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Canbank Computer seeks capital infusion

Vishwanath Kulkarni

BANGALORE, Dec. 5

CANBANK Computer Services Ltd (CCSL), a banking software development company promoted by a consortium of six banks led by Canara Bank, is seeking additional capital infusion of Rs 4.76 crore from the promoters to expand its operations. The company plans to go global and tap the market in the West Asian, African and Asian countries.

Mr S.V. Kamath, Managing Director, CCSL, said the additional capital would be utilised to market the company's products abroad, expand developmental activities and launch new products. The company is also on the look-out for a partner who can provide tec hnological inputs and also help in marketing its products abroad.

About 19 per cent of the company's unsubscribed capital has been earmarked for the technology partner. Canara Bank holds a 51 per cent stake in CCSL, whereas Bank of Baroda has a 10 per cent stake while Vijaya Bank, Vysya Bank, Karur Vysya Bank and Laksh mi Vilas Bank have a stake of five per cent each. CCSL was set up in 1994 to fill the void perceived by these banks in the areas of software solutions for day-to-day banking in the aftermath of economic liberalisation.

CCSL has an authorised capital of Rs 10 crore and a paid-up capital of Rs 3.24 crore. With the additional capital infusion, which is likely to happen by the end of the current financial year, the company's paid-up capital is expected to go up to Rs 8 cro re, said Mr V. Krishnan, Executive Vice-President.

The company has recently come out with two new products -- Advances 2000 and Deposits 2000 -- targeted at the regional and co-operative banks. It has also upgraded and Web-enabled its integrated branch banking software for total automation of branch operations and ALPM (advanced ledger posting machine) for partial branch computerisation, Mr Krishnan said.

CCSL now plans to come out with credit appraisal systems for the next financial year. It is also working on Oracle-based applications for credit card and for register and transfer (R&T) of shares, he said.

The company also expects to come out with a software package for NPA management in a month or two, Mr Krishnan added. It is also planning to double its manpower from the present 80 in the next six months.

The company is also looking at the possibility of leveraging its parent Canara Bank's brand name for branding of its products. ``We are yet to decide on this,'' Mr Kamath said.

The company expects to make a marginal profit of Rs 10 lakh on an anticipated turnover of Rs 4 crore for the current financial year. Last year, the company registered a higher revenue of Rs 4.5 crore because of the Y2K projects for the domestic market.