OREANDA-NEWS. The Board of Directors of HDFC Bank Limited approved the Bank's (Indian GAAP) accounts for the quarter and year ended March 31, 2014, at their meeting held in Mumbai on Tuesday, April 22, 2014. Both the quarterly and annual accounts have been audited by the statutory auditors of the Bank.

FINANCIAL RESULTS:

Profit & Loss Account: Year ended March 31, 2014

For the year ended March 31, 2014, the Bank earned total income of INR 49,055.2 crores. Net revenues (net interest income plus other income) for the year ended March 31, 2014 were INR 26,402.3 crores, up by 16.5% over INR 22,663.7 crores for the year ended March 31, 2013. For the year ended March 31, 2014, the net interest margin was 4.4% as against 4.5% for the year ended March 31, 2013. Cost to income ratio was at 45.6% for the year ended March 31, 2014, as against 49.6% for the previous year.

The Bank's profit before tax was INR 12,772.1 crores, an increase of 31.0% over the year ended March 31, 2013. With the effective tax rate for the year at 33.6% as against 31.0% for the previous year, the net profit for year ended March 31, 2014 was INR 8,478.4 crores, up 26.0%, over the year ended March 31, 2013. Consolidated net profit of the Bank increased by 27.3% to INR 8,743.5 crores for the year ended March 31, 2014.

Profit & Loss Account: Quarter ended March 31, 2014

The Bank's total income for the quarter ended March 31, 2014 was INR 12,790.0 crores, an increase of 14.9% over INR 11,127.5 crores for the quarter ended March 31, 2013. Net revenues were at INR 6,954.1 crores for the quarter ended March 31, 2014 as against INR 6,098.9 crores for the corresponding quarter of the previous year. Net interest income (interest earned less interest expended) for the quarter ended March 31, 2014 accounted for 71.2% of net revenues and grew by 15.3% to INR 4,952.6 crores from INR 4,295.3 crores for the quarter ended March 31, 2013, driven by average asset growth of 20.3% and a net interest margin for the quarter of 4.4%.

Other income (non-interest revenue) at INR 2,001.4 crores was 28.8% of the net revenues for the quarter ended March 31, 2014 and grew by 11.0% over INR 1,803.6 crores in the corresponding quarter ended March 31, 2013. The four components of other income for the quarter ended March 31, 2014 were fees & commissions of INR 1,521.2 crores 1,382.6 crores in the corresponding quarter of the previous year), foreign exchange & derivatives revenue of INR 252.1 crores 201.4 crores for the corresponding quarter of the previous year), gain on revaluation / sale of investments of INR 33.3 crores 64.9 crores for the quarter ended March 31, 2013) and miscellaneous income including recoveries of INR 194.8 crores 154.7 crores for the corresponding quarter of the previous year).

Operating expenses for the quarter were INR 3,174.7 crores, an increase of 1.2% over INR 3,136.2 crores during the corresponding quarter of the previous year. The cost-to-income ratio for the quarter was at 45.7% as against 51.4% for the corresponding quarter ended March 31, 2013. With asset quality remaining stable during the quarter, provisions and contingencies were INR 286.1 crores for the quarter ended March 31, 2014 as against INR 300.5 crores for the corresponding quarter ended March 31, 2013.

The profit before tax was INR 3,493.2 crores, an increase of 31.2% over INR 2,662.2 crores for the quarter ended March 31, 2013. After providing INR 1,166.7 crores for taxation (effective tax rate of 33.4% against 29.0% for the corresponding quarter ended March 31, 2013), the Bank earned a net profit of INR 2,326.5 crores, an increase of 23.1% over the quarter ended March 31, 2013.

Balance Sheet: As of March 31, 2014

Total deposits as of March 31, 2014 were INR 367,337 crores, an increase of 24.0% over March 31, 2013. Savings account deposits grew 16.9% over the previous year to reach INR 103,133 crores. Current account deposits grew 17.5% over the previous year to reach INR 61,488 crores. CASA deposits were 44.8% of total deposits as on March 31, 2014.

Advances as of March 31, 2014 were INR 303,000 crores, an increase of 26.4% over March 31, 2013. The domestic loan mix between retail : wholesale is 53:47. Total advances in overseas branches as of March 31, 2014 were at 8% of the total advances as against 4% as of March 31, 2013. Adjusted for the one time increase in FCNR deposits swapped with RBI under the special window in the quarter ended December 31, 2013, and the related foreign currency loans, core deposits and advances growth for the year was 16.9% and 21.8% respectively.

Capital Adequacy:

The Bank's total Capital Adequacy Ratio (CAR) as at March 31, 2014 (computed as per Basel III guidelines) stood at 16.1% as against a regulatory requirement of 9%. Of this, Tier-I CAR was 11.8%.

DIVIDEND

The Board of Directors recommended a dividend of INR 6.85 per equity share of INR 2 for the year ended March 31, 2014, as against INR 5.5 per equity share of INR 2 for the previous year. This would be subject to approval by the shareholders at the next annual general meeting.

NETWORK

The Bank has continued its branch expansion adding 341 branches in the year ended March 31, 2014, of which 230 of these branches are in unbanked locations. As of March 31, 2014, the Bank's distribution network was at 3,403 branches and 11,256 ATMs in 2,171 cities / towns as against 3,062 branches and 10,743 ATMs in 1,845 cities / towns as of March 31, 2013. 55% of the total branches are now in semi-urban and rural areas.

ASSET QUALITY

Gross non-performing assets (NPAs) were at 0.98% of gross advances as on March 31, 2014, as against 1.01% as on December 31, 2013 and 0.97% as on March 31, 2013. Net non-performing assets were at 0.3% of net advances as on March 31, 2014. Total restructured loans (including applications under process for restructuring) were at 0.2% of gross advances as of March 31, 2014.