6-K 1 d176611d6k.htm FORM 6-K Form 6-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form 6-K

 

 

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16

under the Securities Exchange Act of 1934

For the month of July, 2021

Commission File Number 001-15216

 

 

HDFC BANK LIMITED

(Translation of registrant’s name into English)

 

 

HDFC Bank House, Senapati Bapat Marg,

Lower Parel, Mumbai. 400 013, India

(Address of principal executive office)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  ☒    Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):    Yes  ☐    No  ☒

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):    Yes  ☐    No  ☒

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.    Yes  ☐    No  ☒

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):

82- Not Applicable                    .

 

 

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

     

HDFC BANK LIMITED

                  (Registrant)
Date: July 22, 2021     By  

/s/ Santosh Haldankar

      Name: Santosh Haldankar
      Title: Sr. Vice President (Legal) & Company Secretary

EXHIBIT INDEX

The following documents (bearing the exhibit number listed below) are furnished herewith and are made a part of this Report pursuant to the General Instructions for Form 6-K.

Exhibit I

Description

Communication dated July 17, 2021 addressed to The New York Stock Exchange, 11, Wall Street, New York, NY 10005, United States of America (USA) intimating about the Outcome of the Meeting of the Board of Directors of HDFC Bank Limited held on July 17, 2021.

Exhibit I

July 17, 2021

New York Stock Exchange

11, Wall Street,

New York,

NY 10005

USA

Dear Sir,

Sub: Outcome of the meeting of the Board of Directors of HDFC Bank Limited (“the Bank”) held on July 17, 2021

We would like to inform that the Board of Directors, at its meeting held today, approved:

 

  1.

The standalone and consolidated financial results of the Bank for the first quarter (unaudited) ended June 30, 2021. We enclose herewith the aforesaid results, the segment reporting, press release and the report of the Statutory Auditors in this regard.

 

  2.

The issue of standalone Rule 144A/ Reg. S foreign currency denominated Perpetual Debt Instruments as Basel III compliant Additional Tier I capital (“AT1 Bonds”) to foreign (global) investors outside India, on an unsecured basis, on a public or a private placement basis, along with a proposed listing of the AT1 Bonds and other related activities in the course of the financial year 2021- 22, subject to market conditions and applicable approvals.

Kindly take the same on your records.

Yours truly,

For HDFC Bank Limited

Sd/-

Santosh Haldankar

Senior Vice President - Legal & Company Secretary

Encl: a/a.

LOGO

 

HDFC BANK LIMITED

CIN : L65920MH1994PLC080618

Sandoz House, Shivsagar Estate, Dr. Annie Besant Road, Worli, Mumbai 400 018.

Website: https://www.hdfcbank.com, Tel.: 022- 6652 1000, Fax: 022- 2496 0739

UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2021

 

                          

(₹ in lac)

 

  
         Quarter ended     Year ended
31.03.2021		  
         30.06.2021     31.03.2021     30.06.2020  

Particulars

   Unaudited     Audited
(Refer note 4)		     Unaudited     Audited  
1    Interest Earned (a)+(b)+(c)+(d)     3048297       3042359       3037797       12085823  
   a) Interest / discount on advances / bills     2359273       2381163       2403737       9483454  
   b) Income on investments     649314       616633       559764       2321427  
   c) Interest on balances with Reserve Bank of India and other inter bank funds     30283       31487       62648       234125  
   d) Others     9427       13076       11648       46817  
2    Other Income     628850       759391       407531       2520489  
3    Total Income (1)+(2)     3677147       3801750       3445328       14606312  
4    Interest Expended     1347401       1330344       1471255       5597866  
5    Operating Expenses (i)+(ii)     816043       918129       691146       3272262  
   i) Employees cost     276558       267885       251344       1036479  
   ii) Other operating expenses     539485       650244       439802       2235783  
6    Total Expenditure (4)+(5) (excluding Provisions and Contingencies)     2163444       2248473       2162401       8870128  
7    Operating Profit before Provisions and Contingencies (3)-(6)     1513703       1553277       1282927       5736184  
8    Provisions (other than tax) and Contingencies     483084       469370       389152       1570285  
9    Exceptional Items     —         —         —         —    
10    Profit / (Loss) from Ordinary Activities before tax (7)-(8)-(9)     1030619       1083907       893775       4165899  
11    Tax Expense     257655       265256       227913       1054246  
12    Net Profit / (Loss) from Ordinary Activities after tax (10)-(11)     772964       818651       665862       3111653  
13    Extraordinary items (net of tax expense)     —         —         —         —    
14    Net Profit / (Loss) for the period (12)-(13)     772964       818651       665862       3111653  
15    Paid up equity share capital (Face Value of ₹ 1/- each)     55267       55128       54903       55128  
16    Reserves excluding revaluation reserves           20316953  
17    Analytical Ratios        
   (i) Percentage of shares held by Government of India     Nil       Nil       Nil       Nil  
   (ii) Capital Adequacy Ratio     19.1 %      18.8 %      18.9 %      18.8 % 
   (iii) Earnings per share (EPS) (₹) (Face Value of ₹ 1/- each)        
   (a) Basic EPS before & after extraordinary items (net of tax expense) - not annualized     14.0       14.9       12.1       56.6  
   (b) Diluted EPS before & after extraordinary items (net of tax expense) - not annualized     13.9       14.7       12.1       56.3  
   (iv) NPA Ratios        
   (a) Gross NPAs     1709851       1508600       1377346       1508600  
   (b) Net NPAs     548580       455482       327996       455482  
   (c) % of Gross NPAs to Gross Advances     1.47 %      1.32 %      1.36 %      1.32 % 
   (d) % of Net NPAs to Net Advances     0.48 %      0.40 %      0.33 %      0.40 % 
   (v) Return on assets (average) - not annualized     0.45 %      0.50 %      0.44 %      1.97 % 

Regd. Office : HDFC Bank Ltd., HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai - 400013.

LOGO

 

Segment information in accordance with the Accounting Standard 17 - Segment Reporting of the operating segments of the Bank is as under:

 

                          

(₹ in lac)

 

  
     Quarter ended     Year ended
31.03.2021		  
   30.06.2021     31.03.2021     30.06.2020  

Particulars

    Unaudited     Audited
(Refer note 4)		     Unaudited     Audited  

1

  

Segment Revenue

         

a)

  

Treasury

      864433       803574       800126       3233767  

b)

  

Retail Banking

      2697467       2761274       2710162       11021021  

c)

  

Wholesale Banking

      1440699       1472812       1418359       5715430  

d)

  

Other Banking Operations

      486344       554367       389683       1993753  

e)

  

Unallocated

      —         3082       —         3082  
 

Total

      5488943       5595109       5318330       21967053  
 

Less: Inter Segment Revenue

      1811796       1793359       1873002       7360741  
    

 

 

    

 

 

    

 

 

    

 

 

  
 

Income from Operations

      3677147       3801750       3445328       14606312  
    

 

 

    

 

 

    

 

 

    

 

 

  

2

  

Segment Results

         

a)

  

Treasury

      270743       243236       250517       903050  

b)

  

Retail Banking

      109036       419239       222005       1057480  

c)

  

Wholesale Banking

      535672       446455       364445       1743754  

d)

  

Other Banking Operations

      152858       11539       97376       620714  

e)

  

Unallocated

      (37690 )      (36562 )      (40568 )      (159099 ) 
    

 

 

    

 

 

    

 

 

    

 

 

  
 

Total Profit Before Tax

      1030619       1083907       893775       4165899  
    

 

 

    

 

 

    

 

 

    

 

 

  

3

  

Segment Assets

         

a)

  

Treasury

      50692647       51964174       46153925       51964174  

b)

  

Retail Banking

      52627989       52199722       46899518       52199722  

c)

  

Wholesale Banking

      64890618       62873157       54979292       62873157  

d)

  

Other Banking Operations

      6270073       6711608       5664473       6711608  

e)

  

Unallocated

      912781       938391       813123       938391  
    

 

 

    

 

 

    

 

 

    

 

 

  
 

Total

      175394108       174687052       154510331       174687052  
    

 

 

    

 

 

    

 

 

    

 

 

  

4

  

Segment Liabilities

         

a)

  

Treasury

      7646558       7627660       7798899       7627660  

b)

  

Retail Banking

      113146545       109621782       96820706       109621782  

c)

  

Wholesale Banking

      30827241       33811531       29166649       33811531  

d)

  

Other Banking Operations

      491736       585765       523185       585765  

e)

  

Unallocated

      2033234       2668233       2405425       2668233  
    

 

 

    

 

 

    

 

 

    

 

 

  
 

Total

      154145314       154314971       136714864       154314971  
    

 

 

    

 

 

    

 

 

    

 

 

  

5

  

Capital Employed

         
 

(Segment Assets - Segment Liabilities)

         

a)

  

Treasury

      43046089       44336514       38355026       44336514  

b)

  

Retail Banking

      (60518556 )      (57422060 )      (49921188 )      (57422060 ) 

c)

  

Wholesale Banking

      34063377       29061626       25812643       29061626  

d)

  

Other Banking Operations

      5778337       6125843       5141288       6125843  

e)

  

Unallocated

      (1120453 )      (1729842 )      (1592302 )      (1729842 ) 
    

 

 

    

 

 

    

 

 

    

 

 

  
 

Total

      21248794       20372081       17795467       20372081  
    

 

 

    

 

 

    

 

 

    

 

 

  

Business Segments have been identified and reported taking into account the target customer profile, the nature of products and services, the differing risks and returns, the organisation structure, the internal business reporting system and the guidelines prescribed by the RBI.

LOGO

 

Notes :    

 

1

Statement of Assets and Liabilities as at June 30, 2021 is given below:

 

                  

(₹ in lac)

 

  

Particulars

    As at
30.06.2021		      As at
30.06.2020		      As at
31.03.2021		  
     Unaudited      Unaudited      Audited  

CAPITAL AND LIABILITIES

         

Capital

      55267        54903        55128  

Reserves and Surplus

      21193527        17740564        20316953  

Deposits

      134582934        118938729        133506022  

Borrowings

      13127502        11638900        13548733  

Other Liabilities and Provisions

      6434878        6137235        7260216  
  

 

 

     

 

 

     

 

 

  

Total

      175394108        154510331        174687052  
  

 

 

     

 

 

     

 

 

  

ASSETS

         

Cash and Balances with Reserve Bank of India

      10462511        9662537        9734073  

Balances with Banks and Money at Call and Short notice

      1535458        1301793        2212966  

Investments

      43613164        37935041        44372829  

Advances

      114765164        100329886        113283663  

Fixed Assets

      500538        446411        490932  

Other Assets

      4517273        4834663        4592589  
  

 

 

     

 

 

     

 

 

  

Total

      175394108        154510331        174687052  
  

 

 

     

 

 

     

 

 

  

 

2

The above financial results have been approved by the Board of Directors at its meeting held on July 17, 2021. The financial results for the quarter ended June 30, 2021 have been subjected to a “Limited Review” by the statutory auditors of the Bank. The report thereon is unmodified.

3

The Bank has applied its significant accounting policies in the preparation of these financial results that are consistent with those followed in the annual financial statements for the year ended March 31, 2021.

4

The figures for the quarter ended March 31, 2021 are the balancing figures between audited figures in respect of the financial year 2020-21 and the published year to date figures upto December 31, 2020.

5

The Board of Directors at its meeting held on June 18, 2021 recommended a dividend of ₹ 6.50 per equity share of face value of ₹ 1 each out of the net profits for the year ended March 31, 2021, subject to approval of the shareholders of the Bank at its ensuing Annual General Meeting. Effect of the proposed dividend has been reckoned in determining capital funds in the computation of capital adequacy ratio as at June 30, 2021.

6

During the quarter ended June 30, 2021, the Bank allotted 1,39,42,616 shares pursuant to the exercise of options under the approved employee stock option schemes.

7

Consequent to the outbreak of the COVID-19 pandemic, the Indian government announced a lockdown in March 2020. Subsequently, the national lockdown was lifted by the government, but regional lockdowns continue to be implemented in areas with a significant number of COVID-19 cases. During the quarter ended June 30, 2021, India experienced a “second wave” of COVID-19, including a significant surge of COVID-19 cases following the discovery of mutant coronavirus variants in the country.

The impact of COVID-19, including changes in customer behaviour and pandemic fears, as well as restrictions on business and individual activities, has led to significant volatility in global and Indian financial markets and a significant decrease in global and local economic activities. The disruptions following the outbreak, have led to a decrease in loan originations, the sale of third party products, the use of credit and debit cards by customers and the efficiency in collection efforts. This may lead to a continued rise in the number of customer defaults and consequently an increase in provisions thereagainst. The extent to which the COVID-19 pandemic will continue to impact the Bank’s results will depend on ongoing as well as future developments, which are highly uncertain, including, among other things, any new information concerning the severity of the COVID-19 pandemic, and any action to contain its spread or mitigate its impact whether government-mandated or elected by us.    

LOGO

 

8

Details of resolution plan implemented under the Resolution Framework for COVID-19-related Stress as per RBI circular dated August 6, 2020 (Resolution Framework 1.0) are given below:

 

 

                          ₹ in crore except number of accounts  

Type of Borrower

    (A) Number of
accounts where
resolution plan has
been implemented
under this window		      (B) Exposure
to accounts mentioned
at (A) before
implementation of the
plan		      (C) Of (B), aggregate
amount of debt that
was converted into
other securities		      (D) Additional funding
sanctioned, if any,
including between
invocation of the plan
and implementation		      (E) Increase in
provisions on
account of the
implementation
of the resolution		  

Personal Loans

      287507        5457.35        —          —          545.74  

Corporate persons

      1510        1735.30        —          —          318.62  

Of which, MSMEs

      64        27.08        —          —          2.71  

Others

      47090        607.92        —          —          60.79  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

      336107        7800.57        —          —          925.15  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

There were 33 borrower accounts having an aggregate exposure of ₹ 10.64 crore to the Bank, where resolution plans had been implemented and now modified under RBI’s Resolution Framework 2.0 dated May 5, 2021.    

9

Other income relates to income (including commission) from non-fund based banking activities, fees, earnings from foreign exchange and derivative transactions, profit and loss (including revaluation) from investments, dividends from subsidiaries and recoveries from accounts previously written off.

10

Figures of the previous periods have been regrouped / reclassified wherever necessary to conform to current period’s classification.

11

₹ 10 lac = ₹ 1 million

₹ 10 million = ₹ 1 crore    

 

Place : Mumbai      Sashidhar Jagdishan
Date : July 17, 2021      Managing Director

LOGO

HDFC BANK LIMITED

CIN : L65920MH1994PLC080618

Sandoz House, Shivsagar Estate, Dr. Annie Besant Road, Worli, Mumbai 400 018.

Website: https://www.hdfcbank.com, Tel.: 022- 6652 1000, Fax: 022- 2496 0739

UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2021

 

                 (₹ in lacs)  
          Quarter ended      Year ended
31.03.2021		  
          30.06.2021      31.03.2021      30.06.2020  

Particulars

    Unaudited      Audited
(Refer note 4)		      Unaudited      Audited  
1   

Interest Earned (a)+(b)+(c)+(d)

      3225376        3260692        3235161        12855240  
  

a) Interest / discount on advances / bills

      2528096        2589859        2597800        10229913  
  

b) Income on investments

      647645        618183        559941        2321162  
  

c) Interest on balances with Reserve Bank of India and other inter bank funds

      32066        33169        64158        241430  
  

d) Others

      17569        19481        13262        62735  
2   

Other Income

      667987        830257        434698        2733288  
3   

Total Income (1)+(2)

      3893363        4090949        3669859        15588528  
4   

Interest Expended

      1421850        1408324        1560849        5924759  
5   

Operating Expenses (i)+(ii)

      870689        980792        740608        3500126  
  

i) Employees cost

      364374        357054        330100        1367667  
  

ii) Other operating expenses

      506315        623738        410508        2132459  
6   

Total Expenditure (4)+(5) (excluding Provisions and Contingencies)

      2292539        2389116        2301457        9424885  
7   

Operating Profit before Provisions and Contingencies (3)-(6)

      1600824        1701833        1368402        6163643  
8   

Provisions (Other than tax) and Contingencies

      536633        575260        434451        1884029  
9   

Exceptional Items

      —          —          —          —    
10   

Profit / (Loss) from ordinary activities before tax (7)-(8)-(9)

      1064191        1126573        933951        4279614  
11   

Tax Expense

      270163        282140        239863        1093937  
12   

Net Profit / (Loss) from Ordinary Activities after tax (10)-(11)

      794028        844433        694088        3185677  
13   

Extraordinary items (net of tax expense)

      —          —          —          —    
14   

Net Profit / (Loss) for the period (12)-(13)

      794028        844433        694088        3185677  
15   

Less: Share of minority shareholders

      1819        1055        1364        2356  
16   

Consolidated Net Profit / (Loss) for the period (14)-(15)

      792209        843378        692724        3183321  
17   

Paid up equity share capital (Face Value of ₹ 1/- each)

      55267        55128        54903        55128  
18   

Reserves excluding revaluation reserves

               20925890  
19   

Analytical Ratios

            
   (i) Percentage of shares held by Government of India      Nil        Nil        Nil        Nil  
   (ii) Earnings per share (EPS) (₹) (Face Value of ₹ 1/- each)            
   (a) Basic EPS before & after extraordinary items (net of tax expense) - not annualized      14.4        15.3        12.6        57.9  
   (b) Diluted EPS before & after extraordinary items (net of tax expense) - not annualized      14.3        15.2        12.6        57.6  

Regd. Office : HDFC Bank Ltd., HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai - 400013.

LOGO

 

Consolidated Segment information in accordance with the Accounting Standard 17 - Segment Reporting of the operating segments of the Bank is as under:

 

                               (₹ in lacs)  
          Quarter ended      Year ended
31.03.2021		  
          30.06.2021      31.03.2021      30.06.2020  

Particulars

    Unaudited      Audited
(Refer note 4)		      Unaudited      Audited  

1

    Segment Revenue            

a)

    Treasury      864433        803574        800126        3233767  

b)

    Retail Banking      2697467        2761274        2710162        11021021  

c)

    Wholesale Banking      1440699        1472812        1418359        5715430  

d)

    Other Banking Operations      702560        843566        614214        2975969  

e)

    Unallocated      —          3082        —          3082  
   Total      5705159        5884308        5542861        22949269  
   Less: Inter Segment Revenue      1811796        1793359        1873002        7360741  
     

 

 

     

 

 

     

 

 

     

 

 

  
   Income from Operations      3893363        4090949        3669859        15588528  
     

 

 

     

 

 

     

 

 

     

 

 

  

2

    Segment Results            

a)

    Treasury      270743        243236        250517        903050  

b)

    Retail Banking      109036        419239        222005        1057480  

c)

    Wholesale Banking      535672        446455        364445        1743754  

d)

    Other Banking Operations      186430        54205        137552        734429  

e)

    Unallocated      (37690 )       (36562 )       (40568 )       (159099 ) 
     

 

 

     

 

 

     

 

 

     

 

 

  
   Total Profit Before Tax and Minority Interest      1064191        1126573        933951        4279614  
     

 

 

     

 

 

     

 

 

     

 

 

  

3

    Segment Assets            

a)

    Treasury      50692647        51964174        46153925        51964174  

b)

    Retail Banking      52627989        52199722        46899518        52199722  

c)

    Wholesale Banking      64890618        62873157        54979292        62873157  

d)

    Other Banking Operations      11406952        11975219        10779377        11975219  

e)

    Unallocated      912781        938391        813123        938391  
     

 

 

     

 

 

     

 

 

     

 

 

  
   Total      180530987        179950663        159625235        179950663  
     

 

 

     

 

 

     

 

 

     

 

 

  

4

    Segment Liabilities            

a)

    Treasury      7646558        7627660        7798899        7627660  

b)

    Retail Banking      113146545        109621782        96820706        109621782  

c)

    Wholesale Banking      30827241        33811531        29166649        33811531  

d)

    Other Banking Operations      4935981        5177164        5014782        5177164  

e)

    Unallocated      2033234        2668232        2405425        2668232  
     

 

 

     

 

 

     

 

 

     

 

 

  
   Total      158589559        158906369        141206461        158906369  
     

 

 

     

 

 

     

 

 

     

 

 

  

5

    Capital Employed            
   (Segment Assets - Segment Liabilities)            

a)

    Treasury      43046089        44336514        38355026        44336514  

b)

    Retail Banking      (60518556 )       (57422060 )       (49921188 )       (57422060 ) 

c)

    Wholesale Banking      34063377        29061626        25812643        29061626  

d)

    Other Banking Operations      6470971        6798055        5764595        6798055  

e)

    Unallocated      (1120453 )       (1729841 )       (1592302 )       (1729841 ) 
     

 

 

     

 

 

     

 

 

     

 

 

  
   Total      21941428        21044294        18418774        21044294  
     

 

 

     

 

 

     

 

 

     

 

 

  

Business Segments have been identified and reported taking into account the target customer profile, the nature of products and services, the differing risks and returns, the organisation structure, the internal business reporting system and the guidelines prescribed by the RBI.

LOGO

 

Notes :

 

1

Consolidated Statement of Assets and Liabilities as at June 30, 2021 is given below:

 

                   (₹ in lacs)  

Particulars

    As at
30.06.2021		      As at
30.06.2020		      As at
31.03.2021		  
     Unaudited      Unaudited      Audited  

CAPITAL AND LIABILITIES

         

Capital

      55267        54903        55128  

Reserves and Surplus

      21821709        18304694        20925890  

Minority Interest

      64452        59177        63276  

Deposits

      134487389        118727997        133372087  

Borrowings

      17259080        15968123        17769675  

Other Liabilities and Provisions

      6843090        6510341        7764607  
  

 

 

     

 

 

     

 

 

  

Total

      180530987        159625235        179950663  
  

 

 

     

 

 

     

 

 

  

ASSETS

         

Cash and balances with Reserve Bank of India

      10465660        9664986        9737035  

Balances with Banks and Money at Call and Short notice

      1764759        1380416        2390216  

Investments

      43064532        37725874        43882311  

Advances

      119787580        105368253        118528352  

Fixed Assets

      518657        466205        509956  

Other Assets

      4929799        5019501        4902793  
  

 

 

     

 

 

     

 

 

  

Total

      180530987        159625235        179950663  
  

 

 

     

 

 

     

 

 

  

 

2

The above financial results represent the consolidated financial results for HDFC Bank Limited and its subsidiaries constituting the ‘Group’. These financial results have been approved by the Board of Directors of the Bank at its meeting held on July 17, 2021. The financial results for the quarter ended June 30, 2021 have been subjected to a “Limited Review” by the statutory auditors of the Bank. The report thereon is unmodified.

3

The Group has applied its significant accounting policies in the preparation of these financial results that are consistent with those followed in the annual financial statements for the year ended March 31, 2021.

4

The figures for the quarter ended March 31, 2021 are the balancing figures between audited figures in respect of the financial year 2020-21 and the published year to date figures upto December 31, 2020.

5

The Board of Directors at its meeting held on June 18, 2021 recommended a dividend of ₹ 6.50 per equity share of face value of ₹ 1 each out of the net profits for the year ended March 31, 2021, subject to approval of the shareholders of the Bank at its ensuing Annual General Meeting. Effect of the proposed dividend has been reckoned in determining capital funds in the computation of capital adequacy ratio as at June 30, 2021.

6

Consequent to the outbreak of the COVID-19 pandemic, the Indian government announced a lockdown in March 2020. Subsequently, the national lockdown was lifted by the government, but regional lockdowns continue to be implemented in areas with a significant number of COVID-19 cases. During the quarter ended June 30, 2021, India experienced a “second wave” of COVID-19, including a significant surge of COVID-19 cases following the discovery of mutant coronavirus variants in the country.

The impact of COVID-19, including changes in customer behaviour and pandemic fears, as well as restrictions on business and individual activities, has led to significant volatility in global and Indian financial markets and a significant decrease in global and local economic activities. The disruptions following the outbreak, have led to a decrease in loan originations, the sale of third party products, the use of credit and debit cards by customers and the efficiency in collection efforts. This may lead to a continued rise in the number of customer defaults and consequently an increase in provisions thereagainst. The extent to which the COVID-19 pandemic will continue to impact the Group’s results will depend on ongoing as well as future developments, which are highly uncertain, including, among other things, any new information concerning the severity of the COVID-19 pandemic, and any action to contain its spread or mitigate its impact whether government-mandated or elected by us.

7

In accordance with the RBI guidelines, banks are required to make consolidated Pillar 3 disclosures including leverage ratio and liquidity coverage ratio under the Basel III Framework. These disclosures are available on the Bank’s website at the following link: http://www.hdfcbank.com/aboutus/basel_disclosures/ default.htm. The disclosures have not been subjected to audit or review by the statutory auditors.

8

Figures of the previous periods have been regrouped / reclassified wherever necessary to conform to current period’s classification.

9

₹ 10 lac = ₹ 1 million

₹ 10 million = ₹ 1 crore

 

Place : Mumbai

Date : July 17, 2021

     

Sashidhar Jagdishan

Managing Director

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HDFC Bank Ltd.

HDFC Bank House,

Senapati Bapat Marg,

Lower Parel,

Mumbai - 400 013.

CIN: L65920MH1994PLC080618

HDFC Bank Limited

FINANCIAL RESULTS (INDIAN GAAP) FOR THE QUARTER ENDED JUNE 30, 2021

The Board of Directors of HDFC Bank Limited approved the Bank’s (Indian GAAP) results for the quarter ended June 30, 2021, at its meeting held in Mumbai on Saturday, July 17, 2021. The accounts have been subjected to a ‘Limited Review’ by the statutory auditors of the Bank.

STANDALONE FINANCIAL RESULTS:

Profit & Loss Account: Quarter ended June 30, 2021

The Bank’s net revenues (net interest income plus other income) increased by 18.0% to ₹ 23,297.5 crore for the quarter ended June 30, 2021 from ₹ 19,740.7 crore for the quarter ended June 30, 2020. Net interest income (interest earned less interest expended) for the quarter ended June 30, 2021 grew to ₹ 17,009.0 crore from ₹ 15,665.4 crore for the quarter ended June 30, 2020, driven by advances growth of 14.4%, and a core net interest margin of 4.1%. The Bank’s continued focus on deposits helped in the maintenance of a healthy liquidity coverage ratio at 126%, well above the regulatory requirement.

During the quarter, the country was hit by a “second wave” of COVID-19, with a significant surge in cases following the discovery of mutant coronavirus strains. While there was an improvement towards the end, business activities remained curtailed for almost two thirds of the quarter. These disruptions led to a decrease in retail loan originations, sale of third party products, card spends and efficiency in collection efforts. The lower business volumes, coupled with higher slippages, resulted in lower revenues, as well as an enhanced level of provisioning.

Other income (non-interest revenue) at ₹ 6,288.5 crore was 27.0% of net revenues for the quarter ended June 30, 2021 and grew by 54.3% over ₹ 4,075.3 crore in the corresponding quarter of the previous year. The four components of other income for the quarter ended June 30, 2021 were fees & commissions of ₹ 3,885.4 crore (₹ 2,230.7 crore in the corresponding quarter of the previous year), foreign exchange & derivatives revenue of ₹ 1,198.7 crore (₹ 436.6 crore in the corresponding quarter of the previous year), gain on sale / revaluation of investments of ₹ 601.0 crore (₹ 1,086.7 crore in the corresponding quarter of the previous year) and miscellaneous income, including recoveries and dividend, of ₹ 603.5 crore (₹ 321.3 crore in the corresponding quarter of the previous year).

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HDFC Bank Ltd.

HDFC Bank House,

Senapati Bapat Marg,

Lower Parel,

Mumbai - 400 013.

CIN: L65920MH1994PLC080618

 

Operating expenses for the quarter ended June 30, 2021 were ₹ 8,160.4 crore, an increase of 18.1% over ₹ 6,911.5 crore during the corresponding quarter of the previous year. The cost-to-income ratio for the quarter was at 35.0%.

Pre-provision Operating Profit (PPOP) at ₹ 15,137.0 crore grew by 18.0% over the corresponding quarter of the previous year.

Provisions and contingencies for the quarter ended June 30, 2021 were ₹ 4,830.8 crore (consisting of specific loan loss provisions of ₹ 4,219.7 crore and general and other provisions of ₹ 611.1 crore) as against ₹ 3,891.5 crore (consisting of specific loan loss provisions of ₹ 2,739.8 crore and general and other provisions of ₹ 1,151.7 crore) for the quarter ended June 30, 2020. Total provisions for the current quarter included contingent provisions of approximately ₹ 600 crore.

As mentioned earlier, the “second wave” of COVID-19 disrupted business activities for close to two thirds of the quarter, leading to a decrease in the efficiency in collection efforts, and a higher level of provisions. The total credit cost ratio was thus at 1.67%, as compared to 1.64% for the quarter ending March 31, 2021 and 1.54% for the quarter ending June 30, 2020.

Profit before tax (PBT) for the quarter ended June 30, 2021 at ₹ 10,306.2 crore grew by 15.3% over corresponding quarter of the previous year. After providing ₹ 2,576.6 crore for taxation, the Bank earned a net profit of ₹ 7,729.6 crore, an increase of 16.1% over the quarter ended June 30, 2020.

Balance Sheet: As of June 30, 2021

Total balance sheet size as of June 30, 2021 was ₹ 1,753,941 crore as against ₹ 1,545,103 crore as of June 30, 2020, a growth of 13.5%.

Total deposits as of June 30, 2021 were ₹ 1,345,829 crore, an increase of 13.2% over June 30, 2020. CASA deposits grew by 28.1% with savings account deposits at ₹ 426,132 crore and current account deposits at ₹ 185,669 crore. Time deposits were at ₹ 734,029 crore, an increase of 3.1% over the corresponding quarter of the previous year, resulting in CASA deposits comprising 45.5% of total deposits as of June 30, 2021.

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HDFC Bank Ltd.

HDFC Bank House,

Senapati Bapat Marg,

Lower Parel,

Mumbai - 400 013.

CIN: L65920MH1994PLC080618

 

Total advances as of June 30, 2021 were ₹ 1,147,652 crore, an increase of 14.4% over June 30, 2020. As per the Bank’s internal business classification, retail loans grew by 9.3%, commercial and rural banking loans grew by 25.1% and other wholesale loans grew by 10.2%. Overseas advances constituted 3% of total advances.

Capital Adequacy:

The Bank’s total Capital Adequacy Ratio (CAR) as per Basel III guidelines was at 19.1% as on June 30, 2021 (18.9% as on June 30, 2020) as against a regulatory requirement of 11.075% which includes Capital Conservation Buffer of 1.875%, and an additional requirement of 0.20% on account of the Bank being identified as a Domestic Systemically Important Bank (D-SIB). Tier 1 CAR was at 17.9% as of June 30, 2021 compared to 17.5% as of June 30, 2020. Common Equity Tier 1 Capital ratio was at 17.2% as of June 30, 2021. Risk-weighted Assets were at ₹ 1,153,559 crore (as against ₹ 1,010,774 crore as at June 30, 2020).

NETWORK

As of June 30, 2021, the Bank’s distribution network was at 5,653 branches and 16,291 ATMs / Cash Deposit & Withdrawal Machines (CDMs) across 2,917 cities / towns as against 5,326 branches and 14,996 ATMs / CDMs across 2,825 cities / towns as of June 30, 2020. 50% of our branches are in semi-urban and rural areas. In addition, we have 15,912 business correspondents, which are primarily manned by Common Service Centres (CSC) as against 6,546 business correspondents as of June 30, 2020. Number of employees were at 123,473 as of June 30, 2021 (as against 115,822 as of June 30, 2020).

ASSET QUALITY

Gross non-performing assets were at 1.47% of gross advances as on June 30, 2021, (1.3% excluding NPAs in the agricultural segment) as against 1.32% as on March 31, 2021 (1.2% excluding NPAs in the agricultural segment) and 1.36% as on June 30, 2020 (1.2% excluding NPAs in the agricultural segment). Net non-performing assets were at 0.48% of net advances as on June 30, 2021.

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HDFC Bank Ltd.

HDFC Bank House,

Senapati Bapat Marg,

Lower Parel,

Mumbai - 400 013.

CIN: L65920MH1994PLC080618

 

The Bank held floating provisions of ₹ 1,451 crore and contingent provisions of ₹ 6,596 crore as on June 30, 2021. Total provisions (comprising specific, floating, contingent and general provisions) were 146% of the gross non-performing loans as on June 30, 2021.

SUBSIDIARIES

The Bank’s subsidiary companies prepare their financial results in accordance with the notified Indian Accounting Standards (‘Ind-AS’). The Bank for the purposes of its statutory compliance prepares and presents its financial results under Indian GAAP. Hence the Bank’s subsidiary companies, for the purposes of the consolidated financial results of the Bank, prepare ‘fit-for-consolidation information’ based on the recognition and measurement principles as per Indian GAAP. The financial numbers of the Bank’s subsidiary companies mentioned herein below are in accordance with Indian GAAP.

HDFC Securities Limited (HSL) is amongst the leading retail broking firms in India. As on June 30, 2021, the Bank held 96.3% stake in HSL.

For the quarter ended June 30, 2021, HSL’s total income grew by 67.3% to ₹ 457.8 crore, as against ₹ 273.7 crore for the quarter ended June 30, 2020. Profit after tax for the quarter grew by 94.9% to ₹ 260.6 crore, as against ₹ 133.7 crore for the quarter ended June 30, 2020.

As on June 30, 2021, HSL had 215 branches across 147 cities / towns in the country.

HDB Financial Services Limited (HDBFSL) is a non-deposit taking non-banking finance company (‘NBFC’) offering wide range of loans and asset finance products to individuals, emerging businesses and micro enterprises. As on June 30, 2021, the Bank held 95.1% stake in HDBFSL.

As mentioned before, with the country being hit by a “second wave” of COVID-19, business activities remained curtailed for almost two thirds of the quarter. These disruptions led to a decrease in loan originations as well as efficiency in collection efforts. This has resulted in muted business volumes, revenues, as well as a higher provisioning.

LOGO    NEWS RELEASE   

HDFC Bank Ltd.

HDFC Bank House,

Senapati Bapat Marg,

Lower Parel,

Mumbai - 400 013.

CIN: L65920MH1994PLC080618

 

The total loan book was ₹ 57,390 crore as on June 30, 2021 as against ₹ 56,613 crore as on June 30, 2020. Liquidity coverage ratio was healthy at 242%, well above the regulatory requirement.

For the quarter ended June 30, 2021, HDBFSL’s net income was at ₹ 1,655.8 crore as against ₹ 1,609.7 crore for the quarter ended June 30, 2020. Pre-provision Operating Profit (PPOP) was ₹ 643.6 crore as against ₹ 759.9 crore for the quarter ended June 30, 2020.

Provisions and contingencies for the quarter were at ₹ 472.4 crore as against ₹ 453.5 crore for the quarter ended June 30, 2020. Profit after tax for the quarter ended June 30, 2021 was ₹ 130.6 crore compared to ₹ 232.7 crore for the quarter ended June 30, 2020.

As on June 30, 2021, Gross NPA based on the approach used for NBFCs was 7.75% as against 2.86% on June 30, 2020 and 3.89% as on March 31, 2021.

Total CAR was at 19.8% with Tier-I CAR at 14.9%. As on June 30, 2021, HDBFSL had 1,321 branches across 957 cities / towns.

CONSOLIDATED FINANCIAL RESULTS

The consolidated net profit for the quarter ended June 30, 2021 was ₹ 7,922 crore, up 14.4%, over the quarter ended June 30, 2020. Consolidated advances grew by 13.7% from ₹ 1,053,683 crore as on June 30, 2020 to ₹ 1,197,876 crore as on June 30, 2021.

Note:

₹ = Indian Rupees

1 crore = 10 million

All figures and ratios are in accordance with Indian GAAP unless otherwise specified.

BSE: 500180

NSE: HDFCBANK

NYSE: HDB

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HDFC Bank Ltd.

HDFC Bank House,

Senapati Bapat Marg,

Lower Parel,

Mumbai - 400 013.

CIN: L65920MH1994PLC080618

 

Certain statements are included in this release which contain words or phrases such as “will,” “aim,” “will likely result,” “believe,” “expect,” “will continue,” “anticipate,” “estimate,” “intend,” “plan,” “contemplate,” “seek to,” “future,” “objective,” “goal,” “project,” “should,” “will pursue” and similar expressions or variations of these expressions, that are “forward-looking statements.” Actual results may differ materially from those suggested by the forward-looking statements due to certain risks or uncertainties associated with our expectations with respect to, but not limited to, our ability to implement our strategy successfully, the market acceptance of and demand for various banking services, future levels of our non-performing loans, our growth and expansion, the adequacy of our allowance for credit and investment losses, technological changes, volatility in investment income, our ability to market new products, cash flow projections, the outcome of any legal, tax or regulatory proceedings in India and in other jurisdictions we are or become a party to, the future impact of new accounting standards, our ability to pay dividends, the impact of changes in banking regulations and other regulatory changes on us in India and other jurisdictions, our ability to roll over our short-term funding sources and our exposure to market and operational risks. By their nature, certain of the market risk disclosures are only estimates and could be materially different from what may actually occur in the future. As a result, actual future gains, losses or impact on net income could materially differ from those that have been estimated. In addition, other factors that could cause actual results to differ materially from those estimated by the forward-looking statements contained in this document include, but are not limited to: general economic and political conditions, instability or uncertainty in India and the other countries which have an impact on our business activities or investments caused by any factor, including terrorist attacks in India, the United States or elsewhere, anti-terrorist or other attacks by the United States, a United States-led coalition or any other country, tensions between India and Pakistan related to the Kashmir region or between India and China, military armament or social unrest in any part of India; the monetary and interest rate policies of the government of India, natural calamities, inflation, deflation, unanticipated turbulence in interest rates, foreign exchange rates, equity prices or other rates or prices; the performance of the financial markets in India and globally, changes in Indian and foreign laws and regulations, including tax, accounting and banking regulations, changes in competition and the pricing environment in India, and regional or general changes in asset valuations.

For more information please log on to: www.hdfcbank.com

For media queries please contact:

Rajiv Banerjee

Vertical Head, Corporate Communication

HDFC Bank Ltd., Mumbai.

Tel: 91 - 22 - 6652 1307 (D) / 6652 1000 (B)

Mobile: +91 9920454102

rajivshiv.banerjee@hdfcbank.com

For investor queries please contact:

Ajit Shetty

HDFC Bank Ltd., Mumbai.

Tel: 91 - 22 - 6652 1054 (D) / 6652 1000 (B)

ajit.shetty@hdfcbank.com