Home Economy Andhra cooperative banks join together to save on automation

Andhra cooperative banks join together to save on automation

By IANS,

Chennai: Twenty three cooperative banks in Andhra Pradesh have hit upon a novel idea of using single core banking solution (CBS) and save on hardware and software costs.

“Individually they are 23 entities. But they decided to use single CBS installed at Andhra Pradesh State Cooperative Bank Ltd (APSCOB) in Hyderabad on a multi-entity CBS model thereby saving each individual bank from investing in hardware and software,” Founder and Managing Director of Laser Soft Infosystems B. Suresh Kamath told IANS.

Laser Soft, which bagged the Rs.8.2 crore order (software and maintenance contract), is a subsidiary of another banking software major Polaris Software.

“This is the first time in India cooperative banks are adopting such a practice. In many states each individual cooperative bank would buy the CBS and the needed hardware. Under this model each bank would have saved around Rs.4 crore,” Kamath added.

In Andhra Pradesh, APSCOB is a Scheduled State Cooperative Bank. It has 22 affiliated District Cooperative Central Banks (DCCBs), which in turn, have 569 branches and 2746 Primary Agricultural Cooperative Societies (PACS) through which developmental agricultural credit is provided.