Dynacons won a large 5-year IT contract from Punjab & Sind Bank worth ₹108.88 crore. Because of this positive news, Dynacons’ share price went up by 2.77% to ₹943.85.
Dynacons is saying that its owners do not have any personal link or financial relationship with Punjab & Sind Bank. In simple words, the people who own Dynacons are not connected to the bank and do not benefit from it personally. This means the contract was given in a fair way. It is not a “related-party deal” where both sides are connected. The deal was made like a normal business agreement between two separate and independent companies.
What is the contract about?
Dynacons will create and take care of a private cloud system for Punjab & Sind Bank.
Dynacons will:
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Set up the bank’s computer systems and servers (IT infrastructure)
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Install and manage important software
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Provide cloud services so data and applications run smoothly
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Manage the Data Center and also a backup system (Disaster Recovery) in case something goes wrong
The agreement is for 5 years. This means Dynacons will not only build the system but also look after it and make sure everything works properly during these five years.
Both Dynacons and Punjab & Sind Bank are also showing good growth in profits and revenue compared to last year.
Dynacons reported strong financial growth this quarter. The company’s profit increased by 28% to ₹23.48 crore. Its total income (revenue) also rose by 9.5% to ₹340.59 crore compared to the same quarter last year. This shows that Dynacons earned more money and made higher profits than it did a year ago.
Punjab & Sind Bank also reported better financial performance this quarter. The bank’s profit increased by 19.3% to ₹336.42 crore, while its total income rose by 8.6% to ₹3,549.27 crore. Along with this improvement, the bank’s share price also went up slightly by 0.62% to ₹25.85, showing a small increase in investor confidence.
