HDFC Bank’s share price on Wednesday increased by 3 per cent, standing at Rs. 1,564.75 following Reserve Bank India’s (RBI) new directive allowing the bank to issue new credit cards. However, restrictions on all new digital initiatives will continue.
HDFC Bank had been underperforming in the BSE for the past six months. The stock prices were down by 2.5 per cent against an 8.4 per cent gain in the benchmark index. Share prices of HDFC bank hit a record high of Rs. 1,650 in February.
“We wish to inform you that the RBI vide its letter dated August 17, 2021, has relaxed the restriction placed on sourcing of new credit cards. The Board of Directors of the Bank has taken note of the said RBI letter,” the bank said in an exchange filing.
“The restrictions on all new launches of the Digital Business generating activities planned under Digital 2.0 will continue till further review by RBI,” it further added.
RBI in December 2020 placed a restriction on the bank for issuing new credit cards after repeated tech outages at the bank. HDFC Bank is the largest credit card issuer in the country. According to brokerage firms like ICICI Securities and Motilal Oswal, allowing sourcing of new credit cards will help in increasing the bank’s profitability and share price.
