IT majors vie for Dena's Rs 200 cr technology deal

Four information technology majors, Tata Consultancy Services, Wipro, Hewlett-Packard, and IBM, are in race for state-owned Dena Bank's Rs 200 crore core banking project.

The bank has planned a 100 per cent outsourced model of core banking for 850-900 branches, chairman and managing director M V Nair said on Tuesday.

"We have shortlisted these four companies (TCS, IBM, Wipro and HP) as the prime vendors, and are currently conducting a technical evaluation," said Nair. "Based on that, we will shortlist further, and then open for commercial bids."

The entire project, including its software, hardware requirements, implementation, deployment, security management, will be outsourced to the vendor, which wins the bid.

The bank, which was advised by Ernst & Young, plans to roll out the core banking solution in three stages.

"In the first (stage), we will roll out the CBS in 200 branches, which will cover 60-65 per cent of our business," Nair said.

In the second stage, the bank plans to scale up the project to cover another 300 branches, bringing 90% of its business under core banking. In the third stage, its rural branches are to be core-banked, which includes the remaining 350-400 ranches.