HDFC no to universal banking
By Our Banking Bureau | 18 Oct 2001
Mumbai: HDFC has said that it will not be opting for universal banking through a merger with HDFC Bank. HDFC managing director Keki Mistry said: We do not see any advantage in transforming ourselves into a universal bank. Both HDFC and HDFC Bank are optimally staffed, hence there is no scope for redeployment. Also, there is no excess real estate available.
He also said that both the organisations are growing at 30 per cent per annum and are doing well in their respective niche areas. If HDFC were to opt for universal banking, it would face the danger of running into asset-liability mismatch by channelling short-term funds from the savings bank and current accounts into the housing sector, which typically have longer tenors, he said.
Mistry also pointed out that dealing with multiple regulatory bodies that govern the banking, capital markets and insurance sector was another impediment for conversion into a universal bank.
