SBI adopts core banking system

Mumbai: State Bank of India (SBI) is targeting a 15 per cent reduction in transaction costs by March 2006, with the help of Tata Consultancy Services (TCS).

Over 250 branches of the bank went live on Wednesday, on the centralised core-banking system (CBS) implemented by TCS, SBI's prime systems integrator for the core-banking and trade finance technology solutions.

By March 2005, 2,000 branches across the country will be brought under the CBS, covering 60 per cent of the bank's business. By 2006, the bank expects to cover 90 per cent of the business under the CBS.

"One of the biggest benefits from moving to the core-banking system is that the transaction costs will be sufficiently reduced, by around 15 per cent to begin with, but much more in due course ", said A K Purwar, chairman, State Bank of India, addressing a press conference.

The CBS solution set being implemented includes BANCs from Financial Network Solutions, Eximbills from China Systems interfaced to each other and the existing legacy solution.

After the full implementation, the CBS will be capable of handling 100 million customers, 1,00,000 users and 25 million transactions a day, officials said.