Dynacons Systems shares hit 20% upper circuit on ₹233 crore order win from NABARD
Upstox
2 min read • Updated: April 16, 2024, 5:45 PM
Summary
The project involves upgrading core banking solutions (CBS) for 1,391 branches of 38 state co-operative banks across 8 states, Dynacons informed the stock exchanges.
Dynacons Systems and Solutions Ltd shares surged 20% on Tuesday, April 19, to hit the upper circuit limit after the company announced securing a significant contract worth ₹233 crore from the National Bank for Agriculture and Rural Development (NABARD).
The leading technology solutions provider, in a stock exchange filing, said that the contract pertains to the upgradation and migration of Core Banking Solution (CBS) from Finacle 7.0 to Finacle 10.2.25, operating on the Application Service Provider (ASP) model.
The project includes serving 1,391 branches of 38 state co-operative banks across 8 states, Dynacons Systems informed the stock exchanges.
After the announcement, shares of Dynacons Systems and Solutions surged 20% to hit the upper circuit limit and all-time high level of ₹1,131.95 apiece on the NSE. The stock also touched its all-time high level of ₹1,133.4 per share on the BSE.
NABARD, the state-owned development bank dedicated to fostering rural and agricultural development, will further enhance the efficiency of its operations and provide superior banking services through this deal.
"This project further underscores NABARD's commitment to embracing cutting-edge solutions to enhance operational efficiency and deliver superior banking services," the exchange filing said.
Offering a comprehensive suite of services like consultancy, implementation, customization, and ongoing support as part of the contract, Dynacons also ensures smooth transition with minimal disruption to daily banking activities and maximising the functional benefits of the new system.
The scope of the project includes Core Banking Solution upgrade, migration and maintenance as well as infrastructure and network enhancements from leading technology vendors such as HPE, Oracle, Fortinet, Array, and Versa.
The contract spans over 5 years and the proposed solution entails implementing CBS (Finacle 10.2.25) in NABARD Data Centre, Disaster Recovery Centre and associated banks.
"The contract spans over 5 years, with ongoing maintenance support provided to NABARD and associated state cooperative banks, featuring onsite skilled resources and committed Service Level Agreements (SLAs). The current version of Finacle 7.0 application was supplied and managed by Wipro for last 10 years," Dynacons Systems said in a press release.