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Banking industry

HDFC Bank Shares Rise as RBI Lifts Credit Card Ban

Strategic Insights

— 2 min read

HDFC Bank's shares surged 1.61% to 1,539.10 per piece after the Reserve Bank of India (RBI) lifted an eight-month-long ban on the lender imposed over the issuance of new credit cards. This decision has been seen as a positive sign, leading to a rise in the stock market, with HDFC Bank emerging as the top gainer in the Sensex pack. The RBI's relaxation of the restriction has also led to a boost in the overall market, with the Sensex index scaling a lifetime high of 56,044 and the Nifty 50 index reaching a record high of 16,681.35.

Key Takeaways:

  • HDFC Bank's shares rose by 1.61% to 1,539.10 per piece after the RBI lifted the credit card ban.
  • The RBI relaxed the restriction placed on HDFC Bank on sourcing new credit cards, which was imposed in December and February due to outages in internet banking, mobile banking, and payment utilities.
  • HDFC Bank confirmed in a regulatory filing that the RBI has lifted the ban, allowing the lender to issue new credit cards once again.
  • The RBI has also canceled restrictions on all new launches of digital business generating activities planned under Digital 2.0, subject to further review.
  • HDFC Bank will continue to engage with the RBI to ensure compliance on all parameters.
  • The Sensex index scaled a lifetime high of 56,044, while the Nifty 50 index reached a record high of 16,681.35.
  • HDFC Bank was the top gainer in the Sensex pack, with its scrip opening at 1,556.70 on the NSE and climbing to 1,565.35.
  • The stock market has responded positively to the RBI's decision, with Asian stocks holding near year-to-date lows but showing signs of stabilization.

Statistics:

  • HDFC Bank's shares rose by 1.61% to 1,539.10 per piece.
  • The Sensex index scaled a lifetime high of 56,044, representing a gain of 0.40%.
  • The Nifty 50 index reached a record high of 16,681.35, representing a gain of 0.40%.
  • HDFC Bank's shares climbed 1.60% to 1,538.95 before hitting an intra-day high of 1,565.35.
  • The RBI lifted the credit card ban imposed on HDFC Bank in December and February.
  • HDFC Bank confirmed that it will continue to engage with the RBI to ensure compliance on all parameters.

Sources:

  • "HDFC Bank shares rise 1.61% after RBI lifts credit card ban" by PTI (Aug 18, 2021)
  • "HDFC Bank gets RBI nod to issue new credit cards" by The Northlines (Aug 18, 2021)
  • "HDFC Bank's shares rise 1.61% as RBI lifts credit card ban" by Contify.com (Aug 18, 2021)

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