The Indian Bank, which has merged with the Allahabad Bank, carried out a software migration over the weekend. The merger process took place between 9pm on February 12 to 9am on February 15 with the bank adding that services related to banking operations might be disrupted during this time period. Show
“Our bank has scheduled technical migration of CBS/ITMS software of erstwhile Allahabad bank with CBS/ITMS software of Indian Bank on 13-14 February 2021,” the Indian Bank had earlier stated in a regulatory filing. As the merger got completed, new rules had been issued by the bank with regard to its services. Sharing the update on Twitter, existing customers were asked to get a new Indian Financial System Code (IFSC) code and were also informed on other services such as net banking, mobile banking among others. Customers can contact their home branch or customer care centre at 1800 425 00000 or visit www.indianbank.in/amalgamation for all their queries. The Indian Bank on January 22 reported a standalone net profit of ₹514 crore in the third quarter of the current fiscal, helped by an improvement in the asset quality, according to news agency PTI. The lender amalgamated with Allahabad Bank with effect from April 1, 2020. Here are the new rules that existing/new customers should be aware of after the merger: 1. For IFSC codes Customers that had accounts with the Allahabad bank would now have to get a new Indian Financial System Code (IFSC) as the old one would not be applicable. Failure to do this would result in non-conduction of any monetary transactions. Customers can log into www.indianbank.in/amalgamation and enter the old IFSC code to obtain the fresh code. An SMS can be sent to 92668 01962 from the registered mobile number in the format IFSC<Space> <OLD IFSC> (Eg. IFSC ALLA0210999). Customers are requested to use only Indian Bank’s IFSC codes starting with ‘IDIB.. ‘ from February 15 onwards for remittances (RTGS, NEFT, IMPS) 2. Mobile banking, introduction of IndOASIS app With regard to mobile banking, customers will be required to install the IndOASIS app on their phones and start using it from February 15, 9 am onwards. The app is available on Google play store and IOS. 3. Net banking services To avail of internet banking services, customers have to log into https://indianbank.net.in from February 15, 9am onwards with their existing log-in credentials. 4. Cheque book and passbook Customers are allowed to use their existing cheque books till they are exhausted or for another six months, whichever is earlier. New passbooks in line with the Indian Bank format will be issued after February 15. Customers have also been requested to obtain a new passbook of the bank (if not taken already) from their home branch. Last Updated on Jul 12, 2022 by Many Public Sector Banks (PSB) depend on the government’s aid to live on, adding to its burden. In 2014, the PJ Nayak Panel recommended privatising state-run banks to lighten this burden on the government. But the idea of banking mergers in India only took off in 2018. The RBI had said that merging them would help revamp India’s banking system, creating global, robust and well-funded banking majors, if successful. In August 2019, PM Narendra Modi announced a mega-merger of 10 Public Sector Undertaking (PSU) banks in India into four. The following year, FM Nirmala Sitharaman conveyed the cabinet’s approval of the same. She also said that the merger would take place after the boards of the banks met and decided how to take things further. The mergers were to take effect from 1st April 2020 (as per a press release dated 28th March 2020). So how do banking mergers in India impact you as a customer or a stakeholder in the banking system? Let’s take a look at that along with a list of merged banks, and the pros and cons of banking mergers in India.
What is a bank merger in India?A banking merger happens when two or more banks pool their assets and liabilities to come together under a single charter. Typically, the merged entity will retain the name of the bank, taking over the others. In rare cases, though, banks may form a newly chartered bank with a new name. Banks merger list 2020As mentioned, 10 state-run banks were amalgamated with the respective anchor banks—these are the ones that drove the merger process. 10 state-run banks identified for mergers before 2020
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Terms after the merger
Merits of a banking merger
What challenges do banking mergers in India entail?
How do the banking mergers in India impact customers?
Most of these changes come into effect only after 18-24 months of the merger after the banks integrate their IT systems. Do mergers of PSBs really strengthen the banking system?Although the rationale behind merging public sector banks was to achieve increased efficiency, some experts opine that, in truth, it is actually weakening stronger banks and the banking system as a whole. Abhiman Das, who teaches economics at the IIM-Ahmedabad, and Subal Kumbhakar, who teaches the same subject at the State University of New York, US, have penned an article arguing that recent mergers have done more harm than good. Through the stochastic frontier approach (SFA), the duo found little economic grounds for the mergers of PSBs that took place recently. On looking at Dena Bank’s performance before and after the merger, its efficiency had declined ~60% from 2014 to 2018! Its cost inefficiency had also gotten worse, increasing by over 30% during the same period. As per the duo, Dena Bank should have been restructured much earlier. Talking of Oriental Bank of Commerce (OBC), they found it to be performing well till 2011, but the efficiency declined to 86% from ~95% before recovering to 92% in 2020. They also claimed that there were other examples exhibiting a decline in PNB’s post-merger efficiency. RBI’s retrospective take on PSU banks’ mergersIn its latest Financial Stability Report, the Reserve Bank of India (RBI) stated that merged public sector banks are riskier than unmerged ones. Using stock market indicators to measure systemic risk in the banking sector, RBI found a decreased risk in the banking sector in 2021 compared to the first wave of the pandemic. The apex bank stated that the systemic risk posed by state-run banks was higher than the private players. While the merger of banks is supposed to help achieve greater efficiencies for the banks in question, revitalise the entire banking system, and lighten the government’s burden of funding, the effectiveness of the merger depends on how well it is implemented. Bank merger in India – frequently asked questionsWhat is Allahabad Bank’s new name?Allahabad Bank was merged with Indian Bank in 2020. By virtue of that, its new name is Indian Bank. Prior to its merger, Allahabad Bank was a nationalised bank headquartered in Kolkata. It was founded in 1865 and nationalised in 1969. Allahabad Bank functioned independently for 155 yrs until it was merged with Indian Bank. What is Corporation Bank’s new name?Headquartered in Mangalore, Corporation Bank was an independent PSU banking company with a pan-Indian presence. In 2022, it was merged with the Union Bank of India along with Andhra Bank. After the merger, Corporation Bank became known as Union Bank. What is the list of nationalised banks in India?Following are the nationalised banks in India: When did the most recent bank merger happen in India?In 2020, 10 PSU
banks were merged into four, citing several reasons including:
Aradhana Gotur is a Content Writer with 4 years of experience in personal finance, stock markets, and lifestyle areas. Having recognised the power of words, she constantly works on using them to enhance financial awareness among the masses and meet business objectives. One of her greatest strengths is breaking complex concepts in an easy-to-understand way. Is Indian Bank merged with any other bank?The merger took effect on 1 April 2019. SBI's associate banks and Bharatiya Mahila Bank were merged with the State Bank of India in 2017.
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Banks merger list 2020.. What is new name of Indian Bank?As per the announcement made by the Indian Finance Minister Nirmala Sitharaman on 30 August 2019, Allahabad Bank merged from 1 April 2020, making Indian Bank now the seventh largest bank in the country.
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Indian Bank.. Which bank merged with which bank?Given below is the banks merging chart. Is Allahabad Bank merged with Indian Bank IFSC code?Dear erstwhile Allahabad Bank Customer, On account of the amalgamation of Allahabad Bank into Indian Bank the data bases of both the Banks are slated for merger on 13th and 14th February 2021.
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