ICICI Bank is looking for ways to divert its ATM management and points of sale terminals (POS) into a different unit.

Moreover, the country’s largest private lender has also invited bids from private equity funds as well as banking technology companies for stake in this arm.

ICICI Bank has the second-largest ATM network with more than 4,600 Automated Teller Machines (ATM), and the largest PoS network with over two lakh terminals.

An ICICI Bank representative said, “We evaluate various options for different areas of our operations based on global and Indian trends and experience. Certain areas of operations could be made more efficient by transferring to specialised players, who can bring operating efficiency and functional improvements.”

“The ATM infrastructure management and acquiring business (POS terminals) are of this nature. For instance, in the US, the card transaction acquiring business (POS terminals) has largely moved out of banks and is done by specialised players,” the spokesperson said.

Visa, FSS, Total Systems Services, KKR-owned First Data Corporation, Blackstone-CMS joint venture, Kubera Partners-backed Venture Infotek and a few private equity investors have shown their interest to buy equity stake in the bank’s new venture.

This shifting will help the banking institution to expand its network at a fast rate.

ICICI Bank will be the first to diverst its ATM assets, a move that other banks might follow.

From April 2009, banks will have to allow access to clients from any ATM in the country, and the fee for cash withdrawal will be eventually abolished later.