Public sector lender Indian Overseas Bank has resumed work on technology upgradation and allocated about Rs 300 crore for the purpose, a top official has said.
"(Core banking solution) CBS platform is likely to be implemented by end of this year or early next calendar year. We have alloted Rs 300 crore to be spread across a seven year period for it", Indian Overseas Bank MD and CEO R Koteeswaran told PTI here.
The Chennai-based bank, under former Chairman and Managing Director M Narendra, had taken steps to upgrade the CBS platform and had appointed global firm Ernst and Young as the IT consultant for the project few years back.
Asked whether there was any delay in this regard, he said "they (previous team) have conceptualised it, I am implementing it. I don't know the reason for the delay. But we are working on it. Right now the training is going on".
According to bank officials, Indian Overseas Bank would be implementing Finacle banking software provided by IT major Infosys.
To a query, Koteeswaran said, "We are expecting the work to be completed by September. By October we should begin and I believe by early next year we should have completed full implementation of CBS facility."
The facility is to be maintained for seven years by Infosys.
Earlier, speaking to reporters regarding the bank's performance, he said the net profit declined due to high NPAs (non-performing assets) slippages in previous quarters.
"About 60 per cent of the bank's NPA is lying in power sector which is about Rs 10,592 crore. Some of the other sectors where we have seen NPAs are in infrastructure, iron and steel", he added.
