Goodwill and Intangible assets

12 Months Ended

Mar. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

13. Goodwill and Intangible assets

Goodwill arising from a business combination is not amortized but is tested for impairment. The Bank tests goodwill of each separate reporting unit by initially qualitatively assessing whether events and circumstances indicate that it is more likely than not that a reporting unit’s fair value is less than its carrying amount. If such assessment indicates fair value is not less than the carrying value, the reporting unit is deemed not to be impaired and no further analysis is required. If it is more likely than not that fair value of the reporting unit is below its carrying value, a quantitative test is then performed. We examined

the

goodwill that had arisen on acquisition of erstwhile Centurion Bank of Punjab (“eCBoP”) and eHDFC for possible impairment as of March 31, 2024. There were no changes in the carrying amount of goodwill of Rs. 74,937.9 million for the fiscal year ended March 31, 2023. During the fiscal year ended March 31, 2024, the carrying amount of goodwill increased by Rs. 1,628,148.5 million (US$ 19,536.2 million) as a result of the merger of eHDFC Group with HDFC Bank. On March 19, 2024, following the sale of HDFC Credila Financial Services Limited, goodwill amounting to Rs. 73,576.1 million (US$ 882.9 million) was derecognized. No impairment charges were recorded against goodwill during the period. Accordingly, the carrying amount of goodwill was Rs.

1,629,510.3 million (US$ 19,552.6

million) as on March 31, 2024.”

The following table represents the changes in the carrying amount of goodwill reported in the consolidated balance sheets for the year ended March 31, 2023 and March 31, 2024:


	As of March 31, 2024
	Retail Banking		Wholesale Banking		Treasury Services		Insurance Services		Others		Total		Total
			(In millions)
Balance as at March 31, 2022		Rs.74,937.9		Rs.—		Rs.—		Rs. —		Rs. —		Rs.74,937.9	US$	899.3
Balance as at March 31, 2023		74,937.9		—		—		—		—		74,937.9		899.3
Goodwill on acquisition during the year		368,079.6		71,617.3		—		959,080.0		229,371.6		1,628,148.5		19,536.2
Less: Goodwill Derecognised on disposal during the year		—		—		—		—		73,576.1		.73,576.1		882.9

Balance at March 31, 2024		Rs.443,017.5		Rs.71,617.3		Rs.—		Rs.959,080.0		Rs.155,795.5		Rs.1,629,510.3	US$	19,552.6

Intangible assets, net, consists of the following:


	As of,
	July 1, 2023		March 31, 2024		March 31, 2024
	(Rs. in millions)
Brand		Rs. 750,758.2		Rs. 742,230.7	US$	8,906.1
Investment management contract		369,785.6		369,785.6		4,437.1
Value of business acquired		221,738.5		221,738.5		2,660.6
Distribution network		59,543.2		50,570.8		606.9
Customer Relationship		29,874.9		29,874.9		358.4
Transferable Development Rights		3,117.7		3,117.7		37.4
Intangible Assets		Rs. 1,434,818.1		Rs. 1,417,318.2	US$	17,006.5
Less: Accumulated amortization		—		21,201.0		254.4

Total intangible assets, net		Rs. 1,434,818.1		Rs. 1,396,117.2	US$	16,752.1

(*)

All the above intangible assets excluding Brand and Investment Management Contract are subject to amortization. Further, intangible assets include Brand amounting to Rs. 8,527.5 million (US $ 102.3

million

) and Distribution network amounting to Rs. 8,972.4 million (US $ 107.6

million) pertaining to HDFC Credila Financial Services Limited which is classified as held for sale as on date of acquisition. These have been derecognized following the divestment of stake on March 19, 2024.

Amortization expense related to intangible assets was Rs. 21,201.0 million for the year ended March 31, 2024. These amounts are included in Non-Interest Expense - Amortization of intangible assets in the consolidated financial statements.

At March 31, 2024, the expected future amortization of finite-lived intangible assets is as follows:


	As of March 31, 2024
	(in millions)
Fiscal year ending March 31:
2025		Rs. 21,827.1	US$	261.9
2026		19,843.8		238.1
2027		18,138.2		217.6
2028		16,298.0		195.6
2029		14,661.8		175.9
Thereafter		193,332.0		2,319.8