Two of India’s largest banks reportedly are looking to outsource the management of their ATM networks.
Local newspaper Business Standard reported Sept. 17 that Mumbai-based State Bank of India Ltd. is seeking bids for the management of its network of 20,000 existing ATMs and for the 5,000 new ATMs it plans to add by the end of this year.
Mumbai-based ICICI Bank Ltd., the country’s largest private-sector bank, also is looking to outsource the management of its ATM network, according to the report, which indicated the bank had reduced the list of potential suitors to manage its 5,600 ATMs to Chennai-based Financial Software and Systems Pvt. Ltd. and Diebold Inc.
Stock analysts in various research notes claimed that the two deals would be worth 45 billion rupees (US$974 million or 746 million euros) and 10 billion rupees respectively.
However, both State Bank of India and ICICI Bank declined to confirm these developments when contacted by PaymentsSource.
Outsourcing of ATMs has become a growing topic in the Indian banking sector in the wake of rule changes from the Reserve Bank of India that have loosened requirements for ATM networks (
Mumbai-based Axis Bank earlier this year struck a deal to outsource the management of its 5,500 ATMs to two firms, AGS Infotech Pvt. Ltd. and Prizm Payments Pvt. Ltd., over the next 18 months (
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