HDFC Bank enters into e-commerce tie-up with Singtel
HDFC Bank has entered into a tie-up with SESAMi.com Pte, the 100% e-commerce arm of Singapore Telecom (Singtel) to offer e-commerce solutions for its corporate clientele. The new company SESAMi.com India will market and operate SESAMi.com's portal and e-commerce solutions in India.
The initial investment for this venture is Rs 150 m of which Singtel will contribute to 60% of the capital while the rest 40% will be contributed equally by HDFC and HDFC Bank. HDFC Bank has also signed a memorandum of understanding with National Computer System another 100% owned subsidiary of Singtel for setting up a payment gateway. The gateway will facilitate payments by Master and Visa card holders and allow them to make payments for goods and services through the net.
Though these are not directly related to the banking or housing finance business these can be seen as part of their initiatives to fund technology companies. However a positive outcome of these businesses could be better opportunities for HDFC and HDFC Bank to increase its banking reach as this new company will be offering business to business e-commerce solutions.
These internet related ventures by HDFC and HDFC Bank can be seen as the key to their future profitability in the banking sector as both can leverage on their strong and trusted brand names. As competition in the retail segment is on the rise those companies with the technology edge will be able to garner up more customers. They will be able to provide a more convenient and better range of products and services and this will eventually lead to banking from the convenience of your home. Other players in the banking sector too realise this need of higher technology and tie-ups of this nature are on the rise. Recently ICICI Bank has launched a 50:50 joint venture with Satyam Infoway to offer retail banking products over the internet.
HDFC Bank is on the 'BUY' list of many analysts. Its professional management, strong earnings potential together with its favourable merger with Times Bank makes it a long term favourite of the market.
HDFC Bank declared the results for the third quarter of financial year ending March 2017 (3QFY17). The bank has reported 18% YoY and 15% YoY growth in net interest income and net profits respectively in 3QFY17.
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