Money & Banking

HDFC Bank launches three-month-long discount campaign on its platform

PTI Mumbai | Updated on September 30, 2019 Published on September 30, 2019

File Photo of MD and CEO of HDFC Bank, Aditya Puri.   -  BusinessLine

The bank hopes to reduce its cost-to-income ratio with its digital push

Private sector lender HDFC Bank, on Monday, took the battle on consumption straight to e-commerce majors with a three-month long campaign offering best deals on transactions through its platform.

The bank also listed out targets for merchant acquisitions, and said that it is aiming for a 5 percentage points reduction in its cost-to-income ratio as a result of the digital push.

The aggressive posturing comes at a time when the massive slump in consumption is being blamed for the overall economic gloom which pulled down the GDP to a six-year low in the June quarter at a 5 per cent.

The bank has tied up with more than 1,000 major brands such as Reliance Digital, Samsung, Apple etc. “The discounts will be available on both its debit and credit cards,” the bank said. “You get mega offers on Flipkart and Amazon for three-four days alone. We are launching this campaign for three months,” Managing Director and Chief Executive Aditya Puri said.

Major transformation

Puri said the bank is going through a major transformation to re-define it altogether and will compete to garner as wide a share of a customer’s wallet as possible. He said that the bank will aggregate offers from across merchants and present its users with the best offers on its website.

“It is targeting to have a complete omnichannel presence which will help a user do banking transactions, loans and shopping across channels like net banking and mobile app by March,” he said.

The bank is also adding 1 million merchant touch-points this fiscal, and is aiming for a similar number next fiscal to have up to 5 million merchant touch points by 2021.

“This is possible largely through digital solutions like QR codes and smartphone-based apps,” he said, adding that using this also helps drive down the costs compared to the expensive card swipe machines.

Through a variety of initiatives pivoted around digitisation, the bank is targeting to decrease its cost to income ratio by 5 percentage points to the 35 per cent in the next five years, Puri said, adding that the bank will continue to hire people and also open branches, which will be smaller in size and will act primarily like a sales and service outlet for customers.

Published on September 30, 2019
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