Allahabad Bank: Rao & Raja on the Path of Revitalisation  

Onkareshwar Pandey with Didhiti Ghosh
Delhi/Kolkata, March 8, 2019: Shri P.R. Rajagopal, the new Executive Director of Allahabad Bank, who assumed the office on 1st of March, 2019, is working hard to meet the challenges before the prestigious banking institution, which has a rich legacy, and continues to serve and value the trust of its more than 4 crore customers for over a century and a half. 
 

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Rajagopal reports to Shri CH. S. S. Mallikarjuna Rao, a dynamic banker and Managing Director and CEO of Allahabad Bank, who assumed charge on 19-09-2018.

Mallikarjuna Rao has also served as Executive Director of Syndicate Bank and has been a professional banker for over 33 years having held position as General Manager & CFO in Oriental Bank of Commerce, as Assistant Vice President in erstwhile Global Trust Bank and has vast exposure in Credit, Recovery, Treasury, Risk Management, Information Technology, Management Information System, Retail Banking, Marketing, Publicity & Alternative Delivery Channels.

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Thus, according to insiders, the Rao-Rajagopal duo is working on a three-pronged strategy i.e. Recovery of overdoes, achieving healthy growth in retail advances and mobilizing CASA deposits on liability side with an emphasis on savings bank accounts, as envisioned by in bank’s 2017 annual report. 

The challenges are several and big. The small, payment and universal banks have become operational, which poses a new challenge to traditional banks due to increased competition. The retail segment is expected to drive credit off-take in the country’s economy especially with the real estate benefitting from RERA and low-cost housing projects and increased demand for consumer goods.
 

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According to sources in the market, the industrial sector is set to recover indicating that the banks will be able to recover their over dues resulting in improved asset quality. Allahabad Bank may also benefit from this as one of the prime focuses will be on recovery of dues. The RBI's new directives on NPA resolution may also help the Bank to resolve stressed accounts and help improve asset quality. Also, the Insolvency and Bankruptcy Code 2016 is expected to ensure quicker resolution of NPAs. 

Since Rajagopal, a commerce graduate and Bachelor in Law (BL) is a professional banker for over 24 years having enough experience and understanding on legal issues, he will certainly be making plans and policies that will help the Bank. 
 

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Prior to joining Allahabad Bank, Rajagopal has served as General Manager of Union Bank of India (UBI) and had joined the UBI as Law Officer in 1995. He was seconded to Indian Banks Association (IBA) as Legal Advisor and was with IBA till 2004. Thereafter, he joined UBI and headed various positions thereat. During his tenure at UBI, he discharged various responsibilities including serving the positions as General Manager, Recovery & Legal Services. 
Earlier, as media reported, Allahabad Bank NSE 4.56 % is under Reserve Bank of India’s prompt corrective action framework for nursing back to health -- and looking to monetise non-core assets by selling their holdings in the insurance joint venture. 
 

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Rajagopal’s vast exposure & experience in handling legal support and documentation of JVs, AMC JVs, and Sell-Side Advisory for sale of Assets to ARCs, Project Finance etc will surely help Allahabad Bank in revitalising its financial health. 

Image credit - Glassdoor 

(Onkareshwar Pandey Is Editor In Chief & CEO, Indian Observer Post, having Over 30 Years Of Experience in the Media. He is former Senior Group Editor- Rashtriya Sahara (Hindi & Urdu) And Former Editor-News, ANI. Contact: editoronkar@gmail.com. Didhiti Ghosh is a conference interpreter of the Spanish language and is the Bureau Chief of Indian Observer Post based in Kolkata. Contact: didhiti.24@gmail.com).