CHENNAI: Banking operations of Indian Overseas Bank (IOB) have just become more cutting-edge. Last month, January 25, to be precise, IOB has emerged as the country’s first public sector lender to implement the latest version of Core Banking Solution (CBS) across all its 3,500-odd branches.
CBS allows customers to perform banking transactions like accessing accounts, payments on loans etc from any of the member branches. This is possible as CBS centralises bank’s record keeping and thereby enables seamless support.
Hitherto, IOB was running on an in-house software platform implemented almost a decade ago and had outlived its life. “We were losing customer support as machines were crashing often at crucial hours. There were frequent breakdowns. The new platform ensures that we offer uninterrupted service and offer optimum customer convenience and satisfaction,” R Koteeswaran, MD & CEO, IOB told Express.
He added that the new platform, put together by Infosys Technologies and Hewlett Packard Enterprise, will help the bank in improving its current and savings accounts (Casa) ratio, which has been flat for sometime now. Improving Casa is crucial as a higher Casa ratio implies higher portion of the deposits come from current and savings deposit, which is generally a cheaper source of funds. A higher Casa ratio also means, the bank’s net interest margin is healthy and leads to better operating efficiencies.
“One of the first things I had put thrust on, soon after taking over reins last January was the Casa ratio. It has been flat for more than three years and there was no growth in percentage terms. With improved customer service, we hope business will prosper now,” Koteeswaran said.
In fact, some of the effects seem visible with IOB’s Casa ratio jumping from 23.76% as on September, 2014, to 26.14 % as on September, 2015.
Meanwhile, the bank is also proposing to set up self passbook printing kiosks across 700-800. The bank’s internet transactions are also surging. From an average 37,673 internet transactions a day last year, the number shot up to 65,664 this year.