Rs 304-crore contract for core banking, outsourcing
Mumbai, Nov. 17
Dena Bank has signed an agreement with Wipro Infotech for implementing core banking solutions (CBS) and total outsourcing contract worth Rs 304.4 crore. Under this contract, Wipro will implement the centralised and integrated CBS in 850 of Dena Bank's branches over a period of four years. This will cover 92 per cent of the bank's business.
The total contract is for 10 years. The pilot project will be implemented in 10 branches in six months. Speaking to reporters, Mr P.L. Gairola, Chairman and Managing Director, Dena Bank, said that it may not be economically feasible to cover all branches under CBS. But it may be implemented in some branches in cluster form.
The bank has 1,122 branches all of which are computerised. The contract also includes managing other banking applications such as delivery-internet and phone banking, risk management, treasury, credit operations, cash management, asset liability management and anti money laundering.
It will help the bank to reduce overhead costs and mobilise more low-cost deposits, Mr Gairola said. Post CBS implementation, operations like cheque clearing will become centralised.
This is expected to free up 10-12 per cent of the staff, who would be deployed for marketing and other activities, said a senior official from the bank.
The bank has also appointed Ernst and Young as consultants for the CBS project. This is the 10th total outsourcing contract for Wipro Infotech in the last two years. The total revenue from Wipro's banking practice, globally, is in excess of $700 million a year, said Mr Azim Premji, Chairman and Managing Director, Wipro Ltd.
The segment employees about 10,000 people globally and over 1,200 in India alone. "Banking service is a major thrust for us because of the pervasiveness and thrust by banks in new areas, products and services. We are also bidding for other banking deals as more public sector banks go in for CBS," Mr Premji said.