Post merger, existing shareholders of Fincare SFB shall hold ~9.9% in AU SFB," stated the press release. Shareholders of Fincare SFB to receive share AU SFB: "Fincare SFB shareholders shall receive 579 shares in AU SFB for 2,000 shares of Fincare SFB. Bank is expected to issue more clarity in coming days. While fixed rate loan may run uninterrupted till the end of their tenure however floating rate loans especially the long term loans may change as per the merged entity. No clarity on interest rate of loans: It is not clear what will happen to the interest rates of those who have loans running with these banks as the rates are different for different banks. If renewal falls due after merger, then interest rate of merged entity is likely to be applicable on these FDs. Once the FD is booked the merged entity is likely to allow it to run on original interest rate and tenure till the maturity. Issues related to fixed deposits: Paperwork and keeping a financial trail of fixed deposits made might increase as these will be transferred into the merged bank. Just like in the case of cheque books, if there is a name change, then both sets of customers will be impacted. Replacement of debit and credit cards: Credit/debit cards issued by the merging banks may have to be exchanged for those of the merged entity although the former are likely to remain valid for the interim period to ensure no disruption in services. From 2021, the IFSC codes and MICR codes of the amalgamating banks were discontinued and the codes used by the anchor bank replaced them. The amalgamation of these banks into four mega PSU banks came into effect in April 2020. Further, in August 2019, finance minister Nirmala Sitharaman announced the consolidation of 10 public sector banks into four mega state-owned ones. This could be an issue that accountholders of AU SFB and Fincare SFB might face after the merger. Those who had auto-debits running with these banks like systematic investment plans (SIPs) in mutual funds were impacted. SBI changed the names and IFSC codes of branches located in major cities such as Mumbai, New Delhi, Bengaluru, Chennai, Hyderabad, Kolkata and Lucknow. A few years ago, when five associate banks of State Bank of India (SBI) were merged, IFSC codes and names of 1,300 branches were changed. Unless these accounts are seamlessly merged into the financial system of the new merged bank, you would be required to change the details of your bank given for these purposes. Change in ECS debit/credit or NACH mandate: You would have given your bank account numbers and IFSC codes for various financial transactions - auto credit of dividends via ECS, auto-credit of salary, auto debit of various bills/charges etc. If there is a name change due to the merger, then customers of both banks will have to change their cheque books. While the existing cheque book may remain valid for some time, ultimately it will be replaced with the chequebooks of the merged entity. Change of chequebook after the merger: If there is no name change after the merger and name of bigger bank is taken, then smaller bank customers, in this case Fincare bank customers may be required to change their chequebook after the merger. If you are a customer of either of these banks, here is how you are likely to be impacted by the merger. Individuals who have savings accounts, fixed deposits or have availed loans from these banks are likely to be impacted by the merger. Mutual Funds Spend P2P Data Center Fuel Rates Diesel Rates Petrol Rates Bank Pan Number Bank holidays Penny Stocks MF Ratings & NAV Top Performing Schemes Top Star Rated Schemes Top Tax Saving Schemes Highest Risk Adjusted Return New Fund Offers Forthcoming Dividends NPS Top Performing NPS Scheme Most Consistent NPS schemes ETF Perfomance Latest Prices Listed Bonds Traded in Cash Market ULIPs ULIP Schemes Calculators Recurring Deposit Calculator Fixed Deposit Calculator LTCG Tax Calculator Income Tax Calculator Rent Receipt Generator SIP Calculator IFSC Bank Code NPS Calculator Invoice Generator EPF Calculator House Property Income HRA Calculator Sukanya Samriddhi Calculator Education Loan Calculator Car Loan Calculator Home Loan Calculator Personal Loan Calculator Risk Tolerance Calculator Financial Fitness Calculator Buy Online Health Insurance Car Insurance 2 Wheeler Insurance Interest Rates Recurring Deposit Rates Fixed Deposit Rates Bank Fixed Deposits Rates Post Office Schemes Rates MCLR Loan EMI Participate & Win Stocks & Shares ET Wealth ET Wealth Editions Buy Wealth Magazine ET Wealth Newsletter
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