Executive Summary

Allahabad Bank is an India-based joint stock bank. It offers a range of deposit products, retail credit products and other credit products. Its deposit products include flexi fixed deposits, no-frills savings bank account, premium savings bank account, current plus deposit scheme, and Sishu mangal deposit scheme among others. The banks retail credit products include housing loan, car loan, educational loan, personal loan, furnishing loan, gold loan, bike loan, and housing loan for NRIs (Non residential Indians). Allahabad Banks other credit products include, kisan credit card, kisan shakti yojana, and AllBankExpo. The bank also offers a range of services including cash management, visa debit cum ATM card, depository services, bank assurance and mutual fund, real time gross settlement, gold card scheme for exporters, online payment, and government business, among others. The bank is headquartered in West Bengal, India.

The comprehensive SWOT profile of Allahabad Bank provides you an in-depth strategic SWOT analysis of the companys businesses and operations. The profile has been compiled by Global Data to bring to you a clear and an unbiased view of the companys key strengths and weaknesses and the potential opportunities and threats. The profile helps you formulate strategies that augment your business by enabling you to understand your partners, customers and competitors better.

Introduction of Allahabad Bank

Allahabad Bank (Alhd Bank) was founded on 24th April 1865 at historic city of Allahabad by a group of 7 Indians and 19 Europeans as a first Indian joint stock bank. On 19th July 1969, at the time of nationalisation, the Bank had 2500 branches. The Bank acquired United Industrial Bank Ltd in 1989. In 2002, the Bank went for Initial Public Offer of 1 bn and in 2005 came out with Follow on Public Offer of ` 1bn. The Bank has also initiated steps to branch out beyond the national domain and opened its first overseas branch in Hong Kong in 2007 and representative offices at Shenzhen, China. Allahabad Bank is one of the premier nationalized banks in India. It is also the oldest joint stock bank of India. It was incorporated by a group of Europeans at Allahabad on April 24, 1865. It was the time Indian economy had started shifting towards organized trade and business affairs. After some years in 1920, the P&O Bank brought Allahabad Bank and its headquarters at Kolkata. The Allahabad bank got an entirely new identity when it was nationalized in 1969 along with 13 other banks in India. Since then the Allahabad Bank had a smooth journey towards progress. Today it is one of the leading banks in India with a whooping business of over Rs.1, 00,000 crores. In 1920 the bank became a part of the P&O Banking Corporation which paid Rs 436 per share of the bank. By 1923 the bank had shifted its headquarters to Calcutta from Allahabad. In 1969 the government of India nationalized the bank which at that time had over 151 branches. The government diluted its stake to 71.60% by going in for an Initial Public Offer of 10 crores in October 2002 and further reduced the stake to 55.23% with a follow on IPO. By 2007 the banks turnover exceeded Rupees One Lakh Crores. Today the bank has operations even in Hong Kong where it opened its first overseas branch in 2007.Housing loans form a

major part of its retail lending.

History

19th Century-

On 24 April 1865, a group of Englishmen at Allahabad founded Allahabad Bank. By the end of 19th century it had branches at Jhansi, Kanpur, Lucknow, Bareilly, Nainital,Calcutta, and Delhi.

20th Century-

In the early 20th century, with the start of Swadeshi movement, Allahabad Bank witnessed a spurt in deposits. In 1920, P & O Banking Corporation acquired Allahabad Bank with a bid price of 436 (US$6.70) per share. In 1923 the bank moved its head office and the registered office to Calcutta for reasons of both operational convenience and business opportunities. Then in 1927 Chartered Bank of India, Australia and China acquired P&O Bank. However, Chartered Bank continued to operate Allahabad Bank as a separate entity. On 19 July 1969, the Government nationalised Allahabad Bank, together with 13 other banks. In October 1989, Allahabad Bank acquired United Industrial Bank, a Calcutta-based bank that had been established in 1940. Two years later, Allahabad Bank established AllBank Finance Ltd, a wholly ownedMerchant Banking subsidiary.

21st Century-

The government's ownership of Allahabad Bank shrank in October 2002 after the bank engaged in an Initial Public Offering (IPO) of 10 crore (US$1.5 million) of shares, each with a face value 10. The IPO reduced the Government's shareholding to 71.16%. Then in April 2005 the bank conducted a second public offering of 10 crore of shares, each with a face value 10 and selling at a premium of 72. This offering reduced the Government's ownership to 55.23%. In June 2006 the bank opened its first office outside India when it opened a representative office inShenzen, Mainland China. In February 2007, Allahabad Bank opened its first overseas branch, in Hong Kong. In March, the bank's business crossed the 1 million crore mark.

Our Vision and Mission

VisionTo put the Bank on a higher growth path by building a Strong Customer-base through Talent Management, induction of State-of-the-art Technology and through Structural Re-organization.

Mission To ensure anywhere and any time banking for the customer with latest state-of-theart technology and by developing effective customer centric relationship and to emerge as a world-class service provider through efficient utilization of Human Resources and product innovation.

Business Operations

Alhd Bank is mainly engaged in the treasury, wholesale, retail and other banking operations. The Bank primarily offers a gamut of deposits and credit products. The banks product portfolio encompasses of housing & car loan, education, gold loan schemes, KCC, CMS, depository services, financing to SMEs and exporters. Its international banking portfolio comprises of NRI deposit accounts, export finance, loan facility and other forex and remittance services.

Branches and BusinessAllahabad has adopted CBS (Core Banking Service) since 2006 and has developed 24 hours connectivity with its 2165 branches across the length and breath of the country. In 143 years of it existence the bank has come a long way by developing a wide grip over all the corners of India. At present the Allahabad Bank has 44 Zonal Offices 6 Staff Training Colleges and 3 Staff Training centers for imparting training centers in India. Apart from general branches, the bank has also come up with specialized branches, like Industrial Finance Branches, International Branches, Finance Branches, Recovery Branches, NRI Branches Specialized Personal Banking Branches, Specialized Savings Bank Branches, Quick Collection Service Branches, Trading Finance Branches and Service Branches in

many major cities of India. The businesses of the bank are thriving successfully. In the end of March 2007, the Allahabad Bank crosses a land mark of Rs.1, 00,000 crores. The bank's business also registered a 6.90% growth during April-Sept 2007, when its business increased up to Rs.1, 08,458 crores from Rs.1, 01,458 crores in merely 5 months. On Year-on-Year basis, the business of the bank has grown at a rate of 19.87%. The bank also registered an immense growth in total deposit record when its business went up to Rs.65,896 at end of September 2007 crores from Rs.54,006 crore in September 2006.

Products and Services

Deposit Products

Diamond Jubilee Deposit Scheme Rs. 5 Banking Gold Deposit Flexi-fix Deposit

Retail Credit Products

All Bank Housing Finance Scheme Personal Loan Scheme for Pensioners All Bank Property Loan All Bank Saral Loan Scheme All Bank Educational Loan Scheme Overdraft Facility in Savings Bank Account Personal Loan Scheme for Doctors/ Medical Practitioners Loan against NSC/ KVP All Bank Mobike Scheme

All Bank Rent Loan AllBank Gyan Dipika Scheme All Bank Car Finance Scheme AllBank Pilot Training Loan Scheme All Bank Furnishing Loan All Bank Gold Loan Scheme AllBank Reverse Mortgage Scheme All Bank Abhusan Scheme

Other Credit Products

Kisan Credit Card Kisan Shakti Yojana AllBank-Expo

Services

All Ayushman Bima Yojana Cash Management Services Depository Services Visa Cum Debit Card Services Real Time Gross Settlement National Electronic Funds Transfer Gold Card Scheme For Exporters Charter for MSME's Government Business Regional MSME care centers

Allahabad Bank is likely to persist with its conservative growth strategy

KOLKATA: Allahabad Bank is likely to persist with its conservative growth strategy that emphasises on bottomline growth rather than all-out balance sheet expansion. Like what it did over the past 14 months, the Kolkata-based bank will maintain its focus largely on high yielding advances and low cost deposits, at least for the time being.

The bank was following the strategy over the past one year or so under its erstwhile chief KR Kamath and the present management is all for pursuing the plan. Not surprisingly, as the strategy has paid rich dividends in trying times. The bank has just reported an eight fold jump in net profit for the quarter to September 30, 2009 over the correspondent period in 2008. Allahabad Bank's executive director JP Dua, who is now officiating as the de facto chief in the absence of a regular chairman and managing director told ET, "We will continue with the same strategy that we have been following for the past 14 months. During the period, we have consciously been focusing on high-yielding advances and low-cost deposits. During this time, all the important financial ratios like net interest margin and yield on advances have shown a positive trend."

"Nevertheless, Allahabad Bank is offering a special rebate on its various retail loan products till December 31. The period of special package to all new housing loans up to Rs 20 lakh has also been extended to December 31, 2009. Under this package, borrowers can get home loan up to Rs 5 lakh at 8.50 per cent a year and loans between Rs 5-20 lakh at 9.25 per cent per annum. These rates may be revised after the first three years of the loan tenure. "Allahabad Bank has adopted the conservative strategy under Mr Kamath, who is now at the helm of Punjab National Bank. I was part of the team which took the conservative approach. And the approach clicked. So, there is no question of diverting from the strategy." Total business of the bank stood at Rs 1.48 lakh crore at the end of September 2009 as against Rs 1.25 lakh crore a year back.

SWOT Analysis Of Allahabad Bank

1. Oldest Nationalised bank with over 2400 branches 2. National and International presence 3. Financial products for all categories of customers from rural to urban 4. Innovative schemes like Retail banking boutique and Strength Saral loans etc

1. Inadequate advertising as compared to leading banks 2. Compliance with government schemes 3. Limited number of ATMs and low customer Weakness relationship

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1. Initiative for self-employment amongst youth Opportunity 2. Internet Banking and other services

1. Economic crisis 2. Stringent measures by RBI Threats 3. Competition from other banks

CONSISTENT GROWTH ALL THE WAY

ALLAHABAD BANK'S BUSINESS CROSSES Rs. 2,74,115 CRORE 30.09.2012

1. Business touches Rs. 2,74,116 crore with 14.74 % YoY growth 2. CASA increases to 30.49% 3. Net Interest Margin (NIM) at 2.98 % 4. Book value per Share mounts to Rs. 208.05 5. Capital Adequacy Ratio at 12.16%

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Highlights of performance in Q2 of FY, 2012-13

Total Business of the Bank increased to Rs.2,74,116 crore as on 30.09.2012 as against Rs. 2,38,897 crore on 30.09.2011 showing a YoY growth of 14.74 %.

Deposits of the Bank increased to Rs. 1,61,957crore as on 30.09.2012 from Rs. 1,42,043crore as on 30.09.2011 and Rs. 1,59,593 crore as on 31.3.2012. Year-on-Year basis, Total Deposits grew by14.02 %.

Gross Credit was Rs. 1,12,159crore as on 30.09.2012 against Rs. 96,854 crore as on 30.09.2011 and Rs. 1,12,250 crore as on31.3.2012. Year-on-Year basis, the Gross Credit increased by 15.80%.

Operating Profit stood at Rs. 802.29 crore for quarter ending September, 2012 (HY FY'12-13: Rs. 1757.90 crore)

Net Profit stood at Rs. 234.20crore during the quarter ended September, 2012 (HY FY'12-13: Rs. 748.23 crore).

Credit Deposit Ratio stood at 69.25 % as on 30.09.2012. Gross NPA to Gross Advances was 2.95% as on 30.09.2012. Net NPA to Net Advances Ratiowas 2.10% as on 30.09.2012. Provision Coverage Ratio was 60.80%as on 30.09.2012. Net Interest Margin (NIM) was 2.80 % for the quarter ended 30.09.2012 and that for the Half Year ended September,2012 was 2.98%.

Capital Adequacy Ratio stoodat12.16%as on 30.09.2012

Shareholders' Value

Return on Asset (annualised) was 0.51 % in the Quarter ended 30.09.2012 (HY: 0.83 %)

Earning per Share stood at Rs. 4.68in the Quarter ended 30.09.2012. Book Value per Share increased to Rs. 208.05 as on 30.09.2012.

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New Initiatives

Bank has entered into a strategic partnership with Peerless Funds Management Company on 13.09.2012for selling and distribution of Peerless Mutual Fund through our branches.

The Bank has introduced a 3-in-1 account facility to the customers on 02.08.2012 wherein with aSavings/Current account, Demat Account is provided bythe Bank and Online Trading Services is provided by Aditya Birla Money Limited.

Bank has signed a MOU with Stock Holding Corporation of India (SHCIL) for providing e-stamping services. It has been launched in the state of Karnataka (Bangalore) from Basavangudi Branch on 5th July, 2012.

In an effort to improve recovery in Non Performing Assets, Allahabad Bank has entered into an Agreement with ASREC, its Joint Venture partner, on 08.08.2012.

The Bank has signed a MOU on 06.08.2012 at Vishakapatnam with Rastriya Ispat Nigam Limited (RINL) for providing Cash Management Services at 30 locations PAN India for a period of 3 years.

Collection facility to Madhya Pradesh Housing and Industrial Development Board has been started to improve CASA through Cash Management Service.

Bank has launched Rupay Card, to be given to the customers in rural areas. Bank has launched Pre-Paid Gift Cards in denominations of Rs. 500/- to Rs. 50,000/for customer's convenience.

Bank has also launched Inter Bank Mobile Payment Services (IMPS), a value added service of Mobile Banking.

During the quarter ended September, 2012, 356 Probationary Officers and Specialist Officers have joined the Bank.

During the Half-Year ending September 2012, 48 new Branches have been opened taking the total number of Branches of the Bank to 2564 of which Rural1051(41%), Semi-Urban-502 (20%), Urban-529 (21%) and Metropolitan-482 (18%).

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Retail Credit

Total outstanding under Retail Credit as on 30.09.2012 was Rs. 15,710.81 crore as against Rs.13,925.44 crore as on 30.09.2011 showing a YoY growth of 12.82 %.

Disbursement under Retail Credit grew to Rs. 1,779.01 crore during the Half Year ending September, 2012.

Apart from 60 Retail Banking Boutiques (RBB) operating across the country, Bank has 39 Centralised Retail Banking Boutiques (CRBB) at important centres. CRBBs disbursed Rs. 380.39 crore in the Half-Year ending September, 2012. Outstanding Loans in the CRBBs increased to Rs. 2,037.21 crore as on 30.09.2012 as against Rs. 1,576.22 crore last year (YoY Growth : 29.25 %).

Total disbursement under Housing Loan during the first half of 2012-13 surged to Rs. 506.21 crore as against Rs. 351.07 crore last year (YoY Growth : 44.19 %)

Education Loan has been disbursed to 7284 students aggregatingRs. 114.89 during the first half of 2012-13.

Total Outstanding in Auto Loan (Car+Mobike) increased to Rs. 804.74 crore as against Rs. 644.81 crore last year registering a YoY growth of 24.80 %.

During the Festive Season, Bank has announced special Festival Bonanza discounts on various Retail Lending Schemes, under which rebate up to 2.00% in interest rate has been offered under various schemes and up to 100% rebate in applicable processing fees has also been offered on certain schemes. This offer is available to the Bank's Customers up to 31.12.2012.

Social Banking

Priority Sector Credit grew to Rs. 36,686 crore as on 30.09.2012 as against Rs. 30,450 crore last year showing a YoY Growth of 20.48 %.

Agricultural Credit outstanding increased to Rs. 16,809 crore as on 30.09.2012 as against Rs.12,611 crore as on 30.09.2011.

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Bank's Credit to Micro and Small Enterprises (MSE) surged to Rs. 15,215crore as on 30.09.2012 as compared to Rs. 13,591crore last year showing a YoY Growth of 11.95%.

Bank has opened 3 more Rural Self Employment Training Institutes (RSETIs) during the present FY 2012-13taking the total to 21andcovering all the lead districts of our Bank in Uttar Pradesh, Jharkhand, West Bengal and Madhya Pradesh.

Technology

Instant ATM-cum-Debit Card facility is available to customersof all Branches. Bank has issued more than 14.31 lac ATM-cum-Debit Cards to its customers.

All the Branches and Extension counters of Bank's sponsored Regional Rural Banks have been brought under the ambit of CBS.

Online Payment Gateway Services are running successfully at the merchant websites through our Internet Banking channel. More than 1900 Merchants are added to our gateway through M/s Bill Desk and M/s Tech Process.

Central Processing Hub (CPH) is in operation in Bangalore, Lucknow, Hyderabad, Bhopal, Agra, Varanasi, Bhubaneswar, Chennai, Kanpur, Jaipur, Allahabad and Patna Service branches for handling Inward and Outward Clearing transactions of all branches.

Video conferencing facilities have been provided to all the Lead District Managers and SLBC Centre (Ranchi) for the state of Jharkhand.

Future Plans

The Bank intends to open 250 Branches during the Financial Year 2012-13; 153 numbers of Authorisations for opening new branches are in hand.

Bank has already received the permission for opening overseas Branch at Dhaka(Bangladesh) for which necessary work is in progress.
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Bank is in the process of introducing RuPay Kisan Credit Card Scheme with Smart Card enabled payment system through ATMs & PoS terminals.

Board Of Directors

Name
Shubhalakshmi Panse Arun Tiwari A Udgata Dinesh Dubey Sudip Chaudhuri A P V N Sarma Yogeshwar Prasad Singh T R Chawla Shashank Saksena D N Singh

Designation
Chairman & Managing Director Executive Director Nominee Director Part Time Non Official Director Shareholder Director Shareholder Director Employee Director Executive Director Nominee Director Part Time Non Official Director

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Nirmal Kumar Bari Ashok Vij Ajay Shukla

Employee Director Shareholder Director Part Time Non Official Director

Executives

Name AB Bhattacharjee MM Neyogi RK Jain SK Widhani SK Srivastava Satish Kumar Kalra Dibyendu Chakraborty

Designation General Manager Field General Manager Field General Manager General Manager General Manager General Manager Field General Manager

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Vinod Kumar Chawla RP Singh VS Krishna Kumar PS Bhatia BK Srivastav GK Goswami AK Chatterjee Binod Kumar

General Manager General Manager General Manager General Manager General Manager General Manager General Manager General Manager

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Auditors

Statutory Central AuditorsTeam of Statutory Central Auditors for 2012-2013 Audit Sr.No. 1. Name & Address of The Audit Firm M/s M.C.Jain & Co, Chartered Accountants, 33, Brabourne Road, 3rd Floor, Kolkata-700001 (W.B.) 2. M/s N.K. Bhargava & Co, Chartered Accountants C-31, 1st Floor, Acharya Niketan, Opp. Pocket-I, Mayur Vihar, Phase-I, New Delhi-110091. 3. M/s Raghu Nath Rai & Co, Chartered Accountants, 9, Mathura Road, Jangpura B, New Delhi-110014. 4. M/s Khandelwal Kakani & Co, Chartered Accountants, 8, Johari Palace First Floor, 51 M. G. Road, Indore-452001(M.P.) 5. M/s Batliboi & Purohit, Chartered Accountants, National Insurance Building, 204 Dr. Dadabhoy Naoraji, Fort, Mumbai-400001, (Maharastra) 6. M/s Sarath & Associates, Chartered Accountants, Plot No-61, Nagarjuna Hills, Nagarjuna Circle, Punjagutta, Hyderabad500082(A.P.)

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Accolades & Achievements

The Honble Union Finance Minister visited the Banks Head Office on 11th November, 2005 and made a detailed discussion with the Board of Directors and the Top Management Team of the Bank. The Finance Minister expressed his happiness over the all round growth of the Bank, its expanding visibility and brand equity.

Market perception of Allahabad Bank enhanced in recent times as apparent from better rratings by various financial analysts,

Business Standard : Banking Annual, October 2004

Allahabad Bank ranked 4th among 57 Indian banks (improved from 43rd position), Business Today : Indias Best Banks, January 2005

Allahabad Bank ranked 27th among 59 Indian Banks (improved from 43rd position) and 7th among Nationalized Banks,

The Banker : The Top One Thousand World Banks, July 2005

Allahabad Bank moved up by 169 notches to rank 681st among top 1,000 world banks, During the FY the Bank received an award of recognition from Honble Union FinanceMinister for excellence in lending to agriculture sector. Business Today : Indias Best Banks, February 2006

Allahabad Bank ranked 14th among 60 Indian Banks (improved from 27th position last year and 43rd position in 2003-04) and 6th among Nationalized Banks

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PRESS RELEASE

Allahabad Bank to offload NPAs worth Rs 540 cr

HYDERABAD, JAN 21: Allahabad Bank will offload bad loans worth Rs 540 crore. The deal is on the table and the process will be completed by next month, Subhalakshmi Panse, Chairman and Managing Director, Allahabad Bank, told newspersons here on Tuesday. Allahabad Bank, which saw a rise in non-performing assets (NPA) in the quarter ended September 30, has also drawn up a strategy for better NPA management. We have put in place a three-pronged strategy by creating a separate vertical, doubling the recovery targets for the staff and offloading some portion of NPAs to ARC (asset reconstruction company), Panse said. The net interest margin for the current financial year will likely be from 2.85 per cent to 2.9 per cent, she said. Efforts were also on to increase non-interest income through loan syndication, which the bank had stopped recently. The current accounts and savings accounts share in our deposits will also go up to about 31.5 per cent from current 30 per cent by this year-end and to 34 per cent by March 2014, she said. Allahabad Banks scrip declined by 1.24 per cent at Rs 182.60 on the Bombay Stock Exchange on Tuesday.

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Conclusion

Its a public sector bank ,so it has to abide by the plans that the goal makes and help the Government achieving its targets. Its set criterion of giving 25% of the total assets of the bank to the priority sector lending to make industry and agriculture robust. The impact of the GLOBAL FINANCIAL CRISES OF 2008, more number of defaulters unable to pay their loans in various categories. The increase in the NPA of the bank thus resulted in the decrease of the various profitability ratios of the bank. Though ,the Bank`s quality services have enhanced, introdeuction of more services being rendered to the customers, thus robusts the faith of the bank in customers and hence affects the capital market.

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