HDFC Bank : Financial Results for Quarter and Half Year ended September 30, 2021

HDFC BANK LIMITED

CIN : L65920MH1994PLC080618

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

Website: https://www.hdfcbank.com, Tel.: [phone], Fax: [phone]

	AUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED SEPTEMBER 30, 2021	( in lac)
			Quarter ended		Half year ended	Year ended
	Particulars	30.09.2021	30.06.2021	30.09.2020	30.09.2021	30.09.2020	31.03.2021
	Audited	Unaudited	Audited	Audited	Audited	Audited
		(Refer note 5)		(Refer note 5)
1	Interest Earned (a)+(b)+(c)+(d)	3135337	3048297	2997697	6183634	6035494	12085823
	a) Interest / discount on advances / bills	2411494	2359273	2340485	4770767	4744222	9483454
	b) Income on investments	645064	649314	561839	1294378	1121603	2321427
	c) Interest on balances with Reserve Bank of India and other	69090	30283	84156	99373	146804	234125
	inter-bank funds
	d) Others	9689	9427	11217	19116	22865	46817
2	Other Income	740079	628850	609245	1368929	1016776	2520489
3	Total Income (1)+(2)	3875416	3677147	3606942	7552563	7052270	14606312
4	Interest Expended	1366898	1347401	1420058	2714299	2891313	5597866
5	Operating Expenses (i)+(ii)	927789	816043	805506	1743832	1496652	3272262
	i) Employees cost	296705	276558	254238	573263	505582	1036479
	ii) Other operating expenses	631084	539485	551268	1170569	991070	2235783
6	Total Expenditure (4)+(5) (excluding Provisions and	2294687	2163444	2225564	4458131	4387965	8870128
	Contingencies)
7	Operating Profit before Provisions and Contingencies (3)-(6)	1580729	1513703	1381378	3094432	2664305	5736184
8	Provisions (other than tax) and Contingencies	392466	483084	370350	875550	759502	1570285
9	Exceptional Items	-	-	-	-	-	-
10	Profit / (Loss) from Ordinary Activities before tax (7)-(8)-(9)	1188263	1030619	1011028	2218882	1904803	4165899
11	Tax Expense	304832	257655	259717	562487	487630	1054246
12	Net Profit / (Loss) from Ordinary Activities after tax (10)-(11)	883431	772964	751311	1656395	1417173	3111653
13	Extraordinary items (net of tax expense)	-	-	-	-	-	-
14	Net Profit / (Loss) for the period (12)-(13)	883431	772964	751311	1656395	1417173	3111653
15	Paid up equity share capital (Face Value of 1/- each)	55375	55267	55037	55375	55037	55128
16	Reserves excluding revaluation reserves						20316953
17	Analytical Ratios and other disclosures:
	(i) Percentage of shares held by Government of India	Nil	Nil	Nil	Nil	Nil	Nil
	(ii) Capital Adequacy Ratio	20.0%	19.1%	19.1%	20.0%	19.1%	18.8%
	(iii) Earnings per share (EPS) ( ) (Face Value of 1/- each):
	(a) Basic EPS before & after extraordinary items (net of tax	16.0	14.0	13.7	30.0	25.8	56.6
	expense) - not annualized
	(b) Diluted EPS before & after extraordinary items (net of tax	15.9	13.9	13.6	29.8	25.7	56.3
	expense) - not annualized
	(iv) NPA Ratios:
	(a) Gross NPAs	1634607	1709851	1130460	1634607	1130460	1508600
	(b) Net NPAs	475509	548580	175608	475509	175608	455482
	(c) % of Gross NPAs to Gross Advances	1.35%	1.47%	1.08%	1.35%	1.08%	1.32%
	(d) % of Net NPAs to Net Advances	0.40%	0.48%	0.17%	0.40%	0.17%	0.40%
	(v) Return on assets (average) - not annualized	0.50%	0.45%	0.48%	0.95%	0.92%	1.97%
	(vi) Net worth	21283028	20343590	18100984	21283028	18100984	19860103
	(vii) Outstanding redeemable preference shares	-	-	-	-	-	-
	(viii) Capital redemption reserve	-	-	-	-	-	-
	(ix) Debt-equity ratio	0.24	0.21	0.30	0.24	0.30	0.30
	(x) Total debts to total assets	8.12%	7.48%	8.24%	8.12%	8.24%	7.76%

• Debt represents borrowings with residual maturity of more than one year. Total debts represents total borrowings of the Bank.

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:

					Half year ended	( in lac)
			Quarter ended		Year ended
Particulars	30.09.2021	30.06.2021	30.09.2020	30.09.2021	30.09.2020	31.03.2021
Audited	Unaudited	Audited	Audited	Audited	Audited
		(Refer note 5)		(Refer note 5)
1	Segment Revenue
a)	Treasury	865042	864433	809877	1729475	1610003	3233767
b)	Retail Banking	2821405	2697467	2768365	5518872	5478527	11021021
c)	Wholesale Banking	1566263	1440699	1391263	3006962	2809622	5715430
d)	Other Banking Operations	542430	486344	496402	1028774	886085	1993753
e)	Unallocated	-	-	-	-	-	3082
	Total	5795140	5488943	5465907	11284083	10784237	21967053
	Less: Inter Segment Revenue	1919724	1811796	1858965	3731520	3731967	7360741
	Income from Operations	3875416	3677147	3606942	7552563	7052270	14606312

• Segment Results

a)	Treasury	231727	270743	192361	502470	442878	903050
b)	Retail Banking	207718	109036	265518	316754	487523	1057480
c)	Wholesale Banking	581321	535672	345316	1116993	709761	1743754
d)	Other Banking Operations	212010	152858	247518	364868	344894	620714
e)	Unallocated	(44513)	(37690)	(39685)	(82203)	(80253)	(159099)
	Total Profit Before Tax	1188263	1030619	1011028	2218882	1904803	4165899

• Segment Assets

a)	Treasury	53320390	50692647	48929119	53320390	48929119	51964174
b)	Retail Banking	55066808	52627989	47695525	55066808	47695525	52199722
c)	Wholesale Banking	68279622	64890618	57446053	68279622	57446053	62873157
d)	Other Banking Operations	6709298	6270073	6053624	6709298	6053624	6711608
e)	Unallocated	1108355	912781	818482	1108355	818482	938391
	Total	184484473	175394108	160942803	184484473	160942803	174687052

• Segment Liabilities

a)	Treasury	10540440	7646558	9236909	10540440	9236909	7627660
b)	Retail Banking	117708079	113146545	100454226	117708079	100454226	109621782
c)	Wholesale Banking	30520473	30827241	29861663	30520473	29861663	33811531
d)	Other Banking Operations	529363	491736	552824	529363	552824	585765
e)	Unallocated	3315106	2033234	2225940	3315106	2225940	2668233
	Total	162613461	154145314	142331562	162613461	142331562	154314971

• Capital Employed
  (Segment Assets - Segment Liabilities)

a)	Treasury	42779950	43046089	39692210	42779950	39692210	44336514
b)	Retail Banking	(62641271)	(60518556)	(52758701)	(62641271)	(52758701)	(57422060)
c)	Wholesale Banking	37759149	34063377	27584390	37759149	27584390	29061626
d)	Other Banking Operations	6179935	5778337	5500800	6179935	5500800	6125843
e)	Unallocated	(2206751)	(1120453)	(1407458)	(2206751)	(1407458)	(1729842)
	Total	21871012	21248794	18611241	21871012	18611241	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 is given below:			( in lac)
Particulars	As at	As at	As at
30.09.2021	30.09.2020	31.03.2021
CAPITAL AND LIABILITIES	Audited	Audited	Audited
Capital	55375	55037	55128
Reserves and Surplus	21815637	18556204	20316953
Deposits	140634330	122931039	133506022
Borrowings	14981354	13258005	13548733
Other Liabilities and Provisions	6997777	6142518	7260216
Total	184484473	160942803	174687052
ASSETS
Cash and Balances with Reserve Bank of India	15742861	9945296	9734073
Balances with Banks and Money at Call and Short notice	1185927	857815	2212966
Investments	41629258	41396511	44372829
Advances	119883743	103833513	113283663
Fixed Assets	522717	455523	490932
Other Assets	5519967	4454145	4592589
Total	184484473	160942803	174687052
2 Statement of Cash flow is given below:			in lac)
Particulars	Half year ended	Year ended
30.09.2021	30.09.2020	31.03.2021
Cash flows from operating activities:	Audited	Audited	Audited
Profit before income tax	2218882	1904803	4165899
Adjustments for:
Depreciation on fixed assets	73488	62117	130241
(Profit) / Loss on revaluation of investments	(103901)	116124	148532
Amortisation of premium on held to maturity investments	39655	36453	76547
(Profit) / loss on sale of fixed assets	448	(22)	(154)
Provision / charge for non performing assets	662234	403491	1164997
Provision for standard assets and contingencies	224940	361459	426948
Dividend from subsidiaries	(37519)	(8506)	(48304)
Employee Stock Options Expense	8299	-	-
Adjustments for:	3086526	2875919	6064706
(Increase) / decrease in investments	2777369	(2179312)	(5254061)
(Increase) / decrease in advances	(7263200)	(4868124)	(15092464)
Increase / (decrease) in deposits	7128308	8180810	18755793
(Increase) / decrease in other assets	(843864)	1030351	1001828
Increase / (decrease) in other liabilities and provisions	(460578)	(1145992)	(67565)
	4424561	3893652	5408237
Direct taxes paid (net of refunds)	(658825)	(583540)	(1258757)
Net cash flow from operating activities	3765736	3310112	4149480
Cash flows used in investing activities:
Purchase of fixed assets	(90748)	(68307)	(161738)
Proceeds from sale of fixed assets	717	313	1416
Dividend from subsidiaries	37519	8506	48304
Net cash flow used in investing activities	(52512)	(59488)	(112018)
Cash flows from / (used in) financing activities:
Proceeds from issue of share capital, net of issue expenses	188471	105900	176010
Proceeds from issue of Additional Tier I capital bonds	816275	-	-
Redemption of Tier II capital bonds	(365000)	(110500)	(110500)
Increase / (decrease) in other borrowings	981422	(1094347)	(803621)
Dividend paid during the period	(359240)	-	-
Net cash flow from / (used in) financing activities	1261928	(1098947)	(738111)
Effect of exchange fluctuation on translation reserve	6597	(10438)	(14184)
Net increase in cash and cash equivalents	4981749	2141239	3285167
Cash and cash equivalents as at April 1st	11947039	8661872	8661872
Cash and cash equivalents as at the period end	16928788	10803111	11947039

• The above financial results have been approved by the Board of Directors at its meeting held on October 16, 2021. The financial results for the quarter and half year ended September 30, 2021 have been subjected to an audit by the statutory auditors (MSKA & Associates, Chartered Accountants and M M Nissim & Co LLP, Chartered Accountants) of the Bank. The report thereon is unmodified. The previous period results were reviewed / audited by MSKA & Associates, Chartered Accountants.

• 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, 2021 except for its stock based employee compensation plans. RBI, vide its clarification dated August 30, 2021 on Guidelines on Compensation of Whole Time Directors / Chief Executive Officers / Material Risk Takers and Control Function Staff, advised Banks that the fair value of share-linked instruments on the date of grant should be recognised as an expense for all instruments granted after the accounting period ending March 31, 2021. Accordingly, the Bank has changed its accounting policy from the intrinsic value method to the fair value method for all share-linked instruments granted after March 31, 2021. The fair value of the stock-based compensation is estimated on the date of grant using Black-Scholes model and is recognised as compensation expense over the vesting period. The Bank granted stock options in July 2021 under its Employee Stock Option Scheme (ESOS) and as a result, 'Employees cost' for the quarter and half year ended September 30, 2021 is higher by 82.99 crore with a consequent reduction in profit after tax by the said amount.

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

• During the quarter and half year ended September 30, 2021, the Bank allotted 1,07,32,792 and 2,46,75,408 equity shares respectively pursuant to the exercise of options under the approved employee stock option schemes.

• During the quarter ended September 30, 2021, the Bank raised Basel III compliant Additional Tier 1 (AT1) Notes of U.S.$ 1 billion (equivalent 7,423.75 crore) and Basel III compliant AT1 Bonds of 739.00 crore.

• The outbreak of the COVID-19 pandemic had led to a nation-wide lockdown in April-May 2020. This was followed by localised lockdowns in areas with a significant number of COVID-19 cases. Following the easing of lockdown measures, there was an improvement in economic activity in the second half of fiscal 2021. India experienced a "second wave" of the COVID-19 pandemic in April-May 2021 following the discovery of mutant coronavirus variants, leading to the re-imposition of regional lockdowns. These were gradually lifted as the second wave subsided.
  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 impacted loan originations, the sale of third party products, the use of credit and debit cards by customers and the efficiency in collection efforts resulting in increase in customer defaults and consequent 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 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.

• (i) 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

(A) Number

of (B) Exposure to (C)

Of

(B), (D)

Additional (E)

Increase

in

accounts

where accounts

aggregate

funding

provisions

on

resolution

plan mentioned at (A) amount

of debt sanctioned, if any, account

of

the

Type of Borrower

has

been before

that

was including between implementation

implemented

implementation converted

into invocation

of

the of the resolution

under

this of the plan

other securities

plan

and

window

implementation

Personal Loans

287824

5467.49

-

-

546.75

Corporate persons

1547

1754.07

-

-

323.31

Of which, MSMEs

64

27.08

-

-

2.71

Others

47090

607.92

-

-

60.79

Total

336461

7829.48

-

-

930.85

in crore except number of accounts

Exposure

to Of

(A), Of

(A)

amount Of (A)

amount Exposure

to

accounts

aggregate

debt written

off

during paid

by

the accounts

classified

as

that

slipped

into the half-year#

borrowers

during classified

as

Standard

NPA

during

the

the half-year

Standard

Type of Borrower

consequent

to half-year

consequent

to

implementation

implementation

of

resolution

of resolution plan

plan

- Position

- Position as at

as at the end of

the

end

of

this

the previous half-

half-year

year (A)*

Personal Loans

5467.49

1283.06

808.57

366.34

3818.09

Corporate persons

1754.07

123.61

23.59

111.60

1518.86

Of which, MSMEs

27.08

9.47

1.29

4.88

12.73

Others

607.92

280.35

24.50

52.92

274.65

Total

7829.48

1687.02

856.66

530.86

5611.60

• includes restructuring implemented during the quarter ended June 2021 under the Resolution Framework 1.0.
  # represents debt that slipped into NPA and was subsequently written off during the half-year.
  (ii) Details of resolution plan implemented under the RBI Resolution Framework - 2.0: Resolution of COVID-19 related stress of Individuals and Small Businesses dated May 5,
  2021 are given below:

		in crore except number of accounts
Particulars	Individual Borrowers	Small
Personal Loans	Business Loans	businesses
A) Number of requests received for invoking resolution process	645276	612675	9870
B) Number of accounts where resolution plan has been implemented under this window	550499	530085	6934
C) Exposure to accounts mentioned at (B) before implementation of the plan	14102.61	1506.51	1787.99
D) Of (C), aggregate amount of debt that was converted into other securities	-	-	-
E) Additional funding sanctioned, if any, including between invocation of the plan and implementation	-	-	-
F) Increase in provisions on account of the implementation of the resolution plan	1618.56	196.79	178.48

Exposure to accounts is at borrower level.

Number of accounts under (B) is in respect of requests received for invoking resolution process.

There were 103574 borrower accounts having an aggregate exposure of 2,672.07 crore to the Bank, where resolution plans had been implemented under RBI's Resolution Framework 1.0 dated August 6, 2020 and now modified under RBI's Resolution Framework 2.0 dated May 5, 2021.

1. The Honourable Supreme Court of India (Hon'ble SC), vide an interim order dated September 3, 2020, had directed banks that accounts which were not declared NPA till August 31, 2020 shall not be declared as NPA till further orders, which the Bank complied with. 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 as at September 30, 2020 would have been 1.37% and 0.35% respectively. Pending disposal of the case, the Bank, as a matter of prudence, made in respect of these accounts a contingent provision, which was included in 'Provisions (other than tax) and Contingencies'. The said interim order stood vacated on March 23, 2021 and the Bank continued with the asset classification of borrower accounts as per the extant RBI instructions / IRAC norms.
2. 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.

1. Figures of the previous periods have been regrouped / reclassified wherever necessary to conform to current period's classification.
2. 10 lac = 1 million
   10 million = 1 crore

SASHIDHAR

JAGDISHAN

Digitally signed by SASHIDHAR JAGDISHAN

Date: 2021.10.16 14:35:21 +05'30'

Place : Mumbai	Sashidhar Jagdishan
Date : October 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.: [phone], Fax: [phone]

	AUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED SEPTEMBER 30, 2021	in lacs)
			Quarter ended		Half year ended	Year ended
	Particulars	30.09.2021	30.06.2021	30.09.2020	30.09.2021	30.09.2020	31.03.2021
	Audited	Unaudited	Audited	Audited	Audited	Audited
		(Refer note 5)		(Refer note 5)
1	Interest Earned (a)+(b)+(c)+(d)	3352044	3225376	3174227	6577420	6409388	12855240
	a) Interest / discount on advances / bills	2616373	2528096	2511976	5144469	5109776	10229913
	b) Income on investments	644370	647645	562245	1292015	1122186	2321162
	c) Interest on balances with Reserve Bank of India and other	70841	32066	85302	102907	149460	241430
	inter-bank funds	20460	17569	14704	38029	27966	62735
	d) Others
2	Other Income	791592	667987	669620	1459579	1104318	2733288
3	Total Income (1)+(2)	4143636	3893363	3843847	8036999	7513706	15588528
4	Interest Expended	1441528	1421850	1503318	2863378	3064167	5924759
5	Operating Expenses (i)+(ii)	998491	870689	860746	1869180	1601354	3500126
	i) Employees cost	393143	364374	334885	757517	664985	1367667
	ii) Other operating expenses	605348	506315	525861	1111663	936369	2132459
6	Total Expenditure (4)+(5) (excluding Provisions and	2440019	2292539	2364064	4732558	4665521	9424885
7	Contingencies)	1703617	1600824	1479783	3304441	2848185	6163643
Operating Profit before Provisions and Contingencies (3)-(6)
8	Provisions (Other than tax) and Contingencies	471267	536633	442013	1007900	876464	1884029
9	Exceptional Items	-	-	-	-	-	-
10	Profit / (Loss) from ordinary activities before tax (7)-(8)-(9)	1232350	1064191	1037770	2296541	1971721	4279614
11	Tax Expense	320354	270163	266633	590517	506496	1093937
12	Net Profit / (Loss) from Ordinary Activities after tax (10)-(11)	911996	794028	771137	1706024	1465225	3185677
13	Extraordinary items (net of tax expense)	-	-	-	-	-	-
14	Consolidated Net Profit / (Loss) for the period before	911996	794028	771137	1706024	1465225	3185677
15	minorities' interest (12)-(13)			851		2215	2356
Less: Minorities' Interest	2377	1819	4196
16	Consolidated Net Profit / (Loss) for the period attributable to	909619	792209	770286	1701828	1463010	3183321
17	the group (14)-(15)	55375	55267	55037	55375	55037	55128
Paid up equity share capital (Face Value of 1/- each)
18	Reserves excluding revaluation reserves						20925890
19	Analytical Ratios:	Nil	Nil	Nil	Nil	Nil	Nil
	(i) Percentage of shares held by Government of India
	(ii) Earnings per share (EPS) ( ) (Face Value of 1/- each):
	(a) Basic EPS before & after extraordinary items (net of tax	16.4	14.4	14.0	30.8	26.6	57.9
	expense) - not annualized
	(b) Diluted EPS before & after extraordinary items (net of tax	16.3	14.3	14.0	30.6	26.5	57.6
	expense) - not annualized

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