HDFC Bank plunges as RBI asks to halt launches & business activities under Digital 2.0

After opening and rising as much as 2 per cent, the shares of private lender HDFC Bank witnessed a sudden fall of just over a per cent after Reserve Bank of India (RBI) ordered the lender to put a halt to its sourcing of new credit card customers and other launches of other digital business generating activities planned under the Digital 2.0 programme.

The measures came on the back of the recent outrages in internet banking, which according to RBI, need to be examined by the board of HDFC for lapses and to fix accountability. The restrictions shall be considered for lifting upon satisfactory compliance with the major critical observations as identified by RBI.

In its filing to the exchanges, HDFC bank stated that it has taken several measures to fortify its IT systems over the last two years and will continue to work swiftly to close out the balance and engage with RBI in this regard.

The private lender has also sought to reassure customers in its filing by stating that the supervisory actions will have no impact on its existing credit cards, digital banking channels & existing operations. The bank further stated that the measures imposed by the apex bank will not materially impact the overall business.

At 12.50 pm on Thursday, the stock of HDFC Bank was trading at Rs 1,385.65 per share, down by 1.51 per cent or Rs 21.30 per share on BSE, against a 0.10 per cent decline in the benchmark index. The 52-week high was recorded at Rs 1,464 and the 52-week low was Rs 738.90 on BSE.