HDFC Bank eyes digital funding

Lender believes with more customers moving on to online platform for research, it is integral to have an online presence at every end

HDFC Bank, the country’s second largest in the private sector, seems to be focusing on investment in online portals.

Its first in an online automobile portal last week, cardekho.com, for an undisclosed amount, is likely to be followed by many others in the e-commerce/digital space.

“Our core is  to be present where the customers are, be it offline or digital platforms.  HDFC Bank’s endeavour is to invest in companies either in the B2B (business to business) or B2C (business to customer) domain or even in technology companies that act as enablers to B2B to B2C companies. We are essentially looking at it as an online eco-system and believe more transactions will move to these platforms in the times to come,” said Rakesh Singh, its group head for investment banking.

Though the bank will not have an exclusive tie-up with cardekho.com users for their financing needs, this stake will definitely give a boost to its Rs 46,760-crore automobile loan book (at the end of March).

“We are a leader in banking’s digital and technology space. This investment reaffirms our view that technology and digital platforms are going to change the way we do business,” added Singh.

It is believed that the lender has set up a team and earmarked funds to further its investment in the online space. The bank declined to comment on it. As of end-March, about 63 per cent of HDFC Bank’s transactions were via the internet (including mobiles) as compared to 55 per cent a year before.