Infosys, TCS, IBM shortlisted for Allahabad Bank computerisation

Mumbai, March 23 | Updated: Mar 24 2005, 06:16am hrs
Kolkata-headquartered Allahabad Bank has shortlisted three vendors - Infosys Technologies Ltd, TCS, and IBM - for phased implemention of core banking solution (CBS) across its branch network, even as it has drawn up plans to spend Rs 300 crore towards information technology initiatives over the next three years.

Our bank has 1,938 branches. Well have separate IT architecture for metro/ urban branches (400), which will be put on CBS, semi-urban branches (950), which will be computerised and linked to the central hub via satellite, and rural branches (588), which will be only computerised. This will enable us to draw up our balance sheet in a day, said ON Singh, chairman and managing director, Allahabad Bank, at a press meet to announce the banks second public issue.

Mr Singh said management consulting firm Ernst & Young would help the bank zero-in on an IT vendor for implementing the CBS shortly.

The bank, which has 100 automated teller machines (ATMs), is planning to have 300 ATMs by the end of 2006.

Allahabad Bank, which is on course to meet the budgeted net profit target of Rs 600 crore and and operating profit target of Rs 1,100 crore, will seek synergy with a public sector bank (PSB) in the south in view of robust credit absorption capacity in the region, said its chief.

The PSB will be making its maiden overseas foray by setting up a joint venture subsidiary with Punjab National Bank (PNB) in Kazakhstan. Of the subsidiarys Rs 100 crore capital, Allahabad Bank will hold 40% equity, while PNB will hold the balance.