Canara Bank ties up with i-flex and IBM for core banking

BANGALORE: Indian banking major Canara Bank has announced its tie-up with i-Flex Solutions and IBM for implementing core banking solution “Flexcube”. The first phase of the implementation to be completed in the next 12-13 months would cover 1053 branches, across the country.

Addressing the media, MBN Rao, CMD, Canara Bank said that the hardware cost of the implementation alone is worth Rs 100 crore. However, he declined to reveal the total value of the deal. Rao said the rest of the bank's branches would be covered in the second phase of the project. “ Our main objective is to take technology to the rural areas of India,” he said.

IBM, the systems integrator for the project would be responsible for implementing hardware and software, managing data centers, disaster recovery and maintenance for a period of eight years.

Meanwhile, this deal has put to rest market speculation about which banking software company would win this fiercely contested account.

Oracle's move to gain a majority stake in I-flex seems to have paid for the latter which managed to counter Infosys' bid to push its Finacle product for the deal. The deal announcement is a setback for Infosys whose chief mentor NR Narayana Murthy sits on the board of RBI and a fervent advocate of technology implementation in nationalised banks.

Canara Bank, which does business worth Rs 1,60,000 crore, has more than 2500 branches and a customer base of over 26 million. The core banking solution would enable Canara Bank customers to access their accounts at any branch and other delivery channels virtually. Other features include multi-city cheques, real time intra- and inter-bank fund transfers across branches.