Coastal Infotech eyes SAARC countries

Coastal Infotech Ltd (CIL), the Bangalore-based provider of banking software, is all set to make a foray into the overseas market. The company, which has implemented its software in over 150 credit co-operative banks and societies across the state, is in the advanced stages of securing orders from a couple of leading private banks in Sri Lanka and Bangladesh.

The 10-year-old company is presently finalising the terms of the order with a private sector bank in Bangladesh and the deal is likely to be signed shortly, CIL chairman and managing director K Jagadeesha Pai said.

"After establishing our credentials in the banking software market and making over 150 installations, we decided to make an overseas foray. We have made presentations to several banks in the SAARC region and we expect to sign the first deal in Bangladesh," he said.

After implementing its banking software in mostly district credit co-operative banks, CIL is presently expanding its reach to the scheduled commercial banks and regional rural banks.

"We are actively negotiating with a few private banks in the country and hope to conclude the deal shortly," Pai told Business Standard.

CIL's flagship product "" CILBanker "" is developed after an extensive research into the prevailing practices in the banking sector, especially keeping in mind the needs of cooperative and small banks. It is a customisable software, designed to cater to the banking system as a whole. It also provides interface with ATMs.

"Our software built with an easy menu-driven interface provides for complete branch automation including integration of the various branch offices with the head office of any bank to facilitate easy transaction," Pai said.

CILSociety, another product, is customised software designed to cater to the needs of co-operative societies.

CIL, employing over 50 software engineers, is presently working on the third generation of its flagship product, which will be available by end of the year. The company, which reported Rs 4 crore turnover in 2004-05, is growing at 25 per cent annually.

It has been reporting profits regularly. Last fiscal its profit was about Rs 40 lakh and it paid out a dividend of 14 per cent. In 2003-04, the company issued bonus shares in the ratio of 2.5:1 (one share for every 2.5 shares held).

In an effort to grow rapidly, CIL is looking at acquiring a BSE-listed software company in Mumbai. CIL presently has one development centre in Bangalore and marketing offices in Bangalore, Mumbai, Mangalore.

It plans to open offices in Mysore, Hubli and Belgaum during the present year, Pai added.