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HDFC Bank shares gain after RBI eases curbs on new credit cards
HDFC, in a regulatory filing on Wednesday, confirmed that the RBI has relaxed the restriction placed on the lender on sourcing new credit cards. The ban was imposed over certain incidents of outages in internet banking, mobile banking, and payment utilities over the past two years.
HDFC Bank shares rose by nearly two per cent on Wednesday in early trade in what investors believe a positive sign following the Reserve Bank of India (RBI) lifting an eight-month-long ban on the lender imposed over the issuance of new credit cards. As the heavyweight private sector lender, the Housing Development Finance Corporation (HDFC), got the nod to issue new credit cards once again, the stock market reciprocated the development -- with the lender's shares rising 1.61 per cent to ₹1,539.10 per piece after opening at ₹1,550.
HDFC, in a regulatory filing on Wednesday, confirmed that the RBI has relaxed the restriction placed on the lender on sourcing new credit cards. The ban was imposed by the central bank, through orders issued in December and February, over certain incidents of outages in internet banking, mobile banking, and payment utilities over the past two years.
HDFC shares hit an intra-day high of ₹1,564.75, boosting the 30-share Sensex index, which was seen trading over 250 points to scale the 56,000-mark for the first time. Sensex climbed 0.40 per cent higher to touch a lifetime-high of 56,044, while the broader Nifty 50 index was seen advancing 0.40 per cent to trade at 16,681.35, also a record high. HDFC Bank was the top gainer in the Sensex pack.
The scrip opened at ₹1,556.70 on the NSE, reported the PTI news agency, noting that it climbed similar gains (1.60 per cent) to ₹1,538.95 and reached an intra-day high of ₹1,565.35.
HDFC Bank also said the restrictions on all new launches of the digital business generating activities planned under Digital 2.0 will continue till further review by the RBI. "We will continue to engage with RBI and ensure compliance on all parameters," it added.
Among broader markets, Asian shares held near year-to-date lows as overnight declines on Wall Street reinforced worries about the economic impact of the Delta coronavirus variant.
(With inputs from agencies)
