IOB to appoint Ernst & Young as consultant on proposal for IT subsidiary
The consultant would advice the Bank and help identify the right potential partner for setting up the IT subsidiary.
By PTI |
CHENNAI: Public sector Indian Overseas Bank on Wednesday said it would appoint global consulting firm Ernst and Young as consultant on its proposal to unveil an IT subsidiary for providing solutions to various banks in the country.
"We have finalised the consultant. It is Ernst and Young," Indian Overseas Bank Chairman and Managing Director M Narendra told reporters here.
Bank officials said all banks have to purchase IT solutions like Finnacle, Bank 64 for providing banking services. However with the indigenously developed programme, IOB would offer it through the subsidiary.
Through this appointment, the consultant would advice the Bank and help identify the right potential partner for setting up the IT subsidiary.
In last November, the bank announced plans to launch a separate IT subsidiary. By offering this service, IOB would be able to make Rs 300-400 crore.
The hardware investment (for offering the service) was around Rs 45 crore and the Bank's IT department has a strength of about 250 people.
The bank has also provided the Expression of Interests for launching the subsidiary. It would hold a majority stake in the subsidiary, he had then said.
On the recent launch of loan for gold scheme, Narendra said a sum of Rs 400 crore was given within three months of launching it in 30 centres. "We are looking at increasing the counters from 30 to 100 by year-end," he said.
On expansion plans, he said they would open 400 branches and 1,000 ATMs by this year. Currently, Indian Overseas Bank has 2,200 branches and 1,043 ATMs across the country.
"We have finalised the consultant. It is Ernst and Young," Indian Overseas Bank Chairman and Managing Director M Narendra told reporters here.
Bank officials said all banks have to purchase IT solutions like Finnacle, Bank 64 for providing banking services. However with the indigenously developed programme, IOB would offer it through the subsidiary.
Through this appointment, the consultant would advice the Bank and help identify the right potential partner for setting up the IT subsidiary.
In last November, the bank announced plans to launch a separate IT subsidiary. By offering this service, IOB would be able to make Rs 300-400 crore.
The hardware investment (for offering the service) was around Rs 45 crore and the Bank's IT department has a strength of about 250 people.
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The bank has also provided the Expression of Interests for launching the subsidiary. It would hold a majority stake in the subsidiary, he had then said.
On the recent launch of loan for gold scheme, Narendra said a sum of Rs 400 crore was given within three months of launching it in 30 centres. "We are looking at increasing the counters from 30 to 100 by year-end," he said.
On expansion plans, he said they would open 400 branches and 1,000 ATMs by this year. Currently, Indian Overseas Bank has 2,200 branches and 1,043 ATMs across the country.
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