MIRA
INFORM REPORT
|
Report Date : |
26.09.2014 |
IDENTIFICATION DETAILS
|
Name : |
HDFC BANK LIMITED |
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|
Registered
Office : |
HDFC Bank House,
Senapati Bapat Marg, Lower Parel, West, Mumbai – 400013, |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
30.08.1994 |
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Com. Reg. No.: |
11-080618 |
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Capital
Investment / Paid-up Capital : |
Rs.4798.101 Millions |
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CIN No.: [Company Identification
No.] |
L65920MH1994PLC080618 |
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|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMH03189E /
MUMH08037B/ MUMH07347E |
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PAN No.: [Permanent Account No.] |
AAACH2702H |
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Legal Form : |
It is a Public
Limited Liability Bank. The banks shares
are listed on the Stock Exchanges. |
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Line of Business
: |
Subject is
engaged in providing a range of banking and financial services including
commercial banking and treasury operations. |
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No. of Employees
: |
68165 (Approximately)
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RATING & COMMENTS
|
MIRA’s Rating : |
Aa (80) |
|
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 |
|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Exists |
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Comments : |
Subject is an established and a highly successful commercial bank in
the private sector having fine track. Financial position of the bank is good. Fundamentals are strong and
healthy. Trade relations are fair. Business is active. Payment terms are regular
and as per commitment. The bank can be considered for normal business dealings at 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
N E W S
Verdict Implications
: Apex court order may alter coal import dynamics. Traders go slow on talks over
coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.
Recent arrest of the
Chennai head of the Registrar of Companies, the ministry of corporate affairs
arm that ensures that companies file all the information required by the
Companies Act is the latest manifestation of a messy fight between a father and
his adopted son for the control of Rs 40000 mn business empire. The Central
Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10
lakhs as bribe from M A M Ramaswamy, a CBI official said.
Central Bureau of
Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.
Infosys maintains
revenue guidance. COO Rao says attrition still an area of concern and it would
take a few more quarters to bring down levels to 13-15 %.
DHL to invest
Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its
e-commerce business model for the Asia-Pacific region.
Blackstone may buy
stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.
Kingfisher Airlines
Ltd grounded in October 2012 under the weight of heavy debt and accumulated
losses, recently approached the Delhi high court for relief in two separate
cases. The airline challenged a notice by Punjab & National Bank alleging
that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to
comply with the requirements under the listing agreements with the Stock
Exchanges.
OnMobile likely to
sack another 300 employees. The lay-offs follow a spate of senior-level exits
over the past two years, starting with of its founder. The overall lay-offs
could number around 600 and are driven by the need to cut costs, says a former
employee.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Fixed Deposits = AAA |
|
Rating Explanation |
The highest degree of safety and carry lowest credit risk. |
|
Date |
28th July, 2014 |
|
Rating Agency Name |
CARE |
|
Rating |
Certificate of deposits = A1+ |
|
Rating Explanation |
Have very strong degree of safety and carry lowest credit risk. |
|
Date |
28th July, 2014 |
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
31-03-2014.
INFORMATION DENIED
Management Non-Cooperative. (Tel No.: 91-22-66712214)
LOCATIONS
|
Registered Office/ Head Office : |
HDFC Bank House,
Senapati Bapat Marg, Lower Parel, Mumbai – 400013, |
|
Tel. No.: |
91-22-66521000/ 24901896 / 66712214 |
|
Fax No.: |
91-22-24960737/ 24960696 |
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E-Mail : |
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Website : |
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Branches : |
Western Zone
North Zone
South Zone
East Zone |
DIRECTORS
AS ON 31.03.2014
|
Name : |
Mr. C. M. Vasudev |
|
Designation : |
Chairman |
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|
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|
Name : |
Mrs. Renu Karnad |
|
Designation : |
Director |
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|
Name : |
Mr. Ashim Samanta (upto 18.11.2012) |
|
Designation : |
Director |
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|
Name : |
Dr. Pandit Palande |
|
Designation : |
Director |
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|
Name : |
Mr. Partho Datta |
|
Designation : |
Director |
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|
Name : |
Mr. Bobby Parikh |
|
Designation : |
Director |
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|
Name : |
Mr. A. N. Roy |
|
Designation : |
Director |
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|
Name : |
Mr. Keki Mistry |
|
Designation : |
Director |
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|
Name : |
Mr. Vijay Merchant (appointed on 14.03.2013) |
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Designation : |
Director |
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|
Name : |
Mr. Aditya Puri |
|
Designation : |
Managing Director |
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Name : |
Mr. Harish Engineer |
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Designation : |
Executive Director (upto 30.09.2013) |
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|
Name : |
Mr. Paresh Sukthankar |
|
Designation : |
Deputy Managing Director (elevated as Deputy Managing Director w.e.f 24.12.2013) |
|
Name : |
Mr. Kaizad Bharucha |
|
Designation : |
Executive Director |
KEY EXECUTIVES
|
Name : |
Mr. Sanjay Dongre |
|
Designation : |
Executive Vice President (Legal) and Company
Secretary |
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Key Managerial
Persons : |
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Senior Management
Team : |
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SHAREHOLDING PATTERN
AS ON 30.06.2014
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
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|
(A)
Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
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|
543216100 |
27.15 |
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|
543216100 |
27.15 |
|
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|
Total
shareholding of Promoter and Promoter Group (A) |
543216100 |
27.15 |
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|
(B)
Public Shareholding |
|
|
|
|
|
|
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|
119845834 |
5.99 |
|
|
2842628 |
0.14 |
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|
1367482 |
0.07 |
|
|
117200767 |
5.86 |
|
|
816888130 |
40.83 |
|
|
689000 |
0.03 |
|
|
1058833841 |
52.92 |
|
|
|
|
|
|
195864394 |
9.79 |
|
|
|
|
|
|
150996148 |
7.55 |
|
|
44125297 |
2.21 |
|
|
7655818 |
0.38 |
|
|
7496310 |
0.37 |
|
|
10075 |
0.00 |
|
|
148128 |
0.01 |
|
|
1305 |
0.00 |
|
|
398641657 |
19.93 |
|
Total
Public shareholding (B) |
1457475498 |
72.85 |
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|
|
|
|
Total
(A)+(B) |
2000691598 |
100.00 |
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|
|
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(C)
Shares held by Custodians and against which Depository Receipts have been
issued |
|
|
|
|
0 |
0.00 |
|
|
407004657 |
0.00 |
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|
407004657 |
0.00 |
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|
|
|
|
Total
(A)+(B)+(C) |
2407696255 |
100.00 |
(1) Indian
Bodies Corporate
Individual shareholders holding nominal share
capital up to Rs. 0.100 Million
SHAREHOLDING
BELONGING TO THE CATEGORY "PROMOTER AND PROMOTER GROUP
|
No. |
Name of the Shareholder |
Details of Shares held |
Total
shares (including underlying shares assuming full conversion of warrants and
convertible securities) as a % of diluted share capital |
|
|
No. of Shares held |
As a % of grand total (A)+(B)+(C) |
|||
|
1 |
Housing Development Finance
Corporation Limited |
39,32,11,100 |
16.33 |
16.33 |
|
2 |
HDFC Investments Limited |
15,00,00,000 |
6.23 |
6.23 |
|
3 |
HDFC Holdings Limited |
5,000 |
0.00 |
0.00 |
|
|
Total |
54,32,16,100 |
22.56 |
22.56 |
SHAREHOLDING
BELONGING TO THE CATEGORY "PUBLIC" AND HOLDING MORE THAN 1% OF THE
TOTAL NO. OF SHARES
|
No. |
Name of the Shareholder |
No. of Shares held |
Shares as % of Total No. of Shares |
Total
shares (including underlying shares assuming full conversion of warrants and
convertible securities) as a % of diluted share capital |
|
|
1 |
Life Insurance Corporation of
India |
113268256 |
4.70 |
4.70 |
|
|
2 |
Europacific Growth Fund |
81339325 |
3.38 |
3.38 |
|
|
3 |
ICICI Prudential Focused
Bluechip Equity Fund |
24147896 |
1.00 |
1.00 |
|
|
4 |
ICICI Prudential Life
Insurance Company Limited |
43318420 |
1.80 |
1.80 |
|
|
5 |
DB International (ASIA)
Limited |
25341850 |
1.05 |
1.05 |
|
|
6 |
Government of Singapore |
32086996 |
1.33 |
1.33 |
|
|
|
Total |
319502743 |
13.27 |
13.27 |
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 : |
68165 [Approximately] |
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Bankers : |
Reserve Bank of India |
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Facilities : |
(* Includes upper Tier II debt of Rs.5991.500 millions (previous year : Rs. 5428.500 millions) Secured borrowings included in I and II above : Rs. Nil
(previous year : Rs. Nil) |
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Banking
Relations : |
-- |
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Statutory Auditors |
|
|
Name : |
BSR and Company LLP Chartered Accountants |
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Promoter : |
Housing Development Finance Corporation Limited |
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Enterprises under common control of the
promoter : |
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Subsidiaries: |
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Associates: |
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Welfare trust of the
Bank: |
HDB Employees Welfare Trust |
CAPITAL STRUCTURE
AFTER 25.06.2014
Authorised Capital : Rs.5500.000 Millions
Issued, Subscribed & Paid-up Capital : Rs.4827.460
Millions
AS ON 31.03.2014
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 |
|
|
|
|
|
|
2,39,90,50,435 |
Equity Shares |
Rs.2/- each |
Rs.4798.101 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
CAPITAL AND
LIABILITIES |
|
|
|
|
|
|
|
|
|
Capital |
4798.101 |
4758.838 |
4693.377 |
|
Reserves and surplus |
429988.169 |
357382.646 |
294550.358 |
|
Employees’ stock options
(grants) outstanding |
0.000 |
0.000 |
3.020 |
|
Deposits |
3673374.777 |
2962469.846 |
2467064.459 |
|
Borrowings |
394389.918 |
330065.972 |
238465.086 |
|
Other liabilities and
provisions |
413444.042 |
348641.671 |
374318.690 |
|
|
|
|
|
|
TOTAL |
4915995.007 |
4003318.973 |
3379094.990 |
|
|
|
|
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|
ASSETS |
|
|
|
|
|
|
|
|
|
Cash and balances with Reserve Bank of India |
253456.277 |
146273.990 |
149910.945 |
|
Balances with banks and money at call and short notice |
142380.101 |
126527.699 |
59466.318 |
|
Investments |
1209510.703 |
1116135.953 |
974829.094 |
|
Advances |
3030002.712 |
2397206.432 |
1954200.292 |
|
Fixed assets |
29399.180 |
27030.813 |
23471.940 |
|
Other assets |
251246.034 |
190144.086 |
217216.401 |
|
|
|
|
|
|
TOTAL |
4915995.007 |
4003318.973 |
3379094.990 |
|
|
|
|
|
|
Contingent liabilities |
7231549.138 |
7201224.293 |
8652928.262 |
|
Bills for collection |
209430.623 |
261039.630 |
186924.956 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
3103.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Interest earned |
411355.336 |
350648.736 |
278741.928 |
|
|
|
Other Income |
79196.415 |
68526.226 |
57836.255 |
|
|
|
TOTAL |
490551.751 |
419174.962 |
336578.183 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Interest expended |
226528.999 |
192537.521 |
149895.780 |
|
|
|
Operating expenses |
120421.981 |
112361.165 |
92776.403 |
|
|
|
Provisions and contingencies |
58817.010 |
47013.428 |
42235.093 |
|
|
|
TOTAL |
405767.990 |
351912.114 |
284907.276 |
|
|
|
|
|
|
|
|
|
PROFIT |
|
|
|
|
|
|
|
Net profit for the year |
84783.761 |
67262.848 |
51670.907 |
|
|
|
Balance in Profit and Loss account brought forward |
111321.846 |
83996.470 |
61742.416 |
|
|
|
TOTAL |
196105.607 |
151259.318 |
113413.323 |
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to Statutory Reserve |
21195.941 |
16815.712 |
12917.726 |
|
|
|
Proposed dividend |
16433.495 |
13090.810 |
10090.760 |
|
|
|
Tax (including cess) on dividend |
2792.873 |
2224.783 |
1636.973 |
|
|
|
Dividend (including tax / cess thereon) pertaining to
previous year paid during the year |
48.642 |
44.748 |
21.240 |
|
|
|
Transfer to General Reserve |
8478.376 |
6726.285 |
5167.091 |
|
|
|
Transfer to Capital Reserve |
582.710 |
858.498 |
0.000 |
|
|
|
Transfer to / (from) Investment Reserve Account |
32.218 |
176.636 |
(416.937 |
|
|
|
Balance carried over to Balance Sheet |
146541.532 |
111321.846 |
83669.470 |
|
|
|
TOTAL
|
196105.787 |
151259.318 |
113413.323 |
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
35.47 |
28.49 |
22.11 |
|
|
|
Diluted |
35.21 |
28.18 |
21.91 |
|
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
4693.377 |
4758.838 |
4798.101 |
|
Reserves & Surplus |
294550.358 |
357382.646 |
429988.169 |
|
Net
worth |
299243.735 |
362141.484 |
434786.270 |
|
|
|
|
|
|
Borrowings |
238465.086 |
330065.972 |
394389.918 |
|
Short term borrowings |
0.000 |
0.000 |
0.000 |
|
Total
borrowings |
238465.086 |
330065.972 |
394389.918 |
|
Debt/Equity
ratio |
0.797 |
0.911 |
0.907 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Interest earned |
278741.928 |
350648.736 |
411355.336 |
|
|
|
25.797 |
17.313 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Interest earned |
278741.928 |
350648.736 |
411355.336 |
|
Net profit for the year |
51670.907 |
67262.848 |
84783.761 |
|
|
18.54% |
19.18% |
20.61% |
LOCAL AGENCY FURTHER INFORMATION
DETAILS OF CURRENT
MATURITIES OF LONG TERM DEBTS : NOT AVAILABLE
|
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 |
No |
|
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 Presentation Date:- 12.08.2014 Lodging
No.:- CPST/21456/2014
Filing Date: 12.08.2014
District:- MUMBAI Bench: SINGLE Status: Pre-Admission Last Date: 19.08.2014
Stage: -- Last Coram:- --
|
INDEX OF CHARGE:
|
S.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 LTD. |
SANDOZ HOUSE,
MUMBAI, MAHARASHTRA, INDIA |
- |
|
2 |
90383899 |
26/11/2002 |
1,039,000.00 |
HDFC BANK LTD. |
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
LTD. |
HUNSUR BRANCH, HUNSUR,
KARNATAKA, INDIA |
- |
|
5 |
90383635 |
12/01/2000 |
2,500,000.00 |
ABU OHRS
COMMERCIAL BANK LTD. |
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 & DEVELOPMEN |
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 |
- |
|
10 |
90383881 |
09/04/2003 * |
9,500,000.00 |
BANK OF INDIA |
BALLARD ESTATE,
MUMBAI, MAHARASHTRA, INDIA |
- |
BACKGROUND
HDFC Bank Limited (‘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.
FINANCIAL PERFORMANCE
The Bank posted total income and net profit of Rs. 4905520.000 .000 Millions and Rs. 84784.000 Millions respectively for the financial year ended March 31, 2014 as against Rs. 419175.000 Millions and Rs. 67263.000 Millions respectively in the previous year.
Appropriations from net profit have been effected as per the table given above.
AWARDS
As in the past years, awards and recognition were conferred upon the Bank by leading domestic and international organizations and publications during the financial year ended March 31, 2014.
Some of them are :
Asiamoney
• Best Domestic Bank in India
• Best Local Cash Management Bank in India
• Aditya Puri – Best Executive in India
Business India
• Best Bank
Business Standard
• Aditya Puri – Banker of the Year
Business Today – KPMG Best Banks Survey
• Best Bank
Business world
• Best Bank in India (Large Banks)
Dun and Bradstreet Corporate Awards
• Best in Banking Sector
Dun and Bradstreet Polaris Financial Technology Banking Awards
• Best Private Sector Bank – Technology Adoption
• Best Private Sector Bank – Retail
• Overall Best Private Sector Bank
FE–EY Best Banks Survey
• Best Bank – New Private Sector
• Best in Strength and Soundness
• Best in Profitability
Finance Asia Country Awards for Achievement
• Best Bank – India Forbes Asia
• Fab 50 Companies List (for the 7th Year) Global Finance Survey – World's Best Banks
• Best Bank in India
GUINNESS WORLD RECORD™
• Largest Blood Donation Drive across multiple venues, in a single day
IBA Banking Technology Awards
• Best TechnologyBankofthe Year
• Best Internet Bank
• Best Customer Management Initiative
• Best Use of Mobility Technology in Banking
IBA Innovation Awards
• Most Innovative Use of Technology
MANAGEMENT'S
DISCUSSIONS AND ANALYSIS
MACROECONOMIC AND
INDUSTRY DEVELOPMENTS
The Indian economy underwent yet another challenging environment in 2013–14 driven by subdued domestic growth, extreme volatility in the exchange rate and a much higher than expected spike in inflation rates. While domestic GDP growth did show a marginal improvement from 4.5% (YoY) in FY13 to 4.7% in FY14 (estimated), most of the increase can be attributed to an increase in agricultural growth from 1.4% to 4.2%. Growth in both the industrial sector and service sector remained lackluster on the back of weakness in both consumption and investment demand. A major problem for the economy in 1HFY14 was a very aggressive and disorderly bout of currency depreciation. The Indian rupee weakened to its lowest level against the greenback driven by concerns about the domestic macroeconomic landscape that made investors somewhat circumspect of investing in domestic assets. However, the anxiety about the future direction of US monetary policy on the back of the Fed preparing the markets for a gradual wind–down of QE 3 resulted in an overall pull–out of funds from EM markets. Hence, the INR fell victim to this rotation of funds away from EM markets and into US markets. To counter pressures of currency depreciation, the RBI in July introduced a series of emergency measures so as to tighten domestic liquidity in order to push short–term rates higher so as to provide the INR with some yield advantage. These measures resulted in an inversion of the yield curve. The RBI also provided various sops to commercial banks to raise foreign currency non–residents (FCNR) deposits which saw foreign currency flows of USD 34 billion in the country. The RBI gradually removed these emergency measures when the exchange rate showed some signs of stability in 2HFY14. However, the RBI hiked the repo rate by around 75 bps over the course of FY14 in part to counter exchange rate depreciation as well as to fight inflation pressures as CPI inflation touched a high 11.24% in November–2013.
However, in Q4FY14 there were some signs of an improvement in the overall domestic macroeconomic landscape that in turn provided some stability to the INR. For one, inflation pressures subsided because of a reduction in food price inflation. The government appeared to have stuck to its promise of fiscal consolidation by reducing the fiscal deficit to GDP ratio from 4.9% in FY13 to 4.6% in FY14. Lastly, there has been a very significant improvement in the current account deficit that has compressed from 4.8% in FY13 to a possible 1.9% of GDP inFY14. The improvement in the current account position came on the back of a substantial compression in the trade deficit as imports fell by 6.7%. Going forward, domestic growth prospects are likely to be driven primarily by the outcome of the general election. If there is market favorable political configuration with a strong mandate that takes charge and commits to moving ahead with the reform process, domestic growth could pickup to around 5.5%. However, downside risks remain primarily from an unfavourable monsoon that could adversely hit the agricultural sector and result in a further escalation in food price inflation.
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.
The Bank's business philosophy has been based on five core values: Operational Excellence, Customer Focus, Product Leadership, People and Sustainability. 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 our 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 code of conduct rules.
Consistent with the mission and approach, the Bank's business strategy emphasises 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 our activities in community development, social responsibility and environmental responsibility with their business practices and operations
FINANCIAL PERFORMANCE
The financial performance of the Bank during the financial year ended March 31, 2014 remained healthy with total net revenues (net interest income plus other income) increasing by 16.5% to Rs. 264023.000 Millions from Rs. 226637.000 Millions in the previous financial year. Revenue growth was driven by an increase in both, net interest income and other income. Net interest income grew by 16.9% due to acceleration in loan growth of 26.4% coupled with a net interest margin (NIM) of 4.4% for the year ending March 31, 2014.
Other income grew 15.6% over that in the previous year to Rs. 79196.000 Millions during the financial year ended March 31,2014. The largest component of other income was fees and commissions, which increased by 11.0% to Rs. 57349.000 Millions with the primary drivers being commissions on debit and credit cards, transactional charges, fees on deposit accounts, processing fees on retail assets and commission on distribution of Insurance products. Foreign exchange and derivatives revenues were Rs. 14011.000 Millions, gain on revaluation / sale of investments were Rs. 1105.000 Millions and recoveries from written–off accounts were Rs. 6226.000 Millions in the financial year ended March 31, 2014.
Operating (non–interest) expenses increased from Rs. 112361.000 Millions in the previous financial year to Rs. 120422.000 Millions in the year under consideration. During the year, the Bank opened 341 new branches and 513 ATMs which resulted in higher infrastructure and staffing expenses. Staff expenses also increased on account of annual wage revisions. Cost to income ratio was at 45.6% for the year ended March 31, 2014, as against 49.6% for the previous year.
Total provisions and contingencies were Rs. 1,58800.000 Millions for the financial year ended March 31, 2014 as compared to Rs. 16770.000 Millions during the previous year. The Bank's provisioning policies for specific loan loss provisions remain higher than regulatory requirements. The coverage ratio based on specific provisions alone without including write–offs was 73%, and including general and floating provisions was 176% as on March 31, 2014. The Bank made general provisions of Rs. 2213.000 Millions during the financial year ended March 31, 2014.
The Bank's profit before tax was Rs. 127721.000 Millions, 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 Rs. 84784.000 Millions, up 26.0%, over the year ended March 31, 2013. Return on average net worth was 20.9% while the basic earnings per share increased from Rs. 28.5 to Rs. 35.5 per equity share.
As at March 31, 2014, the Bank's total balance sheet was at Rs. 4916000.000 Millions, an increase of 22.8% over Rs. 4003320.000 Millions as at March 31, 2013. Total deposits increased 24.0% from Rs. 296,247 .000 Millions as on March 31, 2013 to Rs. 3673370.000 Millions as on March 31, 2014. These included US$ 3.4 billion deposits raised under the RBI window for attracting Foreign Currency Non–Resident (FCNR) deposits. Under this window the Bank could raise foreign currency denominated deposits and swap them into rupees with RBI at a concessional rate. Savings account deposits grew by 16.9% to Rs. 1031330.000 Millions while current account deposits grew by 17.5% to Rs. 61,4880.000 Millions as on March 31, 2014. The proportion of current and savings deposits to total deposits was at 44.8% as on March 31, 2014.
During the financial year, net advances grew by 26.4% to Rs. 3030000.000 Millions. The Bank's retail advances grew by 20.8% to reach Rs. 1647630.000 Millions. Adjusted for the one time increase in FCNR deposits swapped with RBI under the special window and the related foreign currency loans, core deposits and advances growth for the year ended March 31, 2014 was 16.9% and 21.8% respectively. The Bank had a market share of approximately 4.4% and 4.7% in total domestic system deposits and advances respectively. The Bank's Credit Deposit (CD) Ratio was 82.5% as on March 31, 2014.
CONTINGENT LIABILITIES:
|
Particulars |
31.03.2014 (Rs. In Millions) |
31.03.2013 (Rs. In Millions) |
|
Claims against the bank not acknowledged as debts - taxation |
8309.000 |
9349.100 |
|
Claims against the bank not acknowledged as debts - others |
825.707 |
3975.400 |
|
Liability on account of outstanding forward exchange contracts |
4753861.196 |
4467860.687 |
|
Liability on account of outstanding derivative contracts |
2009620.394 |
2292213.027 |
|
Guarantees given on behalf of constituents : |
|
|
|
- In India |
210323.779 |
162354.571 |
|
- Outside India |
35915.763 |
3993.576 |
|
Acceptances, endorsements and other obligations |
192095.251 |
220595.426 |
|
Other items for which the bank is contingently liable |
20598.048 |
40882.506 |
|
Total |
7231549.138 |
7201224.293 |
UNAUDITED FINANCIAL
RESULTS FOR THE QUARTER ENDED 30.06.2014
(Rs. In Millions)
|
Particulars |
|
|
Quarter
Ended |
|
|
|
(
Unaudited) |
|
|
|
|
30.06.2014 |
|
|
Interest Earned/Net Income
from sales/services |
|
|
1,12,200.800 |
|
Interest / discount on
Advances / bills |
|
|
87,350.700 |
|
Income on Investments |
|
|
23,390.100 |
|
Interest on Balances with RBI
& other inter bank funds |
|
|
0.000 |
|
Others |
|
|
245.300 |
|
Other Income |
|
|
18,505.700 |
|
Total Income |
|
|
1,30,706.50 |
|
Interest Expended |
|
|
60,484.700 |
|
Operating Expenses |
|
|
31,784.100 |
|
Employee Cost |
|
|
11,259.300 |
|
Other operating expenses |
|
|
20,524.800 |
|
Total Expenditure for Banks |
|
|
92,268.800 |
|
Operating Profit Before
Provisions and Contingencies |
|
|
38,437.700 |
|
Provisions (other than tax)
and Contingencies |
|
|
4,827.800 |
|
Exceptional Items |
|
|
--- |
|
Profit (+)/ Loss (-) from
Ordinary Activities before Tax |
|
|
33,609.900 |
|
Tax |
|
|
11,279.500 |
|
Net Profit (+)/ Loss (-) from
Ordinary Activities after Tax |
|
|
22,330.400 |
|
Extraordinary Items |
|
|
--- |
|
Net Profit |
|
|
22,330.40 |
|
Equity Capital Face Value (in
Rs) 2 |
|
|
4,815.400 |
|
Reserves |
|
|
0.000 |
|
Percentage of Share held by
Govt |
|
|
0.000 |
|
Capital Adequacy Ratio |
|
|
0.000 |
|
Capital Adequacy Ratio (%) |
|
|
15.10% |
|
EPS
before Extraordinary items (in Rs) |
|
|
|
|
Basic EPS before Extraordinary
items |
|
|
9.30 |
|
Diluted EPS before
Extraordinary items |
|
|
9.20 |
|
EPS
after Extraordinary items (in Rs) |
|
|
|
|
Basic EPS after Extraordinary
items |
|
|
9.30 |
|
Diluted EPS after
Extraordinary items |
|
|
9.20 |
|
Gross/Net NPA |
|
|
NIL |
|
Amount of Gross NPA |
|
|
33,562.200 |
|
Amount of Net NPA |
|
|
10,074.200 |
|
Percentage of Gross/Net NPA |
|
|
0 |
|
% of Gross NPAs |
|
|
1.10 |
|
% of Net NPAs |
|
|
0.30 |
|
Return on Assets |
|
|
0.5 |
|
Number of Public Shareholding |
|
|
1,45,74,75,498.00 |
|
Percentage of Public
Shareholding |
|
|
60.50 |
|
Promoters
and Promoter Group Shareholding |
|
|
|
|
Pledged
/ Encumbered |
|
|
|
|
Number of Shares |
|
|
NIL |
|
Percentage of Shares (as a %
of the total shareholding of promoter and promoter group) |
|
|
NIL |
|
Percentage of Shares (as a% of
the total share capital of the company) |
|
|
NIL |
|
Non-encumbered |
|
|
|
|
Number of Shares |
|
|
54,32,16,100.00 |
|
Percentage of Shares (as a% of
the total shareholding of promoter & prom group) |
|
|
100 |
|
Percentage of Shares (as a %
of the total share capital of the company) |
|
|
22.60 |
Segment information in
accordance with the Accounting Standard on Segment Reporting (AS 17) of the
operating segments of the Bank is as under:
|
S. n. |
Particulars |
|
|
Quarter
Ended |
|
|
|
|
|
(
Unaudited) |
|
|
|
|
|
30.06.2014 |
|
1 |
Segment Revenue |
|
|
|
|
a) |
Treasury |
|
|
27036.100 |
|
b) |
Retail
Banking |
|
|
114429.100 |
|
c) |
Wholesale
Banking |
|
|
54461.700 |
|
d) |
Other
Banking Operations |
|
|
12801.600 |
|
e) |
Unallocated |
|
|
-- |
|
|
Total |
|
|
208728.500 |
|
|
Less: Inter Segment Revenue |
|
|
78022.000 |
|
|
Income from Operations |
|
|
130708.500 |
|
2 |
Segment Results |
|
|
|
|
a) |
Treasury |
|
|
(529.200) |
|
b) |
Retail
Banking |
|
|
15163.700 |
|
c) |
Wholesale
Banking |
|
|
17897.800 |
|
d) |
Other
Banking Operations |
|
|
4749.800 |
|
e) |
Unallocated |
|
|
(3672.200) |
|
|
Total Profit Before Tax |
|
|
33509.900 |
|
3 |
Capital Employed |
|
|
|
|
a) |
Treasury |
|
|
1146071.100 |
|
b) |
Retail
Banking |
|
|
(1441723.900) |
|
c) |
Wholesale
Banking |
|
|
770832.900 |
|
d) |
Other
Banking Operations |
|
|
123504.500 |
|
e) |
Unallocated |
|
|
(138206.300) |
|
|
Total |
|
|
460478.300 |
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 RBI.
1. Statement of Assets and Liabilities as on 30.06.2014 is given below.
|
Particulars |
Quarter
Ended |
|
|
(
Unaudited) |
|
|
30.06.2014 |
|
CAPITAL AND LIABILITIES |
|
|
Capital |
4815.400 |
|
Reserves
and Surplus |
455662.900 |
|
Deposits |
3720739.900 |
|
Borrowings |
386181.800 |
|
Other
Liabilities and Provisions |
346197.000 |
|
Total |
4913597.000 |
|
ASSETS |
|
|
Cash and
Balances with Reserve Bank of India |
220894.200 |
|
Balances
with Banks and Money at Call and Short notice |
80246.300 |
|
Investments |
1236677.600 |
|
Advances |
3121087.100 |
|
Fixed
Assets |
29173.800 |
|
Other
Assets |
225518.000 |
|
Total |
4913597.000 |
NOTE :
1.The above results have been approved by the Board of Directors at its meeting held on July 21, 2014.
2. The results for the quarter ended June 30, 2014 have been subject to a
"Limited Review" by the Statutory Auditors of the Bank. An
unqualified report has been issued by them thereon.
3. The Bank has followed the same significant accounting policies in the
preparation of the interim financial statements as those followed in the annual
financial statements for the year ended March 31, 2014.
4. The figures for the quarter ended March 31, 2014 are the balancing figures
between audited figures In respect of financial year 2013-14 and the published
year to date figures upto December 31, 2013.
5. During the quarter ended June 30, 2014, the Bank acquired additional 8.7%
stake in its subsidiary HDFC Securities Limited (HSL). Post this acquisition,
the Bank's stake holding in HSL was 98.0% as of June 30, 2014.
6. In accordance with RBI circular dated July 01, 2013, banks are required to
make Pillar 3 disclosures under Basel III capital regulations. The Bank has made
these disclosures which are available on its website at the following link:
http;//www.hdfcbank.com/aboutus/basel_dlsolosures/default.htm. The disclosures
have not been subjected to audit or limited review.
7. During the quarter ended June 30, 2014, the Bank allotted 8645820 shares
pursuant to the exercise of stock options by certain employees.
8. Other income relates to income from non-fund based thanking activities
Including commission, fees, earnings from foreign exchange and derivative
transactions, profit and loss {including revaluation) from Investments and
recoveries from accounts written off.
9. As at June 30, 2014, the total number of branches (including extension
counters) and ATM network stood at 3488 branches and 11426 ATMs respectively.
10. Figures of the previous periods have been regrouped / reclassified wherever
necessary to conform to current period's classification.
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 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] Records 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.61.02 |
|
UK Pound |
1 |
Rs.99.43 |
|
Euro |
1 |
Rs.77.84 |
INFORMATION DETAILS
|
Information
Gathered by : |
PRT |
|
|
|
|
Analysis done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
SNT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--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 |
|
80 |
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 |
||
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.