“The Royal Bank of Scotland announced last week that it will no longer pursue its plan to separate and list a new UK standalone bank, Williams & Glyn (W&G), and instead will pursue other options for the divestment of this business,” Infosys said in a media statement on Saturday, August 13, 2016.

This move could result in a loss of as much as $50 million for Infosys, which now plans to shift 3,000 people from this project to other clients. Shares of Infosys have fallen to its lowest level since December 9, 2015, to Rs 1,028, down 3% on the BSE in early morning trade.

Infosys has been a W&G program technology partner for consulting, application delivery and testing services.

RBS is a key relationship for Infosys and the company looks forward to further strengthening its strategic partnership and working with them across other strategic and transformation programs, Infosys said.

The development will prove to be a major setback for Infosys’ chief executive officer (CEO) and managing director Vishal Sikka, who last month expressed his disappointment over the company’s lower-than-expected first quarter earnings.

The IT major posted a 4.5 percent on-quarter fall in consolidated net profit to Rs 3,436 crore for April-June and also cut the full-year revenue guidance to 10.5-12 percent in constant currency terms.

The consolidated revenue for the quarter was up just 1.4 percent at Rs 16,782 crore, from Rs 16,550 crore in previous quarter.