Tag: Allahabad Bank

Cheque books of these banks become invalid from today; here’s what customers should do

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Existing cheque books of Allahabad Bank, Oriental Bank of Commerce (OBC) and United Bank of India have become invalid from today owing to their mergers with other banks. While Allahabad Bank has been amalgamated into Indian Bank, Oriental Bank of Commerce and United Bank of India have been merged with Punjab National Bank (PNB).

This new system is being implemented to avoid any transactional inconvenience to banks and their account holders.

So, what should customers with old cheque books do now?

Account-holders of these banks will have to apply for new cheque books through ATMs or internet banking or by calling the customer service representatives.

Indian Bank has advised its Allahabad Bank customers to go through net banking, mobile banking or via bank branch to get a new cheque book.

“Erstwhile Allahabad Bank customers can continue to enjoy a seamless banking experience with Indian Bank by ordering new cheque books as the old ones will no longer be acceptable w.e.f 1st October, 2021,” it said.

Similarly, PNB has also advised its Oriental Bank of Commerce and United Bank of India customers to get a new cheque book.

Take note & apply for your new cheque book through👇

➡️ ATM
➡️ Internet Banking
➡️ PNB One
➡️ Branch pic.twitter.com/OEmRM1x6j0

— Punjab National Bank (@pnbindia) September 8, 2021

It stated that all customers from October 1 will have to use the PNB cheque book having PNB IFSC and MICR codes. The customers can also contact PNB’s toll-free number 1800-180-2222 for any further assistance or any related queries.

Apart from these, three other public sector banks were also merged into lenders under the government’s mega consolidation plan. Syndicate Bank was combined with Canara Bank while Andhra Bank and Corporation Bank were merged with Union Bank of India.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Indian Bank Q2 net profit rises 15 pc to Rs 412 cr

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

State-owned Indian Bank on Thursday reported a 15 percent rise in net profit at Rs 412.28 crore for the second quarter ended September, despite an increase in provisions for bad loans.

The bank’s net profit in the July-September quarter of 2019-20 stood at Rs 358.56 crore.

The results are not strictly comparable with that of the previous year’s as Kolkata-based Allahabad Bank merged with Indian Bank on April 1, 2020.

Indian Bank’s total income rose to Rs 11,669.11 crore during the September quarter this year from Rs 6,045.32 crore in the same period of the previous fiscal, it said in a regulatory filing.

On the asset quality front, gross non-performing assets (NPA) rose to 9.89 percent of gross advances at the end of September 2020 from 7.20 percent a year ago.

However, net NPA declined to 2.96 percent of the advances at the end of the second quarter of this fiscal from 3.54 percent a year ago.

The bank’s provisioning for bad loans and contingencies rose to Rs 2,284.11 crore during the July-September quarter from Rs 909.36 crore in the corresponding quarter a year ago.

Provisioning for bad loans alone doubled to Rs 1,880.19 crore at the end of September 2020 from Rs 720.90 crore a year ago.

The provision coverage ratio rose to 84.39 percent as on September 30, 2020. The Chennai-based lender said the extent to which the COVID-19 pandemic will impact the bank’s results will depend on future developments, which are highly uncertain.

Indian Bank’s capital and liquidity position is strong and would continue to be the focus area, it said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Moratorium on loans to NBFCs under discussion; expect decision today, says Indian Bank

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Following the operationalisation of the PSU bank amalgamation, all of Allahabad Bank’s branches have started operating as Indian Bank branches.

Talking about moratorium on loans to NBFCs Padmaja Chunduru, managing director and CEO, Indian Bank said the resolution for the same is expected today.

“There was an FAQ from the IBA and the moratorium on NBFCs are under discussion. Like any other loan,whether we would be able to give them moratorium since it is a financial service provider,” she said in an interview with CNBC-TV18.

“Since NBFCs are also lending to the same set of people that the banks are lending and this is the community that is under a lot of stress since these require the same kind of moratorium that bank borrowers have, especially in the case of pooled assets and the securitised portion assets, the moratorium should be available, she said adding that clarity would be coming today about the direct lending to the NBFCs.

Talking about work culture after merger she said, “Work culture was on top of my mind when this amalgamation was taken up and through this last six months, we have worked on it. It is perceived that Indian Bank is a very strong south oriented bank and Allahabad Bank is in the north and in the east, so there were lot of apprehensions and perception that these two would be very difficult to integrate.”

“We had training sessions for both the sets of zonal managers together at Kolkata and Lucknow in Allahabad Bank’s training colleges and also in Chennai. So once people start meeting people and actually exchange views it has become very clear there are as many south Indians in Allahabad Bank, as there are people from Bihar, Uttarakhand and Rajasthan in Indian Bank. This has been the change that has been happening in the public sector banks in the last few decades. Also the mind-set is fast changing and integrating. I don’t see culture as a show stopper but we will keep on working on it because communication is very important in all this,” she said.

“We have all come together for this common goal of attending to the COVID-19 emergency. It is a shared goal for both the banks and they have been on the forefront of providing services to customers. Apart from the banks amalgamating, this COVID response has become the top priority for the bank,” she emphasized.

According to her, SMA 2 units which were in March recovery process were ffected a bit. “We could not follow up as usual and usually, the recovery in the last month is quite high because the percentage of slippages from SMA 2 to NPA is hardly 2 percent or maximum 5 percent. But this month there could be pressure on that segment because we could not follow up. So that segment is expected to go up across the banking sector. For Indian Bank I don’t think it has made too much difference,” she said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

155-year-old Allahabad Bank into sunset after getting merged with Indian Bank

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The 155-year-old Allahabad Bank ceased to exist as it got merged with Indian Bank on Wednesday. All branches of the Kolkata-headquartered lender started functioning as units of Chennai-based Indian Bank from April 1, 2020, an official said.

“We warmly welcome the employees and customers of Allahabad Bank to Indian Bank fold,” Indian Bank MD and CEO Padmaja Chunduru said. The integration offered the lender a host of revenueand cost synergies, she said.

The merger makes the Indian Bank stronger with a business of Rs 8 lakh crore, 6,000 plus branches, 4,800 ATMs and 43,000 employees serving 120 million customers, the official said.

Chunduru said a chief general manager will be designated in Kolkata, when total business of the bank will cross Rs 10 lakh crore.

Speaking about preparedness, Chunduru said harmonisation of products — both on the loan and deposit sides — were completed and the same products will be offered to all customers.

She also said all the deposit and loan products, including access to Indian Bank’s emergency credit lines launched in the wake of COVID-19 crisis would be made available to the customers of Allahabad Bank.

The 113-year-old Indian bank and the Allahabad Bank will create a “lender with sound financial strength”, the official said. The amalgamation is part of the mega merger decision of the government.

Apart from Allahabad Bank, five other public sector banks (PSBs) namely Oriental Bank of Commerce, United Bank of India, Syndicate Bank, Andhra Bank and Corporation Bank lost their individual identity as they were merged into three bigger lenders with the objective to make them globally competitive.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

RBI approves amalgamation of 10 public sector banks from April 1

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The Reserve Bank of India on Saturday said it has approved the amalgamation of Oriental Bank of Commerce and United Bank of India into Punjab National Bank, Syndicate Bank into Canara Bank, Andhra Bank and Corporation Bank into Union Bank of India and Allahabad Bank into Indian Bank.

The scheme will come into force with effect from April 1, 2020 and all the branches of Oriental Bank of Commerce and United Bank of India will function as branches of PNB branches; Syndicate Bank branches into Canara Bank branches; Andhra Bank and Corporation Bank branches into Union Bank of India branches and Allahabad Bank branches into Indian Bank branches.

Following the consolidation, there will be seven large public sector banks and five smaller ones. There were as many as 27 PSBs in 2017.

The merger would result in creation of seven large PSBs with scale and national reach, with each amalgamated entity having business of over Rs 8 lakh crore.

The anchor bank Punjab National Bank will become the country’s second largest bank, with business size of Rs 17.94 lakh crore, after SBI which has business of over Rs 52 lakh crore.

Bank of Baroda will become the third largest bank, followed by Canara Bank, Union Bank of India, Bank of India, and Indian Bank. The other PSBs are Central Bank of India, Indian Overseas Bank, UCO Bank, Bank of Maharashtra, and Punjab and Sind Bank.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

State-owned Allahabad Bank lowers external benchmark-linked loan pricing

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

State-owned Allahabad Bank on Saturday announced a cut of up to 40 basis points in the interest rate on external benchmark-linked products.

“…the Asset Liability Management Committee (ALCO) of the Bank has decided to revise interest rates for the products linked to External Benchmark with effect from 1st March 2020,” the bank said in a regulatory filing.

While the RBI’s repo rate remains unchanged at 5.15 percent, the three-month MIBOR (Average) has reduced to 5.75 percent from 6.15 percent.

MIBOR refers to the Mumbai Interbank Offered Rate.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Allahabad Bank’s Q3 net loss widens on higher provisioning

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

State-run lender Allahabad Bank on Tuesday reported a wider net loss during the third quarter ended December 31, 2019, due to higher provisioning for non-performing assets (NPAs).

According to the bank, its net loss widened to Rs 1,986.27 crore from Rs 732.81 crore reported for the same period of the previous financial year.

The bank’s gross NPA (GNPA) stood at 18.93 percent during the quarter under review as against 17.81 percent as on December 31, 2018.

“Net NPA significantly reduced to 5.13 percent as on December 31, 2019 from 7.70 percent on December 31, 2018,” the bank said in a statement.

“Provision Coverage Ratio (PCR) significantly improved to 82.42 percent at the end of December 2019 as against 69.64 percent at the end of December 2018,” it added

The lender’s provisions other than tax and contingencies increased to Rs 3,092.54 crore from Rs 1,495.37 crore made during the same period of the previous financial year.

Similarly, the provisioning for NPAs rose to Rs 3,002.98 crore from Rs 1,900 crore made during the corresponding quarter of the last fiscal.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Government waives off MDR for merchants using UPI, RuPay from January, launches common e-auction platform for banks

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The Narendra Modi government on Saturday announced various steps including strengthening of the digital payment system and a common e-auction platform for banks.

While chairing a meeting of chiefs of public sector banks (PSBs), chief executive of Indian Banks’ Association and representatives of leading private sector banks, union finance minister Nirmala Sitharaman instructed state-run banks to clear pending vigilance cases against their officials for alleged malpractices.

Finance secretary, revenue secretary, economic affairs secretary, electronics and information technology secretary, CBI Director, RBI representative and the chief executive officer of NPCI were also present in the meeting.

Digital Payment

In a move towards a less-cash economy, the department of revenue will notify RuPay and UPI as the prescribed mode of payment for undertaking digital transactions without any merchant discount rates (MDR).

Accordingly, all companies with a turnover of Rs 50 crore or more shall be mandated by the department of revenue to provide the facility of payment through RuPay Debit card and UPI QR code to their customers. Also, all banks will also start a campaign to popularise RuPay Debit Card and UPI.

The move comes in the wake of finance minister’s budget speech of 2019-20, where she announced that business establishments with an annual turnover of more than Rs 50 crore shall offer low-cost digital modes of payment to their customers, and no charge or MDR shall be imposed on customers as well as merchants.

Gross NPAs of Banks

Coming to PSBs, the government said that the gross NPAs of state-run banks declined from Rs 8.96 lakh crore in March 2018 to Rs 7.27 lakh crore in September 2019 and their provision coverage ratio rising to their highest level in seven years, and banks returning to profitability, with as many as 13 banks reporting profits in H1FY20.

With the Essar Steel resolution decision, banks have recovered Rs 38,896 crore, in addition to Rs 4.53 lakh crore recovered in the last four and half years, the government said.

Online Auction

The finance minister launched eBककरय, a common e-auction platform that will enable online auction by banks of attached assets transparently and cleanly for the improved realisation of value. As of now, PSBs have attached assets worth over Rs. 2.3 lakh crore over the last three financial years.

The platform is equipped with property search features and navigational links to all PSB e-auction sites, provides single-window access to information on properties up for e-auction as well as a facility for comparison of similar properties, and also contains photographs and videos of uploaded properties. As on 27.12.2019, a total of 35,000 properties had been uploaded on the platform by PSBs.

Capital Infusion

Further to strengthen banks, the government has approved additional infusion of Rs 8,855 crore (Rs 4,360 crore to Indian Overseas Bank, Rs 2,153 crore to Allahabad Bank, Rs 2,142 crore to UCO Bank and Rs 200 crore to Andhra Bank).

No Witch-Hunt of Bankers

To allay fears of bankers on witch-hunt by central agencies, CBI notices will carry a registration number to avoid any scope for unauthorised communication and consequent harassment, the agency shall be sensitive to the distinction between genuine commercial failures and culpability, PSBs can report instances of fraud through e-filing of FIRs on a designated email address of CBI and the agency would create a dedicated phone number on which any person could give information regarding any undue harassment by the investigative machinery.

Loans Disbursed

PSBs have sanctioned over 11.68 lakh repo-linked loans to retail borrowers for home/vehicle/education/personal loans and to micro and small enterprises, amounting to Rs 1.32 lakh crore. Also, a total of 5,38,440 MSME loan accounts have been restructured, out of which 1,65,104 accounts have been restructured since October 2019.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow