Wednesday, August 18, 2021
The Reserve Bank of India has lifted the ban on the issue of new credit cards which may trigger an up to 32 percent rally in the HDFC Bank’s stock, according to analysts, as the lift has come ahead of the festive season, presenting an opportunity to capture market share.
The HDFC Bank scrip surged 3 percent at Rs 1,564.75 on the BSE in intra-day trade today(18th August 2021) and was among the top gainers on the BSE barometer. In comparison, the S&P BSE Sensex was up 0.5 percent at 10:30 AM.
Some analysts opine that the lender will be able to regain its lost market share of 180 bps or even more, as there is a large customer base to which it can cross-sell. Financially, the lifting of the ban will protect HDFC Bank's overall profitability as the credit card segment is the key earnings driver, says Motilal Oswal Financial Services.
