Jain’s visit to the bank’s data centre was to drive home to HDFC Bank that the regulator had taken serious note of the digital transaction failures. Subsequent to the initial spate of digital transaction failures in 2019, HDFC Bank suffered at least two other major online outages. Unlike other banks, HDFC Bank avoided hiring external consultants to build its digital business. HDFC Bank stock is trading at a one-year forward price-to-earnings multiple of 18.12 times, a considerable premium to SBI’s 7.92. That’s not an apples-to-apples comparison certainly, but it will test HDFC Bank’s mettle.

Source: Mint May 11, 2021 15:33 UTC