HDFC Bank shares rise as RBI lifts curbs on bank’s digital initiatives

Shares of HDFC Bank rose significantly on Monday after the Reserve Bank of India lifted the restrictions on the bank regarding its business generating activities planned under the ‘Digital 2.0’ programme.

In December 2020, the RBI had directed HDFC Bank to temporarily stop all launches of the ‘Digital Business’ generating activities and sourcing of new credit card customers on certain incidents of outages in the Internet banking, mobile banking and payment utilities of the bank over the past two years.

In August last year, RBI had relaxed the restrictions on the bank and allowed the lender to issue new credit cards.

However, the restrictions on all new launches of the digital business generating activities planned under ‘Digital 2.0’ were to be reviewed by the RBI.

At 1.17 p.m., the bank’s shares traded at Rs 1,436, up 2.8 per cent from Friday’s close.

In the past one week, or five sessions, HDFC Bank has outperformed the broader market by gaining over 10 per cent, as compared to a 6 per cent rise in the Sensex, data showed.

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