Fundamental Analysis- HDFC Bank

Fundamental Analysis
HDFC Bank
projected by:
Srishti Gupta

1 Fundamental Analysis: HDFC Bank
A PROJECT ON
Fundamental Analysis on HDFC
In The Subject
Fundamental Analysis
Submitted By
Srishti Gupta
A023
NSE (NCCMP)
Under The Guidance Of
Prof. Bharat Pithadia
To
National Stock Exchange
In
NCCMP
Year: 2015-16
SVKM’S
NARSEE MONJEE COLLEGE OF COMMERCE &ECONOMICS
VILE PARLE (W), MUMBAI – 400056.

EVALUATION CERTIFICATE
This is to certify that the undersigned have assessed and evaluated the project on
“Fundamental Analysis on HDFC” submitted by Srishti Gupta student of NSE (NCCMP)
for the academic year 2015-16. This project is original to the best of our knowledge and has
been accepted for Internal Assessment.
Name & Signature of Internal Examiner: ______________________________
______________________________
Amee Vora
Principal

DECLARATION BY THE STUDENT
I, Srishti Gupta student of NSE (NCCMP), Roll No.: A023, hereby declare that the project
titled “Fundamental Analysis on HDFC ” for the subject NCCMP submitted by me for the
academic year 2015-16, is based on actual work carried out by me under the guidance and
supervision of Prof. Bharat Pithadia. I further state that this work is original and not
submitted anywhere else for any examination.
Place: Mumbai
Date: 14th
Jan, 2016
Name & Signature of Student
Name: Srishti Gupta
Signature: _________________

ACKNOWLEDGEMENT
Projects have always been fun Learning experience, but with growing age, at this
Professtional Level, it surely demands Corporate and Depth Approach.
This project was a great learning experience and I take this opportunity to acknowledge all
those who gave me their invaluable guidance and inspiration provided to me during the
course of this project by my guide.
I would like to thank Mr Bharat Pithadia - Professor of fundamental Analysis.
I would also thank the NSE Department of Narsee Monjee College of Commerce &
Economics who gave me this opportunity to work on this project which provided me with a
lot of insight and knowledge of my current curriculum and industry as well as practical
knowledge.
Would sincerely thank our coordinator Mr. Harish Sharma for constant guidance over the
projects and curriculums.
I would also like to thank the library staff of Narsee Monjee College of Commerce &
Economics for equipping me with the books, journals and magazines for this project.
I would also like to thank my friends and fellow students who helped me in the cause of the
project.

SERIAL
NUMBER
CONTENTS PAGE
NUMBER
1 COMPANY FACTS 6-8
2 COMPANY OVERVIEW 9
3 PART1: MACRO ECONOMIC OUTLOOK 10-12
4 PART2: INDUSTRY ANALYSIS 13-16
5 PART3: COMPANY ANALYSIS 17-18
6 FINANCIALS 19 ONWARDS

Company Facts - HDFC Bank
Registered Address
HDFC Bank House,
Senapati Bapat Marg,, Lower Parel
Mumbai
Maharashtra
400013
Tel: 022-66521000 022-24988484
Fax: 022-24960737 022-24965235
Email: shareholder.grievances@hdfcbank.com
Website: http://www.hdfcbank.com
Group: HDFC Group
Registrars
Datamatics Financial Services Ltd. Plot No. B 5, MIDC,
Part B Cross Lane
Marol, Andheri (E) Mumbai - 400093
Maharashtra
Tel: 022-28213383 - 90
Management - HDFC Bank
Name Designation
Shyamala Gopinath Chairperson
Paresh Sukthankar Deputy Managing Director
A N Roy Director
Keki Mistry Director
Renu Karnad Director
Name Designation

Aditya Puri Managing Director
Kaizad Bharucha Executive Director
Bobby Parikh Director
Partho Datta Director
Malay Patel Additional Director
Company Background - HDFC Bank
Industry Name Finance - Banks - Private Sector
House Name HDFC Group
Collaborative Country Name N.A.
Joint Sector Name N.A.
Year Of Incorporation 1994
Year Of Commercial Production N.A.
Regd. Office
Address HDFC Bank House,, Senapati Bapat Marg,
District Mumbai
State Maharashtra
Pin Code 400013
Tel. No. 022-66521000,022-24988484
Fax No. 022-24960737,022-24965235
Email : shareholder.grievances@hdfcbank.com Internet : http://www.hdfcbank.com
Auditors
Deloitte Haskins & Sells
Company Status
N.A.
Registrars
Name Datamatics Financial Services Ltd.
Address Plot No. B-5, MIDC, Part B Cross Lane, Andheri (E), Mumbai - 400093, Maharashtra

Tel. No. : 022-66712151 - 160 Fax No. : 022-66712230
Email : Investorsqry@dfssl.com Internet : http://www.dfssl.com
Listing Details - HDFC Bank
Key Dates
Year Ending Month Mar
AGM Date (Month) Jul
Book Closure Date (Month) Jul
Listing Information
Face Value Of Equity Shares 2
Market Lot Of Equity Shares 1
BSE Code 500180
NSE Code HDFCBANK
BSE Group A
Whether The Company Forms A Part Of The Following Indices -
Sensex Yes
Nifty Yes
BSE-100 Yes
BSE-200 Yes
S&P CNX 500 Yes
CNX Midcap No
CNX FMCG No
Listing On
Listed On
The Stock Exchange, Mumbai, National Stock
Exchange of India Ltd., Newyork Stock Exchange

COMPANY OVERVIEW:
HDFC Bank Limited is an Indian banking and financial services company headquartered in Mumbai,
Maharashtra. Incorporated in 1994, it is the second largest bank in India as measured by assets. It is the
largest private sector bank in India by market capitalization as of December 2015, at approximately
Rs.2,67,293.02 crores. According to the Brand Trust Report 2015, HDFC was ranked 58th among India's
most trusted brands.
As of 31 March 2015, the bank had assets of Rs.5,90,503.07. For the fiscal year 2014-15, it reported net
profit of Rs.10215.92 crores.
HDFC Bank is among the top 50 most valued global bank in terms of market capitalization. It is India’s
second-largest private lender in terms of asset size,
ranks 45th, with a market capitalisation of
$39 billion, Bloomberg data show.
Mr. Aditya Puri is the Managing Director of HDFC Bank, and has held this position since 1994. He was
recently named in the Barron’s list of Best 30 CEOs and business leader of the year by AIMA.
HISTORY
In August 1994, ‘HDFC Bank Limited’ was incorporated, with its registered office in Mumbai, India. It
commenced operations as a Scheduled Commercial Bank on 5 January 1995 after receiving banking
license. The bank also entered into strategic alliance with National Westminster Bank group.
The bank was promoted by Housing Development Finance Corporation, a premier housing finance
company (set up in 1977) of India. HDFC was amongst the first to receive an ‘in principle’ approval from
the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of RBI’s liberalisation of the
Indian Banking Industry in 1994. HDFC Bank’s first corporate office and a full service Branch at Sandoz
House, Worli was inaugurated by the then Union Finance Minister, Dr. Manmohan Singh.
On March 14, 1995, HDFC Bank went public with the launch of its IPO.

PART 1: MACRO ECONOMIC OUTLOOK
Macro-economic Issues Concerning Banking
Since mid-July, the RBI has put in place a number of exceptional measures to tighten
liquidity with a view to dampening volatility in the foreign exchange market. These measures
have raised the effective policy rate for monetary policy operations to 10.25 per cent, aligned
to the re-calibrated MSF rate. The intent has been to maintain tight liquidity conditions at the
short end of the term structure until the measures designed to alter the path of the CAD and
improve prospects for its stable funding take effect. As a number of these measures are now
in place and because the external environment has improved, it is now possible for the RBI to
contemplate easing these exceptional measures in a calibrated manner. As a first step,
therefore, the MSF rate was reduced by 75 basis points. Furthermore, the minimum daily
maintenance of the CRR prescribed by the RBI was brought down as mentioned earlier. The
timing and direction of further actions on exceptional measures will be contingent upon
exchange market stability, and can be two-way. As the measures are unwound, the objective
of the RBI would be to normalise the conduct and operations of monetary policy so as to
allow the LAF repo rate to resume its role as the operational policy interest rate. However,
inflation is high and household financial saving is lower than desirable. As the inflationary
consequences of exchange rate depreciation and hitherto suppressed inflation play out, they
will offset some of the disinflationary effects of a better harvest and the negative output gap.
In the current scenario, banks are constantly pushing the frontiers of risk management.
Compulsions arising out of increasing competition, as well as agency problems between
management, owners and other stakeholders are inducing banks to look at newer avenues to
augment revenues, while trimming costs. Consolidation, competition and risk management
are no doubt critical to the future of banking but it is believed that governance and financial
inclusion would also emerge as the key issues for a country like India, at this stage of socio-
economic development. As a step towards technical environment that affects banking sector
in our country, we need to have a look at Porter’s Five Forces Model. The diagrammatic
representation of the model is as follows:-

Threat of New Entrants. As part of on-going banking sector reforms, new licenses would be
issued to a few new players shortly. And yet the fact remains that anyone and everyone
cannot start up a bank. Nevertheless, there are services, such as internet bill payment, on
which entrepreneurs can capitalise. Banks are fearful of being squeezed out of the payments
business, because it is a good source of feebased revenue. Another drift that poses a threat is
companies offering other financial services eg an insurance company offering mortgage and
loan services. As far as regional banks are concerned, the possibility of a mega bank entering
into the market poses a real threat.
Power of Suppliers. The providers of capital might not posture a gigantic hazard, but the
threat of suppliers luring away human capital does. Retention of talent becomes difficult in a
situation wherein a talented individual working in a smaller regional bank, may be stolen
away by bigger banks, investment firms, etc.
Power of Buyers. One single retail customer may not really pose much of a threat to the
banking industry, but one major factor affecting the power of buyers is relatively high
switching costs. If a person has a mortgage, car loan, credit card, checking account and
mutual funds with one particular bank, it can be extremely tough for that person to switch to
another bank. In an attempt to lure in customers, banks try to lower the price of switching, but

many people would still rather stick with their current bank. On the other hand, large
corporate clients have banks running after them, offering innovative plans and schemes.
Financial institutions - by offering better exchange rates, more services, and exposure to
foreign capital markets - work extremely hard to get high-margin corporate customers.
Availability of Substitutes. Our market, as is well known, has a parallel economy based on
black money and grey operators. Even if, for a moment, we discard such realities, there
would still be plenty of substitutes in the banking industry. Banks offer a suite of services
over and above taking deposits and lending money, but whether it is insurance, mutual funds
or fixed income securities, chances are there is a non-banking financial services company that
can offer similar services. On the lending side of the business, banks are seeing competition
rise from unconventional companies that offer preferred financing to customers who buy big
items. If a company is offering 0% financing, why would anyone want to get a loan from the
bank for the same commodity and pay expensive interest?
Competitive Rivalry. The banking sector is highly competitive. The financial services
industry has been around for a good amount of time and simply put across, anyone and
everyone who needs banking services, already has the access to such services. Banks,
therefore, have no choice but to make attempts to lure clients away from their competitors. A
bank may do so by offering lower financing, preferred rates and investment services but such
an action may cause banks to experience pretty lower profit margins. In such a scenario,
concerned bank(s) have an incentive to take on high-risk projects. In the long run, we're
likely to see more consolidation in the banking industry. Big fish may, logically, prefer to
digest smaller fish rather than spending or cutting on own margins. The Indian banking sector
is linked to the world economy but the Indian banking system has had no direct exposure to
the sub-prime mortgage assets or to the failed institutions. It has very limited off-balance
sheet activities or securitized assets. In fact, our banks continue to remain safe and healthy.
The Indian banking sector has been well shielded by the central bank and has managed to sail
through most of the crisis with relative ease. It is hoped that the trend would continue for a
foreseeable future.

PART 2- INDUSTRY ANALYSIS: BANKING INDUSTRY IN INDIA
Introduction
Banking in India is the salvation of the nation and its people. Banking has helped in
developing the dynamic sectors of the economy and guide in a new dawn of development on
the horizon. The sector has transformed the aspirations of millions of people into reality. As
on date, Indian banks do assuredly compete with modern banks of the world. The progression
in the Indian Banking Industry has been more qualitative than quantitative and it is
anticipated to remain the same in the coming years. As per the projections made in the "India
Vision 2020" of Planning Commission and the Draft 1 2th Plan, the pace of enlargement in
the balance-sheets of banks is likely to decelerate in coming years. The total assets of all
scheduled commercial banks by end-March 201 4 is estimated at Rs 50,75,000 crores. Bank
assets are expected to grow at an annual composite rate of 13.4 per cent during the 2012-2017
as against the growth rate of 16.7 per cent that existed between 1994-95 and 2002-03. It is
expected that there will be large additions to the capital base and reserves on the liability side.
The recent observations on NPAs have also not been too healthy either.
Place Under Sun
The Public Sector Banks form the base of the banking sector in the country and account for
almost 80 per cent of the total banking industry assets. However, as hinted earlier, most of
such banks have huge NPAs, too much or massive manpower and lack of modern technology.
On the other hand the Private Sector Banks are making marvellous progress. They are front-
runners in Internet banking, mobile banking, phone banking as also ATMs. As far as foreign
banks are concerned they are likely to succeed in the Indian Banking Industry. The banking
industry is presently in a changeover phase. On the one hand, the PSBs are in the process of
detaching their corpulence in terms of unwarranted manpower, excessive NPas and
disproportionate governmental equity, while on the other hand the private sector banks are
consolidating themselves through M&As. At the same time, the economic and corporate
sector slowdown has led to an increasing number of banks fixing on the retail sector. Many of
them are also entering the new scenes of insurance. Banks with their impressive reach and a
regular interface with the retail investor are the best placed to enter into the insurance sector.
Banks have been allowed to provide fee-based insurance services without risk participation,
invest in an insurance company for providing infrastructure and services support and set up of

a separate joint venture insurance company with risk participation. The process of granting
new licenses is going on as on date and even foreign banks have been given options to
participate through Indian entities. The RBI has been affecting bank rate and CRR cuts at
regular intervals to improve liquidity and reduce rates. One of the exception was in recent
months (mid 2013) when the RBI modified the CRR norms to stem the fall in the Rupee
against the Dollar. The recent interest hikes (September 2013) would aid banks that have
been facing heat since slide of Rupee began earlier this year.
The Road Ahead
‘India Vision 2020’ envisages refining the position of India from the present 11th to 4th
among 207 countries given in the World Development Report in terms of the Gross Domestic
Product (GDP). It also envisions moving the country from a lowincome nation to an upper
middle-income country. To achieve this objective, the India Vision aims to have an annual
growth in the GDP of 8.5 per cent to 9 per cent over the next 1 0 years. Economic
development of this scale would see quadrupling of real per capita income. When compared
with the growth in GDP of less than 6% as of now, this is an ambitious target. This would
call for substantial investments in the infrastructure and meeting the funding requirements of
a high magnitude would be a challenge to the banking and financial system. The skill of the
financial system in its present structure to make available investible capitals to the potential
investors in the forms and tones that will be required by them in the coming years, that is, as
equity, long term debt and medium and short-term debt would be critical to the achievement
of plan objectives. The gap in demand and supply of resources in different segments of the
financial markets has to be met and for this, level flow of funds between various types of
financial institutions and instruments would need to be enabled.
Productivity and Efficiency
In the month of August 2013, RBI’s Deputy Governor, during his address in an industry
organised event (FIBAC 2013) tried to spell out the productivity and efficiency of banking
sector and related challenges. The text ahead is based on the above mentioned address.
Investopedia defines productivity as an economic measure of output per unit of input. The
concept of productivity is more easily applied to industrial settings while it is more difficult

to define and measure in the context of services sector, including the banking industry. One
has to rely upon proxies to gauge productivity of banks and there is no single measure that
has been universally accepted as representing banking productivity. It is common to see the
terms ‘productivity’ and ‘efficiency’ being used interchangeably in literature. However,
productivity is more a measure of performance of labour, which is one of the factors of
production. Efficiency, on the other hand, is a much broader term which represents the
performance of all factors of production. In case of banks, while productivity measures the
performance of their staff, efficiency represents the combined performance of staff, capital
and management. However, it needs to be noted that there are strong inter-linkages between
the performance of the three factors of production: high productivity of staff will result in
efficient utilization of capital, while an efficient management function would result in
superior performance by labour and capital. It would, therefore, be safe to conclude that when
all the key inputs are optimally deployed, the outcome will be an ‘efficient’ bank. Banks form
the core of a nation’s financial system, performing the vital function of financial
intermediation through liquidity, maturity and risk transformation. Finance is the lifeline of
any commercial activity and banks act as a link between the savers and the borrowers. The
productivity and efficiency of banks, thus, critically impacts the productivity and efficiency
of all economic activity and is a matter of concern for policy makers and economy watchers.
The Indian banking system has seen important productivity improvements over the last two
decades with the PSBs, in particular, bridging the gap with new private banks and foreign
banks. However, the pace of progress has declined, largely due to lack of desired impetus.
India continues to lag behind several other countries on various productivity parameters.
Banks’ gains in operational efficiency have, however, come at the cost of their allocational
efficiency. The improved operational efficiency has been a result of technological progress
and structural changes in balance sheet towards more wholesale business. The operational
efficiency gains, though profitable for the banks, have not had the desired beneficial impact
on the society as a whole, particularly the rural areas, individuals and small businesses. It is
not wrong to say that the vulnerability of the banking system has increased on account of the
imbalances arising from growth in operational efficiency without commensurate rise in
allocational efficiency. Both Reserve Bank of India and Government of India have initiated
several corrective measures to reverse this trend by actively promoting the programme of
financial inclusion. Banks have to ensure that they attain greater allocational efficiency by
extending access to financial services to the unbanked masses and providing the excluded
poor the opportunity to leverage the financial system to improve their economic condition.

True productivity of the banking system can be judged not just by the positive impact on
banks’ own financials but by the impact it has on the lives of ordinary citizens.
In a Nutshell
It is true that banks have been under tremendous pressure, especially during the present fiscal.
It is wrong to see such a trend in isolation as a host of factors have been contributing to such
a trend. With new RBI Governor at the helm of affairs, banking industry is optimistic even
though the pressure would continue for a while. Even though SBI remains the biggest of all,
banks like HDFC and AXIS Bank have been successful in leading with their operational
efficiencies and resultant productivity. The future that envisages growth of the nation, cannot
ignore a parallel growth of banking sector and that being something inevitable, future looks
bright for the industry despite present hiccups and glitches.

PART 3: COMPANY ANALYSIS AND FINANCIAL HEALTH
PROMOTER
HDFC is India's premier housing finance company and enjoys an impeccable track record in
India as well as in international markets. Since its inception in 1977, the Corporation has
maintained a consistent and healthy growth in its operations to remain the market leader in
mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC
has developed significant expertise in retail mortgage loans to different market segments and
also has a large corporate client base for its housing related credit facilities. With its
experience in the financial markets, strong market reputation, large shareholder base and
unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian
environment.
Management
Business focus
HDFC Bank's mission is to be a World Class Indian Bank. The objective is to build sound
customer franchises across distinct businesses so as to be the preferred provider of banking
services for target retail and wholesale customer segments, and to achieve healthy growth in
profitability, consistent with the bank's risk appetite. The bank is committed to maintain the
highest level of ethical standards, professional integrity, corporate governance and regulatory
compliance. HDFC Bank’s business philosophy is based on five core values: Operational
Excellence, Customer Focus, Product Leadership, People and Sustainability.
Capital structure
As on 31st March, 2015 the authorized share capital of the Bank is Rs. 550 crore. The paid-
up share capital of the Bank as on the said date is Rs 501,29,90,634/- ( 2506495317 ) equity
shares of Rs. 2/- each). The HDFC Group holds 21.67 % of the Bank's equity and about 18.87
% of the equity is held by the ADS / GDR Depositories (in respect of the bank's American
Depository Shares (ADS) and Global Depository Receipts (GDR) Issues). 32.57 % of the
equity is held by Foreign Institutional Investors (FIIs) and the Bank has 4,41,457
shareholders.
The shares are listed on the Bombay Stock Exchange Limited and The National Stock

Exchange of India Limited. The Bank's American Depository Shares (ADS) are listed on the
New York Stock Exchange (NYSE) under the symbol 'HDB' and the Bank's Global
Depository Receipts (GDRs) are listed on Luxembourg Stock Exchange under ISIN No
US40415F2002.
Distribution network
HDFC Bank is headquartered in Mumbai. As of June 30, 2015, the Bank’s distribution
network was at 4,101 branches. All branches are linked on an online real-time basis.
Customers across India are also serviced through multiple delivery channels such as Phone
Banking, Net Banking, Mobile Banking and SMS based banking. The Bank’s expansion
plans take into account the need to have a presence in all major industrial and commercial
centres, where its corporate customers are located, as well as the need to build a strong retail
customer base for both deposits and loan products. Being a clearing / settlement bank to
various leading stock exchanges, the Bank has branches in centres where the NSE / BSE have
a strong and active member base.
The Bank also has a network of 11,962 ATMs across India. HDFC Bank’s ATM network can
be accessed by all domestic and international Visa / MasterCard, Visa Electron / Maestro,
Plus / Cirrus and American Express Credit / Charge cardholders

FINANCIALS
Balance sheet (in crores)
Mar '15 Mar '14 Mar '13 Mar '12 Mar '11
12 mths 12 mths 12 mths 12 mths 12 mths
Capital and Liabilities:
Total Share Capital 501.30 479.81 475.88 469.34 465.23
Equity Share Capital 501.30 479.81 475.88 469.34 465.23
Share Application Money 0.00 0.00 0.00 0.30 2.91
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves 61,508.12 42,998.82 35,738.26 29,455.04 24,911.13
Net Worth 62,009.42 43,478.63 36,214.14 29,924.68 25,379.27
Deposits 450,795.64 367,337.48 296,246.98 246,706.45 208,586.41
Borrowings 45,213.56 39,438.99 33,006.60 23,846.51 14,394.06
Total Debt 496,009.20 406,776.47 329,253.58 270,552.96 222,980.47
Other Liabilities & Provisions 32,484.46 41,344.40 34,864.17 37,431.87 28,992.86
Total Liabilities 590,503.08 491,599.50 400,331.89 337,909.51 277,352.60
Assets
Cash & Balances with RBI 27,510.45 25,345.63 14,627.40 14,991.09 25,100.82
Balance with Banks, Money at Call 8,821.00 14,238.01 12,652.77 5,946.63 4,568.02
Advances 365,495.03 303,000.27 239,720.64 195,420.03 159,982.67
Investments 166,459.95 120,951.07 111,613.60 97,482.91 70,929.37
Gross Block 3,121.73 2,939.92 2,703.08 2,347.19 2,170.65
Revaluation Reserves 0.00 0.00 0.00 0.00 0.00
Accumulated Depreciation 0.00 0.00 0.00 0.00 0.00
Net Block 3,121.73 2,939.92 2,703.08 2,347.19 2,170.65
Capital Work In Progress 0.00 0.00 0.00 0.00 0.00
Other Assets 19,094.91 25,124.60 19,014.41 21,721.64 14,601.08
Total Assets 590,503.07 491,599.50 400,331.90 337,909.49 277,352.61
Contingent Liabilities 997,538.88 744,097.98 746,226.39 883,985.32 588,550.98
Bills for collection 0.00 0.00 0.00 0.00 0.00
Book Value (Rs) 247.39 181.23 152.20 127.52 545.46

Profit & Loss account of
HDFC Bank
------------------- in Rs. Cr. -------------------
Income
Interest Earned 48,469.90 41,135.53 35,064.87 27,286.35 19,928.21
Other Income 8,996.35 7,919.64 6,852.62 5,243.69 4,335.15
Total Income 57,466.25 49,055.17 41,917.49 32,530.04 24,263.36
Expenditure
Interest expended 26,074.24 22,652.90 19,253.75 14,989.58 9,385.08
Employee Cost 4,750.96 4,178.98 3,965.38 3,399.91 2,836.04
Selling, Admin & Misc Expenses 15,768.85 13,073.31 11,320.41 8,430.96 7,618.43
Depreciation 656.30 671.61 651.67 542.52 497.41
Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00
Operating Expenses 13,987.55 12,042.20 11,236.12 8,590.07 7,152.91
Provisions & Contingencies 7,188.56 5,881.70 4,701.34 3,783.32 3,798.97
Total Expenses 47,250.35 40,576.80 35,191.21 27,362.97 20,336.96
Net Profit for the Year 10,215.92 8,478.38 6,726.28 5,167.09 3,926.40
Extraordinary Items 0.00 0.00 0.00 0.00 0.00
Profit brought forward 14,654.15 11,132.18 8,399.65 6,174.24 4,532.79
Total 24,870.07 19,610.56 15,125.93 11,341.33 8,459.19
Preference Dividend 0.00 0.00 0.00 0.00 0.00
Equity Dividend 2,005.20 1,643.35 1,309.08 1,009.08 767.62
Corporate Dividend Tax 408.21 279.29 222.48 163.70 124.53
Per share data (annualised)
Earning Per Share (Rs) 40.76 35.34 28.27 22.02 84.40
Equity Dividend (%) 400.00 342.50 275.00 215.00 165.00
Book Value (Rs) 247.39 181.23 152.20 127.52 545.46
Appropriations
Transfer to Statutory Reserves 2,807.28 2,185.93 1,789.56 1,252.20 1,000.16
Transfer to Other Reserves 1,021.59 847.84 672.63 516.71 392.64
Proposed Dividend/Transfer to Govt 2,413.41 1,922.64 1,531.56 1,172.78 892.15
Balance c/f to Balance Sheet 18,627.79 14,654.15 11,132.18 8,399.65 6,174.24
Total 24,870.07 19,610.56 15,125.93 11,341.34 8,459.19

Cash Flow of HDFC Bank ------------------- in Rs. Cr. -------------------
Net Profit Before Tax 15328.72 12772.05 9750.63 7513.17 5818.66
Net Cash From Operating Activities -15862.27 8363.60 -1868.78 -11355.61 -375.83
Net Cash (used in)/from
Investing Activities
-1944.27 -1591.26 -858.88 -686.85 -1122.74
Net Cash (used in)/from Financing Activities 14543.44 5562.98 9065.84 3286.19 1227.99
Net (decrease)/increase In Cash and Cash
Equivalents
-3252.19 12303.47 6342.44 -8731.11 -273.56
Opening Cash & Cash Equivalents 39583.64 27280.17 20937.73 29668.83 29942.40
Closing Cash & Cash Equivalents 36331.45 39583.64 27280.17 20937.73 29668.83

Key Financial Ratios of HDFC Banks
Mar
'15
Mar '14 Mar '13 Mar '12 Mar '11
Investment Valuation Ratios
Face Value 2.00 2.00 2.00 2.00 10.00
Dividend Per Share 8.00 6.85 5.50 4.30 16.50
Operating Profit Per Share (Rs) 36.16 29.65 21.97 18.11 83.56
Net Operating Profit Per Share (Rs) 193.38 171.47 147.37 116.28 428.36
Free Reserves Per Share (Rs) -- -- -- -- --
Bonus in Equity Capital -- -- -- -- --
Profitability Ratios
Interest Spread 8.01 8.01 8.78 8.42 8.25
Adjusted Cash Margin(%) 18.91 18.65 17.60 17.55 18.23
Net Profit Margin 21.07 20.61 19.18 18.93 19.70
Return on Long Term Fund(%) 66.77 81.47 80.09 75.20 59.91
Return on Net Worth(%) 16.47 19.50 18.57 17.26 15.47
Adjusted Return on Net Worth(%) 16.47 19.50 18.57 17.26 15.47
Return on Assets Excluding Revaluations 247.39 181.23 152.20 127.52 545.46
Return on Assets Including Revaluations 247.39 181.23 152.20 127.52 545.46
Management Efficiency Ratios
Interest Income / Total Funds 8.96 9.22 9.50 8.87 7.97
Net Interest Income / Total Funds 4.14 4.14 4.28 4.00 4.22
Non Interest Income / Total Funds 1.66 1.78 1.86 1.70 1.73
Interest Expended / Total Funds 4.82 5.08 5.22 4.87 3.76
Operating Expense / Total Funds 2.46 2.55 2.87 2.62 2.66
Profit Before Provisions / Total Funds 3.22 3.22 3.10 2.91 3.09
Net Profit / Total Funds 1.89 1.90 1.82 1.68 1.57
Loans Turnover 0.15 0.15 0.16 0.15 0.14
Total Income / Capital Employed(%) 10.62 11.00 11.36 10.57 9.71
Interest Expended / Capital
Employed(%)
4.82 5.08 5.22 4.87 3.76
Total Assets Turnover Ratios 0.09 0.09 0.10 0.09 0.08
Asset Turnover Ratio 0.10 0.10 0.11 0.10 0.09
Profit And Loss Account Ratios
Interest Expended / Interest Earned 53.79 55.07 54.91 54.93 47.09
Other Income / Total Income 15.66 16.14 16.35 16.12 17.87
Operating Expense / Total Income 23.20 23.18 25.25 24.74 27.43
Selling Distribution Cost Composition -- -- -- -- --
Balance Sheet Ratios
Capital Adequacy Ratio 16.79 16.07 16.80 16.52 16.22
Advances / Loans Funds(%) 80.97 82.33 79.93 79.19 79.34
Debt Coverage Ratios
Credit Deposit Ratio 81.71 81.79 80.14 78.06 76.02

Investment Deposit Ratio 35.13 35.05 38.51 36.99 34.45
Cash Deposit Ratio 6.46 6.02 5.46 8.81 10.79
Total Debt to Owners Fund 7.27 8.45 8.18 8.24 8.22
Financial Charges Coverage Ratio 0.69 0.66 0.63 0.63 0.88
Financial Charges Coverage Ratio Post
Tax
1.42 1.40 1.38 1.38 1.47
Leverage Ratios
Current Ratio 0.04 0.06 0.06 0.08 0.06
Quick Ratio 12.69 8.55 7.84 6.20 6.89
Cash Flow Indicator Ratios
Dividend Payout Ratio Net Profit 19.62 19.38 19.46 19.52 19.55
Dividend Payout Ratio Cash Profit 18.44 17.96 17.74 17.67 17.35
Earning Retention Ratio 80.38 80.62 80.54 80.48 80.45
Cash Earning Retention Ratio 81.56 82.04 82.26 82.33 82.65
AdjustedCash Flow Times 41.46 40.15 40.15 43.21 47.15
Mar
'15
Mar '14 Mar '13 Mar '12 Mar '11
Earnings Per Share 40.76 35.34 28.27 22.02 84.40
Book Value 247.39 181.23 152.20 127.52 545.46
Peer Competition
Name Last Price Market Cap.
(Rs. cr.)
Net Interest
Income
Net Profit Total Assets
HDFC Bank 1,073.00 270,717.17 48,469.91 10,215.92 590,503.07
ICICI Bank 250.10 145,352.67 49,091.14 11,175.35 646,129.29
Kotak Mahindra 702.45 128,708.36 9,719.87 1,865.98 106,012.08
Axis Bank 432.55 102,893.84 35,478.60 7,357.82 461,932.39
IndusInd Bank 935.05 55,507.31 9,691.97 1,793.72 109,115.92
Yes Bank 718.70 30,136.63 11,572.00 2,005.36 136,170.42
IDFC Bank 58.40 19,812.92 - - 0.05
ING Vysya Bank 1,027.00 19,719.13 5,205.22 657.85 60,413.23
Federal Bank 55.10 9,468.11 7,419.46 1,005.75 82,850.47

Karur Vysya 455.05 5,545.44 5,395.87 464.28 53,152.49
City Union Bank 91.05 5,456.16 2,698.86 395.02 27,871.13
JK Bank 75.70 3,669.77 7,061.13 508.60 76,085.46
South Ind Bk 19.25 2,599.09 5,286.22 307.20 59,116.32
Karnataka Bank 122.00 2,299.37 4,698.42 451.45 51,836.60
DCB Bank 77.15 2,188.30 1,422.42 191.18 16,132.30
Lakshmi Vilas 91.00 1,633.10 2,214.53 132.29 24,705.43
StanChart IDR 54.40 652.80 - - 131,000.95
Dhanlaxmi Bank 22.90 406.34 1,283.59 -241.47 14,351.90
Goldman BEES 2,274.25 233.34 -- -- -

Balance Sheet ------------------- in Rs. Cr. -------------------
HDFC
Bank
ICICI Bank Kotak Mahindra Axis Bank IndusInd Bank
Capital and Liabilities:
Total Share Capital 501.30 1,159.66 386.18 474.10 529.45
Equity Share Capital 501.30 1,159.66 386.18 474.10 529.45
Share Application Money 0.00 7.44 3.00 0.00 14.05
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves 61,508.12 79,262.26 13,754.91 44,202.41 9,710.02
Revaluation Reserves 0.00 0.00 0.00 0.00 391.01
Net Worth 62,009.42 80,429.36 14,144.09 44,676.51 10,644.53
Deposits 450,795.64 361,562.73 74,860.31 322,441.94 74,134.36
Borrowings 45,213.56 172,417.35 12,149.71 79,758.27 20,618.06
Total Debt 496,009.20 533,980.08 87,010.02 402,200.21 94,752.42
Other Liabilities & Provisions 32,484.46 31,719.86 4,857.97 15,055.67 3,718.96
Total Liabilities 590,503.08 646,129.30 106,012.08 461,932.39 109,115.91
HDFC
Bank
Assets
Cash & Balances with RBI 27,510.45 25,652.91 3,928.30 19,818.84 4,035.14
Balance with Banks, Money at Call 8,821.00 16,651.71 2,334.06 16,280.19 6,744.00
Advances 365,495.03 387,522.07 66,160.71 281,083.03 68,788.20
Investments 166,459.95 186,580.03 30,421.09 132,342.83 24,859.37
Gross Block 3,121.73 4,725.52 1,206.71 2,413.05 1,119.56
Accumulated Depreciation 0.00 0.00 0.00 0.00 0.00
Net Block 3,121.73 4,725.52 1,206.71 2,413.05 1,119.56
Capital Work In Progress 0.00 0.00 0.00 101.26 38.02
Other Assets 19,094.91 24,997.05 1,961.21 9,893.19 3,531.63
Total Assets 590,503.07 646,129.29 106,012.08 461,932.39 109,115.92
Contingent Liabilities 997,538.88 868,190.58 68,092.15 640,183.59 215,702.02
Bills for collection 0.00 0.00 0.00 0.00 0.00
Book Value (Rs) 247.39 138.72 183.09 188.47 193.40

Profit & Loss account ------------------- in Rs. Cr. -------------------
HDFC
Bank
Income
Interest Earned 48,469.90 49,091.14 9,719.87 35,478.60 9,691.96
Other Income 8,996.35 12,176.13 2,028.45 8,365.05 2,403.87
Total Income 57,466.25 61,267.27 11,748.32 43,843.65 12,095.83
Expenditure
Interest expended 26,074.24 30,051.53 5,496.13 21,254.46 6,271.69
Employee Cost 4,750.96 4,749.88 1,466.68 3,114.97 980.48
Selling and Admin Expenses 0.00 0.00 0.00 0.00 0.00
Depreciation 656.30 658.95 193.00 405.67 126.85
Miscellaneous Expenses 15,768.85 14,631.56 2,726.52 11,710.72 2,923.11
Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00
Operating Expenses 13,987.55 11,495.83 3,254.72 9,203.74 2,725.94
Provisions & Contingencies 7,188.56 8,544.56 1,131.48 6,027.62 1,304.50
Total Expenses 47,250.35 50,091.92 9,882.33 36,485.82 10,302.13
HDFC
Bank
Net Profit for the Year 10,215.92 11,175.35 1,865.98 7,357.82 1,793.72
Extraordionary Items 0.00 0.00 0.00 0.00 0.00
Profit brought forward 14,654.15 13,318.59 4,005.29 13,501.45 2,623.33
Total 24,870.07 24,493.94 5,871.27 20,859.27 4,417.05
Preference Dividend 0.00 0.00 0.00 0.00 0.00
Equity Dividend 2,005.20 2,898.81 82.07 1,087.54 212.01
Corporate Dividend Tax 408.21 271.15 13.58 221.42 43.15
Per share data (annualised)
Earning Per Share (Rs) 40.76 19.28 24.16 31.04 33.88
Equity Dividend (%) 400.00 250.00 18.00 230.00 40.00
Book Value (Rs) 247.39 138.72 183.09 188.47 193.40
Appropriations
Transfer to Statutory Reserves 2,807.28 4,062.57 587.06 1,926.82 497.87
Transfer to Other Reserves 1,021.59 0.00 93.30 0.00 0.00
Proposed Dividend/Transfer to Govt 2,413.41 3,169.96 95.65 1,308.96 255.16

Balance c/f to Balance Sheet 18,627.79 17,261.42 5,095.26 17,623.49 3,664.02
Total 24,870.07 24,493.95 5,871.27 20,859.27 4,417.05
Cash flows ------------------- in Rs. Cr. -------------------
ICICI Bank Axis Bank IndusInd Bank Kotak Mahindra HDFC Bank
Net Profit Before Tax 15819.92 11056.83 2709.17 1865.98 15328.72
Net Cash From Operating Activities -4824.49 -12922.02 -321.43 5121.93 -15862.27
Net Cash (used in)/from
Investing Activities
-9199.56 -7989.65 -276.16 -4112.53 -1944.27
Net Cash (used in)/from Financing
Activities
15005.67 28846.00 4607.29 -726.93 14543.44
Net (decrease)/increase In Cash and Cash
Equivalents
775.02 7860.34 4009.70 282.47 -3252.19
Opening Cash & Cash Equivalents 41529.60 28238.69 6769.44 5979.89 39583.64
Closing Cash & Cash Equivalents 42304.62 36099.03 10779.14 6262.36 36331.45

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