HDFC Bank shares gain as RBI lifts curbs on new credit card issuances

NEW DELHI: Shares of HDFC Bank on Wednesday rose nearly two per cent in early trade as investors cheered the Reserve Bank's decision to allow the lender to issue new credit cards.

With the lifting of the eight-month-long ban on HDFC Bank with respect to selling new credit cards, its shares climbed 1.61 per cent to Rs 1,539.10 apiece after opening at Rs 1,550.

The scrip touched an intra-day high of Rs 1,564.75 apiece on the BSE. The market capitalisation stood at Rs 8,51,282.53 crore. On the NSE too, similar trends were witnessed as the shares gained 1.60 per cent to Rs 1,538.95 and reached an intra-day high of Rs 1,565.35.

The scrip opened at Rs 1,556.70 apiece. In a regulatory filing on Wednesday, HDFC Bank said the Reserve Bank of India (RBI), through its letter dated August 17, has relaxed the restriction placed on sourcing of new credit cards.

The central bank had issued orders in December and February to HDFC Bank on certain incidents of outages in the internet banking /mobile banking/ payment utilities of the bank over the past two years.

HDFC Bank also said the restrictions on all new launches of the digital business generating activities planned under Digital 2.0 will continue till further review by the RBI. "We will continue to engage with RBI and ensure compliance on all parameters," it added. The 30-share benchmark Sensex was trading higher at 56,064.67.