Dena Bank to invest Rs 150 cr for tech platform

Dena Bank plans to roll out a core banking platform across its 1,100 branch network in next the two years. It has roped in consultancy outfit Ernst & Young to draw a roadmap to implement the integration solution.

"We have selected E&Y as advisor for core banking platform last month and will float request for proposals from vendors by the end of this month," Dena Bank chairman and managing director M V Nair said. The estimated cost for software, hardware, integration and training for core solution is about Rs 150 crore.

Initially, about 200 branches would be brought on platform by September next year. Dena would bring the remaining 900 branches on core platform by September 2007.

This would be done at locations which have high business volumes. The technological upgradation would have a significant impact on the fortunes of the bank, since the technology platform would drive efficiencies and help the bank to compete better.

Dena Bank is a relatively late comer in this field as most of the commercial banks have either put in place core banking solutions integrating their branch network or are in the process of doing so.

Asked about the late start for rolling out core banking solution, Nair said the bank would benefit from the sharp drop in product price due to competition among the vendors.

It is possible to cover a large network within a short period of 12 months due to significant knowledge and skills that would be available in the banks due to training, he said. After the completion of the project, data will be processed at centralised location and at reduced response time, he added.

Also the staff, freed from the cumbersome paper work at branches would be suitably trained to work in marketing products and services, he said.