For its successful merger with Allahabad Bank, Indian Bank was covered in Harvard Business Publishing. Harvard Business Publishing has acknowledged and published a case study on the first-of-its-kind seamless merger of equal-sized Indian banks, with an emphasis on the country’s southern and eastern regions.
This unique case study titled ‘Merger of Equals: The Amalgamation Story of Indian Bank and Allahabad Bank,’ curated by the Indian School of Business (ISB) encapsulates the remarkable journey that Indian Bank set out to complete the merger process effectively.
‘Merger of Equals’ recounts the whole integration process, which included Indian Bank’s meticulous strategic planning and execution, with a particular focus on the problems faced and solutions found. Indian Bank has become a pan-India lender, having a major presence in the country’s southern, northern, and eastern regions as a result of the merger.
According to a press release from Indian Bank, the ‘Project Sangam’ merger comprised a three-pronged approach on product/process, employee-customer communication, and IT integration. The merger’s synergy benefits have begun to show in terms of cost savings, as indicated by the bank’s declining cost-to-income ratio (40.86 percent for QE June 2021). Through vendor rationalization, tighter AMC pricing, and enhanced operational efficiencies, the convergence of IT processes and systems has produced economies of scale.
“We are privileged to witness our amalgamation process featured in the leading publication of one of the world’s most prestigious institutions,” Padmaja Chunduru, MD and CEO of Indian Bank, stated. This is a testament to the whole Indian Bank team’s unwavering commitment and sincerity in achieving this strategic merger. We’d like to take this opportunity to congratulate ISB and Harvard Business Publishing for recognizing Indian Bank’s efforts.
The merger has provided Indian Bank with a unique opportunity to establish synergies between two banks with extensive histories. We believe that by reading this case study, readers will gain a better understanding of the whole picture of this outstanding merger.”
The two banks successfully merged while tackling the problems of human capital, varied cultures, and geographic locations.
Faculty and trainees from various business schools and organizations throughout the world can use this case study of an Indian bank’s merger procedure.