Details Of The Amalgamation Of Andhra Bank And Corporation Bank Into Union Bank of India
On April 1, Andhra Bank and Corporation Bank combined to form Union Bank of India as part of a banking consolidation drive. The Union Bank of India has told Andhra Bank and Corporation Bank account holders that their account numbers, IFSC codes, MICR codes, and bank branches have not changed due to the merger.
Union Bank of India also stated in an email to account holders of these two banks that cash withdrawals from any of the three banks’ ATMs would be free. In addition, all loan terms and conditions would remain in effect until the end of the loan period.
The government declared in August 2019 that ten public sector lenders would be merged into four more extensive and more powerful banks. “Increased lending capacity will assist businesses and industry,” the government claimed, “with the regulatory maximum for lending individual borrowers increasing by nearly Rs 1,500 crores to Rs 3,000 crores.” From April 1, the ten public sector undertaking (PSU) banks were merged into four. Due to mergers, the number and amount of public sector banks in India have decreased from 27 in 2017 to 12 today.
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Corporation Bank And Andhra Bank As Union Bank Of India
|Industry||Banking Financial Services|
|Founded||November 11, 1919; 102 Years|
|Founder||Seth Sitaram Poddar|
|Services||Banking, Finance, Insurance, Loans, etc.|
|Headquarters||Mumbai, Maharashtra, India|
The combined entity will be India’s fifth-largest PSU bank. The finance minister said that the Union Bank of India, Andhra Bank, and Corporation Bank would be amalgamated during a news conference. With Rs 14.59 lakh crore, the firm will be the sixth-largest public sector bank. With 9,609 branches, the organization would have India’s fourth most extensive branch network. Because of network overlaps, the scale and synergy will benefit from significant cost savings.
The business will grow to be twice to four and a half times that of the current bank. JVs and subsidiaries will benefit from cost savings and income potential. Finally, the single CBS (core banking software) used by all three banks will allow for the speedy realization of benefits.
Account Holders Migration into Union Bank Of India
The migration of all Corporation Bank and Andhra Bank clients to Union Bank of India’s core banking system (CBS) has been completed successfully (UBI). On January 25, the Union Bank announced that it had completed the IT merger of all former Andhra Bank branches with itself. The bank concluded its IT merger with the erstwhile Corporation Bank in November of last year. UBI has also made internet banking, mobile banking, UPI, IMPS, treasury, and fast available to Andhra and Corporation Bank users.
After data movement to Union Bank of India, no modifications were made to clients’ account numbers or customer identification numbers with accounts with Corporation Bank or Andhra Bank. However, the Corporation Bank or Andhra Bank’s present IFSC and MICR codes will change, and any transactions made using the current IFSC and MICR codes will be valid until March 31, 2021. Therefore, customers must update their IFSC and MICR codes by this date.
There will be no modifications to the consumers’ present debit and credit card PINs or expiration dates. The cards will stay valid until they expire and can be used without concern.
Changes Made In Services For Clients By UBI
Customers may see improvements in internet and mobile banking services as well. A customer holding an account with Corporation Bank, for example, will be unable to access its internet banking facility. Instead, they must access Union Bank of India’s internet banking page. However, the user’s login credentials will stay the same.
The consumer must download Union Bank of India’s UMobile Application and re-register for mobile banking using the existing debit card. The amalgamation of Andhra Bank and Corporation Bank with Union Bank took effect on April 1, 2020. According to the bank’s statement, the whole movie was done in record time with minimal client disruption. This is without altering their account numbers, debit cards, or net banking passwords.
Impact Of Banks Merger On Employment Loss
According to the Union Bank of India, the amalgamation of Andhra Bank and Corporation Bank into Union Bank of India contributed to no loss of jobs. Rather than employees benefited immensely from the amalgamation as a result of improved employee benefits through standardization across the three banks. Broader career opportunities by implementing novel market segments in cutting-edge areas such as analytics, business process re-engineering, and digitalization.
The Bright Side Of Amalgamation
Union Bank of India has notified that the bank’s regional focus, more toward the states of Andhra Pradesh and Telangana, has become even stronger following the amalgamation, with customers of the region benefiting from an increase in the number of bank branches. ATMs from which they can obtain banking services, a giant corsage of products and services due to harmonization of the same across the three banks, and enhanced lending capacity for larger loans due to increased lending capacity. The bank also stated that the increasing size and client base in the region had permitted the creation of more regional offices and credit processing centers, allowing the bank to serve the region’s consumers better.
Union Bank of India, which merged Andhra Bank and Corporation Bank, intends to save more than Rs 2,500 crore through branch rationalization and technology savings on the merged firm. As a result, the combined entity’s capital adequacy ratio will be 12.5-13 percent, with gross NPAs and net NPAs at 14% and less than 6%, respectively. In addition, the merger would result in a workforce of 75,000 people, 37,000 of whom will be from Andhra Bank and Corporation Bank together.
When banks merge, what happens to their accounts?
A bank’s merger with another institution may impact your banking. You may be given new bank accounts, but they should be comparable to your old ones.
Will the IFSC code change due to a bank merger?
If you have problems with online transactions or net banking, here is the news for you. Following the merging of many public-sector banks, banks will be required to get new IFSC numbers in compliance with post-merger requirements.
Andhra Bank changed its IFSC code following the merger?
Following Andhra Bank’s merger with Union Bank of India, the old IFSC codes for Andhra Bank branches will be phased out on April 1, 2021.
What happens to the shares of Corporation Bank following the merger?
On the ex-date, trading in the amalgamated banks will be stopped (one trading day before the record date). It possibly takes up to 15-20 days for the RTA to credit the transferee bank’s shares to your Demat account.
Is there a change in the Andhra bank account number after the merger?
The e-Andhra and e-Corporation Banks merged into Union Bank of India on April 1, 2020. Both banks’ IT integration was accomplished without changing clients’ account numbers. However, IFSC codes were modified.