OREANDA-NEWS. January 20, 2012. The Board of Directors of HDFC Bank Limited approved the Bank's (Indian GAAP) accounts for the quarter and nine months ended December 31, 2011 at its meeting held in Mumbai on Thursday, January 19, 2012. The accounts have been subject to a "Limited Review" by the Statutory Auditors of the Bank.

FINANCIAL RESULTS:

Profit & Loss Account: Quarter ended December 31, 2011

For the quarter ended December 31, 2011, the Bank's total income was  8,622.6 crores, an increase of 35.6% over  6,357.8 crores, for the quarter ended December 31, 2010. Net revenues (net interest income plus other income) were  4,536.0 crores for the quarter ended December 31, 2011, as against  3,904.5 crores for the corresponding quarter of the previous year. Interest earned (net of loan origination costs and amortization of premia on investments held in the Held to Maturity (HTM) category) increased by 37.7% from  5,230.0 crores in the quarter ended December 31, 2010 to  7,202.6 crores in the quarter ended December 31, 2011. Net interest income (interest earned less interest expended) for the quarter ended December 31, 2011 grew by 12.2% to  3,116.0 crores, driven by asset growth and a net interest margin (NIM) of 4.1% which remained stable on a sequential basis.

Other income (non-interest revenue) for the quarter ended December 31, 2011 increased by 25.9% to  1,420.0 crores, primarily contributed by fees and commissions of  1,127.6 crores, up 19.6% over  942.8 crores during the quarter ended December 31, 2010. The other two components of other income were foreign exchange & derivative revenues of  365.6 crores ( 216.8 crores for the corresponding quarter ended December 31, 2010) and loss on revaluation / sale of investments of  81.8 crores (loss of  30.7 crores for the corresponding quarter of the previous year).

With the ongoing expansion in the bank's business and extension of the branch distribution network to 341 new cities, operating expenses, for the quarter ended December 31, 2011 were up 17.8% to  2,158.0 crores. The core cost to income ratio was therefore at 46.7% as against 46.5% for the quarter ended December 31, 2010. With stable asset quality, provision and contingences for the quarter ended December 31, 2011 were  329.2 crores (against  465.9 crores for the corresponding quarter ended December 31, 2010), comprising primarily of loan loss provision of  289.3 crores

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

(against  292.9 crores for the corresponding quarter ended December 31, 2010). After providing  619.1 crores for taxes, the Bank earned a Net Profit of  1,429.7 crores, an increase of 31.4% over the corresponding quarter ended December 31, 2010.

Balance Sheet: As of December 31, 2011

The Bank's total balance sheet size increased to  335,487 crores as of December 31, 2011. Total deposits were  232,508 crores, up by 21.0% over December 31, 2010, primarily driven by a 15.2% growth in savings deposits to  70,330 crores. Core CASA deposit adjusted for one-off current account balance of approx  4000 crores was at 47.7% of total deposit as at December 31, 2011. Gross advances grew by 21.9% over December 31, 2010 to  195,788 crores, with the retail loans accounting for 51.3% of total loans.

Nine Months ended December 31, 2011

For the nine months ended December 31, 2011, the Bank earned total income of  23,650.0 crores as against  17,539.1 crores in the corresponding period of the previous year. Net revenues (net interest income plus other income) for the nine months ended December 31, 2011 increased by  1,877.1 crores to  12,660.2 crores. Net Profit for the nine months ended December 31, 2011 was  3,714.0 crores, up by 32.1% over the corresponding nine months ended December 31, 2010.

Capital Adequacy:

The Bank's total Capital Adequacy Ratio (CAR) as at December 31, 2011 (computed as per Basel 2 guidelines) remained strong at 16.3%, against the regulatory minimum of 9%. Tier-I CAR was 11.2% as of December 31, 2011.

As of December 31, 2011, the Bank's distribution network was 2,201 branches and 7,110 ATMs in 1,174 cities as against 1,780 branches and 5,121 ATMs in 833 cities as of December 31, 2010.

Asset Quality:

Portfolio quality as of December 31, 2011 remained healthy with gross non-performing assets (NPAs) at 1.0% of gross advances and net non-performing assets at 0.2% of net advances (as against 1.1% gross NPA and 0.2% net NPA ratios as of December 31, 2010). The Bank's

Network:

provisioning policies for specific loan loss provisions remained higher than regulatory requirements. The NPA provision coverage ratio (excluding write-offs, technical or otherwise) was at 80.3% as of December 31, 2011. Total restructured assets were 0.4% of the bank's gross advances as of December 31, 2011. Of these, restructured advances categorized as standard assets were 0.1% of the Bank's gross advances.