INTERVIEW: D.S. PAREKH
"We'll continue to grow"

Q. You've now forayed into a variety of services through new JVs. Is universal banking the goal?

A. Our (both HDFC's and HDFC Bank's) low NPA levels and strong financials obviate the need for a merger. We are just cashing in on our strong brand identity, and cross-selling products. As for universal banking, the negatives today are too enormous.

What sort of a structure are you looking at?
The holding company concept, because size and market cap matter the most in the financial business.

What more now, after securities and insurance?
The non-life segment, but later.

The deal with SBI for CIBIL...
For every housing loan application, HDFC will pay Rs 40 to CIBIL to get the rating of the applicant.

What about Intelenet, the 50:50 JV with TCS?
We are a large processing house already. Chase Manhattan and Standard Life are other partners in Intelenet... They could be potential clients too.

Do these new ventures offer more mileage?
Yes. Intelenet offers great potential. Insurance will give tremendous value, but five years down the line.

And the service business, like the JV with Pizza Hut?
Instead of just advising (for a fee) Pizza Hut or KFC on property, we have taken 25 per cent equity in them.

As for real-estate, we buy property where we get good returns, and hence the holdings in the it park in Bangalore and Hi-Tec city in Hyderabad.

The next step in your cross-selling spiral...
A consolidated statement to the customer, post-transactions, with the help of technology.

What about the core business of housing finance?
We grew at 30 per cent last year, and this year we are growing at 35 per cent in individual loans. Despite the entry of others, we will continue to grow.

Interview Part II

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