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IDBI Bank launches Rs 750-m IT initiative

NetScribes/Radha Ganesan

IDBI Bank has kicked off a two-year, Rs 750-million IT initiative to reposition its corporate banking activities and increase focus on retail banking. The bank plans to begin retail sales from the third quarter of FY02.

Gunit Chadda, MD and CEO, IDBI Bank told NetScribes that investments in technology would equip the bank with the right infrastructure to offer convenient accessibility and superior products to customers.

"We expect all our IT plans to be completed by the end of the second quarter so that we can then start off our sales activities in the next quarter," he said.

The bank has deployed Finacle - the latest banking software from Infosys Technologies. "Implementation of Finacle has already commenced and by June 30, 2001, we expect all the branches to be integrated technologically," said Vinit Kohli, CFO, IDBI Bank.

IDBI Bank has 53 branches across 39 cities in the country. The bank launched its SMS and WAP-enabled mobile banking service in the second half of FY01 and currently boasts of 4,000 customers in 29 cities across the country.

While Reuters' risk management product Kondor+ will be used for the bank's treasury, trading and risk management requirements, the treasury back office automation will be done by Synergy Log-In Systems' Integrated Treasury Management Systems.

"Technology provides us the scope to do business at a wider range," said Kohli.

By the end of the first quarter of FY02, the bank plans to launch cash management services using Cash Tec and corporate risk assessment services using Crisil's in-house software.

For the second quarter of FY02, the thrust of the technology initiatives will be on retail banking, including Internet banking, tele-banking, ATM expansion and networking.

Infosys is providing Bancaway for the bank's Internet banking plans. By June 2001, the bank plans to launch its upgraded tele-banking product across 17 centres with latest software from BK Systems.

The bank has signed a contract with NCR Corporation for supply of 200 higher-end ATMs over the next 18 months to add to its existing 77 ATMs.

The bank is also migrating to an Open Architecture "Oasis" ATM Switch capable of providing features like bill presentation payment and personalised messaging.

Other things lined up for the second quarter of FY02 include networking of the banking systems offered by Talisma and Network Solutions, fixed asset systems, payables systems, FTP and ALM.

Being a late starter on the tech front vis-a-vis other private sector banks has helped IDBI Bank get software and hardware services at a much lower cost.

"We have bought some software services at 35 per cent of the amount that other banks spent a few years ago," said Kohli, quickly adding that was no justification to begin late.

In line with its increased emphasis on IT, the bank has started technology training sessions for its employees across the country.

"Our plan is to train 650 people, of which 450 people have already gone through the training session so far," said Chadda.

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