According to sources, the bank received the notice regarding the ban late on Tuesday and is expected to inform the stock exchanges. Though the announcement came late for the Indian markets, HDFC Bank American Depository Receipts (ADRs) on US stock exchanges rose nearly 1% at 9 pm IST. The bank had earlier said that it is ready to issue the card as soon as the ban is lifted.
The discount comes ahead of time for HDFC Bank as a major chunk of credit card spending happens during the festive season from September to December. Retailers also announce special offers to boost sales during this period. HDFC Bank lost over 1% market share in the business after the ban, but still accounts for almost a quarter of credit card transactions. sbi card, ICICI Bank And axis Bank Progress was made during this period.
Talking to the media last month, HDFC Bank senior executive Parag Rao said that the bank issued cards on a large scale to customers who had accounts in it. The bank has issued 1.5 crore credit cards against five crore customers. He said the gap will remain due to the bank’s credit policy, but there has been a huge jump in the customer base, leading to a pick-up in demand.
RBI had banned HDFC Bank after repeated outages on its internet banking and mobile banking platforms. Since then, the bank has informed shareholders that it has taken special initiatives to enhance infrastructure, enhance disaster recovery and security.
Rao said in his conversation that the bank has used the post-ban period to strengthen Salesforce and other channels. “We have used the time to decongest our processes, speed up our software updates, identify failure points with partners, and build a framework for replacing systems before any problems arise.”
Apart from the immediate reforms under the short-term plan, the bank has also submitted a medium-term plan to the RBI, where it will completely revamp its digital platform which will enable the bank to manage its future growth.
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