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, 2020

Commission File Number 001-15216

 

 

HDFC BANK LIMITED

(Translation of registrant’s name into English)

 

 

HDFC Bank House, Senapati Bapat Marg,

Lower Parel, Mumbai. 400 013, India

(Address of principal executive office)

 

 

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

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

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

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

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

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

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- Not Applicable                    .

 

 

 

SIGNATURES

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

 

						HDFC BANK LIMITED
						(Registrant)
Date: July 21, 2020				By		/s/ Santosh Haldankar
						Name: Santosh Haldankar
						Title: Senior Vice President – Legal & Company Secretary

EXHIBIT INDEX

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

Exhibit I

Description

Communication dated July 20, 2020 addressed to The New York Stock Exchange, 11, Wall Street, New York, NY 10005, United States of America (USA) intimating about Unaudited Financial Results of the Bank for the quarter ended June 30,2020.

Exhibit I

July 20, 2020

New York Stock Exchange

11, Wall Street,

New York,

NY 10005

USA

Dear Sir,

Re: Unaudited Financial Results of the Bank for the quarter ended June 30, 2020

We enclose herewith the Unaudited Standalone and Consolidated Financial Results of the Bank for the first quarter ended June 30, 2020, segment reporting, Press Release and the report of the Statutory Auditors in this regard. The results were duly approved by the Board of Directors at its meeting held on July 18, 2020.

Kindly take the same on your records.

Thanking you,

For HDFC Bank Limited

Sd/-

Santosh Haldankar

Senior Vice President – Legal & Company Secretary

HDFC BANK LIMITED

CIN : L65920MH1994PLC080618

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

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

UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2020

 

																(₹ in lacs)
				Quarter ended												Year ended 31.03.2020
				30.06.2020				31.03.2020				30.06.2019
Particulars				Unaudited				Audited (Refer note 4)				Unaudited				Audited
1		Interest Earned (a)+(b)+(c)+(d)			3037797				2988506				2739159				11481265
		a) Interest / discount on advances / bills			2403737				2404458				2180469				9178788
		b) Income on Investments			559764				509070				524779				2063332
		c) Interest on balances with Reserve Bank of India and other inter bank funds			62648				62902				17520				182893
		d) Others			11648				12076				16391				56252
2		Other Income			407531				603257				497025				2326082
3		Total Income (1)+(2)			3445328				3591763				3236184				13807347
4		Interest Expended			1471255				1468100				1409734				5862640
5		Operating Expenses (i)+(ii)			691146				827781				711726				3069752
		i) Employees cost			251344				249826				221738				952567
		ii) Other operating expenses			439802				577955				489988				2117185
6		Total Expenditure (4)+(5) (excluding Provisions and Contingencies)			2162401				2295881				2121460				8932392
7		Operating Profit before Provisions and Contingencies (3)-(6)			1282927				1295882				1114724				4874955
8		Provisions (other than tax) and Contingencies			389152				378449				261366				1214239
9		Exceptional Items			—				—				—				—
10		Profit / (Loss) from Ordinary Activities before tax (7)-(8)-(9)			893775				917433				853358				3660716
11		Tax Expense			227913				224664				296542				1034984
12		Net Profit / (Loss) from Ordinary Activities after tax (10)-(11)			665862				692769				556816				2625732
13		Extraordinary items (net of tax expense)			—				—				—				—
14		Net Profit / (Loss) for the period (12)-(13)			665862				692769				556816				2625732
15		Paid up equity share capital (Face Value of ₹ 1/- each)			54903				54833				54656				54833
16		Reserves excluding revaluation reserves															17043769
17		Analytical Ratios
		(i) Percentage of shares held by Government of India			Nil				Nil				Nil				Nil
		(ii) Capital Adequacy Ratio			18.9	%			18.5	%			16.9	%			18.5	%
		(iii) Earnings per share (EPS) (₹) (Face Value of ₹ 1/- each)
		(a) Basic EPS before & after extraordinary items (net of tax expense) - not annualized			12.1				12.6				10.2				48.0
		(b) Diluted EPS before & after extraordinary items (net of tax expense) - not annualized			12.1				12.6				10.1				47.7
		(iv) NPA Ratios
		(a) Gross NPAs			1377346				1264997				1176895				1264997
		(b) Net NPAs			327996				354236				356718				354236
		(c) % of Gross NPAs to Gross Advances			1.36	%			1.26	%			1.40	%			1.26	%
		(d) % of Net NPAs to Net Advances			0.33	%			0.36	%			0.43	%			0.36	%
		(v) Return on assets (average) - not annualized			0.44	%			0.49	%			0.46	%			2.01	%

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

 

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

 

																(₹ in lacs)
				Quarter ended												Year ended 31.03.2020
				30.06.2020				31.03.2020				30.06.2019
Particulars				Unaudited				Audited (Refer note 4)				Unaudited				Audited
1		Segment Revenue
a)		Treasury			800126				690738				629192				2655844
b)		Retail Banking			2710162				2821059				2492929				10799994
c)		Wholesale Banking			1418359				1527601				1505961				6113445
d)		Other Banking Operations			389683				504799				442965				1903341
e)		Unallocated			—				153				66				219
		Total			5318330				5544350				5071113				21472843
		Less: Inter Segment Revenue			1873002				1952587				1834929				7665496
		Income from Operations			3445328				3591763				3236184				13807347
2		Segment Results
a)		Treasury			250517				108230				78153				346277
b)		Retail Banking			222005				266747				306714				1294246
c)		Wholesale Banking			364445				381348				332143				1412109
d)		Other Banking Operations			97376				202533				179647				778463
e)		Unallocated			(40568	)			(41425	)			(43299	)			(170379	)
		Total Profit Before Tax			893775				917433				853358				3660716
3		Segment Assets
a)		Treasury			46153925				45724091				35599098				45724091
b)		Retail Banking			46899518				48427074				44127240				48427074
c)		Wholesale Banking			54979292				52056701				40735586				52056701
d)		Other Banking Operations			5664473				6050057				5405812				6050057
e)		Unallocated			813123				793204				657549				793204
		Total			154510331				153051127				126525285				153051127
4		Segment Liabilities
a)		Treasury			7798899				10201209				4383589				10201209
b)		Retail Banking			96820706				90725810				76191655				90725810
c)		Wholesale Banking			29166649				31762887				27439197				31762887
d)		Other Banking Operations			523185				503243				542429				503243
e)		Unallocated			2405425				2759376				2404606				2759376
		Total			136714864				135952525				110961476				135952525
5		Capital Employed
		(Segment Assets - Segment Liabilities)
a)		Treasury			38355026				35522882				31215509				35522882
b)		Retail Banking			(49921188	)			(42298736	)			(32064415	)			(42298736	)
c)		Wholesale Banking			25812643				20293814				13296389				20293814
d)		Other Banking Operations			5141288				5546814				4863383				5546814
e)		Unallocated			(1592302	)			(1966172	)			(1747057	)			(1966172	)
		Total			17795467				17098602				15563809				17098602

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

 

Notes :

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

 

										(₹ in lacs)
Particulars		As at 30.06.2020				As at 30.06.2019				As at 31.03.2020
CAPITAL AND LIABILITIES		Unaudited				Unaudited				Audited
Capital			54903				54656				54833
Reserves and Surplus			17740564				15509153				17043769
Deposits			118938729				95455371				114750231
Borrowings			11638900				10089412				14462854
Other Liabilities and Provisions			6137235				5416693				6739440
Total			154510331				126525285				153051127
ASSETS
Cash and Balances with Reserve Bank of India			9662537				5771133				7220512
Balances with Banks and Money at Call and Short notice			1301793				2645660				1441360
Investments			37935041				30039690				39182666
Advances			100329886				82972981				99370288
Fixed Assets			446411				402627				443191
Other Assets			4834663				4693194				5393110
Total			154510331				126525285				153051127

 

2	The above financial results have been approved by the Board of Directors at its meeting held on July 18, 2020. The financial results for the quarter ended June 30, 2020 have been subjected to a “Limited Review” by the statutory auditors of the Bank. The report thereon is unmodified.

 

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

 

4	The figures for the quarter ended March 31, 2020 are the balancing figures between audited figures in respect of the financial year 2019-20 and the published year to date figures upto December 31, 2019.

 

5	During the quarter ended June 30, 2020, the Bank allotted 69,92,100 shares pursuant to the exercise of options under the approved employee stock option schemes.

 

6	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.

 

7

The SARS-CoV-2 virus responsible for COVID-19 continues to spread across the globe and India. On March 11, 2020, the COVID-19 outbreak was declared a global pandemic by the World Health Organization. On March 24, 2020, the Indian government announced a strict 21-day lockdown which was further extended until May 31, 2020 across the country to contain the spread of the virus. On May 30, 2020 the Government announced a phased reopening of certain activities outside specified containment zones, while the lockdown was extended to June 30, 2020 in such containment zones. Some of the states further extended the lockdown to July 31, 2020.

The impact of COVID-19, including changes in customer behavior and pandemic fears, as well as restrictions on business and individual activities, has led to significant volatility in global and Indian financial markets and a significant decrease in global and local economic activity, which may persist even after the restrictions related to the COVID-19 outbreak are lifted. The continued slowdown in economic activity has led to a decrease in loan originations, the sale of third party products, the use of credit and debit cards by customers, the efficiency in collection efforts and waiver of certain fees. The continued slowdown may lead to a rise in the number of customer defaults and consequently an increase in provisions there against.

The extent to which the COVID-19 pandemic will continue to impact the Bank’s results will depend on future developments, which are highly uncertain, including, among other things, any new information concerning the severity of the COVID-19 pandemic and any action to contain its spread or mitigate its impact whether government-mandated or elected by us.

In accordance with the RBI guidelines relating to COVID-19 Regulatory Package guidelines dated March 27, 2020 and April 17, 2020 the Bank has granted a moratorium of three months on the payment of all installments and / or interest, as applicable, due between March 1, 2020 and May 31, 2020 to all eligible borrowers classified as standard, even if overdue, as on February 29, 2020. In line with the additional Regulatory Package guidelines dated May 23, 2020, the Bank granted a second three-month moratorium on installments or interest, as applicable, due between June 1, 2020 and August 31, 2020. For all such accounts where the moratorium is granted, the asset classification shall remain stand still during the moratorium period (i.e. the number of days past-due shall exclude the moratorium period for the purposes of determining whether an asset is non-performing).

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

 

8	Other operating expenses include commission paid to sales agents of ₹ 376.48 crore (previous period: ₹ 719.83 crore) for the quarter ended June 30, 2020.

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

10	₹ 10 lac = ₹ 1 million

₹ 10 million = ₹ 1 crore    

 

Place : Mumbai				Aditya Puri
Date : July 18, 2020				Managing Director

HDFC BANK LIMITED

CIN : L65920MH1994PLC080618

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

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

UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2020

 

				(₹ in lacs)
		Particulars		Quarter ended												Year ended 31.03.2020
				30.06.2020				31.03.2020				30.06.2019
				Unaudited				Audited (Refer note 4)				Unaudited				Audited
1		Interest Earned (a)+(b)+(c)+(d)			3235161				3179505				2917645				12218930
		a) Interest / discount on advances / bills			2597800				2591924				2356050				9907963
		b) Income on Investments			559941				507557				525042				2057273
		c) Interest on balances with Reserve Bank of India and other inter bank funds			64158				64128				18319				186877
		d) Others			13262				15896				18234				66817
2		Other Income			434698				649212				514800				2487898
3		Total Income (1)+(2)			3669859				3828717				3432445				14706828
4		Interest Expended			1560849				1552857				1497715				6213743
5		Operating Expenses (i)+(ii)			740608				886024				759813				3303605
		i) Employees cost			330100				337684				301745				1292013
		ii) Other operating expenses			410508				548340				458068				2011592
6		Total Expenditure (4)+(5) (excluding Provisions and Contingencies)			2301457				2438881				2257528				9517348
7		Operating Profit before Provisions and Contingencies (3)-(6)			1368402				1389836				1174917				5189480
8		Provisions (Other than tax) and Contingencies			434451				421650				291434				1369994
9		Exceptional Items			—				—				—				—
10		Profit / (Loss) from ordinary activities before tax (7)-(8)-(9)			933951				968186				883483				3819486
11		Tax Expense			239863				238515				314403				1089859
12		Net Profit / (Loss) from Ordinary Activities after tax (10)-(11)			694088				729671				569080				2729627
13		Extraordinary items (net of tax expense)			—				—				—				—
14		Net Profit / (Loss) for the period (12)-(13)			694088				729671				569080				2729627
15		Less: Share of Profit / (Loss) of minority shareholders			1364				1649				1474				4231
16		Consolidated Net Profit / (Loss) for the period (14)-(15)			692724				728022				567606				2725396
17		Paid up equity share capital (Face Value of ₹ 1/- each)			54903				54833				54656				54833
18		Reserves excluding revaluation reserves															17581038
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			12.6				13.3				10.4				49.8
		(b) Diluted EPS before & after extraordinary items (net of tax expense) - not annualized			12.6				13.2				10.3				49.5

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

 

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

 

																(₹ in lacs)
				Quarter ended												Year ended 31.03.2020
				30.06.2020				31.03.2020				30.06.2019
Particulars				Unaudited				Audited (Refer note 4)				Unaudited				Audited
1		Segment Revenue
a)		Treasury			800126				690738				629192				2655844
b)		Retail Banking			2710162				2821059				2492929				10799994
c)		Wholesale Banking			1418359				1527601				1505961				6113445
d)		Other Banking Operations			614214				741753				639226				2802822
e)		Unallocated			—				153				66				219
		Total			5542861				5781304				5267374				22372324
		Less: Inter Segment Revenue			1873002				1952587				1834929				7665496
		Income from Operations			3669859				3828717				3432445				14706828
2		Segment Results
a)		Treasury			250517				108230				78153				346277
b)		Retail Banking			222005				266747				306714				1294246
c)		Wholesale Banking			364445				381348				332143				1412109
d)		Other Banking Operations			137552				253286				209772				937233
e)		Unallocated			(40568	)			(41425	)			(43299	)			(170379	)
		Total Profit Before Tax and Minority Interest			933951				968186				883483				3819486
3		Segment Assets
a)		Treasury			46153925				45724091				35599098				45724091
b)		Retail Banking			46899518				48427074				44127240				48427074
c)		Wholesale Banking			54979292				52056701				40735586				52056701
d)		Other Banking Operations			10779377				11081971				10385483				11081971
e)		Unallocated			813123				793204				657548				793204
		Total			159625235				158083041				131504955				158083041
4		Segment Liabilities
a)		Treasury			7798899				10201209				4383589				10201209
b)		Retail Banking			96820706				90725810				76191655				90725810
c)		Wholesale Banking			29166649				31762887				27439197				31762887
d)		Other Banking Operations			5014782				4940224				5018454				4940224
e)		Unallocated			2405425				2759376				2404605				2759376
		Total			141206461				140389506				115437500				140389506
5		Capital Employed
		(Segment Assets - Segment Liabilities)
a)		Treasury			38355026				35522882				31215509				35522882
b)		Retail Banking			(49921188	)			(42298736	)			(32064415	)			(42298736	)
c)		Wholesale Banking			25812643				20293814				13296389				20293814
d)		Other Banking Operations			5764595				6141747				5367029				6141747
e)		Unallocated			(1592302	)			(1966172	)			(1747057	)			(1966172	)
		Total			18418774				17693535				16067455				17693535

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

 

Notes :

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

 

										(₹ in lacs)
Particulars		As at 30.06.2020				As at 30.06.2019				As at 31.03.2020
CAPITAL AND LIABILITIES		Unaudited				Unaudited				Audited
Capital			54903				54656				54833
Reserves and Surplus			18304694				15961900				17581038
Minority Interest			59177				50899				57664
Deposits			118727997				95377430				114620714
Borrowings			15968123				14367983				18683431
Other Liabilities and Provisions			6510341				5692087				7085361
Total			159625235				131504955				158083041
ASSETS
Cash and balances with Reserve Bank of India			9664986				5775699				7221100
Balances with Banks and Money at Call and Short notice			1380416				2751460				1572910
Investments			37725874				29651891				38930495
Advances			105368253				88093871				104367088
Fixed Assets			466205				421257				462685
Other Assets			5019501				4810777				5528763
Total			159625235				131504955				158083041

 

2

The above financial results represent the consolidated financial results for HDFC Bank Limited and its subsidiaries constituting the ‘Group’. These financial results have been approved by the Board of Directors of the Bank at its meeting held on July 18, 2020. The financial results for the quarter ended June 30, 2020 have been subjected to a “Limited Review” by the statutory auditors of the Bank. The report thereon is unmodified.

 

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

 

4	The figures for the quarter ended March 31, 2020 are the balancing figures between audited figures in respect of the financial year 2019-20 and the published year to date figures upto December 31, 2019.

 

5

The SARS-CoV-2 virus responsible for COVID-19 continues to spread across the globe and India. On March 11, 2020, the COVID-19 outbreak was declared a global pandemic by the World Health Organization. On March 24, 2020, the Indian government announced a strict 21-day lockdown which was further extended until May 31, 2020 across the country to contain the spread of the virus. On May 30, 2020 the Government announced a phased reopening of certain activities outside specified containment zones, while the lockdown was extended to June 30, 2020 in such containment zones. Some of the states further extended the lockdown to July 31, 2020.

The impact of COVID-19, including changes in customer behavior and pandemic fears, as well as restrictions on business and individual activities, has led to significant volatility in global and Indian financial markets and a significant decrease in global and local economic activity, which may persist even after the restrictions related to the COVID-19 outbreak are lifted. The continued slowdown in economic activity has led to a decrease in loan originations, the sale of third party products, the use of credit and debit cards by customers, the efficiency in collection efforts and waiver of certain fees. The continued slowdown may lead to a rise in the number of customer defaults and consequently an increase in provisions there against.

The extent to which the COVID-19 pandemic will continue to impact the Bank’s results will depend on future developments, which are highly uncertain, including, among other things, any new information concerning the severity of the COVID-19 pandemic and any action to contain its spread or mitigate its impact whether government-mandated or elected by us.

In accordance with the RBI guidelines relating to COVID-19 Regulatory Package guidelines dated March 27, 2020 and April 17, 2020 the Bank has granted a moratorium of three months on the payment of all installments and / or interest, as applicable, due between March 1, 2020 and May 31, 2020 to all eligible borrowers classified as standard, even if overdue, as on February 29, 2020. In line with the additional Regulatory Package guidelines dated May 23, 2020, the Bank granted a second three-month moratorium on installments or interest, as applicable, due between June 1, 2020 and August 31, 2020. For all such accounts where the moratorium is granted, the asset classification shall remain stand still during the moratorium period (i.e. the number of days past-due shall exclude the moratorium period for the purposes of determining whether an asset is non-performing).

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

 

6

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.

 

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

 

8	₹ 10 lac = ₹ 1 million

₹ 10 million = ₹ 1 crore

 

Place : Mumbai Date : July 18, 2020				Aditya Puri 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, 2020

The Board of Directors of HDFC Bank Limited approved the Bank’s (Indian GAAP) results for the quarter ended June 30, 2020, at their meeting held in Mumbai on Saturday, July 18, 2020. 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, 2020

The Bank’s net revenues (net interest income plus other income) grew to ₹ 19,740.7 crore for the quarter ended June 30, 2020 from ₹ 18,264.5 for the quarter ended June 30, 2019.

Net interest income (interest earned less interest expended) for the quarter ended June 30, 2020 grew by 17.8% to ₹ 15,665.4 crore from ₹ 13,294.3 crore for the quarter ended June 30, 2019, driven by growth in advances of 20.9%, and a growth in deposits of 24.6%. The net interest margin for the quarter was at 4.3%.

Other income (non-interest revenue) at ₹ 4,075.3 crore was 20.6% of the net revenues for the quarter ended June 30, 2020 as against ₹ 4,970.3 crore in the corresponding quarter ended June 30, 2019. The four components of other income for the quarter ended June 30, 2020 were fees & commissions of ₹ 2,230.7 crore (₹ 3,551.6 crore in the corresponding quarter of the previous year), foreign exchange & derivatives revenue of ₹ 436.6 crore (₹ 576.7 crore for the corresponding quarter of the previous year), gain on sale / revaluation of investments of ₹ 1,086.7 crore (gain of ₹ 212.0 crore in the corresponding quarter of the previous year) and miscellaneous income, including recoveries and dividend, of ₹ 321.3 crore (₹ 630.0 crore for the corresponding quarter of the previous year).

The continued slowdown in economic activity has led to a decrease in retail loan origination, sale of third party products, use of credit and debit cards by customers, efficiency in collection efforts and waivers of certain fees. As a result, fees/other income were lower by approximately ₹ 2,000 crore.

		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, 2020 were ₹ 6,911.5 crore, a decrease of 2.9% over ₹ 7,117.3 crore during the corresponding quarter of the previous year. The cost-to-income ratio for the quarter was at 35.0% as against 39.0% for the corresponding quarter ended June 30, 2019. Operating expenses were lower primarily due to lower loan origination and sales volumes.

Pre-provision Operating Profit (PPOP) at ₹ 12,829.3 crore grew by 15.1% over the corresponding quarter of the previous year.

Provisions and contingencies for the quarter ended June 30, 2020 were ₹ 3,891.5 crore (consisting of specific loan loss provisions of ₹ 2,739.8 crore and general provisions and other provisions of ₹ 1,151.7 crore) as against ₹ 2,613.7 crore (consisting of specific loan loss provisions of ₹ 2,248.0 crore and general provisions and other provisions of ₹ 365.7 crore) for the quarter ended June 30, 2019. Total provisions for the current quarter included contingent provisions of approximately ₹ 1,000 crore. The Core Credit Cost ratio was 1.08%, as compared to 0.77% in the quarter ending March 31, 2020 and 1.07% in the quarter ending June 30, 2019.

Profit before tax (PBT) for the quarter ended June 30, 2020 was at ₹ 8,937.8 crore. After providing ₹ 2,279.1 crore for taxation, the Bank earned a net profit of ₹ 6,658.6 crore, an increase of 19.6% over the quarter ended June 30, 2019.

Balance Sheet: As of June 30, 2020

Total balance sheet size as of June 30, 2020 was ₹ 1,545,103 crore as against ₹ 1,265,253 crore as of June 30, 2019, a growth of 22.1%.

Total deposits as of June 30, 2020 were ₹ 1,189,387 crore, an increase of 24.6% over June 30, 2019. CASA deposits grew by 26.0% with savings account deposits at ₹ 327,358 crore and current account deposits at ₹ 150,077 crore. Time deposits were at ₹ 711,952 crore, an increase of 23.7% over the previous year, resulting in CASA deposits comprising 40.1% of total deposits as of June 30, 2020. The Bank’s continued focus on deposits helped in the maintenance of a healthy liquidity coverage ratio at 140%, well above the regulatory requirement.

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

 

Total advances as of June 30, 2020 were ₹ 1,003,299 crore, an increase of 20.9% over June 30, 2019. Domestic advances grew by 21.0% over June 30, 2019. As per regulatory [Basel 2] segment classification, domestic retail loans grew by 7.2% and domestic wholesale loans grew by 37.6%. The domestic loan mix as per Basel 2 classification between retail:wholesale was 48:52. Overseas advances constituted 3% of total advances.

Capital Adequacy:

The Bank’s total Capital Adequacy Ratio (CAR) as per Basel III guidelines was at 18.9% as on June 30, 2020 (16.9% as on June 30, 2019) as against a regulatory requirement of 11.075% which includes Capital Conservation Buffer of 1.875%, and an additional requirement of 0.20% on account of the Bank being identified as a Domestic Systemically Important Bank (D-SIB). Tier 1 CAR was at 17.5% as of June 30, 2020 compared to 15.6% as of June 30, 2019. Common Equity Tier 1 Capital ratio was at 16.7% as of June 30, 2020. Risk-weighted Assets were at ₹ 1,010,774 crore (as against ₹ 965,635 crore as at June 30, 2019).

NETWORK

As of June 30, 2020, the Bank’s distribution network was at 5,326 branches and 14,996 ATMs / Cash Deposit & Withdrawal Machines (CDMs) across 2,825 cities / towns as against 4,990 branches and 13,727 ATMs / CDMs across 2,764 cities / towns as of June 30, 2019. 50% of our branches are in semi-urban and rural areas. In addition, we have 6,546 business correspondents, of which 97% are manned by Common Service Centres (CSC) as against 140 outlets manned by non-CSC business correspondents as of June 30, 2019. Number of employees were at 115,822 as of June 30, 2020 (as against 104,154 as of June 30, 2019).

ASSET QUALITY

Gross non-performing assets were at 1.36% of gross advances as on June 30, 2020, (1.2% excluding NPAs in the agricultural segment) as against 1.26% as on March 31, 2020 (1.1% excluding NPAs in the agricultural segment) and 1.40% as on June 30, 2019 (1.2% excluding NPAs in the agricultural segment). Net non-performing assets were at 0.33% of net advances as on June 30, 2020.

During the quarter, the Bank has used its analytical models to determine slippages, resulting in a more expedited recognition of NPAs, as well as accelerated corresponding specific provisions. The Bank also continues to hold provisions as on June 30, 2020 against the potential impact of COVID-19 based on the information available at this point in time and the same are in excess of the RBI prescribed norms.

		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 ₹ 4,002 crore as on June 30, 2020. Total provisions (comprising specific, floating, contingent and general provisions) were 149% of the gross non-performing loans as on June 30, 2020.

CONSOLIDATED FINANCIAL RESULTS

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.

HDFC Securities Limited (HSL) is amongst the leading retail broking firms in India. As on June 30, 2020, the Bank held 96.5% stake in HSL.

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, 2020, the Bank held 95.3% stake in HDBFSL.

The consolidated net profit for the quarter ended June 30, 2020 was ₹ 6,927 crore, up 22.0%, over the quarter ended June 30, 2019. Consolidated advances grew by 19.6% from ₹ 880,939 crore as on June 30, 2019 to ₹ 1,053,683 crore as on June 30, 2020.

Sd/-

Srinivasan Vaidynathan

Chief Financial Officer

Note:

₹ = Indian Rupees

1 crore = 10 million

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

 

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

BSE: 500180

NSE: HDFCBANK

NYSE: HDB

Certain statements are included in this release which contain words or phrases such as “will,” “aim,” “will likely result,” “believe,” “expect,” “will continue,” “anticipate,” “estimate,” “intend,” “plan,” “contemplate,” “seek to,” “future,” “objective,” “goal,” “project,” “should,” “will pursue” and similar expressions or variations of these expressions, that are “forward-looking statements.” Actual results may differ materially from those suggested by the forward-looking statements due to certain risks or uncertainties associated with our expectations with respect to, but not limited to, our ability to implement our strategy successfully, the market acceptance of and demand for various banking services, future levels of our non-performing loans, our growth and expansion, the adequacy of our allowance for credit and investment losses, technological changes, volatility in investment income, our ability to market new products, cash flow projections, the outcome of any legal, tax or regulatory proceedings in India and in other jurisdictions we are or become a party to, the future impact of new accounting standards, our ability to pay dividends, the impact of changes in banking regulations and other regulatory changes on us in India and other jurisdictions, our ability to roll over our short-term funding sources and our exposure to market and operational risks. By their nature, certain of the market risk disclosures are only estimates and could be materially different from what may actually occur in the future. As a result, actual future gains, losses or impact on net income could materially differ from those that have been estimated. In addition, other factors that could cause actual results to differ materially from those estimated by the forward-looking statements contained in this document include, but are not limited to: general economic and political conditions, instability or uncertainty in India and the other countries which have an impact on our business activities or investments caused by any factor, including terrorist attacks in India, the United States or elsewhere, anti-terrorist or other attacks by the United States, a United States-led coalition or any other country, tensions between India and Pakistan related to the Kashmir region or between India and China, military armament or social unrest in any part of India; the monetary and interest rate policies of the government of India, natural calamities, inflation, deflation, unanticipated turbulence in interest rates, foreign exchange rates, equity prices or other rates or prices; the performance of the financial markets in India and globally, changes in Indian and foreign laws and regulations, including tax, accounting and banking regulations, changes in competition and the pricing environment in India, and regional or general changes in asset valuations.

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:

Ajit Shetty

HDFC Bank Ltd., Mumbai.

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

ajit.shetty@hdfcbank.com