Infosys, the leading Software Exporter of the Country has decided to pull out all its bank deposits from State Bank of India.
This step was taken in the previous quarter and the current balance of Infosys in SBI is Rs 0.00 compared to Rs 457 crore in the End of September 2011. During the same period, its deposits with ICICI Bank and HDFC Bank have nearly doubled.
Reasons
The Reason for it is not clearly known , however it is considered as Company’s internal decision. But one cannot deny the fact that K V Kamath is currently non-executive chairman at both ICICI Bank and Infosys..
V Balakrishnan, member of the board and Chief Financial Officer, CFO of Infosys says that  it is pure business decision. “The yields from other banks were higher and hence we preferred them”.
History
This type of move is not new. During the global financial crisis of 2008-09, Infosys withdrew most of its deposits with ICICI Bank and parked the money with public sector banks, including SBI.
At HDFC Bank, the technology company’s deposit balance increased to Rs 1,357 crore (Rs 13.57 billion) from Rs 646 crore (Rs 6.46 billion) in the first three quarters of this financial year. Â ICICI Bank along with Punjab National Bank and Bank of Baroda had the highest share in Infosys’ deposits.
It is interesting to note that Infosys has deposits in 27 banks.