‘HDFC Bank’s costs on tech infrastructure are plateauing’

“Impact on cost to income will be a journey which will start showing over the next 2-3 years,” said Parag Rao, group head, Payments Business, Digital & IT,

Bank. “Half this journey is already through. We are clearly seeing a plateauing of costs already. We are in the process of either dismantling or transforming or reforming existing set of IT investments that we have made.”

Rao was speaking to journalists at the sidelines of the launch of SmartHub Vyapar merchant app, a comprehensive payments and banking solution designed to fulfil the everyday business needs of merchants. He said that new-age systems will achieve the goal of 20 million merchants. The bank currently has 3.3 million merchants.

“We have crafted the new SmartHub Vyapar app to meet every need of the merchant and bring efficiencies to their banking and business ecosystem,” Rao said. “Our aim is to solve problems and difficulties merchants face in their day-to-day business, help them grow their business, deepen our reach across India and connect with trade hubs. This app brings a vibrant suite of payment, lending and

onto a single platform.”

The lender said that on the merchant app which has been in a beta launch since September last year, the merchants have grown from 300,000 to 1 million in October 2022. While the transaction volumes have risen from 2.92 billion to 60 billion during the same period.

Rao also added that the proposed merger with HDFC will help scale up its digital footprint.

“When the merger (with HDFC) goes through the opportunity for the bank multiplies,” he said. “We will get a good set of customers who have a housing loan for more than 10 years, they are well-underwritten so it’s an opportunity on multiple fronts. It’s an opportunity for more assets, it’s an opportunity for liability accounts, it’s also an opportunity for payments because all of them.”