expo scheme, personal and other loans, housing finance, deposit schemes to non-resident Indians etc. Other services include AllBank-Property, depository services, insurance linked deposit products, life insurance cover for housing loan customers, sale of insurance products (Bancassurance tie-ups), sale of mutual fund products, ATM cum international debit cards etc. The bank has introduced doorstep banking for customers in a select number of branches. It also started the reverse mortgage program for senior citizens.
The bank opened its first overseas branch in the busy economic centre of Hong Kong and has its representative office in Shenzhen, China. It has a subsidiary ALLBank Finance.
The bank has already floated a joint venture company for insurance business named Universal Sompo General Insurance Company with Indian Overseas Bank, Karnataka Bank, Dabur and Sompo (Japan). The bank has tie-up arrangements with Franklin Templeton Asset Management (India), UTI Asset Management Company, Principal PNB Asset Management Company, Kotak Mahindra Asset Management Company and Reliance Capital Asset Management for distribution of their products. The bank MoUs and alliances with various financial companies like SIDBI and Wall Street Finance to spread its services globally.
The bank has its headquarters at 2, Netaji Subhas Road, Kolkata- 700001.
Financials
The bank announced a marginal rise in standalone net profit for the quarter ended December 2008. During the quarter, the profit of the company rose 1.21% to Rs 3,694.69 million from Rs 3,650.51 million in the same quarter previous year. Interest earned for the quarter rose 19.86% to Rs 18,980.45 million, while total income for the quarter rose 17.89% to Rs 23,064.50 million, when compared with the prior year period. It reported earnings of Rs 8.27 a share during the quarter, registering 1.22% growth over prior year period.
Recent Developments
27-MAR-09
The bank slashed its benchmark prime lending rate (BPLR) by 25 basis points to 12.25% from its earlier rate of 12.50% with effect from Apr. 1 , 2009.
20-MAR-09
The bank raised Rs 4 billion via issue of Upper Tier II bonds Series VIII which was rated as CARE AA+ by CARE and AA/Stable by CRISIL.
19-MAR-09
The bank has raised Rs 5 billion via issue of upper tier II bonds series I which was rated as AA by CARE and AA/Stable by CRISIL.
Future Plans
The bank made a strategic plan for extensive mechanization of operations by the year 2007-2008 with centralized banking solutions (CBS) in more branches (computerization of 100% business) and installation of 50 touch screen kiosks to provide rural/semi-urban customers various information regarding their accounts.