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Mr Aditya Puri (right), Managing Director, HDFC Bank, and Mr Samir Bhatia — Country Head, Corporate Banking, at a press conference in Chennai on Friday.

CHENNAI, Feb. 15

HDFC Bank is "systematically introducing relationship pricing" under which it will offer its existing customers lower pricing on (some) products. The Managing Director, Mr Aditya Puri, told presspersons here on Friday that the bank was actually passing on the savings in selling expenses, makes when it sells a product to an existing customer.

For example, if the bank's debit card holder wants to buy its credit card as well, he would have to pay a lower rate on `balance transfer.' Likewise, a deposit holder could get a lower rate on a housing loan.

Mr Puri said the bank entered into truck financing last month. It would initially fund only new trucks to gain some experience, before offering finance on used trucks also, he said. The bank had hired a team of people from the NBFC industry to sell its commercial vehicle loans. Mr Puri said the bank was open to the idea of a tie-up with an NBFC for loan generation. He added that the bank began disbursing two-wheeler loans about three months back.

Mr Puri said the bank had received approval to open a representative office in the UAE. This would be done "as an experiment". "We will look at other NRI centres" depending upon the performance of the venture. HDFC Bank's cash management product had achieved a turnover of Rs 1 lakh crore last year, he said.

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