HDFC Bank gains after RBI allows lender to issue new credit cards

HDFC Bank rose 1.87% to Rs 1,543.15 after India's central bank on Tuesday allowed the private lender to issue new credit cards.

Following repeated technological outages at HDFC Bank, the Reserve Bank of India (RBI) in December 2020 slapped penalties on the private bank, which included a ban on any new credit card issuance and also prohibition on launching new digital initiatives.

RBI vide its letter dated 17 August 2021 has relaxed the restriction placed on sourcing of new credit cards. The board of directors of HDFC Bank has taken note of the said RBI letter.

The restrictions on all new launches of the digital business generating activities planned under Digital 2.0 will continue till further review by RBI. "We will continue to engage with RBI and ensure compliance on all parameters," HDFC Bank said in a statement.

The private sector bank reported 16.08% rise in standalone net profit to Rs 7,729.64 crore on 6.73% increase in total income to Rs 36,771.47 crore in Q1 FY22 over Q1 FY21.

HDFC Bank is one of India's leading private banks. As of 30 June 2021, the bank's distribution network was at 5,653 branches and 16,291 ATMs /cash deposit & withdrawal machines (CDMs) across 2,917 cities /towns.

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