HDFC Bank: Digital disruption, changing portfolio mix are the dampeners

Moody's says RBI halting the bank's Digital 2.0 initiative and sourcing new credit cards is credit negative

The HDFC Bank stock has corrected over 4 per cent since last Thursday when the regulator asked the bank to stop launches under its Digital 2.0 initiative and sourcing new credit cards. At Rs 1,372.25 apiece, its share price has fallen 7 per cent from its 52-week high it hit nearly 10 days ago. 

For a bank that sources nearly 95 per cent of its retail transactions digitally, analysts at Moody’s termed last week’s development as credit negative. “The RBI action will delay the launch of HDFC Bank's Digital 2.0 initiative, under which the bank aims to consolidate all customers’ digital