Banking regulator, RBI has lifted all restrictions on HDFC Bank, permitting it to unveil new digital initiatives that was imposed in December 2020 after a spate of outages in the bank's Internet and mobile banking. Removal of curbs which have been in place for more than one year is a big boost as brokerages see big upside in the stock.
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Brokerages on HDFC Bank
Nomura maintains 'buy' with a target price of Rs 1,955/share , implying a potential upside of 40%.
Morgan Stanley maintains 'overweight' with a target price of Rs 2,050/share, implying a potential upside of 46.7%.
Kotak Institutional Equities upgrades stock from ‘add’ to ‘buy’ with a fair value of Rs 1,740/share, implying a potential upside of 25%.
A look back at the curbs
The action by the central bank came after customers of HDFC Bank faced a number of incidents of outages in internet banking, mobile banking, and payment utilities of the bank over the past two years.
In December 2020, the banking regulator had directed HDFC Bank to temporarily halt all digital launches as well as new sourcing of credit card customers, following various outages that the private lender faced due to technical glitches in the past two years.