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 January, 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: January 18, 2021 | By IsI 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 January 16, 2021 addressed to The New York Stock Exchange, 11, Wall Street, New York, NY 10005, United States of America (USA) intimating about Unaudited Financial Results of the Bank for the quarter and nine months ended December 31, 2020.
Exhibit I
January 16, 2021
New York Stock Exchange
11, Wall Street,
New York,
NY 10005, USA
Dear Sir / Madam,
Re: Unaudited Financial Results of the Bank for the quarter and nine months ended December 31, 2020
We enclose herewith the standalone and consolidated financial results of the Bank for the third quarter (unaudited) and nine months (unaudited) ended December 31, 2020, 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 today.
This is for your information and appropriate dissemination.
Thanking you,
Yours faithfully,
For HDFC Bank Limited
Sd/-
Santosh Haldankar
Senior Vice President - Legal & Company Secretary
 | 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 NINE MONTHS ENDED DECEMBER 31, 2020
The Board of Directors of HDFC Bank Limited approved the Bank’s (Indian GAAP) results for the quarter and nine months ended December 31, 2020, at their meeting held in Mumbai on Saturday, January 16, 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 December 31, 2020
The Bank’s net revenues (net interest income plus other income) grew to ₹ 23,760.8 crore for the quarter ended December 31, 2020 from ₹ 20,842.2 crore for the quarter ended December 31, 2019. Net interest income (interest earned less interest expended) for the quarter ended December 31, 2020 grew by 15.1% to ₹ 16,317.6 crore from ₹ 14,172.9 crore for the quarter ended December 31, 2019, driven by advances growth of 15.6%, and a core net interest margin for the quarter of 4.2%. The Bank’s persistent focus on deposits helped in the maintenance of a healthy liquidity coverage ratio at 146%, well above the regulatory requirement.
Other income (non-interest revenue) was ₹ 7,443.2 crore at 31.3% of the net revenues for the quarter ended December 31, 2020 as against ₹ 6,669.3 crore in the corresponding quarter ended December 31, 2019. The four components of other income for the quarter ended December 31, 2020 were fees & commissions of ₹ 4,974.9 crore (₹ 4,526.8 crore in the corresponding quarter of the previous year), foreign exchange & derivatives revenue of ₹ 562.2 crore (₹ 525.6 crore for the corresponding quarter of the previous year), gain on sale / revaluation of investments of ₹ 1,109.0 crore (gain of ₹ 676.5 crore in the corresponding quarter of the previous year) and miscellaneous income, including recoveries, of ₹ 797.1 crore (₹ 940.4 crore for the corresponding quarter of the previous year).
Operating expenses for the quarter ended December 31, 2020 were ₹ 8,574.8 crore, an increase of 8.6% over ₹ 7,896.8 crore during the corresponding quarter of the previous year. The cost-to-income ratio for the quarter was at 36.1% as against 37.9% for the corresponding quarter ended December 31, 2019.
| NEWS RELEASE | HDFC Bank Ltd. HDFC Bank House, Senapati Bapat Marg, Lower Parel, Mumbai - 400 013. CIN: L65920MH1994PLC080618 |
Pre-provision Operating Profit (PPOP) at ₹ 15,186.0 crore grew by 17.3% over the corresponding quarter of the previous year.
Provisions and contingencies for the quarter ended December 31, 2020 were ₹ 3,414.1 crore (consisting of specific loan loss provisions of ₹ 691.2 crore and general and other provisions of ₹ 2,722.9 crore) as against ₹ 3,043.6 crore (consisting of specific loan loss provisions of ₹ 2,883.6 crore and general and other provisions of ₹ 159.9 crore) for the quarter ended December 31, 2019. Total provisions for the current quarter include contingent provisions of approximately ₹ 2,400 crore for proforma NPA as described in the asset quality section below.
The total credit cost ratio was at 1.25%, as compared to 1.41% in the quarter ending September 30, 2020 and 1.29% in the quarter ending December 31, 2019.
Profit before tax (PBT) for the quarter ended December 31, 2020 at ₹ 11,771.9 crore grew by 18.9% over corresponding quarter of the previous year. After providing ₹ 3,013.6 crore for taxation, the Bank earned a net profit of ₹ 8,758.3 crore, an increase of 18.1% over the quarter ended December 31, 2019.
Balance Sheet: As of December 31, 2020
Total balance sheet size as of December 31, 2020 was ₹ 1,654,228 crore as against ₹ 1,395,336 crore as of December 31, 2019, a growth of 18.6%.
Total deposits as of December 31, 2020 were ₹ 1,271,124 crore, an increase of 19.1% over December 31, 2019. CASA deposits grew by 29.6% with savings account deposits at ₹ 374,639 crore and current account deposits at ₹ 172,108 crore. Time deposits were at ₹ 724,377 crore, an increase of 12.2% over the corresponding quarter of the previous year, resulting in CASA deposits comprising 43.0% of total deposits as of December 31, 2020.
Total advances as of December 31, 2020 were ₹ 1,082,324 crore, an increase of 15.6% over December 31, 2019. Domestic advances grew by 14.9% over December 31, 2019. As per regulatory [Basel 2] segment classification, domestic retail loans grew by 5.2% and domestic wholesale loans grew by 25.5%. The domestic loan mix as per Basel 2 classification between retail:wholesale was 48:52. Overseas advances constituted 3% of total advances.
| NEWS RELEASE | HDFC Bank Ltd. HDFC Bank House, Senapati Bapat Marg, Lower Parel, Mumbai - 400 013. CIN: L65920MH1994PLC080618 |
Nine Months ended December 31, 2020
For the nine months ended December 31, 2020, the Bank earned a total income of ₹ 108,045.6 crore as against ₹ 102,155.8 crore in the corresponding period of the previous year. Net revenues (net interest income plus other income) for the nine months ended December 31, 2020 were ₹ 65,370.4 crore, as against ₹ 58,210.4 crore for the nine months ended December 31, 2019. Net profit for the nine months ended December 31, 2020 was ₹ 22,930.0 crore, up 18.6% over the corresponding nine months ended December 31, 2019.
Capital Adequacy:
The Bank’s total Capital Adequacy Ratio (CAR) as per Basel III guidelines was at 18.9% as on December 31, 2020 (18.5% as on December 31, 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 17.6% as of December 31, 2020 compared to 17.1% as of December 31, 2019. Common Equity Tier 1 Capital ratio was at 16.8% as of December 31, 2020. Risk-weighted Assets were at ₹ 1,091,721 crore (as against ₹ 950,976 crore as at December 31, 2019).
NETWORK
As of December 31, 2020, the Bank’s distribution network was at 5,485 branches and 15,541 ATMs / Cash Deposit & Withdrawal Machines (CDMs) across 2,866 cities / towns as against 5,203 branches and 14,533 ATMs / CDMs across 2,787 cities / towns as of December 31, 2019. 50% of our branches are in semi-urban and rural areas. In addition, we have 13,675 business correspondents, which are primarily manned by Common Service Centres (CSC) as against 3,563 business correspondents as of December 31, 2019. Number of employees were at 117,560 as of December 31, 2020 (as against 113,981 as of December 31, 2019).
| NEWS RELEASE | HDFC Bank Ltd. HDFC Bank House, Senapati Bapat Marg, Lower Parel, Mumbai - 400 013. CIN: L65920MH1994PLC080618 |
ASSET QUALITY
The Gross and Net non-performing assets were at 0.81% of gross advances and 0.09% of net advances as on December 31, 2020 respectively.
The restructuring under RBI resolution framework for COVID-19 was approximately 0.5% of advances.
The Honourable Supreme Court of India, in a public interest litigation (Gajendra Sharma Vs Union of India & Anr), vide an interim order dated September 3, 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 using its analytical models (proforma approach), the proforma Gross NPA ratio would have been 1.38% as on December 31, 2020, as against 1.37% as on September 30, 2020 and 1.42% as on December 31, 2019. The Bank’s proforma Net NPA ratio would have been 0.40%. 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 December 31, 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 ₹ 8,656 crore as on December 31, 2020. Total provisions (comprising specific, floating, contingent and general provisions) were 260% of the reported Gross NPAs or 148% of proforma Gross NPAs as on December 31, 2020.
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.
| NEWS RELEASE | HDFC Bank Ltd. HDFC Bank House, Senapati Bapat Marg, Lower Parel, Mumbai - 400 013. CIN: L65920MH1994PLC080618 |
HDFC Securities Limited (HSL) is amongst the leading retail broking firms in India. As on December 31, 2020, the Bank held 96.5% stake in HSL.
For the quarter ended December 31, 2020, HSL’s total income was ₹ 337.3 crore as against ₹ 216.3 crore for the quarter ended December 31, 2019. Profit after tax for the quarter was ₹ 166.6 crore, as against ₹ 101.7 crore for the quarter ended December 31, 2019.
As on December 31, 2020, HSL had 219 branches across 160 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 December 31, 2020, the Bank held 95.1% stake in HDBFSL.
The total loan book was ₹ 57,710 crore as on December 31, 2020 as against ₹ 56,748 crore as of December 31, 2019. During the quarter HDBFSL increased its liquidity buffers, with Liquidity Coverage Ratio now at a healthy 285.5%, well above the regulatory requirement.
For the quarter ended December 31, 2020, HDBFSL’s net interest income was at ₹ 1,010.4 crore as against ₹ 995.3 crore for the quarter ended December 31, 2019. Pre-provision Operating Profit (PPOP) at ₹ 748.7 crore grew by 7.5% over the corresponding quarter of the previous year and by 9.6% over quarter ended September 30, 2020.
Provisions and contingencies for the quarter were at ₹ 818.8 crore which included general provisions made as a matter of prudence. Profit / (Loss) after tax for the quarter ended December 31, 2020 was ₹ (44.3) crore compared to ₹ 216.7 crore for the quarter ended December 31, 2019. Profit after tax for the nine months ended December 31, 2020 was ₹ 218.3 crore compared to ₹ 695.2 crore for the nine months ended December 31, 2019.
| NEWS RELEASE | HDFC Bank Ltd. HDFC Bank House, Senapati Bapat Marg, Lower Parel, Mumbai - 400 013. CIN: L65920MH1994PLC080618 |
As on December 31, 2020, Gross and Net NPA were 2.7% of gross advances and 1.7% of net advances respectively.
However, if the Company had classified borrower accounts as NPA after August 31, 2020 along with the NBFC recognition methodology for NPAs (proforma approach), the proforma Gross NPA ratio would have been 5.9% as on December 31, 2020, as against 5.1% as on September 30, 2020 and 2.9% as on December 31, 2019. Pending disposal of the case, the Company, as a matter of prudence, has made a general provision in respect of these accounts.
Total CAR was at 19.5% with Tier-I CAR at 13.9%. As on December 31, 2020, HDBFSL had 1,328 branches across 964 cities / towns.
CONSOLIDATED FINANCIAL RESULTS
The consolidated net profit for the quarter ended December 31, 2020 was ₹ 8,769 crore, up 14.5%, over the quarter ended December 31, 2019. Consolidated advances grew by 14.9% from ₹ 986,606 crore as on December 31, 2019 to ₹ 1,133,410 crore as on December 31, 2020.
The consolidated net profit for the nine months ended December 31, 2020 was ₹ 23,399 crore, up 17.2% over the nine months ended December 31, 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
| NEWS RELEASE | 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
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
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 AND NINE MONTHS ENDED DECEMBER 31, 2020
| (₹ in lac) | ||||||||||||||||||||||||||
Particulars | Quarter ended | Nine Months ended | Year ended 31.03.2020 | |||||||||||||||||||||||
| 31.12.2020 | 30.09.2020 | 31.12.2019 | 31.12.2020 | 31.12.2019 | ||||||||||||||||||||||
| Unaudited | Audited (Refer note 4) | Unaudited | Unaudited | Unaudited | Audited | |||||||||||||||||||||
| 1 | Interest Earned (a)+(b)+(c)+(d) | 3007970 | 2997697 | 2936972 | 9043464 | 8492759 | 11481265 | |||||||||||||||||||
| a) Interest / discount on advances / bills | 2358069 | 2340485 | 2342463 | 7102291 | 6774330 | 9178788 | ||||||||||||||||||||
| b) Income on investments | 583191 | 561839 | 520314 | 1704794 | 1554262 | 2063332 | ||||||||||||||||||||
| c) Interest on balances with Reserve Bank of India and other inter bank funds | 55834 | 84156 | 60829 | 202638 | 119991 | 182893 | ||||||||||||||||||||
| d) Others | 10876 | 11217 | 13366 | 33741 | 44176 | 56252 | ||||||||||||||||||||
| 2 | Other Income | 744322 | 609245 | 666928 | 1761098 | 1722825 | 2326082 | |||||||||||||||||||
| 3 | Total Income (1)+(2) | 3752292 | 3606942 | 3603900 | 10804562 | 10215584 | 13807347 | |||||||||||||||||||
| 4 | Interest Expended | 1376209 | 1420058 | 1519682 | 4267522 | 4394540 | 5862640 | |||||||||||||||||||
| 5 | Operating Expenses (i)+(ii) | 857481 | 805506 | 789677 | 2354133 | 2241971 | 3069752 | |||||||||||||||||||
| i) Employees cost | 263012 | 254238 | 245496 | 768594 | 702741 | 952567 | ||||||||||||||||||||
| ii) Other operating expenses | 594469 | 551268 | 544181 | 1585539 | 1539230 | 2117185 | ||||||||||||||||||||
| 6 | Total Expenditure (4)+(5) (excluding Provisions and Contingencies) | 2233690 | 2225564 | 2309359 | 6621655 | 6636511 | 8932392 | |||||||||||||||||||
| 7 | Operating Profit before Provisions and Contingencies (3)-(6) | 1518602 | 1381378 | 1294541 | 4182907 | 3579073 | 4874955 | |||||||||||||||||||
| 8 | Provisions (other than tax) and Contingencies | 341413 | 370350 | 304356 | 1100915 | 835790 | 1214239 | |||||||||||||||||||
| 9 | Exceptional Items | — | — | — | — | — | — | |||||||||||||||||||
| 10 | Profit / (Loss) from Ordinary Activities before tax (7)-(8)-(9) | 1177189 | 1011028 | 990185 | 3081992 | 2743283 | 3660716 | |||||||||||||||||||
| 11 | Tax Expense | 301360 | 259717 | 248537 | 788990 | 810320 | 1034984 | |||||||||||||||||||
| 12 | Net Profit / (Loss) from Ordinary Activities after tax (10)-(11) | 875829 | 751311 | 741648 | 2293002 | 1932963 | 2625732 | |||||||||||||||||||
| 13 | Extraordinary items (net of tax expense) | — | — | — | — | — | — | |||||||||||||||||||
| 14 | Net Profit / (Loss) for the period (12)-(13) | 875829 | 751311 | 741648 | 2293002 | 1932963 | 2625732 | |||||||||||||||||||
| 15 | Paid up equity share capital (Face Value of ₹ 1/- each) | 55077 | 55037 | 54770 | 55077 | 54770 | 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 | 18.9 | % | 19.1 | % | 18.5 | % | 18.9 | % | 18.5 | % | 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 | 15.9 | 13.7 | 13.5 | 41.7 | 35.4 | 48.0 | ||||||||||||||||||||
| (b) Diluted EPS before & after extraordinary items (net of tax expense)—not annualized | 15.8 | 13.6 | 13.4 | 41.5 | 35.1 | 47.7 | ||||||||||||||||||||
| (iv) NPA Ratios | ||||||||||||||||||||||||||
| (a) Gross NPAs | 882556 | 1130460 | 1342725 | 882556 | 1342725 | 1264997 | ||||||||||||||||||||
| (b) Net NPAs | 101599 | 175608 | 446835 | 101599 | 446835 | 354236 | ||||||||||||||||||||
| (c) % of Gross NPAs to Gross Advances | 0.81 | % | 1.08 | % | 1.42 | % | 0.81 | % | 1.42 | % | 1.26 | % | ||||||||||||||
| (d) % of Net NPAs to Net Advances | 0.09 | % | 0.17 | % | 0.48 | % | 0.09 | % | 0.48 | % | 0.36 | % | ||||||||||||||
| (v) Return on assets (average)—not annualized | 0.55 | % | 0.48 | % | 0.55 | % | 1.47 | % | 1.51 | % | 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 | Nine Months ended | Year ended 31.03.2020 | ||||||||||||||||||||||||
| 31.12.2020 | 30.09.2020 | 31.12.2019 | 31.12.2020 | 31.12.2019 | ||||||||||||||||||||||
Particulars | Unaudited | Audited (Refer note 4) | Unaudited | Unaudited | Unaudited | Audited | ||||||||||||||||||||
| 1 | Segment Revenue | |||||||||||||||||||||||||
| a) | Treasury | 820190 | 809877 | 708374 | 2430193 | 1965106 | 2655844 | |||||||||||||||||||
| b) | Retail Banking | 2781220 | 2768365 | 2775928 | 8259747 | 7978935 | 10799994 | |||||||||||||||||||
| c) | Wholesale Banking | 1432996 | 1391263 | 1576940 | 4242618 | 4585844 | 6113445 | |||||||||||||||||||
| d) | Other Banking Operations | 553301 | 496402 | 521074 | 1439386 | 1398542 | 1903341 | |||||||||||||||||||
| e) | Unallocated | — | — | — | — | 66 | 219 | |||||||||||||||||||
Total | 5587707 | 5465907 | 5582316 | 16371944 | 15928493 | 21472843 | ||||||||||||||||||||
Less: Inter Segment Revenue | 1835415 | 1858965 | 1978416 | 5567382 | 5712909 | 7665496 | ||||||||||||||||||||
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Income from Operations | 3752292 | 3606942 | 3603900 | 10804562 | 10215584 | 13807347 | ||||||||||||||||||||
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| 2 | Segment Results | |||||||||||||||||||||||||
| a) | Treasury | 216936 | 192361 | 90373 | 659814 | 238047 | 346277 | |||||||||||||||||||
| b) | Retail Banking | 150718 | 265518 | 318421 | 638241 | 1027499 | 1294246 | |||||||||||||||||||
| c) | Wholesale Banking | 587538 | 345316 | 397927 | 1297299 | 1030761 | 1412109 | |||||||||||||||||||
| d) | Other Banking Operations | 264281 | 247518 | 226352 | 609175 | 575930 | 778463 | |||||||||||||||||||
| e) | Unallocated | (42284 | ) | (39685 | ) | (42888 | ) | (122537 | ) | (128954 | ) | (170379 | ) | |||||||||||||
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Total Profit Before Tax | 1177189 | 1011028 | 990185 | 3081992 | 2743283 | 3660716 | ||||||||||||||||||||
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| 3 | Segment Assets | |||||||||||||||||||||||||
| a) | Treasury | 48454139 | 48929119 | 37086993 | 48454139 | 37086993 | 45724091 | |||||||||||||||||||
| b) | Retail Banking | 49769712 | 47695525 | 47895345 | 49769712 | 47895345 | 48427074 | |||||||||||||||||||
| c) | Wholesale Banking | 59703781 | 57446053 | 47693394 | 59703781 | 47693394 | 52056701 | |||||||||||||||||||
| d) | Other Banking Operations | 6652394 | 6053624 | 6036452 | 6652394 | 6036452 | 6050057 | |||||||||||||||||||
| e) | Unallocated | 842758 | 818482 | 821378 | 842758 | 821378 | 793204 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total | 165422784 | 160942803 | 139533562 | 165422784 | 139533562 | 153051127 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
| 4 | Segment Liabilities | |||||||||||||||||||||||||
| a) | Treasury | 7682004 | 9236909 | 6097321 | 7682004 | 6097321 | 10201209 | |||||||||||||||||||
| b) | Retail Banking | 105202071 | 100454226 | 85664751 | 105202071 | 85664751 | 90725810 | |||||||||||||||||||
| c) | Wholesale Banking | 30117038 | 29861663 | 28547637 | 30117038 | 28547637 | 31762887 | |||||||||||||||||||
| d) | Other Banking Operations | 568514 | 552824 | 554529 | 568514 | 554529 | 503243 | |||||||||||||||||||
| e) | Unallocated | 2338725 | 2225940 | 2310248 | 2338725 | 2310248 | 2759376 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total | 145908352 | 142331562 | 123174486 | 145908352 | 123174486 | 135952525 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
| 5 | Capital Employed | |||||||||||||||||||||||||
(Segment Assets—Segment Liabilities) | ||||||||||||||||||||||||||
| a) | Treasury | 40772135 | 39692210 | 30989672 | 40772135 | 30989672 | 35522882 | |||||||||||||||||||
| b) | Retail Banking | (55432359 | ) | (52758701 | ) | (37769406 | ) | (55432359 | ) | (37769406 | ) | (42298736 | ) | |||||||||||||
| c) | Wholesale Banking | 29586743 | 27584390 | 19145757 | 29586743 | 19145757 | 20293814 | |||||||||||||||||||
| d) | Other Banking Operations | 6083880 | 5500800 | 5481923 | 6083880 | 5481923 | 5546814 | |||||||||||||||||||
| e) | Unallocated | (1495967 | ) | (1407458 | ) | (1488870 | ) | (1495967 | ) | (1488870 | ) | (1966172 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total | 19514432 | 18611241 | 16359076 | 19514432 | 16359076 | 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 December 31, 2020 is given below: |
| (₹ in lac) | ||||||||||||
Particulars | As at 31.12.2020 | As at 31.12.2019 | As at 31.03.2020 | |||||||||
| Unaudited | Unaudited | Audited | ||||||||||
CAPITAL AND LIABILITIES | ||||||||||||
Capital | 55077 | 54770 | 54833 | |||||||||
Reserves and Surplus | 19459355 | 16304306 | 17043769 | |||||||||
Deposits | 127112386 | 106743347 | 114750231 | |||||||||
Borrowings | 12013015 | 11327720 | 14462854 | |||||||||
Other Liabilities and Provisions | 6782951 | 5103419 | 6739440 | |||||||||
|
|
|
|
|
| |||||||
Total | 165422784 | 139533562 | 153051127 | |||||||||
|
|
|
|
|
| |||||||
ASSETS | ||||||||||||
Cash and Balances with Reserve Bank of India | 8772856 | 9279115 | 7220512 | |||||||||
Balances with Banks and Money at Call and Short notice | 1768952 | 961497 | 1441360 | |||||||||
Investments | 41437619 | 31129412 | 39182666 | |||||||||
Advances | 108232416 | 93602952 | 99370288 | |||||||||
Fixed Assets | 476711 | 428829 | 443191 | |||||||||
Other Assets | 4734230 | 4131757 | 5393110 | |||||||||
|
|
|
|
|
| |||||||
Total | 165422784 | 139533562 | 153051127 | |||||||||
|
|
|
|
|
| |||||||
| 2 | The above financial results have been approved by the Board of Directors at its meeting held on January 16, 2021. The financial results for the quarter and nine months ended December 31, 2020 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 consistent with those followed in the annual financial statements for the year ended March 31, 2020. |
| 4 | The figures for the second quarter of the financial year 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 financial year. |
| 5 | During the quarter and nine months ended December 31, 2020, the Bank allotted 39,52,776 and 2,43,70,472 equity shares respectively pursuant to the exercise of options under the approved employee stock option schemes. |
| 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 outside containment zones. |
The impact of COVID-19, including changes in customer behavior 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. While there has been a gradual pickup in economic activity since the easing of lockdown measures, the continued slowdown 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 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.
In accordance with the COVID-19 Regulatory Packages announced by the RBI on March 27, 2020, April 17, 2020 and May 23, 2020, the Bank, in accordance with its board approved policy, offered a moratorium on the repayment of all installments and / or interest, as applicable, due between March 1, 2020 and August 31, 2020 to all eligible borrowers classified as standard, even if overdue, as on February 29, 2020. In respect of such accounts that were granted moratorium, the asset classification remained standstill during the moratorium period.
The Bank holds provisions as at December 31, 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.
| 7 | 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 banks that accounts which were not declared NPA till August 31, 2020 shall not be declared as NPA till further orders. Pending the finality, 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 1.38% at December 31, 2020 (at September 30, 2020: 1.37%) and 0.40% at December 31, 2020 (at September 30, 2020: 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’.
| 8 | 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. |
| 9 | Other operating expenses include commission paid to sales agents of ₹ 758.58 crore (previous period: ₹ 836.15 crore) and ₹ 1,747.44 crore (previous period: ₹ 2,297.91 crore) for the quarter and nine months ended December 31, 2020 respectively. |
| 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 : January 16, 2021 | 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
UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2020
| (₹ in lac) | ||||||||||||||||||||||||||
| Quarter ended | Nine Months ended | Year ended 31.03.2020 | ||||||||||||||||||||||||
| 31.12.2020 | 30.09.2020 | 31.12.2019 | 31.12.2020 | 31.12.2019 | ||||||||||||||||||||||
| Particulars | Unaudited | Audited (Refer note 4) | Unaudited | Unaudited | Unaudited | Audited | ||||||||||||||||||||
| 1 | Interest Earned (a)+(b)+(c)+(d) | 3185160 | 3174227 | 3120092 | 9594548 | 9039425 | 12218930 | |||||||||||||||||||
| a) Interest / discount on advances / bills | 2530278 | 2511976 | 2526590 | 7640054 | 7316039 | 9907963 | ||||||||||||||||||||
| b) Income on investments | 580793 | 562245 | 515536 | 1702979 | 1549716 | 2057273 | ||||||||||||||||||||
| c) Interest on balances with Reserve Bank of India and other inter bank funds | 58801 | 85302 | 61925 | 208261 | 122749 | 186877 | ||||||||||||||||||||
| d) Others | 15288 | 14704 | 16041 | 43254 | 50921 | 66817 | ||||||||||||||||||||
| 2 | Other Income | 798713 | 669620 | 712478 | 1903031 | 1838686 | 2487898 | |||||||||||||||||||
| 3 | Total Income (1)+(2) | 3983873 | 3843847 | 3832570 | 11497579 | 10878111 | 14706828 | |||||||||||||||||||
| 4 | Interest Expended | 1452268 | 1503318 | 1607327 | 4516435 | 4660886 | 6213743 | |||||||||||||||||||
| 5 | �� | Operating Expenses (i)+(ii) | 917980 | 860746 | 852535 | 2519334 | 2417581 | 3303605 | ||||||||||||||||||
| i) Employees cost | 345628 | 334885 | 333105 | 1010613 | 954329 | 1292013 | ||||||||||||||||||||
| ii) Other operating expenses | 572352 | 525861 | 519430 | 1508721 | 1463252 | 2011592 | ||||||||||||||||||||
| 6 | Total Expenditure (4)+(5) (excluding Provisions and Contingencies) | 2370248 | 2364064 | 2459862 | 7035769 | 7078467 | 9517348 | |||||||||||||||||||
| 7 | Operating Profit before Provisions and Contingencies (3)-(6) | 1613625 | 1479783 | 1372708 | 4461810 | 3799644 | 5189480 | |||||||||||||||||||
| 8 | Provisions (Other than tax) and Contingencies | 432305 | 442013 | 347790 | 1308769 | 948344 | 1369994 | |||||||||||||||||||
| 9 | Exceptional Items | — | — | — | — | — | — | |||||||||||||||||||
| 10 | Profit / (Loss) from ordinary activities before tax (7)-(8)-(9) | 1181320 | 1037770 | 1024918 | 3153041 | 2851300 | 3819486 | |||||||||||||||||||
| 11 | Tax Expense | 305301 | 266633 | 258922 | 811797 | 851344 | 1089859 | |||||||||||||||||||
| 12 | Net Profit / (Loss) from Ordinary Activities after tax (10)-(11) | 876019 | 771137 | 765996 | 2341244 | 1999956 | 2729627 | |||||||||||||||||||
| 13 | Extraordinary items (net of tax expense) | — | — | — | — | — | — | |||||||||||||||||||
| 14 | Net Profit / (Loss) for the period (12)-(13) | 876019 | 771137 | 765996 | 2341244 | 1999956 | 2729627 | |||||||||||||||||||
| 15 | Less: Share of minority shareholders | (914 | ) | 851 | 31 | 1301 | 2582 | 4231 | ||||||||||||||||||
| 16 | Consolidated Net Profit / (Loss) for the period (14)-(15) | 876933 | 770286 | 765965 | 2339943 | 1997374 | 2725396 | |||||||||||||||||||
| 17 | Paid up equity share capital (Face Value of ₹ 1/- each) | 55077 | 55037 | 54770 | 55077 | 54770 | 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 | 15.9 | 14.0 | 14.0 | 42.6 | 36.5 | 49.8 | ||||||||||||||||||||
| (b) Diluted EPS before & after extraordinary items (net of tax expense)—not annualized | 15.8 | 14.0 | 13.9 | 42.4 | 36.2 | 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) | ||||||||||||||||||||||||||
| Quarter ended | Nine Months ended | Year ended 31.03.2020 | ||||||||||||||||||||||||
| 31.12.2020 | 30.09.2020 | 31.12.2019 | 31.12.2020 | 31.12.2019 | ||||||||||||||||||||||
Particulars | Unaudited | Audited (Refer note 4) | Unaudited | Unaudited | Unaudited | Audited | ||||||||||||||||||||
1 | Segment Revenue | |||||||||||||||||||||||||
a) | Treasury | 820190 | 809877 | 708374 | 2430193 | 1965106 | 2655844 | |||||||||||||||||||
b) | Retail Banking | 2781220 | 2768365 | 2775928 | 8259747 | 7978935 | 10799994 | |||||||||||||||||||
c) | Wholesale Banking | 1432996 | 1391263 | 1576940 | 4242618 | 4585844 | 6113445 | |||||||||||||||||||
d) | Other Banking Operations | 784882 | 733307 | 749744 | 2132403 | 2061069 | 2802822 | |||||||||||||||||||
e) | Unallocated | — | — | — | — | 66 | 219 | |||||||||||||||||||
| Total | 5819288 | 5702812 | 5810986 | 17064961 | 16591020 | 22372324 | ||||||||||||||||||||
| Less: Inter Segment Revenue | 1835415 | 1858965 | 1978416 | 5567382 | 5712909 | 7665496 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
| Income from Operations | 3983873 | 3843847 | 3832570 | 11497579 | 10878111 | 14706828 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
2 | Segment Results | |||||||||||||||||||||||||
a) | Treasury | 216936 | 192361 | 90373 | 659814 | 238047 | 346277 | |||||||||||||||||||
b) | Retail Banking | 150718 | 265518 | 318421 | 638241 | 1027499 | 1294246 | |||||||||||||||||||
c) | Wholesale Banking | 587538 | 345316 | 397927 | 1297299 | 1030761 | 1412109 | |||||||||||||||||||
d) | Other Banking Operations | 268412 | 274260 | 261085 | 680224 | 683947 | 937233 | |||||||||||||||||||
e) | Unallocated | (42284 | ) | (39685 | ) | (42888 | ) | (122537 | ) | (128954 | ) | (170379 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
| Total Profit Before Tax and Minority Interest | 1181320 | 1037770 | 1024918 | 3153041 | 2851300 | 3819486 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
3 | Segment Assets | |||||||||||||||||||||||||
a) | Treasury | 48454139 | 48929119 | 37086993 | 48454139 | 37086993 | 45724091 | |||||||||||||||||||
b) | Retail Banking | 49769712 | 47695525 | 47895345 | 49769712 | 47895345 | 48427074 | |||||||||||||||||||
c) | Wholesale Banking | 59703781 | 57446053 | 47693394 | 59703781 | 47693394 | 52056701 | |||||||||||||||||||
d) | Other Banking Operations | 11899147 | 11107044 | 11026688 | 11899147 | 11026688 | 11081971 | |||||||||||||||||||
e) | Unallocated | 842758 | 818482 | 821378 | 842758 | 821378 | 793204 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
| Total | 170669537 | 165996223 | 144523798 | 170669537 | 144523798 | 158083041 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
4 | Segment Liabilities | |||||||||||||||||||||||||
a) | Treasury | 7682004 | 9236909 | 6097321 | 7682004 | 6097321 | 10201209 | |||||||||||||||||||
b) | Retail Banking | 105202071 | 100454226 | 85664751 | 105202071 | 85664751 | 90725810 | |||||||||||||||||||
c) | Wholesale Banking | 30117038 | 29861663 | 28547637 | 30117038 | 28547637 | 31762887 | |||||||||||||||||||
d) | Other Banking Operations | 5169467 | 4963113 | 4984839 | 5169467 | 4984839 | 4940224 | |||||||||||||||||||
e) | Unallocated | 2338725 | 2225940 | 2310248 | 2338725 | 2310248 | 2759376 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
| Total | 150509305 | 146741851 | 127604796 | 150509305 | 127604796 | 140389506 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
5 | Capital Employed |
| ||||||||||||||||||||||||
| (Segment Assets—Segment Liabilities) | ||||||||||||||||||||||||||
a) | Treasury | 40772135 | 39692210 | 30989672 | 40772135 | 30989672 | 35522882 | |||||||||||||||||||
b) | Retail Banking | (55432359 | ) | (52758701 | ) | (37769406 | ) | (55432359 | ) | (37769406 | ) | (42298736 | ) | |||||||||||||
c) | Wholesale Banking | 29586743 | 27584390 | 19145757 | 29586743 | 19145757 | 20293814 | |||||||||||||||||||
d) | Other Banking Operations | 6729680 | 6143931 | 6041849 | 6729680 | 6041849 | 6141747 | |||||||||||||||||||
e) | Unallocated | (1495967 | ) | (1407458 | ) | (1488870 | ) | (1495967 | ) | (1488870 | ) | (1966172 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
| Total | 20160232 | 19254372 | 16919002 | 20160232 | 16919002 | 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 December 31, 2020 is given below: |
| (₹ in lac) | ||||||||||||
Particulars | As at 31.12.2020 | As at 31.12.2019 | As at 31.03.2020 | |||||||||
| Unaudited | Unaudited | Audited | ||||||||||
CAPITAL AND LIABILITIES | ||||||||||||
Capital | 55077 | 54770 | 54833 | |||||||||
Reserves and Surplus | 20043562 | 16809070 | 17581038 | |||||||||
Minority Interest | 61593 | 55162 | 57664 | |||||||||
Deposits | 127049014 | 106702659 | 114620714 | |||||||||
Borrowings | 16214624 | 15498384 | 18683431 | |||||||||
Other Liabilities and Provisions | 7245667 | 5403753 | 7085361 | |||||||||
|
|
|
|
|
| |||||||
Total | 170669537 | 144523798 | 158083041 | |||||||||
|
|
|
|
|
| |||||||
ASSETS | ||||||||||||
Cash and balances with Reserve Bank of India | 8775532 | 9283118 | 7221100 | |||||||||
Balances with Banks and Money at Call and Short notice | 1914129 | 1053286 | 1572910 | |||||||||
Investments | 41144520 | 30787726 | 38930495 | |||||||||
Advances | 113340992 | 98660629 | 104367088 | |||||||||
Fixed Assets | 496711 | 447650 | 462685 | |||||||||
Other Assets | 4997653 | 4291389 | 5528763 | |||||||||
|
|
|
|
|
| |||||||
Total | 170669537 | 144523798 | 158083041 | |||||||||
|
|
|
|
|
| |||||||
| 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 January 16, 2021. The financial results for the quarter and nine months ended December 31, 2020 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 consistent with those followed in the annual financial statements for the year ended March 31, 2020. |
| 4 | The figures for the second quarter of the financial year 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 financial year. |
| 5 | 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 outside containment zones. |
The impact of COVID-19, including changes in customer behavior 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. While there has been a gradual pickup in economic activity since the easing of lockdown measures, the continued slowdown 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 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.
In accordance with the COVID-19 Regulatory Packages announced by the RBI on March 27, 2020, April 17, 2020 and May 23, 2020, the Group, in accordance with its board approved policy, offered a moratorium on the repayment of all installments and / or interest, as applicable, due between March 1, 2020 and August 31, 2020 to all eligible borrowers classified as standard, even if overdue, as on February 29, 2020. In respect of such accounts that were granted moratorium, the asset classification remained standstill during the moratorium period.
The Group holds provisions as at December 31, 2020 against the potential impact of COVID-19 based on the information available at this point in time. The provisions held by the Group are in excess of the RBI prescribed norms.
| 6 | 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. Pending the finality, 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’.
| 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 | Sashidhar Jagdishan | |
| Date : January 16, 2021 | Managing Director |