The promising credit market of the south has provoked Allahabad Bank to spread its wings there too. The bank aims to open up some branches in the southern cities.

"The credit market in the southern region is encouraging. We are going to open 40 of 95 new branches planned this year in the south," M R Nayak, the bank's executive director, said.

The southern presence of the bank currently is very meager with only 135 out of its huge 2,312 branches catering to the southern segment. The southern segment contributes only 16% of the total business operations of the bank.

"The potential in the south is huge. Andhra Pradesh and Tamil Nadu are major markets. We have been taking a cluster approach in our operations and the model suits several industrial cities in the region," he said.

The bank however, does not have any plans verifying the rumor that it would be taking over a medium sized south based bank.

"We are interested in organic growth. The consolidation process is anyway taking time in the banking sector. Moreover, the branch licensing system too has been relaxed keeping financial inclusion plans in mind. We will grow on our own and open new branches in the southern market," Nayak said.

In the rest of the country the bank has a strong presence especially in Noida, Gurgaon, UP and West Bengal.