Understanding the Amalgamation of Allahabad Bank and Indian Bank

The question asks about the bank into which Allahabad Bank was amalgamated, based on an RBI notification dated March 28, 2020. This notification paved the way for the merger of several public sector banks in India.

RBI Notification and Bank Mergers

In 2019, the Government of India announced a plan to merge ten public sector banks into four larger entities. The Reserve Bank of India (RBI) issued notifications and guidelines for this process. The notification dated March 28, 2020, was a crucial step towards implementing these mergers, which officially came into effect from April 1, 2020.

Fate of Allahabad Bank Branches

As part of this mega-merger exercise, Allahabad Bank was merged with another public sector bank. Following the amalgamation, all existing branches of Allahabad Bank ceased to function as independent Allahabad Bank branches. Instead, they became branches of the bank with which Allahabad Bank was merged.

Identifying the Amalgamating Bank

Let's consider the options provided in the question in the context of the 2019-2020 bank mergers:

• Bank of Baroda: Bank of Baroda had already undergone a merger in 2019, where Vijaya Bank and Dena Bank were merged into it.
• Canara Bank: As part of the 2020 mergers, Syndicate Bank was merged into Canara Bank.
• Dena Bank: Dena Bank was merged into Bank of Baroda in 2019 and ceased to exist as a separate entity before the March 2020 notification related to the next round of mergers.
• Indian Bank: In the round of mergers effective from April 1, 2020, Allahabad Bank was merged into Indian Bank. This meant that all operations, assets, liabilities, and branches of Allahabad Bank were integrated with Indian Bank.

Based on the details of the amalgamation scheme that became effective from April 1, 2020, following the RBI notification of March 28, 2020, Allahabad Bank was merged into Indian Bank.

Impact on Branches and Customers

After the merger, all branches of Allahabad Bank started operating as branches of Indian Bank. This involved changes in branch codes, account numbers (for some accounts), and integrating systems and services. Customers of Allahabad Bank became customers of Indian Bank, and they could avail banking services from any Indian Bank branch.

Statement Analysis

Let's analyze why Indian Bank is the correct answer:

Therefore, following the amalgamation as per the RBI's notification dated March 28, 2020, all branches of Allahabad Bank began functioning as branches of Indian Bank.

Revision Table: Key Bank Mergers (Effective April 1, 2020)

Additional Information on Bank Amalgamation

Bank amalgamation, or merger, is a process where two or more banks combine to form a single larger entity. The primary objectives of such mergers in the public sector banking space in India often include:

• Creating larger banks with stronger balance sheets to enhance lending capacity.
• Improving operational efficiency through synergy and economies of scale.
• Strengthening risk management capabilities.
• Rationalizing branch networks and reducing overheads.
• Enhancing global competitiveness.

The merger of Allahabad Bank into Indian Bank was part of a broader government strategy to consolidate the public sector banking landscape in India.