HDFC Bank logs on to IBM Mainframe

PUNE, INDIA: From now, HDFC Bank can keep its critical credit card processing requirements in-house while offering uninterrupted service to its customers.

It will eliminate additional investments in data center costs and offer the option to migrate other HDFC Bank applications, such as core banking, to System z mainframes. HDFC Bank, has announced an agreement with IBM India to build a cost-effective IT framework that will support the bank’s strong business growth.

It is claimed to be the first commercial bank in India to adopt the IBM mainframe that makes it join the ranks of the world’s top 50 banks that continue to run on System z technology.

HDFC Bank appointed IBM after evaluating the systems and technology from IBM and other vendors. The bank also carried out benchmark tests for its core banking application and systems on the IBM System z mainframe.

The collaboration may also add features on existing credit card products, enabling higher processing speed and quicker response time, scaling up the customer service process and enhance interfacing capabilities with other applications, leading to more features on self-service channels like Internet.

Commenting on the tie-up, Anil Jaggia, Chief Information Officer, HDFC Bank said, “HDFC Bank has a stellar track record of using technology as the key focus element to its banking strategy - delivering significant operational efficiencies and cutting-edge customer solutions. In all our IT investments, we try to seek a balance between adopting the most innovative solutions while keeping our investments as pragmatic as possible.”

HDFC Bank has over 11 million customers across hundreds of Indian cities using multiple distribution channels including a pan-India network of branches, ATMs, phone banking, net banking and mobile banking. As of December 31, 2008, the Bank had a distribution network with 1,412 branches and 3,177 ATMs in 527 cities.