HDFC Bank Takes a Pause in Partnership with Apple, Shifts Focus to Festive Season Growth

New Delhi: After a five-year collaboration with Apple, HDFC Bank, India’s largest private sector lender, has decided to take a “temporary break” from its partnership with the US tech giant. This decision follows a review of the partnership from a cost-to-income perspective, according to Parag Rao, HDFC Bank’s Group Head of Payments, Consumer Finance, Marketing, and Liability Product Group.

Rao emphasized that the partnership had been beneficial, helping to build a strong brand relationship with Apple. However, after evaluating the cost-effectiveness of the collaboration, the bank chose to pause the tie-up. During the partnership, HDFC Bank offered customers instant cashbacks and EMI options on Apple products through its credit cards. Apple has now extended similar offers to American Express, Axis Bank, and ICICI Bank cardholders.

Despite this change, HDFC Bank is gearing up for the upcoming festive season, anticipating a surge in business. The bank is focusing on capturing a significant share of incremental deposits, asset disbursals, and card spending during this period.

Rao also addressed concerns about the regulator’s stance on increasing risk weights for retail unsecured loans. He assured that HDFC Bank’s portfolio remains stable and that the bank will continue its prudent underwriting practices.

In addition, HDFC Bank’s revamped PayZapp app is showing promising early results, with close to 14 million users, 60% of whom are HDFC Bank customers. Rao highlighted that the bank holds a 14% share of the UPI ecosystem, with plans to further enhance its presence.

To bolster its deposit mobilization strategy, HDFC Bank is focusing on expanding branch banking and leveraging digital tools to attract retail deposits, particularly fixed deposits. Rao reiterated the bank’s commitment to growing its branch network, reinforcing its position as a leading retail bank in India.

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