Allahabad Bank to venture down south

By News Desk | May 7, 2010

The lucrative credit market in the south has tempted Allahabad Bank to increase its base there too. The bank plans to start some branches in the southern cities.

M R Nayak, the bank’s executive director, said, “The credit market in the southern region is encouraging. We are going to open 40 of 95 new branches planned this year in the south”.

The bank’s presence in the south is very small, with just 135 from its 2,312 branches located in the south. The southern region contributes just 16% of the bank’s total business operations.

Nayak said, “The potential in the south is huge. Andhra Pradesh and Tamil Nadu are major markets. We have been taking a cluster approach in our operations and the model suits several industrial cities in the region”.

However the bank did not verify the rumor that it would acquire a medium sized south based bank.

Nayak said, “We are interested in organic growth. The consolidation process is anyway taking time in the banking sector. Moreover, the branch licensing system too has been relaxed keeping financial inclusion plans in mind. We will grow on our own and open new branches in the southern market”.

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