Tata Consultancy Services (TCS) and State Bank of India (SBI) announced the formation of a joint venture to provide advanced technology solutions and world-class domain consulting for the banking and financial services sector. Once incorporated, the JV will be known as C-EDGE TECHNOLOGIES LIMITED and will have an authorized capital of Rs 40 crore.
The JV will have equity participation from TCS and SBI in the ratio of 51:49 respectively with equal participation on the Board of Directors.
The JV's will develop high-value niche assets and solutions by leveraging domain and technology capabilities of the two parent companies. These new assets will complement and leverage TCS' comprehensive suite of banking assets.
Following TCS' recent acquisition of FNS, a banking products company from Australia, the new JV will also play a key role in deploying FNS products in the role of a preferred systems integrator and leverage the experience both organizations have gained in the core-banking roll-out in the State Bank group.
The JV will offer transformational capabilities to banks and financial institutions in India and other markets by helping them to use technology as a competitive tool in the market place using bureau services and service platforms.
Commenting on the JV, S. Ramadorai, CEO and Managing Director of TCS said, "This is the first major collaboration between two world-class Banking and Technology behemoths and will reinforce TCS' articulated strategy of becoming a full services player and growing our dominant position in the global BFS domain.
"SBI and TCS have a long tradition of working well together and this relationship will now on focus on developing cutting edge financial technologies," added Mr. Ramdorai.
Mr. A.K.Purwar, Chairman of SBI said "Globalization brings new opportunities and this JV is a logical extension to fully utilize the Bank's capabilities, which can serve the State Bank Group as well as other BFS entities worldwide."
"The State Bank Group has excellent banking technology professionals and this venture with our long-standing technology partner, TCS, will help provide them with a platform to exploit their domain knowledge to create exciting new solutions and add great value to the new firm's implementation capabilities," Mr. Purwar added.