The report is a detailed analysis of HDFC

Banks Annual Report 2013 covering its

financial standing, risk management
procedures and accounting policies.

HDFC BANK
Analysis of Annual Report 2013

Debottama Das
Mehul Goyal
Akshay Hemanth
Gaurav Jain
Abhi Maheshwari
Tawishi Singh

A012
A021
A023
A025
A035
A053

HDFC BANK

Contents
Acknowledgement............................................................................................................................................... 1
1.

INTRODUCTION ........................................................................................................................................... 3

2.

FINANCIAL STRENGTH ................................................................................................................................. 3

3.

INCOME GROWTH ....................................................................................................................................... 4

4.

RISK MANAGEMENT AND PORTFOLIO QUALITY ......................................................................................... 5

5.

IMPLEMENTATION OF RISK MANAGEMENT POLICY ................................................................................... 6

6.

LIQUIDITY POSITION .................................................................................................................................... 7

7.

LIQUIDITY MANAGEMENT DURING 2013-14 .............................................................................................. 8

8.

CONTINGENT LIABILITIES ............................................................................................................................. 8

9.

ACCOUNTING POLICIES ............................................................................................................................... 8

10.

SPECIAL OBSERVATIONS .......................................................................................................................... 9

11.

FUTURE OUTLOOK ................................................................................................................................. 10

12.

SCHEDULES ............................................................................................................................................ 11

13.

GRAPHS AND TREND ANALYSIS ............................................................................................................. 16

14.

REFERENCES........................................................................................................................................... 20

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HDFC BANK

ACKNOWLEDGEMENT

This acknowledgement is an expression of deep sense of gratitude to all those who extended their
cooperation to carry out and complete this project successfully.
We would like to thank our faculty guide Dr. Paritosh Basu for his continuous guidance and support
without which the completion of the project would not have been possible.

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HDFC BANK

1. INTRODUCTION
The Housing Development Finance Corporation Limited (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 the
RBI's liberalisation of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the
name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced
operations as a Scheduled Commercial Bank in January 1995.
The Bank at the end of FY13 had an enviable network of over 3062 branches and 10743 ATMs spread over
1084 cities/towns across India. All branches are linked on an online real-time basis. Customers in over 120
locations are also serviced through Telephone Banking. The Bank's expansion plans take into account the
need to have a presence in all major industrial and commercial centers 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 the centers where the
NSE/BSE has a strong and active member base.
Management
Mr. C.M. Vasudev has been appointed as the Chairman of the Bank with effect from 6th July 2010. Mr.
Vasudev has been a Director of the Bank since October 2006. A retired IAS officer, Mr. Vasudev has had an
illustrious career in the civil services and has held several key positions in India and overseas, including
Finance Secretary, Government of India, Executive Director, World Bank and Government nominee on the
Boards of many companies in the financial sector.
The Managing Director, Mr. Aditya Puri, has been a professional banker for over 25 years and before joining
HDFC Bank in 1994 was heading Citibank's operations in Malaysia. The Bank's Board of Directors is
composed of eminent individuals with a wealth of experience in public policy, administration, industry and
commercial banking. Senior executives representing HDFC are also on the Board.

2. FINANCIAL STRENGTH
Balance Sheet
There was substantial increase in low cost funds i.e. CASA deposits by 17.68% to INR 1405 billion which
will improve its revenue structure in upcoming quarters due to increase in net interest income. Bank has got a
good CASA ratio of 47.4% which is a good sign for further revenue growth and act as a cushion for margins.
Gross NPAs and net NPAs remained stable at a percentage value of 1% and 0.2%. However, bank slightly
decreased it provision coverage ratio to 79.9%. Therefore, we can conclude asset quality remained healthy.
Slippages in NPA level were primarily due to the Commercial Vehicle and gold loan segment.
Bank saw a lot of expansion in terms of branches, ATMs and employees. Branch count for bank in Mar 2013
is 3062 and planning substantial increase in future too.

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HDFC BANK
Loans in ratio to total deposits has increased by 1.7% and increase can be attributed to increase in borrowings
to total deposits by 1.4 % and changes in RBI capital requirements.
HDFC banks Capital Adequacy Ratio (CAR) at 16.8% is almost twice of what is required by the RBI. The
bank has ensured healthy capitalisation levels to grow higher than the industry. This helped the bank to have a
strong rating and be secure. A strong rating in turn leads to cheaper source of funds when the bank issues
bonds, certificates of deposits etc.

3. INCOME GROWTH
HDFC bank showed a consistent growth in its profit to INR 89.364 billion which is approximately 30% above
previous year PAT. Bank saw an increase in Net Interest Income (NII) growth rate by 50 basis points to
22.7%. Shift in loan mix to more retail (higher yielding) led to slightly better yields The biggest
disappointment was the vast decrease in fee based income growth rate which was only 18% as compared to
the previous year growth rate of around 33%. The effect of fall in fee based income can also be seen in a
drastic fall in contingent liabilities.
Loan portfolio of bank saw a strong hold with a value of INR 2397.20 billion which is led by a good growth
in retail sector. Average yield on investments has shown positive growth and reached value of 12.3%. Net
Interest Margin (NIM) remained at the same level of 4.8 percent.
Bank improved its efficiency which can be credited to the increase in profit generated per branch by INR
16.561 Lakh and increase in profit per employee by INR 1.92 Lakh. Moreover, HDFC reduced employee
cost as a percentage of operating expense to 35.3% which is a sign of improved operating efficiency. There
was a relief for investors as bank published increase in Return on Equity even after the unfavorable market
conditions.

Retail business growth remains strong:

HDFCB's share of retail business increased to 67% v/s 60% in FY11 and customer base expanded to 28.7m
v/s 19m in FY10. Retail term deposits now form 45% of overall deposits, compared to 35% in FY11.
However, Income from third party distribution continues to be a drag and for FY13 was at INR7.7b (12.5% of
fees), compared to INR7.3b (15.4% of fees) in FY12 and INR9b (20.5% of fees) in FY11. Concentration mix
which improved marginally, demonstrated further strength of franchise with top 20 exposures and depositors
forming 14.7% (16.5%) and 7.8% (8.6%), one of the best in the system.
Updates on home loan business:
On an average, the bank sourced home loans of INR10b per month for HDFC v/s INR8b in FY12. It bought
back a portfolio of INR51b from HDFC v/s INR47b in FY12. Outstanding securitized loans stood at INR174b
(7.3% of loans) v/s INR163b (~8% of loans) a year ago. Over 95% of securitized assets on the balance sheet
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HDFC BANK
are part of the loan agreement with HDFC. The bank received INR1.4b commission on housing loan sourcing
v/s INR1.1b in FY12.

4. RISK MANAGEMENT AND PORTFOLIO QUALITY

Commercial Banks are exposed to various types of risks; the most important are credit risk, market risk and
operational risk. Having a large Balance sheet size of 4 Trillion Rupees and presence across 1400 cities,
HDFC banks key focus lies in identification, measurement, monitoring and management of risks. The Board
of Directors of the Bank endorses the risk strategy and approves the risk policies. The Risk Policy &
Monitoring Committee of the Board supervises implementation of the risk strategy. It periodically reviews the
portfolio composition and the status of impaired credits as well as approves and reviews the limits for treasury
operations. The bank does not aim for short term gains by compromising on its risk taking limits.

Credit Risk Management

HDFC Bank has set in place distinct policies, processes and systems for managing credit risk for its retail and
wholesale businesses. For each of its retail loan products customer segments, security standards are specified
to ensure a strong and profitable portfolio. Also the retail credit risk is monitored largely on a portfolio basis,
across various products and customer segments.
For wholesale credit exposures, management of credit risk is done appropriate credit approval processes,
ongoing post-disbursement monitoring and remedial management procedures. The bank has a well-diversified
portfolio and well defined limits for different sectors.
An important part of HDFC Banks Risk Management Policy is to prevent credit concentration and thus
reduce concentration risk. The bank does not believe in excess exposure towards growing sectors which are
volatile to changes in economy. It also maintains an adequate balance between its retail and corporate banking
portfolio. So when the growth in corporate loans is low due to high interest rates, the bank can maintain good
earnings backed by its retail operations.
Market Risk
HDFC bank offers its clients a number of fixed rate and floating rate products. It offers foreign currency
products to Indian customers and has two overseas branches. So its profitability is affected by varying interest
rates and currency fluctuations in the market. To manage its interest rate risk HDFC bank maintains a limit on
its Interest Sensitivity Gap across different buckets. This ensures that the liabilities of the bank and the loans
and investments funded by them have similar maturities and similar proportion of fixed and floating rates.
Thus even when interest rates in the economy are low, Net Interest Margin for the bank remains strong.
The bank levies limits on its treasury activities. Types of limits include position limit, gap limit, duration
limit, stop loss trigger level, value-at-risk limit.

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HDFC BANK
HDFC Bank offers foreign exchange derivatives to its customers to hedge their market risks. The Bank
entered into foreign exchange contracts with counterparties only up to the limit decided as per credit
worthiness of the counterparty. To prevent any currency risk, HDFC Bank did not have any open positions. It
also entered into rupee derivatives to mitigate its own interest rate risk.
HDFC bank has access to foreign currency funds at cheaper rates through its foreign branches. However the
bank did not use the money to fund its rupee balance-sheet. This was mainly to prevent cross-currency risk
and to ensure that the asset franchise is being built in a long-term prudent way.
Operational Risk
Operational Risk is risk of loss to a bank due to internal/external fraud, damage to fixed assets, inefficient
operating processes etc. To manage operational risks HDFC Bank ensures all of its employees are up to date
with the Risk Management Policies of the bank. HDFC Bank ensures that its fraud prevention measures and
KYC norms are being met across each of its 2544 branches.
Some of the key principles for Operational Risk Management by the bank include segregation of functions,
clear reporting guidelines, well defined processes, staff training and strong management team with vast
experience in diverse fields. The Bank has a robust information technology with disaster recovery capability
for critical components. It adopts monitoring and control mechanisms as a part of day-to-day operations and
having an effective internal audit process.
The Bank is in the process of implementing various principles and guidelines laid out in respect of
Operational Risk Management by the Basel Committee on Banking Supervision vide Basel II guidelines and
by RBI.

5. IMPLEMENTATION OF RISK MANAGEMENT POLICY

The implementation policies throughout the bank can be seen via the banks performance.
During challenging environment faced by the banking industry with unprecedented rating downgrades, high
debt restructuring and non-performing assets, subduded growth, HDFC Bank was been able to maintain a
high quality loan book. The bank was largely insulated from credit problems witnessed by the banking system
in power, telecom, aviation, and some other sectors due to tighter credit standards, lower exposure to project
finance and appropriate credit filters and monitoring systems.
The Gross NPAs Ratio stood at 0.97% while Net NPA Ratio was 0.2% as of March 31, 2013. Restructured
assets including pipeline cases were 0.2% of gross advances. So while expanding its loan portfolio, the bank
also increased asset quality.
HDFC Bank had no unsecured advances outstanding as on March 31, 2013. This shows the banks drive to
maintain a healthy balance sheet. Total exposure of the bank that is covered by eligible financial collateral
after adjusting for value of collateral was Rs 14,685 Crores during FY13, an increase of 9% over the

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HDFC BANK
previous year. Such mitigation of credit risk, largely in the form of cash deposit with the Bank enables low
credit as well as market risk.
For the first time HDFC Bank raised $500 million overseas. The bank has two branches in Bahrain and Hong
Kong. The overseas foreign currency has grown to about $2 billion. Much of it has been funded through bank
borrowing, loans, bilateral borrowings etc which is mostly medium term. Some customers have an appetite
for slightly longer term money. So to maintain an ideal gap between maturities of foreign currency assets and
liabilities the bank raised the foreign currency bond overseas. This is in line with the banks policy of
maintaining a low interest sensitivity gap to ensure high NIM during volatile market conditions.
The total capital required for credit, operational and market risk for the banks balance sheet is Rs 28310
Crore which is easily met by the bank.

6. LIQUIDITY POSITION
Government Securities to Total Assets Ratio is a measure of the liquidity of a banks portfolio. HDFC
Bank with a ratio of 0.21 has a more liquid investment portfolio than its peers like ICICI Bank which has the
ratio as 0.17. During the fiscal year 2012-13, RBI kept the Repo Rate above 8% due to inflation concerns and
the 10 year G Sec yields touched a high of 8.8%. So with rising interest rates, the value of the Government
Securities Portfolio reduced thus slightly reducing the G Sec to Total Assets Ratio for HDFC Bank from .23
in FY12 to .21 in FY13.
The Liquid Assets to Total Assets Ratio assesses the extent to which liquid assets support banks asset base.
Banks need a high value for this ratio for potential unanticipated withdrawals of deposits. HDFC Bank has
increased this ratio from .06 in FY12 to .07 in FY13. Proper planning for this ratio by the bank helps regular
lending by the bank even during liquidity shortages in the economy.
The Net Advances to Customer Deposit Ratio is used to calculate a banks ability to cover withdrawals
made by its customers. HDFC bank has a stable value of .81 lower than ICICI banks value for the ratio of .99
and higher than Indias average of .75. This shows effective liquidity management by HDFC Bank by keeping
low pressure on its resources and not utilizing reserves for the purpose of lending.
Net Advances to Stable Funds Ratio is determined as Net Advances/ (Equity + Reserves + ESOPS + InterBank Market) for a bank. It shows the proportion of loans given by a bank which are backed by stable
liabilities which are generally not payable on demand. HDFC has a strong value of 6.04 for the ratio as
compared to ICICI banks 2.96. This is due to higher proportion of equity capital of the bank.

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HDFC BANK

7. LIQUIDITY MANAGEMENT DURING 2013-14

The half year April September 2013 was extremely volatile due to fear of tapering of Quantitative Easing,
high Current Account deficit and FII withdrawal. There was a liquidity crunch in the economy when RBI
raised MSF to 10.25%.
To manage its liquidity position HDFC Bank raised fixed deposit rates by 1 per cent for short term maturities
between 15 days to 6 months in July. Later in October with the economy becoming stable the bank cut its
deposit rates in short-term maturities ranging from 46 days to six months by 25 bps.
HDFC Banks Liquid Assets to Total Assets Ratio reduced slightly to 0.065. Also with credit growth in the
country remaining low during this half year, the bank increased its Net Advances to Customer Deposit Ratio
to 0.85 to increase its profitability. Thus the liquidity position of the bank came under pressure and it needs to
take adequate measure like increasing it liquid assets base and keeping Advances to Deposits ratio to a
prudent value in order to improve its liquidity position during FY14.

8. CONTINGENT LIABILITIES
The contingent liabilities of the bank fell by 16.7% to INR7.2 billion. The fall can be attributed to reduction in
liability on account of outstanding foreign exchange and derivatives contracts. There was a significant
increase in the guarantees given on behalf of constituents especially for those outside India recording a 800%
increase.
The bank has fourth largest portfolio of contingent liabilities among Indian Banks behind SBI, PNB and
ICICI Bank. However, in case of guarantees given on behalf of constituents, the bank is a distant sixth.

9. ACCOUNTING POLICIES
The bank is in conformity with the RBI guidelines and ICAI accounting standards with respect to the
accounting policy followed by the bank. However, in the current financial year the bank as undertaken
significant income and expenditure reclassification.
The first reclassification is with respect to Agent commissions and OEM subventions. These were earlier
netted off under Net Interest Income but now agent commissions are recognised as Operating expenditure and
OEM subventions and recognized as other income.
The next adjustment is towards write-offs which were earlier netted off under NPA provisions but now are
recorded separately as other income. This has positively impacted the Net Interest Income, however PAT
continues remain unaffected.

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HDFC BANK
P&L reclassifications PAT
neutral (INR CRORE)

Q3FY13
Earlier

Q3 Revised

Notes

Interest on Advances

6722

6905

Interest on Investment

1893

1893

93

93

Interest income

8708

8891

Interest expenses

4907

4909

Net interest income

3801

3982

Interest on other reserves

Non-interest income

1797

1928

Opex higher as commissions/subventions

from OEMs recognized in opex now v/s being
netted off from interest income

2574

2788

Pre prov profit

3024

3121

307

405

Profit before tax

2717

2717

Provision for tax

857

857

1859

1859

Profit after tax

10.

Impact from higher interest on Advances

Recoveries from write-offs also recognised

here v/s being netted off from NPA provisions
+ Subventions from OEMs recorded here now

Operating expenses

Provisions

Earlier sales commission paid net-off

subventions from OEMs was subtracted from
Interest income. Now sales commission is
recognized in Opex and subventions from
OEMs in other income

Provisions higher as recoveries from writeoffs was earlier netted off and now is
recognized in other income
No Impact
No Impact

SPECIAL OBSERVATIONS

ALM remains well matched:

Strong ALM performance continued by HDFCB led by strong retail business mix. As of March 2013, the
proportion of loans maturing in a year was 38.6% (38.9% a year ago), while the proportion of deposits
maturing in a year was 30% (status quo since March 2010).
A unique feature for HDFC Bank was that it had similar growth in its deposits base and advances thus
enabling better matching of its assets and liabilities. Total Deposits grew by 20.1% while Advances grew by
22% during 2012-13.

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HDFC BANK
Low Concentration Risk:
While growth in exposure related to infrastructure segment was low at 4.3%, some of the other risky
segments -- iron and steel (30%), gems and jewelry (43.6%) and commercial real estate (32%) saw a strong
growth. Overall exposure to risky segments remained low at 14%. Advances of twenty largest borrowers to
total advances were 12.8% and the Gross exposure to top four NPA accounts was 288.30 Cr.
Thus HDFC bank has strong exposure limits for each sector which helps in maintaining low NPA levels.
Floating provisions and adjusted growth:
Floating provisions increased further to INR18.4b -- 5.1% of net worth and INR7.7/share. PBT growth
adjusted for one- off contingent provisions and floating provisions was 25% (16% in FY12) v/s the reported
30% (29% in FY12).
Standard assets restructuring was negligible at INR22m v/s INR1.7b in FY12. As in March 2013, outstanding
restructured loans stood at INR5.3b, of which standard restructured loans were INR810m. Outstanding
restructured loans, including pipeline, at 0.2% of gross loans.

11.

FUTURE OUTLOOK

HDFC Bank is expected to have credit growth of 4-5% above industry average the Bank is well capitalized,
however, with an increasing loan portfolio the Bank may have to raise additional capital to maintain capital
adequacy. The asset quality of the Bank is also expected to fall marginally due to systematic risk. Due to the
above reasons the Banks track record of 30% growth in PAT in every quarter may not hold true in the future.
Inspite of the mentioned adversities, the bank has sound fundamentals and is expected to grow in the future.

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HDFC BANK

12.

SCHEDULES
Income Statement (in Lakhs)
2010

2011

2012

2013

Interest Income

1617273

1992821.2

2787419.4

3506487.2

a) Interest / discount on advances /

bills

1209828

1508501

2112444

2682239

24.69%

40.04%

26.97%

b) Income on Investments

398111

467544

650459

782026

c) Interest on balances with RBI

8096

14808

13714

28163

d) Others

1238

1968

10802

14059

Interest Expense

778629.9

938508.4

1498957.8

1925375.0

a) Interest on Deposits

699771.2

802831.0

1268967.2

1601712.6

b) Interest on RBI/ Inter bank

borrowings
c) Other Interest

74551.8

133644.5

225286.2

317668.3

4306.9

2033.0

4704.4

5994.1

NII

838643.1

1054312.9

1288461.6

1581112.3

% change(YoY)

13.0070124

25.7165094

22.2086587

22.7131852

Other Income

398311.0

433515.0

578362.0

685262.0

Total Income

2015584.0

2426336.2

3365781.4

4191749.3

Net Income

1236954.1

1487827.9

1866823.6

2266374.3

Operating Expenses

593980.0

715291.0

927764.0

1123612.0

Employee Costs

228918.0

282604.0

339991.0

396538.0

20.4

29.7

21.1

Operating Costs Growth

Operating Profit

642974.1

772536.9

939059.6

1142762.3

% change(YoY)

24.2

20.2

21.6

21.7

Other Provisions

214059.0

190671.0

187744.0

167700.0

PBT

428915.1

581865.9

751315.6

975062.3

Tax Provisions

134044.0

189226.0

234608.0

302434.0

31.25%

32.52%

31.23%

31.02%

Net Profit

294871.1

392639.9

516707.6

672628.3

% change(YoY)

31.3

33.2

31.6

30.2

Employees

51888

55752

66076

69065

Branches

1725

1986

2544

3062

5471

8913

10743

ATMs

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HDFC BANK
Balance Sheet (In Lakhs)
2010

2011

2012

2013

Equity Share Capital

45774

46523

46934

47588

Reserve and Surplus

2106184

2491113

2945504

3573826

Net worth

2151958

2537636

2992438

3621414

Deposits

16740444

20858641

24670645

29624698

Borrowings + Sub Dept

1291569

1439406

2384651

3300660

Employee Stock options

291

291

30

Other Liabilities

2061594

2899286

3743186

3486418

Total Liabilities

22245856

27735260

33790950

40033190

Cash

1548328

2510081

1499109

1462740

Money at call

1445911

456802

594663

1265277

Investments

5860762

7092937

9748291

11161360

Advances

12583059

15998267

19542003

23972064

Fixed Assets

212281

217065

234720

270308

1.02

1.08

1.15

Growth
Other Assets

595515

1460108

2172164

1901441

Total Assets

22245856

27735261

33790951

40033191

Net Earning Assets

19889732

23548006

29884957

36398701

Net Interest Bearing Liabilties

18032013

22298047

27055296

32925358

CASA Deposits

8710390

10990830

11940590

14052100

Deposit Growth Rates

17.22%

24.6%

18.3%

20.1%

Loan Growth Rates

27.3%

27.1%

22.2%

22.7%

Current Assets

2994239

2966883

2093772

2728017

CD Ratio

75.2%

76.7%

79.2%

80.9%

Cash Days

951.4

1280.8

589.8

475.1

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HDFC BANK
Ratios
Spread Analysis (%)

2010

2011

2012

2013

Average Yield - Earning Assets

NA

9.2%

10.4%

10.6%

Average Yield on Loans

NA

10.6%

11.9%

12.3%

Average Yield on Investments

NA

7.2%

7.7%

7.5%

Average Cost - Interest Bearing Liabilities

NA

4.7%

6.1%

6.4%

Average Cost of Deposits

NA

4.3%

5.6%

5.9%

Interest Spread

NA

4.5%

4.4%

4.2%

Net Interest Margin

4.7%

4.9%

4.8%

4.8%

Profitability Ratios

2010

2011

2012

2013

ROE

16.7%

18.7%

20.3%

ROA

1.6%

1.7%

1.8%

Interest Expense/Int Income

48.1%

47.1%

53.8%

54.9%

Non Interest Income/Net Income

32.2%

29.1%

31.0%

30.2%

Efficiency Ratios

2010

2011

2012

2013

Employee Costs/Operating Expenses

38.5%

39.5%

36.6%

35.3%

Employee Cost per employee

4.41

5.07

5.15

5.74

Business Per Employee

38.84

43.52

50.94

60.69

Profit per employee

5.68

7.04

7.82

9.74

Profit Per Branch

170.94

197.70

203.11

219.67

Asset Liability Profile

2010

2011

2012

2013

Loans/Deposits

75.2%

76.7%

79.2%

80.9%

CASA Ratio

52.0%

52.7%

48.4%

47.4%

Investment/Deposit

35.0%

34.0%

39.5%

37.7%

CAR

17.4

16.2

16.5

16.8

Borrowing/Deposits

7.7%

6.9%

9.7%

11.1%

Valuation

2010

2011

2012

2013

No, of Shares

22887.16

23261.28

23466.88

23794.00

Book Value

94.02

109.09

127.52

152.20

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HDFC BANK
Ratios
Assets Quality

2010

2011

2012

2013

GNPA

181680

169430

199940

233440

NNPA

39210

29640

35230

46900

GNPA Ratio

1.4%

1.1%

1.0%

1.0%

NNPA Ratio

0.3%

0.2%

0.2%

0.2%

Provision Coverage Ratio

78.4%

82.5%

82.4%

79.9%

Provisions

142470

139790

164710

186540

-2680

24920

21830

Additional Provisions

LIQUIDITY

HDFC FY'13

HDFC FY'12

ICICI FY'13

G Sec to Total Assets Ratio

0.21

0.23

0.17

Liquid assets to Total Assets Ratio

0.07

0.06

0.08

Net Advances/Customer Deposits Ratio

0.81

0.79

0.99

Net Advances/Stable Funds Ratio

6.04

5.90

2.96

CONTINGENT LIABILITIES (INR)

HDFC FY'13

HDFC FY'12

Non Debt claims against bank - taxation

93,49,100

1,35,67,900

Non Debt claims against bank - others

39,75,400

28,76,193

Forward exchange contracts liabilities

4,46,78,60,687

5,64,87,64,494

Outstanding derivative contracts liabilities

2,29,22,13,027

2,62,63,90,521

166348147

133606359

22,05,95,426

20,91,82,124

4,08,82,506

1,85,40,671

7,20,12,24,293

8,65,29,28,262

Guarantees on behalf of constituents

Acceptances & endorsements
Other Contingent liabilities
Total

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HDFC BANK
SECTOR WISE FUND BASED EXPOSURE (INR CRORE)
Agriculture

5,121.37

1.9%

HDFC FY'12
4,559.18

Automobiles

10,955.58

4.0%

7,117.29

3.3%

Banks and FI

25,876.95

9.5%

23,660.94

11.0%

Cement Products

1,559.77

0.6%

788.33

0.4%

Chemical Products

2,734.20

1.0%

1,862.55

0.9%

Coal and Petroleum Products

4,888.51

1.8%

2,394.83

1.1%

Construction and Developers

2,753.79

1.0%

2,646.08

1.2%

1.3%

3,176.98

1.5%

1.6%

3,348.70

1.6%
2.2%

Pharmaceuticals & Fertilizers

Engineering

HDFC FY'13

3,626.91
4,367.66

%
2.1%

Food and Beverage

7,036.18

2.6%

4,644.41

Gems and Jewelry

4,163.98

1.5%

2,899.24

1.3%

Housing Finance Co

1,502.60

0.6%

1,246.78

0.6%

Iron and Steel

5,322.07

2.0%

4,085.17

1.9%

Non-ferrous Metals

2,431.11

0.9%

972.2

0.5%

Power

5,364.55

2.0%

4,738.59

2.2%

Real Estate

3,841.15

1.4%

2,547.99

1.2%
45.9%

Retail Assets

1,15,057.23

42.2%

98,981.40

Retail Trade

24949.41

9.2%

15,757.92

5.8%

16322.65
13,040.72

7.6%

Road Transport
Services

7,324.71

2.7%

3,971.70

1.8%

Textiles

3,106.00

1.1%

1,962.23

0.9%

Other Industries

7,672.26

2.8%

4,075.80

1.9%

Total

Treasury and Operational Risk Management

2,72,507.11

6.0%

2,15,587.45

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HDFC BANK

13.

GRAPHS AND TREND ANALYSIS

Treasury and Operational Risk Management

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HDFC BANK

Treasury and Operational Risk Management

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HDFC BANK

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Treasury and Operational Risk Management

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HDFC BANK

14.

REFERENCES

HDFC Bank Annual Report 2013

HDFC Bank Annual Report 2012

Capital Line Database

HDFC Bank Quarterly Results

Treasury and Operational Risk Management

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