Andhra Bank was a medium-sized public sector bank (PSB) of

India India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the so ...

, with a network of 2885 branches, 4 extension counters, 38 satellite offices and 3798

automated teller machines An automated teller machine (ATM) or cash machine (in British English) is an electronic telecommunications device that enables customers of financial institutions to perform financial transactions, such as cash withdrawals, deposits, fun ...

(ATMs) as of 31 March 2019. During 2011–12, the bank entered the states of

Tripura Tripura (, Bengali: ) is a state in Northeast India. The third-smallest state in the country, it covers ; and the seventh-least populous state with a population of 36.71 lakh ( 3.67 million). It is bordered by Assam and Mizoram to the east a ...

and

Himachal Pradesh Himachal Pradesh (; ; "Snow-laden Mountain Province") is a state in the northern part of India. Situated in the Western Himalayas, it is one of the thirteen mountain states and is characterized by an extreme landscape featuring several peaks ...

. It operated in 25 states and three union territories. It had its headquarters in

Hyderabad Hyderabad ( ; , ) is the capital and largest city of the Indian state of Telangana and the ''de jure'' capital of Andhra Pradesh. It occupies on the Deccan Plateau along the banks of the Musi River (India), Musi River, in the northern part ...

Telangana Telangana (; , ) is a States and union territories of India, state in India situated on the south-central stretch of the Indian subcontinent, Indian peninsula on the high Deccan Plateau. It is the List of states and union territories of India b ...

, India. Along with

Corporation Bank Corporation Bank was a public-sector banking company headquartered in Mangalore, India. The bank had a pan-Indian presence. Presently, the bank has a network of 2,432 fully automated CBS branches, 3,040 ATMs, and 4,724 branchless banking units ...

, Andhra Bank was merged with

Union Bank of India Union Bank of India, commonly referred to as Union Bank or UBI, is an Indian public sector bank headquartered in Mumbai. It has 120+ million customers and a total business of US$106 billion. After the amalgamation with Corporation Bank and An ...

in April 2020. The

government of India The Government of India (ISO: ; often abbreviated as GoI), known as the Union Government or Central Government but often simply as the Centre, is the national government of the Republic of India, a federal democracy located in South Asia, c ...

owned 90.85% of its share capital as on 31 March 2019. The state owned

Life Insurance Corporation Life Insurance Corporation of India (LIC) is an Indian central public sector undertaking headquartered in Mumbai, Maharashtra, India. It is under the ownership of Ministry of Finance, Government of India. The Life Insurance Corporation of In ...

held 7.80% of the shares. The bank had done a total business of and has earned a net profit of for the financial year 2015–16.

History

Bhogaraju Pattabhi Sitaramayya Bhogaraju Pattabhi Sitaramayya (24 November 1880 – 17 December 1959) was an Indian independence activist and political leader in the state of Andhra Pradesh. He was also the first governor (1 November 1956 – 13 June 1957) of Madhya Pradesh. ...

founded Andhra Bank in 1923 in

Machilipatnam Machilipatnam (), also known as Masulipatnam and Bandar, is a city in Krishna district of the Indian state of Andhra Pradesh. It is a municipal corporation and the administrative headquarters of Krishna district. It is also the Tehsil, mandal he ...

Madras Presidency The Madras Presidency, or the Presidency of Fort St. George, also known as Madras Province, was an administrative subdivision (presidency) of British India. At its greatest extent, the presidency included most of southern India, including the ...

(present-day

Andhra Pradesh Andhra Pradesh (, abbr. AP) is a state in the south-eastern coastal region of India. It is the seventh-largest state by area covering an area of and tenth-most populous state with 49,386,799 inhabitants. It is bordered by Telangana to the ...

). Raja Yarlagadda Sivarama Prasad was the individual who committed the financial resources for starting the institution. The bank was registered on 20 November 1923 and commenced business on 28 November 1923 with a paid up capital of and an authorised capital of . In 1956, linguistic division of States was promulgated and Hyderabad was made the capital of Andhra Pradesh. The registered office of the bank was subsequently shifted to Andhra Bank Buildings, Sultan Bazar, Hyderabad. In the second phase of nationalisation of commercial banks commenced in April 1980, the bank became a wholly Government-owned. In 1964, the bank merged with Bharat Lakshmi Bank and further consolidated its position in Andhra Pradesh.Bhogaraju Pattabhi Sitaramayya had founded Bharat Lakshmi Bank in 1920 at Bezawada. At the time of the take-over Bharat Lakshmi Bank had 16 branches, including one each in Delhi and New Delhi.

IndiaFirst Life Insurance Company IndiaFirst Life Insurance Company is a joint venture of India's public sector banks (Bank of Baroda (. The company has paid-up share capital of 663 crore. It was incorporated in November 2009 and is headquartered in Mumbai. It recorded more ...

is a life insurance company in India. It is a joint venture between two of India's public sector banks –

Bank of Baroda Bank of Baroda (BOB or BoB) is an Indian public sector bank headquartered in Vadodara, Gujarat. It is the second largest public sector bank in India after State Bank of India, with 132 million customers, a total business of US$218 billion, a ...

(44%) and Andhra Bank (30%), and UK's financial and investment company Legal & General (26%). It was incorporated in November 2009. It has its headquarters in Mumbai. India First Life made more than in turnover in just four and half months since the insurance company became operational. India First Life insurance company is headquartered in Mumbai. India First is the first life insurance company to be recommended for ISO certification within 7 months of inception. On 30 August 2019,

Finance Minister A finance minister is an executive or cabinet position in charge of one or more of government finances, economic policy and financial regulation. A finance minister's portfolio has a large variety of names around the world, such as "treasury", " ...

Nirmala Sitharaman Nirmala Sitharaman (born 18 August 1959) is an Indian economist and politician serving as the Minister of Finance and Corporate Affairs of India since 2019. She is a member of the Rajya Sabha, upper house of the Indian Parliament, since 2014. S ...

announced that Andhra Bank and

would be merged into

. The proposed merger would make Union Bank of India the fifth largest public sector bank in the country with assets of and 9,609 branches. The Board of Directors of Andhra Bank approved the merger on 13 September. The

Union Cabinet The Union Council of Ministers Article 58 of the ''Constitution of India'' is the principal executive organ of the Government of India, which is responsible for being the senior decision making body of the executive branch. It is chaired by t ...

approved the merger on 4 March, and it was completed on 1 April 2020.

Products and services

Andhra Bank introduced Internet Banking Facility (AB INFI-net) to all customers of cluster linked branches. Rail Ticket Booking Facility is made available to all debit card holders as well as to internet banking customers through

IRCTC Indian Railway Catering and Tourism Corporation (IRCTC) is an Indian public sector undertaking that provides ticketing, catering, and tourism services for the Indian Railways. It was initially wholly owned by the Government of India and operated ...

Website through a separate gateway. Corporate Website is available in English, Hindi and Telugu Languages communicating Bank's image and information. Bank has been given 'BEST BANK AWARD' a banking technology award by IDRBT,

for extensive use of IT in Semi Urban and Rural Areas on 2 September 2006. IBA Jointly with TFCI has conferred the Joint Runner-up Award to the Bank in the ''Best Payments initiative'' category in recognition of outstanding achievement of the Bank in promoting ATM Channel.

International expansion

Andhra Bank opened a representative office in Dubai in May 2006 and another at Jersey City, New Jersey, in June 2009. In 2010 Malaysia awarded a commercial banking license to a locally incorporated bank to be jointly owned by

Indian Overseas Bank Indian Overseas Bank (IOB) is an Indian public sector bank based in Chennai. It has about 3,214 domestic branches, about 4 foreign branches and representative office. Founded in February 1937 by M. Ct. M. Chidambaram Chettyar with twin object ...

and Andhra Bank. The new bank, India International Bank (Malaysia), is based in Kuala Lumpur. Andhra Bank will hold a 25% stake in the joint-venture. Bank of Baroda will own 40% and IOB the remaining 35%. Andhra Bank entered MoU with Bank of Baroda and Legal & General Group of UK to form a joint venture life insurance company

. The shareholders' agreement has already been signed and necessary formalities are being completed for setting up of the company. The JV Company is already incorporated in June'08 and is in the process of filing for approvals from IRDA etc. IndiaFirst has commenced operations.

Community involvement

Andhra Bank, along with A P State Government, NABARD, Canara Bank, Indian Bank, IOB and SBH sponsored the Andhra Pradesh Banker's Institute of Entrepreneurship Development, which will offer training to unemployed youth for improving their skills in Andhra Pradesh. Andhra Bank adopted Gundugolanu village, West Godavari District, Andhra Pradesh – the birthplace of its founder, Dr.

. A comprehensive budget with an outlay of was finalised for improving health, sanitation, education and social service facilities in the village.

Notes

References

External links

Draft Red Herring Prospectus of Andhra Bank filed with SEBI

Andhra Bank Press release-March '15
{{Banking in India Defunct banks of India Banks established in 1923 Banks disestablished in 2020 Companies formerly listed on the Bombay Stock Exchange Companies nationalised by the Government of India Companies based in Hyderabad, India Indian companies disestablished in 2020 Indian companies established in 1923 Companies listed on the National Stock Exchange of India Companies listed on the Bombay Stock Exchange