OREANDA-NEWS. The Board of Directors of HDFC Bank Limited approved the Bank’s (Indian GAAP) accounts for the quarter and the year ended March 31, 2013, at their meeting held in Mumbai on Tuesday, April 23, 2013. Both the quarterly and annual accounts have been audited by the statutory auditors of the bank.

Certain line items of the financial statements have been reclassified pursuant to RBI’s instructions received in March 2013. Figures for the previous periods have accordingly been regrouped / reclassified to conform to the current period's classification. These changes in classifications have no impact on the profit and loss of the Bank. For further details, please refer to Notes 5 and 6 of the Financial Results.

FINANCIAL RESULTS: Profit & Loss Account: Quarter ended March 31, 2013

The Bank’s total income for the quarter ended March 31, 2013, was 11,127.5 crores, an increase of 21.1% over 9,189.9 crores, for the quarter ended March 31, 2012. Net revenues (net interest income plus other income) were at 6,098.9 crores for the quarter ended March 31, 2013 as against 5,190.2 crores for the corresponding quarter of the previous year. Net interest income (interest earned less interest expended) for the quarter ended March 31, 2013 grew by 20.6% to 4,295.3 crores as against 3,561.3 crores for the quarter ended March 31, 2012. This was driven by loan growth of 22.7% and a core net interest margin for the quarter of 4.5%. The core net interest margin for the corresponding quarter of the previous year was 4.4% and 4.3% for the quarter ended December 31, 2012. (The core net interest margin would have been at 4.3% for the quarter ended March 31, 2013 as per the erstwhile classification prior to the changes made during the quarter, as against a core net interest margin of 4.2% for the quarter ended March 31, 2012 and 4.1% for the quarter ended December 31, 2012.)

Other income (non-interest revenue) was 29.6% of the net revenues for the quarter ended March 31, 2013 at 1,803.6 crores as against 1,628.9 in the corresponding quarter ended March 31, 2012. The four components of other income for the quarter ended March

31, 2013 were fees & commissions of 1,382.6 crores (' 1,247.3 crores in the corresponding quarter of the previous year), foreign exchange & derivatives revenue of 201.4 crores (' 325.2 crores for the corresponding quarter of the previous year), gain on revaluation / sale of investments of 64.9 crores (loss of 71.5 crores for the quarter ended March 31, 2012) and miscellaneous income including recoveries of 154.7 crores (' 127.9 crores for the corresponding quarter of the previous year).

Operating expenses for the quarter were 3,136.2 crores, an increase of 17.7% over 2,663.7 crores during the corresponding quarter of the previous year. The cost-to-income ratio for the quarter was at 51.4% as against 51.3% for the corresponding quarter ended March 31, 2012. (The cost to income ratio would have been at 50.6% for the quarter ended March 31, 2013 and 50.6% for the quarter ended March 31, 2012, as per the erstwhile classification prior to the changes made during the quarter).

Reflecting the stable asset quality provisions and contingencies were 300.5 crores (consisting of specific loan loss, general and floating provisions) for the quarter ended March 31, 2013 as against 411.6 crores for the corresponding quarter ended March 31, 2012. The Bank earned a net profit of 1,889.8 crores, an increase of 30.1% over the quarter ended March 31, 2012.

Profit & Loss Account: Year ended March 31, 2013

For the year ended March 31, 2013, the Bank earned total income of 41,917.5 crores. Net revenues for the year ended March 31, 2013 were 22,663.7 crores, up by 21.4% over 18,668.2 crores for the year ended March 31, 2012. For the year ended March 31, 2013, the net interest margin was 4.5% as against 4.4% for the year ended March 31, 2012. Cost to income ratio was at 49.6% for the year ended March 31, 2013, as against 49.7% for the previous year. The cost to income ratio reflects the investment and related expenses incurred by the bank for new branches and the rolling out of various products in rural markets, in respect of which the operating leverage is yet to kick in. (The net interest margin for the current year would have been at 4.3% as per the erstwhile classification, as against a net interest margin of 4.2% for the previous year. The cost to income ratio would have been at 48.6% for the current year as against 49.0% for the previous year as per the erstwhile classification.)

The Bank’s net profit for year ended March 31, 2013 was 6,726.3 crores, up 30.2%, over the year ended March 31, 2012. Consolidated net profit of the Bank increased by 30.9 % to 6,869.6 crores for the year ended March 31, 2013.

Balance Sheet: As of March 31, 2013

The Bank’s total balance sheet size increased by 18.5% to 400,332 crores as of March 31, 2013 from 337,909 crores as of March 31, 2012. Total net advances as of March 31, 2013 were 239,721 crores, an increase of 22.7% over March 31, 2012. Total deposits were 296,247 crores, an increase of 20.1% over March 31, 2012. Savings account deposits grew 19.2% over the previous year to reach 88,211 crores and current account deposits grew 15.2% to reach 52,310 crores. The CASA ratio increased from 45.4% as on December 31, 2012 to 47.4% as on March 31, 2013.

Capital Adequacy:

The Bank’s total Capital Adequacy Ratio (CAR) as at March 31, 2013 (computed as per Basel II guidelines) stood at 16.8% as against 16.5% as of March 31, 2012 and against the regulatory minimum of 9.0%. Tier-I CAR was 11.1% as of March 31, 2013. During the year 3.27 crore shares were allotted by the Bank on exercise of options granted earlier under various employee stock option plans. As a result, equity share capital increased by 6.55 crores and reserves (share premium) by 1,088.7 crores.

DIVIDEND

The Board of Directors recommended a dividend of 5.5 per equity share of 2 for the year ended March 31, 2013, as against 4.3 per equity share of 2 for the previous year. This would be subject to approval by the shareholders at the next annual general meeting.

NETWORK

As of March 31, 2013, the Bank’s distribution network was at 3,062 branches and 10,743 ATMs in 1,845 cities / towns as against 2,544 branches and 8,913 ATMs in 1,399 cities / towns as of March 31, 2012. The increase of 518 branches during the year includes 193 micro branches which are primarily two member branches to expand and deepen the penetration in rural markets including in unbanked areas.

ASSET QUALITY

Asset quality was healthy with gross non-performing assets (NPAs) at 0.97% of gross advances as on March 31, 2013, as against 1.02% of gross advances as on March 31, 2012 and 1.00% of gross advances as on December 31, 2012. Net non-performing assets remained at 0.2% of net advances as on March 31, 2013. The Bank’s provisioning policies for specific

loan loss provisions remained higher than regulatory requirements. The NPA provision coverage ratio based only on specific provisions (not including write-offs, technical or otherwise) was at 80 % as on March 31, 2013. The total floating provision stood at 1,835 crores as of March 31, 2013, as against 1,435 crores as at March 31, 2012. Total restructured loans (including applications received and under process for restructuring) were at 0.2% of gross advances as of March 31, 2013 as against 0.4% as of March 31, 2012.