Public sector bank Canara Bank will be signing a ₹3,000 crore IT transformation deal to revamp and enhance its tech infrastructure, according to sources familiar with the development. 

In a highly competitive bidding race, global tech giants IBM and its managed infrastructure services spin-off Kyndryl are the frontrunners, positioning themselves to secure the partnership, per sources.  

The partnership will aim to modernize and enhance Canara Bank’s technological capabilities, enabling it to provide efficient banking solutions to its customers. businessline could not determine the timeline of the deal. Detailed queries sent to Canara Bank did not elicit a response. 

Recently, in an interview with businessline, K Satyanarayana Raju, MD and CEO of Canara Bank had said that the bank is highly focused on its digital journey and derives high value from the same. 

He noted that over the last three years, Canara Bank has significantly on new technology initiatives. For the current year alone, the spending has been ₹1,200 crore. The bank aims for 90 per cent of its RAM (Retail, Agriculture, and MSME) transactions to go digital from end to end by March 2024. 

The public sector bank has been one of the early adopters of tech capabilities. Over a year and a half ago, it was the first to proactively create dump data analytics to monitor deficiencies. With its digital journey, Canara Bank aims to be the best retail bank in public sector space and attract the younger generations.

In the last quarter(Q4), Canara Bank posted a 90 per cent increase in net profits to ₹3,175 crore, compared to ₹1,969 crore in the same quarter last year. Its net interest income (NII), the difference between interest earned and interest expended, went up by 23 per cent y-o-y to ₹8,616 crore compared to ₹7,006 crore in the corresponding quarter of last year.

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