OREANDA-NEWS. October 20, 2011. The Board of Directors of HDFC Bank Limited approved the Bank's (Indian GAAP) accounts for the quarter and half year ended September 30, 2011, at its meeting held in Mumbai on Wednesday, October 19, 2011. The results for the quarter ended September 30, 2011, have been subject to a 'Limited Review' while those for the half year ended September 30, 2011, have been subject to an 'Audit' by the statutory auditors of the Bank.

FINANCIAL RESULTS:

Profit & Loss Account: Quarter ended September 30, 2011

For the quarter ended September 30, 2011, the Bank's total income was 7,929.4 crore, an increase of 37.4% over 5,770.7 crore, for the quarter ended September 30, 2010. Net revenues (net interest income plus other income) were 4,156.2 crore for the quarter ended September 30, 2011, as compared to 3,487.0 crore for the corresponding quarter of the previous year. Interest earned (net of loan origination costs and amortization of premia on investments held in the Held to Maturity (HTM) category) increased from 4,810.0 crore in the quarter ended September 30, 2010 to 6,717.7 crore in the quarter ended September 30, 2011. Net interest income (interest earned less interest expended) for the quarter ended September 30, 2011, grew by 16.6% to 2,944.5 crore, driven by the asset growth and a Net Interest Margin (NIM) of 4.1% for the quarter ended September 30, 2011.

Other income (non-interest revenue) for the quarter ended September 30, 2011 increased by 26.1% to 1,211.7 crore. Main contributors of other income were, fees and commissions of 987.9 crores (up 15.3% over 857.0 crore in the quarter ended September 30, 2010), foreign exchange / derivative revenues of 218.0 crore (up 43.1% over 152.3 crore in the quarter ended September 30, 2010) and a small loss on revaluation / sale of investments of 1.3 crore for the quarter ended September 30, 2011 as against a loss of 52.1 crore for the quarter ended September 30, 2010. With an increase in investments in the Bank's branch distribution network and other business verticals, operating expenses for the quarter ended September 30, 2011 grew 20.9% to 2,030.4 crore from 1,679.9 crore in the corresponding quarter of the previous fiscal year. The cost to income ratio for the quarter was therefore at 48.9%. With stable asset quality, provisions and contingencies reduced by 19.5% to 366.0 crore as compared to 454.5 crore for the corresponding quarter of the previous fiscal year. After providing 560.4 crore for

taxation, the Bank earned a Net Profit of 1,199.3 crore, an increase of 31.5% over the corresponding quarter ended September 30, 2010.

Balance Sheet: As of September 30, 2011:

The Bank's total balance sheet size increased to 315,746 crore as of September 30, 2011. Gross advances touched 189,917 crore, a year on year growth of 25.6% adjusted for short-term one off wholesale loans outstanding as of September 30, 2010, and a quarter on quarter increase of 7.3% over June 30, 2011. Gross retail loans grew 34.2% over September 30, 2010 to 92,878 crores. Total deposits were 230,676 crore, up by 18.1% over September 30, 2010 and 9.2% over those at the end of June 30, 2011. Savings account deposits at 69,017 crore increased 15.9% over September 30, 2011, and 6.5% over June 30, 2011. With interest rates on fixed deposits continuing to be at elevated levels in the system, time deposits grew by 26% over September 30, 2010 to 121,491 crore and 13% over June 30, 2011. As a result the CASA mix was 47.3% of total deposits as of September 30, 2011.

Half Year ended September 30, 2011:

For the half year ended September 30, 2011, the Bank earned a total income of 15,027.4 crore as against 11,181.3 crores in the corresponding period of the previous year. Net revenues (net interest income plus other income) for the six months ended September 30, 2011 were 8,124.2 crore, as against 6,878.5 crore for the six months ended September 30, 2010. Net profit for the half year ended September 30, 2011 was 2,284.3 crore, up by 32.5 % over the corresponding six months ended September 30, 2010.

Capital Adequacy:

The Bank's total Capital Adequacy Ratio (CAR) as at September 30, 2011 (computed as per Basel II guidelines) was at 16.5%, as against a regulatory minimum of 9%. Tier I CAR was at 11.4% as of September 30, 2011.

Network

As of September 30, 2011 the Bank's branch network stood at 2,150 branches in 1,141 cities (an increase of 385 branches from 1,765 branches as on September 30, 2010) and 6,520 ATMs, (an increase of 1,799 ATMs from 4,721 as of September 30, 2010).

Asset Quality:

Portfolio quality as of September 30, 2011 remained healthy with gross non-performing assets (NPAs) at 1.0% of gross advances and net non-performing assets at 0.2% of net advances (as against 1.2% gross NPAs and 0.3% net NPA ratios as of September 30, 2010). The Bank's provisioning policies for specific loan loss provisions remained higher than the minimum

regulatory requirements. The NPA provision coverage ratio (excluding write-offs, technical or otherwise) was at 81.3% as of September 30, 2011. Total restructured assets were 0.4% of the Bank's gross advances as of September 30, 2011. Of these, restructured advances categorized as standard assets were 0.1% of the Bank's gross advances.