Allahabad Bank
A historic Indian public-sector bank founded in 1865 that ceased independent operations when it merged with Indian Bank in 2020.
Last updated August 21, 2026
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Overview
Allahabad Bank was an Indian commercial bank founded on 24 April 1865 in Prayagraj, then known as Allahabad. It became one of the country’s oldest joint-stock banking institutions and ultimately developed from a regional operation into a national public-sector bank serving retail, corporate, wholesale and institutional customers. Its activities included accepting deposits, extending loans, providing payment and remittance facilities, supporting agriculture and small-scale industries, and offering treasury and other financial services. The bank’s early growth was tied to the commercial development of northern India. By the end of the nineteenth century it had established branches in cities including Jhansi, Kanpur, Lucknow, Bareilly, Nainital, Kolkata and Delhi. In 1920, P & O Banking Corporation acquired the bank. Allahabad Bank moved its head office and registered office to Kolkata in 1923, partly to improve operating convenience and access to commercial opportunities. When Chartered Bank of India, Australia and China acquired P & O Banking Corporation in 1927, Allahabad Bank continued to operate as a separate entity within the wider banking structure. The bank also had an overseas presence in Rangoon, although that operation was later absorbed into Chartered Bank’s local business and nationalised by Myanmar’s government in 1963. India’s nationalisation programme changed the bank’s ownership and strategic setting. On 19 July 1969, the Government of India nationalised Allahabad Bank along with thirteen other major commercial banks. It subsequently operated as a public-sector institution, combining conventional banking with directed lending to priority sectors. The bank entered merchant banking in 1984 and acquired United Industrial Bank in 1989, adding the Calcutta-based institution’s branch network. It later created AllBank Finance as a wholly owned merchant-banking subsidiary and developed relationships with institutions such as SIDBI, IDBI, ICICI, ECGC and UTI Mutual Fund. During the 1990s and 2000s, Allahabad Bank modernised its operating platform. It introduced or expanded branch automation, core banking, internet banking, mobile and SMS banking, electronic funds transfer, tax-payment services and online trading arrangements. Its technology programme included a core banking implementation with Tata Consultancy Services and the extension of core banking solutions across its branches during 2010–11. The bank also launched products such as RuPay cards, prepaid gift cards, IMPS mobile payments, pensioner loans and retail-credit schemes. Its international network included a representative office in Shenzhen in 2006 and a branch in Hong Kong in 2007. At its later peak as an independent institution, Allahabad Bank remained a broad-based commercial bank with retail banking, corporate and wholesale banking, treasury operations and other banking activities. It served individuals, businesses, farmers, small enterprises, public-sector entities and priority-sector borrowers. As of 31 March 2018, it reported more than 3,245 branches and total business of approximately ₹3.8 trillion. The bank also participated in government programmes including sovereign gold bonds, debt-relief and deposit schemes, financial inclusion initiatives and Lok Adalat recovery activity. The final stage of the brand’s history was shaped by consolidation of India’s public-sector banks. On 30 August 2019, the Government of India announced that Allahabad Bank would merge with Indian Bank. The Union Cabinet approved the arrangement on 4 March 2020, and Indian Bank assumed control on 1 April 2020. The merger transferred Allahabad Bank’s branches, customers, employees, assets and liabilities into Indian Bank and ended Allahabad Bank’s existence as an independent banking institution. Its historical identity survives primarily as a legacy banking brand and institutional predecessor of Indian Bank.
History
Allahabad Bank was founded on 24 April 1865 in Prayagraj, historically called Allahabad, by a group of Europeans. It became one of India’s earliest joint-stock banks and expanded during the nineteenth century as commercial activity grew in northern India. By the end of that century, its network included branches in Jhansi, Kanpur, Lucknow, Bareilly, Nainital, Kolkata and Delhi. In 1920, P & O Banking Corporation acquired Allahabad Bank. The bank moved its head and registered offices to Kolkata in 1923. After Chartered Bank of India, Australia and China acquired P & O in 1927, Allahabad Bank remained a separately operated institution. It also established a branch in Rangoon, although that business was later combined with Chartered Bank’s local operations. Myanmar nationalised the relevant Chartered Bank activities in 1963. On 19 July 1969, the Government of India nationalised Allahabad Bank along with thirteen other major banks. It thereafter operated within India’s public-sector banking system, providing deposits, lending, treasury operations, corporate and wholesale banking, retail banking and financial services. The bank expanded into merchant banking in 1984 and acquired United Industrial Bank in 1989, adding 145 branches. It established AllBank Finance as a wholly owned merchant-banking subsidiary in 1991, later changing its regulatory position after surrendering its merchant-banking registration in 1998. The bank broadened its institutional relationships in the 1990s and 2000s. It worked with SIDBI on financing small-scale industries, developed arrangements with IDBI and ICICI for infrastructure projects, and entered distribution or financing relationships with ECGC, UTI Mutual Fund, Mahindra Gujarat Tractor and other organisations. Its technology programme included an integrated banking system implemented with Tata Consultancy Services, branch mechanisation, internet banking, SMS banking, electronic funds transfer, online tax services and later mobile banking. During 2010–11, its branches were brought under core banking solutions. It also introduced RuPay cards, prepaid gift cards, IMPS, pensioner lending and retail-credit schemes. Allahabad Bank developed a limited overseas presence in the twenty-first century. It opened a representative office in Shenzhen in June 2006 and its first overseas branch, in Hong Kong, in February 2007. In India, it continued to support government-directed programmes, agricultural lending, small-scale industry finance and priority-sector credit. In the year ended 31 March 2018, it had more than 3,245 branches and total business of about ₹3.8 trillion. The bank’s later years were affected by broader public-sector bank consolidation and the disclosure of significant corporate-loan frauds in 2019. On 30 August 2019, the Government of India announced a merger between Allahabad Bank and Indian Bank. The Union Cabinet approved the plan on 4 March 2020, and the transaction took effect on 1 April 2020. Indian Bank assumed the former bank’s business, branches and customer relationships, bringing Allahabad Bank’s 155-year independent history to an end.
- 2020
Merged into Indian Bank
[1]The merger took effect on 1 April 2020, ending Allahabad Bank’s independent operations.
- 2019
Merger announced
[1]The Government of India announced that Allahabad Bank would merge with Indian Bank.
- 2018
Large national branch network
[1]As of 31 March 2018, the bank had more than 3,245 branches across India and reported total business of approximately ₹3.8 trillion.
- 2012
Digital and card product expansion
[1]The bank introduced RuPay cards, prepaid gift cards and IMPS mobile payments.
- 2007
Hong Kong branch opened
[1]Allahabad Bank opened its first overseas branch in Hong Kong.
- 2006
First modern overseas representative office
[1]The bank opened a representative office in Shenzhen, China.
- 1989
United Industrial Bank merger
[1]Allahabad Bank acquired United Industrial Bank, adding its branch network.
- 1969
Nationalised by India
[1]Allahabad Bank was nationalised with thirteen other major Indian commercial banks on 19 July.
- 1923
Head office moved to Kolkata
[1]The bank transferred its head and registered offices from Allahabad to Kolkata.
- 1920
Acquired by P & O Banking Corporation
[1]P & O Banking Corporation acquired Allahabad Bank.
Products and positioning
A long-established Indian public-sector commercial bank combining mass-market banking, priority-sector lending and institutional finance.
Retail and commercial banking
Deposit accounts
Allahabad Bank accepted savings, current and other deposits from individuals, businesses and institutions. Deposit gathering was a foundational activity supporting the bank’s lending, treasury and payment operations. Product names, eligibility rules and pricing changed over the bank’s long operating history.
Lending
Agricultural and priority-sector loans
The bank provided short- and long-term financing to agriculture, small-scale industries and other priority sectors under India’s public-sector banking framework. These activities supported government-directed credit objectives as well as the bank’s broader rural, small-business and commercial lending operations.
Lending
Retail and corporate loans
Allahabad Bank offered financing to individual and institutional customers, including retail borrowers, corporate clients and wholesale customers. Its later retail portfolio included pensioner lending and products such as the New Saral Loan Scheme and Credit Loyalty Benefit Scheme.
Cards and payments · 2012
RuPay card
The bank launched a RuPay-branded domestic ATM card as part of its card and electronic-payment offering. The product formed part of the bank’s effort to expand self-service banking and domestic electronic payments.
Prepaid payments · 2012
Prepaid Gift Card
Allahabad Bank introduced a non-reloadable prepaid card intended for gift purchases. It was one of the products launched during the bank’s expansion of retail payment services in the 2012–13 period.
Digital banking · 2012
IMPS mobile payments
The bank offered Immediate Payment Service transfers through mobile channels, enabling electronic interbank payments. IMPS formed part of a wider digital programme that also included internet banking, SMS banking, RTGS and NEFT services.
Controversies
2019
Bhushan Power & Steel fraud disclosure
Allahabad Bank disclosed on 13 July 2019 that it had detected a fraud involving Bhushan Power & Steel. The reported amount was approximately ₹17.7482 billion.
2019
SEL Manufacturing fraud disclosure
On 17 July 2019, the bank disclosed another fraud involving SEL Manufacturing, a textile company based in Ludhiana. The reported amount was approximately ₹6.8827 billion.
Brand decisions
2020
Merger with Indian BankM&ABackground
The Government of India pursued consolidation of public-sector banks to create institutions with greater scale and integrate their operations.
Action taken
The Union Cabinet approved the proposed combination on 4 March 2020, and Indian Bank assumed control of Allahabad Bank on 1 April 2020.
Aftermath
Allahabad Bank ceased to operate as an independent bank. Its business, branches, customers, employees, assets and liabilities were integrated into Indian Bank.
2006
Expansion into China and overseas bankingStrategyBackground
The bank sought a limited international presence to support cross-border relationships and services.
Action taken
Allahabad Bank opened a representative office in Shenzhen and later established an overseas branch in Hong Kong.
Aftermath
The initiatives gave the bank a small overseas network alongside its much larger Indian branch system.
Sources1 sources
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