Thaindian News

Chennai, May 25 (IANS) Moving ahead with its plans to float a banking software subsidiary, the city-based Indian Overseas Bank (IOB) has short-listed consultancy firm Ernst and Young to assist in its new endeavour, the bank’s top official said.

Speaking to reporters here, Indian Overseas Bank CMD M. Narendra said: “We have short-listed Ernst and Young as the consultant for the project. The bank board will take a formal decision on this.”

IOB’s core banking solution (CBS) was developed in-house and the decision to float a separate subsidiary was taken when another bank approached it for the banking software.

As the bank was not in the business of selling software, it was not able to do that. But a separate subsidiary will enable it to vend its software.

Officials told IANS that Ernst and Young will first value the bank’s CBS which will be the bank’s investment in proposed software subsidiary.

The consultancy firm will also study the financial position of the probable partners who have been short-listed by the bank and work out the other modalities of forming a joint venture.

Narendra said the bank will add 400 more branches this year taking its total network to 2,600.

“We will also add 1,000 ATMs (automated teller machines) this year to our current 1,403 ATMs,” Narendra said.

Officials told IANS that the bank has a mix of own ATMs and hired ones.

Earlier, the bank launched two cards partnering with American Express Banking Corporation to meet the needs of its high net worth customers.

Speaking about the new venture, Shailesh Baidwan, country manager and head of consumer card, American Express, said the two cards will first be distributed to IOB’s customers in cities like New Delhi, Mumbai, Chennai and Bangalore.

He said American Express is planning to sign up similar partnership deals - two or three - for the east region.