Dynacons Systems & Solutions shares fly 13% on Rs 108-cr order from NABARD

The rise in the Dynacons Systems & Solutions share price came after the company announced that it has secured an order worth Rs 108 crore from the NABARD

Dynacons Systems & Solutions share price: Dynacons Systems & Solutions shares rose as much as 12.81 per cent to hit an intraday high of Rs 1,345.55 per share on Wednesday, October 30, 2024.

 

The rise in the Dynacons Systems & Solutions share price came after the company announced that it has secured an order worth Rs 108 crore from the National Bank for Agriculture and Rural Development (NABARD).

 

NABARD is India’s apex development bank dedicated to advancing rural and agricultural growth, plays a critical role as a mentor and facilitator in implementing core banking solutions within the rural financial sector. 

 

 

In an exchange filing, the company said, “Dynacons Systems & Solutions Ltd (Dynacons), a leading technology solutions provider in India, is pleased to announce a significant follow-up contract valued at Rs 108 crore with the National Bank for Agriculture and Rural Development (NABARD).”

 

“The contract builds on Dynacons' successful collaboration with NABARD and encompasses the upgradation and migration of NABARD’s Core Banking Solution (CBS) from Finacle 7.0 to Finacle 10.2.25, utilising the Application Service Provider (ASP) model,” Dynacons Systems & Solutions said in a statement.

 

Through this engagement, Dynacons Systems & Solutions will support 615 branches across 20 State Cooperative Banks and District Central Cooperative Banks in Haryana. The contract entails a comprehensive range of services, including consultancy, implementation, customization, and ongoing support to ensure a seamless transition with minimal operational disruption. The project will not only involve upgrading and migrating the Core Banking Solution but also enhancing the infrastructure and networks with advanced technology from leading vendors such as HPE, Oracle, Fortinet, Array, and Versa.

 

“We are deeply honoured by NABARD’s continued trust in Dynacons with this follow-up order. Our expanded Core Banking as a Service platform is specifically designed to meet NABARD’s needs for scalability, security, and operational agility across the rural banking landscape. This project reaffirms our commitment to deploying innovative technology that empowers public sector organisations to deliver greater value and inclusivity across India,” said Parag Dalal, executive director of Dynacons Systems & Solutions.

 

Dynacons Systems & Solutions aims to leverage its expertise in core banking and digital infrastructure to maximise the benefits of the upgraded Finacle platform for NABARD and its affiliated banking institutions. 

 

Moreover, the contract is structured on an Operating Expense (OPEX) basis, ensuring predictable, recurring revenue over its five-year duration, which fosters a financially sustainable and mutually beneficial partnership. This model enhances budget predictability and aligns Dynacons' incentives to continuously improve its services while supporting NABARD's strategic objectives.

 

Additionally, other cooperative banks associated with NABARD will have the opportunity to participate in this modernisation initiative, facilitating widespread digital transformation within the cooperative banking sector. The proposed solution will implement CBS (Finacle 10.2.25) on Dynacons Cloud, which includes deploying hardware, databases, middleware, network components, third-party utilities, and a thorough testing phase. The five-year agreement also encompasses extensive maintenance support for NABARD and the associated state cooperative banks, featuring dedicated onsite skilled resources and adherence to strict Service Level Agreements (SLAs).

 

At 11:55 AM, Dynacons Systems & Solutions shares were trading 8.08 per cent higher at Rs 1,289.10 per share. In comparison, BSE Sensex was trading 0.14 per cent lower at 80,254.65 levels.