Sunday, October 17, 2021
Home > Finance News > What made HDFC’s big boss write the Reserve Bank a thank-you note

What made HDFC’s big boss write the Reserve Bank a thank-you note

The boss of India’s largest private bank can’t thank RBI enough for the eight-month ban on issuing new credit cards. HDFC Bank‘s CEO Sashidhar Jagdishan in a company-wide communique said the central bank RBI’s embargo enabled the bank to reimagine its IT systems and processes and “turbo-charge” the pace of its technology transformation.

Jagdishan reiterated the bank’s plan to be “back with a bang” in the card space and regain lost market share.

As per Macquarie’s analysis, HDFC Bank lost nearly 180 basis points of market share as of May 2021 since end of November 2020 when the ban on launch of new credit cards came into effect. Their market share slipped to 24% while

and SBI Cards gained 130bps and 37bps to 17.4% and 19.2%, respectively.

The lender also has vast ground to gain and can easily capture back the space it lost after it added 36.5 lakh liability accounts from January to June 2021,1.5-2 lakh credit cards per month pre-Covid.

“I am thankful for the rap on the knuckles from the regulator. This rap has opened our eyes to the world of possibilities,” Jagdishan was quoted as saying in a TOI report. “In the coming time, we will be able to demonstrate the technology transformation that we have embarked on.”

Jagdishan also wrote of HDFC’s future credit card rollout plans. He added that business generation activities would continue under the Digital 2.0 initiative until further review. He plans to scale operations safely by building a ‘digital factory’ and an ‘enterprise factory’.

“Overall, lifting of RBI restrictions before the beginning of festive season is a positive development as HDFC Bank has usually been aggressive during festive season and offers various discounts on consumer products,” said Nitin Aggarwal, research analyst, Motilal Securities.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

%d bloggers like this: