MIRA INFORM REPORT

Report Date :

01.10.2013

IDENTIFICATION DETAILS

Name :	HDFC BANK LIMITED

Registered Office :	HDFC Bank House, Senapati Bapat Marg, Lower Parel, West, Mumbai – 400013, Maharashtra

Country :	India

Financials (as on) :	31.03.2013

Date of Incorporation :	30.08.1994

Com. Reg. No.:	11-080618

Capital Investment / Paid-up Capital :	Rs. 4758.838 Millions

CIN No.: [Company Identification No.]	L65920MH1994PLC080618

TAN No.: [Tax Deduction & Collection Account No.]	MUMH03189E / MUMH08037B/ MUMH07347E

PAN No.: [Permanent Account No.]	AAACH2702H

Legal Form :	It is a Public Limited Liability Bank. The banks shares are listed on the Stock Exchanges.

Line of Business :	Subject is engaged in providing a range of banking and financial services including commercial banking and treasury operations.

No. of Employees :	55752 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Aa (75)

RATING		STATUS	PROPOSED CREDIT LINE
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large

Maximum Credit Limit :	USD 1448560000

Status :	Good

Payment Behaviour :	Regular

Litigation :	Exist

Comments :	Subject is an established and a highly successful commercial bank in the private sector. Financial position of the bank is good. Fundamentals are strong and healthy. Trade relations are fair. Payment are regular and as per commitment. The bank can be considered for any normal business dealings under usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

INDIAN ECONOMIC OVERVIEW

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure. Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Lower Tier II Bonds AAA
Rating Explanation	Highest degree of safety and lowest credit risk.
Date	October 25, 2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION DENIED

Management Non-Cooperative. (Tel No.: 91-22-66521000)

LOCATIONS

Registered Office :	HDFC Bank House, Senapati Bapat Marg, Lower Parel, Mumbai – 400013, Maharashtra, India
Tel. No.:	91-22-66521000/ 24901896
Fax No.:	91-22-24960737/ 24960696
E-Mail :	sanjay.dongre@hdfcbank.com gambhir.singh1@hdfcbank.com
Website :	http://www.hdfcbank.com

Branches :	Western Zone Mumbai Patalganga Pune Goa Ahmedabad Dahej Vadodara North Zone New Delhi Chandigarh Ludiana Jalandhar Gurgaon Indore South Zone Hyderabad Secunderabad Vishakhapatnam Cochin Chennai Coimbatore Bangalore East Zone Calcutta

DIRECTORS

As on: 31.03.2013

Name :	Mr. C. M. Vasudev
Designation :	Chairman

Name :	Mrs. Renu Karnad
Designation :	Director

Name :	Mr. Ashim Samanta (upto 18.11.2012)
Designation :	Director

Name :	Dr. Pandit Palande
Designation :	Director

Name :	Mr. Partho Datta
Designation :	Director

Name :	Mr. Bobby Parikh
Designation :	Director

Name :	Mr. A. N. Roy
Designation :	Director

Name :	Mr. Keki Mistry
Designation :	Director

Name :	Mr. Vijay Merchant (appointed on 14.03.2013)
Designation :	Director

Name :	Mr. Aditya Puri
Designation :	Managing Director

Name :	Mr. Harish Engineer
Designation :	Executive Director

Name :	Mr. Paresh Sukthankar
Designation :	Executive Director

KEY EXECUTIVES

Name :	Mr. Sanjay Dongre
Designation :	Executive Vice President (Legal) and Company Secretary

Senior Management Team :	Mr. A Parthasarthy Mr. Abhay Aima Mr. Anil Jaggia Mr. Anil Nath Mr. Bhavesh Zaveri Mr. Jimmy Tata Mr. Kaizad Bharucha Mr. Navin Puri Mr. Rahul Bhagat Mr. Rajender Sehgal Mr. Sashi Jagdishan Mr. V Chakrapani

SHAREHOLDING PATTERN

As on 30.06.2013

Category of Shareholder	No. of Shares	% of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	543216100	27.41
Sub Total	543216100	27.41
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	543216100	27.41
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	93346129	4.71
Financial Institutions / Banks	646393	0.03
Central Government / State Government(s)	452593	0.02
Insurance Companies	111258316	5.61
Foreign Institutional Investors	823929708	41.57
Qualified Foreign Investor	2874	0.00
Sub Total	1029636013	51.95
(2) Non-Institutions
Bodies Corporate	193067371	9.74
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	157818208	7.96
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	46022369	2.32
Qualified Foreign Investor	50	0.00
Any Others (Specify)	12307372	0.62
Non Resident Indians	8495496	0.43
Overseas Corporate Bodies	522010	0.03
Foreign Corporate Bodies	3289696	0.17
Foreign Nationals	170	0.00
Sub Total	409215370	20.65
Total Public shareholding (B)	1438851383	72.59
Total (A)+(B)	1982067483	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	406665702	0.00
Sub Total	406665702	0.00
Total (A)+(B)+(C)	2388733185	0.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in providing a range of banking and financial services including commercial banking and treasury operations.

GENERAL INFORMATION

No. of Employees :

55752 (Approximately)

Bankers :

Reserve Bank of India

Facilities :

BORROWINGS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
I Borrowings in India
i) Reserve Bank of India	2750.000	400.000
ii) Other banks	7246.758	8693.256
iii) Other institutions and agencies	24390.200	28182.425
iv) Upper and lower Tier II capital and innovative perpetual debts	160439.000	105969.000
Total	194825.958	143244.681

II Borrowings outside India*	135240.014	95220.405

TOTAL	330065.972	238465.086

(* Includes upper Tier II debt of Rs. 5428.500 millions (previous year : Rs. 5087.500 millions)

Secured borrowings included in I and II above : Rs. Nil (previous year : Rs. Nil)


Banking Relations :	--

Statutory Auditors
Name :	BSR and Company Chartered Accountants

Promoter	Housing Development Finance Corporation Limited

Enterprises under common control of the promoter:	HDFC Asset Management Company Limited HDFC Developers Limited HDFC Investments Limited GRUH Finance Limited HDFC ERGO General Insurance Company Limited HDFC Ventures Trustee Company Limited Griha Investments HDFC Education and Development Services Private Limited HDFC Property Ventures Limited HDFC Life Pension Fund Management Company Limited HDFC Standard Life Insurance Company Limited HDFC Holdings Limited HDFC Trustee Company Limited HDFC Realty Limited HDFC Venture Capital Limited HDFC Sales Private Limited Credila Financial Services Private Limited HDFC Asset Management Company (Singapore) Pte. Limited Griha Pte Limited HT Parekh Foundation

Subsidiaries:	HDFC Securities Limited HDB Financial Services Limited

Associates:	Atlas Documentary Facilitators Company Private Limited HBL Global Private Limited Centillion Solutions and Services Private Limited (ceased to be an associate from December 31, 2011) International Asset Reconstruction Company Private Limited

Welfare trust of the Bank:	HDB Employees Welfare Trust

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount

2750000000	Equity Shares	Rs. 2/- each	Rs.5500.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

2379419030	Equity Shares	Rs. 2/- each	Rs. 4758.838 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
CAPITAL AND LIABILITIES

Capital	4758.838	4693.377	4652.257
Reserves and surplus	357382.646	294550.358	249111.291
Employees’ stock options (grants) outstanding	0.000	3.020	29.135
Deposits	2962469.846	2467064.459	2085864.054
Borrowings	330065.972	238465.086	143940.610
Other liabilities and provisions	348641.671	374318.690	289928.565

TOTAL	4003318.973	3379094.990	2773525.912

ASSETS

Cash and balances with Reserve Bank of India	146273.990	149910.945	251008.158
Balances with banks and money at call and short notice	126527.699	59466.318	45680.191
Investments	1116135.953	974829.094	709293.656
Advances	2397206.432	1954200.292	1599826.654
Fixed assets	27030.813	23471.940	21706.480
Other assets	190144.086	217216.401	146010.773

TOTAL	4003318.973	3379094.990	2773525.912

Contingent liabilities	7201224.293	8652928.262	5751224.839
Bills for collection	261039.630	186924.956	134284.924

PROFIT & LOSS ACCOUNT

	PARTICULARS		3103.2013	31.03.2012	31.03.2011
	SALES
		Income	350648.736	278741.928	199282.122
		Other Income	68526.226	57836.255	43351.527
		TOTAL	419174.962	336578.183	242633.649

Less	EXPENSES
		Interest expended	192537.521	149895.780	93850.839
		Operating expenses	112361.165	92776.403	71529.141
		Provisions and contingencies	47013.428	42235.093	37989.660
		TOTAL	351912.114	284907.276	203369.640

	PROFIT
		Net profit for the year	67262.848	51670.907	39264.009
		Balance in Profit and Loss account brought forward	83996.470	61742.416	45327.948
		TOTAL	151259.318	113413.323	84591.957

Less	APPROPRIATIONS
		Transfer to Statutory Reserve	16815.712	12917.726	9816.002
		Proposed dividend	13090.810	10090.760	7676.224
		Tax (including cess) on dividend	2224.783	1636.973	1245.275
		Dividend (including tax / cess thereon) pertaining to previous year paid during the year	44.748	21.240	26.484
		Transfer to General Reserve	6726.285	5167.091	3926.401
		Transfer to Capital Reserve	858.498	0.000	3.568
		Transfer to / (from) Investment Reserve Account	176.636	(416.937	155.587
		Balance carried over to Balance Sheet	111321.846	83669.470	61742.416
		TOTAL	151259.318	113413.323	84591.957

	Earnings Per Share (Rs.)
	Basic		28.49	22.11	17.00
	Diluted		28.18	21.91	16.81

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	No
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	----------------------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	Yes
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------------------
26]	Buyer visit details	----------------------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	No
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

LITIGATIONS DETAILS:

CASE DETAILS

BENCH: BOMBAY

Stamp No: FAST/26659/2012 Filing Date: 26.09.2012 Reg. No. FA/1482/2012 Reg. Date 09.10.2012

Petitioner: JANATA SAHAKARIO BANK LIMITED, PUNE Respondent: HDFC BANK LIMITED

Petn. Adv. : BENNY JOSEPH LAW OFFICES Resp. Adv. T.N. TRIPATHI AND CO FOR RESPONDENT

District: Pune

Bench: SINGLE

Status: Admitted(Unready)

Last Date: 03/09/2013 Stage: APPEALS FOR ADMISSION - AFTER NOTICE [CIVIL

SIDE MATTERS]

Last Coram: HONBLE SHRI JUSTICE S.V. GANGAPURWALA

Last Date: 08.07.2013 Stage: APPEALS FOR ADMISSION – AFTER NOTICE

[CIVIL SIDE MATTERS]

Last Coram: HONBLE SHRI JUSTICE S.V. GANGAPURWALA

Act: C.P.C. – (Non – Interlocutory Order)

NOTE: CURRENT MATURITY OF LONG TERM BORROWINGS DETAIL NOT AVAILABLE

INDEX OF CHARGE:

Sr .No	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	90383900	31/01/2004	480,000.00	HDFC BANK LIMITED	SANDOZ HOUSE, MUMBAI, Maharashtra, INDIA	-
2	90383899	26/11/2002	1,039,000.00	HDFC BANK LIMITED	SANDOZ HOUSE, MUMBAI, Maharashtra, INDIA	-
3	90383897	05/10/2001	25,000,000.00	CITI BANK N.A.	30 M.G. ROAD, BANGALORE, Karnataka, INDIA	-
4	90383636	11/04/2001	285,000.00	THE VYSYA BANK LIMITED	HUNSUR BRANCH, HUNSUR, Karnataka, INDIA	-
5	90383635	12/01/2000	2,500,000.00	ABU OHRS COMMERCIAL BANK LIMITED	INFANTRY ROAD, BANGALORE, Karnataka, INDIA	-
6	90383884	31/08/2001 *	1,500,000.00	CANARA BANK	BANGALORE, BANGALORE, Karnataka, INDIA	-
7	90389650	28/09/1999	916,325.00	ORIENTAL BANK OF COMMERCE	M.G. ROAD, MUMBAI, Maharashtra, INDIA	-
8	90383883	16/09/1999	3,000,000.00	KARNATAKA STATE INDUSTRIAL INVESTMENT AND DEVELOPMENT CORPORAT	BANGALORE, BANGALORE, Karnataka, INDIA	-
9	90153591	13/04/1999	25,700,000.00	INDIAN RENEWABLE ENERGY DEVELOPMENT AGENCY LIMITED	1ST FLOOR; INDIA HABITAT CENTRE, LODHI ROAD, NEW DELHI, Delhi - 110003, INDIA	-
10	90383881	09/04/2003 *	9,500,000.00	BANK OF INDIA	BALLARD ESTATE, MUMBAI, Maharashtra, INDIA	-

* Date of modification charge

CONTINGENT LIABILITIES:

Particulars	31.03.2013	31.03.2012
Claims against the bank not acknowledged as debts - taxation	9349.100	13567.900
Claims against the bank not acknowledged as debts - others	3975.400	2876.193
Liability on account of outstanding forward exchange contracts	4467860.687	5648764.494
Liability on account of outstanding derivative contracts	2292213.027	2626390.521
Guarantees given on behalf of constituents :
- In India	162354.571	133170.215
- Outside India	3993.576	436.144
Acceptances, endorsements and other obligations	220595.426	209182.124
Other items for which the bank is contingently liable	40882.506	18540.671
Total	7201224.293	8652928.262

BACKGROUND:

Subject (‘HDFC Bank’ or ‘the Bank’), incorporated in Mumbai, India is a publicly held banking company engaged in providing a range of banking and financial services including commercial banking and treasury operations. The Bank is governed by the Banking Regulation Act, 1949. The Bank has overseas branch operations in Bahrain and Hong Kong.

MANAGEMENT’S DISCUSSIONS AND ANALYSIS

MACRO-ECONOMIC AND INDUSTRY DEVELOPMENTS

It was a challenging year for the Indian economy with lingering concerns over global growth prospects and financial stability weighing on external demand and international funding. Further, local headwinds such as firm inflation, rising interest rates and policy impediments to investment only exacerbated the impact of a shaky global environment on domestic growth. Headline GDP growth as a result is likely to have fallen to 5.0% in FY13 from 6.2% a year ago and 9.3% in FY11.While there was some course correction by way of policy responses both from the government and the central bank their impact will be visible only with a lag. In particular, the government has embraced a path of fiscal consolidation that kept the fiscal deficit target for FY13 below the initial level of 5.1% of GDP and it is likely that the fiscal deficit could drift lower to 4.8% of GDP in FY14.The RBI on the other hand fell back on measured policy easing in FY13 that could gain momentum amidst the prospect of falling inflation amidst weak global commodity prices and subdued domestic demand. That said, macro-stability risks from a large current account deficit which is likely to have reached a record 5.1% of GDP in FY13 and placed the rupee under extreme depreciation pressure could curtail the extent of this easing. On balance, the prospect of some monetary easing going ahead, a normal monsoon and some traction in government capital expenditure could pave the way for a revival in GDP growth to 5.8%-6% in FY14 and could keep India a significant out-performer in the global context.

MISSION, BUSINESS STRATEGY AND APPROACH TO BUSINESS

The Bank’s mission is to be a ‘World Class Indian Bank’, benchmarking itself against international standards and best practices in terms of product offerings, technology, service levels, risk management, audit and compliance. The objective is to continue building sound customer franchises across distinct businesses so as to be a preferred provider of banking services for its target retail and wholesale customer segments, and to achieve a healthy growth in profitability, consistent with the Bank’s risk appetite.

From inception, the Bank’s business philosophy has been based on four core values: Operational Excellence, Customer Focus, Product Leadership and People. During the year, they have added Sustainability as the fifth core value. Based on these cornerstones, it is their aim to build an Indian Bank that meets the financial needs, and provides services of a high quality to its customers across the country.

The Bank is committed to do this while ensuring the highest levels of ethical standards, professional integrity, corporate governance and regulatory compliance. The Bank understands and respects its fiduciary role and responsibility to all stakeholders and strives to meet their expectations. The cardinal principles of independence, accountability, responsibility, transparency, fair and timely disclosures, etc. serve as the basis of their approach to corporate governance. The Bank believes that diversity and independence of the Board, transparent disclosures, shareholder communication and effective regulatory compliance are necessary for creating and sustaining shareholder value. The Bank has infused these principles into all its activities.

The Bank also has a well-documented Code of Ethics / Conduct Policy which defines the high business responsibility and ethical standards to be adhered to while conducting the business of the Bank and mandates compliance with legal and regulatory requirements. Every employee, including senior management has to affirm annually that they will abide by the conduct rules.

Consistent with the mission and approach, the Bank’s business strategy emphasizes the following:

Develop innovative products and services that attract its target customers and address inefficiencies in the Indian financial sector;

Increase its market share in India’s expanding banking and financial services industry by following a disciplined growth strategy focusing on balancing quality and volume growth while delivering high quality customer service;

Leverage its technology platform and open scalable systems to deliver more products to more customers and to control operating costs;

Maintain high risk standards for asset quality through disciplined credit risk management;

Continue to develop products and services that reduce its cost of funds;

Focus on healthy earnings growth and low volatility; and integrate their activities in community development, social responsibility and environmental responsibility with their business practices and operations

FINANCIAL INCLUSION

Over the last few years, the Bank has been working on a number of initiatives to promote Financial Inclusion across identified sections of rural and semi urban, under-banked and un-banked consumers. These initiatives target segments of the population that have limited or no access to the formal banking system by building a robust and sustainable model that provides relevant services and viable timely credit that ultimately results in economically uplifting its customers and substitutes borrowings at usurious rates.

The Bank’s initiatives in the rural or deeper geography dovetails into its financial inclusion plans and also complements its Corporate Social Responsibility initiative where the endeavor has been to provide banking services which are viable both for the customer and the Bank.

The Bank’s financial inclusion initiatives have been integrated across its various businesses, and product groups. As of March 31, 2013 the Bank had brought over 6.4 million households who were hitherto excluded from basic banking services, into the banking fold.

PRESS RELEASE:

HDFC BANK SAYS GOT AN I-T ENQUIRY FOLLOWING COBRAPOST EXPOSE

June 27, 2013

Mumbai, Jun 27 (PTI) Following the Cobra post expose, private sector lender HDFC Bank received an Income Tax enquiry but it was not an assesses in the case.

"Yes, there was a tax enquiry and they had detailed discussions with our people concerned and the tax authorities are satisfied with our responses," bank chairman C M Vasudev told shareholders at the bank's annual general meeting here.

HDFC Bank Managing Director and Chief Executive Aditya Puri, however, clarified that the bank had appeared before the Income Tax department as a witness, and not as a tax assesses.

"We have met the tax authorities. Please remember, we have not met them as a tax assesses, we have met them as a witness," he told reporters.

The Cobra post expose purportedly showed officials of the country's top three private sector lenders -- ICICI Bank, HDFC Bank and Axis Bank -- offering services which violated the existing money laundering and `know your customer'' norms

.
Following this, the I-T department had sent notices to all the three lenders, seeking explanation on their positions for possible tax evasion.

Answering a query regarding the impact on the business of the bank, Vasudev said, "I don't imagine that genuine sort of business should get affected," adding that only the numbers posted next year will show the results.

He said the bank has a whistleblower policy in place and all the cases which come under that are seriously looked into.

Puri said the bank plans to open 300 branches on top of its over 3,000 already operating branches this year and added it takes up to three years for a branch to break-even.

Around 53 per cent of its branches at present are in semi-urban and rural areas, Puri said, adding the proportion will go up this year.

HDFC BANK NET UP 30% AGAIN BUT BAD LOANS RISE MARGINALLY

Jul 17, 2013

HDFC Bank posted on Wednesday a 30 percent rise in first-quarter net profits, in line with expectations, boosted by higher fee income and credit growth.

The Mumbai-based lender, India’s third largest in terms of assets, has posted profit growth of more than 30 percent every quarter for the last decade.

Net profit rose to Rs 18400.000 millions in the quarter ended June from about Rs 14170.000 millions a year earlier. Net interest income grew nearly 21 percent to 44.16 billion rupees.

According to Thomson Reuters, analysts had expected a net profit of Rs 18460.000 millions for the bank. HDFC competes with bigger local rivals like State Bank of India and ICICI Bank.

Asset quality, valued by the market at about $27 billion, worsened slightly, with net nonperforming loans as a percentage of total assets at 0.3 percent compared with 0.2 percent a year ago. Gross nonperforming assets remained unchanged quarter on quarter at 1 percent.

The bank’s net interest margins, however, remained flat at 4.6 percent, while net interest income rose 26.8 percent to Rs 44190.000 millions against Rs 34840.000 millions (YoY).

HDFC Bank’s conservative lending strategies have helped it maintain consistently strong growth and outperform local peers struggling with an increase in bad loans.

The Bank’s total Capital Adequacy Ratio (CAR) (computed as per Basel III guidelines) stood at 15.5% for the first quarter of FY14 as against a regulatory requirement of 9%.

Bank’s distribution network also grew to 3,119 branches and 11,088 ATMs in 1,891 cities at the end of the June quarter.

RBI PENALISES AXIS BANK, HDFC BANK AND ICICI BANK

JUNE 10, 2013

The Reserve Bank has imposed a monetary penalty on Axis Bank, HDFC Bank and ICICI Bank for violating Reserve Bank of India instructions. The details of the penalty are:

Bank	Penalty amount ( in Millions)
Axis Bank Limited	50.010
HDFC Bank Limited	45.000
ICICI Bank Limited	10.010

The penalties have been imposed in exercise of powers vested in the Reserve Bank under the provisions of Section 47(A)(1)( c ) read with Section 46(4)(i) of the Banking Regulation Act, 1949

It may be recalled that the Reserve Bank of India had carried out a scrutiny of books of accounts, internal control, compliance systems and processes of these three banks at their corporate offices and some branches during March / April 2013 to investigate into the allegations of contravention of KYC/AML guidelines against them. The scrutiny of these three banks revealed violation of certain regulations and instructions issued by Reserve Bank of India, namely,

non-observance of certain safeguards in respect of arrangement of “at par” payment of cheques drawn by cooperative banks,

non-adherence to certain aspects of know your customer (KYC) norms and anti money laundering (AML) guidelines like risk categorisation and periodical review of risk profiling of account holders,

Non-adherence of KYC for walk in customers including for sale of third party products, omission in filing of cash transaction reports (CTRs) in respect of some cash transactions, sale of gold coins for cash beyond Rs. 50000,

not-obtaining of permanent account number (PAN) card details or form 60/61 as required,

non-verification of source of funds credited to a few non-resident ordinary (NRO) accounts,

Failure to re-designate a few accounts as NRO accounts though required, non-submission of proper information called for by the reserve Bank, etc.

The investigation did not reveal any prima facie evidence of money laundering. However, any conclusive inference in this regard can be drawn only by an end to end investigation of the transactions by tax and enforcement agencies.

Based on the findings of the scrutiny, the Reserve Bank issued a show cause notice to each of these banks, in response to which the individual banks submitted written replies. After considering the facts of each case and individual bank’s reply, as also, personal submissions, information submitted and documents furnished, the Reserve Bank came to the conclusion that some of the violations were substantiated and warranted imposition of monetary penalty as determined above.

A similar scrutiny was also conducted at the corporate offices of 36 other banks during April and May 2013. The process of follow up action in respect of these banks is at different stages of its completion.

HDFC BANK NAMED ORGANISATION OF THE YEAR AT SKOCH FINANCIAL INCLUSION AWARDS

January 15, 2013

Mumbai: HDFC Bank the second largest private sector Bank in India has been named Organisation of the Year at the Skoch Financial Inclusion Awards 2013. HDFC Bank received the award for using technology as a common thread for all its initiatives in micro-credit, micro-savings, micro-insurance, capacity building, financial literacy and Self Help Group (SHG) Linkage.

The award was presented to HDFC Bank for taking its services to 1.5 million households at the bottom of the pyramid with a total loan disbursement of over Rs 17000.000 millions since inception of the viable finance initiative. “The Bank has counseled over 200,000 Self Help Group (SHG) and Joint Liability Group (JLG) members resulting in 89,000 SHGs getting credit linkage. They have also managed to successfully open 48,000 micro-recurring and fixed deposits and have supported over 600,000 of its low-income microfinance clients with life insurance coverage,” stated the Skoch Development Foundation on their website about HDFC Bank.

The Skoch Financial Inclusion Awards seek to recognise best practices from the banking and financial services sector to promote inclusive growth and poverty alleviation from across urban and rural India. Other notable awardees included International Finance Corporation, Steel Authority of India Limited, Microsoft, Bombay Stock Exchange and the National Informatics Centre.

“At HDFC Bank, sustainable livelihood banking has emerged as a critical component to building inclusive growth and taking banking services to the unbanked. We are committed to bringing 10 million families (40 million individuals) into the banking fold and providing world-class technology-enabled services to every customer, across India. With a growing network of rural branches and technological innovations like Anywhere Bank Terminals (ABT) and Loan Originating System (LOS), HDFC Bank is reaching out to an important constituent; customers in the rural areas. Banking facilities such as cash withdrawal and deposit are now available to rural customers at their doorstep,” said Anil Jaggia, CIO, HDFC Bank.

"Our strategy involves empowering lives by making micro credit, insurance, remittance and other financial services available across the length and breadth of the country, from a small city like Moga in Punjab in the northern province to Saharanpur in UP, to regions such as Rajasmand and Pali in Rajasthan, to Hazaribag in the East and to cities like Thucklay and Ramanathapuram down south. We also provide credit counseling and skills training because this enables the poor to build assets, diversify and increase income, and reduce their vulnerability to economic stress,” said Manohara Raj, Executive Vice President and Business Head - Microfinance, HDFC Bank.

HDFC BANK LAUNCHES 87 BRANCHES IN ONE DAY ACROSS PUNJAB AND HARYANA

November 26, 2012

Bharat Credit Card for farmers also launched

Majority of the branches opened in rural areas

Chandigarh: HDFC Bank the second largest private sector bank, today launched 87 rural branches across the states of Punjab and Haryana. Punjab Chief Minister Prakash Singh Badal inaugurated 51 branches in the state. In Haryana, 36 branches were launched by Chief Minister Bhupinder Singh Hooda. These are 3-4 member full-service branches located primarily in the rural areas.

The launch of rural branches reflects HDFC Bank's commitment to push deeper into the rural areas and bring millions of Indians into the banking fold.

Along with the launch of rural branches, HDFC Bank also launched HDFC Bank VISA Bharat credit card. The credit card is an exclusive card targeted towards farmers and agriculturists and provides a wide range of offerings. The new global credit card has special features designed with Indian farmers and their shopping needs in mind. The card will offer farmers’ cash back on every purchase as well as a waiver on petrol surcharge on fuel transactions between Rs 400 and Rs 5000. The launch of Bharat credit card is in line with the Bank's objective to offer a wide portfolio of products and services to farmers, who constitute a large section of the rural population in the country.

The push into deeper geographies is part of HDFC Bank’s Board approved mandate to bring 10 million unbanked families (40 million individuals) into the banking fold. The launch of these branches, largely in the rural areas, will further enhance the thrust to achieve the mission of providing world class banking products and services across the length and breadth of the country. Not only is the Bank expanding across tier 2 and 3 towns and cities, but also to remote locations like Mangaliya Sadak in Madhya Pradesh, Kargil, Leh in the North and in the interiors of Meghalaya in the North East.

“We are committed to providing efficient, technology driven banking products and services across India to help bring about inclusive growth. The launch of the 87 full-service rural branches reiterates this commitment and we are confident that our endeavour will help in the economic development of the rural areas in the state of Punjab and Haryana, “said Navin Puri, Country Head, Branch Banking, HDFC Bank.

“Agriculture is a critical sector of the Indian economy and forms the backbone of our country. The role of farmers in the economic development is vital. Just like the Doctor's credit card and credit card for Teachers', HDFC Bank through the launch of Bharat credit card hopes to fulfill the needs and desires of this important segment of the society. The Bharat Credit Card will not only provide timely financial support to agriculturists when they require it, but also give them access to many additional features and benefits. This is a global credit card for Indian farmers,” said Parag Rao, Senior Executive Vice President, Business Head, Credit Cards and Merchant Acquiring Services, HDFC Bank.

FIXED ASSETS:

VSATs
ATMs
Office equipments
Computers
Motor cars
Software and System development expenditure
Assets at residences of executives of the Bank

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 62.78
UK Pound	1	Rs. 101.42
Euro	1	Rs. 84.67

INFORMATION DETAILS

Information Gathered by :	PLK

Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	9
OPERATING SCALE	1~10	9
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	9
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		75

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NB		NEW BUSINESS

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MIRA INFORM REPORT

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