OREANDA-NEWS. July 23, 2012. The Board of Directors of HDFC Bank Limited approved the Bank's (Indian GAAP) accounts for the quarter ended June 30, 2012, at their meeting held in Mumbai on Friday, July 13, 2012.

FINANCIAL RESULTS:

Profit & Loss Account: Quarter ended June 30, 2012

The Bank's total income for the quarter ended June 30, 2012, was  9,536.9 crores as against  7,098.0 crores for the quarter ended June 30, 2011. Net revenues (net interest income plus other income) were at  5,013.5 crores for the quarter ended June 30, 2012, an increase of 26.3% over  3,968.0 crores for the corresponding quarter of the previous year. Net interest income (interest earned less interest expended) for the quarter ended June 30, 2012, grew by 22.3% to  3,484.1 crores. This was driven by loan growth of 21.5% and a net interest margin for the quarter of 4.3%.

Other income (non-interest revenue) for the quarter ended June 30, 2012, was  1,529.5 crores, up 36.6% over that in the corresponding quarter ended June 30, 2011. The main contributor to other income for the quarter was fees & commissions of  1,143.3 crores, up by 23.9% over  922.7 crores in the corresponding quarter ended June 30, 2011. The two other components of other income were foreign exchange & derivatives revenue of  314.8 crores ( 230.1 crores for the corresponding quarter of the previous year) and profit on revaluation / sale of investments of  66.5 crores (loss of  41.3 crores for the quarter ended June 30, 2011).

Operating expenses for the quarter ended June 30, 2012, were  2,432.6 crores, an increase of 25.7% over  1,934.6 crores during the corresponding quarter of the previous year. The core cost-to-income ratio for the quarter was, therefore, at 49.2% as against 48.3% for the corresponding quarter ended June 30, 2011. Provisions and contingencies were  487.3 crores (including specific, general and floating provisions of  474.8 crores) for the quarter ended June 30, 2012, as against  443.7 crores for the corresponding quarter ended June 30, 2011. After

providing  676.2 crores for taxation, the Bank earned a net profit of  1,417.4 crores, an increase of 30.6% over the quarter ended June 30, 2011.

Balance Sheet: As of June 30, 2012

The Bank's total balance sheet size increased by 25.9% from  285,942 crores as of June 30, 2011, to  360,001 crores as of June 30, 2012. Total net advances as of June 30, 2012, were  213,338 crores, an increase of 21.5% over June 30, 2011. The mix of loans between the retail and wholesale segments was 52:48 as on June 30, 2012, as against 54:46 as on March 31, 2012. Total deposits were at  257,531 crores, an increase of 22.0% over June 30, 2011. Savings deposits grew 18.4% to  76,674 crores and current deposits grew 7.4% to  41,682 crores. With the term deposits growth at 29.4%, the CASA ratio was at 46.0% of total deposits as at June 30, 2012.

Capital Adequacy:

The Bank's total Capital Adequacy Ratio (CAR) as at June 30, 2012, (computed as per Basel II guidelines) stood at 15.5% as against the regulatory minimum of 9.0%. Tier-I CAR was 10.9% as of June 30, 2012.

NETWORK

As of June 30, 2012, the Bank's distribution network was at 2,564 branches and 9,709 ATMs in 1,416 cities as against 2,111 branches and 5,998 ATMs in 1,111 cities as of June 30, 2011.

ASSET QUALITY

Asset quality remained healthy and stable with gross non-performing assets as on June 30, 2012, at 1.0% of gross advances, and net non-performing assets at 0.2% of net advances as of June 30, 2012. The Bank's provisioning policies for specific loan loss provisions remained higher than regulatory requirements. The NPA coverage ratio based on specific provisions (not including write-offs, technical or otherwise) was at 81% as on June 30, 2012. Total restructured loans (including applications received and under process for restructuring) were at 0.3% of gross advances as of June 30, 2012.