Bangalore: Infosys have withdrawn its entire deposited amount from State Bank of India (SBI) at the end of their third quarter i.e. October–December of 2011. SBI, which is the second largest bank of India, has lost the favour of this software giant.

SBI had 386 Crore in March, 2011, 457 Crore in September but in December end Infosys withdrew all its deposits from SBI, which is said to be the bank of every Indian. Infosys, which already had deposits in private banks like ICICI Bank and HDFC Bank, now have shifted all of its deposit from SBI to these banks, making the deposits more than double.

Infosys had 689 Crore in ICICI Bank in March 2011, which is now 1,500 Crore in the end of December 2011. Similarly the deposits in HDFC Bank has increased from 646 Crore to 1,357 Crore from March to December respectively.

Infosys made such decision because of the low interest rates provided by SBI. It made the choice of banks entirely on the rates provided and thus shifted to ICICI Bank, HDFC Bank, Canara Bank, Bank of Baroda and Punjab National Bank and many others. K.V. Kamath is the non-executive chairman of both ICICI Bank and Infosys.

V. Balakrishnan, the Board Member and Chief Financial Officer of Infosys said, “The move from SBI to other banks is purely based on the yield we get. The yields from other banks were higher and hence we preferred them.”

Presently the rate of interest provided by the SBI is 9 percent for 1 crore. ICICI Bank and others have not yet disclosed their interest rates publicly. Infosys have deposits in 27 banks but most of its share is in ICICI Bank, Punjab National Bank, and Bank of Baroda.