HDFC Bank : Financial Results for Quarter and Half Year ended September 30, 2020

HDFC BANK LIMITED

CIN : L65920MH1994PLC080618

Sandoz House, Shivsagar Estate, Dr. Annie Besant Road, Worli, Mumbai 400 018.

Website: https://www.hdfcbank.com, Tel.: [phone], Fax: [phone]

	AUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED SEPTEMBER 30, 2020
							(` in lac)
			Quarter ended		Half year ended	Year ended
		30.09.2020	30.06.2020	30.09.2019	30.09.2020	30.09.2019	31.03.2020
	Particulars
	Audited	Unaudited	Audited	Audited	Audited	Audited
		(Refer note 5)		(Refer note 5)
1	Interest Earned (a)+(b)+(c)+(d)	2997697	3037797	2816628	6035494	5555787	11481265
	a) Interest / discount on advances / bills	2340485	2403737	2251398	4744222	4431867	9178788
	b) Income on investments	561839	559764	509169	1121603	1033948	2063332
	c) Interest on balances with Reserve Bank of India and other	84156	62648	41642	146804	59162	182893
	inter bank funds
	d) Others	11217	11648	14419	22865	30810	56252
2	Other Income	609245	407531	558872	1016776	1055897	2326082
3	Total Income (1)+(2)	3606942	3445328	3375500	7052270	6611684	13807347
4	Interest Expended	1420058	1471255	1465124	2891313	2874858	5862640
5	Operating Expenses (i)+(ii)	805506	691146	740568	1496652	1452294	3069752
	i) Employees cost	254238	251344	235507	505582	457245	952567
	ii) Other operating expenses	551268	439802	505061	991070	995049	2117185
6 Total Expenditure (4)+(5) (excluding Provisions and	2225564	2162401	2205692	4387965	4327152	8932392
	Contingencies)
7	Operating Profit before Provisions and Contingencies (3)-(6)	1381378	1282927	1169808	2664305	2284532	4874955
8 Provisions (other than tax) and Contingencies	370350	389152	270068	759502	531434	1214239
9	Exceptional Items	-	-	-	-	-	-
10	Profit / (Loss) from Ordinary Activities before tax (7)-(8)-(9)	1011028	893775	899740	1904803	1753098	3660716
11	Tax Expense	259717	227913	265241	487630	561783	1034984
12	Net Profit / (Loss) from Ordinary Activities after tax (10)-(11)	751311	665862	634499	1417173	1191315	2625732
13 Extraordinary items (net of tax expense)	-	-	-	-	-	-
14	Net Profit / (Loss) for the period (12)-(13)	751311	665862	634499	1417173	1191315	2625732
15 Paid up equity share capital (Face Value of ` 1/- each)	55037	54903	54708	55037	54708	54833
16	Reserves excluding revaluation reserves						17043769
17	Analytical Ratios
	(i) Percentage of shares held by Government of India	Nil	Nil	Nil	Nil	Nil	Nil
	(ii) Capital Adequacy Ratio	19.1%	18.9%	17.5%	19.1%	17.5%	18.5%
	(iii) Earnings per share (EPS) (`) (Face Value of ` 1/- each)
	(a) Basic EPS before & after extraordinary items (net of tax	13.7	12.1	11.6	25.8	21.8	48.0
	expense) - not annualized
	(b) Diluted EPS before & after extraordinary items (net of tax	13.6	12.1	11.5	25.7	21.6	47.7
	expense) - not annualized
	(iv) NPA Ratios
	(a) Gross NPAs	1130460	1377346	1250815	1130460	1250815	1264997
	(b) Net NPAs	175608	327996	379095	175608	379095	354236
	(c) % of Gross NPAs to Gross Advances	1.08%	1.36%	1.38%	1.08%	1.38%	1.26%
	(d) % of Net NPAs to Net Advances	0.17%	0.33%	0.42%	0.17%	0.42%	0.36%
	(v) Return on assets (average) - not annualized	0.48%	0.44%	0.50%	0.92%	0.96%	2.01%

Regd. Office : HDFC Bank Ltd., HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai - 400013.

Segment information in accordance with the Accounting Standard 17 - Segment Reporting of the operating segments of the Bank is as under:

						(` in lac)
		Quarter ended		Half year ended	Year ended
Particulars	30.09.2020	30.06.2020	30.09.2019	30.09.2020	30.09.2019	31.03.2020
Audited	Unaudited	Audited	Audited	Audited	Audited
	(Refer note 5)		(Refer note 5)

• Segment Revenue

a)	Treasury	809877	800126	627540	1610003	1256732	2655844
b)	Retail Banking	2768365	2710162	2710078	5478527	5203007	10799994
c)	Wholesale Banking	1391263	1418359	1502943	2809622	3008904	6113445
d)	Other Banking Operations	496402	389683	434503	886085	877468	1903341
e)	Unallocated	-	-	-	-	66	219
	Total	5465907	5318330	5275064	10784237	10346177	21472843
	Less: Inter Segment Revenue	1858965	1873002	1899564	3731967	3734493	7665496
	Income from Operations	3606942	3445328	3375500	7052270	6611684	13807347

• Segment Results

a)	Treasury	192361	250517	69521	442878	147674	346277
b)	Retail Banking	265518	222005	402364	487523	709078	1294246
c)	Wholesale Banking	345316	364445	300691	709761	632834	1412109
d)	Other Banking Operations	247518	97376	169931	344894	349578	778463
e)	Unallocated	(39685)	(40568)	(42767)	(80253)	(86066)	(170379)
	Total Profit Before Tax	1011028	893775	899740	1904803	1753098	3660716

• Segment Assets

a)	Treasury	48929119	46153925	34321814	48929119	34321814	45724091
b)	Retail Banking	47695525	46899518	45996296	47695525	45996296	48427074
c)	Wholesale Banking	57446053	54979292	45845204	57446053	45845204	52056701
d)	Other Banking Operations	6053624	5664473	5504158	6053624	5504158	6050057
e)	Unallocated	818482	813123	839726	818482	839726	793204
	Total	160942803	154510331	132507198	160942803	132507198	153051127

• Segment Liabilities

a)	Treasury	9236909	7798899	4374217	9236909	4374217	10201209
b)	Retail Banking	100454226	96820706	81524711	100454226	81524711	90725810
c)	Wholesale Banking	29861663	29166649	27977539	29861663	27977539	31762887
d)	Other Banking Operations	552824	523185	553999	552824	553999	503243
e)	Unallocated	2225940	2405425	2500439	2225940	2500439	2759376
	Total	142331562	136714864	116930905	142331562	116930905	135952525

• Capital Employed

	(Segment Assets - Segment Liabilities)
a)	Treasury	39692210	38355026	29947597	39692210	29947597	35522882
b)	Retail Banking	(52758701)	(49921188)	(35528415)	(52758701)	(35528415)	(42298736)
c)	Wholesale Banking	27584390	25812643	17867665	27584390	17867665	20293814
d)	Other Banking Operations	5500800	5141288	4950159	5500800	4950159	5546814
e)	Unallocated	(1407458)	(1592302)	(1660713)	(1407458)	(1660713)	(1966172)
	Total	18611241	17795467	15576293	18611241	15576293	17098602

Business Segments have been identified and reported taking into account the target customer profile, the nature of products and services, the differing risks and returns, the organisation structure, the internal business reporting system and the guidelines prescribed by the RBI.

Notes :

• Statement of Assets and Liabilities as at September 30, 2020 is given below:
  Particulars

(` in lac)

As at As at As at

30.09.2020 30.09.2019 31.03.2020

Audited Audited Audited

CAPITAL AND LIABILITIES
Capital	55037	54708	54833
Reserves and Surplus	18556204	15521585	17043769
Deposits	122931039	102161494	114750231
Borrowings	13258005	9223621	14462854
Other Liabilities and Provisions	6142518	5545790	6739440
Total	160942803	132507198	153051127
ASSETS
Cash and Balances with Reserve Bank of India	9945296	5578886	7220512
Balances with Banks and Money at Call and Short notice	857815	1768886	1441360
Investments	41396511	30714795	39182666
Advances	103833513	89698377	99370288
Fixed Assets	455523	411259	443191
Other Assets	4454145	4334995	5393110
Total	160942803	132507198	153051127

• Statement of Cash flow as at September 30, 2020 is given below:

Particulars

Cash flows from / (used in) operating activities:

(` in lac)

Half year ended Year ended 30.09.2020 30.09.2019 31.03.2020

Audited Audited Audited

Profit before income tax	1904803	1753098	3660716
Adjustments for:
Depreciation on fixed assets	62117	61412	119585
(Profit) / Loss on revaluation of investments	116124	(19666)	70211
Amortisation of premium on held to maturity investments	36453	21580	50141
(Profit) / loss on sale of fixed assets	(22)	1053	832
Provision / charge for non performing assets	403491	440256	935236
Provision for standard assets and contingencies	361459	102499	305158
Dividend from subsidiaries	(8506)	(21865)	(42372)
	2875919	2338367	5099507
Adjustments for:
(Increase) / decrease in investments	(2179312)	(1658420)	(9992161)
(Increase) / decrease in advances	(4868124)	(8197513)	(18364046)
Increase / (decrease) in deposits	8180810	9847400	22436137
(Increase) / decrease in other assets	1030351	658756	(718012)
Increase / (decrease) in other liabilities and provisions	(1145992)	(69328)	919400
	3893652	2919262	(619175)
Direct taxes paid (net of refunds)	(583540)	(641737)	(1049802)
Net cash flow from / (used in) operating activities	3310112	2277525	(1668977)
Cash flows used in investing activities:
Purchase of fixed assets	(68307)	(66733)	(154688)
Proceeds from sale of fixed assets	313	901	1824
Dividend from subsidiaries	8506	21865	42372
Net cash flow used in investing activities	(59488)	(43967)	(110492)
Cash flows from / (used in) financing activities:
Proceeds from issue of share capital, net of issue expenses	105900	113082	184868
Redemption of Tier II capital bonds	(110500)	-	-
Increase / (decrease) in other borrowings	(1094347)	(2484893)	2754341
Dividend paid during the period (including tax on dividend)	-	(654030)	(654030)
Net cash flow from / (used in) financing activities	(1098947)	(3025841)	2285179
Effect of exchange fluctuation on translation reserve	(10438)	5292	21399
Net increase / (decrease) in cash and cash equivalents	2141239	(786991)	527109
Cash and cash equivalents as at April 1st	8661872	8134763	8134763
Cash and cash equivalents as at the period end	10803111	7347772	8661872

• The above financial results have been approved by the Board of Directors at its meeting held on October 17, 2020. The financial results for the quarter and half year ended September 30, 2020 have been subjected to an audit by the statutory auditors of the Bank. The report thereon is unmodified.

• The Bank has applied its significant accounting policies in the preparation of these financial results consistent with those followed in the annual financial statements for the year ended March 31, 2020.

• The figures for the second quarter in each of the financial years are the balancing figures between audited figures in respect of the half year end and the published year to date figures upto the end of the first quarter of the respective financial year.

• During the quarter and half year ended September 30, 2020, the Bank allotted 1,34,25,596 and 2,04,17,696 equity shares respectively pursuant to the exercise of options under the approved employee stock option schemes.

• Consequent to the outbreak of COVID-19 pandemic, the Indian government had announced a lockdown in March 2020. Subsequently, the lockdown has been lifted by the government for certain activities in a phased manner outside specified containment zones.
  The impact of COVID-19, including changes in customer behaviour and pandemic fears, as well as restrictions on business and individual activities, has led to significant volatility in global and Indian financial markets and a significant decrease in global and local economic activity, which may persist even after the restrictions related to the COVID-19 outbreak are lifted. While there has been some improvement in economic activities during the current quarter, the continued slowdown has led to a decrease in loan originations, the sale of third party products, the use of credit and debit cards by customers and the efficiency in collection efforts. The slowdown may lead to a rise in the number of customer defaults and consequently an increase in provisions thereagainst.
  The extent to which the COVID-19 pandemic will continue to impact the Bank's results will depend on future developments, which are highly uncertain, including, among other things, any new information concerning the severity of the COVID-19 pandemic and any action to contain its spread or mitigate its impact whether government- mandated or elected by us.
  The Bank holds provisions as at September 30, 2020 against the potential impact of COVID-19 based on the information available at this point in time. The provisions held by the Bank are in excess of the RBI prescribed norms.

• In order to mitigate the burden of debt servicing brought about by disruptions on account of COVID-19 pandemic and to ensure the continuity of viable businesses, RBI through its circulars dated March 27, 2020 and April 17, 2020, permitted banks to grant a moratorium, on the payment of installments and / or interest, falling due between March 1, 2020 and May 31, 2020, to their borrowers classified as standard even if overdue, as on February 29, 2020. This period was extended by RBI till August 31, 2020 through its circular dated May 23, 2020. The Bank accordingly extended the moratorium option to its borrowers in accordance with its Board approved policies. For all such accounts where the moratorium is granted, the asset classification shall remain stand still during the moratorium period (i.e. the number of days past- due shall exclude the moratorium period for the purposes of determining whether an asset is non-performing).
  The quantitative disclosures as required by RBI circular dated April 17, 2020 for the half year ended September 30, 2020 are given below:

Particulars	(` in crore)
Respective amounts in SMA/overdue categories, where the moratorium/deferment was extended, in terms of paragraph 2 and 3 of the circular (as of	15,743.77
February 29, 2020)
Term Loan Installments: ` 11,697.16 crore
Cash Credit / Overdraft: ` 4,046.61 crore
Respective amount where asset classification benefit is extended *	4,639.50
Term Loan Installments: ` 2,898.96 crore
Cash Credit / Overdraft: ` 1,740.54 crore
Provisions made in terms of para 5 of the circular	620.00
Provisions adjusted against slippages in terms of paragraph 6 of the circular	-
Residual provisions as of September 30, 2020 in terms of paragraph 6 of the circular	620.00

* as of September 30, 2020 in respect of such accounts.

• The Honourable Supreme Court of India (Hon'ble SC), in a public interest litigation (Gajendra Sharma Vs. Union of India & Anr), vide an interim order dated September 03, 2020 ("Interim Order"), has directed that accounts which were not declared NPA till August 31, 2020 shall not be declared as NPA till further orders. Basis the said interim order, the Bank has not classified any account which was not NPA as of August 31, 2020 as per the RBI IRAC norms, as NPA after August 31, 2020. Further, in light of the Interim Order, even accounts that would have otherwise been classified as NPA post August 31, 2020 have not been and will not be, classified as NPA till such time that the Hon'ble SC rules finally on the matter.
  However, if the Bank had classified borrower accounts as NPA after August 31, 2020, the Bank's proforma Gross NPA ratio and proforma Net NPA ratio would have been 1.37% and 0.35% respectively. Pending disposal of the case, the Bank, as a matter of prudence has, in respect of these accounts made a contingent provision, which is included in 'Provisions (other than tax) and Contingencies'.

1. Other income relates to income (including commission) from non-fund based banking activities, fees, earnings from foreign exchange and derivative transactions, profit and loss (including revaluation) from investments, dividends from subsidiaries and recoveries from accounts previously written off.
2. Other operating expenses include commission paid to sales agents of ` 612.38 crore (previous period: ` 741.93 crore) and ` 988.86 crore (previous period: ` 1,461.76 crore) for the quarter and half year ended September 30, 2020 respectively.
3. Figures of the previous periods have been regrouped / reclassified wherever necessary to conform to current period's classification.
4. ` 10 lac = ` 1 million ` 10 million = ` 1 crore

Place : Mumbai	Aditya Puri
Date : October 17, 2020	Managing Director

HDFC BANK LIMITED

CIN : L65920MH1994PLC080618

Sandoz House, Shivsagar Estate, Dr. Annie Besant Road, Worli, Mumbai 400 018.

Website: https://www.hdfcbank.com, Tel.: [phone], Fax: [phone]

	AUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED SEPTEMBER 30, 2020
							(` in lac)
			Quarter ended		Half year ended	Year ended
		30.09.2020	30.06.2020	30.09.2019	30.09.2020	30.09.2019	31.03.2020
	Particulars
	Audited	Unaudited	Audited	Audited	Audited	Audited
		(Refer note 5)		(Refer note 5)
1	Interest Earned (a)+(b)+(c)+(d)	3174227	3235161	3001688	6409388	5919333	12218930
	a) Interest / discount on advances / bills	2511976	2597800	2433399	5109776	4789449	9907963
	b) Income on investments	562245	559941	509138	1122186	1034180	2057273
	c) Interest on balances with Reserve Bank of India and other	85302	64158	42505	149460	60824	186877
	inter bank funds
	d) Others	14704	13262	16646	27966	34880	66817
2	Other Income	669620	434698	611408	1104318	1126208	2487898
3	Total Income (1)+(2)	3843847	3669859	3613096	7513706	7045541	14706828
4	Interest Expended	1503318	1560849	1555844	3064167	3053559	6213743
5	Operating Expenses (i)+(ii)	860746	740608	805233	1601354	1565046	3303605
	i) Employees cost	334885	330100	319479	664985	621224	1292013
	ii) Other operating expenses	525861	410508	485754	936369	943822	2011592
6	Total Expenditure (4)+(5) (excluding Provisions and	2364064	2301457	2361077	4665521	4618605	9517348
	Contingencies)
7	Operating Profit before Provisions and Contingencies (3)-(6)	1479783	1368402	1252019	2848185	2426936	5189480
8	Provisions (Other than tax) and Contingencies	442013	434451	309120	876464	600554	1369994
9	Exceptional Items	-	-	-	-	-	-
10	Profit / (Loss) from ordinary activities before tax (7)-(8)-(9)	1037770	933951	942899	1971721	1826382	3819486
11	Tax Expense	266633	239863	278019	506496	592422	1089859
12	Net Profit / (Loss) from Ordinary Activities after tax (10)-(11)	771137	694088	664880	1465225	1233960	2729627
13	Extraordinary items (net of tax expense)	-	-	-	-	-	-
14	Net Profit / (Loss) for the period (12)-(13)	771137	694088	664880	1465225	1233960	2729627
15	Less: Share of Profit / (Loss) of minority shareholders	851	1364	1077	2215	2551	4231
16	Consolidated Net Profit / (Loss) for the period (14)-(15)	770286	692724	663803	1463010	1231409	2725396
17	Paid up equity share capital (Face Value of ` 1/- each)	55037	54903	54708	55037	54708	54833
18	Reserves excluding revaluation reserves						17581038
19	Analytical Ratios
	(i) Percentage of shares held by Government of India	Nil	Nil	Nil	Nil	Nil	Nil
	(ii) Earnings per share (EPS) (`) (Face Value of ` 1/- each)
	(a) Basic EPS before & after extraordinary items (net of tax	14.0	12.6	12.1	26.6	22.5	49.8
	expense) - not annualized
	(b) Diluted EPS before & after extraordinary items (net of tax	14.0	12.6	12.0	26.5	22.4	49.5
	expense) - not annualized

Regd. Office : HDFC Bank Ltd., HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai - 400013.

Consolidated Segment information in accordance with the Accounting Standard 17 - Segment Reporting of the operating segments of the Bank is as under:

						(` in lac)
		Quarter ended		Half year ended	Year ended
Particulars	30.09.2020	30.06.2020	30.09.2019	30.09.2020	30.09.2019	31.03.2020
Audited	Unaudited	Audited	Audited	Audited	Audited
	(Refer note 5)		(Refer note 5)

• Segment Revenue

a)	Treasury	809877	800126	627540	1610003	1256732	2655844
b)	Retail Banking	2768365	2710162	2710078	5478527	5203007	10799994
c)	Wholesale Banking	1391263	1418359	1502943	2809622	3008904	6113445
d)	Other Banking Operations	733307	614214	672099	1347521	1311325	2802822
e)	Unallocated	-	-	-	-	66	219
	Total	5702812	5542861	5512660	11245673	10780034	22372324
	Less: Inter Segment Revenue	1858965	1873002	1899564	3731967	3734493	7665496
	Income from Operations	3843847	3669859	3613096	7513706	7045541	14706828

• Segment Results

a)	Treasury	192361	250517	69521	442878	147674	346277
b)	Retail Banking	265518	222005	402364	487523	709078	1294246
c)	Wholesale Banking	345316	364445	300691	709761	632834	1412109
d)	Other Banking Operations	274260	137552	213090	411812	422862	937233
e)	Unallocated	(39685)	(40568)	(42767)	(80253)	(86066)	(170379)
	Total Profit Before Tax and Minority Interest	1037770	933951	942899	1971721	1826382	3819486

• Segment Assets

a)	Treasury	48929119	46153925	34321814	48929119	34321814	45724091
b)	Retail Banking	47695525	46899518	45996296	47695525	45996296	48427074
c)	Wholesale Banking	57446053	54979292	45845204	57446053	45845204	52056701
d)	Other Banking Operations	11107044	10779377	10439010	11107044	10439010	11081971
e)	Unallocated	818482	813123	839726	818482	839726	793204
	Total	165996223	159625235	137442050	165996223	137442050	158083041

• Segment Liabilities

a)	Treasury	9236909	7798899	4374217	9236909	4374217	10201209
b)	Retail Banking	100454226	96820706	81524711	100454226	81524711	90725810
c)	Wholesale Banking	29861663	29166649	27977539	29861663	27977539	31762887
d)	Other Banking Operations	4963113	5014782	4954546	4963113	4954546	4940224
e)	Unallocated	2225940	2405425	2500439	2225940	2500439	2759376
	Total	146741851	141206461	121331452	146741851	121331452	140389506

• Capital Employed

	(Segment Assets - Segment Liabilities)
a)	Treasury	39692210	38355026	29947597	39692210	29947597	35522882
b)	Retail Banking	(52758701)	(49921188)	(35528415)	(52758701)	(35528415)	(42298736)
c)	Wholesale Banking	27584390	25812643	17867665	27584390	17867665	20293814
d)	Other Banking Operations	6143931	5764595	5484464	6143931	5484464	6141747
e)	Unallocated	(1407458)	(1592302)	(1660713)	(1407458)	(1660713)	(1966172)
	Total	19254372	18418774	16110598	19254372	16110598	17693535

Business Segments have been identified and reported taking into account the target customer profile, the nature of products and services, the differing risks and returns, the organisation structure, the internal business reporting system and the guidelines prescribed by the RBI.

Notes :

• Consolidated Statement of Assets and Liabilities as at September 30, 2020 is given below:

			(` in lac)
	As at	As at	As at
Particulars	30.09.2020	30.09.2019	31.03.2020
	Audited	Audited	Audited
CAPITAL AND LIABILITIES
Capital	55037	54708	54833
Reserves and Surplus	19139308	16003637	17581038
Minority Interest	60027	52253	57664
Deposits	122826597	102081657	114620714
Borrowings	17389822	13425949	18683431
Other Liabilities and Provisions	6525432	5823846	7085361
Total	165996223	137442050	158083041
ASSETS
Cash and balances with Reserve Bank of India	9948423	5583264	7221100
Balances with Banks and Money at Call and Short notice	1012935	1826667	1572910
Investments	41019385	30392751	38930495
Advances	108894763	94743996	104367088
Fixed Assets	474918	429827	462685
Other Assets	4645799	4465545	5528763
Total	165996223	137442050	158083041

• Consolidated Statement of Cash flow as at September 30, 2020 is given below:

			(` in lac)
	Half year ended	Year ended
Particulars	30.09.2020	30.09.2019	31.03.2020
	Audited	Audited	Audited
Cash flows from / (used in) operating activities:
Consolidated profit before income tax	1969506	1823831	3815255
Adjustment for:
Depreciation on fixed assets	66313	65287	127677
(Profit) / Loss on revaluation of investments	116124	(19666)	70211
Amortisation of premium on held to maturity investments	36453	21580	50141
(Profit) / loss on sale of fixed assets	145	1049	819
Provision / charge for non performing assets	487159	512750	1106571
Provision for standard assets and contingencies	401700	103338	305743
	3077400	2508169	5476417
Adjustments for:
(Increase) / decrease in investments	(2054357)	(1703396)	(10107010)
(Increase) / decrease in advances	(5016241)	(8333481)	(18550036)
Increase / (decrease) in deposits	8205883	9831389	22370446
(Increase) / decrease in other assets	971962	620261	(724976)
Increase / (decrease) in other liabilities and provisions	(1149240)	(120862)	935987
	4035407	2802080	(599172)
Direct taxes paid (net of refunds)	(600147)	(619171)	(1087737)
Net cash flow from / (used in) operating activities	3435260	2182909	(1686909)
Cash flows used in investing activities:
Purchase of fixed assets	(72474)	(70093)	(163587)
Proceeds from sale of fixed assets	347	938	1895
Net cash flow used in investing activities	(72127)	(69155)	(161692)
Cash flows from / (used in) financing activities:
Increase in minority interest	2363	2073	7485
Proceeds from issue of share capital, net of issue expenses	105900	113082	184868
Proceeds from issue of Tier I and Tier II capital bonds	-	41500	74350
Redemption of Tier II capital bonds	(110,500)	-	-
Increase / (decrease) in other borrowings	(1183110)	(2388829)	2835804
Dividend paid during the period (including tax on dividend)	-	(658705)	(663059)
Net cash flow from / (used in) financing activities	(1185347)	(2890879)	2439448
Effect of exchange fluctuation on translation reserve	(10438)	5292	21399
Net increase / (decrease) in cash and cash equivalents	2167348	(771833)	612246
Cash and cash equivalents as at April 1st	8794010	8181764	8181764
Cash and cash equivalents as at the period end	10961358	7409931	8794010

• The above financial results represent the consolidated financial results for HDFC Bank Limited and its subsidiaries constituting the 'Group'. These financial results have been approved by the Board of Directors of the Bank at its meeting held on October 17, 2020. The financial results for the quarter and half year ended September 30, 2020 have been subjected to an audit by the statutory auditors of the Bank. The report thereon is unmodified.

• The Group has applied its significant accounting policies in the preparation of these financial results consistent with those followed in the annual financial statements for the year ended March 31, 2020.

• The figures for the second quarter in each of the financial years are the balancing figures between audited figures in respect of the half year end and the published year to date figures upto the end of the first quarter of the respective financial year.

• Consequent to the outbreak of COVID-19 pandemic, the Indian government had announced a lockdown in March 2020. Subsequently, the lockdown has been lifted by the government for certain activities in a phased manner outside specified containment zones.
  The impact of COVID-19, including changes in customer behaviour and pandemic fears, as well as restrictions on business and individual activities, has led to significant volatility in global and Indian financial markets and a significant decrease in global and local economic activity, which may persist even after the restrictions related to the COVID-19 outbreak are lifted. While there has been some improvement in economic activities during the current quarter, the continued slowdown has led to a decrease in loan originations, the sale of third party products, the use of credit and debit cards by customers and the efficiency in collection efforts. The slowdown may lead to a rise in the number of customer defaults and consequently an increase in provisions thereagainst.
  The extent to which the COVID-19 pandemic will continue to impact the Group's results will depend on future developments, which are highly uncertain, including, among other things, any new information concerning the severity of the COVID-19 pandemic and any action to contain its spread or mitigate its impact whether government- mandated or elected by us.
  The Group holds provisions as at September 30, 2020 against the potential impact of COVID-19 based on the information available at this point in time.

• In order to mitigate the burden of debt servicing brought about by disruptions on account of COVID-19 pandemic and to ensure the continuity of viable businesses, RBI through its circulars dated March 27, 2020 and April 17, 2020, permitted banks and non-banking financial companies to grant a moratorium, on the payment of installments and / or interest, falling due between March 1, 2020 and May 31, 2020, to their borrowers classified as standard even if overdue, as on February 29, 2020. This period was extended by RBI till August 31, 2020 through its circular dated May 23, 2020. The Group accordingly extended the moratorium option to its borrowers in accordance with the respective Board approved policies. For all such accounts where the moratorium is granted, the asset classification shall remain stand still during the moratorium period (i.e. the number of days past-due shall exclude the moratorium period for the purposes of determining whether an asset is non-performing). The Group holds provisions thereagainst as per RBI prescribed norms.

• The Honourable Supreme Court of India (Hon'ble SC), in a public interest litigation (Gajendra Sharma Vs. Union of India & Anr), vide an interim order dated September 03, 2020 ("Interim Order"), has directed that accounts which were not declared NPA till August 31, 2020 shall not be declared as NPA till further orders. Basis the said interim order, the Group has not classified any account which was not NPA as of August 31, 2020 as per the RBI IRAC norms, as NPA after August 31, 2020. Further, in light of the Interim Order, even accounts that would have otherwise been classified as NPA post August 31, 2020 have not been and will not be, classified as NPA till such time that the Hon'ble SC rules finally on the matter.
  Pending disposal of the case, the Group, as a matter of prudence has, in respect of these accounts made a contingent provision, which is included in 'Provisions (other than tax) and Contingencies'.

• In accordance with the RBI guidelines, banks are required to make consolidated Pillar 3 disclosures including leverage ratio and liquidity coverage ratio under the Basel III Framework. These disclosures are available on the Bank's website at the following link: http://www.hdfcbank.com/aboutus/basel_disclosures/ default.htm. The disclosures have not been subjected to audit or review by the statutory auditors.

1. Figures of the previous periods have been regrouped / reclassified wherever necessary to conform to current period's classification.
2. ` 10 lac = ` 1 million ` 10 million = ` 1 crore

Place : Mumbai	Aditya Puri
Date : October 17, 2020	Managing Director