HDFC Bank down for 4th day: Country’s largest private sector lender HDFC Bank is down for the 4th consecutive day and the authorities haven’t made it clear when the bank’s NetBanking and MobileBanking App platforms will be stabilised. The latest glitch at the private customer bank has rendered its 4 crore customers helpless. They are unable to perform any transaction. The share of HDFC Asset Management also slipped nearly 5 per cent on Thursday morning.
HDFC Bank, which had bagged the 2019 Best Digital Banking Award from Asiamoney, is struggling to fix the glitches to date. Nobody really knows what is happening inside the bank. Even, the bank’s MD Aditya Puri, who was in Chandigarh on Wednesday to attend the Progressive Punjab Investors’ Summit being held on 5th and 6th December in Mohali, didn’t say a word on the ongoing crisis at the bank. Aditya Puri’s tenure as MD and CEO of HDFC Bank ends on October 26, 2020.
Social media users said the Karvy Stock Broking (KSBL) fiasco could have cast its shadow on HDFC Bank. The bank had granted the brokerage a loan facility of Rs 350 crore while Karvy owes ICICI Bank Rs 642 crore. Apart from that, IndusInd Bank and Bajaj Finance have given loans worth Rs 340 crore each to Karvy on the basis of securities as collateral. If Karvy does not pay back, the banks will lose their money because the collateral is no longer there, reports said. The total estimated exposure of the four lenders to Karvy Stock Broking is Rs 1,400 crore.
Rajesh Sawhney, an HDFC customer said he is a client of the bank for 25 years and he found the bank is broken for so many different reasons. Sawhney outlined the following reason behind the poor performance of the private customer bank:
– Each department is compartmentalized
– Each branch has different SOPs
– Some HDFC Banks are good at one task and bad at others.
If any customer tries to log in to the net banking or mobile app, the error message blames the individual that “You seem to be in Low Network Area”.
On December 3, 2019, HDFC Bank had apologised that the resolution of the technical glitch is taking more time than anticipated, but the issue will be solved soon as its experts are working round the clock. While some customers are able to transact using NetBanking and MobileBanking App, a few may still be facing intermittent issues, the bank added. Since December 3, the bank hasn’t said anything about the crisis.