Canara Bank to sign ₹3,000 crore IT transformation deal
public sector bank Canara Bank It will sign an IT transformation deal worth Rs 3,000 crore to revamp and enhance its tech infrastructure, according to sources familiar with the development.
In a highly competitive bidding race, global technology giants IBM and its Kyndryl managed infrastructure services are the front runners, positioning themselves to secure the partnership, per source.
The partnership aims to modernize and enhance Canara Bank’s technological capabilities, enabling it to offer effective banking solutions to its customers. Business line The transaction schedule could not be determined. Detailed inquiries sent to Canara Bank did not elicit a response.
Recently, in an interview with Business lineK Satyanarayana Raju, Managing Director and Chief Executive Officer Canara Bank said the bank is very focused on its digital journey and is deriving high value from that.
He noted that over the past three years, Canara Bank had significantly new technology initiatives. For the current year alone, the expenditure is at Rs 1,200 crore. The bank aims to convert 90 percent of RAM transactions (retail, agricultural, small and medium) to end-to-end digital transformation by March 2024.
The public sector bank has been an early adopter of the technology capabilities. Over a year and a half ago, it was the first to proactively create dump data analytics to spot deficiencies. Canara Bank through its digital journey aims to be the best retail bank in the public sector and to attract the younger generations.
In the last quarter (Quarter IV), Canara Bank records 90 per cent increase in net profit to ₹3,175 crore, compared to ₹1,969 crore in the same quarter last year. Net Interest Income (NII), the difference between interest earned and interest disbursed, increased by 23 per cent YoY to ₹8,616 crore as compared to ₹7,006 crore in the corresponding quarter last year.