History of Indian Bank

The Indian Bank, a prestigious bank owned by the Government of India, was founded on March 5, 1907, as Indian Bank Limited, and it began operating on August 15, 1907, as part of the Swadeshi Movement.

For the needs of both its individual and business clients, Indian Bank provides a range of deposit options. 

Schemes for credit, advances, and loans are created especially for its clients. Additionally, it provides consumers, both people, and organizations, with a variety of unique services. In 1932, the Bank launched its first foreign branch in Colombo, Sri Lanka, and in 1941, it built a branch in Singapore. 

The activities of Royalaseema Bank, Bank of Alagapuri Salem, Mannargudi Bank, and Trichy United Bank were bought by Indian Bank in 1962. After being nationalized, the bank’s name was changed to Indian Bank.

Worldwide Impact

So far, the Indian Bank’s early years had greatly evolved, with 1642 branches spread throughout India and overseas branches in Singapore and Colombo as of April 2009.

Additionally, the bank has 40 Overseas Correspondent Banks in 70 nations, providing it with a significant global presence. A team of 22,000 dedicated employees take pride in serving the Indian Bank.

Union

Allahabad Bank would combine with an Indian bank, Finance Minister Nirmala Sitharaman revealed on August 30, 2019.

With assets of 8.08 lakh crore (US$100 billion), the planned merger will establish the seventh-largest public sector bank in the nation. [8] [9] On March 4, 2020, the Union Cabinet authorised the merger. On April 1, 2020, Indian Bank became the owner of Allahabad Bank.

IFSC Codes Of Indian Bank

The Indian Bank IFSC code can be used for online fund transfer methods such as NEFT, RTGS, and IMPS. Tamil Nadu is home to several Indian Bank branches, although it might be challenging to go there frequently. We require rapid banking services in the fast-paced world of today. 

This function is effectively served by online banking. The idea of an IFSC code was created because it was necessary to identify the bank branches taking part in online financial transfers as distinct organisations. 

As a result, each Indian Bank branch in Tamil Nadu that offers net banking has a special IFSC number. RBI offers IFSC codes for Indian banks in Tamil Nadu. Remember that only bank branches with RBI approval may provide net transfer services.

Post Nationalization 

Anti-Tamil riots that were motivated by ethnic sectarian violence in 1983 led to the Colombo branch of Indian Overseas Bank being set on fire. Indian Bank, which could have had more connections to the Sinhalese community, managed to stay unharmed.

Indian Bank saved the 157 branches of the Tamil Nadu-based Bank of Tanjore (also known as Bank of Thanjavur; founded in 1901) in 1990.

When then-chairman M. Gopalakrishnan loaned 13 billion to small corporations and exporters from the south—money that the borrowers never paid back, multi-crore fraud was made public in 1992.

In 1998, Bank of Baroda acquired its Hong Kong-based partners in IUB International Finance. Evidently, this was a reaction to legal changes brought about by Hong Kong’s return to Chinese rule. The Indian Union Bank turned into Bank of Baroda (Hong Kong), a bank with a restricted licence.

Discover

■ In 1970, the bank’s head office was moved into a separate building.

■ Sri Venkateswara Grameena Bank, the first regional rural bank supported by the Bank, was established in 1981.

■ In 1989  the incorporation of Indbank Merchant Banking Services as a Bank subsidiary, and 1990 the merger of Bank of Thanjavur Limited with its 157 branches.

■ Ind Bank Housing Limited was established as a subsidiary in 1991.

■ In 1994 the establishment of Indfund Management Limited to oversee Indian Bank Mutual Fund activities.

■ In 2006–2007, the Bank formed a strategic partnership with Corporation Bank and Oriental Bank of Commerce.

■ 2012 – Plan of amalgamation between Indian Bank and M/s. lndfund Management Limited, a fully owned subsidiary of the Bank.

Conclusion

Thus, commercial banks, cooperative banks, regional banks, etc. make up the Indian financial system. Public banks and private banks are the two categories of commercial banks.

The nationalization of banks is a significant development in the history of Indian banking. Small-scale industries and agriculture were given a boost.

This resulted in a rise in income and, as a result, an increase in India’s economic development. The nationalization of banks enhanced bank penetration. The majority of this was seen in rural India. This laid the foundation for India to become one of the world’s greatest economic systems. 

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