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Related party transactions
 12 Months Ended
Mar. 31, 2023
Related party transactions
27. Related party transactions
The Bank’s principal related parties consist of HDFC Limited, its principal owner, subsidiaries of HDFC Limited and affiliates of the Bank. Transactions disclosed under “others” primarily consist of transactions with subsidiaries of HDFC Limited and affiliates of the Bank. The Bank enters into transactions with its related parties, such as providing banking services, sharing costs and service providers, purchasing services, making joint investments, and borrowing from related parties and subletting premises. The Bank is prohibited from making loans to companies with which it has directors in common. The Bank, being an authorized dealer, deals in foreign exchange and derivative transactions with certain parties which include the principal owner and related companies. The foreign exchange and derivative transactions are undertaken in line with the RBI guidelines. The Bank’s related party balances and transactions are in the normal course of business and are summarized as follows:
Balances payable to related parties are as follows:
 
                                                                                                                 
    
As of March 31,
  
    
2022
     
2023
  
    
Principal

owner
     
Others
     
Total
     
Principal
owner
     
Others
     
Total
     
Total
  
                                                  
    
(In millions)
  
Balances in non-interest-bearing deposits
   
Rs.  
20,695.1
 
   
Rs.  
6,273.0
 
   
Rs.  
26,968.1
 
   
Rs.  
25,637.8
 
   
Rs.  
8,715.1
 
   
Rs.  
34,352.9
 
   
US$  
418.0
 
Balances in interest-bearing deposits
   
 
6,719.8
 
   
 
875.0
 
   
 
7,594.8
 
   
 
1,755.1
 
   
 
1,611.9
 
   
 
3,367.0
 
   
 
41.0
 
Accrued expenses and other liabilities
   
 
641.4
 
   
 
—  
 
   
 
641.4
 
   
 
773.5
 
   
 
—  
 
   
 
773.5
 
   
 
9.4
 
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total
   
Rs.  
28,056.3
 
   
Rs.  
7,148.0
 
   
Rs.  
35,204.3
 
   
Rs.  
28,166.4
 
   
Rs.  
10,327.0
 
   
Rs.  
38,493.4
 
   
US$  
468.4
 
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
 
 
Balances receivable from related parties are as follows:
 
                                                                                                                                      
    
As of March 31,
  
    
2022
     
2023
  
    
Principal
owner
     
Others
     
Total
     
Principal
owner
     
Others
     
Total
     
Total
  
                                                  
    
(In millions)
  
Loans
   
Rs.  
—  
 
   
Rs.  
7.4
 
   
Rs.  
7.4
 
   
Rs.
 —  
 
   
Rs.  
7.5
 
   
Rs.  
7.5
 
   
US$  
0.1
 
Other assets
   
 
656.5
 
   
 
1,498.7
 
   
 
2,155.2
 
   
 
748.0
 
   
 
2,167.3
 
   
 
2,915.3
 
   
 
35.5
 
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total
   
Rs.  
656.5
 
   
Rs.  
1,506.1
 
   
Rs.  
2,162.6
 
   
Rs.  
748.0
 
   
Rs.  
2,174.8
 
   
Rs.  
2,922.8
 
   
US$  
35.6
 
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Purchase of property and equipment from related parties for the
fiscal
years ended March 31, 2022 and 2023 were nil. Purchase and sale of investments from Others for the
fiscal
year ended March 31, 2023 were Rs. 256.8 million (previous year Rs. 2,006.2 million) and Rs. 20,447.7 million (previous year Rs. 28,877.9 million), respectively. Investments of Others in the Bank’s subordinated debt for the
fiscal
year ended March 31, 2023 were Rs. 7,850.0 million (previous year Rs. 3,700.0 million).
Included in the determination of net income are the following significant transactions with related parties:
 
                                                                                                                                                                 
   
Fiscal year ended March 31,
  
   
2021
    
2022
    
2023
  
   
Principal
owner
    
Others
    
Total
    
Principal
owner
    
Others
    
Total
    
Principal
owner
    
Others
    
Total
    
Total
  
                                                             
   
(In millions)
  
Non-interest revenue-Fees
and commissions
  
Rs.  
3,246.5
 
  
Rs.  
19,801.6
 
  
Rs.  
23,048.1
 
  
Rs.  
4,639.3
 
  
Rs.  
22,939.5
 
  
Rs.  
27578.8
 
  
Rs.  
5,888.2
 
  
Rs.  
26,766.6
 
  
Rs.  
32,654.8
 
  
US$  
397.3
 
Interest and Dividend revenue
  
 
—  
 
  
 
552.5
 
  
 
552.5
 
  
 
—  
 
  
 
0.1
 
  
 
0.1
 
  
 
—  
 
  
 
0.1
 
  
 
0.1
 
  
 
—
 
Interest expense-Deposits
  
 
(108.0
)
  
 
(171.3
)
  
 
(279.3
)
  
 
(204.3
)
  
 
(82.2
)
  
 
(286.5
)
  
 
(95.3
)
  
 
(606.1
)
  
 
(701.4
)
  
 
(8.5
)
Non-interest expense-Administrative and other
  
 
(5,874.4
)
  
 
(2,856.3
)
  
 
(8,730.7
)
  
 
(7,182.4
)
  
 
(4,558.9
)
  
 
(11,741.3
)
  
 
(8,631.1
)
  
 
(5,524.8
)
  
 
(14,155.9
)
  
 
(172.2
)
Non-interest expense-Premises and equipment
  
 
(24.3
)
  
 
(5.2
)
  
 
(29.5
)
  
 
(19.2
)
  
 
—  
 
  
 
(19.2
)
  
 
(15.6
)
  
 
—  
 
  
 
(15.6
)
  
 
(0.2
)
Other transactions with the Bank’s principal owner are as follows:
During the
fiscal
years ended March 31, 2022 and March 31, 2023, the Bank purchased loans from the principal owner aggregating Rs. 282,052.4 million and Rs. 369,101.3 million, respectively. Dividends paid to the principal owner during the
fiscal
years ended March 31, 2022 and March 31, 2023 were Rs. 5,620.0 and Rs. 13,401.5 million, respectively. The Bank also enters into foreign exchange and derivative transactions with its principal owner. The notional principal amount and the mark-to-market gains in respect of foreign exchange and derivative contracts outstanding as of March 31, 2023 was Rs. 94,451.2 million (previous year Rs. 111,787.1 million) and Rs. 2,081.2 million (previous year Rs. 1,101.1 million), respectively. During the
fiscal
year ended March 31, 2023, the Bank issued Guarantees on behalf of its Principal owner and Others for Rs. 3.5 million (previous year Rs. 3.9 million) and for Rs.  5.1 million (previous year Rs. 28.0 million), respectively.
For contributions made to provident funds and pension funds set up by the Bank, see note 22—Retirement benefits.