Allahabad Bank celebrates 140th foundation day - Rededicates itself to the service of the nation

Founded on 24th April 1865, Allahabad Bank has today stepped into the 140th year of its glorious existence in the Indian financial sector. During its long, eventful journey Allahabad Bank has crossed many milestones of success - in both pre & post independence period spanning over three centuries.

Speaking to the press on the occasion, Shri O.N Singh, the C & MD of Allahabad Bank stated that the stage is now set for Allahabad Bank to move into higher orbit. During the year 2003-04, total business (deposits + advances) of Allahabad Bank is estimated to cross Rs. 48000 crore mark registering a growth of more than 22.5% over the previous year. The Bank posted a 115% growth in its net profit for the quarter ended December 31, 2003.

Shri Singh further informed that the corporate plan meet of Allahabad Bank has just concluded on 23rd April in which the field executives have committed to dedicate themselves for all round achievement of the goals set for them for the current financial year. He stated that the ‘Team Allahabad Bank’ is now all geared to achieve a business level of more than Rs. 60000 crore by March 2005.

Shri O.N Singh, elaborating further on the plans, stated that Allahabad Bank is now putting more emphasis on skilling and reskilling of its manpower. In this connection, the Bank has created a post of General Manager (HRD) at its corporate office. The Bank has engaged NIBM as the HRD consultant. Shri Singh added that priority will be placed on manpower development, continuous sharpening of human skill and its proper deployment. He further mentioned that the Bank’s rich intellectual capital is capable to take on the challenges of new age banking in the 21st century.

While speaking about the year-long programme planned by the Bank to commemorate the 140th year of its service to the Nation, Shri O.N. Singh informed that as part of its celebration Allahabad Bank has lined up a slew of new products and services for introduction during the year

Launch of Free Personal Accident Insurance for Savings Bank Depositors

Shri Singh was happy to announce on the day the launching of a new friendly insurance-linked deposit scheme for Savings Bank depositors of Allahabad Bank. Under the scheme, all Savings Bank account holders maintaining a monthly average balance of Rs. 5000/- shall be provided with a FREE Personal Accident Insurance cover of Rs. 1.00 lac. The Bank signed an MoU to this effect with National Insurance Co. Ltd., who are the Bank’s existing Bancassurance partner in general insurance.

Introduction of Gold Card & Silver Card Scheme for privileged customers

To mark the Foundation day of the Bank, Shri Singh further announced the introduction of a new scheme by Allahabad Bank for its existing & old valued customers viz., Agriculturist, Small & Medium Enterprises & Industries, Trader

Customers having loan limit upto Rs. 3.00 crore. Under the new scheme, the above customers of the Bank shall be segmented into Gold Card & Silver Card customers based on risk perception and accordingly, better pricing in terms of interest rates will be offered to them. The Gold Customers will get the benefit of PLR-2% concessional rate of interest on their loans along with further 0.50% concession on charges pertaining to non-fund business. The Silver Card Customers will get the benefit of PLR-1% concessional rate of interest on their loans and 0.25% concession on other charges on account of non-fund business.

Opening of 100 new Retail Banking Boutiques

The Retail Banking Boutiques (RBBs) have spearheaded the retail loan disbursements of Allahabad Bank during last few years. The number of RBBs as on 31.3.2004 was 257 with a retail credit portfolio of more than Rs. 2200 crore. Shri Singh announced the Bank’s plan to add 100 more new RBBs during the current financial year. For this, the Bank has identified potential branches all over the country which have IT platform to accommodate the RBB in a computerised environment. The new RBBs will be opened within the first quarter of the current year.

Launching of ‘Kisan Shakti Yojana’ (KSY) for Farmers

Shri Singh announced the launching of Kisan Shakti Yojana (KSY) to further empower the Bank’s existing and prime Kisan Credit Card holder farmers who have excellent transaction record in the KCC accounts for last three years. These farmers will now be able to avail hassle free loan facilities upto Rs. 5.00 lacs to meet the farm investment as well as personal needs at an affordable rate of interest starting from 8.5% per annum.

Empowerment of rural people - Opening of Rural Boutiques for quick dispensation of rural & agricultural credit

To pay focussed attention to rural lending, Allahabad Bank has decided to introduce Rural Boutiques in the form of Gramin Vikash Kendra (GVK) which will be similar to the concept of Retail Banking Boutique. The GVKs will be special credit delivery-cum-consultancy channel to augment flow of credit to agriculture and SME sector. To begin with the scheme, the Bank has identified 10 potential branches in rural and semi-urban areas all over the country for setting up of GVK

Shri Singh was very upbeat about the Bank’s future plans. He stated that the recent strategic initiatives taken by the Bank, namely, rationalisation of branches, redeployment of staff members, reducing the response time, focused attention on implementation of technology plan and improving the delivery channels have resulted in increased efficiency and lowering of operating costs. Shri Singh was happy to state that the benefits arising out of savings in the costs are being passed on the Bank’s deposit & credit customers, as has been done in case of Free Personal Accident Insurance offered to the Savings Bank depositors and Gold & Silver Card Scheme introduced for the loan customers.