Allahabad Bank was a public sector bank in India, with its head office in Kolkata, West Bengal. Established in the colonial era, it was for many years described as the oldest joint stock bank in India still in continuous operation. In April 2020, Allahabad Bank was amalgamated into Indian Bank as part of a wider consolidation of public sector banks announced by the Government of India.
Key facts
| Name | Allahabad Bank |
|---|---|
| Type | Public sector bank (until 2020) |
| Country | India |
| Head office | Kolkata, West Bengal |
| Founded | Allahabad (now Prayagraj), United Provinces, British India |
| Nationalised | 1969 |
| Successor | Indian Bank (from 1 April 2020) |
| Owner | Government of India (until merger) |
Background
Allahabad Bank was founded in the city of Allahabad (renamed Prayagraj in 2018) during the period of British rule in India. It operated for several decades as a private joint stock bank serving traders and the colonial administration in northern India, before later expanding its branch network across the country. Its long continuous operation gave it a notable place in the history of Indian commercial banking.
Nationalisation and public sector era
Allahabad Bank was among the major Indian commercial banks taken into state ownership when the Government of India nationalised banks in 1969. Following nationalisation, it functioned as a scheduled commercial bank under the Ministry of Finance, with operations supervised in the framework set by the Reserve Bank of India. Over subsequent decades the bank expanded its branch network across rural, semi-urban and urban India, and developed retail, corporate, agricultural and priority-sector lending businesses typical of public sector banks.
The bank's registered head office was located in Kolkata, and it operated through zonal and regional offices across the country. It also undertook limited overseas operations through representative arrangements and a presence in select international financial centres.
Merger with Indian Bank
In August 2019, the Government of India announced a major consolidation of public sector banks aimed at creating fewer, larger lenders. Under this plan, Allahabad Bank was amalgamated with Indian Bank, with Indian Bank as the surviving entity. The merger took effect from 1 April 2020. With the amalgamation, Allahabad Bank ceased to exist as a separate banking entity, and its branches, employees, deposits and advances were transferred to Indian Bank.
Timeline
- 19th century: Allahabad Bank founded in Allahabad during British rule.
- 1969: Nationalised by the Government of India along with other major commercial banks.
- Late 20th century: Expansion of branch network and product range as a public sector bank.
- 2019: Government announces merger of Allahabad Bank into Indian Bank.
- 1 April 2020: Amalgamation with Indian Bank takes effect; Allahabad Bank ceases to operate as a separate bank.
Significance
Allahabad Bank was historically significant as one of the oldest joint stock banks in India, with origins predating the formation of many later commercial banks. As a nationalised bank, it played a role in extending banking services to underserved regions, supporting priority-sector lending including agriculture and small industry, and implementing financial inclusion programmes promoted by the Government of India and the Reserve Bank of India. Its merger into Indian Bank formed part of the broader restructuring of India's public sector banking landscape in 2019–2020.
Related topics
- Indian Bank
- Nationalisation of banks in India
- Public sector banks in India
- Reserve Bank of India
- Banking in India
- Prayagraj
- Kolkata
References
- Wikidata: Q2018840 – Allahabad Bank.
- Government of India announcements on consolidation of public sector banks, 2019.
- Reserve Bank of India notifications relating to the amalgamation of Allahabad Bank with Indian Bank, effective 1 April 2020.