Union Bank ties up with Infosys, Wipro

IRIS

Union Bank of India today announced its tie-up with Infosys Technologies and

Wipro Infotech as part of the bank’s IT strategy to implement core banking

solution. The bank is also planning to launch its initial public offer (IPO) in

mid-July.

The decision to implement the core banking solution with a centralized

database for inter-branch connectivity was taken by the bank last year. The bank

will invest a total sum of Rs 150 crore in the project.

All the three major partners in the project - Union Bank, Wipro and Infosys -

are committed to successful and timely implementation of the project, which will

enable Union Bank to emerge as a major IT-driven bank with technology as the key

competitive differentiator enabling 24x7x365 banking.

Wipro Infotech will be the prime integrator responsible for end-to-end

implementation and integration of the centralized core banking solution and will

be associated with the IT infrastructure. The solutions to be integrated by

Wipro include the core banking solution from the Infosys stable Finacle and

Internet banking product Bankaway, FSS, Chennai for ATM switch and BK Solution,

Chennai for telebanking systems.

The bank proposes to roll out 20 branches this calendar year and thereafter

bring in quick-to-roll out other centers and branches. The bank is targeting 500

branches in 36 months, capturing 60 per cent of its business in about 50 centers

and 1,000 branches in 60 months.

Wipro will be the prime vendor responsible for program management and system

integration covering:

End to end management



Providing software application components


Customization and parameterization of the solution


Providing hardware equipment


Complete system integration





Infosys, will provide its solutions Finalce and BankAway. Finacle is a
browser-based centralized and integrated corporate, retail and trade finance

solution designed to create a flexible and scalable technology platform for the

bank. The solution is multi-currency, multi-platform and work flow-enabled. The

other supporting solution BankAway is an e-commerce solution, which empowers

banks to harness the tremendous potential of the Internet.

Speaking on this occasion, Union Bank of India, chairman and managing

director, V Leeladhar said, ‘We have aggressive plans to transform ourselves

into a highly customer-focused and a dynamic, new-age bank. The focus of these

initiatives is to give customers a wide variety of choice in terms of products

and delivery channels.’

Speaking about the IPO, Leeadhar said that pricing of the IPO has not yet

been finalised. However, there is a possibility of a premium of Rs 10. The total

size of the IPO is likely to be Rs 300 crore, out of which Rs 150 crore would be

by way of premium. Part of the fund raised through the IPO may be used for the

IT initiative.

The government currently has a 100 per cent stake in the bank and its stake

is likely to come down by 33 per cent after the IPO.

Source: myiris.com