Indian Bank has featured in the Harvard Business Publishing for its effective merger with Allahabad Bank. The 1st-of-its-sort seamless merger of equal-sized Indian banks, with prominence in the southern and eastern regions of the nation, has been effectively recognised and published by Harvard Business Publishing as a case study.
Curated by Indian School of Business (ISB), this one of a kind case study titled ‘Merger of Equals: The Amalgamation Story of Indian Bank and Allahabad Bank’ encapsulates the exceptional journey that Indian Bank embarked on to effectively execute the amalgamation procedure.
‘Merger of Equals’ narrates the complete integration procedure, which comprised rigorous strategic organizing and execution by Indian Bank, with unique focus on the challenges faced and their answers discovered. The merger has made Indian Bank a pan-India lender, with substantial presence in southern, northern and eastern components of the nation.
A release by Indian Bank stated the amalgamation exercising ‘Project Sangam’ entailed a 3-pronged strategy on solution / procedure, employee-consumer communication and IT integration. The synergy rewards of the merger have began reflecting in terms of price efficiencies as evidenced in the decline in price-to-revenue ratio of the bank (40.86% for QE June 2021). The integration of IT operations and systems have also resulted in economies of scale by means of vendor rationalisation, finer pricing on AMCs and enhanced operational efficiencies.
Padmaja Chunduru, MD and CEO of Indian Bank, stated, “We are privileged to witness our amalgamation process featured in the leading publication of one of the most prestigious institutions of the world. This is a testimony to the constant dedication and sincerity of the entire Indian Bank team which helped achieve this strategic merger. We would like to take this opportunity to thank ISB and Harvard Business Publishing for acknowledging the efforts of Indian Bank.
The merger has given Indian Bank a distinct experience of building synergies between two banks with vast legacies. We hope this case study will help readers understand the big picture of this exemplary merger.”
The two banks merged effectively though addressing the challenges of human capital, varied cultures and geographic places.
This case study of Indian Bank’s merger procedure can be made use of by faculty and trainers from many organization schools and organisations, globally.