Punjab National Bank (PNB) has finished IT integration of all branches of the old Oriental Bank of Commerce (OBC) with itself. The customers of old OBC Bank are now shifted to Core Banking Solution (CBS) of PNB wherein they can transact seamlessly through existing branches. The customers can also use digital banking channels like internet banking and mobile banking.
The integrated shift of the customers has been completed without effecting any change in their debit cards, account numbers or net banking credentials. The OBC ATM replace and terminals also rowed smoothly into the PNB network. The customers of OBC can now enjoy services at a broader network of branches without any difficulty owing to combined products and services at PNB network. On 1st April 2020, the amalgamation of PNB, United Bank of India and OBC has come into effect. As a result of this merger, PNB becomes the second-largest nationalized bank in terms of business and total branches.
H.S.S. Mallikarjuna Rao, MD & CEO of Punjab National Bank had commented that integration of all branches was a moment of accomplishment for them and he also added that with this they will be able to offer synchronised services across eOBC branches and digital delivery channels. On 1st April, six Indian public sector banks (PSBs) ceased to exist after their amalgamation with bigger PSBs. Some of the discontinued banks have been in existence for over a century in the country. In consonance to this plan, Syndicate Bank was merged with Canara Bank, Union Bank of India absorbed both Andhra Bank and Corporation Bank and Indian Bank took over Allahabad Bank.
The prime motive of these mergers is that the Narendra Modi-government is expecting the mergers will bring size and scale to the Indian banking sector. But experts are raising questions whether these goals will be achieved in reality. Currently, Indian banks are going through a tough situation. The Indian banks are neck-deep in non-performing assets (NPAs). The total gross NPAs have increased close to Rs 8 lakh crore. The analysts are expecting slowed economy and the COVID-19 pandemic’s economic fallout will bring more pain to the Indian banking sector. The experts are also commenting that without deep governance reforms in these banks, merely merging these entities could be an unsuccessful exercise.
