The accused, Vijeesh Varghese of Avaneeswaram in Kollam, had allegedly manipulated the accounts of several depositors and stole Rs 8,13,64,539.
Employee Vijish Varghese, suspected for his involvment in the fraud, has gone missing with his family.
The EMI on loans will be accordingly restructured. The benefit of moratorium will be extended to only 'standard accounts' that were prompt in their repayment till January 31, 2020.
Sources said the banks which are going to be amalgamated would soon be announcing their share-swap ratios on stock exchanges as the deadline is approaching fast.
The banks to be merged are Punjab National Bank (PNB), Oriental Bank and United Bank; Canara Bank and Syndicate Bank; Union Bank, Andhra Bank and Corporation Bank; and Indian Bank and Allahabad Bank.
City-based Bank of India said its one-year lending rate has been reduced to 8.35 per cent from 8.60 per cent, effective August 10.
Even when the revenue recovery proceedings were on, Krishnamma was confident that her black magic can stop the bank from attaching the house.
Though the bankers took a lenient approach after government's instructions initially, they returned to take more stringent action as per the SARFAESI Act.
Though the two were rushed to the hospital, the daughter, Vaishnavi (19), died on the way.