HDFC Bank Hits Record High After RBI Appoints Firm To Audit IT Operations

HDFC Bank shares changed hands on the BSE compared with an average of 4.80 lakh shares traded daily in the past two weeks

HDFC Bank Hits Record High After RBI Appoints Firm To Audit IT Operations

HDFC Bank's market capitalisation touched record high of Rs 8.59 lakh crore

HDFC Bank shares rose as much as 7 per cent to hit record high of Rs 1,578 on the BSE after the bank informed exchanges that the Reserve Bank of India has appointed a professional information technology (IT) company to audit its IT operations after the bank in December was asked to stop all launches of its upcoming digital business-generating activities. HDFC Bank shares were witnessing higher than usual trading volumes on the BSE. As many as 7.92 HDFC Bank shares changed hands on the BSE compared with an average of 4.80 lakh shares traded daily in the past two weeks, data from BSE showed. (Track HDFC Bank stock price here)

On December 2, 2020, the Reserve Bank of India asked HDFC Bank to temporarily stop all launches of its upcoming digital business-generating activities and sourcing of new credit card customers after outage at its data centre which impacted operations in November.

RBI had asked the bank's board to examine the lapses and fix accountability, the HDFC Bank stated in a stock exchange filing on Thursday, December 3.

On November 21, the digital payments business of HDFC Bank was down for more than 12 hours, following a power outage in its primary data centre and after that RBI advised the bank to temporarily stop all launches of its digital business generating activities planned under Digital 2.0 and other proposed business generating IT applications, and secondly, halt the sourcing of new credit card customers.

Meanwhile, with the RBI appointing the IT company to audit its technology operations is positive for the country's largest private sector lender.

As of 12:51 pm, HDFC Bank shares traded 5.58 per cent higher at Rs 1,559 leading the Sensex rally by contributing over 300 points to the BSE 30-share index. HDFC Bank's market capitalisation touched record high of Rs 8.59 lakh crore.