g
last few years. Although 3i Infotech has never given much publicity to new client wins, it did record four new Kastle Treasury customers and three new Kastle Universal Lending customers (one Islamic) in 2009. These included a first customer in Sudan (for Lending), plus wins in Saudi Arabia (Lending), Bahrain (Treasury) and Thailand (Treasury). 3i Infotech also gained a first customer in Saudi Arabia for its wealth management solution, C-Matis. This was at Sedco Capital, which took the solution to cover private equity, real estate and Shari’ah- compliant products in late 2009. By this stage, C-Matis already had six regional references, including in Bahrain, Oman and UAE. 2010 saw Kastle Lending win four of the five Islamic system sales in Saudi Arabia. These comprised Kimaf Investment and Installment Company (loan origination, management and collection), Saudi Investment Bank (loan origination and management), Capitas
Problems and restructuring
It does not seem to have added up to a successful whole and the company had to set about restructuring its debt. It was unable to pay dues on outstanding loans to its banks. In September 2011, the company’s debt totalled about $380 million, and its revenue for the year-ended March 2011 was about $480 million. Much of the debt was in zero coupon (i.e. no interest due to maturity) foreign currency convertible bonds (FCCB), sold in 2007 with five- year maturity periods. A €30 million bond was sold on 26th March 2007, and a $100 million bond was sold in June of that year. Lehman Brothers was the sole book runner on both occasions. The company was unable to convert the bonds into equity as hoped, explained Nagarajan Narasimhan, director of corporate ratings at Crisil, which downgraded 3i Infotech several notches in December 2011. As well as debt-funded acquisitions, the company poured money into geographical expansion and a plan to build Citizen Service Centres, part of an Indian e-government initiative, across the country. In April 2010, 3i Infotech had revealed a pre-tax loss of $50 million on the Citizen Service Centre initiative, which it discontinued. In early April 2011 there were reports in the Indian press that IBM was considering buying 3i Infotech, but neither party went on-record about this.
In terms of sales in 2011, it had eight for its lending system, including
two more with an Islamic aspect. These came at Banque Saudi Fransi and Taajeer in Saudi Arabia, with 3i gaining two of the four Islamic
International (loan origination, management and collection), and Bank Al Jazira (loan origination, management and collection). Other deals in 2010 included NIC Bank in Kenya and an off-the-record deal at a small UK bank, which apparently included some aspects of Kastle Core Banking. The supplier’s strategy is now to integrate the lending and core banking products to provide a full universal banking platform. There were three wins for the treasury system in 2010, at Bank of Africa in Kenya, Allahabad Bank in India plus another in Nigeria (the latter two banks also took Kastle Risk Management). These were described as covering FX, MM, bonds and derivatives. There were also a couple of wins for Kastle ALM (one at Bank Sohar in Oman, which also included Kastle Risk Management).
deals up for grabs in this country. Other wins came in the Philippines, Mauritius and Singapore. There were also four wins for its treasury system, plus another ten or so for AML and a similar number across its range of fund, wealth management and portfolio management systems. There were no new signings for Kastle Core Banking in 2011 although the following year provided a first taker in the Philippines for the solution from Philippine Postal Savings Bank (PostalBank), followed by Myanmar Livestock Fisheries and Development Bank. The company’s annual report for the year-ended 31st March 2012
revealed a post-tax loss of Rs. 334.73 crores on declining revenues. The annual report also spelt out how its debts had been restructured. 15 per cent of its unsecured loans and 20 per cent of its secured loans had been converted into equity, as had interest on the company’s working capital and term loan facilities over an 18-month period; short-term loans had been changed into long-term loans; preference shares had been converted into standard equity shares; and security had been created over some of the company’s assets. The two foreign currency convertible bonds, which 3i Infotech was unable to redeem in April and July 2012, had been extended, becoming five per cent $125 million bonds which were due in 2017. Nonetheless, the first quarter of the new financial year showed scant improvement, with a net loss posted of around $30 million. Net sales in the period were also down 43 per cent on the corresponding period in 2011. Unsurprisingly, there were also changes at a senior management level around the same time. Coming on board were Charanjit Attra (initially as executive director, but later CFO too) and Madhivanan Balakrishnan as global CEO and managing director.
Islamic Report
www.ibsintelligence.com 67
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128 |
Page 129 |
Page 130 |
Page 131 |
Page 132 |
Page 133 |
Page 134 |
Page 135 |
Page 136 |
Page 137 |
Page 138 |
Page 139 |
Page 140 |
Page 141 |
Page 142 |
Page 143 |
Page 144 |
Page 145 |
Page 146 |
Page 147 |
Page 148 |
Page 149 |
Page 150 |
Page 151 |
Page 152 |
Page 153 |
Page 154 |
Page 155 |
Page 156 |
Page 157 |
Page 158 |
Page 159 |
Page 160 |
Page 161 |
Page 162 |
Page 163 |
Page 164 |
Page 165 |
Page 166 |
Page 167 |
Page 168 |
Page 169 |
Page 170 |
Page 171 |
Page 172 |
Page 173 |
Page 174 |
Page 175 |
Page 176 |
Page 177 |
Page 178 |
Page 179 |
Page 180 |
Page 181 |
Page 182 |
Page 183 |
Page 184 |
Page 185 |
Page 186 |
Page 187 |
Page 188 |
Page 189 |
Page 190 |
Page 191 |
Page 192 |
Page 193 |
Page 194 |
Page 195 |
Page 196 |
Page 197 |
Page 198 |
Page 199 |
Page 200 |
Page 201 |
Page 202 |
Page 203 |
Page 204 |
Page 205 |
Page 206 |
Page 207 |
Page 208 |
Page 209 |
Page 210 |
Page 211 |
Page 212 |
Page 213 |
Page 214 |
Page 215 |
Page 216 |
Page 217 |
Page 218 |
Page 219 |
Page 220 |
Page 221 |
Page 222 |
Page 223 |
Page 224 |
Page 225 |
Page 226 |
Page 227 |
Page 228 |
Page 229 |
Page 230 |
Page 231 |
Page 232 |
Page 233 |
Page 234 |
Page 235 |
Page 236 |
Page 237 |
Page 238 |
Page 239 |
Page 240 |
Page 241 |
Page 242 |
Page 243 |
Page 244 |
Page 245 |
Page 246 |
Page 247 |
Page 248 |
Page 249 |
Page 250 |
Page 251 |
Page 252 |
Page 253 |
Page 254 |
Page 255 |
Page 256 |
Page 257 |
Page 258 |
Page 259 |
Page 260 |
Page 261 |
Page 262 |
Page 263 |
Page 264 |
Page 265 |
Page 266
