RBI allows HDFC Bank to sell new credit cards

HDFC Bank on Wednesday said RBI has relaxed the restrictions placed on the bank to issue new cards. Reserve Bank of India (RBI) 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.

"As a further update to the above intimations, we wish to inform you that the RBI vide its letter dated August 17, 2021, has relaxed the restriction placed on sourcing of new credit cards," it said in a regulatory filing.

HDFC Bank's managing director and chief executive Sashidhar Jagdishan said the largest private sector will be aggressive and "come back with a bang" as it seeks to win back lost market share in the credit card segment.

"With the lifting of the restriction on cards acquisition, all the preparations and strategising that we have put in place to 'come back with a bang' will now be rolled out," Jagdishan said in an email to its over 1.2 lakh employees.

The board of directors of the bank has taken note of the said RBI letter, it said. HDFC Bank said the restrictions on all new launches of the digital business generating activities planned under Digital 2.0 will continue till further review by RBI. "We will continue to engage with RBI and ensure compliance on all parameters," the bank said. Stock of HDFC Bank traded 2.06 per cent up at Rs 1,546.00 apiece on BSE

Conceding that the bank has lost customer market share in the over nine months of the ban, Jagdishan said it will go aggressively to the market with its existing products and also launch new ones in the form of co-brands and partnerships. "I am confident that we will regain and grow our customer market share and revenue market share in the time to come.