The vendor says it has installed a hardware platform to bring UBI's 2274 branches and 135 extension counters under a common IT framework.

IBM moved hosting of UBI's core banking application from a Sun Solaris platform to its pSeries servers. The project also involved migration of data from Hitachi Storage to IBM DS 8300 systems.

Since the agreement was signed in February, 1211 of the bank's branches and extension counters have come under UBI's core banking network, with the rest to follow.

UBI chairman and MD M V Nair says the bank needed to move to a centralised environment to meet growth objectives.

"Centralising our extensive branch network under a common IT platform is a complex undertaking, requiring significant infrastructure management expertise and experience," says Nair. "IBM was best equipped to develop and execute a strategy that is focused on eliminating the risk associated with change, reducing investment cost and providing an appropriate return on investment over the entire lifecycle of the project."

IBM says its infrastructure will provide UBI with greater flexibility to respond to customer demands and will lower IT management costs. The new system will also provide consistent, real-time data and information on demand.

As part of the project, IBM says it will help set up a help desk for core banking users across all branches and provide facility management including network management and 24x7 support and maintenance of core infrastructure at all sites.

In addition, IBM Global Technology Services will provide the bank with disaster recovery and business continuity services.

UBI is one of India's largest state-run banks. According to press reports the bank is looking to add over 200 branches to its current network during its current fiscal year.