Moody’s said in a note on Monday that the bank’s brand has also been affected by the poor functioning of the digital business.
Global rating agency Moody’s Investors Service has said that HDFC Bank’s credit has been made negative due to difficulty in its digital functioning. It is the second largest bank in the country in terms of deposits. During the last few years, the IT work of the bank was facing a lot of difficulties, due to which the RBI had suggested to the bank that it should increase the digital functioning after strengthening the IT system.
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Only last week, the Reserve Bank had asked HDFC Bank to postpone all its launches under Digital 2.0. Also, new cards cannot be issued to credit card customers.
Moody’s found that the regulator took action due to the weak digital infrastructure of HDFC Bank. Moody’s has negatively credited the bank’s credit rating as it continues to provide service to its customers through digital channels.
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Moody’s said in a note on Monday, “The bank’s brand has also been affected due to the poor functioning of the digital business. The bank’s brand has deteriorated among those who are custormous tech savvy.”
However, Moody’s does not expect the regulator’s action to affect the bank’s current business.
