HDFC Bank announces BillPay on the Net

HDFC Bank has announced another facility to its customers on the net. They can now pay their utility (telephone) and cell phone bills at any time and from anywhere in the world through HDFC Bank's BillPay facility on the internet. HDFC Bank, promoted by the Housing Development Finance Corporation Ltd., provides a range of banking services including working capital finance, trade services, corporate finance and merchant banking. The bank also offers banking services via the Internet.

The customers need to log on to the HDFC Bank website, select the bill payment option and the company name. The customer's account gets debited automatically and paid to the respective billing company the next working day. The companies that HDFC Bank has tied up with are MTNL Mumbai, MSEB Mumbai, BSES Mumbai, BPL Mumbai, Maxtouch Mumbai, Airtel New Delhi, Skycell Chennai and RPG Chennai.

Bill payment especially to government utilities like MTNL and BSES could at times be a harrowing experience. This a big boon for families where all members are working, they can now from the convenience of their office pay their bills. Also for multiple bills to paid at multiple locations it is a big problem for customers currently. For HDFC Bank there will now be more customers wanting to open accounts with them because of the convenience that they are providing through this product and other products that will offer in future.

HDFC Bank has been pro-active in internet banking and is one of the first few banks in India to get into internet banking. There are currently 2 m internet users in India and this is growing at a very fast pace of 25%-30% per annum.

The key to future growth in both the banking and finance sector will depend on their ability to use technology and the net to their best advantage. HDFC Bank by introducing net banking is leveraging on its strong and trusted brand name. As competition in the retail segment is on the rise those companies with the technology edge will be able to garner up more customers.

Market View:
HDFC Bank has been rated a 'BUY' mainly on account of its excellent management, strong promoters, efforts taken by them to control the non performing assets (NPAs) and its internet ventures.