Axis Bank inks largest ATM outsourcing deal

In what is the largest ATM outsourcing deal in the country,Axis Bank has entered into an agreement with two third-party service providers to increase its ATM count to more than 9000 within the next 18 months. The country's third largest private sector lender has signed contracts with Prizm Payment Services and AGS Infotech to set up and manage 5000 ATMs on a purely variable model according to someone with knowledge of the development. Axis Bank had 4293 ATMs as on 31st March, 2010.Prizm will set up 3500 ATMs while AGS Infotech will set up 1500 ATMs. Since it is a fully outsourced deal, the bank will not incur capital expenditure.The ATMs will be owned and managed by the two service providers.Axis Bank will only be responsible for cash settlement and will pay the service providers a fee per transaction.(BS 16052010)

Bank of Rajasthan to merge with ICICI Bank

Bank of Rajasthan is to be merged with ICICI Bank.The boards of both banks which met separately granted in-principle approval for the merger.In a statement, ICICI Bank said it has entered into an agreement with certain shareholders of the BOR for amalgamation of the bank with itself with a share swap ratio of 25:118.The merger is not likely to have any material impact on ICICI Bank's capital and the only advantage is a readymade branch network. Post merger ,ICICI Bank's branch network would go up to 2463. This is the third merger for the bank after it took over Bank of Madura and Sangli Bank.(BL 19052010)