RBI may continue its ban on HDFC Bank new credit card issuance

RBI may continue its ban on HDFC Bank new credit card issuance:

RBI may continue its ban on HDFC Bank new credit card issuance:

RBI may continue its ban on HDFC Bank new credit card issuance:

HDFC Bank: The bank awaits the decision from the RBI to roll back its decision for the issuance of credit cards to the customers. Whereas the bank currently facing technical glitches back-to-back, so that reason the RBI imposed a temporary ban on the bank. While the analyst expects that the ban will continue as the bank facing a technical glitch last month.

Moreover, the outages may trigger an adverse impact on the audit report by the RBI-appointed firm. Currently, the central bank decided to provide a 24×7 payment cycle. So the outages will impact the policy of the Reserve Bank of India (RBI).

Commenting on the recent outage from the bank, we believe the chances of an adverse report increasing. So that the ban will continue on issuing new credit cards and launch of digital 2.0 banking further, said Suresh Ganapathy, associate director of Macquarie Capital.

Whereas the Reserve Bank of India (RBI) will lift the ban on the bank by June 2021. The bank has almost two technical glitches in the last two months span. On the other side, the bank has almost two big tech outages in the last two years.

HDFC Bank

As per the reports from Macquarie, the loan growth of the bank stood at 5-6% and a loan book of the bank at 16-17% respectively. The loan growth of the bank reported almost three times compared to the previous quarters.

Besides, the bank has almost 35-40% market share in the payments market. While 25% market share in the credit card business. The bank issued almost 2,00,000 credit cards per month before the Covid-19 pandemic.

While the growth of the bank is happening at such a rapid pace, the technology outages will downgrade the stock further. Many investors urge the bank to solve the issue as soon as possible, he added.

On the other side, the Reserve Bank of India (RBI) appointed an external IT professional firm for preparing a special audit report on the entire IT infrastructure of HDFC Bank.

However, the shares of HDFC Bank Limited reported a bearish trend in the stock market on Thursday. It lost 1.15 points with a 0.077% decrease and reached 1,492.50 INR. While in BSE, the bank lost 7.05 points with a 0.47% decrease and reached 1,486.50 INR.

Stock Market on April 1st:

On Thursday, both Sensex and Nifty reported a bullish trend in the stock market after bearish reports in the last session of the market. The Sensex is trading above 50,000 levels and nifty trading above 14,850 levels in the stock market. The Sensex gained 520.68 points with a 1.05% increase and reached 50,029.83 levels. While the nifty gained 176.65 points with a 1.20% increase and reached 14,867.35 levels.

On the other side, the number of coronavirus cases in India on Saturday, April 3rd reached 1,23,92,260 with almost 1,64,110 deaths.

In the border markets, the S&P BSE SmallCap index reported a bullish trend in the stock market on Thursday. It gained 422.36 points with a 2.05% increase and reached 21,071.69 levels. But, the S&P BSE MidCap gained 335.09 points with a 1.66% increase and reached a 20,516.40 level. While the Nifty Bank gained 554.10 points with a 1.66% increase and reached 33,858.00 level.

Top Gainers on April 1st: JSW Steel, Hindalco Industries, Tata Steel, Adani Ports, IndusInd Bank are the top gainers in today’s stock market.

Top Losers on April 1st: HUL, HDFC Life, Nestle India, HDFC Bank, and TCS are the only top losers in today’s stock market.

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