RBI may continue its curbs on HDFC Bank following technical glitches
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HDFC Bank’s wait to get back to the issuance credit cards is likely to get longer as back to back technical glitches it faced last month may prompt the Reserve Bank of India to continue with the ban, experts said.
The outages are likely to trigger an adverse audit report by the RBI-appointed firm as the central bank, which has moved to a 24Ă—7 payments cycle, has little tolerance for outages, they said.
“Due to the recent outage, we believe the chances of an adverse report increases and hence the ban on issuance of new credit cards and launch of digital 2.0 banking could further get delayed,” said Suresh Ganapathy, associate director at financial services firm Macquarie Capital.
It was earlier anticipated that the RBI ban could be withdrawn by June 2021. HDFC Bank has had two technical glitches last month, and two big tech outages in the last two years.
As per Macquarie’s analysis, while the system loan growth has been at 5-6%, HDFC Bank has grown its loan book at a level of 16-17%, almost three times that of the system. This growth comes on the back of a 10% market share base.
The bank also has a market share of 35-40% in the payments market and a 25% share in credit cards. HDFC Bank used to add roughly around 200,000 credit cards per month before the Covid-19 outbreak. “When growth is happening at such a rapid pace, technology, unfortunately, is not able to keep up, in our view,” Ganapathy said. “Many investors argue that all these episodes could result in de-rating of the stock. In our view, a lot depends on HDFC Bank’s ability to add customers and expand.”
RBI had appointed an external professional IT firm for carrying out a special audit of the entire IT infrastructure of HDFC Bank.
https://m.economictimes.com/industry/banking/fi...
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IT system takes time to upgrade…
HDFC never paid attention to its age old IT infrastructure ..Their Netbanking/Mobile banking was never at par with them being no1 private bank…
RBI is being unfair here…it’s not just HDFC which has faced outages in past…even SBI as faced major outages sparing SBI just by saying that they have less digital transaction is just unfair on RBI part.
It good to have such checks, to protect existing customers
Yesterday Sbi was down the whole day till 8am today
What about them ?
Hdfc have not even updated their app since sep 2020 .. 
Lol. WHAT?!
Digital 2.0 ?? With this shitty app only? 
Every time this glitches effecting on hdfc bank and banknifty 🤦‍♂️.management should do something. This 2nd or 3rd time this year
1. Lol, RBI ain’t going to shit to bank like HDFC. Remember these are the banks which are too big to fail.
2. How and why every thing is now linked with stock value …. 
I mean they had to make a report with that word ? What’s de-rating ? It’s over priced already. They just need an excuse to blast off the hill they created.
3. Macquarie’s analysis is for their own sake only. Whatever else they publish to general masses is utter shit. " “When growth is happening at such a rapid pace, technology, unfortunately, is not able to keep up " – not some words expected from big shit firms like Macquarie. Can they say the same about themselves or any other bank or microsoft HDFC is doing such glitches day by day and not to mention many shit psu banks as well.
HDFC net banking, mobile banking sucks. Mobile banking interface is very simple with limited services. I can’t apply new debit card on its net baning & mobile banking. Even government banks offer full-fledged mobile banking services.
You can…
Netbanking have option to upgrade…(that’s how you apply in HDFC)…
But yes in general HDFC netbanking feels like 2 decade old (using ICICI since 2006 and even they had better netbanking website in 2006 compared to HDFC netbanking 2021)
Seems HDFC bank is not willing to come out of the mud.