HDFC Bank Ltd.

– Annex to RAR

PART V: ANNEX to RAR

(All figures in the Annex are in mn)

Note: All figures except percentage may be rounded off. Percentage may be shown in decimal (2 digits)

Annex 1: Major Areas of Financial Divergence: NIL

Annex 2: Computation of Outside Liabilities

Sr.
Particulars Amount
No.
A Total Liabilities excluding capital & reserves as
5,602,104
on March 31, 2015
Upper Tier II Instruments 40,409
Subordinated debt 122,140
Deposits 4,507,956
Borrowings 289,587
Other liabilities and provisions 642,012
B Internal Liabilities 349,001
Provision for standard assets 15,584
Provision for diminution in fair value of
restructured accounts 181
Provision for Non Performing Loans 23,708
Floating provision 15,232
Provision for NPI 961
Provision for depreciation in investments 179
Provision for Fraud 760
Provision for receivable & cash shortages 868
Payment received from borrower and kept in suspense 13
ECGC claim received and held pending 26
Provision for sell offs 258
Provision for Tax 237,816
Accumulated Depreciation - Fixed Assets 53,415
C Total outside liabilities [A-B] 5,253,103

Annex 3: Assessed Net Worth

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 HDFC Bank Ltd. – Annex to RAR

Sr.
Particulars Amount
No.
A Paid up capital [including ESOP outstanding & interest
free funds from H.O. (foreign banks)] 5,013
B Reserves and Surplus 614,557
Statutory Reserve 116,644
Share Premium 249,531
Capital Reserve (excluding revaluation reserve) 6,645
General Reserve 44,823
Credit Balance in P&L A/c 186,278
Amalgamation Reserve 10,636
C Intangible assets (including net deferred tax assets) &
accumulated losses 19,507
D Reported net worth [A+B-C] 600,063
E Adjustments following inspection findings Nil
Investment Reserve Account
Additional Loan Loss Provision
Shortfall in Standard Asset Provisioning
Net Deferred Tax Asset
Understatement of Liabilities
Any other Item to be specified
F Assessed net worth or real/exchangeable value of paid
600,063
up capital and reserves [D-E]

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 HDFC Bank Ltd. – Annex to RAR

Annex 4: Computation of Assessed Capital

Sr. Particulars / Items Eligible

No. amount

Computation of Common Equity Tier 1 capital (CET1)

A Common Equity Tier 1 capital (CET1): instruments and reserves
before regulatory / supervisory adjustments 619,570
B Total regulatory adjustments / deductions
42,350
C Reported Common Equity Tier 1 capital (CET1) [A - B]
577,220
D Adjustments / deductions applied on CET 1 following Nil
Inspection for Supervisory Evaluation (ISE) findings under RBS
1 Additional Loan Loss Provision
2 Shortfall in Standard Asset Provisioning
3 Understatement of Liabilities
4 Net Deferred Tax Asset
5 Investment Reserve Account
6 Any other item to be specified
E Assessed Common Equity Tier 1 capital (CET1) [C – D] 577,220
Computation of Additional Tier 1 capital (AT1)
F Additional Tier 1 capital (AT1) : instruments before regulatory
adjustments 1,400
G Total regulatory adjustments to Additional Tier 1 capital
1,400
H Reported AT1 capital [F - G]
-
I Adjustments / deductions applied on AT1 following ISE findings Nil
1 Net Deferred Tax Assets
2 Any other item to be specified
J Assessed AT1) capital [H - I] -
Computation of Tier 1 Capital (T1)
K Reported Tier 1 (T1) capital [C + H]
577,220
L Assessed Tier 1 capital (T1) [E + J] 577,220
Computation of Tier 2 Capital (T2)
M Tier 2 capital: instruments and provisions
137,956
N Tier 2 capital: regulatory adjustments
5,514

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 HDFC Bank Ltd. – Annex to RAR

O Reported Tier 2 capital [M - N]

132,442
P Adjustments / deductions applied on T2 following ISE findings Nil
1 Add: Additional Standard asset provisions
2 Any other item to be specified
Q Assessed Tier 2 (T2) capital [O - P] 132,442
Computation of Total Capital (TC)
R Reported Total capital (TC) [K + O]
709,662
S Assessed Total capital (TC) [L + Q] 709,662
Risk Weighted Assets (RWAs)
T Risk Weighted Assets in respect of Pre-Basel III Treatment
U Risk Weighted Assets (RWAs) 4,226,699
V Reported Total Risk Weighted assets
4,226,699
W Adjustments / additions applied on RWAs following Inspection Nil
for Supervisory Evaluation (ISE) findings under RBS
1 Additional RWAs
2 Any other item to be specified
X Assessed RWAs [V + W] 4,226,699
Capital Ratios / Summary
AA Reported Common Equity Tier 1 (CET1) Ratio [C/V*100%] 13.66%
BB Reported Tier 1 (T1) or Core Capital Ratio [K/V*100%] 13.66%
CC Reported Tier 2 (T2) Capital Ratio [O/V*100%] 3.13%
DD Reported Total capital (TC) Ratio or CRAR [R/V*100%] 16.79%
EE Assessed Common Equity Tier 1 (CET1) Ratio [E/X*100%] 13.66%
FF Assessed Tier 1 (T1) or Core Capital Ratio [L/X*100%] 13.66%
GG Assessed Tier 2 (T2) Capital Ratio [Q/X*100%] 3.13%
HH Assessed Total capital (TC) Ratio or CRAR [S/X*100%] 16.79%

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 HDFC Bank Ltd. – Annex to RAR

Annex 5: Assessment of Internal Generation of Capital

Sr. Break-up of income and expenditure Current FY T FY T-1 FY T-2

No (Mar 15) (Mar-14) (Mar-13)
Total Interest/discount Income
1
(2+3+4+5) 484,699 411,355 350,649
2 Interest/discount on advance/bills
371,808 316,869 268,224
3 Income on investments
107,056 90,368 78,203
4 Interest on balances with RBI
- - -
Interest on market lending/ Income on
5
other interest earning assets 5,835 4,118 4,222
Fee based & stable misc. income
6
[6(a)+6(b) 65,842 57,349 51,669
6a Fee based income
65,842 57,349 51,669
6b Misc. income from stable sources
7 Gross stable income (1+6)
550,541 468,704 402,318
8 Interest Expended (9+10)
260,742 226,529 192,537
Interest on deposits/ all other interest
9
expense 235,138 190,482 163,206
10 Interest on borrowings
25,604 36,047 29,331
11 Net Stable Income (7-8)
289,799 242,175 209,781
12 Income from trading
5,816 1,105 1,613
13 Realised gains on derivatives
10,280 14,011 10,101
14 Gains on sale of asset
112 33 (11)
15 Recovery from w/offs
7,163 6,226 4,965
Extra-ordinary income/ Dividend income
16
& other miscellaneous income 751 472 189
Gross volatile income
17
(12+13+14+15+16) 24,122 21,847 16,857
Provisions and contingencies
18 20,750 15,873 16,764
(excluding tax) (19+20+21)
19 Provisions for Loan losses
17,236 16,326 12,342
Provisions for depreciation in
20
investments/NPI (38) (41) 522
21 Other provisions
3,552 (412) 3,900
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 HDFC Bank Ltd. – Annex to RAR

Sr. Break-up of income and expenditure Current FY T FY T-1 FY T-2

No (Mar 15) (Mar-14) (Mar-13)
22 Extra-ordinary expenses
- - -
23 Write-offs 1,201 789
1,559
24 Net Volatile Income (17-18-22-23) 4,773 (696)
1,813
Assessed provision by supervisor
25 - 5 -
(26+27+28+29+30+31+32+33)
26 Additional Provisions for frauds
Additional Provisions for understatement
27
of NPAs
Additional Provisions for Understatement
28
of NPIs
Additional Provisions for Understatement
29
of Liabilities
Additional Provisions for claims not
30
acknowledged as debt
31 Additional Other Provisions (Pl. specify)
32 Additional Other Provisions (Pl. specify)
33 Additional Other Provisions (Pl. specify)
5
34 Assessed net volatile Income (24-25)
1,813 4,768 (696)
35 Reported net total income (11+24)
291,612 246,948 209,085
36 Assessed net total income (11+34)
291,612 246,943 209,085
37 Operational expenses (38+39+40)
138,317 119,220 111,574
Staff expenses, Director’s fees/Board
38
Members’ fees & expenses 47,510 41,790 39,654
Depreciation on bank’s property and
39
repairs 15,062 14,599 14,182
40 Other Operating Expenses
75,745 62,831 57,738
41 Provisions for tax
51,136 42,944 30,249
42 Reported profit (35-37-41)
102,159 84,784 67,262
43 Assessed profit (36-37-41)
102,159 84,779 67,262
44 Dividend paid (excluding tax)
20,052 16,433 13,091
45 Reported Retained Earnings (42-44]
82,107 68,351 54,171
46 Assessed Retained Earnings (43-44)
82,107 68,346 54,171

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 HDFC Bank Ltd. – Annex to RAR

Earnings Stability / Volatility Assessment

Sr. Earnings / Profit Ratios Current FY T-1 FY T-2

No FY T (Mar-14) (Mar-13)
(Mar 15)

47 Net Interest Income [1-8] (NII Growth Rate)

223,957 184,826 158,112

48 Share of Interest, Fee and Volatile Income 0.84: 0.84: 0.84: 0.12:
[1:6:17] 0.12: 0.04 0.12: 0.04 0.04

49 Gross Stable Income / Interest Expended

[7/8*100%] 211.14% 206.91% 208.96%

50 Net Stable Income / Assessed Profit

[11/43*100%] 283.67% 285.65% 311.89%

51 Gross Volatile Income / (Provisions &

Contingencies + Extraordinary Expenses +
Write-offs) [17/(18+22+23)*100%] 108.1% 128.0% 96.0%

52 Assessed Net Volatile Income / Assessed Profit

2% 6% -1%
[34/43*100%]

53 Reported Retained earnings / Reported Profit

[45/42*100%] 80% 81% 81%

54 Assessed Retained earnings / Assessed Profit

[46/43*100%] 80% 81% 81%

55 Actual vs budgeted income [expressed as +ve /

-ve percentage] 100% 98% 107%

56 Actual vs budgeted profit [expressed as +ve / -

ve percentage] 98% 103% 105%

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 HDFC Bank Ltd. – Annex to RAR

Annex 6: Leverage Ratio under Basel III

Sr. Particulars Reported by Assessed by

No. Bank SSM
A Basel III Tier 1 Capital (T1)
577,221 577,221
B Leverage Ratio Exposures
6,799,715 6,799,715
On balance sheet (excluding derivatives
and Securities Financing Transactions 5,830,792 5,830,792
Derivatives
255,697 255,697
Securities Financing Transactions
2,238 2,238
Off-balance sheet exposures
754,738 754,738
Any other component
(43,750) (43,750)
C Leverage Ratio (A/B*100%) 8.49% 8.49%