OREANDA-NEWS. The Board of Directors of HDFC Bank Limited approved the Bank's (Indian GAAP) accounts for the quarter ended June 30, 2014, at their meeting held in Mumbai on Monday, July 21, 2014. The accounts have been subject to a 'Limited Review' by the statutory auditors of the Bank.

FINANCIAL RESULTS:

Profit & Loss Account: Quarter ended June 30, 2014

For the quarter ended June 30, 2014, the Bank's total income was 13,070.7 crores and net revenues (net interest income plus other income) were at 7,022.2 crores. Core net revenues, excluding the impact of bond gains, were at 6,997.2 crores for the quarter ended June 30, 2014, an increase of 13.9% over 6,144.8 crores in the corresponding quarter of the previous year. Interest earned increased by 16.1% from 9,663.0 crores for the quarter ended June 30, 2013 to 11,220.1 crores for the quarter ended June 30, 2014. Net interest income (interest earned less interest expended) for the quarter ended June 30, 2014 accounted for 74% of net revenues and grew by 17.0% to 5,171.6 crores, from 4,418.7 crores for the quarter ended June 30, 2013. Net interest margin for the quarter was at 4.4% as against 4.4% for the quarter ended March 31, 2014 and as against 4.6% for the corresponding quarter ended June 30, 2013.

Other income (non-interest revenue) at 1,850.6 crores was 26% of the net revenues for the quarter ended June 30, 2014. The four components of other income for the quarter ended June 30, 2014 were fees & commissions of 1,406.5 crores (` 1,284.5 crores in the corresponding quarter of the previous year), foreign exchange & derivatives revenue of 224.2 crores (` 314.3 crores for the corresponding quarter of the previous year), gain on revaluation / sale of investments of 25.0 crores (` 199.5 crores for the quarter ended June 30, 2013) and miscellaneous income including recoveries of 195.0 crores (` 127.3 crores for the corresponding quarter of the previous year).

Operating expenses for the quarter were 3,178.4 crores, an increase of 4.6% over 3,038.2 crores during the corresponding quarter of the previous year. The cost-to-income ratio for the quarter was at 45.3% as against 47.9% for the corresponding quarter ended June 30, 2013. The core operating profit was at 3,818.8 crores, an increase of 22.9% over 3,106.6 crores for the quarter ended June 30, 2013.

Provisions and contingencies (consisting of specific loan loss and general provisions) were 482.8 crores for the quarter ended June 30, 2014 as against 527.1 crores for the corresponding quarter ended June 30, 2013. After providing 1,128.0 crores for taxation, the Bank earned a net profit of 2,233.0 crores, an increase of 21.1% over the quarter ended June 30, 2013.

Balance Sheet: As of June 30, 2014

Advances as of June 30, 2014 were 312,109 crores, an increase of 20.7% over June 30, 2013. The domestic loan mix between retail : wholesale is 52:48. Total advances in overseas branches as of June 30, 2014 were at 7% of the total advances as against 4% as of June 30, 2013. Total deposits as of June 30, 2014 were 372,074 crores, an increase of 22.7% over June 30, 2013. Savings account deposits grew 18.1% over the previous year to reach 105,639 crores. Current account deposits grew 18.0% over the previous year to reach 54,348 crores. CASA deposits were 43.0% of total deposits as on June 30, 2014.

Capital Adequacy:

The Bank's total Capital Adequacy Ratio (CAR) as per Basel III guidelines, was at 15.1% as at June 30, 2014 (15.5% as at June 30, 2013) as against a regulatory requirement of 9%. Tier-I CAR was at 11.1% as on June 30, 2014 compared to 10.5% as at June 30, 2013.

NETWORK

As of June 30, 2014, the Bank's distribution network was at 3,488 branches and 11,426 ATMs in 2,231 cities / towns an increase of 369 branches and 338 ATMs over 3,119 branches and 11,088 ATMs in 1,891 cities /towns as of June 30, 2013.

ASSET QUALITY

Gross non-performing assets (NPAs) were at 1.07% of gross advances as on June 30, 2014, as against 1.04% as on June 30, 2013. Net non-performing assets were at 0.3% of net advances as on June 30, 2014. Total restructured loans (including applications under process for restructuring) were at 0.2% of gross advances as of June 30, 2014 as against 0.2% as of June 30, 2013.