IOB to set up IT subsidiary to develop banking technology

Public sector Indian Overseas Bank (IOB) plans to set up an IT subsidiary by hands with an IT company to develop banking technology, a top bank executive said here today. IOB has appointed an IT consultant for selecting a partner for the bank in the joint venture, which would be in the nature of research and development, IOB Chairman and Managing Director M Narendra said. The bank now uses technology developed in-house for its major services and the plan was to build up more cost-effective banking technology, he said. IOB would also impart the new technology for other banks and also to financial institutions in developing countries for a price, he said, adding it would submit its proposal on the venture to RBI soon. The bank aimed to open 400 new branches across the country, mostly in semi-urban and rural areas, in the near future and also planned to expand its number of ATMs in the country to 3,000. At present, the bank has 1,152 ATMs including 346 offsite ATMs, he said. The business level of the bank touched Rs 2,71,160 crore as on June 30 last against a business turnover of Rs 2,59,000 crore registered in March 31, 2011, Narendra said. As part of its initiatives to improve services, the process of recruiting 1,000 probationary officers, 525 specialist officers and 1100 clerks was under way, Narendra said.

http://www.mydigitalfc.com/news/iob-set-it-subsidiary-develop-banking-technology-253