RBI may continue its curbs on HDFC Bank following technical glitches

191°
Deal Subedar
9
2223
23
RBI may continue its curbs on HDFC Bank following technical glitches

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 24×7 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It was earlier anticipated that the RBI ban could be withdrawn by June 2021.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...

35 Comments  |  
18 Dimers
  • Sort By
9
2223
23

Seems HDFC bank is not willing to come out of the mud.

50
838
6
drsa478 wrote:

Seems HDFC bank is not willing to come out of the mud.

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.

66
112
3
Expand
Sudarshan61 wrote:

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.

Sbi is 1000 times more corrupt and face outages

9
2223
23
Expand
Sudarshan61 wrote:

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.

I also thinks the same. SBI even had more outages than HDFC after the ban on HDFC by RBI, the latest outage of SBI’s digital platforms being just yesterday.
Also there was scheduled maintenance by SBI on 1st of April. I don’t understand what’s the need for these bank to schedule the maintenance on the first or last day of fiscal year when transactions rate is very high.

13
9835
143

It good to have such checks, to protect existing customers

67
523
4

Yesterday Sbi was down the whole day till 8am today

What about them ?

67
523
4
Expand
Sudarshan61 wrote:

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.

RBI is run by a history pass civil servant , what do you expect ?
IAS have been trained to lick boots since LBSNAA

50
143
4
Expand
Sudarshan61 wrote:

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.

But i think 1 crore or 2 crore penalty was levied on SBI also

50
838
6
Expand
raman12 wrote:

But i think 1 crore or 2 crore penalty was levied on SBI also

Peanut amount considering the size of bank.

50
290
3
Expand
SastaRaju wrote:

RBI is run by a history pass civil servant , what do you expect ?
IAS have been trained to lick boots since LBSNAA

lbsnaa kya hota ha?

51
104
4
Expand
drsa478 wrote:

I also thinks the same. SBI even had more outages than HDFC after the ban on HDFC by RBI, the latest outage of SBI’s digital platforms being just yesterday.
Also there was scheduled maintenance by SBI on 1st of April. I don’t understand what’s the need for these bank to schedule the maintenance on the first or last day of fiscal year when transactions rate is very high.

every day in the mid night core banking systems will run “End of the Day” jobs which posts the transaction to core banking, in the same way systems will run “End of Year” jobs from Core banking applications side and it will take a lot of time for these jobs depends on the no.of transactions.

once EOD completed then they need to run BOD Beginning of the day jobs
best example for BOD when u transact on a holiday posting date will be shown next working day like that

75
380
3

Hdfc have not even updated their app since sep 2020 .. joy joy

9
2223
23
dark.demon wrote:

Hdfc have not even updated their app since sep 2020 .. joy joy

Lol. WHAT?! joy

9
2223
23
SastaRaju wrote:

Yesterday Sbi was down the whole day till 8am today

What about them ?

RBI is saying since December 2020 that we are reviewing the outages of SBI. neutral_face

9
2223
23
Expand
raman12 wrote:

But i think 1 crore or 2 crore penalty was levied on SBI also

Le de ke sab apna hi paisa loota ja raha hai. In PSUs.

9
2223
23
Expand
dark.demon wrote:


https://cdn0.desidime.com/attachments/photos/675456/medium/Screenshot_2021-04-02-16-51-49-60.jpg?1617362518

Yeah. Wasn’t doubting you. But is surprised to see the ignorance of HDFC Bank. RBI bhi kya kare.

HDFC Bank’s app is really old age and needs serious upgradation.

75
380
3
Expand
drsa478 wrote:

Yeah. Wasn’t doubting you. But is surprised to see the ignorance of HDFC Bank. RBI bhi kya kare.

Ha i Knew u weren’t doubting. But I just posted the image for other members to see atleast SBI updates the app stuck_out_tongue_closed_eyes stuck_out_tongue_closed_eyes

67
523
4
Expand
kukdookoo wrote:

lbsnaa kya hota ha?

Training institute of Group A civil servants

50
290
3
Expand
SastaRaju wrote:

Training institute of Group A civil servants

Inko servant mat kaho. Inke liya to servant hum log ha.

50
528
8
SastaRaju wrote:

Yesterday Sbi was down the whole day till 8am today

What about them ?

That’s routine system maintenance. They had mentioned so on their site on March 30 and 31. Someone mentioned this in the other thread

50
528
8
Expand
kukdookoo wrote:

lbsnaa kya hota ha?

Lal Bahadur Shastri National Academy of Administration.

Its’ a civil service training institute on public policy and public administration located in Mussorie, Uttarakhand

294
6811
72
Expand
Sudarshan61 wrote:

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.

But SBI is govt bank with service as motto also zero balance account.
HDFC is premium Bank with premium charges so expectation high.
There must be strong reason else why RBI would be harsh.
Simple mistake of HDFC: in their website for credit card u can not see only unbilled credits or only unbilled debits in 2nd page onwards, when u click 2nd page it displays both unbilledcredit+debit – ridiculous. Even payzapp is shady app, smartbuy also clumsy
SBI is much better in many ways, of course no one can beat HDFC offers

50
556
4
Expand
drsa478 wrote:

RBI is saying since December 2020 that we are reviewing the outages of SBI. neutral_face

They are still waiting in sbi long counter lines while the sbi staff are having lunch

57
282
3

Digital 2.0 ?? With this shitty app only? rolleyes

9
2223
23
Expand
Ramta_Jogi wrote:

That’s routine system maintenance. They had mentioned so on their site on March 30 and 31. Someone mentioned this in the other thread

We are talking about the outages only outside the scheduled maintenance time. They have mentioned maintenance period of 4 hours. But it was out for whole day.

454
6097
56

Every time this glitches effecting on hdfc bank and banknifty 🤦‍♂️.management should do something. This 2nd or 3rd time this year

Missing