HDFC Bank falls over 1% after RBI bars it from issuing fresh credit cards

HDFC Bank falls over 1% after RBI bars it from issuing fresh credit cards

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NEW DELHI: Shares of HDFC Bank drifted lower on Thursday after the RBI temporarily barred it from all launches under upcoming Digital 2.0 offering and issuing fresh credit cards in light of incidents of outages in the last two years.
The order was issued on Wednesday after the banking regulator took note of recent outages in the bank’s internet banking and payment system on November 21, 2020 due to a power failure in the primary data centre.

“The bank has been taking conscious, concrete steps to remedy the recent outages on its digital banking channels and assures its customers that it expects the current supervisory actions will have no impact on its existing credit cards, digital banking channels and existing operations. The bank believes that these measures will not materially impact its overall business,” HDFC Bank said in a release.

Despite the assurances, shares of the bank fell over a per cent to Rs 1,388.10 on BSE.

RBI has asked the bank’s board to examine the lapses and fix accountability. The above measures shall be considered for lifting upon satisfactory compliance with the major critical observations as identified by the RBI, the bank said in a regulatory filing.

The bank’s stock had recently hit all-time highs and Rs 8 lakh crore market cap, becoming the first banking entity to do that.

Credit: Stocks-Markets-Economic Times

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