Headlines:
State Bank of India Using SAP Software Henderson, Chase in Outsourcing Deal Digital Insight Buying Back More Shares N.Y. Community Licenses Metavante Tools
State Bank of India Using SAP Software
SAP AG has licensed its enterprise resource planning software to State Bank of India, the country's largest commercial bank, which will use it to automate its human resource management.
The Walldorf, Germany, vendor announced the licensing deal Tuesday in Paris at its Sapphire '06 international customer conference. Gerhard Hafner, SAP's vice president of field services for Europe, the Middle East, and Africa, said State Bank executives signed the contract last month after deciding at the end of last year to use the software.
State Bank will initially use it for remote learning and virtual classrooms, which could be running within four months, Mr. Hafner said.
Eventually, the bank, which has 370,000 employees and retirees in 29 countries, plans to use the software to keep track of functions such as succession planning and talent, career, and property management.
Henderson, Chase in Outsourcing Deal
JPMorgan Chase & Co. agreed to provide hedge fund middle- and back-office services to Henderson Global Investors, a London unit of Henderson Group PLC.
The New York banking company announced the multiyear contract Tuesday but did not disclose its value. It covers 14 hedge funds with $2 billion of assets.
A spokeswoman for JPMorgan Chase said the transfer of operations to its JPMorgan Hedge Fund Services should be complete by the end of next quarter.
The unit's London office will provide daily operational services and fund administration services.
Henderson had $126.3 billion of assets under management as of Dec. 31.
The contract is JPMorgan Chase's first since it bought the middle- and back-office operations of the Greenwich, Conn., hedge fund operator Paloma Partners Management Co. on March 1. Paloma signed a multiyear contract to outsource the processing work it had been doing for itself to JPMorgan Chase.
When it bought Paloma, JPMorgan Chase said outsourcing was a way to get into the booming market for hedge funds and alternative investment services without competing directly against the prime brokerages that execute most of the funds' trades.
Digital Insight Buying Back More Shares
The Calabasas, Calif., online banking technology provider Digital Insight Corp. has begun its second $50 million stock buyback program of the year.
The new program, announced last week, will conclude within 12 months.
Digital Insight completed two $25 million buyback programs last year, and on Feb. 15 its board approved a $50 million one that it completed May 18.
Under that program, Digital Insight bought back 1.49 million shares at an average price of $33.50 each. The average price for all three completed programs was $24.79.
"Our business continues to generate significant cash flow from operating activities," Jeff Stiefler, Digital Insight's president and chief executive, said in a press release.
The cash flow provides "adequate financial flexibility to pursue strategic growth objectives and repurchase shares at attractive valuations."
N.Y. Community Licenses Metavante Tools
New York Community Bank of Westbury has agreed to use risk management and compliance software from Metavante Corp. of Milwaukee.
The bank will use five products designed to track a bank's compliance with laws such as the Bank Secrecy Act and the USA Patriot Act, the Marshall & Ilsley Corp. unit announced Tuesday.
Metavante said the New York Community Bancorp Inc. unit will use BSA Reporter, an anti-laundering product; EDD Reporter, which is designed to help banks meet the Patriot Act's enhanced due diligence mandates; OFAC Reporter, for meeting the Office of Foreign Assets Control's requirements; Legal Reporter, for researching responses to subpoenas; and Prime Compliance Databank, which provides data used by other products in the vendor's suite.
