HDFC Bank Limited (HDB) 6-K Current report (foreign)

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 October, 2020

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: October 19, 2020	By IsI Santosh Haldankar
	Name: Santosh Haldankar
	Title: Senior 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 October 19, 2020 addressed to The New York Stock Exchange, 11, Wall Street, New York, NY 10005, United States of America (USA) intimating about Audited Financial Results of the Bank for the quarter and half year ended September 30, 2020

Exhibit I

October 19, 2020

New York Stock Exchange

11, Wall Street,

New York,

NY 10005

USA

Dear Sirs,

Re: Audited Financial Results of the Bank for the quarter and half year ended September 30, 2020

Please find attached herewith the Audited Standalone and Consolidated Financial Results of the Bank for the second quarter and half year ended September 30, 2020 along with segment reporting, Press Release and the report of the Statutory Auditors in this regard. The results were duly approved by the Board of Directors at its meeting held on October 17, 2020.

This is for your information and record.

Thanking you,

Yours faithfully,

For HDFC Bank Limited

Sd/-

Santosh Haldankar

Sr. Vice President (Legal) & Company Secretary

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

AUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED SEPTEMBER 30, 2020

																	(₹ in lac)
	Particulars	Quarter ended									Half year ended						Year ended 31.03.2020
		30.09.2020			30.06.2020			30.09.2019			30.09.2020			30.09.2019
		Audited (Refer note 5)			Unaudited			Audited (Refer note 5)			Audited			Audited			Audited
1	Interest Earned (a)+(b)+(c)+(d)		2997697			3037797			2816628			6035494			5555787			11481265
	a) Interest / discount on advances / bills		2340485			2403737			2251398			4744222			4431867			9178788
	b) Income on investments		561839			559764			509169			1121603			1033948			2063332
	c) Interest on balances with Reserve Bank of India and other inter bank funds		84156			62648			41642			146804			59162			182893
	d) Others		11217			11648			14419			22865			30810			56252
2	Other Income		609245			407531			558872			1016776			1055897			2326082
3	Total Income (1)+(2)		3606942			3445328			3375500			7052270			6611684			13807347
4	Interest Expended		1420058			1471255			1465124			2891313			2874858			5862640
5	Operating Expenses (i)+(ii)		805506			691146			740568			1496652			1452294			3069752
	i) Employees cost		254238			251344			235507			505582			457245			952567
	ii) Other operating expenses		551268			439802			505061			991070			995049			2117185
6	Total Expenditure (4)+(5) (excluding Provisions and Contingencies)		2225564			2162401			2205692			4387965			4327152			8932392
7	Operating Profit before Provisions and Contingencies (3)-(6)		1381378			1282927			1169808			2664305			2284532			4874955
8	Provisions (other than tax) and Contingencies		370350			389152			270068			759502			531434			1214239
9	Exceptional Items		—			—			—			—			—			—
10	Profit / (Loss) from Ordinary Activities before tax (7)-(8)-(9)		1011028			893775			899740			1904803			1753098			3660716
11	Tax Expense		259717			227913			265241			487630			561783			1034984
12	Net Profit / (Loss) from Ordinary Activities after tax (10)-(11)		751311			665862			634499			1417173			1191315			2625732
13	Extraordinary items (net of tax expense)		—			—			—			—			—			—
14	Net Profit / (Loss) for the period (12)-(13)		751311			665862			634499			1417173			1191315			2625732
15	Paid up equity share capital (Face Value of ₹ 1/- each)		55037			54903			54708			55037			54708			54833
16	Reserves excluding revaluation reserves																	17043769
17	Analytical Ratios
	(i) Percentage of shares held by Government of India		Nil			Nil			Nil			Nil			Nil			Nil
	(ii) Capital Adequacy Ratio		19.1	%		18.9	%		17.5	%		19.1	%		17.5	%		18.5	%
	(iii) Earnings per share (EPS) (₹) (Face Value of ₹ 1/- each)
	(a) Basic EPS before & after extraordinary items (net of tax expense) - not annualized		13.7			12.1			11.6			25.8			21.8			48.0
	(b) Diluted EPS before & after extraordinary items (net of tax expense) - not annualized		13.6			12.1			11.5			25.7			21.6			47.7
	(iv) NPA Ratios
	(a) Gross NPAs		1130460			1377346			1250815			1130460			1250815			1264997
	(b) Net NPAs		175608			327996			379095			175608			379095			354236
	(c) % of Gross NPAs to Gross Advances		1.08	%		1.36	%		1.38	%		1.08	%		1.38	%		1.26	%
	(d) % of Net NPAs to Net Advances		0.17	%		0.33	%		0.42	%		0.17	%		0.42	%		0.36	%
	(v) Return on assets (average) - not annualized		0.48	%		0.44	%		0.50	%		0.92	%		0.96	%		2.01	%

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

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									Half year ended						Year ended 31.03.2020
		30.09.2020			30.06.2020			30.09.2019			30.09.2020			30.09.2019
	Particulars	Audited (Refer note 5)			Unaudited			Audited (Refer note 5)			Audited			Audited			Audited
1	Segment Revenue
a)	Treasury		809877			800126			627540			1610003			1256732			2655844
b)	Retail Banking		2768365			2710162			2710078			5478527			5203007			10799994
c)	Wholesale Banking		1391263			1418359			1502943			2809622			3008904			6113445
d)	Other Banking Operations		496402			389683			434503			886085			877468			1903341
e)	Unallocated		—			—			—			—			66			219
	Total		5465907			5318330			5275064			10784237			10346177			21472843
	Less: Inter Segment Revenue		1858965			1873002			1899564			3731967			3734493			7665496
	Income from Operations		3606942			3445328			3375500			7052270			6611684			13807347
2	Segment Results
a)	Treasury		192361			250517			69521			442878			147674			346277
b)	Retail Banking		265518			222005			402364			487523			709078			1294246
c)	Wholesale Banking		345316			364445			300691			709761			632834			1412109
d)	Other Banking Operations		247518			97376			169931			344894			349578			778463
e)	Unallocated		(39685	)		(40568	)		(42767	)		(80253	)		(86066	)		(170379	)
	Total Profit Before Tax		1011028			893775			899740			1904803			1753098			3660716
3	Segment Assets
a)	Treasury		48929119			46153925			34321814			48929119			34321814			45724091
b)	Retail Banking		47695525			46899518			45996296			47695525			45996296			48427074
c)	Wholesale Banking		57446053			54979292			45845204			57446053			45845204			52056701
d)	Other Banking Operations		6053624			5664473			5504158			6053624			5504158			6050057
e)	Unallocated		818482			813123			839726			818482			839726			793204
	Total		160942803			154510331			132507198			160942803			132507198			153051127
4	Segment Liabilities
a)	Treasury		9236909			7798899			4374217			9236909			4374217			10201209
b)	Retail Banking		100454226			96820706			81524711			100454226			81524711			90725810
c)	Wholesale Banking		29861663			29166649			27977539			29861663			27977539			31762887
d)	Other Banking Operations		552824			523185			553999			552824			553999			503243
e)	Unallocated		2225940			2405425			2500439			2225940			2500439			2759376
	Total		142331562			136714864			116930905			142331562			116930905			135952525
5	Capital Employed
	(Segment Assets - Segment Liabilities)
a)	Treasury		39692210			38355026			29947597			39692210			29947597			35522882
b)	Retail Banking		(52758701	)		(49921188	)		(35528415	)		(52758701	)		(35528415	)		(42298736	)
c)	Wholesale Banking		27584390			25812643			17867665			27584390			17867665			20293814
d)	Other Banking Operations		5500800			5141288			4950159			5500800			4950159			5546814
e)	Unallocated		(1407458	)		(1592302	)		(1660713	)		(1407458	)		(1660713	)		(1966172	)
	Total		18611241			17795467			15576293			18611241			15576293			17098602

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.

Notes :

1 Statement of Assets and Liabilities as at September 30, 2020 is given below:

					(₹ in lac)
Particulars	As at 30.09.2020		As at 30.09.2019		As at 31.03.2020
	Audited		Audited		Audited
CAPITAL AND LIABILITIES
Capital		55037		54708		54833
Reserves and Surplus		18556204		15521585		17043769
Deposits		122931039		102161494		114750231
Borrowings		13258005		9223621		14462854
Other Liabilities and Provisions		6142518		5545790		6739440
Total		160942803		132507198		153051127
ASSETS
Cash and Balances with Reserve Bank of India		9945296		5578886		7220512
Balances with Banks and Money at Call and Short notice		857815		1768886		1441360
Investments		41396511		30714795		39182666
Advances		103833513		89698377		99370288
Fixed Assets		455523		411259		443191
Other Assets		4454145		4334995		5393110
Total		160942803		132507198		153051127

2 Statement of Cash flow as at September 30, 2020 is given below:

							(₹ in lac)
	Half year ended						Year ended
	30.09.2020			30.09.2019			31.03.2020
Particulars	Audited			Audited			Audited
Cash flows from / (used in) operating activities:
Profit before income tax		1904803			1753098			3660716
Adjustments for:
Depreciation on fixed assets		62117			61412			119585
(Profit) / Loss on revaluation of investments		116124			(19666	)		70211
Amortisation of premium on held to maturity investments		36453			21580			50141
(Profit) / loss on sale of fixed assets		(22	)		1053			832
Provision / charge for non performing assets		403491			440256			935236
Provision for standard assets and contingencies		361459			102499			305158
Dividend from subsidiaries		(8506	)		(21865	)		(42372	)
		2875919			2338367			5099507
Adjustments for:
(Increase) / decrease in investments		(2179312	)		(1658420	)		(9992161	)
(Increase) / decrease in advances		(4868124	)		(8197513	)		(18364046	)
Increase / (decrease) in deposits		8180810			9847400			22436137
(Increase) / decrease in other assets		1030351			658756			(718012	)
Increase / (decrease) in other liabilities and provisions		(1145992	)		(69328	)		919400
		3893652			2919262			(619175	)
Direct taxes paid (net of refunds)		(583540	)		(641737	)		(1049802	)
Net cash flow from / (used in) operating activities		3310112			2277525			(1668977	)
Cash flows used in investing activities:
Purchase of fixed assets		(68307	)		(66733	)		(154688	)
Proceeds from sale of fixed assets		313			901			1824
Dividend from subsidiaries		8506			21865			42372
Net cash flow used in investing activities		(59488	)		(43967	)		(110492	)
Cash flows from / (used in) financing activities:
Proceeds from issue of share capital, net of issue expenses		105900			113082			184868
Redemption of Tier II capital bonds		(110500	)		—			—
Increase / (decrease) in other borrowings		(1094347	)		(2484893	)		2754341
Dividend paid during the period (including tax on dividend)		—			(654030	)		(654030	)
Net cash flow from / (used in) financing activities		(1098947	)		(3025841	)		2285179
Effect of exchange fluctuation on translation reserve		(10438	)		5292			21399
Net increase / (decrease) in cash and cash equivalents		2141239			(786991	)		527109
Cash and cash equivalents as at April 1st		8661872			8134763			8134763
Cash and cash equivalents as at the period end		10803111			7347772			8661872

3 The above financial results have been approved by the Board of Directors at its meeting held on October 17, 2020. The financial results for the quarter and half year ended September 30, 2020 have been subjected to an audit by the statutory auditors of the Bank. The report thereon is unmodified.

4 The Bank has applied its significant accounting policies in the preparation of these financial results consistent with those followed in the annual financial statements for the year ended March 31, 2020.

5 The figures for the second quarter in each of the financial years are the balancing figures between audited figures in respect of the half year end and the published year to date figures upto the end of the first quarter of the respective financial year.

6 During the quarter and half year ended September 30, 2020, the Bank allotted 1,34,25,596 and 2,04,17,696 equity shares respectively pursuant to the exercise of options under the approved employee stock option schemes.

7 Consequent to the outbreak of COVID-19 pandemic, the Indian government had announced a lockdown in March 2020. Subsequently, the lockdown has been lifted by the government for certain activities in a phased manner outside specified containment zones.

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 activity, which may persist even after the restrictions related to the COVID-19 outbreak are lifted. While there has been some improvement in economic activities during the current quarter, the continued slowdown has 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. The slowdown may lead to a 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 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.

The Bank holds provisions as at September 30, 2020 against the potential impact of COVID-19 based on the information available at this point in time. The provisions held by the Bank are in excess of the RBI prescribed norms.

8 In order to mitigate the burden of debt servicing brought about by disruptions on account of COVID-19 pandemic and to ensure the continuity of viable businesses, RBI through its circulars dated March 27, 2020 and April 17, 2020, permitted banks to grant a moratorium, on the payment of installments and / or interest, falling due between March 1, 2020 and May 31, 2020, to their borrowers classified as standard even if overdue, as on February 29, 2020. This period was extended by RBI till August 31, 2020 through its circular dated May 23, 2020. The Bank accordingly extended the moratorium option to its borrowers in accordance with its Board approved policies. For all such accounts where the moratorium is granted, the asset classification shall remain stand still during the moratorium period (i.e. the number of days past-due shall exclude the moratorium period for the purposes of determining whether an asset is non-performing).

The quantitative disclosures as required by RBI circular dated April 17, 2020 for the half year ended September 30, 2020 are given below:

Particulars	(₹ in crore)
Respective amounts in SMA/overdue categories, where the moratorium/deferment was extended, in terms of paragraph 2 and 3 of the circular (as of February 29, 2020) Term Loan Installments: ₹ 11,697.16 crore Cash Credit / Overdraft: ₹ 4,046.61 crore		15,743.77
Respective amount where asset classification benefit is extended * Term Loan Installments: ₹ 2,898.96 crore Cash Credit / Overdraft: ₹ 1,740.54 crore		4,639.50
Provisions made in terms of para 5 of the circular		620.00
Provisions adjusted against slippages in terms of paragraph 6 of the circular		—
Residual provisions as of September 30, 2020 in terms of paragraph 6 of the circular		620.00

* as of September 30, 2020 in respect of such accounts.

9 The Honourable Supreme Court of India (Hon’ble SC), in a public interest litigation (Gajendra Sharma Vs. Union of India & Anr), vide an interim order dated September 03, 2020 (“Interim Order”), has directed that accounts which were not declared NPA till August 31, 2020 shall not be declared as NPA till further orders. Basis the said interim order, the Bank has not classified any account which was not NPA as of August 31, 2020 as per the RBI IRAC norms, as NPA after August 31, 2020. Further, in light of the Interim Order, even accounts that would have otherwise been classified as NPA post August 31, 2020 have not been and will not be, classified as NPA till such time that the Hon’ble SC rules finally on the matter.

However, if the Bank had classified borrower accounts as NPA after August 31, 2020, the Bank’s proforma Gross NPA ratio and proforma Net NPA ratio would have been 1.37% and 0.35% respectively. Pending disposal of the case, the Bank, as a matter of prudence has, in respect of these accounts made a contingent provision, which is included in ‘Provisions (other than tax) and Contingencies’.

10 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.

11 Other operating expenses include commission paid to sales agents of ₹ 612.38 crore (previous period: ₹ 741.93 crore) and ₹ 988.86 crore (previous period: ₹ 1,461.76 crore) for the quarter and half year ended September 30, 2020 respectively.

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

13 ₹ 10 lac = ₹ 1 million

₹ 10 million = ₹ 1 crore

Place : Mumbai	Aditya Puri
Date : October 17, 2020	Managing Director

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

AUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED SEPTEMBER 30, 2020

												(₹ in lac)
	Particulars	Quarter ended						Half year ended				Year ended 31.03.2020
		30.09.2020		30.06.2020		30.09.2019		30.09.2020		30.09.2019
		Audited (Refer note 5)		Unaudited		Audited (Refer note 5)		Audited		Audited		Audited
1	Interest Earned (a)+(b)+(c)+(d)		3174227		3235161		3001688		6409388		5919333		12218930
	a) Interest / discount on advances / bills		2511976		2597800		2433399		5109776		4789449		9907963
	b) Income on investments		562245		559941		509138		1122186		1034180		2057273
	c) Interest on balances with Reserve Bank of India and other inter bank funds		85302		64158		42505		149460		60824		186877
	d) Others		14704		13262		16646		27966		34880		66817
2	Other Income		669620		434698		611408		1104318		1126208		2487898
3	Total Income (1)+(2)		3843847		3669859		3613096		7513706		7045541		14706828
4	Interest Expended		1503318		1560849		1555844		3064167		3053559		6213743
5	Operating Expenses (i)+(ii)		860746		740608		805233		1601354		1565046		3303605
	i) Employees cost		334885		330100		319479		664985		621224		1292013
	ii) Other operating expenses		525861		410508		485754		936369		943822		2011592
6	Total Expenditure (4)+(5) (excluding Provisions and Contingencies)		2364064		2301457		2361077		4665521		4618605		9517348
7	Operating Profit before Provisions and Contingencies (3)-(6)		1479783		1368402		1252019		2848185		2426936		5189480
8	Provisions (Other than tax) and Contingencies		442013		434451		309120		876464		600554		1369994
9	Exceptional Items		—		—		—		—		—		—
10	Profit / (Loss) from ordinary activities before tax (7)-(8)-(9)		1037770		933951		942899		1971721		1826382		3819486
11	Tax Expense		266633		239863		278019		506496		592422		1089859
12	Net Profit / (Loss) from Ordinary Activities after tax (10)-(11)		771137		694088		664880		1465225		1233960		2729627
13	Extraordinary items (net of tax expense)		—		—		—		—		—		—
14	Net Profit / (Loss) for the period (12)-(13)		771137		694088		664880		1465225		1233960		2729627
15	Less: Share of Profit / (Loss) of minority shareholders		851		1364		1077		2215		2551		4231
16	Consolidated Net Profit / (Loss) for the period (14)-(15)		770286		692724		663803		1463010		1231409		2725396
17	Paid up equity share capital (Face Value of ₹ 1/- each)		55037		54903		54708		55037		54708		54833
18	Reserves excluding revaluation reserves												17581038
19	Analytical Ratios
	(i) Percentage of shares held by Government of India		Nil		Nil		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		14.0		12.6		12.1		26.6		22.5		49.8
	(b) Diluted EPS before & after extraordinary items (net of tax expense) - not annualized		14.0		12.6		12.0		26.5		22.4		49.5

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

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

																	(₹ in lac)
	Particulars	Quarter ended									Half year ended						Year ended 31.03.2020
		30.09.2020			30.06.2020			30.09.2019			30.09.2020			30.09.2019
		Audited (Refer note 5)			Unaudited			Audited (Refer note 5)			Audited			Audited			Audited
1	Segment Revenue
a)	Treasury		809877			800126			627540			1610003			1256732			2655844
b)	Retail Banking		2768365			2710162			2710078			5478527			5203007			10799994
c)	Wholesale Banking		1391263			1418359			1502943			2809622			3008904			6113445
d)	Other Banking Operations		733307			614214			672099			1347521			1311325			2802822
e)	Unallocated		—			—			—			—			66			219
	Total		5702812			5542861			5512660			11245673			10780034			22372324
	Less: Inter Segment Revenue		1858965			1873002			1899564			3731967			3734493			7665496
	Income from Operations		3843847			3669859			3613096			7513706			7045541			14706828
2	Segment Results
a)	Treasury		192361			250517			69521			442878			147674			346277
b)	Retail Banking		265518			222005			402364			487523			709078			1294246
c)	Wholesale Banking		345316			364445			300691			709761			632834			1412109
d)	Other Banking Operations		274260			137552			213090			411812			422862			937233
e)	Unallocated		(39685	)		(40568	)		(42767	)		(80253	)		(86066	)		(170379	)
	Total Profit Before Tax and Minority Interest		1037770			933951			942899			1971721			1826382			3819486
3	Segment Assets
a)	Treasury		48929119			46153925			34321814			48929119			34321814			45724091
b)	Retail Banking		47695525			46899518			45996296			47695525			45996296			48427074
c)	Wholesale Banking		57446053			54979292			45845204			57446053			45845204			52056701
d)	Other Banking Operations		11107044			10779377			10439010			11107044			10439010			11081971
e)	Unallocated		818482			813123			839726			818482			839726			793204
	Total		165996223			159625235			137442050			165996223			137442050			158083041
4	Segment Liabilities
a)	Treasury		9236909			7798899			4374217			9236909			4374217			10201209
b)	Retail Banking		100454226			96820706			81524711			100454226			81524711			90725810
c)	Wholesale Banking		29861663			29166649			27977539			29861663			27977539			31762887
d)	Other Banking Operations		4963113			5014782			4954546			4963113			4954546			4940224
e)	Unallocated		2225940			2405425			2500439			2225940			2500439			2759376
	Total		146741851			141206461			121331452			146741851			121331452			140389506
5	Capital Employed
	(Segment Assets - Segment Liabilities)
a)	Treasury		39692210			38355026			29947597			39692210			29947597			35522882
b)	Retail Banking		(52758701	)		(49921188	)		(35528415	)		(52758701	)		(35528415	)		(42298736	)
c)	Wholesale Banking		27584390			25812643			17867665			27584390			17867665			20293814
d)	Other Banking Operations		6143931			5764595			5484464			6143931			5484464			6141747
e)	Unallocated		(1407458	)		(1592302	)		(1660713	)		(1407458	)		(1660713	)		(1966172	)
	Total		19254372			18418774			16110598			19254372			16110598			17693535

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.

Notes :

1 Consolidated Statement of Assets and Liabilities as at September 30, 2020 is given below:

					(₹ in lac)
Particulars	As at 30.09.2020		As at 30.09.2019		As at 31.03.2020
	Audited		Audited		Audited
CAPITAL AND LIABILITIES
Capital		55037		54708		54833
Reserves and Surplus		19139308		16003637		17581038
Minority Interest		60027		52253		57664
Deposits		122826597		102081657		114620714
Borrowings		17389822		13425949		18683431
Other Liabilities and Provisions		6525432		5823846		7085361
Total		165996223		137442050		158083041
ASSETS
Cash and balances with Reserve Bank of India		9948423		5583264		7221100
Balances with Banks and Money at Call and Short notice		1012935		1826667		1572910
Investments		41019385		30392751		38930495
Advances		108894763		94743996		104367088
Fixed Assets		474918		429827		462685
Other Assets		4645799		4465545		5528763
Total		165996223		137442050		158083041

2 Consolidated Statement of Cash flow as at September 30, 2020 is given below:

							(₹ in lac)
	Half year ended						Year ended
	30.09.2020			30.09.2019			31.03.2020
Particulars	Audited			Audited			Audited
Cash flows from / (used in) operating activities:
Consolidated profit before income tax		1969506			1823831			3815255
Adjustment for:
Depreciation on fixed assets		66313			65287			127677
(Profit) / Loss on revaluation of investments		116124			(19666	)		70211
Amortisation of premium on held to maturity investments		36453			21580			50141
(Profit) / loss on sale of fixed assets		145			1049			819
Provision / charge for non performing assets		487159			512750			1106571
Provision for standard assets and contingencies		401700			103338			305743
		3077400			2508169			5476417
Adjustments for:
(Increase) / decrease in investments		(2054357	)		(1703396	)		(10107010	)
(Increase) / decrease in advances		(5016241	)		(8333481	)		(18550036	)
Increase / (decrease) in deposits		8205883			9831389			22370446
(Increase) / decrease in other assets		971962			620261			(724976	)
Increase / (decrease) in other liabilities and provisions		(1149240	)		(120862	)		935987
		4035407			2802080			(599172	)
Direct taxes paid (net of refunds)		(600147	)		(619171	)		(1087737	)
Net cash flow from / (used in) operating activities		3435260			2182909			(1686909	)
Cash flows used in investing activities:
Purchase of fixed assets		(72474	)		(70093	)		(163587	)
Proceeds from sale of fixed assets		347			938			1895
Net cash flow used in investing activities		(72127	)		(69155	)		(161692	)
Cash flows from / (used in) financing activities:
Increase in minority interest		2363			2073			7485
Proceeds from issue of share capital, net of issue expenses		105900			113082			184868
Proceeds from issue of Tier I and Tier II capital bonds		—			41500			74350
Redemption of Tier II capital bonds		(110,500	)		—			—
Increase / (decrease) in other borrowings		(1183110	)		(2388829	)		2835804
Dividend paid during the period (including tax on dividend)		—			(658705	)		(663059	)
Net cash flow from / (used in) financing activities		(1185347	)		(2890879	)		2439448
Effect of exchange fluctuation on translation reserve		(10438	)		5292			21399
Net increase / (decrease) in cash and cash equivalents		2167348			(771833	)		612246
Cash and cash equivalents as at April 1st		8794010			8181764			8181764
Cash and cash equivalents as at the period end		10961358			7409931			8794010

3 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 October 17, 2020. The financial results for the quarter and half year ended September 30, 2020 have been subjected to an audit by the statutory auditors of the Bank. The report thereon is unmodified.

4 The Group has applied its significant accounting policies in the preparation of these financial results consistent with those followed in the annual financial statements for the year ended March 31, 2020.

5 The figures for the second quarter in each of the financial years are the balancing figures between audited figures in respect of the half year end and the published year to date figures upto the end of the first quarter of the respective financial year.

6 Consequent to the outbreak of COVID-19 pandemic, the Indian government had announced a lockdown in March 2020. Subsequently, the lockdown has been lifted by the government for certain activities in a phased manner outside specified containment zones.

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 activity, which may persist even after the restrictions related to the COVID-19 outbreak are lifted. While there has been some improvement in economic activities during the current quarter, the continued slowdown has 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. The slowdown may lead to a 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 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.

The Group holds provisions as at September 30, 2020 against the potential impact of COVID-19 based on the information available at this point in time.

7 In order to mitigate the burden of debt servicing brought about by disruptions on account of COVID-19 pandemic and to ensure the continuity of viable businesses, RBI through its circulars dated March 27, 2020 and April 17, 2020, permitted banks and non-banking financial companies to grant a moratorium, on the payment of installments and / or interest, falling due between March 1, 2020 and May 31, 2020, to their borrowers classified as standard even if overdue, as on February 29, 2020. This period was extended by RBI till August 31, 2020 through its circular dated May 23, 2020. The Group accordingly extended the moratorium option to its borrowers in accordance with the respective Board approved policies. For all such accounts where the moratorium is granted, the asset classification shall remain stand still during the moratorium period (i.e. the number of days past-due shall exclude the moratorium period for the purposes of determining whether an asset is non-performing). The Group holds provisions thereagainst as per RBI prescribed norms.

8 The Honourable Supreme Court of India (Hon’ble SC), in a public interest litigation (Gajendra Sharma Vs. Union of India & Anr), vide an interim order dated September 03, 2020 (“Interim Order”), has directed that accounts which were not declared NPA till August 31, 2020 shall not be declared as NPA till further orders. Basis the said interim order, the Group has not classified any account which was not NPA as of August 31, 2020 as per the RBI IRAC norms, as NPA after August 31, 2020. Further, in light of the Interim Order, even accounts that would have otherwise been classified as NPA post August 31, 2020 have not been and will not be, classified as NPA till such time that the Hon’ble SC rules finally on the matter.

Pending disposal of the case, the Group, as a matter of prudence has, in respect of these accounts made a contingent provision, which is included in ‘Provisions (other than tax) and Contingencies’.

9 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.

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	Aditya Puri
Date : October 17, 2020	Managing Director

        NEWS RELEASE 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 AND HALF YEAR ENDED SEPTEMBER 30, 2020

The Board of Directors of HDFC Bank Limited approved the Bank’s (Indian GAAP) results for the quarter and half year ended September 30, 2020, at their meeting held in Mumbai on Saturday, October 17, 2020. The accounts have been subjected to an audit by the statutory auditors of the Bank.

STANDALONE FINANCIAL RESULTS:

Profit & Loss Account: Quarter ended September 30, 2020

The Bank’s net revenues (net interest income plus other income) grew to ₹ 21,868.8 crore for the quarter ended September 30, 2020 from ₹ 19,103.8 for the quarter ended September 30, 2019. Net interest income (interest earned less interest expended) for the quarter ended September 30, 2020 grew by 16.7% to ₹ 15,776.4 crore from ₹ 13,515.0 crore for the quarter ended September 30, 2019, driven by asset growth of 21.5%, and a core net interest margin for the quarter of 4.1%. The Bank’s continued focus on deposits helped in the maintenance of a healthy liquidity coverage ratio at 153%, well above the regulatory requirement.

Other income (non-interest revenue) at ₹ 6,092.5 crore was 27.9% of the net revenues for the quarter ended September 30, 2020 as against ₹ 5,588.7 crore in the corresponding quarter ended September 30, 2019. The four components of other income for the quarter ended September 30, 2020 were fees & commissions of ₹ 3,940.3 crore (₹ 4,054.5 crore in the corresponding quarter of the previous year), foreign exchange & derivatives revenue of ₹ 560.4 crore (₹ 551.7 crore for the corresponding quarter of the previous year), gain on sale / revaluation of investments of ₹ 1,016.2 crore (gain of ₹ 480.7 crore in the corresponding quarter of the previous year) and miscellaneous income, including recoveries, of ₹ 575.6 crore (₹ 502.0 crore for the corresponding quarter of the previous year).

        NEWS RELEASE HDFC Bank Ltd. HDFC Bank House, Senapati Bapat Marg, Lower Parel, Mumbai - 400 013. CIN: L65920MH1994PLC080618

While the previous quarter largely bore the brunt of the COVID-19 pandemic, some of the softness continued into the current quarter leading to lower retail loan origination, use of debit and credit cards by customers, efficiency in collection efforts and waivers of certain fees. As a result, fees/other income were lower by approximately ₹ 800 crore. However, the loan and card momentum has improved over the previous quarter, thereby reducing the gap to less than half.

Operating expenses for the quarter ended September 30, 2020 were ₹ 8,055.1 crore, an increase of 8.8% over ₹ 7,405.7 crore during the corresponding quarter of the previous year. The cost-to-income ratio for the quarter was at 36.8% as against 38.8% for the corresponding quarter ended September 30, 2019. Growth in operating expenses was relatively moderate, as a result of lower loan origination and sales volumes.

Pre-provision Operating Profit (PPOP) at ₹ 13,813.8 crore grew by 18.1% over the corresponding quarter of the previous year.

Provisions and contingencies for the quarter ended September 30, 2020 were ₹ 3,703.5 crore (consisting of specific loan loss provisions of ₹ 1,240.6 crore and general and other provisions of ₹ 2,462.9 crore) as against ₹ 2,700.7 crore (consisting of specific loan loss provisions of ₹ 2,041.3 crore and general and other provisions of ₹ 659.3 crore) for the quarter ended September 30, 2019. Total provisions for the current quarter includes contingent provisions of approximately ₹ 2,300 crore for proforma NPA as described in the asset quality section below as well as additional contingent provisions to make the balance sheet more resilient.

The reported Specific Credit Cost ratio was 0.47%. This Core Credit Cost ratio on a proforma basis (refer Asset Quality section) was 0.91%, as compared to 1.08% in the quarter ending June 30, 2020 and 0.90% in the quarter ending September 30, 2019.

Profit before tax (PBT) for the quarter ended September 30, 2020 was at ₹ 10,110.3 crore. After providing ₹ 2,597.2 crore for taxation, the Bank earned a net profit of ₹ 7,513.1 crore, an increase of 18.4% over the quarter ended September 30, 2019.

Balance Sheet: As of September 30, 2020

Total balance sheet size as of September 30, 2020 was ₹ 1,609,428 crore as against ₹ 1,325,072 crore as of September 30, 2019, a growth of 21.5%.

        NEWS RELEASE HDFC Bank Ltd. HDFC Bank House, Senapati Bapat Marg, Lower Parel, Mumbai - 400 013. CIN: L65920MH1994PLC080618

Total deposits as of September 30, 2020 were ₹ 1,229,310 crore, an increase of 20.3% over September 30, 2019. CASA deposits grew by 27.5% with savings account deposits at ₹ 348,432 crore and current account deposits at ₹ 163,019 crore. Time deposits were at ₹ 717,859 crore, an increase of 15.7% over the previous year, resulting in CASA deposits comprising 41.6% of total deposits as of September 30, 2020. As mentioned above, the Bank’s continued focus on deposits helped in the maintenance of a healthy liquidity coverage ratio at 153%, well above the regulatory requirement.

Total advances as of September 30, 2020 were ₹ 1,038,335 crore, an increase of 15.8% over September 30, 2019. Domestic advances grew by 15.4% over September 30, 2019. As per regulatory [Basel 2] segment classification, domestic retail loans grew by 5.3% and domestic wholesale loans grew by 26.5%. The domestic loan mix as per Basel 2 classification between retail:wholesale was 48:52. Overseas advances constituted 3% of total advances.

Half Year ended September 30, 2020

For the half year ended September 30, 2020, the Bank earned a total income of ₹ 70,522.7 crore as against ₹ 66,116.8 crore in the corresponding period of the previous year. Net revenues (net interest income plus other income) for the half year ended September 30, 2020 were ₹ 41,609.6 crore, as against ₹ 37,368.3 crore for the half year ended September 30, 2019. Net profit for the half year ended September 30, 2020 was ₹ 14,171.7 crore, up by 19.0% over the corresponding half year ended September 30, 2019.

Capital Adequacy:

The Bank’s total Capital Adequacy Ratio (CAR) as per Basel III guidelines was at 19.1% as on September 30, 2020 (17.5% as on September 30, 2019) 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 17.7% as of September 30, 2020 compared to 16.2% as of September 30, 2019. Common Equity Tier 1 Capital ratio was at 17.0% as of September 30, 2020. Risk-weighted Assets were at ₹ 1,037,483 crore (as against ₹ 963,321 crore as at September 30, 2019).

        NEWS RELEASE HDFC Bank Ltd. HDFC Bank House, Senapati Bapat Marg, Lower Parel, Mumbai - 400 013. CIN: L65920MH1994PLC080618

NETWORK

As of September 30, 2020, the Bank’s distribution network was at 5,430 branches and 15,292 ATMs / Cash Deposit & Withdrawal Machines (CDMs) across 2,848 cities / towns as against 5,133 branches and 13,952 ATMs / CDMs across 2,768 cities / towns as of September 30, 2019. 50% of our branches are in semi-urban and rural areas. In addition, we have 12,141 business correspondents, of which 99% are manned by Common Service Centres (CSC) as against 181 business correspondents as of September 30, 2019. Number of employees were at 117,082 as of September 30, 2020 (as against 111,208 as of September 30, 2019).

ASSET QUALITY

The Gross and Net non-performing assets were at 1.08% of gross advances and 0.17% of net advances as on September 30, 2020 respectively.

The Honourable Supreme Court of India, in a public interest litigation (Gajendra Sharma Vs Union of India & Anr), vide an interim order dated September 03, 2020, directed that accounts which were not declared NPA till August 31, 2020 shall not be declared as such until further orders. Pursuant to the said interim order, accounts that would have otherwise been classified as NPA have not been and will not be, classified as NPA till such time that the Honourable Supreme Court rules finally on the matter.

However, if the Bank had classified borrower accounts as NPA after August 31, 2020 and also adopted an early recognition of NPA using its analytical models (proforma approach), the proforma Gross NPA ratio would have been 1.37% as on September 30, 2020, as against 1.36% as on June 30, 2020 and 1.38% as on September 30, 2019.The Bank’s proforma Net NPA ratio would have been 0.35%. Pending disposal of the case, the Bank, as a matter of prudence, has made a contingent provision in respect of these accounts.

The Bank also continues to hold provisions as on September 30, 2020 against the potential impact of COVID-19 based on the information available at this point in time and the same are in excess of the RBI prescribed norms.

The Bank held floating provisions of ₹ 1,451 crore and contingent provisions of ₹ 6,304 crore as on September 30, 2020. Total provisions (comprising specific, floating, contingent and general provisions) were 195% of the reported Gross NPAs or 154% of proforma Gross NPAs as on September 30, 2020.

        NEWS RELEASE HDFC Bank Ltd. HDFC Bank House, Senapati Bapat Marg, Lower Parel, Mumbai - 400 013. CIN: L65920MH1994PLC080618

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 September 30, 2020, the Bank held 96.5% stake in HSL.

For the quarter ended September 30, 2020, HSL’s total income was ₹ 341.4 crore as against ₹ 189.3 crore for the quarter ended September 30, 2019. Profit after tax for the quarter was ₹ 167.1 crore, as against ₹ 91.0 crore for the quarter ended September 30, 2019.

As on September 30, 2020, HSL had 235 branches across 161 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 September 30, 2020, the Bank held 95.3% stake in HDBFSL.

The total loan book grew by 2.3% to ₹ 57,014 crore as on September 30, 2020 as against ₹ 55,759 crore as of September 30, 2019. During the quarter HDBFSL increased its liquidity buffers, with Liquidity Coverage Ratio now at a healthy 214%, well above the regulatory requirement.

For the quarter ended September 30, 2020, HDBFSL’s net interest income was at ₹ 924.2 crore as against ₹ 971.1 crore in the previous quarter. Profit after tax for the quarter ended September 30, 2020 was ₹ 29.9 crore compared to ₹ 213.0 crore in the previous quarter.

As on September 30, 2020, Gross and Net NPA were 4.3% of gross advances and 3.1% of net advances respectively.

        NEWS RELEASE HDFC Bank Ltd. HDFC Bank House, Senapati Bapat Marg, Lower Parel, Mumbai - 400 013. CIN: L65920MH1994PLC080618

Total CAR was at 19.6% with Tier-I CAR at 14.6%. As on September 30, 2020, HDBFSL had 1,342 branches across 986 cities / towns.

CONSOLIDATED FINANCIAL RESULTS

The consolidated net profit for the quarter ended September 30, 2020 was ₹ 7,703 crore, up 16.0%, over the quarter ended September 30, 2019. Consolidated advances grew by 14.9% from ₹ 947,440 crore as on September 30, 2019 to ₹ 1,088,948 crore as on September 30, 2020.

The consolidated net profit for the half year ended September 30, 2020 was ₹ 14,630 crore, up 18.8%, over the half year ended September 30, 2019.

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

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.

        NEWS RELEASE HDFC Bank Ltd. HDFC Bank House, Senapati Bapat Marg, Lower Parel, Mumbai - 400 013. CIN: L65920MH1994PLC080618

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For media queries please contact:

Neeraj Jha

Head, Corporate Communication

HDFC Bank Ltd., Mumbai.

Tel: 91 - 22 - 6652 1308 (D) / 6652 1000 (B)

Fax: 91 - 22 - 2490 3168

Mobile: +91 93236 20828

neeraj.jha@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