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 July, 2021

Commission File Number 001-15216

HDFC BANK LIMITED

(Translation of registrant’s name into English)

HDFC Bank House, Senapati Bapat Marg,

Lower Parel, Mumbai. 400 013, India

(Address of principal executive office)

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

Form 20-F  ☒    Form 40-F  ☐

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

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

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

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

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

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

82- Not Applicable                    .

SIGNATURES

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

		HDFC BANK LIMITED
		(Registrant)
Date: July 22, 2021	By	/s/ Santosh Haldankar
		Name: Santosh Haldankar
		Title: Sr. Vice President (Legal) & Company Secretary

EXHIBIT INDEX

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

Exhibit I

Description

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

Exhibit I

July 17, 2021

New York Stock Exchange

11, Wall Street,

New York,

NY 10005

USA

Dear Sir,

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

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

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

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

Kindly take the same on your records.

Yours truly,

For HDFC Bank Limited

Sd/-

Santosh Haldankar

Senior Vice President - Legal & Company Secretary

Encl: a/a.

HDFC BANK LIMITED

CIN : L65920MH1994PLC080618

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

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

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

											(₹ in lac)
		Quarter ended									Year ended 31.03.2021
		30.06.2021			31.03.2021			30.06.2020
Particulars		Unaudited			Audited (Refer note 4)			Unaudited			Audited
1	Interest Earned (a)+(b)+(c)+(d)		3048297			3042359			3037797			12085823
	a) Interest / discount on advances / bills		2359273			2381163			2403737			9483454
	b) Income on investments		649314			616633			559764			2321427
	c) Interest on balances with Reserve Bank of India and other inter bank funds		30283			31487			62648			234125
	d) Others		9427			13076			11648			46817
2	Other Income		628850			759391			407531			2520489
3	Total Income (1)+(2)		3677147			3801750			3445328			14606312
4	Interest Expended		1347401			1330344			1471255			5597866
5	Operating Expenses (i)+(ii)		816043			918129			691146			3272262
	i) Employees cost		276558			267885			251344			1036479
	ii) Other operating expenses		539485			650244			439802			2235783
6	Total Expenditure (4)+(5) (excluding Provisions and Contingencies)		2163444			2248473			2162401			8870128
7	Operating Profit before Provisions and Contingencies (3)-(6)		1513703			1553277			1282927			5736184
8	Provisions (other than tax) and Contingencies		483084			469370			389152			1570285
9	Exceptional Items		—			—			—			—
10	Profit / (Loss) from Ordinary Activities before tax (7)-(8)-(9)		1030619			1083907			893775			4165899
11	Tax Expense		257655			265256			227913			1054246
12	Net Profit / (Loss) from Ordinary Activities after tax (10)-(11)		772964			818651			665862			3111653
13	Extraordinary items (net of tax expense)		—			—			—			—
14	Net Profit / (Loss) for the period (12)-(13)		772964			818651			665862			3111653
15	Paid up equity share capital (Face Value of ₹ 1/- each)		55267			55128			54903			55128
16	Reserves excluding revaluation reserves											20316953
17	Analytical Ratios
	(i) Percentage of shares held by Government of India		Nil			Nil			Nil			Nil
	(ii) Capital Adequacy Ratio		19.1	%		18.8	%		18.9	%		18.8	%
	(iii) Earnings per share (EPS) (₹) (Face Value of ₹ 1/- each)
	(a) Basic EPS before & after extraordinary items (net of tax expense) - not annualized		14.0			14.9			12.1			56.6
	(b) Diluted EPS before & after extraordinary items (net of tax expense) - not annualized		13.9			14.7			12.1			56.3
	(iv) NPA Ratios
	(a) Gross NPAs		1709851			1508600			1377346			1508600
	(b) Net NPAs		548580			455482			327996			455482
	(c) % of Gross NPAs to Gross Advances		1.47	%		1.32	%		1.36	%		1.32	%
	(d) % of Net NPAs to Net Advances		0.48	%		0.40	%		0.33	%		0.40	%
	(v) Return on assets (average) - not annualized		0.45	%		0.50	%		0.44	%		1.97	%

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

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

											(₹ in lac)
		Quarter ended									Year ended 31.03.2021
		30.06.2021			31.03.2021			30.06.2020
Particulars		Unaudited			Audited (Refer note 4)			Unaudited			Audited
1	Segment Revenue
a)	Treasury		864433			803574			800126			3233767
b)	Retail Banking		2697467			2761274			2710162			11021021
c)	Wholesale Banking		1440699			1472812			1418359			5715430
d)	Other Banking Operations		486344			554367			389683			1993753
e)	Unallocated		—			3082			—			3082
	Total		5488943			5595109			5318330			21967053
	Less: Inter Segment Revenue		1811796			1793359			1873002			7360741
	Income from Operations		3677147			3801750			3445328			14606312
2	Segment Results
a)	Treasury		270743			243236			250517			903050
b)	Retail Banking		109036			419239			222005			1057480
c)	Wholesale Banking		535672			446455			364445			1743754
d)	Other Banking Operations		152858			11539			97376			620714
e)	Unallocated		(37690	)		(36562	)		(40568	)		(159099	)
	Total Profit Before Tax		1030619			1083907			893775			4165899
3	Segment Assets
a)	Treasury		50692647			51964174			46153925			51964174
b)	Retail Banking		52627989			52199722			46899518			52199722
c)	Wholesale Banking		64890618			62873157			54979292			62873157
d)	Other Banking Operations		6270073			6711608			5664473			6711608
e)	Unallocated		912781			938391			813123			938391
	Total		175394108			174687052			154510331			174687052
4	Segment Liabilities
a)	Treasury		7646558			7627660			7798899			7627660
b)	Retail Banking		113146545			109621782			96820706			109621782
c)	Wholesale Banking		30827241			33811531			29166649			33811531
d)	Other Banking Operations		491736			585765			523185			585765
e)	Unallocated		2033234			2668233			2405425			2668233
	Total		154145314			154314971			136714864			154314971
5	Capital Employed
	(Segment Assets - Segment Liabilities)
a)	Treasury		43046089			44336514			38355026			44336514
b)	Retail Banking		(60518556	)		(57422060	)		(49921188	)		(57422060	)
c)	Wholesale Banking		34063377			29061626			25812643			29061626
d)	Other Banking Operations		5778337			6125843			5141288			6125843
e)	Unallocated		(1120453	)		(1729842	)		(1592302	)		(1729842	)
	Total		21248794			20372081			17795467			20372081

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

Notes :    

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

					(₹ in lac)
Particulars	As at 30.06.2021		As at 30.06.2020		As at 31.03.2021
	Unaudited		Unaudited		Audited
CAPITAL AND LIABILITIES
Capital		55267		54903		55128
Reserves and Surplus		21193527		17740564		20316953
Deposits		134582934		118938729		133506022
Borrowings		13127502		11638900		13548733
Other Liabilities and Provisions		6434878		6137235		7260216
Total		175394108		154510331		174687052
ASSETS
Cash and Balances with Reserve Bank of India		10462511		9662537		9734073
Balances with Banks and Money at Call and Short notice		1535458		1301793		2212966
Investments		43613164		37935041		44372829
Advances		114765164		100329886		113283663
Fixed Assets		500538		446411		490932
Other Assets		4517273		4834663		4592589
Total		175394108		154510331		174687052

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

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

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

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

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

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

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

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

								₹ in crore except number of accounts
Type of Borrower		(A) Number of accounts where resolution plan has been implemented under this window		(B) Exposure to accounts mentioned at (A) before implementation of the plan		(C) Of (B), aggregate amount of debt that was converted into other securities		(D) Additional funding sanctioned, if any, including between invocation of the plan and implementation		(E) Increase in provisions on account of the implementation of the resolution
Personal Loans			287507		5457.35		—		—		545.74
Corporate persons			1510		1735.30		—		—		318.62
Of which, MSMEs			64		27.08		—		—		2.71
Others	��		47090		607.92		—		—		60.79
Total			336107		7800.57		—		—		925.15

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

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

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

11 ₹ 10 lac = ₹ 1 million

₹ 10 million = ₹ 1 crore    

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

HDFC BANK LIMITED

CIN : L65920MH1994PLC080618

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

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

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

								(₹ in lacs)
		Quarter ended						Year ended 31.03.2021
		30.06.2021		31.03.2021		30.06.2020
Particulars		Unaudited		Audited (Refer note 4)		Unaudited		Audited
1	Interest Earned (a)+(b)+(c)+(d)		3225376		3260692		3235161		12855240
	a) Interest / discount on advances / bills		2528096		2589859		2597800		10229913
	b) Income on investments		647645		618183		559941		2321162
	c) Interest on balances with Reserve Bank of India and other inter bank funds		32066		33169		64158		241430
	d) Others		17569		19481		13262		62735
2	Other Income		667987		830257		434698		2733288
3	Total Income (1)+(2)		3893363		4090949		3669859		15588528
4	Interest Expended		1421850		1408324		1560849		5924759
5	Operating Expenses (i)+(ii)		870689		980792		740608		3500126
	i) Employees cost		364374		357054		330100		1367667
	ii) Other operating expenses		506315		623738		410508		2132459
6	Total Expenditure (4)+(5) (excluding Provisions and Contingencies)		2292539		2389116		2301457		9424885
7	Operating Profit before Provisions and Contingencies (3)-(6)		1600824		1701833		1368402		6163643
8	Provisions (Other than tax) and Contingencies		536633		575260		434451		1884029
9	Exceptional Items		—		—		—		—
10	Profit / (Loss) from ordinary activities before tax (7)-(8)-(9)		1064191		1126573		933951		4279614
11	Tax Expense		270163		282140		239863		1093937
12	Net Profit / (Loss) from Ordinary Activities after tax (10)-(11)		794028		844433		694088		3185677
13	Extraordinary items (net of tax expense)		—		—		—		—
14	Net Profit / (Loss) for the period (12)-(13)		794028		844433		694088		3185677
15	Less: Share of minority shareholders		1819		1055		1364		2356
16	Consolidated Net Profit / (Loss) for the period (14)-(15)		792209		843378		692724		3183321
17	Paid up equity share capital (Face Value of ₹ 1/- each)		55267		55128		54903		55128
18	Reserves excluding revaluation reserves								20925890
19	Analytical Ratios
	(i) Percentage of shares held by Government of India		Nil		Nil		Nil		Nil
	(ii) Earnings per share (EPS) (₹) (Face Value of ₹ 1/- each)
	(a) Basic EPS before & after extraordinary items (net of tax expense) - not annualized		14.4		15.3		12.6		57.9
	(b) Diluted EPS before & after extraordinary items (net of tax expense) - not annualized		14.3		15.2		12.6		57.6

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

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

											(₹ in lacs)
		Quarter ended									Year ended 31.03.2021
		30.06.2021			31.03.2021			30.06.2020
Particulars		Unaudited			Audited (Refer note 4)			Unaudited			Audited
1	Segment Revenue
a)	Treasury		864433			803574			800126			3233767
b)	Retail Banking		2697467			2761274			2710162			11021021
c)	Wholesale Banking		1440699			1472812			1418359			5715430
d)	Other Banking Operations		702560			843566			614214			2975969
e)	Unallocated		—			3082			—			3082
	Total		5705159			5884308			5542861			22949269
	Less: Inter Segment Revenue		1811796			1793359			1873002			7360741
	Income from Operations		3893363			4090949			3669859			15588528
2	Segment Results
a)	Treasury		270743			243236			250517			903050
b)	Retail Banking		109036			419239			222005			1057480
c)	Wholesale Banking		535672			446455			364445			1743754
d)	Other Banking Operations		186430			54205			137552			734429
e)	Unallocated		(37690	)		(36562	)		(40568	)		(159099	)
	Total Profit Before Tax and Minority Interest		1064191			1126573			933951			4279614
3	Segment Assets
a)	Treasury		50692647			51964174			46153925			51964174
b)	Retail Banking		52627989			52199722			46899518			52199722
c)	Wholesale Banking		64890618			62873157			54979292			62873157
d)	Other Banking Operations		11406952			11975219			10779377			11975219
e)	Unallocated		912781			938391			813123			938391
	Total		180530987			179950663			159625235			179950663
4	Segment Liabilities
a)	Treasury		7646558			7627660			7798899			7627660
b)	Retail Banking		113146545			109621782			96820706			109621782
c)	Wholesale Banking		30827241			33811531			29166649			33811531
d)	Other Banking Operations		4935981			5177164			5014782			5177164
e)	Unallocated		2033234			2668232			2405425			2668232
	Total		158589559			158906369			141206461			158906369
5	Capital Employed
	(Segment Assets - Segment Liabilities)
a)	Treasury		43046089			44336514			38355026			44336514
b)	Retail Banking		(60518556	)		(57422060	)		(49921188	)		(57422060	)
c)	Wholesale Banking		34063377			29061626			25812643			29061626
d)	Other Banking Operations		6470971			6798055			5764595			6798055
e)	Unallocated		(1120453	)		(1729841	)		(1592302	)		(1729841	)
	Total		21941428			21044294			18418774			21044294

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

Notes :

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

					(₹ in lacs)
Particulars	As at 30.06.2021		As at 30.06.2020		As at 31.03.2021
	Unaudited		Unaudited		Audited
CAPITAL AND LIABILITIES
Capital		55267		54903		55128
Reserves and Surplus		21821709		18304694		20925890
Minority Interest		64452		59177		63276
Deposits		134487389		118727997		133372087
Borrowings		17259080		15968123		17769675
Other Liabilities and Provisions		6843090		6510341		7764607
Total		180530987		159625235		179950663
ASSETS
Cash and balances with Reserve Bank of India		10465660		9664986		9737035
Balances with Banks and Money at Call and Short notice		1764759		1380416		2390216
Investments		43064532		37725874		43882311
Advances		119787580		105368253		118528352
Fixed Assets		518657		466205		509956
Other Assets		4929799		5019501		4902793
Total		180530987		159625235		179950663

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

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

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

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

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

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

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

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

9 ₹ 10 lac = ₹ 1 million

₹ 10 million = ₹ 1 crore

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

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 ENDED JUNE 30, 2021

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

STANDALONE FINANCIAL RESULTS:

Profit & Loss Account: Quarter ended June 30, 2021

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

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

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

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

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

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

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

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

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

Balance Sheet: As of June 30, 2021

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

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

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

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

Capital Adequacy:

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

NETWORK

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

ASSET QUALITY

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

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

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

SUBSIDIARIES

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

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

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

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

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

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

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

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

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

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

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

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

CONSOLIDATED FINANCIAL RESULTS

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

Note:

₹ = Indian Rupees

1 crore = 10 million

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

BSE: 500180

NSE: HDFCBANK

NYSE: HDB

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

Vertical Head, Corporate Communication

HDFC Bank Ltd., Mumbai.

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

Mobile: +91 9920454102

rajivshiv.banerjee@hdfcbank.com

For investor queries please contact:

Ajit Shetty

HDFC Bank Ltd., Mumbai.

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

ajit.shetty@hdfcbank.com