The Asian Banker Transaction Banking Awards Best Cash Management Bank in India The Asset Triple A Awards India - Best in Treasury and Working Capital - SMEs Financial Highlights 2005-2006 2006-2007 2007-2008 Interest income 4,547.26 7,055.35 10,530.43 Interest expense 1,929.50 3,179.45 4,887.12 Net interest income 2,617.76 3,875.90 5,643.31 Other income 1,237.08 1,679.21 2,495.94 Net revenues 3,854.84 5,555.11 8,139.25 Operating costs 2,116.82 2,975.08 4,311.03 Operating result 1,738.02 2,580.03 3,828.22 Provisions and contingencies 484.51 941.28 1,547.59 Loan loss provisions 484.21 877.13 1,278.84 Others 0.30 64.15 268.75 Profit before tax 1,253.51 1,638.75 2,280.63 Provision for taxation 382.73 497.30 690.45 Profit after tax 870.78 1,141.45 1,590.18 Funds : Deposits 55,796.82 68,297.94 100,768.60 Subordinated debt 1,702.00 3,282.60 3,249.10 Stockholders’ equity 5,299.53 6,433.15 11,497.23 Working funds 73,506.39 91,235.61 133,176.60 Loans 35,061.26 46,944.78 63,426.90 Investments 28,393.96 30,564.80 49,393.54 Key Ratios : Earnings per share (`) * 5.58 7.26 9.24 Return on average networth 17.47% 19.40% 16.05% Tier 1 capital ratio 8.55% 8.58% 10.30% Total capital ratio 11.41% 13.08% 13.60% Dividend per share (`) * 1.10 1.40 1.70 Dividend payout ratio 22.55% 22.92% 22.17% Book value per share as at March 31 (`) * 33.85 40.28 64.88 Market price per share as at March 31 (`) ** 154.85 190.83 266.25 Price to earnings ratio 27.74 26.29 28.80 ` 1 Crore = ` 10 Million * Figures for the years prior to 2011-2012 have been adjusted to reflect the effect of split of equity shares from nominal value of ` 10 each into five equity shares of nominal value of ` 2 each. ** Source : NSE (prices for years prior to 2011-2012 have been divided by five to reflect the sub-division of shares) ***Proposed HDFC Bank Limited Annual Report 2014-15 10 (` crore) 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 16,584.01 16,467.92 20,380.77 27,874.19 35,064.87 41,135.53 48,469.91 8,911.10 7,786.30 9,385.08 14,989.58 19,253.75 22,652.90 26,074.23 7,672.91 8,681.62 10,995.69 12,884.61 15,811.12 18,482.63 22,395.68 3,700.65 4,573.63 4,945.23 5,783.62 6,852.62 7,919.64 8,996.34 11,373.56 13,255.25 15,940.92 18,668.23 22,663.74 26,402.28 31,392.02 5,950.54 6,475.71 7,780.02 9,277.64 11,236.11 12,042.20 13,987.55 5,423.02 6,779.54 8,160.90 9,390.59 11,427.63 14,360.08 17,404.47 2,123.78 2,490.40 2,342.24 1,877.44 1,677.01 1,588.03 2,075.75 1,970.35 2,288.74 1,198.55 1,091.77 1,234.21 1,632.58 1,723.58 153.43 201.66 1,143.69 785.67 442.80 (44.56) 352.17 3,299.24 4,289.14 5,818.66 7,513.15 9,750.62 12,772.05 15,328.72 1,054.31 1,340.44 1,892.26 2,346.08 3,024.34 4,293.67 5,112.80 2,244.93 2,948.70 3,926.40 5,167.07 6,726.28 8,478.38 10,215.92 142,811.58 167,404.44 208,586.41 246,706.45 296,246.98 367,337.48 450,795.65 8,738.58 6,353.10 7,393.05 11,105.65 16,586.75 16,643.05 16,254.90 14,646.33 21,519.58 25,376.35 29,924.37 36,214.15 43,478.63 62,009.42 183,270.77 222,458.57 277,352.59 337,909.50 400,331.90 491,599.50 590,503.08 98,883.05 125,830.59 159,982.67 195,420.03 239,720.64 303,000.27 365,495.04 58,817.55 58,607.62 70,929.37 97,482.91 111,613.60 120,951.07 166,459.96 10.57 13.51 17.00 22.11 28.49 35.47 42.15 16.12% 16.80% 16.52% 18.37% 20.07% 20.88% 20.36% 10.58% 13.26% 12.23% 11.60% 11.08% 11.77% 13.66% 15.69% 17.44% 16.22% 16.52% 16.80% 16.07% 16.79% 2.00 2.40 3.30 4.30 5.50 6.85 8.00 *** 22.17% 21.72% 22.72% 22.70% 22.77% 22.68% 23.62% 68.86 94.02 109.09 127.52 152.20 181.23 247.39 194.68 386.70 469.17 519.85 625.35 748.80 1,022.70 18.42 28.62 27.59 23.51 21.95 21.11 24.26 HDFC Bank Limited Annual Report 2014-15 11 BOARD OF DIRECTORS EXECUTIVE VICE PRESIDENT (LEGAL) & COMPANY SECRETARY Mr. C. M. Vasudev, (Retired w.e.f. close of business hour on 26.08.2014) Mr. Sanjay Dongre Mrs. Shyamala Gopinath, Chairperson (Assumed office w.e.f. 02.01.2015) Mr. A. N. Roy Mr. Bobby Parikh STATUTORY AUDITORS Mr. Keki Mistry Dr. Pandit Palande Mr. Partho Datta Delloitte Haskins & Sells Chartered Accountants Mrs. Renu Karnad Mr. Vijay Merchant (Retired w.e.f. close of business hour on 04.10.2014) Mr. Malay Patel (Appointed as Additional Director on 31.03.2015) Mr. Aditya Puri, Managing Director REGISTERED OFFICE Mr. Paresh Sukthankar, Deputy Managing Director HDFC Bank House, Mr. Kaizad Bharucha, Executive Director Senapati Bapat Marg, Lower Parel, Mumbai 400 013. KEY MANAGERIAL PERSONS Tel: + 91 22 66521000 Mr. Aditya Puri, Managing Director Fax: + 91 22 24960737 Mr. Paresh Sukthankar, Deputy Managing Director Website: www.hdfcbank.com Mr. Kaizad Bharucha, Executive Director Mr. Sashidhar Jagdishan, Chief Financial Officer Mr. Sanjay Dongre, Executive Vice President (Legal) & Company Secretary CORPORATE IDENTIFICATION NO SENIOR MANAGEMENT TEAM CIN - L65920MH1994PLC080618 Mr. A Parthasarthy Mr. Abhay Aima Mr. Anil Jaggia Mr. Anil Nath REGISTRARS & TRANSFER AGENTS Mr. Bhavesh Zaveri Mr. Deepak Maheshwari Datamatics Financial Services Ltd Plot No. B 5, Mr. Jimmy Tata Part B Crosslane, Mr. Navin Puri MIDC, Marol, Andheri (East), Mr. Rahul Bhagat Mumbai 400 093. Mr. Rajender Sehgal Tel: + 91 22 66712213-14 Fax: + 91 22 28213404 Mr. Rakesh Singh E-mail: [email protected] Mr. V Chakrapani HDFC Bank Limited Annual Report 2014-15 12 21st ANNUAL GENERAL MEETING Date : July 21, 2015 Day : Tuesday Time : 2.30 p.m. Place : Birla Matushri Sabhagar, 19, New Marine Lines, Mumbai 400 020 Book Closure for AGM : July 4, 2015 to July 21, 2015 (both days inclusive) Contents Directors’ Report 14 - 61 Independent Auditor's Report 62 - 63 Financial Statements 64 - 131 Basel II - Pillar 3 Disclosures 132 - 165 Independent Auditor's Report for Consolidated Financial Statements 166 - 167 Consolidated Financial Statements 168 - 214 Independent Auditor's Certificate on Corporate Governance 215 Corporate Governance 216 - 231 Shareholder Information 232 HDFC Bank Limited Annual Report 2014-15 13 Directors' Report To the Members, Your Directors take great pleasure in presenting the Twenty First Annual Report on the business and operations of your Bank together with the audited accounts for the year ended March 31, 2015. SUMMARY OF FINANCIAL PERFORMANCE (` crore) For the year ended March 31, 2015 March 31, 2014 Deposits and Other Borrowings 496,009.2 406,776.5 Advances 365,495.0 303,000.3 Total Income 57,466.3 49,055.2 Profit before Depreciation and Tax 15,985.0 13,443.7 Net Profit 10,215.9 8,478.4 Profit brought forward 14,654.2 11,132.2 Total Profit available for Appropriation 24,870.1 19,610.6 Appropriations: Transfer to Statutory Reserve 2,554.0 2,119.6 Transfer to General Reserve 1,021.6 847.8 Transfer to Capital Reserve 224.9 58.3 Transfer to Investment Reserve 27.5 3.2 Proposed Dividend 2,005.2 1,643.4 Tax including Surcharge and Education cess on Dividend 408.2 279.3 Dividend (including tax / cess thereon) pertaining to previous year paid during the year 0.8 4.8 Balance carried over to Balance Sheet 18,627.9 14,654.2 The Bank posted total income and net profit of ` 57,466.3 crore and ` 10,215.9 crore respectively for the financial year ended March 31, 2015 as against ` 49,055.2 crore and ` 8,478.4 crore respectively in the previous year. Appropriations from net profit have been effected as per the table given above. DIVIDEND Your Bank has had a dividend policy that balances the dual objectives of appropriately rewarding shareholders through dividends and retaining capital in order to maintain a healthy capital adequacy ratio to support future growth. It has had a consistent track record of moderate but steady increase in dividend declarations over its history with the dividend payout ratio ranging between 20% and 25%.