Indian Overseas Bank JV to market software solutions

Public sector lender Indian Overseas Bank (IOB) plans to form a joint venture (JV) company to market in-house developed software solutions to other banks by the end of September.

The company also aims to open 800 new branches by the end of the next year and plans to add around 3,500 new employees.

IOB has shortlisted five information technology (IT) companies for the joint venture, along with two technical consultancy firms to guide the bank through the deal, said General Manager M S Raghavan. “We would choose the partner from the list soon and the target is to float the new company by September 30, subject to regulatory approvals,” he said.

The bank would use the support of consultancy firms to deal with the IT firms.The bank would also use the JV to look at taking its solutions to overseas markets.

It has already received preliminary inquiries from Africa and some small banks in Europe. The bank aims to sell software and core banking solutions to co-operative banks in India and in Bangladesh and Europe, Raghavan said.

“We are in the process of selecting the consultant and the partner,” said Chairman and Managing Director M Narendra. The bank plans to introduce an image-based check clearing facility in Chennai soon. It would later extend the new technology to all its branches across south India, he added.Narendra said the bank would recruit around 1,500 clerks, 1,500 officers and another 525 specialist officers in 2011-12.

The bank launched the interbank mobile payment service (IMPS), a real time fund transfer facility through mobile phones, and a short messaging service-based customer grievance redressal system. IMPS is an alternative delivery channel for the transfer and receipt of funds by IOB customers to and from customers of 19 other banks, which are members of the National Payment Corporation of India. The grievance redressal system would offer customers a reply to a complaint from the regional bank official within half an hour and the complaint would be addressed within soon, according to bank officials.