hdfc jan22 14

Housing Development Finance Housing Development Finance Corporation LimitedCorporation Limited

December 2013

CONTENTSCONTENTS

• HDFC Snapshot

• Mortgage Market in India

• Operational and Financial Highlights: Mortgages

2

• Operational and Financial Highlights: Mortgages

• Valuations and Shareholding

• Key Subsidiaries and Associates

• Financials: Consolidated and Standalone

HDFC SNAPSHOTHDFC SNAPSHOT

3

HDFC SNAPSHOTHDFC SNAPSHOT

WHO WE ARE…WHO WE ARE…

• Incorporated in 1977 as the first specialised mortga ge company in India

• Now a Financial Conglomerate with interests beyond mortgages:

HDFC Snapshot

4

• 74% shares held by Foreign Investors

HDFC

22.7% HDFC Bank

72.4% HDFC

Standard Life Insurance

59.8% HDFC Asset Management

73.8%HDFC ERGO

General Insurance

59.3%GRUH

Finance

100% HDFC

Property Ventures

80.5% HDFC

Venture Capital

89.4%^ Credila

Financial Services

^ On a fully diluted basis

BUSINESS SUMMARYBUSINESS SUMMARY• Loans Outstanding (Net of loans sold) : Rs. 1,922.66 bn

(December 31, 2013) : US$ 31.05 bn

• Mortgage Loans CAGR (5 years) : 21%

• Cumulative Housing Units Financed : 4.6 million

HDFC Snapshot

5

• Total loan write offs since inception : Under 4 bas is points(of cumulative disbursements)

• Cost to Income Ratio (FY13) : 7.8%

• Unrealised gains on listed investments : R s. 333.79 bn(December 31, 2013) : US$ 5.39 bn

• Profit After Tax CAGR (5 years) : 20%

No. of Outlets

2003 – 1422004 – 1732005 – 2032006 – 2192007 – 2342008 – 250

HDFC Snapshot

DISTRIBUTIONDISTRIBUTION

6

2008 – 2502009 – 2672010 – 2782011 – 2892012 – 3112013(Dec) – 351

DISTRIBUTION

• Outreach programmes to several locations

• Deposit & loan products offered in over 2,400 locat ions

• 3 representative offices in Dubai, London and Singa pore

• As at December 31, 2013, the number of outlets inc lude 91 outlets of HDFC’s wholly owned distribution company, HDFC Sales Limited

• Distribution also through HDFC Bank and third party direct selling agents

Denotes cities with 4 or more officesDenotes cities with 4 or more offices

Denotes cities with 3 OfficesDenotes cities with 3 Offices

OfficesOffices

MORTGAGE MARKET IN INDIAMORTGAGE MARKET IN INDIA

7

MORTGAGE MARKET IN INDIAMORTGAGE MARKET IN INDIA

• High demand growth driven by:

– Improved Affordability

• Rising disposable income

• Tax incentives (interest and principal repayments d eductible)

• Affordable interest rates

MARKET SCENARIOMARKET SCENARIO

Mortgage Market in India

8

– Increasing Urbanisation

• Currently only 31% of Indian population is urban

– Favorable Demographics

• 60% of India’s population is below 30 years of age

• Rapid rise in new households

• In FY12, the urban housing shortage was estimated a t 18.76 million units (Source: Ministry of Housing & Urban Poverty Alleviation)

IMPROVED AFFORDABILITYIMPROVED AFFORDABILITY

22.0

15.6

11.14.00

6.00

8.00

10.00

12.00

20

25

30

35

40

45

50

Ann

ual I

ncom

e (R

s. L

ac)

Pro

pert

y V

alue

(Rs.

Lac

) &A

ffor

dabi

lity


9

8.36.6

5.9 5.3 5.1 4.7 4.3 4.7 5.0 5.1 5.1 4.5 4.7 4.8 4.6 4.7 4.6

0.00

2.00

4.00

0

5

10

15

Ann

ual I

ncom

e (R

s. L

ac)

Pro

pert

y V

alue

(Rs.

Lac

) &A

ffor

dabi

lity

Property Cost (Rs. Lac) Affordability Annual Income (Rs. Lac)

1 Lac = 1,00,000

Representation of property price estimates Affordability equals property prices by annual inco me

TAX INCENTIVES HAVE LOWERED THE TAX INCENTIVES HAVE LOWERED THE EFFECTIVE RATES ON MORTGAGESEFFECTIVE RATES ON MORTGAGES


FY 2014 FY 2002 FY 2000

Loan amount (Rs) 2,000,000 2,000,000 2,000,000

Nominal Interest Rate(%) 10.25% 10.75% 13.25%

Max deduction for interest allowed 250,000 150,000 75,000

Deduction on principal 100,000 20,000 20,000

Tax rate applicable 33.99% 31.50% 34.50%

10

Tax rate applicable 33.99% 31.50% 34.50%

Tenor (years) 15 15 15

Total amount paid per year 305,000 269,028 307,620

Interest component 205,000 215,000 265,000

Principal repaid 100,000 54,028 42,620

Tax amount saved 103,670 53,550 32,775

Effective interest paid on home loan 101,331 161,450 232,225

Effective interest on home loan 5.1% 8.1% 11.6%

Note: The Finance Act, 2013 has provided an additio nal one time benefit of interest deduction up to Rs . 100,000 for first time home buyers provided the loan amount and property c ost does not exceed Rs. 2.5 million and Rs. 4 milli on respectively.

80%

100%

120%

76%84%

101%

LOW PENETRATION IMPLIES ROOM FOR GROWTH LOW PENETRATION IMPLIES ROOM FOR GROWTH MORTGAGES AS A MORTGAGES AS A PERCENT OF NOMINAL PERCENT OF NOMINAL GDPGDP


11

0%

20%

40%

60%

8%15%

20%

32% 36% 40%44% 45%

54%

Source: European Mortgage Federation, HOFINET & HDF C estimates for India

OPERATIONAL & FINANCIAL OPERATIONAL & FINANCIAL HIGHLIGHTS: MORTGAGESHIGHLIGHTS: MORTGAGES

12

HIGHLIGHTS: MORTGAGESHIGHLIGHTS: MORTGAGES

HDFC’s ASSETS HDFC’s ASSETS (As at December 31, 2013)(As at December 31, 2013)

88%Total Assets as at December 31, 2013

Rs. 2,182.86 billion (US$ 35.25 billion)

Total Assets as at December 31, 2012

Operational & Financial Highlights: Mortgages

13

7%5%

Loans (including debentures & corporate deposits for financing real estate projects) - 88%

Investments - 7%

Other Assets - 5%

Rs. 1,837.70 billion (US$ 29.68 billion)

Total assets have been computed as per Indian Accounting Sta ndards and consequentlynot fair valued. The unrealised gain on listed and unlisted i nvestments as at December 31,2013 has not been considered in the aforesaid. The unrealise d gains only on listedinvestments as at December 31, 2013 stood at Rs. 333.79 bn

US $ amounts are converted based on the exchange ra te of US$ 1= Rs. 61.92

INDIVIDUAL LOANS– Home Loans

• Fixed rate loans• Floating rate loans

– Home Improvement Loans

– Home Extension Loans

CORE BUSINESS CORE BUSINESS –– LENDINGLENDING(As at (As at December 31, 2013)December 31, 2013)


Individuals 70%

Corporate11%

Construction Finance

13%

14

– Home Extension Loans– Home Equity Loans– Short Term Bridging

Loan– Loans to NRIs

December 31, 2013

Rs. in billion

Gross Loans 2,085Less: Loans securitised - on which spread is earned over the life of the loan 162Loans Outstanding 1,923

LOANS

Lease Rental Discounting

6%

ANALYSIS OF THE LOAN BOOKANALYSIS OF THE LOAN BOOK


As at December 31, 2013

Rs. bn % Growth Rs. bn % GrowthIndividuals 1,309 24% 1,341 27%Non Individuals 614 10% 614 10%

Loan Book o/s Loan Book o/s Before Sell Down in last 12

months

15

Loans Outstanding* 31-Dec-13 31-Mar-13 Net Increase

Apr-Dec

FY14

Apr-Dec

FY13

Rs. bn Rs. bn Rs. bn

Individuals 1,325 1,113 212 89% 87%Non Individuals 614 587 27 11% 13%

1,939 1,700 239 100% 100%

% of incremental loans

* Includes loans sold in the current year

Non Individuals 614 10% 614 10%Total 1,923 19% 1,955 21%

Incremental Growth of the Loan Book

1,200

1,600

2,0001,322

1,609 1,923

LOANS OUTSTANDING (Net of loans sold)

Rs.

in b

illio

n

75

100

42 53

Rs.

in b

illio

n

LOANS SOLD(In the preceding 12 months)

CONTINUING GROWTH MOMENTUMCONTINUING GROWTH MOMENTUM(As at December 31, 2013)(As at December 31, 2013)


16

0

400

800

1,200

Dec-11 Dec-12 Dec-13

Rs.

in b

illio

n

0

25

50

75


42 33

Rs.

in b

illio

nAs at December 31, 2013:

• The growth in the loan book inclusive of loans sold in the previous 12 months is 21%

• Loans of Rs. 4.92 bn sold during the quarter ended D ecember 31, 2013

• Loans sold (outstanding): Rs. 162.11 bn - on which spr ead at 1.25% p.a. is to be earned over the life of the loan

HDFC Bank 24%

Other Direct Selling Agents 17%

83% OF OUR MORTGAGES ARE SOURCED BY 83% OF OUR MORTGAGES ARE SOURCED BY OURSELVES OR THROUGH OUR AFFILIATESOURSELVES OR THROUGH OUR AFFILIATES


December 31, 2013

17

HDFC Sales Private Limited

47%

Direct Walk-ins 12%

OUR CONSERVATIVE LOAN PROFILE OUR CONSERVATIVE LOAN PROFILE UNDERLIES OUR HIGH CREDIT QUALITYUNDERLIES OUR HIGH CREDIT QUALITY

• Average Loan Size : Rs. 2.19 mn (~US$ 35,368)

• Average Loan to Value : 65% (at origination)


18

• Average Loan to Value : 65% (at origination)

• Average Loan Term : 13 years

• Primary Security : Mortgage of property financed

• Repayment Type : Amortising

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

0.82%0.75% 0.77%

1.17% 1.10%0.95%

GROSS NONGROSS NON--PERFORMING LOANS & PROVISIONS FOR PERFORMING LOANS & PROVISIONS FOR CONTINGENCIESCONTINGENCIES

Operational & Financial Highlights: MortgagesP

erce

ntag

e

As at December 31, 2013

(Rs. in bn)NPLs (3 months): 14.78

Provisions forContingencies: 18.23Of whichNPAs: 5.32

19

0.00%

0.20%

0.40%


GROSS NPLs PROVISIONS FOR CONTINGENCIES

•Total NPLs: 0.77% of which:•Individual Loans: 0.57%,•Non-Individual Loans: 1.18%

•Total loan write-offs since inception is less than 4 basis po ints of cumulative disbursements.

Per

cent

age

NPAs: 5.32Other Provisioning: 12.91

Regulatory Provisioning: 13.57

Excess Provisioning over Regulatory Provisioning: 4.66

82%

Shareholders' Funds Rs. 290.04 bn

LIABILITIESLIABILITIES(As at December 31, 2013)(As at December 31, 2013)


20

13%5%

Borrowings

Other Liabilities

Rs. 1,773.55 bn

Rs. 119.27 bn

Total Liabilities Rs. 2,182.86 bn (PY Rs. 1,837.70 b n)

53% 58% 56%

60%

80%

100%

Debentures & Securities

MULTIPLE SOURCES OF BORROWINGSMULTIPLE SOURCES OF BORROWINGS(As at December 31, 2013)(As at December 31, 2013)

Operational & Financial Highlights: MortgagesP

erce

ntag

e

21

27% 33% 31%

20% 9% 13%

0%

20%

40%

60%


Term Loans

Deposits

Total Borrowings Rs. 1,773.55 bn (PY Rs. 1,485.37 bn )

Per

cent

age

BORROWINGS (2)BORROWINGS (2)


Borrowings 31-Dec-13 31-Mar-13Net

Increase Apr-Dec FY14

% of incremental

Net increase in funding for the nine months ended D ecember 31, 2013

22

Rs. bn Rs. bn Rs. bn % of incremental

funding Term Loans 230 178 52 28%Debentures & Securities 993 891 102 55%Deposits 551 519 31 17%Total 1,774 1,588 185 100%

484

902

569

462

936

557 600

800

1,000

Rs.

in b

illio

n

MATURITY MATURITY PROFILEPROFILE(As at March 31, 2013)(As at March 31, 2013)


23

462

0

200

400

Up to 1 yr 2-5 yrs Over 5 yrs

Assets Liabilities

Rs.

in

The above graph reflects adjustments for prepayment s and renewals in accordance with the guidelines issued by National Housing Bank.

10.30%

11.83% 11.98% 11.80%

7.97% 9.56% 9.68%9.55%

2.33%

2.27%2.30%

2.25%

2.20%

2.25%

2.30%

2.35%

2.40%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

LOAN SPREADSLOAN SPREADS


24

9.55%

2.10%

2.15%

2.20%

0.00%

2.00%

4.00%

FY11 FY12 FY13 Apr-Dec-13

Return on Loans Cost of Borrowings Spread

April-December 2013Spread earned on:Individual Loans 1.97%Non-individual Loans 2.82%Loan Book 2.25%

STRENGTHSSTRENGTHSHome Loan Strengths

• Low average loan to value ratio and instalment to i ncome ratios

• Efficient recovery mechanisms

• Steady level of prepayments

• Quality underwriting with experience of over 35 yea rs


25

Corporate Strengths

• Strong brand – customer base of 4.6 million

• Stable and experienced management – average tenor of senior

management in HDFC over 25 years

• High service standards

• Low cost income ratio: 7.8% (As at March 31, 2013)

PRODUCTIVITY RATIOSPRODUCTIVITY RATIOS


FY13 FY10 FY00 FY90Number of employees 1,833 1,505 794 727

Number of outlets 250 214 67 24

Profit per employee (US$ '000) 489 416 118 8

26

Profit per employee (US$ '000) 489 416 118 8

Assets per employee (US$ mn) 18.5 16.4 4.4 0.5

Admin costs/assets (%) 0.30 0.29 0.49 0.76

Cost income ratio (%) 7.8 7.9 13.8 30.9

FY13 FY12 FY11

Pre Tax RoAA (%) 3.8 3.9 4.0

Post Tax RoAA (%) 2.8 2.8 2.9

ROE (%) 22.0 22.7 21.7

Capital Adequacy (%) 19.1 14.6 14.0

KEY FINANCIAL METRICSKEY FINANCIAL METRICS


^

27

Capital Adequacy (%) 19.1 14.6 14.0

Of which Tier I 16.6 11.7 12.2

Tier II 2.5 2.9 1.8

^As at December 31, 2013

Capital Adequacy Ratio (CAR): i) The risk weights on loans to individuals and commercial real estate(residential housing) were revised by the National Housing Bank via its notification dated September 6,2013. (ii) If the investment in HDFC Bank were to be reduced fr om Tier 1 capital instead of being treated asa 100% risk weight, the adjusted CAR would be 15.8% of which Ti er I: 13.3% and Tier II: 2.5%

^

VALUATIONS & SHAREHOLDINGVALUATIONS & SHAREHOLDING

28

VALUATIONS & SHAREHOLDINGVALUATIONS & SHAREHOLDING


M arket price per share (Rs) 842 829 652

M arket Capitalisation (USD Bn) 21.2 20.6 15.5

Price Earnings Ratio (times) 26.5 29.1 25.8

Book Value per share (Rs) - Indian GAAP 186 166 132

Price to Book Ratio (times) 4.5 5.0 4.9

VALUATIONSVALUATIONS & RETURNS& RETURNS

Valuations and Shareholding

*

29

Price to Book Ratio (times) 4.5 5.0 4.9

+Adjusted Book value per share (Rs) 400 387 262

(Without considering any gain on unlisted investments)

+ Price to Book ratio 2.1 2.1 2.5

Foreign Shareholding (%) 74 73 74

*Share price as at January 22, 2014

+ Adjusted only for unrealised gains on listed investm ents amounting to Rs. 333.79 bn as at December 31, 2013. All unlisted investments, including investmen ts in the life and non-life insurance companies and the asset management business are reflected at cost.

US $ amounts are converted based on the exchange ra te of US $ 1= Rs 61.92

SHAREHOLDING PATTERNSHAREHOLDING PATTERN(As at December 31, 2013)(As at December 31, 2013)

74%Foreign Shareholders - 74%

Individuals - 10%

Valuations and Shareholding

30

10%

10%3%3%

Individuals - 10%

Financial Institutions, Banks & Insurance Companies - 10%

Mutual Funds - 3%

Companies - 3%

KEY ASSOCIATES AND KEY ASSOCIATES AND SUBSIDIARIESSUBSIDIARIES

31

SUBSIDIARIESSUBSIDIARIES

HDFC BANKHDFC BANK• 22.7% owned by HDFC

• Market Cap US$ 25.8 bn

• ADRs listed on NYSE

• 3,336 branches, 11,473 ATMs, 2,104 locations

• Key business areas

– Wholesale banking Retail banking Treasury operations

• Financials (as per Indian GAAP) for the nine -months ended December 31, 2013

Associates and Subsidiaries

32

• Financials (as per Indian GAAP) for the nine -months ended December 31, 2013

– Advances as at December 31, 2013, stood at Rs. 2,967 bn – an inc rease of 23% over

the previous year

– Total deposits stood at Rs. 3,492 bn – an increase of 23% over t he previous year

– PAT: Rs. 61.52 bn – an increase of 27% over the previous year

• Arrangement between HDFC & HDFC Bank

– HDFC Bank sources home loans for a fee

– Loans originated in the books of HDFC

– HDFC offers a part of the disbursed loans for assig nment to HDFC Bank

– HDFC retains a spread on the loans that have been a ssigned

Ownership and Capitalisation

• HDFC holds 72.4% and Standard Life 26% of the equity of HDFC Li fe

• Paid up share capital as at December 31, 2013: Rs. 21.6 bn

• No additional capital infusion since FY12

Premium income and growth for the nine months ended December 31, 2013

HDFC STANDARD LIFE INSURANCE COMPANY LTD. HDFC STANDARD LIFE INSURANCE COMPANY LTD. (HDFC LIFE)(HDFC LIFE)


33

Premium income and growth for the nine months ended December 31, 2013

• Total premium income grew by 9% (PY 7%), led by growth in renew alpremium business

• Share of renewal premium to total premium stood at 67% (PY 63% )

Market share• Ranked 3 rd in the private market share• Individual business market share of 12.8% (private sector) and 4.4% (overall)

(Source: IRDA)

Assets Under Management• As at December 31, 2013, Assets Under Management stood at Rs. 462 bn – an

increase of 18% over December 31, 2012

Products• Offers 41 individual products and 8 group products along wit h 9 optional

riders

HDFC STANDARD LIFE INSURANCE COMPANY LTD. HDFC STANDARD LIFE INSURANCE COMPANY LTD.


34

riders• Offers 26 fund options across product categories

Distribution• HDFC group network is used to cross sell by offering customis ed products• Operates out of 429 offices across the country serving over 9 75 locations

and a liaison office in Dubai• Network of 73,000 financial consultants, 4 key bancassuran ce partners, 10

major pan India brokers and corporate agency tie-ups

Solvency Ratio• As at December 31, 2013: 202% (as against regulatory require ment of 150%)

Operating highlights (Nine months ended December 31 , 2013)

• Commission ratio: 4.2% (PY 5.7%)• Operating expenses : 11.2% (PY 12.2%)

HDFC STANDARD LIFE INSURANCE COMPANY LTD. HDFC STANDARD LIFE INSURANCE COMPANY LTD.


35

• Operating expenses : 11.2% (PY 12.2%)• Individual business conservation ratio: 79% (PY 79%)

Financial highlights

• Indian GAAP profits for the nine months ended Decem ber 31, 2013 stood at Rs. 5.3 bn (PY Rs. 4 bn)

• For the nine months ended December 31, 2013, new bu siness margin on individual business stood at 24.1% (based on loaded acquisition expenses)

• Market Consistent Embedded Value: Rs. 60.9 bn (As at September 30, 2013)

HDFC ASSET MANAGEMENTHDFC ASSET MANAGEMENT• Tie-up with Standard Life Investments (SLI)

• HDFC holds 59.8% of HDFC Asset Management

• HDFC MF manages 45 schemes comprising debt, equity, gold exc hangetraded fund and fund of fund schemes

• Earned a Profit After Tax of Rs. 3.19 bn for FY13


36

• Earned a Profit After Tax of Rs. 3.19 bn for FY13

• Average Assets under Management (AUM) as at December 31, 201 3, stood atRs. 1,124.68 bn which is inclusive of assets under discretio nary portfoliomanagement and advisory services

• Equity assets of HDFC MF as a proportion of total MF assets is 3 7%

• Ranked first in the industry on the basis of Average Assets un derManagement (Source: AMFI)

HDFC ERGO GENERAL INSURANCE COMPANY LTD.HDFC ERGO GENERAL INSURANCE COMPANY LTD.Ownership and Capitalisation

• Paid up share capital as at December 31, 2013: Rs. 5.29 bn

• HDFC holds 73.8% and ERGO 26% of the equity of HDFC ERGO

• No capital injected during the nine months ended December 31 , 2013


37

For the nine months ended December 31, 2013

• Gross written premium: Rs. 21.57 bn (PY Rs. 18.21 bn) – growth of 18%

• Profit After Tax: Rs. 1.46 bn (PY Rs. 1.02 bn)

• Combined Ratio as at December 31, 2013: 98.3% before Motor an d DeclinedRisk Pool losses (PY 98.8% calculated in a similar manner)

• Solvency as at December 31, 2013: 164% (as against regulator y requirementof 150%)

HDFC ERGO GENERAL INSURANCE COMPANY LTD.HDFC ERGO GENERAL INSURANCE COMPANY LTD.

Market share

• Market share of 8.9% (private sector) and 4% (overall) in ter ms of gross direct

premium for the nine months ended December 31, 2013 (Source: GI Council)

Products

• The company offers insurance products such as:


38

• The company offers insurance products such as:

– Motor, health, travel, home and personal accident in the ret ail segmentand;

– Property, marine, aviation and liability insurance in the c orporatesegment

• Retail accounts for 53% of the total business

Distribution• Operates out of 104 branches across the country

• HDFC group network is used to cross sell home and health insur ance products

GRUH FINANCE LIMITED (GRUH)GRUH FINANCE LIMITED (GRUH)• 59.3% owned by HDFC

• Registered housing finance company offering loans to indiv iduals forpurchase, construction and renovation of dwelling units

• Also offers loans to the self employed segment where formal i ncomeproofs are not available

• Retail network of 138 offices across 7 states in India – Gujarat, Maharashtra,


39

• Retail network of 138 offices across 7 states in India – Gujarat, Maharashtra,Karnataka, Rajasthan, Madhya Pradesh, Chhattisgarh and Ta mil Nadu

• Financials for the nine months ended December 31, 2013

• Loan portfolio stood at Rs. 65.45 bn – an increase of 31% over t heprevious year

• Gross non-performing assets (NPAs) : 0.46%

• PAT: Rs. 1.03 billion – an increase of 25% over the previous ye ar

• Market Capitalisation: US$ 743 mn

HDFC PROPERTY FUNDHDFC PROPERTY FUND• HDFC India Real Estate Fund

– Launched in 2005

– Fund corpus : Rs. 10 billion – fully invested

– Domestic investors, close-ended fund

– Funds managed by HDFC Venture Capital Limited

– Exits have commenced; 1.25 X of the fund corpus has been returned to investors

• HIREF International LLC


40

• HIREF International LLC

– Fund corpus : US$ 720 mn

– International investors, 9 year close-ended fund

– Targeted at premier institutions and funds across t he world interested in taking an exposure to Indian real estate

– Fund is completely deployed and exits have commence d since 2010

• HIREF International LLC II Pte Ltd.

– Fund corpus targeted: US$ 500 mn

– Fund raising currently underway

– International investors, 8 year close-ended fund

CREDILA FINANCIAL SERVICESCREDILA FINANCIAL SERVICES• HDFC holds 89.4% in Credila Financial Services Priva te Limited

• Credila is a non-banking finance company and was the first Indian lender to

exclusively focus on education loans

• The company lends to under-graduate and post-gradua te students studying


41

in India or abroad

• Financial Highlights:

– Cumulative disbursements: Rs. 13.4 bn

– Loan book outstanding as at December 31, 2013: Rs. 11.03 bn – growth

of 58% over last year

– Average loan: Rs. 0.89 mn

FINANCIALS FINANCIALS Consolidated & StandaloneConsolidated & Standalone

42

Consolidated & StandaloneConsolidated & Standalone

Apr-Dec-13 Apr-Dec-12 Growth

(Rs. in billion) (Rs. in billion) %

HDFC Profit After Tax 37.17 32.93 13

HDFC Life 3.73 2.44

HDFC Ergo 1.08 0.75

GRUH 0.61 0.50

HDFC Bank 14.31 11.29

Financials

CONSOLIDATED PROFIT AFTER TAX CONSOLIDATED PROFIT AFTER TAX –– AprApr--Dec Dec As per Indian GAAPAs per Indian GAAP

43

HDFC Bank 14.31 11.29

HDFC-AMC 1.35 1.12

Others 2.71 1.13

Dividend and Other Adjustments (5.63) (4.59)

Consolidated Profit After Tax 55.33 45.57 21

Adjustment for:Securities Premium debited in HDFC

for Zero Coupon Bonds (2.68) (3.55)

52.65 42.02 25

Contribution of subs/associates to

the consolidated PAT (%) 33 28

Dec-13 Dec-12 Growth(Rs. in billion) (Rs. in billion) (%)

Sources of Funds

Shareholders' Funds 379.16 320.82

Minority Interest 13.25 10.29

Policy Liabilities 407.23 342.04

Loan Funds 921.31 874.56 5

Current Liabilities & Provisions 1,113.23 832.32

BALANCE SHEET BALANCE SHEET (Consolidated)(Consolidated)

Financials

44

Current Liabilities & Provisions 1,113.23 832.32

2,834.18 2,380.03 19

Application of Funds

Loans* 1,993.94 1,661.17 20

Investments 704.99 597.24

Current Assets, Advances & Fixed Assets 133.40 119.95

Goodwill on Consolidation 1.85 1.67

2,834.18 2,380.03 19

*Net of loans sold during the preceding 12 months amounting to Rs. 32.63 bn. If these loans were incl uded, the growth in loans would have been higher at 22%.

Loans of Rs. 4.92 billion sold during the quarter e nded December 31, 2013.

PROFIT AND LOSS PROFIT AND LOSS ACCOUNT (Consolidated)ACCOUNT (Consolidated)

Financials

Apr-Dec-13 Apr-Dec-12 Growth(Rs. in billion) (Rs. in billion) (%)

Revenue from Operations 184.64 160.85 15

Premium Income from Insurance Business 87.89 79.85 10

Other Operating Income from Insurance Business 9.88 6.17

Profit on Sale of Investments 2.46 2.26

Other Income 0.32 0.31

Total Income 285.19 249.44 14

Expenses

Finance Cost 122.99 107.47 14

45

Finance Cost 122.99 107.47 14

Staff/Establishment/Other Expenses 9.24 8.12

Claims paid pertaining to Insurance Business 41.26 32.39

Commission and Operating Expenses - Insurance Business 12.68 15.84

Other Expenses pertaining to Insurance Business 37.59 33.71

Depreciation/Provisions for Contingencies 1.30 1.74

225.06 199.27 13

Profit Before Tax 60.13 50.17 20

Tax Expense 15.94 13.59

Net Profit (before Profit of Associates and adjustment of minority Interest) 44.19 36.58 21

Share of profit of minority shareholder (3.16) (2.30)

Net share of profit of Associates (Equity Method) 14.30 11.29

Profit after Tax attributable to the Corporation 55.33 45.57 21

Securities Premium debited in HDFC for Zero Coupon Bonds (2.68) (3.55)

Adjusted Consolidated Profit After Tax 52.65 42.02 25

BALANCE SHEET (Standalone)BALANCE SHEET (Standalone)

Financials

Dec-13 Dec-12 Growth

(Rs. in billion) (Rs. in billion) (%)

Sources of Funds

Shareholders' Funds 290.04 255.48

Borrowings 1,773.55 1,485.37 19

Current Liabilities & Provisions 119.27 96.85

46

*Net of loans sold during the preceding 12 months amounting to Rs. 32.63 bn. If these loans were included, the growth in loans would have been highe r at 21%.

Loans of Rs. 4.92 billion sold during the quarter e nded December 31, 2013.

Current Liabilities & Provisions 119.27 96.85

2,182.86 1,837.70 19

Application of Funds

Loans* 1,922.66 1,609.41 19

Investments 161.63 145.78

Current/ Fixed Assets 98.57 82.51

2,182.86 1,837.70 19

Financials

PROFIT AND LOSS ACCOUNT PROFIT AND LOSS ACCOUNT –– FY14 Q3 (Standalone) FY14 Q3 (Standalone) Oct-Dec-13 Oct-Dec-12 Growth

(Rs. in billion) (Rs. in billion) (%)

Operating Income 59.09 51.01 16

Interest Expenses 40.80 35.21 16

Net Interest Income 18.29 15.80 16

Less: Non Interest Expenses 1.68 1.44

Less: Provisions for Contingencies 0.25 0.40

47


Add: Other Income 0.11 0.08

Profit Before tax, Dividend & Sale of Investments 16.47 14.04 17

Dividend 0.76 0.45



Provision for Tax 4.80 4.05

Profit After Tax 12.78 11.40 12

Effective tax rate (%) 27.3% 26.2%

PROFIT AND LOSS ACCOUNT PROFIT AND LOSS ACCOUNT –– AprApr--Dec (Standalone) Dec (Standalone)

Financials

Apr-Dec-13 Apr-Dec-12 Growth

(Rs . in bi l l ion) (Rs . in bi l l ion) (%)

Operating Income 169.37 148.36 14

Interest Expenses 118.88 104.51 14

Net Interest Income 50.49 43.85 15


48



Add: Other Income 0.27 0.23

Profit Before Tax, Dividend & Sale of Investments 45.02 38.63 17

Dividend 4.64 3.99



Provision for Tax 13.70 11.80

Profit After Tax 37.17 32.93 13

Effective tax rate (%) 26.9% 26.4%

CONSOLIDATED EARNINGS CONSOLIDATED EARNINGS As per Indian GAAPAs per Indian GAAP

(As at December 31, 2013)(As at December 31, 2013)

HDFC Consolidated

Return on Equity 18.4% 21.1%

Financials

49

Return on Equity 18.4% 21.1%

Return on Average Assets 2.5% 2.8%

Earnings Per Share (Rs.) 32 36

Profit After Tax (Rs. in billion) 37.17 55.33

Total Assets (Rs. in billion) 2,182.86 2,834.18

AWARDS & ACCOLADESAWARDS & ACCOLADESi HDFC selected as the Best Home Loan Provider by CNBC Awaaz – CN BC Awaaz Real Estate Awards 2013

i HDFC adjudged the ‘Best Home Loan Provider’ for third consec utive year – Outlook Money Awards, 2013

i Awarded the Qimpro-Best Prax Benchmark 2013 in Leadership G overnance

i HDFC Board recognised as one of the “Five Best Boards" in a stu dy conducted by Economic Times andHay Group on India's Best Boards - 2012

i Top Indian Company in the ‘Financial Institutions/Non-Ban king Financial Companies/Financial Services’category at the Dun & Bradstreet Corporate Awards 2012. The C orporation has won this award six times.

50

i Leading Housing Finance Company Award - CNBC TV18, 2012

i HDFC is the only Indian company to be included in the fifth ann ual list of the ‘ 2011 World’s Most EthicalCompanies’ by Ethisphere Institute, USA

i HDFC voted ‘Best Investor Relations’ in India – Finance Asia ’s 2011 Annual Poll

i HDFC ranked amongst India’s best companies to work for – Grea t Place to Work Institute®, 2012

i Awarded the ‘Best Foreign Enterprise with a Developmental R ole in Housing Finance in Africa’ – AfricanReal Estate & Housing Finance Academy

i HDFC one of India’s ‘Best Managed Companies’ for two consecu tive years – Finance Asia’s 2010 and 2011Annual Poll

i ‘India Shining Star CSR Award’ – for Outstanding CSR in the Ba nking and Financial Sector – FY11

Thank YouThank YouThank YouThank You

51

Thank YouThank YouThank YouThank You

January 29, 2014

hdfc jan22 14

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