Form 6-K

 

 

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 April, 2018

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: 23rd April, 2018     By  

/s/ Sanjay Dongre

    Name: Sanjay Dongre
    Title: Executive 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 21st April, 2018 addressed to The New York Stock Exchange, New York, United States of America (USA) intimating about Outcome of Board Meeting held on 21st April, 2018.


Exhibit I

21st April, 2018

New York Stock Exchange

11, Wall Street,

New York,

NY 10005

USA

Dear Sir / Madam,

Re: Outcome of Board Meeting held on 21st April, 2018

We attach herewith the Audited Financial Results for the quarter and year ended 31st March 2018 (both standalone and consolidated), segment reporting and summarized Balance Sheet as on 31st March, 2018, duly approved by the Board of Directors at its meeting held today. The press release in this regard is also enclosed.

The Board of Directors have recommended a dividend of Rs.13/- per equity share of Rs. 2/- each (i.e. 650%) out of the net profits for the year ended 31st March, 2018, subject to approval of the shareholders at the ensuing Annual General Meeting of the Bank.

The Board of Directors have approved the issue of Perpetual Debt Instruments (part of Additional Tier I capital), Tier II Capital Bonds and Long Term Bonds (financing of infrastructure and affordable housing) up to a total amount of up to a total amount of Rs. 50,000 crore in the period of next twelve months through private placement mode, subject to the approval of the shareholders at the ensuing Annual General Meeting of the Bank and any other regulatory approvals as applicable.

Pursuant to the Regulations, we hereby confirm and declare that the Statutory Auditors of the Bank, M/s. Deloitte, Haskins & Sells, Chartered Accountants, have issued the Audit Report on the Standalone and Consolidated financial results for the quarter and year ended 31st March, 2018 with unmodified opinion.

This is for your information and record.

 

Thanking you,
Yours faithfully,
For HDFC Bank Limited
Sd/-
Sanjay Dongre
Executive Vice President (Legal) &
Company Secretary

Encl : a/a.


HDFC BANK LIMITED

FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED MARCH 31, 2018

 

                                 ( in lacs)  
         Quarter ended
31.03.2018
    Quarter ended
31.12.2017
    Quarter ended
31.03.2017
    Year ended
31.03.2018
    Year ended
31.03.2017
 
    

Particulars

 

Audited

(Refer note 4)

   

Unaudited

   

Audited

(Refer note 4)

   

Audited

   

Audited

 
1    Interest Earned (a)+(b)+(c)+(d)     2132108       2058127       1811440       8024135       6930596  
   a) Interest / discount on advances / bills     1666337       1615661       1350745       6266179       5205526  
   b) Income on Investments     422264       410030       426769       1622237       1594434  
  

c) Interest on balances with Reserve Bank of India and other inter bank funds

    19681       11238       16526       52388       53202  
   d) Others     23826       21198       17400       83331       77434  
2    Other Income     422858       386917       344626       1522031       1229649  
3    Total Income (1)+(2)     2554966       2445044       2156066       9546166       8160245  
4    Interest Expended     1066337       1026693       905930       4014649       3616674  
5    Operating Expenses (i)+(ii)     605063       573222       522196       2269036       1970332  
   i) Employees cost     174120       169126       155265       680574       648366  
   ii) Other operating expenses (Refer Note 11)     430943       404096       366931       1588462       1321966  
6    Total Expenditure (4)+(5) (excluding Provisions & Contingencies)     1671400       1599915       1428126       6283685       5587006  
7    Operating Profit before Provisions and Contingencies (3)-(6)     883566       845129       727940       3262481       2573239  
8    Provisions (other than tax) and Contingencies     154110       135144       126180       592749       359330  
9    Exceptional Items     —         —         —         —         —    
10    Profit / (Loss) from Ordinary Activities before tax (7)-(8)-(9)     729456       709985       601760       2669732       2213909  
11    Tax Expense     249528       245725       202751       921057       758943  
12    Net Profit / (Loss) from Ordinary Activities after tax (10)-(11)     479928       464260       399009       1748675       1454966  
13    Extraordinary items (net of tax expense)     —         —         —         —         —    
14    Net Profit / (Loss) for the period (12)-(13)     479928       464260       399009       1748675       1454966  
15    Paid up equity share capital (Face Value of 2/- each)     51902       51802       51251       51902       51251  
16    Reserves excluding revaluation reserves           10577601       8894987  
17    Analytical Ratios          
   (i) Percentage of shares held by Government of India     Nil       Nil       Nil       Nil       Nil  
   (ii) Capital Adequacy Ratio     14.8     15.5     14.6     14.8     14.6
   (iii) Earnings per share ()          
   (a) Basic EPS before & after extraordinary items (net of tax expense) - not annualized     18.5       17.9       15.6       67.8       57.2  
   (b) Diluted EPS before & after extraordinary items (net of tax expense) - not annualized     18.3       17.7       15.4       66.8       56.4  
   (iv) NPA Ratios          
   (a) Gross NPAs     860697       823488       588566       860697       588566  
   (b) Net NPAs     260102       277366       184399       260102       184399  
   (c) % of Gross NPAs to Gross Advances     1.30     1.29     1.05     1.30     1.05
   (d) % of Net NPAs to Net Advances     0.40     0.44     0.33     0.40     0.33
   (v) Return on assets (average) - not annualized     0.50     0.50     0.48     1.93     1.88


Segment information in accordance with the Accounting Standard on Segment Reporting (AS 17) of the operating segments of the Bank is as under:

 

 

                                      ( in lacs)  

Particulars

   Quarter ended
31.03.2018
     Quarter ended
31.12.2017
     Quarter ended
31.03.2017
     Year ended
31.03.2018
     Year ended
31.03.2017
 
   Audited
(Refer note 4)
     Unaudited      Audited
(Refer note 4)
     Audited      Audited  

1

  

Segment Revenue

              

a)

  

Treasury

     513629        503703        547047        1984137        2032618  

b)

  

Retail Banking

     1957522        1869320        1683063        7384305        6614750  

c)

  

Wholesale Banking

     1096443        1078527        842243        4150413        3258785  

d)

  

Other Banking Operations

     366371        326442        263975        1225914        904669  

e)

  

Unallocated

     —          —          —          —          —    
  

Total

     3933965        3777992        3336328        14744769        12810822  
  

Less: Inter Segment Revenue

     1378999        1332948        1180262        5198603        4650577  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
  

Income from Operations

     2554966        2445044        2156066        9546166        8160245  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

2

  

Segment Results

              

a)

  

Treasury

     24204        41235        42655        154000        165911  

b)

  

Retail Banking

     291824        230001        222172        997172        843216  

c)

  

Wholesale Banking

     278681        339253        259434        1172051        1012304  

d)

  

Other Banking Operations

     185253        154521        109334        548790        336533  

e)

  

Unallocated

     (50506      (55025      (31835      (202281      (144055
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
  

Total Profit Before Tax

     729456        709985        601760        2669732        2213909  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

3

  

Segment Assets

              

a)

  

Treasury

     35089438        26447291        26335640        35089438        26335640  

b)

  

Retail Banking

     37190659        34979225        29582892        37190659        29582892  

c)

  

Wholesale Banking

     29704057        29172014        27214883        29704057        27214883  

d)

  

Other Banking Operations

     3759549        3633910        2720588        3759549        2720588  

e)

  

Unallocated

     649728        675500        530018        649728        530018  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
  

Total

     106393431        94907940        86384021        106393431        86384021  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

4

  

Segment Liabilities

              

a)

  

Treasury

     5534970        4653686        3873249        5534970        3873249  

b)

  

Retail Banking

     59878546        55962663        52579290        59878546        52579290  

c)

  

Wholesale Banking

     27028720        21214705        19125490        27028720        19125490  

d)

  

Other Banking Operations

     408150        428484        314274        408150        314274  

e)

  

Unallocated

     2913542        2542143        1545480        2913542        1545480  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
  

Total

     95763928        84801681        77437783        95763928        77437783  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

5

  

Capital Employed

              
  

(Segment Assets-Segment Liabilities)

              

a)

  

Treasury

     29554468        21793605        22462391        29554468        22462391  

b)

  

Retail Banking

     (22687887      (20983438      (22996398      (22687887      (22996398

c)

  

Wholesale Banking

     2675337        7957309        8089393        2675337        8089393  

d)

  

Other Banking Operations

     3351399        3205426        2406314        3351399        2406314  

e)

  

Unallocated

     (2263814      (1866643      (1015462      (2263814      (1015462
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
  

Total

     10629503        10106259        8946238        10629503        8946238  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

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 RBI.

 

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


Notes :

1 Statement of Assets and Liabilities as at March 31, 2018 is given below.
            ( in lacs)  

Particulars

   As at
31.03.2018
     As at
31.03.2017
 

CAPITAL AND LIABILITIES

     Audited        Audited  

Capital

     51902        51251  

Reserves and Surplus

     10577601        8894987  

Deposits

     78877064        64363966  

Borrowings

     12310497        7402887  

Other Liabilities and Provisions

     4576367        5670930  
  

 

 

    

 

 

 

Total

     106393431        86384021  
  

 

 

    

 

 

 

ASSETS

     

Cash and Balances with Reserve Bank of India

     10467047        3789687  

Balances with Banks and Money at Call and Short notice

     1824460        1105523  

Investments

     24220024        21446334  

Advances

     65833309        55456820  

Fixed Assets

     360721        362675  

Other Assets

     3687870        4222982  
  

 

 

    

 

 

 

Total

     106393431        86384021  
  

 

 

    

 

 

 

 

2 The above results have been approved by the Board of Directors of the Bank at its meeting held on April 21, 2018. There are no qualifications in the auditor’s report for the year ended March 31, 2018. The information presented above is extracted from the audited financial statements.
3 The Bank has consistently applied its significant accounting policies in the preparation of its quarterly financial results and its annual financial statements during the years ended March 31, 2018 and March 31, 2017.
4 The figures of the last quarter in each of the financial years are the balancing figures between audited figures in respect of the full financial year and the published year to date figures upto the end of the third quarter of the respective financial year.
5 The Board of Directors at their meeting proposed a dividend of 13 per share, subject to the approval of the members at the ensuing Annual General Meeting. In terms of revised Accounting Standard (AS) 4 ‘Contingencies and Events occurring after the Balance sheet date’ as notified by the Ministry of Corporate Affairs through amendments to Companies (Accounting Standards) Amendment Rules, 2016, the Bank has not appropriated proposed dividend (including tax) aggregating 4,067.07 crore (previous year: 3,392.71 crore) from Statement of Profit and Loss for the year ended March 31, 2018. However, the effect of the proposed dividend has been reckoned in determining capital funds in the computation of capital adequacy ratio as at March 31, 2018 and March 31, 2017.
6 During the quarter and year ended March 31, 2018, the Bank allotted 4966650 and 32544550 shares respectively pursuant to the exercise of options under the approved employee stock option schemes.
7 During the year ended March 31, 2018, the Bank raised Additional Tier 1 Capital bonds of 8,000 crore and Tier 2 Capital bonds of 2,000 crore.
8 The Board of Directors of the Bank, at their meeting held on December 20, 2017 approved the raising of funds aggregating up to 24,000 crore, of which an amount up to a maximum of 8,500 crore shall be through the issuance of equity shares of face value of 2/- each pursuant to a preferential issue to Housing Development Finance Corporation Limited (the Bank’s promoters) and the balance shall be through the issuance of equity shares/ convertible securities/ depository receipts pursuant to a Qualified Institutions Placement (QIP)/ American Depository Receipts (ADR)/ Global Depository Receipt (GDR) program. The said raising of funds was approved by the shareholders of the Bank at its Extra Ordinary General meeting held on January 19, 2018 and is subject to the receipt of all relevant regulatory approvals.
9 In accordance with RBI guidelines, banks are required to make Pillar 3 disclosures including leverage ratio and liquidity coverage ratio under the Basel III Framework. The Bank’s Pillar 3 disclosures are available on its website at the following link: http://www.hdfcbank.com/aboutus/basel_disclosures/default.htm. These Pillar 3 disclosures have not been subjected to audit or review by the statutory auditors.
10 Other income relates to income from non-fund based banking activities including commission, fees, earnings from foreign exchange and derivative transactions, profit and loss (including revaluation) from investments and recoveries from accounts previously written off.
11 Other operating expenses include commission paid to sales agents of 660.44 crore (previous period: 508.65 crore) and 2,427.96 crore (previous year: 1,906.80 crore) for the quarter and year ended March 31, 2018 respectively.
12 RBI circular DBR.No.BP.BC.102/21.04.048/2017-18 dated April 2, 2018 grants banks an option to spread provisioning for mark to market losses on investments held in AFS and HFT for the quarters ended December 31, 2017 and March 31, 2018. The circular states that the provisioning for each of these quarters may be spread equally over up to four quarters, commencing with the quarter in which the loss was incurred. The Bank has recognised the entire net mark to market loss on investments in the respective quarters and has not availed of the said option.
13 As at March 31, 2018, the total number of banking outlets and ATMs were 4,787 and 12,635 respectively.
14 Figures of the previous periods have been regrouped / reclassified wherever necessary to conform to current period’s classification.
15 10 lac = 1 million

10 million = 1 crore

 

Place : Mumbai    Aditya Puri
Date : April 21, 2018    Managing Director

 

 

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


HDFC BANK LIMITED GROUP

CONSOLIDATED FINANCIAL RESULTS FOR THE YEAR ENDED MARCH 31, 2018

 

 

                 ( in lacs)  
    

Particulars

  

Year ended

31-03-2018

    

Year ended

31-03-2017

 
        Audited      Audited  
1    Interest Earned (a)+(b)+(c)+(d)      8528785        7327136  
   a) Interest / discount on advances / bills      6765890        5598618  
   b) Income on Investments      1622979        1595156  
   c) Interest on balances with Reserve Bank of India and other inter bank funds      54062        54486  
   d) Others      85854        78876  
2    Other Income      1605660        1287763  
3    TOTAL INCOME (1)+(2)      10134445        8614899  
4    Interest Expended      4238148        3804158  
5    Operating Expenses (i)+(ii)      2392722        2075107  
   i) Employees cost      919390        850470  
   ii) Other operating expenses      1473332        1224637  
6    TOTAL EXPENDITURE (4)+(5) (excluding Provisions & Contingencies)      6630870        5879265  
7    Operating Profit before Provisions and Contingencies (3)-(6)      3503575        2735634  
8    Provisions (Other than tax) and Contingencies      657182        399081  
9    Exceptional Items      —          —    
10    Profit / (Loss) from ordinary activities before tax (7)-(8)-(9)      2846393        2336553  
11    Tax Expense      990308        807812  
12    Net Profit / (Loss) from Ordinary Activities after tax (10)-(11)      1856085        1528741  
13    Extraordinary items (net of tax expense)      —          —    
14    Net Profit / (Loss) for the year (12)-(13)      1856085        1528741  
15    Minority Interest      5134        3672  
16    Share in profits of associates      52        234  
17    Consolidated Profit / (Loss) for the year attributable to the Group (14)-(15)+(16)      1851003        1525303  
18    Paid up equity share capital (Face Value of 2/- each)      51902        51251  
19    Reserves excluding revaluation reserves      10908011        9128144  
20    Analytical Ratios      
   (i) Percentage of shares held by Government of India      Nil        Nil  
   (ii) Earnings per share ()      
   (a) Basic EPS before & after extraordinary items (net of tax expense)      71.7        60.0  
   (b) Diluted EPS before & after extraordinary items (net of tax expense)      70.8        59.2  


Consolidated Segment information in accordance with the Accounting Standard on Segment Reporting (AS 17) of the operating segments of the Group is as under:

       ( in lacs)  

Particulars

   Year ended
31-03-2018
     Year ended
31-03-2017
 
   Audited      Audited  
1  

Segment Revenue

     
a)  

Treasury

     1984137        2032618  
b)  

Retail Banking

     7384305        6614750  
c)  

Wholesale Banking

     4150413        3258785  
d)  

Other banking operations

     1814193        1359323  
 

Total

     15333048        13265476  
 

Less: Inter Segment Revenue

     5198603        4650577  
    

 

 

    

 

 

 
 

Income from Operations

     10134445        8614899  
    

 

 

    

 

 

 
2  

Segment Results

     
a)  

Treasury

     154000        165911  
b)  

Retail Banking

     997172        843216  
c)  

Wholesale Banking

     1172051        1012304  
d)  

Other banking operations

     725451        459177  
e)  

Unallocated

     (202281      (144055
    

 

 

    

 

 

 
 

Total Profit Before Tax, Minority Interest & Earnings from Associates

     2846393        2336553  
    

 

 

    

 

 

 
3  

Segment Assets

     
a)  

Treasury

     35089438        26335640  
b)  

Retail Banking

     37190659        29582892  
c)  

Wholesale Banking

     29704057        27214883  
d)  

Other banking operations

     7684735        5570983  
e)  

Unallocated

     649728        530018  
    

 

 

    

 

 

 
 

Total

     110318617        89234416  
    

 

 

    

 

 

 
4  

Segment Liabilities

     
a)  

Treasury

     5534970        3873249  
b)  

Retail Banking

     59878546        52579290  
c)  

Wholesale Banking

     27028720        19125490  
d)  

Other banking operations

     3967293        2902368  
e)  

Unallocated

     2913542        1545480  
    

 

 

    

 

 

 
 

Total

     99323071        80025877  
    

 

 

    

 

 

 
5  

Capital Employed

     
  (Segment Assets - Segment Liabilities)      
a)  

Treasury

     29554468        22462391  
b)  

Retail Banking

     (22687887      (22996398
c)  

Wholesale Banking

     2675337        8089393  
d)  

Other banking operations

     3717442        2668615  
e)  

Unallocated

     (2263814      (1015462
    

 

 

    

 

 

 
 

Total

     10995546        9208539  
    

 

 

    

 

 

 

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 RBI.

 

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


Notes :

 

1 Consolidated Statement of Assets and Liabilities as at March 31, 2018 is given below.

 

            ( in lacs)  

Particulars

   As at
31-03-2018
     As at
31-03-2017
 

CAPITAL AND LIABILITIES

   Audited      Audited  

Capital

     51902        51251  

Reserves and Surplus

     10908011        9128144  

Minority Interest

     35633        29144  

Deposits

     78837514        64313425  

Borrowings

     15644208        9841564  

Other Liabilities and Provisions

     4841349        5870888  
  

 

 

    

 

 

 

Total

     110318617        89234416  
  

 

 

    

 

 

 

ASSETS

     

Cash and balances with Reserve Bank of India

     10468821        3791055  

Balances with Banks and Money at Call and Short notice

     1837335        1140057  

Investments

     23846092        21077711  

Advances

     70003384        58548099  

Fixed Assets

     381056        381470  

Other Assets

     3781929        4296024  
  

 

 

    

 

 

 

Total

     110318617        89234416  
  

 

 

    

 

 

 

 

2 The above results represent the consolidated financial results for HDFC Bank Limited and its subsidiaries constituting the ‘Group’ and the ‘Group’s’ share of profits in an associate. These results have been approved by the Board of Directors of the Bank at its meeting held on April 21, 2018. There are no qualifications in the auditor’s report for the year ended March 31, 2018. The information presented above is extracted from the audited consolidated financial statements.
3 The above results are prepared in accordance with the principles set out in Accounting Standard 21- Consolidated Financial Statements and Accounting Standard 23 - Accounting for Investments in Associates in Consolidated Financial Statements as prescribed by The Institute of Chartered Accountants of India.
4 The Group has consistently applied its significant accounting policies in the preparation of its annual financial statements during the years ended March 31, 2018 and March 31, 2017.
5 In terms of revised Accounting Standard (AS) 4 ‘Contingencies and Events occurring after the Balance sheet date’ as notified by the Ministry of Corporate Affairs through amendments to Companies (Accounting Standards) Amendment Rules, 2016, the Group has not appropriated proposed dividend (including tax) aggregating 4,092.48 crore (previous year 3,408.54 crore) from Statement of Profit and Loss for the year ended March 31, 2018. However, the effect of the proposed dividend has been reckoned by the Group in determining capital funds in the computation of capital adequacy ratio as at March 31, 2018 and March 31, 2017.
6 In accordance with RBI guidelines, banks are required to make Pillar 3 disclosures including leverage ratio and liquidity coverage ratio under the Basel III Framework. The Bank’s Pillar 3 disclosures are available on its website at the following link: http://www.hdfcbank.com/ aboutus/ basel_disclosures/ default.htm. These Pillar 3 disclosures have not been subjected to audit or review by the statutory auditors.
7 Figures of the previous year have been regrouped / reclassified wherever necessary to conform to current year classification.
8 10 lac = 1 million

10 million = 1 crore

 

Place : Mumbai    Aditya Puri
Date : April 21, 2018    Managing Director

 

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


 

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HDFC Bank Limited

FINANCIAL RESULTS (INDIAN GAAP) FOR THE QUARTER AND YEAR ENDED

MARCH 31, 2018

The Board of Directors of HDFC Bank Limited approved the Bank’s (Indian GAAP) results for the quarter and full year ended March 31, 2018, at their meeting held in Mumbai on Saturday, April 21, 2018. The accounts have been subjected to an audit by the statutory auditors of the Bank.

STANDALONE FINANCIAL RESULTS:

Profit & Loss Account: Quarter ended March 31, 2018

The Bank’s total income for the quarter ended March 31, 2018 was 25,549.7 crore, up from 21,560.7 crore for the quarter ended March 31, 2017. Net revenues (net interest income plus other income) increased by 19.1% to 14,886.3 crore for the quarter ended March 31, 2018 from 12,501.4 crore in the corresponding quarter of the previous year. Net interest income (interest earned less interest expended) for the quarter ended March 31, 2018 grew by 17.7% to 10,657.7 crore, from 9,055.1 crore for the quarter ended March 31, 2017, driven by average asset growth of 16.9% and a core net interest margin for the quarter of 4.3%.

Other income (non-interest revenue) at 4,228.6 crore was 28.4% of the net revenues for the quarter ended March 31, 2018 and grew by 22.7% over 3,446.3 crore in the corresponding quarter ended March 31, 2017. The four components of other income for the quarter ended March 31, 2018 were fees & commissions of 3,329.7 crore (2,523.0 crore in the corresponding quarter of the previous year), foreign exchange & derivatives revenue of 416.4 crore (356.7 crore for the corresponding quarter of the previous year), loss on revaluation / sale of investments of 22.0 crore (gain of 180.4 crore in the corresponding quarter of the previous year) and miscellaneous income, including recoveries and dividend, of 504.5 crore (386.2 crore for the corresponding quarter of the previous year).


 

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Operating expenses for the quarter ended March 31, 2018 were 6,050.6 crore, an increase of 15.9% over 5,222.0 crore during the corresponding quarter of the previous year. The core cost-to-income ratio for the quarter was at 40.6% as against 42.4% for the corresponding quarter ended March 31, 2017.

Provisions and contingencies for the quarter ended March 31, 2018 were 1,541.1 crore (consisting of specific loan loss provisions 1,132.5 crore, general provisions 153.4 crore, and other provisions 255.3 crore) as against 1,261.8 crore (consisting of specific loan loss provisions 977.9 crore, general provisions 280.3 crore, and other provisions 3.6 crore) for the quarter ended March 31, 2017. Profit before tax for the quarter ended March 31, 2018 was up 21.2% to 7,294.6 crore.

After providing 2,495.3 crore for taxation, the Bank earned a net profit of 4,799.3 crore, an increase of 20.3% over the quarter ended March 31, 2017.

Profit & Loss Account: Year ended March 31, 2018

For the year ended March 31, 2018, the Bank earned total income of 95,461.7 crore. Net revenues (net interest income plus other income) for the year ended March 31, 2018 were 55,315.2 crore, up by 21.7% over 45,435.7 crore for the year ended March 31, 2017. For the year ended March 31, 2018, the core net interest margin was 4.3%. Core cost to income ratio was at 41.7% for the year ended March 31, 2018, as against 44.5% for the previous year.

The Bank’s net profit for year ended March 31, 2018 was 17,486.8 crore, up 20.2%, over the year ended March 31, 2017.


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Balance Sheet: As of March 31, 2018

Total balance sheet size as of March 31, 2018 was 1,063,934 crore as against 863,840 crore as of March 31, 2017.

Total deposits as of March 31, 2018 were 788,771 crore, an increase of 22.5% over March 31, 2017. As of March 31, 2018 current account deposits were at 119,283 crore and savings account deposits at 223,810 crore grew by 15.6% over March 31, 2017. Time deposits were at 445,678 crore, an increase of 33.2% over the previous year, resulting in CASA deposits comprising 43.5% of total deposits as on March 31, 2018.

Total advances as of March 31, 2018 were 658,333 crore, an increase of 18.7% over March 31, 2017. This loan growth was contributed by both segments of the Bank’s loan portfolio with the loan mix between retail:wholesale at 57:43. As per regulatory [Basel 2] segment classification, retail loans grew by 27.4% and wholesale loans grew by 9.4%.

Capital Adequacy

The Bank’s total Capital Adequacy Ratio (CAR) as per Basel III guidelines was at 14.8% as on March 31, 2018 (14.6% as on March 31, 2017) as against a regulatory requirement of 10.875% including Capital Conservation Buffer of 1.875%. Tier 1 CAR was at 13.2% as of March 31, 2018 compared to 12.8% as of March 31, 2017. Common Equity Tier 1 Capital ratio was at 12.2% as of March 31, 2018. Risk-weighted Assets were at 800,126 crore (as against 640,030 crore as at March 31, 2017).

DIVIDEND

The Board of Directors recommended a dividend of 13 per equity share of 2 for the year ended March 31, 2018, as against 11 per equity share of 2 for the previous year. This would be subject to approval by the shareholders at the next annual general meeting.


 

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NETWORK

As of March 31, 2018, the Bank’s distribution network was at 4,787 banking outlets and 12,635 ATMs across 2,691 cities / towns as against 4,715 banking outlets and 12,260 ATMs across 2,657 cities / towns as of March 31, 2017. Of the total banking outlets, 53% are in semi-urban and rural areas. Number of employees were at 88,253 as of March 31, 2018 (as against 84,325 as of March 31, 2017).

ASSET QUALITY

Gross non-performing assets were at 1.30% of gross advances as on March 31, 2018, as against 1.29% as on December 31, 2017 and 1.05% as on March 31, 2017. Net non-performing assets were at 0.4% of net advances as on March 31, 2018. The Bank held floating provisions of 1,451 crore as on March 31, 2018.

SUBSIDIARIES

HDFC Securities Limited (HSL) is amongst the leading retail broking firms in India. As on March 31, 2018, the Bank held 97.7% stake in HSL.

For the year ended March 31, 2018, HSL’s total income grew by 42.5% to 788.3 crore. Net profit for the year was 344.4 crore, a growth of 59.5% over 215.9 crore in the previous year.

As on March 31, 2018 HSL had 259 branches across 171 cities / towns in the country.

HDB Financial Services Limited (HDBFSL) is a non-deposit taking non-bank finance company (‘NBFC’) offering wide range of loans and asset finance products to individuals, emerging businesses and micro enterprises. As on March 31, 2018, the Bank held 95.9% stake in HDBFSL.

As on March 31, 2018, HDBFSL’s balance sheet size was at 44,754 crore. The total loan book grew by 34.9% to 43,573 crore as on March 31, 2018 (as against 32,292 crore as of March 31, 2017).

For the year ended March 31, 2018, HDBFSL’s net interest income grew by 36.9% to 2,788.9 crore (as against 2,037.2 crore in the previous year). The net profit for the year ended March 31, 2018 was 951.7 crore compared to 684.2 crore in the previous year, a growth of 39.1%.


 

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As on March 31, 2018, HDBFSL had 1,165 branches across 831 cities / towns.

Gross NPAs were at 1.6% of gross advances and net NPAs were at 1.0% of net advances as on March 31, 2018. Total CAR was at 17.9% with Tier-I CAR at 13.2%.

CONSOLIDATED FINANCIAL RESULTS

The consolidated net profit for the year ended March 31, 2018 was 18,510.0 crore, up 21.4%, over the year ended March 31, 2017. Consolidated advances grew by 19.6% from 585,481 crore as on March 31, 2017 to 700,034 crore as on March 31, 2018.

Note:

 = Indian Rupees

1 crore = 10 million

All figures and ratios are in accordance with Indian GAAP.

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.


 

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For more information please log on to: www.hdfcbank.com

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:

Bhavin Lakhpatwala

HDFC Bank Ltd., Mumbai.

Tel: 91 - 22 - 6652 1083 (D) / 6652 1000 (B)

Mobile: +91 74983 51730

bhavin.lakhpatwala@hdfcbank.com