OREANDA-NEWS. October 24, 2012. The Board of Directors of HDFC Bank Limited approved the Bank’s (Indian GAAP) accounts for the quarter and half year ended September 30, 2012, at their meeting held in Mumbai on Friday, October 12, 2012. The results for the quarter ended September 30, 2012, have been subject to a ‘Limited Review’, while those for half year ended September 30, 2012, have been subject to an ‘Audit’ by the statutory auditors of the Bank.

FINANCIAL RESULTS: Profit & Loss Account: Quarter ended September 30, 2012

The Bank’s total income for the quarter ended September 30, 2012, was 9,869.8 crores as against 7,929.4 crores for the quarter ended September 30, 2011. Net revenues (net interest income plus other income) were at 5,076.8 crores for the quarter ended September 30, 2012, an increase of 22.2% over 4,156.2 crores for the corresponding quarter of the previous year. Net interest income (interest earned less interest expended) for the quarter ended September 30, 2012, grew by 26.7% to 3,731.7 crores. This was driven by loan growth of 22.9% and a net interest margin for the quarter of 4.2%.

Other income (non-interest revenue) for the quarter ended September 30, 2012, was 1,345.1 crores as against 1,211.7 crores in the corresponding quarter ended September 30,

2011. The main contributor to other income for the quarter was fees & commissions of 1,209.1 crores, up by 22.4% over 987.9 crores in the corresponding quarter ended September 30, 2011. The two other components of other income were foreign exchange & derivatives revenue of 235.9 crores (' 218.0 crores for the corresponding quarter of the previous year) and loss on revaluation / sale of investments of 105.9 crores (loss of 1.3 crores for the quarter ended September 30, 2011).

Operating expenses for the quarter ended September 30, 2012, were 2,505.5 crores, an increase of 23.4% over the corresponding quarter of the previous year and 3.0% over the preceding quarter ended June 30, 2012. The cost-to-income ratio for the quarter ended September 30, 2012 was 49.4%. With asset quality remaining stable, provisions and

contingencies for the quarter ended September 30, 2012 were 292.9 crores (consisting primarily of specific, general and floating provisions) as against 366.0 crores for the corresponding quarter ended September 30, 2011. After providing 718.4 crores for taxation, the Bank earned a net profit of 1,560.0 crores, an increase of 30.1% over the quarter ended September 30, 2011.

Balance Sheet: As of September 30, 2012

The Bank’s total balance sheet size increased by 19.5% from 315,746 crores as of September 30, 2011, to 377,375 crores as of September 30, 2012. Total net advances as of September 30, 2012, were 231,649 crores, an increase of 22.9% over September 30, 2011. The mix of loans between the retail and wholesale segments was 53:47 as on September 30, 2012. Total deposits were at 274,130 crores, an increase of 18.8% over September 30, 2011. Savings deposits grew 14.7% to 79,151 crores. Net of one-off current account balances, the CASA ratio as at September 30, 2012, was 45.9%.

Half Year ended September 30, 2012:

For the half year ended September 30, 2012, the Bank earned a total income of 19,406.7 crores as against 15,027.4 crores in the corresponding period of the previous year. Net revenues (net interest income plus other income) for the six months ended September 30, 2012, were 10,090.4 crores, as against 8,124.2 crores for the six months ended September 30, 2011, an increase of 24.2%. Net profit for the half year ended September 30, 2012 was 2,977.4 crores, up by 30.3% over the corresponding six months ended September 30, 2011.

Capital Adequacy:

The Bank’s total Capital Adequacy Ratio (CAR) as at September 30, 2012, (computed as per Basel II guidelines) stood at 17.0% as against the regulatory minimum of 9.0%. Tier-I CAR was 11.4% as of September 30, 2012.

Network:

As of September 30, 2012, the Bank’s distribution network was at 2,620 branches and 10,316 ATMs in 1,454 cities as against 2,150 branches and 6,520 ATMs in 1,141 cities as of September 30, 2011.

Asset Quality:

Asset quality remained healthy with gross non-performing assets as on September 30,

2012, at 0.9% of gross advances, and net non-performing assets at 0.2% of net advances as of September 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 82% as on September 30, 2012. Total restructured loans (including applications received and under process for restructuring) were at 0.3% of gross advances as of September 30, 2012.