Infosys Technologies parked the highest chunk of its huge cash reserves with the Punjab National Bank in FY11 while reducing deposits with ICICI Bank, where a majority of cash was parked last year. As of March 31, the firm?s balance with Punjab National Bank increased to R1,493 crore, up from R994 crore in FY 10. Infosys reduced its deposits with ICICI Bank to R788 crore in FY11 from R1,435 crore the year before.
The company parks its cash ? a total of R15,095 crore ? with both domestic and foreign banks. About 31 scheduled banks in India held R13,610 crore in FY11, up from R9,092 crore the year before.
Infosys CFO V Balakrishnan said the firm deposits money based on whichever banks gives it a better yield. ?There is no conflict of interest with ICICI Bank. The money deposited has been reduced purely on yield issues,? the CFO said, to a query from FE. Non-executive chairman of ICICI Bank KV Kamath was recently appointed the non-executive chairman of Infosys as well, replacing NR Narayana Murthy.
Union Bank of India, Oriental Bank of Commerce, Andhra Bank, Allahabad Bank and Bank of Baroda showed huge increases in deposits. Infosys? deposits with Bank of Baroda increased 268%, from R299 crore in FY10 to R1,100 crore in FY11. Deposits with Canara Bank increased 38% to R1,329 crore while deposits in Bank of India increased 36% to R1,197 crore.
Infosys had no funds parked with HDFC, Axis, South Indian and Yes Bank in FY10. All these four banks got a share of the firm?s deposits in FY11 with HDFC getting R646 crore of the company?s cash and Axis Bank R536 crore.
Among multinational banks, Infosys has deposit accounts with with ABN Amro, Bank of America, Citibank, Deutsche Bank, HSBC, National Australia Bank and Nordbanken. The firm had a total of R708 crore parked with these banks, up from R336 crore in FY 10.