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Santanu Sanyal

To seek licences for over 160 more branches

MR A.C. MAHAJAN

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Kolkata March 7

In its bid to enhance presence in the southern region, Allahabad Bank has renewed its effort to acquire a bank with a good branch network. Its earlier attempt in this regard did not make much headway.

"Our attention has been drawn to two private banks on sale but the prices being quoted appear to be rather high," Mr A.C. Mahajan, Chairman and Managing Director of Allahabad Bank, told Business Line recently.

"We're also open to acquiring a small public sector bank in the south and I'm sure that such an acquisition will help achieve synergy in operation for both the banks," Mr Mahajan said. But then, there are not many small public sector banks in the south. Also, much would depend on the Government.

Right now Allahabad Bank has only 87 branches in the four Southern States and the number is to rise to 94 by July 2007. "We will apply for licences for opening another 167 branches in 2007-08 and one-third of them in the south," the CMD said. About 75 per cent of Allahabad Bank's total number of 2,042 branches are located in a few States — UP, West Bengal, Bihar, Jharkhand, Orissa and North-East.

Priority Sector

Meanwhile, for the past one and half months, the bank, as the CMD pointed out, had been giving thrust to advances to agriculture and priority sector such that the stipulated 18 per cent of the net credit went to agriculture and 40 per cent to priority sector covering SMEs, retail loans, SSIs and education and others.

Till December 2006, advances to agriculture sector amounted to Rs 6,900 crore representing 17.2 per cent of the net bank credit and advances to priority sector to Rs 14,800 crore representing 39 per cent.

More Stories on : Mergers & Acquisitions | Public Sector Banks

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