The Hindu Business Line : Allahabad Bank plans to revive subsidiary

Mr O.N. Singh, CMD of Allahabad Bank, told shareholders at the bank's annual general meeting here on Monday that AllBank Finance was not functioning at present. "No business is being transacted by it, but we are planning to keep it alive," he said.

Among various fee-based activities proposed to be undertaken under AllBank Finance included the selling of insurance and mutual funds products and syndication and appraisal of loans. "It is good to have a full-fledged subsidiary for the purpose bancassurance," Mr Singh said.

While talking to presspersons Mr Singh indicated that the bank was now going slow on its earlier plan to acquire some other banks in southern and western regions to make its presence felt in these regions. "We have to wait till we get positive response from the Government," he said.

Mr Singh, however, pointed out that the bank was actively pursuing its plan to open branches in China, Singapore and Sri Lanka. Necessary survey was currently in progressThere was also a proposal to have a representative in the Gulf region, he added.

The bank's plan to open offshore business unit (OBU) in Noida did not make much progress as the Reserve Bank of India, following bungling in this matter by a private sector bank, has initiated fresh review of the entire gamut of issues relating to opening of OBUs and accordingly put on hold approvals to such proposals.

While the bank had no other option but to go for yet another round of public issue of equity to augment its resources base to fund the future growth plans, the timing of the proposed second issue had not yet been finalised. "It could be October, November or December but certainly before the end of the current fiscal," he said.

Ernst & Young was advising the bank in matter of implementing the core banking solution by way of selection of the vendor as well as total implementation.

The bank would hold an extraordinary general meeting shortly to induct four persons as shareholders' representatives on the bank's board, Mr Singh added.