Introduction to Our How We Our Responsible Statutory Reports and

Overview HDFC Bank Performance Create Value Strategy Business Financial Statements

BALANCE SHEET SIZE

(C CR)

20,68,535
FY22
17,46,871
FY21
15,30,511
FY20

PROFIT AFTER TAX EARNINGS PER SHARE DEPOSITS

(C CR) (C) (C CR)

36,961 66.8 15,59,217

FY22 FY22 FY22
31,117 56.6 13,35,060
FY21 FY21 FY21
26,257 48.0 11,47,502
FY20 FY20 FY20

ADVANCES RETURN ON EQUITY GROSS NPA RATIO

(C CR) (%)

13,68,821 16.9 1.17

FY22 FY22 FY22
11,32,837 16.6 1.32
FY21 FY21 FY21
9,93,703 16.8 1.26
FY20 FY20 FY20

RETURN ON ASSETS DIVIDEND PER SHARE COST TO INCOME RATIO

(AVERAGE) (C)

2.03 15.5* 36.9

FY22 FY22 FY22
1.97 6.5** 36.3
FY21 FY21 FY21
2.01 Nil*** 38.6
FY20 FY20 FY20

RUPEE EARNED (%) RUPEE SPENT (%)

FY22 FY22

12.4 8.8

62.6 2.0 40.5 10.9

Commission, Exchange,  Tax
2.5 Brokerage Provisions
Other Interest Income 2.6 Dividend & Tax theron
FX & Derivative Income Trans to Reserve
18.5 Income from Investments
10.1 Operating Expense
Others Interest Expense
Interest from Advances

1.9

27.2

*Proposed
**Basis RBI notification dated April 22, 2021
***Basis RBI notifications dated April 17, 2020 and December 4, 2020.

HDFC Bank Limited Integrated Annual Report 2021-22 17

Balance Sheet
As at March 31, 2022

` in '000
As at As at
Schedule
March 31, 2022 March 31, 2021
CAPITAL AND LIABILITIES
Capital 1 5,545,541 5,512,776
Reserves and surplus 2 2,395,383,846 2,031,695,513
Deposits 3 15,592,174,400 13,350,602,208
Borrowings 4 1,848,172,073 1,354,873,236
Other liabilities and provisions 5 844,074,643 726,021,504
Total 20,685,350,503 17,468,705,237
ASSETS
Cash and balances with Reserve Bank of India 6 1,299,956,352 973,407,363
Balances with banks and money at call and short notice 7 223,312,892 221,296,594
Investments 8 4,555,356,930 4,437,282,921
Advances 9 13,688,209,314 11,328,366,309
Fixed assets 10 60,836,735 49,093,169
Other assets 11 857,678,280 459,258,881
Total 20,685,350,503 17,468,705,237
Contingent liabilities 12 13,954,422,995 9,710,975,961
Bills for collection 569,680,463 447,481,440
Significant accounting policies and notes to the financial statements 17 & 18
The schedules referred to above form an integral part of the Balance Sheet.

As per our report of even date For and on behalf of the Board

For MSKA & Associates For M M Nissim & Co LLP Atanu Chakraborty Umesh Chandra Sarangi
Chartered Accountants Chartered Accountants Part Time Chairman of the Board Independent Director
ICAI Firm Registration Number: ICAI Firm Registration Number:
105047W 107122W/W100672 M. D. Ranganath Malay Patel
Independent Director Independent Director

Swapnil Kale Sanjay Khemani Lily Vadera Sashidhar Jagdishan

Partner Partner Independent Director Managing Director & CEO
Membership Number: 117812 Membership Number: 044577
Kaizad Bharucha Srinivasan Vaidyanathan
Executive Director Chief Financial Officer

Santosh Haldankar
Mumbai, April 16, 2022 Company Secretary

220
Profit and Loss Account
For the year ended March 31, 2022

` in '000
Year ended Year ended
Schedule
March 31, 2022 March 31, 2021
I INCOME
Interest earned 13 1,277,531,191 1,208,582,265
Other income 14 295,099,004 252,048,927
Total 1,572,630,195 1,460,631,192
II EXPENDITURE
Interest expended 15 557,435,282 559,786,560
Operating expenses 16 374,421,858 327,226,301
Provisions and contingencies [Refer Schedule 18 (23)] 271,159,503 262,453,079
Total 1,203,016,643 1,149,465,940
III PROFIT
Net profit for the year 369,613,552 311,165,252
Balance in the Profit and Loss account brought forward 736,527,947 574,924,020
Total 1,106,141,499 886,089,272
IV APPROPRIATIONS
Transfer to Statutory Reserve 92,403,388 77,791,313
Dividend pertaining to previous year paid during the year 35,923,960 -
Transfer to General Reserve 36,961,355 31,116,525
Transfer to Capital Reserve 6,664,722 22,916,842
Transfer to / (from) Investment Reserve Account 2,331,331 616,645
Transfer to / (from) Investment Fluctuation Reserve - 17,120,000
Balance carried over to Balance Sheet 931,856,743 736,527,947
Total 1,106,141,499 886,089,272
V EARNINGS PER EQUITY SHARE (Face value ` 1 per share) ` `
Basic 66.80 56.58
Diluted 66.35 56.32
Significant accounting policies and notes to the financial statements 17 & 18
The schedules referred to above form an integral part of the Profit and Loss Account.

As per our report of even date For and on behalf of the Board

For MSKA & Associates For M M Nissim & Co LLP Atanu Chakraborty Umesh Chandra Sarangi
Chartered Accountants Chartered Accountants Part Time Chairman of the Board Independent Director
ICAI Firm Registration Number: ICAI Firm Registration Number:
105047W 107122W/W100672 M. D. Ranganath Malay Patel
Independent Director Independent Director

Swapnil Kale Sanjay Khemani Lily Vadera Sashidhar Jagdishan

Partner Partner Independent Director Managing Director & CEO
Membership Number: 117812 Membership Number: 044577
Kaizad Bharucha Srinivasan Vaidyanathan
Executive Director Chief Financial Officer

Santosh Haldankar
Mumbai, April 16, 2022 Company Secretary

HDFC Bank Limited Integrated Annual Report 2021-22 221

Cash Flow Statement
For the year ended March 31, 2022

` in '000
Year ended Year ended
March 31, 2022 March 31, 2021
Cash flows from operating activities:
Profit before income tax 490,154,792 416,589,837
Adjustments for:
Depreciation on fixed assets 15,998,039 13,024,133
(Profit) / loss on revaluation of investments (15,463,977) 14,853,243
Amortisation of premium on held to maturity investments 8,213,244 7,654,693
(Profit) / loss on sale of fixed assets 33,388 (15,407)
Provision / charge for non performing assets 106,334,842 116,499,658
Provision for standard assets and contingencies 49,569,684 42,694,827
Dividend from subsidiaries (8,308,954) (4,830,434)
Employee Stock Options Expense 3,259,696 -
649,790,754 606,470,550
Adjustments for:
Increase in investments (121,951,685) (525,406,084)
Increase in advances (2,466,388,983) (1,509,246,390)
Increase in deposits 2,241,572,192 1,875,579,261
(Increase) / decrease in other assets (380,235,846) 100,182,759
Increase / (decrease) in other liabilities and provisions 75,178,971 (6,756,511)
(2,034,597) 540,823,585
Direct taxes paid (net of refunds) (140,052,624) (125,875,723)
Net cash flows (used in) / from operating activities (142,087,221) 414,947,862
Cash flows from investing activities:
Purchase of fixed assets (21,407,866) (16,173,763)
Proceeds from sale of fixed assets 182,956 141,637
Dividend from subsidiaries 8,308,954 4,830,434
Net cash flow used in investing activities (12,915,956) (11,201,692)
Cash flows from financing activities:
Proceeds from issue of share capital, net of issue expenses 26,097,614 17,600,995
Proceeds from issue of Additional Tier I capital bonds 81,627,500 -
Redemption of Tier II capital bonds (36,500,000) (11,050,000)
Net proceeds / (repayments) in other borrowings 446,616,337 (80,362,136)
Dividend paid during the year (35,923,960) -
Net cash flow from / (used in) financing activities 481,917,491 (73,811,141)
Effect of exchange fluctuation on translation reserve 1,650,973 (1,418,252)
Net increase in cash and cash equivalents 328,565,287 328,516,777
Cash and cash equivalents as at April 1st 1,194,703,957 866,187,180
Cash and cash equivalents as at March 31st 1,523,269,244 1,194,703,957

As per our report of even date For and on behalf of the Board

For MSKA & Associates For M M Nissim & Co LLP Atanu Chakraborty Umesh Chandra Sarangi
Chartered Accountants Chartered Accountants Part Time Chairman of the Board Independent Director
ICAI Firm Registration Number: ICAI Firm Registration Number:
105047W 107122W/W100672 M. D. Ranganath Malay Patel
Independent Director Independent Director

Swapnil Kale Sanjay Khemani Lily Vadera Sashidhar Jagdishan

Partner Partner Independent Director Managing Director & CEO
Membership Number: 117812 Membership Number: 044577
Kaizad Bharucha Srinivasan Vaidyanathan
Executive Director Chief Financial Officer

Santosh Haldankar
Mumbai, April 16, 2022 Company Secretary

222
Schedules to the Financial Statements
As at March 31, 2022

Schedule 1 - Capital
` in '000
As at As at
March 31, 2022 March 31, 2021

Authorised capital
6,50,00,00,000 (31 March, 2021 : 6,50,00,00,000) Equity Shares of ` 1/- each 6,500,000 6,500,000
Issued, subscribed and paid-up capital
5,54,55,40,976 (31 March, 2021 : 5,51,27,76,482) Equity Shares of ` 1/- each 5,545,541 5,512,776
Total 5,545,541 5,512,776

Schedule 2 - Reserves and Surplus

` in '000
As at As at
March 31, 2022 March 31, 2021

I Statutory reserve
Opening balance 423,605,693 345,814,380
Additions during the year 92,403,388 77,791,313
Total 516,009,081 423,605,693
II General reserve
Opening balance 167,607,883 136,491,358
Additions during the year 36,961,355 31,116,525
Total 204,569,238 167,607,883
III Balance in profit and loss account 931,856,743 736,527,947
IV Share premium account
Opening balance 605,126,833 587,555,328
Additions during the year 26,064,849 17,571,505
Total 631,191,682 605,126,833
V Amalgamation reserve
Opening balance 10,635,564 10,635,564
Additions during the year - -
Total 10,635,564 10,635,564
VI Capital reserve
Opening balance 49,564,566 26,647,724
Additions during the year 6,664,722 22,916,842
Total 56,229,288 49,564,566
VII Investment reserve
Opening balance 616,645 -
Additions during the year 2,398,701 616,645
Deductions during the year (67,370) -
Total 2,947,976 616,645
VIII Investment fluctuation reserve
Opening balance 36,190,000 19,070,000
Additions during the year - 17,120,000
Total 36,190,000 36,190,000
IX Foreign currency translation account
Opening balance 1,820,382 3,238,634
Additions / (deductions) during the year 1,650,973 (1,418,252)
Total 3,471,355 1,820,382
X Cash flow hedge reserve
Opening balance - -
Additions / (deductions) during the year (976,777) -
Total (976,777) -

HDFC Bank Limited Integrated Annual Report 2021-22 223

Consolidated Balance Sheet
As at March 31, 2022

` in crore
As at As at
Schedule
March 31, 2022 March 31, 2021
CAPITAL AND LIABILITIES
Capital 1 554.55 551.28
Reserves and surplus 2 246,771.62 209,258.90
Minority interest 2A 720.41 632.76
Deposits 3 1,558,003.03 1,333,720.87
Borrowings 4 226,966.50 177,696.75
Other liabilities and provisions 5 89,918.19 77,646.07
Total 2,122,934.30 1,799,506.63
ASSETS
Cash and balances with Reserve Bank of India 6 130,030.71 97,370.35
Balances with banks and money at call and short notice 7 25,355.02 23,902.16
Investments 8 449,263.86 438,823.11
Advances 9 1,420,942.28 1,185,283.52
Fixed assets 10 6,283.28 5,099.56
Other assets 11 90,910.36 48,879.14
Goodwill on Consolidation 148.79 148.79
Total 2,122,934.30 1,799,506.63
Contingent liabilities 12 1,400,197.64 975,280.66
Bills for collection 56,968.05 44,748.14
Significant accounting policies and notes to the Consolidated financial statements 17 & 18
The schedules referred to above form an integral part of the Consolidated Balance Sheet.

As per our report of even date For and on behalf of the Board

For MSKA & Associates For M M Nissim & Co LLP Atanu Chakraborty Umesh Chandra Sarangi
Chartered Accountants Chartered Accountants Part Time Chairman of the Board Independent Director
ICAI Firm Registration Number: ICAI Firm Registration Number:
105047W 107122W/W100672 M. D. Ranganath Malay Patel
Independent Director Independent Director

Swapnil Kale Sanjay Khemani Lily Vadera Sashidhar Jagdishan

Partner Partner Independent Director Managing Director & CEO
Membership Number: 117812 Membership Number: 044577
Kaizad Bharucha Srinivasan Vaidyanathan
Executive Director Chief Financial Officer

Santosh Haldankar
Mumbai, April 16, 2022 Company Secretary

308
Consolidated Profit and Loss Account
For the year ended March 31, 2022

` in crore
Year ended Year ended
Schedule
March 31, 2022 March 31, 2021
I INCOME
Interest earned 13 135,936.41 128,552.40
Other income 14 31,758.99 27,332.88
Total 167,695.40 155,885.28
II EXPENDITURE
Interest expended 15 58,584.33 59,247.59
Operating expenses 16 40,312.43 35,001.26
Provisions and contingencies [Refer Schedule 18 (12)] 30,647.74 29,779.66
Total 129,544.50 124,028.51
III PROFIT
Consolidated Net Profit for the year before minorities' interest 38,150.90 31,856.77
Less : Minorities' Interest 98.15 23.56
Consolidated Net Profit for the year attributable to the group 38,052.75 31,833.21
Add: Brought forward consolidated profit attributable to the group 78,594.20 61,817.68
Total 116,646.95 93,650.89
IV APPROPRIATIONS
Transfer to Statutory Reserve 9,444.38 7,879.70
Dividend pertaining to previous year paid during the year 3,592.40 -
Transfer to General Reserve 3,696.14 3,111.65
Transfer to Capital Reserve 666.47 2,291.68
Transfer to / (from) Investment Reserve Account 233.13 61.66
Transfer to / (from) Investment Fluctuation Reserve - 1,712.00
Transfer to / (from) Minority Interest (opening adjustment) (48.34) -
Balance carried over to consolidated balance sheet 99,062.77 78,594.20
Total 116,646.95 93,650.89
V EARNINGS PER EQUITY SHARE (Face value ` 1 per share) ` `
Basic 68.77 57.88
Diluted 68.31 57.61
Significant accounting policies and notes to the Consolidated financial statements 17 & 18
The schedules referred to above form an integral part of the Consolidated Profit and Loss
Account.

As per our report of even date For and on behalf of the Board

For MSKA & Associates For M M Nissim & Co LLP Atanu Chakraborty Umesh Chandra Sarangi
Chartered Accountants Chartered Accountants Part Time Chairman of the Board Independent Director
ICAI Firm Registration Number: ICAI Firm Registration Number:
105047W 107122W/W100672 M. D. Ranganath Malay Patel
Independent Director Independent Director

Swapnil Kale Sanjay Khemani Lily Vadera Sashidhar Jagdishan

Partner Partner Independent Director Managing Director & CEO
Membership Number: 117812 Membership Number: 044577
Kaizad Bharucha Srinivasan Vaidyanathan
Executive Director Chief Financial Officer

Santosh Haldankar
Mumbai, April 16, 2022 Company Secretary

HDFC Bank Limited Integrated Annual Report 2021-22 309

Consolidated Cash Flow Statement
For the year ended March 31, 2022

` in crore
Year ended Year ended
March 31, 2022 March 31, 2021
Cash flows from operating activities:
Consolidated profit before income tax 50,775.24 42,772.58
Adjustments for:
Depreciation on fixed assets 1,680.73 1,385.01
(Profit) / loss on revaluation of investments (1,546.40) 1,485.32
Amortisation of premium on held to maturity investments 821.32 765.47
(Profit) / loss on sale of fixed assets 3.25 0.29
Provision / charge for non performing assets 13,286.95 13,927.01
Provision for standard assets and contingencies 5,418.21 5,283.07
Employee Stock Options Expense 341.24 -
70,780.55 65,618.75
Adjustments for:
Increase in investments (10,849.22) (50,156.64)
Increase in advances (248,946.13) (155,681.07)
Increase in deposits 224,282.15 187,513.74
(Increase) / decrease in other assets (40,044.70) 8,307.68
Increase / (decrease) in other liabilities and provisions 7,655.94 (104.56)
2,878.59 55,497.90
Direct taxes paid (net of refunds) (14,838.16) (13,021.45)
Net cash flow (used in) / from operating activities (11,959.57) 42,476.45
Cash flows from investing activities:
Purchase of fixed assets (2,236.24) (1,696.15)
Proceeds from sale of fixed assets 19.91 15.28
Net cash flow used in investing activities (2,216.33) (1,680.87)
Cash flows from financing activities:
Increase in minority interest 135.83 56.12
Proceeds from issue of share capital, net of issue expenses 2,609.76 1,760.10
Proceeds from issue of Additional Tier I and Tier II capital bonds 8,312.75 356.50
Redemption of Tier II capital bonds (3,650.00) (1,105.00)
Net proceeds / (repayments) in other borrowings 44,308.08 (8,389.07)
Dividend paid during the year (3,592.40) -
Net cash flow from / (used in) financing activities 48,124.02 (7,321.35)
Effect of exchange fluctuation on translation reserve 165.10 (141.83)
Net increase in cash and cash equivalents 34,113.22 33,332.40
Cash and cash equivalents as at April 1st 121,272.51 87,940.11
Cash and cash equivalents as at March 31st 155,385.73 121,272.51

As per our report of even date For and on behalf of the Board

For MSKA & Associates For M M Nissim & Co LLP Atanu Chakraborty Umesh Chandra Sarangi
Chartered Accountants Chartered Accountants Part Time Chairman of the Board Independent Director
ICAI Firm Registration Number: ICAI Firm Registration Number:
105047W 107122W/W100672 M. D. Ranganath Malay Patel
Independent Director Independent Director

Swapnil Kale Sanjay Khemani Lily Vadera Sashidhar Jagdishan

Partner Partner Independent Director Managing Director & CEO
Membership Number: 117812 Membership Number: 044577
Kaizad Bharucha Srinivasan Vaidyanathan
Executive Director Chief Financial Officer

Santosh Haldankar
Mumbai, April 16, 2022 Company Secretary

310
Schedules to the Consolidated Financial Statements
As at March 31, 2022

Schedule 1 - Capital
` in crore
As at As at
March 31, 2022 March 31, 2021

Authorised capital
6,50,00,00,000 (31 March, 2021 : 6,50,00,00,000) Equity Shares of ` 1/- each 650.00 650.00
Issued, subscribed and paid-up capital
5,54,55,40,976 (31 March, 2021 : 5,51,27,76,482) Equity Shares of ` 1/- each 554.55 551.28
Total 554.55 551.28

Schedule 2 - Reserves and Surplus

` in crore
As at As at
March 31, 2022 March 31, 2021

I Statutory reserve
Opening balance 43,483.53 35,603.83
Additions during the year 9,444.38 7,879.70
Total 52,927.91 43,483.53
II General reserve
Opening balance 16,785.79 13,674.14
Additions during the year 3,696.14 3,111.65
Total 20,481.93 16,785.79
III Balance in profit and loss account 99,062.77 78,594.20
IV Share premium account
Opening balance 60,512.68 58,755.53
Additions during the year 2,606.48 1,757.15
Total 63,119.16 60,512.68
V Amalgamation reserve
Opening balance 1,063.56 1,063.56
Additions during the year - -
Total 1,063.56 1,063.56
VI Capital reserve
Opening balance 4,956.45 2,664.77
Additions during the year 666.47 2,291.68
Total 5,622.92 4,956.45
VII Investment reserve
Opening balance 61.66 -
Additions during the year 239.87 61.66
Deductions during the year (6.74) -
Total 294.79 61.66
VIII Investment fluctuation reserve
Opening balance 3,619.00 1,907.00
Additions during the year - 1,712.00
Total 3,619.00 3,619.00
IX Foreign currency translation account
Opening balance 182.03 323.86
Additions / (deductions) during the year 165.12 (141.83)
Total 347.15 182.03
X Cash flow hedge reserve
Opening balance - -
Additions / (deductions) during the year (108.09) -
Total (108.09) -

HDFC Bank Limited Integrated Annual Report 2021-22 311

Basel III - Pillar 3 Disclosures
As at March 31, 2022

The Reserve Bank of India (RBI) vide its circular under reference DBR.No.BP.BC.1/21.06.201/2015-16 dated July 1, 2015 on 'Basel
III Capital Regulations' (‘Basel III circular’), as amended from time to time, read together with the circular under reference DBR.
No.BP.BC.80/21.06.201/2014-15 dated March 31, 2015 on 'Prudential Guidelines on Capital Adequacy and Liquidity Standards
- Amendments', circular under reference DBR.BP.BC.No.106/21.04.098/2017-18 dated May 17, 2018 on ‘Standards - Net Stable
Funding Ratio (NSFR) - Final Guidelines’ and subsequent amendments thereof, requires banks to make Pillar 3 disclosures including
leverage ratio, liquidity coverage ratio and net stable funding ratio under the Basel III Framework. These disclosures are available
on HDFC Bank's website under the ‘Regulatory Disclosures’ section. The link to this section is given below:

https://www.hdfcbank.com/personal/resources/regulatory-disclosures

The Regulatory Disclosures section contains the following disclosures:

• Qualitative and quantitative Pillar 3 disclosures:

 Scope of application

 Capital adequacy

 Credit risk

 Credit risk: Portfolios subject to the standardised approach

 Credit risk mitigation: Disclosures for standardised approach

 Securitisation exposures

 Market risk in trading book

 Operational risk

 Asset Liability Management (‘ALM’) risk management

 General disclosures for exposures related to counterparty credit risk

 Equities: Disclosure for banking book positions

• Composition of capital and reconciliation requirements.

• Main features and full terms and conditions of regulatory capital instruments.

• Leverage ratio disclosures.

• Liquidity coverage ratio disclosure.

• Net stable funding ratio disclosure.

360