Indian Bank, Allahabad Bank to merge by March 31

New Delhi: State-owned Indian Bank expects to complete the merger with Allahabad Bank by the end of current fiscal, a top official said.

Last week, the government announced consolidation of 10 public sector banks into four mega state-owned lenders, including merger of Allahabad Bank with Indian Bank.

"We have to go to board first. There is a process to follow. In the next few months, boards of both banks should complete the process.

I expect that all the process should ideally be over by March 31," Indian Bank Managing Director Padmaja Chunduru said.

Indian Bank last week received a communication from Ministry of Finance that the Alternative Mechanism after consultation with Reserve Bank of India has cleared a proposal for the merger.