Indian Bank (BSE:532814) agreed to acquire 7.99% in Allahabad Bank (BSE:532480) for INR 5.7 billion on September 16, 2019. As of March 31, 2019, Government of India held 81.5% stake in Indian Bank and As of April 4, 2019, Government of India held 92.01% stake in Allahabad Bank. Indian Bank will issue 115 shares for every 1,000 shares of Allahabad Bank. Upon amalgamation the surviving entity shall be known by the name "Indian Bank". the Board of the Allahabad Bank shall stand dissolved, the entire share capital of Allahabad Bank shall stand cancelled and the shares of the Transferor Bank shall stand delisted from stock exchange in India. The transaction is subject to all necessary approvals. The Board of Directors of Allahabad Bank approved the deal in-principle on September 16, 2019. As of September 18, 2019, the transaction has been approved by the Board of Directors of Indian Bank. Government of India, Ministry of Finance, Department of Financial Services on November 13, 2019 has advised that the Alternative Mechanism has accorded its in-principle approval to the proposed amalgamation of Allahabad Bank into Indian Bank. This merger scheduled to come into effect from April 1, 2020.

Indian Bank (BSE:532814) completed the acquisition of 7.99% in Allahabad Bank (BSE:532480) on April 1, 2020. Ernst & Young LLP acted as financial advisor to Indian Bank.