Shares of HDFC Bank Surges to New High After RBI Appoints IT Firm for its Audit

The share price of HDFC Bank surged nearly 6 per cent on Tuesday to hit a new high after the bank in a regulatory filing said that the Reserve Bank of India (RBI) has ordered an audit of the entire infrastructure of the private lender through an external professional IT firm. The shares were trading at Rs 1,565.00 up by 87.80 points or 5.94 per cent at 1:06 pm in the Bombay Stock Exchange (BSE). Similarly in the National Stock Exchange (NSE), the shares zoomed 88.25 per cent or 5.98 per cent to stand at Rs 1,565.00.

The bank in a statement to stock exchanges said that under Section 30 (1_B) of the Banking Regulation Act, 1949, the RBI has appointed an external professional IT firm for carrying out a special audit at the cost of the Bank under section 30 (1_C) of the act.

RBI, in the month of December 2020,issued an order to the HDFC Bank regarding certain outages incidents in the internet banking, mobile banking and payment utilities of the bank over the past two years.

The Indian stock market continued its bull run on February 2 indicating a positive reaction and sentiments of the investors towards Budget 2021. Apart from HDFC Bank, Bank Nifty also hit a new record high of 34,652.50 at 09:42 am in the morning jumping 4 per cent.

Shares of the banking sector rallied the most on Tuesday including that of the State Bank of India, Axis Bank, RBL Bank and Federal Bank increasing by 4 per cent each. The rally in the banking stocks can be seen because of the announcements made by the Union Finance Minister Nirmala Sitharaman on Budget Day.

Sitharaman announced setting up of an Asset Reconstruction Company and also introduced a plan to recapitalise public sector banks. The Finance Minister also said that there is an intention to privatise two state-run lenders.

HDFC Bank earlier in January 2021 released its quarterly earnings and had reported 18.1 per cent increase in net profit for the quarter ended December 31, 2021. It also posted a standalone net profit of Rs 8,758.29 crore, against Rs 7,416.48 crore in the year-ago period.

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