Andhra Bank slips into history

Hyderabad: Andhra Bank, which was founded in 1923 in Machilipatnam in Andhra Pradesh, has slipped into history when it was merged with Union Bank of India on Wednesday. Founded by Bhogaraju Pattabhi Sitaramayya, the bank expanded its operations to over 25 states and three union territories since its inception. It now has been merged with Union Bank of India as part of the central government's plan to consolidate public sector banks.

On Wednesday, Union Bank of India said it has become the country's fifth largest public sector lender after amalgamating Andhra Bank and Corporation Bank into itself.

The merger, effective from Wednesday, will harness rich individual legacies and forge a dynamic shared future, it said in a release. "As of today, all employees, customers and branches of Andhra Bank and Corporation Bank will become part of the Union Bank of India family," it added.

The amalgamation will also strengthen the bank's footprint in southern India with considerable market share in this region, the Mumbai-headquartered lender said. The amalgamation is also expected to generate cost and revenue synergies to the tune of Rs 2,500 crore over the next three years. "We now offer our customers a much wider access to branches, ATM, digital services and credit facilities and are now in a much stronger position as a bank," Union Bank Of India MD and CEO Rajkiran Rai G said. The bank offers a wide array of products and services to more than 120 million customers across its over 9,500 branches and more than 13,500 ATMs. Combined, they are India's fourth largest banking network and fifth largest public sector bank.