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HDFC Bank share falls 2% after RBI bars lender from issuing credit cards

BusinessToday.In     December 3, 2020

Shares of HDFC Bank were trading nearly 2% lower in early trade on Thursday after the central bank barred India's largest private lender from adding new credit card customers or going ahead with its digital innovations.

The Bank's official notification said: "RBI has issued an order dated  December  02, 2020  ("Order")  to HDFC Bank Limited  (the "Bank") with regard to certain incidents of outages in the internet banking/ mobile banking/ payment utilities of the Bank over the past 2 years, including the recent outages in the Bank's internet banking and payment system on November 21, 2020, due to a power failure in the primary data centre".(RBI) on Thursday asked HDFC Bank's board to examine lapses and fix accountability over frequent outages in its digital payment services."

HDFC Bank share price opened at Rs 1,420.10 and later touched an intraday high of Rs 1,431.60, rising 1.75%. However, the stock gave up early gains and touched a low of Rs 1,379.05, down 1.9% against the earlier close of Rs 1,406.95 on BSE.

HDFC Bank share was trading higher than 20, 50, 100 and 200-day moving averages but lower than 5-day moving averages. HDFC Bank stock has fallen 4% in the last 3 days of straight losses.

Total market capitalisation of the lender stood at Rs 7,61,535 crore as of today's session. HDFC stock price has fallen 3% in one week. However, the stock has gained 10% in one month and 10% in one year.

The Bank's official notification said: "RBI has issued an order dated  December  02, 2020  ("Order")  to HDFC Bank Limited  (the "Bank") with regard to certain incidents of outages in the internet banking/ mobile banking/ payment utilities of the Bank over the past 2 years, including the recent outages in the Bank's internet banking and payment system on November 21, 2020, due to a power failure in the primary data centre".

HDFC Bank added, "Over the last two years, the bank has taken several measures to fortify its IT systems and will continue to work swiftly to close out the balance and would continue to engage with the regulator in this regard."

On November 21, HDFC Bank's entire payment stack had gone down due to a technical glitch. The unexplained outage of the Bank's data centres halted internet banking, UPI, IMPS, and ATM operations.

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