Andhra Bank
Corporate brand
UnclaimedAndhra Bank was an Indian public-sector commercial bank founded in 1923 and amalgamated into Union Bank of India on 1 April 2020.
Last updated August 31, 2026
Overview
Andhra Bank was an Indian public-sector commercial bank whose history ran from the regional banking environment of the Madras Presidency to the nationwide public-sector banking system of modern India. It was founded in 1923 at Machilipatnam, then known as Masulipatnam, by Bhogaraju Pattabhi Sitaramayya, an Indian politician, economist and public figure. Raja Yarlagadda Sivarama Prasad provided the financial resources committed to establishing the institution. The bank was registered on 20 November 1923 and began business on 28 November of the same year. The institution initially developed as a regional bank associated with the Andhra area. Its corporate base later moved to Hyderabad. The reorganisation of Indian states on linguistic lines in 1956, and Hyderabad's position as the capital of the newly formed Andhra Pradesh, helped make the city the bank's principal administrative centre. Andhra Bank also strengthened its position in the region through the 1964 merger with Bharat Lakshmi Bank. In April 1980, during the second phase of India's commercial-bank nationalisation programme, Andhra Bank became wholly government-owned. As a public-sector bank, it expanded beyond its original regional base and supplied a broad range of banking services to households, businesses, farmers, institutions and public-sector programmes. Its activities included deposit accounts, retail banking, corporate and institutional lending, agricultural finance, payments, remittances, debit cards, automated teller machines and internet banking. It also participated in financial-sector joint ventures and international banking initiatives. By 31 March 2019, the bank operated 2,885 branches, four extension counters, 38 satellite offices and 3,798 ATMs. Its network covered 25 Indian states and three union territories. During the 2011–12 period, it entered Tripura and Himachal Pradesh, extending its geographic presence beyond its traditional Andhra and Telangana base. The bank also maintained representative offices in Dubai and Jersey City, although its principal business remained domestic Indian banking. Andhra Bank developed technology-led services including the AB INFI-net internet-banking facility and online railway-ticket booking for eligible debit-card and internet-banking customers through the IRCTC platform. It received recognition for banking technology and payments initiatives, particularly its use of information technology in semi-urban and rural areas and its promotion of ATM-based services. The bank was also involved in financial inclusion and community-development activities. It sponsored or supported the Andhra Pradesh Bankers' Institute of Entrepreneurship Development and adopted Gundugolanu village in West Godavari district, identified as the birthplace of its founder, for projects involving health, sanitation, education and social services. Andhra Bank's separate existence ended as part of India's public-sector-bank consolidation programme. On 30 August 2019, the Government of India announced that Andhra Bank and Corporation Bank would be amalgamated with Union Bank of India. The Andhra Bank board approved the proposal on 13 September 2019, and the Union Cabinet approved it on 4 March 2020. The amalgamation took effect on 1 April 2020. Andhra Bank shareholders received Union Bank of India shares under the approved swap arrangement, and the former Andhra Bank network, customers and operations were integrated into Union Bank of India's systems. The Andhra Bank name therefore remains part of Indian banking history rather than an active standalone banking brand.
History
Andhra Bank was established in 1923 at Machilipatnam in the then Madras Presidency. Bhogaraju Pattabhi Sitaramayya founded the bank, while Raja Yarlagadda Sivarama Prasad committed the financial resources required to start the institution. Andhra Bank was registered on 20 November 1923 and opened for business eight days later, on 28 November. Its paid-up capital at commencement was 100,000 Indian rupees and its authorised capital was 1 million rupees. The bank began as a regional commercial institution associated with the Andhra area. Its development was influenced by the political and administrative changes affecting southern India. Following the linguistic reorganisation of Indian states in 1956, Hyderabad became the capital of Andhra Pradesh, and Andhra Bank subsequently moved its registered office to Andhra Bank Buildings in Sultan Bazar, Hyderabad. In 1964, the bank merged with Bharat Lakshmi Bank, strengthening its position in Andhra Pradesh. Andhra Bank's later history was shaped by India's public-sector banking policy. In the second phase of commercial-bank nationalisation, initiated in April 1980, the institution became wholly owned by the Government of India. It thereafter operated as a public-sector bank with responsibilities extending beyond conventional commercial banking. Its activities included mobilising deposits, providing retail and corporate credit, supporting agriculture and rural customers, delivering payment services, operating ATMs and debit-card channels, and serving institutional and government-linked programmes. The bank gradually extended its branch footprint beyond its original regional base. During 2011–12 it entered Tripura and Himachal Pradesh, and by 31 March 2019 it operated across 25 states and three union territories. Its reported network at that date comprised 2,885 branches, four extension counters, 38 satellite offices and 3,798 ATMs. It also maintained representative offices in Dubai and Jersey City, supporting its broader international presence without changing its primarily India-focused business model. Technology was an important part of the bank's service proposition. Andhra Bank introduced AB INFI-net internet banking for customers of cluster-linked branches and enabled eligible debit-card and internet-banking customers to book railway tickets through an IRCTC gateway. The bank's technology initiatives were recognised through awards associated with banking technology, semi-urban and rural information-technology deployment, and ATM-channel payments. The institution also participated in financial-sector partnerships. It held a stake in India First Life Insurance Company, a joint venture involving Bank of Baroda, Andhra Bank and Legal & General. It was also associated with India International Bank Malaysia, a locally incorporated joint venture involving Bank of Baroda, Indian Overseas Bank and Andhra Bank. These arrangements extended the bank's activities into insurance distribution and overseas banking collaboration. Community and development initiatives formed another part of Andhra Bank's public-sector identity. Alongside the Andhra Pradesh government and other financial institutions, it supported the Andhra Pradesh Bankers' Institute of Entrepreneurship Development, which aimed to improve the skills and employability of unemployed young people. The bank also adopted Gundugolanu village in West Godavari district, regarded as the birthplace of Pattabhi Sitaramayya, for planned improvements in health, sanitation, education and social services. The final phase of Andhra Bank's history began with the Government of India's public-sector-bank consolidation plan. On 30 August 2019, the government announced that Andhra Bank and Corporation Bank would be merged into Union Bank of India. Andhra Bank's board approved the proposal on 13 September. The Union Cabinet gave its approval on 4 March 2020, and the amalgamation took effect on 1 April 2020. Under the approved share-exchange arrangement, Andhra Bank shareholders received Union Bank of India equity in exchange for their holdings. The separate legal and operating identity of Andhra Bank ended, and its branches, customers, data and banking operations were absorbed into Union Bank of India. Subsequent integration work included migration of former Andhra Bank branches to Union Bank's core-banking environment.
- 2020
Amalgamation with Union Bank of India takes effect
[1]The merger became effective on 1 April 2020, ending Andhra Bank's existence as a separate bank.
- 2019
Merger proposal announced
[1]The Government of India announced the proposed amalgamation of Andhra Bank and Corporation Bank with Union Bank of India.
- 2011
Expansion into Tripura and Himachal Pradesh
[1]During the 2011–12 period, the bank entered the states of Tripura and Himachal Pradesh.
- 2009
Representative office opened in Jersey City
[1]Andhra Bank opened a representative office in Jersey City, New Jersey.
- 2009
India First Life Insurance Company incorporated
[1]Andhra Bank joined Bank of Baroda and Legal & General in establishing India First Life Insurance Company.
- 2006
Representative office opened in Dubai
[1]The bank established a representative office in Dubai as part of its international expansion.
- 1980
Nationalised by the Government of India
[1]Andhra Bank became wholly government-owned during the second phase of India's commercial-bank nationalisation programme.
- 1964
Merger with Bharat Lakshmi Bank
[1]Andhra Bank merged with Bharat Lakshmi Bank, consolidating its position in Andhra Pradesh.
- 1956
Registered office moves to Hyderabad
[1]After Hyderabad became the capital of Andhra Pradesh following state reorganisation, Andhra Bank subsequently shifted its registered office to Hyderabad.
- 1923
Andhra Bank is registered and begins operations
[1]The bank was registered on 20 November 1923 at Machilipatnam and commenced business on 28 November under the founding leadership of Bhogaraju Pattabhi Sitaramayya.
Products and positioning
A public-sector Indian commercial bank serving retail, agricultural, business and institutional customers, with a historical regional base in Andhra Pradesh and a later nationwide branch network.
Banking deposits
Deposit accounts
Deposit accounts were a foundational part of Andhra Bank's commercial banking model. The bank served retail customers, businesses, institutions and other account holders through conventional deposit and account-management services. These activities continued until the 2020 amalgamation, after which the relevant customer relationships and accounts were transferred into Union Bank of India's operating structure.
Retail banking
Retail banking
Andhra Bank's retail business served individual customers through everyday banking, personal credit, payment facilities, debit cards, ATM access and related services. It formed part of the bank's broader public-sector mandate to provide accessible banking across urban, semi-urban and rural markets. The standalone Andhra Bank retail brand ended when its operations were absorbed by Union Bank of India.
Agricultural banking
Agricultural finance
Agricultural finance provided credit and related banking support to farmers and rural customers. The offering reflected the role of Indian public-sector banks in extending formal finance to agriculture and rural economic activity, including areas beyond the bank's original Andhra-focused base.
Corporate banking
Corporate and institutional banking
Corporate and institutional banking served companies, organisations and other non-retail customers through commercial accounts, lending and associated banking services. It complemented Andhra Bank's retail and agricultural activities and remained part of its full-service public-sector banking portfolio until the 2020 merger.
Internet banking
AB INFI-net
AB INFI-net was Andhra Bank's internet-banking facility, made available to customers connected to participating branch clusters. It represented the bank's effort to extend account and transaction services beyond the physical branch network and formed part of its broader technology-led banking programme.
Payments
ATM and debit-card services
The bank operated a large ATM network and provided debit-card services for cash access and payments. It also received recognition for promoting ATM-channel usage and for deploying banking technology in semi-urban and rural areas.
Digital payments
Online railway-ticket booking
Andhra Bank enabled eligible debit-card holders and internet-banking customers to book railway tickets through an IRCTC-linked gateway. The service connected the bank's payment infrastructure with a widely used national transportation platform.
Marketing campaigns
- Andhra Pradesh Bankers' Institute of Entrepreneurship Development
Andhra Pradesh, India
Andhra Bank joined the Andhra Pradesh government, NABARD, Canara Bank, Indian Bank, Indian Overseas Bank and State Bank of Hyderabad in supporting an institute intended to train unemployed young people and improve their practical and entrepreneurial skills.
- Gundugolanu village development programme
West Godavari district, Andhra Pradesh, India
Andhra Bank adopted Gundugolanu village, identified as the birthplace of founder Bhogaraju Pattabhi Sitaramayya, and planned support for health, sanitation, education and social-service infrastructure.
Brand decisions
2020
Complete merger into Union Bank of IndiaM&ABackground
The Union Cabinet approved the amalgamation of Andhra Bank and Corporation Bank with Union Bank of India on 4 March 2020.
Action taken
The transaction became effective on 1 April 2020, with Andhra Bank shareholders receiving Union Bank of India shares under the approved exchange arrangement.
Aftermath
Andhra Bank ceased to exist as a separate legal and operating entity, while its branches, customers and banking systems were integrated into Union Bank of India.
2019
Approve amalgamation with Union Bank of IndiaM&ABackground
The Government of India announced a wider consolidation of public-sector banks and proposed combining Andhra Bank and Corporation Bank with Union Bank of India.
Action taken
Andhra Bank's board approved the proposed amalgamation on 13 September 2019.
Aftermath
The Union Cabinet approved the transaction in March 2020, and the merger took effect on 1 April 2020.
Recent events
- 2021
Former Andhra Bank branches integrated into Union Bank systems[1]
M&A · Other
Union Bank of India completed the core-banking and data-migration work associated with integrating former Andhra Bank branches.
- 2020
Union Cabinet approves public-sector-bank amalgamation[1]
M&A · Regulation
The Union Cabinet approved the amalgamation of Andhra Bank and Corporation Bank into Union Bank of India on 4 March 2020.
- 2020
Andhra Bank ceases as a standalone bank after merger[1]
M&A
The amalgamation became effective on 1 April 2020, transferring Andhra Bank's business and customers into Union Bank of India.
- 2019
Government announces merger of Andhra Bank and Corporation Bank with Union Bank of India[1]
M&A
The Government of India announced the proposed amalgamation as part of a wider consolidation of public-sector banks. The plan was intended to create a larger Union Bank of India with the businesses and networks of Andhra Bank and Corporation Bank.
- 2019
Andhra Bank board approves proposed amalgamation[1]
M&A · Leadership change
Andhra Bank's board approved the proposed combination with Union Bank of India and Corporation Bank after the government's public-sector-bank consolidation announcement.
Sources2 sources
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