Infosys extends downfall; shares dip nearly 2%

Continuing to fall for the second straight session on Wednesday, Infosys' scrip went down by nearly 2% after the company said it will ramp down about 3,000 jobs following Royal Bank of Scotland's decision to cancel the project to set up a separate bank in the UK.

The scrip fell by 1.67% to end at Rs 1,033.40 on BSE. During the day, it lost 1.94% to Rs 1,030.50.

At NSE, shares of the company went down by 1.75% to end at Rs 1,033.30.

Infosys' scrip had fallen by over 1% in the previous session also.

RBS announced last week that it will not pursue its plan to separate and list a new UK standalone bank, Williams & Glyn (W&G), for which Infosys was a key technology partner.

"Infosys has been a W&G program technology partner for Consulting, Application Delivery and Testing services, and subsequent to this decision, will carry out an orderly ramp-down of about 3,000 persons, primarily in India, over the next few months," Infosys had said in a statement on Tuesday.

An Infosys spokesperson clarified that these jobs are not being cut and that the employees will be reallocated to other projects.

RBS is a key relationship for Infosys and the company looks forward to further strengthening strategic partnership and working with them across other strategic and transformation programmes, it added.

While Infosys has not specified the impact of the cancellation, market analysts peg it at around $40 million.