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Indian Bank is an Indian public sector bank, established in 1907 and headquartered in
Chennai Chennai (, ), formerly known as Madras ( the official name until 1996), is the capital city of Tamil Nadu, the southernmost Indian state. The largest city of the state in area and population, Chennai is located on the Coromandel Coast of th ...
. It serves over 100 million customers with 39,734 employees, 5,721 branches with 5,428 ATMs and Cash deposit machines. Total business of the bank has touched as on 31 March 2022. The bank's Information systems and security processes are certified to meet ISO27001:2013 standard. It has overseas branches in
Colombo Colombo ( ; si, කොළඹ, translit=Koḷam̆ba, ; ta, கொழும்பு, translit=Koḻumpu, ) is the executive and judicial capital and largest city of Sri Lanka by population. According to the Brookings Institution, Colombo me ...
and
Singapore Singapore (), officially the Republic of Singapore, is a sovereign island country and city-state in maritime Southeast Asia. It lies about one degree of latitude () north of the equator, off the southern tip of the Malay Peninsula, borde ...
including Foreign Currency Banking Units at
Colombo Colombo ( ; si, කොළඹ, translit=Koḷam̆ba, ; ta, கொழும்பு, translit=Koḻumpu, ) is the executive and judicial capital and largest city of Sri Lanka by population. According to the Brookings Institution, Colombo me ...
and
Jaffna Jaffna (, ) is the capital city of the Northern Province of Sri Lanka. It is the administrative headquarters of the Jaffna District located on a peninsula of the same name. With a population of 88,138 in 2012, Jaffna is Sri Lanka's 12th most ...
. It has 227 overseas correspondent banks in 75 countries. Since 1978, 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 ...
has owned the bank. As per the announcement made by the Indian Finance Minister
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 ...
on 30 August 2019,
Allahabad Bank Allahabad Bank was an Indian nationalised bank with its headquarters in Kolkata, India. Founded in Allahabad in 1865 and nationalized by the government of India in 1969, the bank provided banking and financial services for 155 years until it wa ...
merged from 1 April 2020, making Indian Bank now the seventh largest bank in the country.


History


Early formation and expansion

In the last quarter of 1906,
Madras Chennai (, ), formerly known as Madras ( the official name until 1996), is the capital city of Tamil Nadu, the southernmost Indian state. The largest city of the state in area and population, Chennai is located on the Coromandel Coast of th ...
(now Chennai) was hit by the worst financial crisis the city was ever to suffer. Of the three best-known British commercial names in 19th-century Madras, one crashed; a second had to be resurrected by a distress sale; and the third had to be bailed out by a benevolent benefactor.
Arbuthnot & Co Arbuthnot & Co was a mercantile bank, based in Madras, India. It had been founded as Francis Latour & Co in the late 18th century and then became Arbuthnot De Monte & Co. It failed spectacularly on 22 October 1906. In the last quarter of 1906, Ma ...
, which failed, was considered the soundest of the three. Parry's (now
EID Parry East India Distilleries (EID) Parry Limited is an Indian public company headquartered in Chennai, Tamil Nadu that has been in business for more than 225 years. It has many firsts to its credit, including the manufacturing of fertilizers (1906 ...
), may have been the earliest of them and Binny and Co.'s founders may have had the oldest associations with Madras, but it was Arbuthnot, established in 1810s, that was the city's strongest commercial organisation in the 19th Century. A key figure in the bankruptcy case for Arbuthnot's was the Madras lawyer,
V. Krishnaswamy Iyer Venkatarama Iyer Krishnaswamy Iyer CSI (15 June 1863 – 28 December 1911) was an Indian lawyer and High Court judge of Madras. He was involved in the prosecution of a partner of the British banking Company Arbuthnot & Co after the bank crashed ...
who founded the Indian bank which was an offshoot of nationalistic fervour and the Swadeshi movement, when the then British Arbuthnot Bank collapsed and the Indian Bank emerged. Mr V. Krishnaswamy Iyer solicited the support of the Nagarathar Chettiars authored by Mr. Ramasamy Chettiar, who was Annamalai Chettiar's elder brother. Sri V. Krishnaswamy Iyer and Mr. Ramasamy Chettiar were one of the first directors of Indian Bank. Later on in 1915, Mr. Annamalai Chettiar was inducted into the board of the Indian Bank. It commenced operations on 15 August 1907 with its head office in Parry's Building, Parry Corner, Madras. In 1932 IB opened a branch in
Colombo Colombo ( ; si, කොළඹ, translit=Koḷam̆ba, ; ta, கொழும்பு, translit=Koḻumpu, ) is the executive and judicial capital and largest city of Sri Lanka by population. According to the Brookings Institution, Colombo me ...
. It opened its second branch in
Ceylon Sri Lanka (, ; si, ශ්‍රී ලංකා, Śrī Laṅkā, translit-std=ISO (); ta, இலங்கை, Ilaṅkai, translit-std=ISO ()), formerly known as Ceylon and officially the Democratic Socialist Republic of Sri Lanka, is an ...
in 1935 at
Jaffna Jaffna (, ) is the capital city of the Northern Province of Sri Lanka. It is the administrative headquarters of the Jaffna District located on a peninsula of the same name. With a population of 88,138 in 2012, Jaffna is Sri Lanka's 12th most ...
, but closed it in 1939. IB next opened a branch in
Rangoon Yangon ( my, ရန်ကုန်; ; ), formerly spelled as Rangoon, is the capital of the Yangon Region and the largest city of Myanmar (also known as Burma). Yangon served as the capital of Myanmar until 2006, when the military government ...
,
Burma Myanmar, ; UK pronunciations: US pronunciations incl. . Note: Wikipedia's IPA conventions require indicating /r/ even in British English although only some British English speakers pronounce r at the end of syllables. As John Wells explai ...
, in late 1940s. Then in late 1941 IB opened branches in Singapore, Kuala Lumpur,
Ipoh , image_map = , map_caption = Location of Ipoh in Perak , pushpin_map = #Malaysia#Asia#Earth , pushpin_mapsize = 275px , pushpin_map_caption = Ipoh in Malaysia , coordinates ...
, and
Penang Penang ( ms, Pulau Pinang, is a Malaysian state located on the northwest coast of Peninsular Malaysia, by the Malacca Strait. It has two parts: Penang Island, where the capital city, George Town, is located, and Seberang Perai on the Malay ...
. The exigencies of war forced IB to close its Singapore and Malayan branches with months. The closing of the Singapore branch resulted in little loss to IB; the loss of the branches in Malaya was much more costly. World War II resulted in further financial problems for IB and it was forced in 1942 to close a number of its branches in India, and also its branch in Colombo.Kumar (2008), pp. 38–9.


Post Independence of India

After the war, in 1947, it reopened its branch in Colombo. Indian Bank also reopened its branches in Burma, Malayan and Singapore, the last in 1962. The Burmese government nationalised all foreign banks, including Indian Bank's branch, in 1963. The 1960s saw IB expand domestically as it acquired Rayalaseema Bank (est. 1939),
Mannargudi Mannargudi () is a town in Thiruvarur district in the Indian state of Tamil Nadu. It is the headquarters of the Mannargudi taluk. The town is located at a distance of from the district headquarters Thiruvarur, 36 km from Kumbakonam, 40 km fro ...
Bank (est. 1932), Bank of Alagapuri, Salem Bank (est. 1925), and Trichy United Bank. Trichy United was the result of the 1965 merger of Woraiyur Commercial Bank (est. 1948), the Palakkarai Bank, and the Tennur Bank (est. 3 March 1947). These were all small banks with the result that all the acquisitions added only about 38 branches to IB's network. Trichy United had five branches and its acquisition in 1967 brought the number of IB branches up to 210. Then on 19 July 1969 the Government of India nationalised 14 top banks, including Indian Bank. One consequence of the nationalisation was that the Malaysian branches of nationalised Indian banks were forbidden to continue to operate as branches of the parent. At the time, Indian Bank had three branches, and
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
United Commercial Bank United Commercial Bank (Chinese: 聯合銀行) was an overseas Chinese bank in the United States, based in San Francisco, California. It was a subsidiary of UCBH Holdings. Founded in 1974 as United Federal Savings and Loan Association, it cha ...
had eight between them. In 1973 the three established
United Asian Bank United may refer to: Places * United, Pennsylvania, an unincorporated community * United, West Virginia, an unincorporated community Arts and entertainment Films * ''United'' (2003 film), a Norwegian film * ''United'' (2011 film), a BBC Two fi ...
Berhad to amalgamate and take over their Malaysian operations. Post-nationalization, Indian Bank was left with only two foreign branches, one in Colombo and the other in Singapore. International expansion resumed in 1978 with IB becoming a technical adviser to
PT Bank Rama PT, Pt, or pt may refer to: Arts and entertainment * ''P.T.'' (video game), acronym for ''Playable Teaser'', a short video game released to promote the cancelled video game ''Silent Hills'' * Porcupine Tree, a British progressive rock group ...
in Indonesia, the result of the merger of
PT Bank Masyarakat PT, Pt, or pt may refer to: Arts and entertainment * ''P.T.'' (video game), acronym for ''Playable Teaser'', a short video game released to promote the cancelled video game ''Silent Hills'' * Porcupine Tree, a British progressive rock group ...
and PT Bank Ramayana. Two years later, IB,
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 ...
, and
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 A ...
established IUB International Finance, a licensed deposit taker in Hong Kong. Each of the three banks took an equal share in the joint venture; IB's Chairman became the first Chairman of IUB International Finance.Kumar (2008), p. 42. In May 1980s, IB also opened a foreign currency unit at its branch in Colombo. In 1981 IB set up its first
Regional Rural Bank Regional Rural Banks (RRBs) are government owned scheduled commercial banks of India that operate at regional level in different states of India. These banks are under the ownership of Ministry of Finance , Government of India. They were creat ...
, Sri Venkateswara Grameena Bank, in
Chittoor Chittoor is a city and district headquarters in Chittoor district of the Indian state of Andhra Pradesh. It is also the mandal and divisional headquarters of Chittoor mandal and Chittoor revenue division, respectively. The city has a popul ...
.


Post nationalisation

In 1983, ethnic sectarian violence in the form of anti-Tamil riots resulted in the burning of
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 ...
's branch in Colombo. Indian Bank, which may have had stronger ties to the Sinhalese population, escaped unscathed. In 1990, Indian Bank rescued Bank of
Tanjore Thanjavur (), also Tanjore, Pletcher 2010, p. 195 is a city in the Indian state of Tamil Nadu. Thanjavur is the 11th biggest city in Tamil Nadu. Thanjavur is an important center of South Indian religion, art, and architecture. Most of the Gr ...
(Bank of Thanjavur; est. 1901), with its 157 branches, based in
Tamil Nadu Tamil Nadu (; , TN) is a States and union territories of India, state in southern India. It is the List of states and union territories of India by area, tenth largest Indian state by area and the List of states and union territories of India ...
. A multi-crore scam was exposed in 1992, when then chairman M. Gopalakrishnan lent 13 billion to small corporates and exporters from the south, which the borrowers never repaid.
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 ...
bought out its partners in IUB International Finance in Hong Kong in 1998. Apparently this was a response to regulatory changes following Hong Kong's reversion to Chinese control. IUB became Bank of Baroda (Hong Kong), a restricted licence bank. In June 2015, business of the bank crossed the Milestone Target of .


Amalgamation

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
Allahabad Bank Allahabad Bank was an Indian nationalised bank with its headquarters in Kolkata, India. Founded in Allahabad in 1865 and nationalized by the government of India in 1969, the bank provided banking and financial services for 155 years until it wa ...
would be merged with Indian bank. The proposed merger would create the seventh largest public sector bank in the country with assets of . The Union Cabinet approved the merger on 4 March 2020. Indian Bank assumed control of Allahabad Bank on 1 April 2020. Key Milestones 1907- The Bank was incorporated on 5 March 1907 under the Indian Companies Act, 1882 as "Indian Bank Limited" and commenced operations on 15 August 1907. 1932 - The Bank opened its Colombo branch. 1941 - The Bank opened its Singapore branch 1962 - The Bank acquired the Royalaseema Bank, the Bank of Alagapuri, the Salem Bank, the Mannargudi Bank and the Trichy United Bank 1969 - The Bank was nationalized. It was appointed as the lead bank for nine districts in the States of Tamil Nadu, Andhra Pradesh and Kerala and the Union Territory of Pondicherry. 1970 - The Head Office of the Bank was shifted to its own building 1981 - The first regional rural bank sponsored by the Bank, Sri Venkateswara Grameena Bank, was founded 1989 - Indbank Merchant Banking Services was incorporated as a subsidiary of the Bank 1990; Bank of Thanjavur Limited (with 157 branches) was amalgamated 1991 - Ind Bank Housing Limited was incorporated as a subsidiary 1994 - Indfund Management Limited was established to manage the operations of Indian Bank Mutual Fund 2006-07 - The Bank entered into a strategic alliance with Oriental Bank of Commerce and Corporation Bank 2012 - Scheme of Amalgamation of M/s. lndfund Management Limited, a wholly owned subsidiary of the Bank with Indian Bank, Indian Bank. 2020 - On 1 April 2020 Indian bank and Allahabad bank merged. The oldest Joint Stock Bank in the country, Allahabad Bank was founded on 24 April 1865 by a group of Europeans at Allahabad, at a juncture when organized industries, trade and banking were taking shape in India. Thus, the history of the bank now spreads over three centuries.


See also

*
Banking in India Modern banking in India originated in the mid of 18th century. Among the first banks were the Bank of Hindustan, which was established in 1770 and liquidated in 1829–32; and the General Bank of India, established in 1786 but failed in 1791. ...
*
List of banks in India This is the list of banks which are listed as Scheduled Banks (India) under second schedule of RBI Act, 1934. Commercial banks Public Sector Banks (PSBs) There are 12 public sector banks as of 15 November 2021 Private-sector banks A ...
*
Reserve Bank of India The Reserve Bank of India, chiefly known as RBI, is India's central bank and regulatory body responsible for regulation of the Indian banking system. It is under the ownership of Ministry of Finance, Government of India. It is responsible for ...
*
Indian Financial System Code The Indian Financial System Code (IFS Code or IFSC) is an alphanumeric code that facilitates electronic funds transfer in India. A code uniquely identifies each bank branch participating in the three main Payment and settlement systems in India: th ...
*
List of largest banks The following are lists of the largest banks in the world, as measured by total assets. By total assets The list is based on the April 2022 S&P Global Market Intelligence report of the 100 largest banks in the world. The ranking was based upon a ...
*
List of companies of India India is a country in South Asia. It is the seventh-largest country by area, the second-most populous country (with over 1.2 billion people), and the most populous democracy in the world. In 2019, the Indian economy was the world's fifth ...
*
Make in India Make in India is an initiative by the Government of India to create and encourage companies to develop, manufacture and assemble products made in India and incentivize dedicated investments into manufacturing. The policy approach was to creat ...


References


Cited sources

*


External links


Indian Bank's official website
{{Authority control Public Sector Banks in India Banks established in 1907 Financial services companies based in Chennai Banks of India Indian companies established in 1907