Allahabad Bank Opens Representative Office in China

Allahabad Bank, the oldest joint stock bank of the country, has made its maiden overseas appearance on Monday, 19th June,2006 when Bank's first ever overseas Representative Office in Shenzhen, China was inaugurated, by Mr. O.N. Singh, Chairman & Managing Director of the Bank.

Also present were Mr. S.K. Chakraborty, General Manager of the Bank and a host of dignitaries representing China Banking Regulatory Commission (CBRC), Shenzhen Municipal Govt. Trade Promotion Bureau and Foreign Trade Bureau, State Administration Officials, representatives of World Trade Centre, Indian Corporates and businessmen working in China and representative of banking industry operating in Shenzhen.

The Representative Office is the first foreign office of the Bank in its long and eventful history of 142 years. After the inauguration, Mr. O.N. Singh held series of interactions with the elite of the business and economic community of the 4th most important commercial city of China. Speaking on the occasion, Mr. O.N. Singh thanked China Banking Regulatory Commission (CBRC) for facilitating Bank's first ever foreign office to come up at this leading industrial and commercial hub center of China. It was a challenge before the Bank to go international and this had been accomplished.

Mr. O.N. Singh also said that the Bank had chosen this centre to open its Representative Office considering the immense potential of the Chinese economy, high profile investment opportunity and growing bilateral trade relations with India. The potential could be tapped only by gaining a better understanding of its nature and establishing a Representative Office was the best way to do it, he said. Mr Singh also outlined that the Rep Office would act as a liaison between the Head Office of the Bank and trade organizations and Banks in China and would be an effective tool for demonstrating Bank's commitment to China market.

In this connection, it may be mentioned that Allahabad Bank has achieved commendable success in its inland business during the year 2005-06. The business of the Bank was up by 24.87% over the previous year to reach Rs.78,561 crores. Deposit of the Bank rose to Rs.48,500 crores recording an above industry growth of 19% over last year. Credit grew by remarkable 35.70% to reach Rs.30,061 crores as on March-end, 2006. Market share of deposit went up to 2.29% from 2.25% and in credit it went up to 2.02% from 1.92% during the period. Net Profit of the Bank increased from Rs. 541.80 crores to Rs. 706.13 crores during 2005-06 recording a growth of 30.33%. The net NPA had gone down to below 1% and stood at 0.84% as on 31.3.2006. CRAR went up to 13.37% from 12.53% during the period. Earning per share grew to Rs.16.06 and Return on Asset went up to 1.42% from 1.33%. The above results were one of the best in the industry.

Mr. Singh also declared that Bank had already got necessary clearance of regulatory authorities for setting up a full-fledged branch in Hong Kong, which would come up shortly. It is also expected that the Rep Office would be upgraded to a branch in near future. This would be a good initiation for a Bank to start its overseas presence.

Kolkata, 19th June, 2006