Thane Janata Sahkari Bank (TJSB), the leading urban cooperative bank in Maharashtra, plans to form a subsidiary to provide IT related services to cooperative and small private banks and help them shift to core banking solutions.
Companies providing solutions to banks for implementing core banking system were basically software companies who lack the banking perspective, said Chairman Vidyadhar Vaishmpayan.
The subsidiary will be fully owned by TJSB with a share capital of Rs 25 crore. The bank would transfer its data centre and consultancy business to this new subsidiary after getting the necessary RBI clearance, Vaishampayan said.
“TJSB has been implementing core banking system since 2005. So we felt we are in a better position to understand the needs of the banks and use our expertise gained over the last four years to benefit other banks and start a new stream of income for us in this competitive market,” he added.
The bank with a turnover of Rs 3,800 crore has a network of 41 branches in Mumbai, Pune, Nashik and Thane.
Core banking solution helps a bank in optimising its human resources. There are around 100 cooperative banks in Maharashtra.
“This is currently an untapped market and we feel that there is a scope for our new IT company to grow in this segment,” he added.
