Hinting at aggressive plans in the payments business arena, the country's largest private bank HDFC Bank said on Wednesday that it is looking to regain market share after RBI lifts curbs on credit card and digital banking. It expects growth at rates higher than industry.
Parag Rao, the lender's Group Head–Payments, Consumer Finance, Digital Banking & IT, said it has used the six months since restrictions were imposed in December 2020, to rehaul and improve digital and IT infrastructure and invest more in IT systems for future requirements. The bank will be back with a bang after the embargo is lifted, Rao claimed, but declined to elaborate on when RBI would ease the curbs or share details of investments to spruce up IT and Digital infrastructure.
In December 2020, the Reserve Bank of India asked HDFC bank to stop selling any new credit cards and also launch new digital services due to a series of network outages. The glitches have been experienced even after curbs.
There was an audit by a third-party tech auditor, appointed by the regulator, from February till April, who prepared a report and submitted it to the RBI. The bank is now awaiting the decision of the regulator now.
Rao said the bank has used six months to refocus on its existing customer base and also increase spends on debit cards.
It reskilled salesforce to connect with portfolio customers and also enhance cross sales.
Even after the embargo is lifted, the bank will continue with its policy for the cards business-–that is, tap 80 per cent of internal customers and 20 per cent external customers, Rao said.
The largest private lender and its broking arm HDFC Securities have picked up 7.4 per cent stake in Pune-based Virtuoso Infotech Pvt Ltd, an enterprise software solutions company. The aim is to digitise under-served and under-penetrated segments using digital solutions.
To read the full story, Subscribe Now at just Rs 249 a month