HDFC Bank rose on Wednesday, a day after the Reserve Bank of India (RBI)
partially lifted restrictions imposed on the lender last year. The central bank
allowed HDFC Bank, the country's largest lender by market capitalization, to
issue new credit cards. The decision comes eight months after the central bank
stopped HDFC Bank from issuing new credit cards.
The RBI, on
the other hand, maintained the status quo on HDFC Bank's ban on introducing new
stated that it would continue to work with the RBI to achieve compliance across
all areas. During the session, HDFC Bank shares rose as much as 3.29 percent to
Rs 1,564.75 a share on the NSE. The stock provided the biggest boost to the
SENSEX and Nifty50.
a.m., the HDFC Bank stock was trading 1.34 percent higher on the exchange at Rs
1,534.95 per share, surpassing the Nifty50 index, which was up 0.38 percent
near a record high earlier in the day. At the moment, the Nifty Bank index was
up 0.83 percent, boosted by the lender's stock.
maintained an 'overweight' rating on HDFC Bank stock, with a Rs 1,800 target
price. The RBI has only partially eased the lender's digital ban, which is a
partial gain because credit cards are one of the lender's most profitable businesses,
news is that the prohibition has been lifted ahead of the
festive season, which begins in September. The lender is seen aggressively
rolling out appealing credit card schemes, according to the brokerage, which
continues to feel HDFC Bank is the greatest franchise to hold in the financial
rating on the lender's shares and a target price of Rs 2,005, HDFC Bank is
projected to recoup its market share in credit cards, having lost 180 basis
points of share as of May 2021 since the end of November 2020.
decision would assist this blue-chip in regaining some of its lost sparkle.
This will be beneficial for Bank Nifty as well, which has underperformed this
is crucial to note that some of the good news is already priced in, since HDFC
Bank is up 6% so far this month, maybe in anticipation of the favorable
development," he added.
multiple instances of technological breakdowns at the lender, the RBI
took an unusual step in December last year enforcing both restrictions.
HDFC bank, HDFC credit card, financial
news, financial blogs, Share Market, Reserve Bank of India, HDFC Bank's stock rises
after the RBI lifts a partial ban, allowing it to sell new credit cards.