The softening of interest rates depends on the lowering of cost of funds at the present level of reasonable inflation and adequate liquidity, Aditya Puri, managing director, HDFC Bank, said. On the sidelines of the bankers conference, Puri said, ?If the cost of funds goes down at the present level of inflation and liquidity, then the interest rate may also soften.? Puri said that the GDP was expected to be between 8% to 9%, and the credit growth should be three times the GDP to around 23% or 24%. On the forceful recovery of loans by some banks, Puri said, ?The bank has sent letters to the customers, and will have personal negotiations with the customers to solve the problem.?
HDFC Bank is working with CISCO to evolve an e-solution for the data mining of all customers. This will help the bank sanction loan to customers in a short time. This new solution will be implemented in six months. The bank is looking at mobile banking in rural India which will be introduced soon. It is working towards lowering the cost of banking solutions for the rural sector, he said.
