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<ul><li>The HDFC Bank lost over $2 billion in market value after the Reserve Bank of India (RBI) asked it to stop all launches of its upcoming digital business-generating activities temporarily.</li><li>The share price of private-sector lenders cracked nearly 2% during the afternoon session after trading in the green for almost two hours. </li><li><a href="https://www.businessinsider.in/">Check out the latest news and updates on Business Insider.</a> </li></ul>India’s second most valued listed company, HDFC Bank lost over $2 billion in market value after the <a href="https://www.businessinsider.in/finance/banks/news/rbi-directs-hdfc-bank-to-suspend-its-digital-business-and-new-credit-cards-amid-rising-incidents-of-outages/articleshow/79542055.cms">Reserve Bank of India (RBI) asked it to temporarily stop all launches </a>of its upcoming digital business-generating activities and sourcing of new credit card customers. The share price of private-sector lenders cracked over 2% during the afternoon session after trading in the green for almost two hours. The crack in its shares also brought the Indian benchmark index down from 300 points higher to 30 points higher. <div type="image" title="HDFC Bank" msid="79545706" hostid="261"></div> The RBI decision came after the <a href="https://www.businessinsider.in/tech/apps/news/hdfc-banks-net-banking-upi-services-and-atms-down-due-to-data-centre-outage/articleshow/79344484.cms">recent outage</a> at its data centre, which impacted operations last month. It is noteworthy that among all the lenders, HDFC is the largest credit card seller in the country. “RBI has issued an order dated December 2, to HDFC Bank Ltd with regard to certain incidents of outages in the internet banking/ mobile banking/ payment utilities of the bank over the past two years, including the recent outages in the bank’s internet banking and payment system on November 21, 2020, due to a power failure in the primary data centre,” the bank said in a regulatory filing. According to the bank the <a href="https://www.bseindia.com/xml-data/corpfiling/AttachLive/893abfb4-95cb-4942-a555-312aef465ef4.pdf">RBI order</a> “has advised the bank to temporarily stop all launches of the digital business-generating activities planned under its program Digital 2.0 and other proposed business generating IT applications and sourcing of new credit card customers”. In addition, the order has directed the bank board to examine the lapses and fixes accountability. The lender said the above measures should be considered for lifting upon satisfactory compliance with the major critical observations as identified by the RBI. HDFC Bank said “over the last two years, it has taken several measures to fortify its IT systems and will continue to work swiftly to close out the balance and would continue to engage with the regulator in this regard. “The bank has been taking conscious, concrete steps to remedy the recent outages on its digital banking channels and assures its customers that it expects the current supervisory actions will have no impact on its existing credit cards, digital banking channels and existing operations. The bank believes that these measures will not materially impact its overall business,” it added. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/top-stock-movers-ril-maruti-indigo-dhfl-spicejet-wipro-future-retail-and-others/articleshow/79541459.cms" data-type="tilCustomLink">Sensex, Nifty hit record high — these are the top movers in trade today </a> <a href="https://www.businessinsider.in/tech/news/india-may-reportedly-block-wikipedia-if-the-site-doesnt-delete-the-map-showing-aksai-chin-as-a-part-of-china/articleshow/79541391.cms" data-type="tilCustomLink">India may reportedly block Wikipedia if the site doesn't delete the map showing Aksai Chin as a part of China</a>

HDFC Bank has lost over $2 billion in market value after the RBI crackdown on the lender’s digital business

Reserve Bank has accorded approval to HDFC Mutual Fund to raise its stakes in Federal Bank as well as in Equitas Small Finance Bank to up to 9.5 per cent. The clearance has been granted with reference to the application made by <keyword id="174045" type="General" weightage="20" keywordseo="hdfc-amc" source="Orion">HDFC AMC</keyword> to RBI, according to a regulatory filing on Thursday. "...the Reserve Bank of India (RBI) vide its letter dated September 20, 2023, has accorded its approval to HDFC Asset Management Company Ltd (HDFC AMC) for acquiring aggregate holding of up to 9.5 per cent of the paid-up share capital or voting rights of Federal Bank," the bank said in the filing. In a separate filing, Equitas Small Finance Bank said HDFC AMC got RBI's approval on September 20 to raise 'aggregate holding' of up to 9.5 per cent of the paid-up equity capital or voting rights in the small finance bank. HDFC AMC holds a 4.49 per cent stake in Kerala-based Federal Bank, and a 4.68 per cent stake in Equitas Small Finance Bank as of June 30, 2023. The approval granted by the <keyword id="6358156" type="General" weightage="20" keywordseo="central-bank" source="Orion">central bank</keyword> is subject to compliance with the relevant provisions of the <keyword id="6354778" type="General" weightage="20" keywordseo="banking" source="Orion">Banking</keyword> Regulation Act, 1949, RBI's Master Direction and Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking Companies dated January 16, 2023 (as amended from time to time), provisions of the Foreign Exchange Management Act, 1999, regulations issued by Securities and Exchange Board of India (Sebi), and any other guidelines, regulations and statutes as applicable, the filing said. As per the RBI intimation, it said HDFC AMC must ensure that the aggregate holding in the bank does not exceed 9.5 per cent of the paid-up share capital or voting rights of the bank at all times. Further, it said, if the aggregate holding falls below 5 per cent, prior approval of RBI will be required to increase it to 5 per cent or more of the paid-up share capital or voting rights of the bank.

HDFC MF gets Reserve Bank nod for raising stake in Federal Bank, Equitas SFB to 9.5%

The <keyword id="19899810" type="General" weightage="20" keywordseo="reserve-bank-of-india" source="keywords">Reserve Bank of India</keyword> (<keyword id="19899808" type="General" weightage="20" keywordseo="rbi" source="keywords">RBI</keyword>) has approved <keyword id="19895995" type="General" weightage="20" keywordseo="hdfc-bank" source="keywords">HDFC Bank</keyword>'s proposal to acquire an up to 9.5% stake in <keyword id="19901053" type="General" weightage="100" keywordseo="indusind-bank" source="keywords">IndusInd Bank</keyword>. "Pursuant to Regulation 30 of the <keyword id="35210" type="General" weightage="20" keywordseo="SEBI" source="Orion">SEBI</keyword> Listing Regulations, we would like to inform you that the Reserve Bank of India vide its letter dated February 5, 2024 has accorded its approval to HDFC Bank Limited ("applicant") for acquiring "aggregate holding" of up to 9.50% of the paid-up share capital or voting rights in IndusInd Bank Limited. The aforesaid RBI approval has been granted with reference to the application made by the applicant to the RBI," IndusInd Bank said in a stock exchange filing. The approval also stipulates that if the "aggregate holding" of HDFC Bank falls below 5%, prior approval of the RBI will be required to increase it to 5% or more of the paid-up share capital or voting rights. The RBI approval is subject to compliance with the <keyword id="19976511" type="General" weightage="20" keywordseo="banking-regulation-act" source="keywords">Banking Regulation Act</keyword>, 1949, RBI's Master Direction and Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking Companies dated January 16, 2023 (as amended), provisions of the Foreign Exchange Management Act, 1999, regulations by the Securities and Exchange Board of India (SEBI), and other applicable statutes, regulations, and guidelines, the filing noted. --IANS sps/dpb

HDFC gets RBI nod to acquire 9.5% stake in IndusInd Bank

Home financier HDFC and <keyword id="6357149" type="CITY" weightage="100" keywordseo="HDFC-bank">HDFC Bank</keyword> may merge to create the second largest bank in terms of assets after the <keyword id="6354731" type="CITY" weightage="60" keywordseo="State-Bank-Of-India">State Bank of India</keyword> (SBI) if "economies of scale prove beneficial" to both. 
 
Ever since the Reserve Bank of India (RBI) allowed banks to float special infrastructure bonds, exempting them from reserve requirements and priority sector responsibilities, there have been murmurs of a possible merger between HDFC Bank and its parent HDFC. 
 
As per RBI regulations, a bank needs to set aside 4% of its deposits as cash reserve ratio and 22.5% in government bonds. So HDFC would have to transfer its assets to the bank. 
 
Paresh Sukthankar, deputy managing director, HDFC Bank, said after announcing its quarterly financial results, "The regulations by themselves do not warrant a merger. We will have to study the ramifications and see whether there is some merit on coming back to the drawing board." 
 
However, HDFC Bank has told the Bombay Stock Exchange that the media reports on the merger is erroneous and no such proposal is being considered.

HDFC And HDFC Bank May Merge To Form The Second Largest Bank In India

New Delhi, May 22 () Bank and NBFC stocks on Friday tumbled up to 8 per cent after the Reserve Bank of India (RBI) extended moratorium on loan repayments. "The markets have initially reacted negatively to the RBI announcement. The Street keeps expecting more and more reliefs without knowing as to how each of these will be helpful. Shareholders of banks are worried by the current economic conditions and the pain that is postponed due to the moratorium being extended," said HDFC Securities MD &amp; CEO Dhiraj Relli. Shares of Axis Bank plunged 6.78 per cent, ICICI Bank dropped 6.12 per cent, RBL Bank 5.71 per cent, IndusInd Bank 4.59 per cent, Federal Bank 4.32 per cent, Kotak Mahindra Bank 2.85 per cent, HDFC Bank 2.71 per cent and SBI 1.57 per cent on the BSE. The BSE BANKEX was trading lower by 2.64 per cent. Among non-banking financial companies (NBFCs), Ujjivan Financial Services tumbled 8.25 per cent, Shriram Transport Finance Company tanked 8 per cent, Mahindra &amp; Mahindra Financial Services 6.20 per cent and Bajaj Finance 5.66 per cent. The RBI has announced further extension in moratorium period to end-borrowers from May 31 till August 31. We read this as major negative for all NBFCs (including the ones with strong liability franchises) as this would further delay the overall collection and recovery procedure, and stretch the total liquidity cycle for all. In addition, this would further damage financial discipline, especially for small-ticket borrowers and MFIs (microfinance institutions)," Emkay Global Financial Services said in a note. Jimeet Modi, founder and CEO of SAMCO Securities &amp; StockNote said, "Extension of moratorium is good for the economy but in substance, it will negatively impact banks and NBFCs. As a whole, the RBI has taken a calibrated approach to save the economy rather than favouring banks." The RBI on Friday slashed interest rates, extended moratorium on loan repayments and allowed banks to lend more to corporates in an effort to support the economy which is likely to contract for the first time in over four decades. The benchmark repurchase (repo) rate was cut by 40 basis points to 4 per cent, RBI Governor Shaktikanta Das said announcing the decisions taken by the central bank's Monetary Policy Committee (MPC) that met ahead of its scheduled meeting in early June. The RBI supplemented the interest rate cut by extending by three months the permission given to all banks to give a three-month moratorium on payment of monthly instalments on all outstanding loans, providing relief to home and auto buyers as well as the real estate sector where construction activities are already at a standstill. The moratorium on interest on working capital was also extended by three months. SUM HRS

Bank, NBFC stocks tumble after RBI decision

Be it strong or mild, the Indian <keyword id="6355302" type="ORGANIZATION" weightage="100" keywordseo="Rupee">rupee</keyword> has always been vulnerable to outside shocks. Two forecasters of Indian rupee have come out with their insights and the reports suggest, the rupee will see worst time soon. 
 The <keyword id="45123" type="CITY" weightage="20" keywordseo="HDFC">HDFC</keyword> Bank Ltd., which had the most accurate estimates in <a href="http://www.bloomberg.com/news/articles/2016-10-16/top-two-forecasters-split-on-rupee-after-best-rally-since-2014">Bloomberg</a>'s quarterly rankings, stated U.S. Federal Reserve policy tightening driving a 2.6 percent decline in the currency to 68.50 per dollar by March 31, from Friday's close of 66.7150. 
 Whereas, the second top forecaster, the <keyword id="382793" type="ORGANIZATION" weightage="20" keywordseo="National-Australia-Bank-Ltd">National Australia Bank Ltd</keyword>., sees the rupee will strengthen to 66.20 as economic growth and a narrowing current account deficit help offset any outflows from emerging markets. 
 
"The rupee could take a bit of beating along with other regional currencies. The Fed's December decision "could lead to uncertainty in global financial markets and a risk-off episode," Tushar Arora, HDFC's senior economist for treasury based near New Delhi, told Bloomberg. 
 
HDFC’s claim strengthened, that the rupee will go towards 68.845 in 2013, when the currency fell the most in three months after Fed pushed the case for higher U.S. rates. 
 
India's currency strengthened 1.4 percent in the third quarter, the most in two and a half years, and National Australia Bank says foreign investors will keep buying. 
 
"India is experiencing relatively strong growth, which should attract inflows," Julian Wee, senior markets specialist for Asia at the lender in Singapore. Gradual lowering of the policy rate should also benefit both local equities and bonds, while leaving a still-healthy carry premium over the dollar and many other Asian currencies, told Bloomberg. 
 The rupee is under threat due to withdrawal of matured deposits made by the Indian diaspora. As per India’s central bank, the Reserve Bank of India (<keyword id="30067" type="ORGANIZATION" weightage="20" keywordseo="RBI">RBI</keyword>), $20 billion of this amount will be withdrawn from the country by year-end. 
 
"While we expect the situation to remain largely managed, there could be short-term liquidity mismatches, which could lead to some volatility in the exchange rate," HDFC's Arora told <a href="http://www.bloomberg.com/news/articles/2016-10-16/top-two-forecasters-split-on-rupee-after-best-rally-since-2014">Bloomberg</a>. 
 
This table by Bloomberg FX Forecast Accuracy Rankings shows the most accurate forecasters of the rupee in the four quarters ending Sept. 30. 
1 HDFC Bank 
2 NAB 
3 BMO Capital Markets 
4 Scotiabank 
5 Wells Fargo 
6 RHB OSK Securities 
7 Handelsbanken 
8 ING 
 
"The RBI will probably be quite keen to keep the rupee somewhat stable against the dollar, which should be fairly manageable given the strong growth rate and the attractive carry," National Australia Bank's Wee told Bloomberg. "We continue to see mild and broad upside in the dollar, but the rupee should outperform within the region."

Belt up! Rupee expected to tumble to its worst ever soon

<ul><li><keyword id="6357149" type="COMPANY" weightage="20" keywordseo="hdfc-bank">HDFC Bank</keyword>’s customers were reporting unable to conduct transactions using net banking and UPI payments platform.</li><li>The bank has stated that the problem is due to an outage at one of its data centres.</li><li>The Reserve Bank of India (RBI) has asked HDFC Bank to furnish more details about the cause of the outage.</li></ul>Customers of HDFC Bank were reporting problems with their net banking and digital payments. Many were unable to send transactions, others have gone so far as to say that they were unable to withdraw money from ATMs. <div type="image" title="Grids" msid="79344457" hostid="261" caption="&amp;lt;p&amp;gt;HDFC Bank&amp;#39;s services down on BHIM, Google Pay and the bank&amp;#39;s own mobile app&amp;lt;/p&amp;gt;"></div> According to India’s largest private sector lender, there was been an outage at one of its data centres which has left certain services to be unable. HDFC Bank, however, did not divulge the cause of the data center’s downfall — whether it is due to internal or external causes, whether it is a glitch or sabotage. The Reserve Bank of India (<a href="https://economictimes.indiatimes.com/industry/banking/finance/banking/hdfc-bank-outage-rbi-seeks-details/articleshow/79359696.cms">RBI</a>) has asked the bank to furnish more details. <div type="twitter" handle="HDFCBank_Cares" handlename="HDFC Bank Cares" image="http://pbs.twimg.com/profile_images/880333363982159872/lA3myMTv_normal.jpg" favoritecount="0" retweetcount="0" status="@aayushi06 Hi, an unexpected outage at one of our data centres has impacted some of our services. We are working to… https://t.co/HiivPDftD9" createdat="1605979497000" id="1330200538680619008"></div> Complaints first started coming in at around 6:00pm in the evening on Saturday, November 21 and reached their peak at 8:00pm. <div type="image" title="hdfc bank downdetector" msid="79344482" hostid="261" caption="&amp;lt;p&amp;gt;Spike in problems with HDFC Bank over the last 24 hours&amp;lt;/p&amp;gt;"></div> <div type="twitter" handle="suraj64" handlename="suraj jethwa" image="http://pbs.twimg.com/profile_images/918921437183741952/-AVCbeQ7_normal.jpg" favoritecount="0" retweetcount="0" status="From last couple of hours I am not able to withdraw money from any of the ATM, even not able to transfer amount to… https://t.co/ATMTo06V3P" createdat="1605978558000" id="1330196602129174528"></div> <div type="twitter" handle="dirarivazhagan" handlename="Arivazhagan" image="http://pbs.twimg.com/profile_images/1247530095088001035/Ldk-1LdV_normal.jpg" favoritecount="59" retweetcount="1" status="#HDFC Bank down for the past one hour. No services for net banking and atm @HDFC_Bank" createdat="1605972265000" id="1330170206736486409"></div> Services resumed by Sunday morning, November 22. HDFC Bank too issued a statement saying, "The services impacted following the outage have been restored. While you may face intermittent issues as the system stabilizes there is no reason to worry now! Our sincere apologies for the inconvenience caused. Thank you for bearing with us during this period." SEE ALSO: <a href="https://www.businessinsider.in/science/environment/news/mount-everest-home-to-microplastics-and-melting-glaciers/articleshow/79324609.cms">Microplastics found at the highest point on Earth as the glaciers around Mount Everest’s death zone melt</a> <a href="https://www.businessinsider.in/tech/news/mumbais-massive-power-cut-last-month-may-have-been-the-work-of-hackers/articleshow/79318282.cms">Mumbai’s massive power cut last month may have been the work of hackers</a> <a href="https://www.businessinsider.in/finance/banks/news/rbi-panel-proposes-raising-promoter-stake-cap-allowing-nbfcs-to-become-banks-and-large-corporation-can-own-banks/articleshow/79323107.cms">RBI panel proposes recommendations that could redefine private bank ownership</a>

HDFC Bank’s net banking, UPI service and ATMs were down due to a 'data centre outage' but RBI demands more detailed information

<ul><li>Contrary to market expectations, the <keyword id="6375120" type="COMPANY" weightage="20" keywordseo="monetary-policy-committee">monetary policy committee</keyword> of the <keyword id="30067" type="ORGANIZATION" weightage="20" keywordseo="RBI">RBI</keyword> kept the <keyword id="102335" type="ORGANIZATION" weightage="20" keywordseo="Repo">repo</keyword> rate unchanged at 6.5%. </li><li>Given the falling rupee and higher fuel prices, It was widely expected that the central bank would hike the repo rate to 6.75% to keep <keyword id="22195" type="COMPANY" weightage="20" keywordseo="Inflation">inflation</keyword> in check. </li><li>In anticipation of a rate hike, banks like SBI and HDFC increased borrowing rates while fund managers increased their cash holdings. </li></ul>After two consecutive rate hikes of 25 basis points, the monetary policy committee of the Reserve Bank of India (RBI) surprised market pundits by keeping the <a href="https://rbidocs.rbi.org.in/rdocs/PressRelease/PDFs/PR795F23744EF408341E18684D24B464FADDF.PDF">repo rate on hold</a> at its meeting on 5 October. This is the rate at which it lends money to domestic banks. Given the falling rupee and higher fuel prices, it was widely expected that the central bank would hike the repo rate from 6.5% to 6.75% to keep inflation in check. This would have marked the strongest tightening cycle since 2013. In anticipation of a rate hike, banks like SBI and HDFC increased borrowing rates while fund managers increased their cash holdings. The monetary policy committee probably decided against the rate hike for two reasons. Firstly, it ascertained that inflation was in a manageable range given the recent decline in food prices. Secondly, three consecutive rate hikes would have significantly dampened demand for loans, translating to a slowdown in investment and economic activity. However, there will likely be further rate increases ahead. The RBI did change its stance from “neutral” to hawkish, explaining that it would focus on the “calibrated tightening of monetary policy” in order to ensure headline inflation did not exceed its 4% target by more than 2%. As things stand, inflation is expected to touch 4.5% by the end of the current fiscal year. Despite internal and external pressures on the Indian economy, the central bank retained its growth forecast of 7.4% for 2018-19 and 7.6% for 2019-20. Rupee goes past 74 The market did not react well to the RBI’s decision. The rupee, which was trading at 73.81 to the US dollar by the end of 4 October, crashed below 74. The rupee has been in freefall in the year so far owing to capital outflows as foreign investors rerouted funds from emerging markets like India to safe havens like the US, where the Federal Reserve is tightening rates. Meanwhile, the Sensex, an index of 30 strong companies on the Bombay Stock Exchange, has fallen by nearly 800 points following the RBI’s announcement. The repo rate hike would have made <keyword id="6371181" type="UNKNOWN" weightage="20" keywordseo="interest-rates">interest rates</keyword> more attractive for foreign investors, which would have helped in the accumulation of capital inflows.

You Searched For "HDFC Bank RBI decision" and got 8 results

HDFC Bank has lost over $2 billion in market value after the RBI crackdown on the lender’s digital business

Navdeep Yadav

HDFC MF gets Reserve Bank nod for raising stake in Federal Bank, Equitas SFB to 9.5%

PTI

HDFC gets RBI nod to acquire 9.5% stake in IndusInd Bank

IANS

HDFC And HDFC Bank May Merge To Form The Second Largest Bank In India

BI India Bureau

Bank, NBFC stocks tumble after RBI decision

PTI

Belt up! Rupee expected to tumble to its worst ever soon

BI India Bureau

HDFC Bank’s net banking, UPI service and ATMs were down due to a 'data centre outage' but RBI demands more detailed information

Prabhjote Gill

Reserve Bank of India surprises all by keeping interest rates unchanged

Dilsher Dhillon

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