What are the target markets for HDFC in the case of corporate banking and retail banking?
In corporate banking, it is likely to remain triple A. In retail banking, it will be the middle class. The triple A market is the area we understand. Our products, technology, our people understand that segment. We also understand the price and we also understand how to manage the probability of default. The middle market is more difficult and we prefer to go from corporate to retail. We will miss out the middle market. Are technology costs escalating? Our experience in technology ultimately leads to lower costs – better service, lower costs. Are you being forced to share that with your customer? Our spreads are not coming down. Going forward, if all banks are equally technology savvy, will that not lead to reduction in spreads? We will see when they become as that will take a while It takes time, it is not easy. And even if banks are moving fast there is a large enough market for all of us. The Reserve Bank Governor has commented on the large spreads of most banks in the monetary poli
