Kolkata: Indian Bank will retain its name after its merger with Allahabad Bank, bank chief executive Padmaja Chunduru said, exuding confidence that merged entity could leverage on the pan-India presence it would have now. The merger is scheduled to come of force from April 1. The combined entity will have a network of 6,100-odd branches.

Chunduru said that the positions and salaries of the Kolkata-headquartered Allahabad Bank employees will be protected after the merger and no employee up to mid-management level would immediately be transferred. She said that Kolkata will be a major business center for the merged entity and a chief general manager may be posted in the city as a mark of its importance. Not all Allahabad Bank general managers would immediately be shifted to Chennai, which is the headquarters of Indian Bank.

The merged entity proposed a 12% growth target for the first year but the spread of Covid19 may play spoilsport. “We are taking stock of the situation daily,” Chunduru said, adding that it is too early to assess the likely financial impact. She said that the merged entity is projected to have 13% capital to risk (weighted) assets ratio (CRAR) which would be sufficient for first year growth projection.

She added that the bank may look raise capital in the second half of next fiscal but the quantum and timing would depend on the market condition. “There is no rush to raise capital,” she said. The merger is expected to create the seventh largest bank in the country with total business of Rs 8.5 lakh crore.

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