Housing Development Finance Corporation Limited
March 2014
2
CONTENTS• HDFC Snapshot
• Mortgage Market in India
• Operational and Financial Highlights: Mortgages
• Valuations and Shareholding
• Key Subsidiaries and Associates
• Financials: Consolidated and Standalone
3
HDFC SNAPSHOT
4
WHO WE ARE…• Incorporated in 1977 as the first specialised mortgage
company in India• Now a Financial Conglomerate with interests beyond
mortgages:
• 76% shares held by Foreign Investors
HDFC
22.6% HDFC Bank
72.4% HDFC
Standard Life Insurance
59.8% HDFC Asset Management
73.8%HDFC ERGO
General Insurance
59.2%GRUH
Finance
100% HDFC
Property Ventures
80.5% HDFC
Venture Capital
89.5%^ Credila
Financial Services
HDFC Snapshot
^ On a fully diluted basis
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BUSINESS SUMMARY• Loans Outstanding (Net of loans sold) : Rs. 1,971 bn
(March 31, 2014) : US$ 32.76 bn
• Individual Loans Originated CAGR (5 years) : 20%
• Cumulative Housing Units Financed : 4.7 million
• Total loan write offs since inception : Under 4 basis points(of cumulative disbursements)
• Cost to Income Ratio (FY14) : 7.9%
• Unrealised gains on listed investments : Rs. 382.13 bn(March 31, 2014) : US$ 6.35 bn
• Profit After Tax CAGR (5 years) : Standalone - 19%: Consolidated - 28%
HDFC Snapshot
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No. of Outlets
2004 – 1732005 – 2032006 – 2192007 – 2342008 – 2502009 – 2672010 – 2782011 – 2892012 – 3112013 – 3312014 – 354
HDFC Snapshot
Outreach programmes to several locations Deposit & loan products offered to individuals in over 2,400 locationsInclusive 93 outlets of HDFC’s wholly owned distribution company
Denotes cities with 4 or more offices
Denotes cities with 3 Offices
Offices
DISTRIBUTION
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MORTGAGE MARKET IN INDIA
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• High demand growth driven by:– Improved Affordability
• Rising disposable income • Tax incentives (interest and principal repayments deductible)• Affordable interest rates
– 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 at 18.76 million units (Source: Ministry of Housing & Urban Poverty Alleviation)
MARKET SCENARIO
Mortgage Market in India
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IMPROVED AFFORDABILITY
22.0
15.6
11.1
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
6.00
8.00
10.00
12.00
0
10
20
30
40
50
60
Ann
ual I
ncom
e (R
s. L
ac)
Prop
erty
Val
ue (R
s. L
ac) &
Aff
orda
bilit
y
Property Cost (Rs. Lac) Affordability Annual Income (Rs. Lac)
Mortgage Market in India
1 Lac = 1,00,000
Representation of property price estimates Affordability equals property prices by annual income
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TAX INCENTIVES HAVE LOWERED THE EFFECTIVE RATES ON MORTGAGES
Mortgage Market in India
FY 2015 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 150,000 150,000 75,000
Deduction on principal 100,000 20,000 20,000
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 84,975 53,550 32,775
Effective interest paid on home loan 120,025 161,450 232,225
Effective interest on home loan 6.0% 8.1% 11.6%
Note - FY 2015: The maximum deduction for interest allowed could be Rs. 2,50,000 if the loan was taken during the period April 1, 2013 to March 31, 2014.
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0%
20%
40%
60%
80%
100%
120%
9%17% 20%
32% 36% 40%45% 45%
56%
69%81%
101%
LOW PENETRATION IMPLIES ROOM FOR GROWTH MORTGAGES AS A PERCENT OF NOMINAL GDP
Mortgage Market in India
Source: European Mortgage Federation, HOFINET & HDFC estimates for India
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OPERATIONAL & FINANCIAL HIGHLIGHTS: MORTGAGES
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HDFC’s ASSETS (As at March 31, 2014)
87%
6%7%
Loans (including debentures & corporate deposits for financing real estate projects) - 87%Investments - 6%
Other Assets - 7%
Total Assets as at March 31, 2014Rs. 2,257.57 billion (US$ 37.52 billion)
Total Assets as at March 31, 2013Rs. 1,953.61 billion (US$ 32.47 billion)
Total assets have been computed as per Indian Accounting Standards and consequently not fair valued.The unrealised gain on listed and unlisted investments as at March 31, 2014 has not been considered inthe aforesaid. The unrealised gain on listed investments as at March 31, 2014 stood at Rs. 382.13 bn.
Operational & Financial Highlights: Mortgages
US $ amounts are converted based on the exchange rate of US$ 1= Rs. 60.17
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INDIVIDUAL LOANS– Home Loans
• Fixed rate loans• Floating rate loans
– Home Improvement Loans
– Home Extension Loans– Home Equity Loans– Short Term Bridging
Loan– Loans to NRIs
CORE BUSINESS – LENDING(As at March 31, 2014)
Operational & Financial Highlights: Mortgages
March 31, 2014Rs. in billion
Gross Loans 2,178Less: Loans securitised - on which spread is earned over the life of the loan 207Loans Outstanding 1,971
LOANS
Individuals 71% Corporate
11%
Construction Finance
13%
Lease Rental Discounting
5%
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ANALYSIS OF THE LOAN BOOK
Loans Outstanding* 31-Mar-14 31-Mar-13 Net Increase FY 2014 FY 2013Rs. bn Rs. bn Rs. bn
Individuals 1,402 1,113 289 85% 81%Non Individuals 638 587 51 15% 19%
2,040 1,700 340 100% 100%
% of incremental loans
* Includes loans sold
Operational & Financial Highlights: Mortgages
As at March 31, 2014
Rs. bn % Growth Rs. bn % GrowthIndividuals 1,333 20% 1,402 26%Non Individuals 638 9% 638 9%Total 1,971 16% 2,040 20%
Loan Book o/sLoan Book o/s Before Sell Down in last 12
months
Incremental Growth of the Loan Book
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CONTINUING GROWTH MOMENTUM(As at March 31, 2014)
0400800
120016002000
Mar-12 Mar-13 Mar-14
1,408.75 1,700.46
1971.00
Rs.
in b
illio
n
LOANS OUTSTANDING(Net of loans sold)
0
25
50
75
100
Mar-12 Mar-13 Mar-14
49.78 51.75
69.44
Rs.
in b
illio
n
LOANS SOLD(In the preceding 12 months)
As at March 31, 2014:• The growth in the loan book inclusive of loans sold in the previous 12 months is 20%• Loans amounting to Rs. 53.17 bn were sold during the quarter ended March 31, 2014•Loans sold (outstanding): Rs. 206.63 bn - on which spread at 1.32% p.a. is to be earned over the life of the loan
Operational & Financial Highlights: Mortgages
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HDFC Bank 24%
HDFC Sales Private Limited
46%
Direct Walk-ins 12%
Other Direct Selling Agents 18%
82% OF OUR MORTGAGES ARE SOURCED BY OURSELVES OR THROUGH OUR AFFILIATES
Operational & Financial Highlights: Mortgages
March 31, 2014
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OUR CONSERVATIVE LOAN PROFILE UNDERLIES OUR HIGH CREDIT QUALITY
• Average Loan Size : Rs. 2.21 mn (~US$ 36,729)
• Average Loan to Value : 65% (at origination)
• Average Loan Term : 13 years
• Primary Security : Mortgage of property financed
• Repayment Type : Amortising
Operational & Financial Highlights: Mortgages
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0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
FY12 FY13 FY14
0.74% 0.70% 0.69%
1.16%1.05%
0.96%
GROSS NPLs PROVISIONS FOR CONTINGENCIES
GROSS NON-PERFORMING LOANS & PROVISIONS FOR CONTINGENCIES
Perc
enta
geOperational & Financial Highlights: Mortgages
As at March 31, 2014(Rs. in bn)
NPLs (3 months): 13.57
Provisions forContingencies: 19.07Of which NPAs: 5.46Other Provisioning: 13.61
Regulatory Provisioning: 14.60
Excess Provisioningover Regulatory Provisioning: 4.47
•Total NPLs: 0.69% of which:•Individual Loans: 0.53%,•Non-Individual Loans: 1.01%
•Total loan write-offs since inception is less than 4 basis points of cumulative disbursements.
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12%
82%
6%
Shareholders' Funds
Borrowings
Other Liabilities
Rs. 279.55 bn
Rs. 1,842.98 bn
Rs. 135.04 bn
LIABILITIES(As at March 31, 2014)
Operational & Financial Highlights: Mortgages
Total Liabilities Rs. 2,257.57 bn (PY Rs. 1,953.61 bn)
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26% 33% 31%
28% 11% 18%
46%56% 51%
0%
20%
40%
60%
80%
100%
Mar-12 Mar-13 Mar-14
Debentures & SecuritiesTerm LoansDeposits
MULTIPLE SOURCES OF BORROWINGS(As at March 31, 2014)
Total Borrowings Rs. 1,842.98 bn (PY Rs. 1,588.28 bn)
Perc
enta
geOperational & Financial Highlights: Mortgages
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BORROWINGS (2)Operational & Financial Highlights: Mortgages
Borrowings 31-Mar-14 31-Mar-13 Net Increase
During the year FY 2014
Rs. bn Rs. bn Rs. bn % of incremental funding
Term Loans 330 178 152 60%Debentures & Securities 948 891 57 22%Deposits 565 519 46 18%Total 1,843 1,588 255 100%
Net increase in funding for the year ended March 31, 2014
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618
1,046
594 645
1,082
531
0
200
400
600
800
1,000
1,200
Up to 1 yr 2-5 yrs Over 5 yrs
Assets Liabilities
Rs.
in b
illio
n
MATURITY PROFILE(As at March 31, 2014)
The above graph reflects adjustments for prepayments and renewals in accordance with the guidelines issued by National Housing Bank.
Operational & Financial Highlights: Mortgages
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10.30%
11.83% 11.98% 11.78%
7.97% 9.56% 9.68%9.49%
2.33%
2.27%2.30%
2.29%
2.10%
2.15%
2.20%
2.25%
2.30%
2.35%
2.40%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
FY11 FY12 FY13 FY14
Return on Loans Cost of Borrowings Spread
LOAN SPREADS
Operational & Financial Highlights: Mortgages
April-March 2014Spread earned on:Individual Loans 1.97%Non-individual Loans 2.95%Loan Book 2.29%
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STRENGTHSHome Loan Strengths• Low average loan to value ratio and instalment to income ratios• Efficient recovery mechanisms• Steady level of prepayments• Quality underwriting with experience of over 35 years
Corporate Strengths• Strong brand – customer base of 4.7 million • Stable and experienced management – average tenor of senior
management in HDFC ~ 30 years• High service standards• Low cost income ratio: 7.9% (As at March 31, 2014)
Operational & Financial Highlights: Mortgages
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PRODUCTIVITY RATIOS
Operational & Financial Highlights: Mortgages
FY14 FY10 FY00 FY90Number of employees 1,956 1,505 794 727
Number of outlets 261 214 67 24
Profit per employee (US$ '000) 462 416 118 8
Assets per employee (US$ mn) 18.1 16.4 4.4 0.5
Admin costs/assets (%) 0.30 0.29 0.49 0.76
Cost income ratio (%) 7.9 7.9 13.8 30.9
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FY14 FY13 FY12Pre Tax RoAA (%) 3.8 3.8 3.9Post Tax RoAA (%) 2.7 2.8 2.8ROE (%) # 20.5 22.0 22.7Capital Adequacy (%) ^ 17.9 16.4 14.6
Of which Tier I 15.4 13.9 11.6 Tier II 2.5 2.5 3.0
KEY FINANCIAL METRICS
# FY 13: Net worth includes an amount of Rs. 32.85 bn realised on the conversion of 99.9% ofthe Warrants issued into equity shares.
^As at March 31, 2014: The Capital Adequacy Ratio (CAR) of 17.9% is without reducing theinvestment in HDFC Bank from Tier 1 Capital, while treating it as a 100% risk weight. The CARafter reducing the investment in HDFC Bank from Tier I capital stood at 14.6%, of which Tier Icapital: 12.1% and Tier II capital: 2.5%.
Operational & Financial Highlights: Mortgages
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VALUATIONS & SHAREHOLDING
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VALUATIONS & RETURNS
^ Adjusted only for unrealised gains on listed investments amounting to Rs. 382.13 bn as at March 31, 2014. All unlisted investments, including investments 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 rate of US $ 1= Rs. 60.17
Valuations and Shareholding
Mar-14 Mar-13 Mar-12 Market price per share (Rs) 884 826 674Market Capitalisation (USD Bn) 23 21 17Earnings per share (Rs) 35 32 28Price Earnings Ratio (times) 25.4 26.0 24.1Book Value per share (Rs) - Indian GAAP 179 162 129Price to Book Ratio (times) 4.9 5.1 5.2^Adjusted Book value per share (Rs) 424 362 294(Without considering any gain on unlisted investments)
^Price to Book ratio 2.1 2.3 2.3Foreign Shareholding (%) 76 74 71
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SHAREHOLDING PATTERN(As at March 31, 2014)
76%
10%
9%3%2%
Foreign Shareholders - 76%
Individuals - 10%
Financial Institutions, Banks & Insurance Companies - 9%
Mutual Funds - 3%
Companies - 2%
Valuations and Shareholding
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KEY ASSOCIATES AND SUBSIDIARIES
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HDFC BANK• 22.6% owned by HDFC• Market Cap US$ 29.9 bn• ADRs listed on NYSE• 3,403 branches, 11,256 ATMs, 2,171 locations• Key business areas
– Wholesale banking Retail banking Treasury operations• Financials (as per Indian GAAP) for the year ended March 31, 2014
– Advances as at March 31, 2014, stood at Rs. 3,030 bn – an increase of 26% over theprevious year
– Total deposits stood at Rs. 3,673 bn – an increase of 24% over the previous year– PAT: Rs. 84.78 bn – an increase of 26% 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 assignment to HDFC Bank
– HDFC retains a spread on the loans that have been assigned
Associates and Subsidiaries
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Ownership and Capitalisation
• HDFC holds 72.4% and Standard Life 26% of the equity of HDFC Life
• Paid up share capital as at March 31, 2014: Rs. 19.9 bn
• Maiden dividend – 5%
Premium income and growth• Gross premium income stood at Rs. 120.63 bn as against Rs. 113.23 bn in
the previous year• Group business grew by 30%, renewal premium by 17%• Share of renewal premium to total premium for FY14 is 67% (PY 61%)
Market share• Ranked third in the private market share in FY14• Individual business market share of 13.8% (private sector) and 5.2% (overall)
(Source: IRDA)
HDFC STANDARD LIFE INSURANCE COMPANY LTD. (HDFC LIFE)
Associates and Subsidiaries
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Assets Under Management• As at March 31, 2014, Assets Under Management stood at Rs. 503 bn – an
increase of 25% over March 31, 2013
Products• Offers 22 individual products and 8 group products along with 9 optional
riders• Offers 26 fund options across product categories
Distribution• HDFC group network is used to cross sell by offering customised products• Operates out of 429 offices across the country serving over 985 locations
and a liaison office in Dubai• Network of 75,000 financial consultants, 4 key bancassurance partners, 7 pan
India brokers and corporate agency tie-ups
HDFC STANDARD LIFE INSURANCE COMPANY LTD.
Associates and Subsidiaries
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Solvency Ratio• As at March 31, 2014: 194% (as against regulatory requirement of 150%)
Operating highlights (Year ended March 31, 2014)
• Commission ratio: 4.3% (PY 5.7%)• Operating expenses: 10.7% (PY 10.8%)• Individual business conservation ratio: 79% (PY 79%)
Financial highlights
• Indian GAAP profits for FY14 stood at Rs. 7.3 bn (PY Rs. 4.5 bn)• For the year ended March 31, 2014, new business margin on individual
business stood at 26% {based on loaded acquisition expenses} - (PY 17.8%)
• Market Consistent Embedded Value: Rs. 69.9 bn
HDFC STANDARD LIFE INSURANCE COMPANY LTD.
Associates and Subsidiaries
36
HDFC ASSET MANAGEMENT• Tie-up with Standard Life Investments (SLI)
• HDFC holds 59.8% of HDFC Asset Management
• HDFC MF manages 50 schemes comprising debt, equity, gold exchangetraded fund and fund of fund schemes
• Earned a Profit After Tax of Rs. 3.58 bn for FY14
• Paid a dividend of 500% for FY14
• Average Assets under Management as at March 31, 2014, stood at Rs.1,167.53 bn which is inclusive of assets under discretionary portfoliomanagement and advisory services
• Equity assets of HDFC MF as a proportion of total MF assets is 36%
• Largest in the industry on the basis of quarterly average assets undermanagement (Source: AMFI)
Associates and Subsidiaries
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HDFC ERGO GENERAL INSURANCE COMPANY LTD.Ownership and Capitalisation
• Paid up share capital as at March 31, 2014: Rs. 5.29 bn
• HDFC holds 73.8% and ERGO 25.9% of the equity of HDFC ERGO
• Maiden dividend – 5%
For the year ended March 31, 2014
• Gross direct premium: Rs. 29.78 bn (PY Rs. 24.91 bn) – growth of 20%
• Profit After Tax: Rs. 1.95 bn (PY Rs. 1.55 bn)
• Combined Ratio as at March 31, 2014: 97.9% before Declined Pool losses (PY96.7% calculated in a similar manner)
• Solvency as at March 31, 2014: 160% (as against regulatory requirement of150%)
Associates and Subsidiaries
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HDFC ERGO GENERAL INSURANCE COMPANY LTD.Market share
• Market share of 8.5% (private sector) and 4% (overall) in terms of gross direct
premium in FY14 (Source: GI Council)
Products• The company offers insurance products such as:
– Motor, health, travel, home and personal accident in the retail segmentand;
– Property, marine, aviation and liability insurance in the corporatesegment
• Retail accounts for 55% of the total business
Distribution• Operates out of 108 branches across the country• HDFC group network is used to cross sell home and health insurance products
Associates and Subsidiaries
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GRUH FINANCE LIMITED (GRUH)• 59.2% owned by HDFC
• Registered housing finance company offering loans to individuals forpurchase, construction and renovation of dwelling units
• Also offers loans to the self employed segment where formal incomeproofs are not available
• Retail network of 142 offices across 7 states in India – Gujarat, Maharashtra,Karnataka, Rajasthan, Madhya Pradesh, Chhattisgarh and Tamil Nadu
• Financials for the year ended March 31, 2014
• Loan portfolio as March 31, 2014 stood at Rs. 70.09 bn – an increase of29% over the previous year
• Gross non-performing assets (NPAs) : 0.27%
• PAT: Rs. 1.77 billion – an increase of 21% over the previous year
• Market Capitalisation: US$ 884 mn
Associates and Subsidiaries
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HDFC 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; 1.55 X of the fund corpus has been returned to investors
• HIREF International LLC– Fund corpus : US$ 750 mn– International investors, 9 year close-ended fund– Targeted at premier institutions and funds across the world interested in taking an exposure to
Indian real estate – Fund is completely deployed and exits have commenced 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
Associates and Subsidiaries
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CREDILA FINANCIAL SERVICES• HDFC holds 89.5% in Credila Financial Services Private 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-graduate students studying
in India or abroad
• As at March 31, 2014:
– Cumulative disbursements: Rs. 14.58 bn
– Loan book outstanding as at March 31, 2014: Rs. 11.81 bn – growth of
53% over last year
– Average loan: Rs. 0.94 mn
Associates and Subsidiaries
42
FINANCIALS Consolidated & Standalone
43
Mar-14 Mar-13 Growth(Rs. in bil l ion) (Rs. in bil l ion) (%)
HDFC Profit After Tax 54.40 48.48 12HDFC Life (net of dividend) 4.40 3.27 HDFC Ergo (net of dividend) 1.21 1.14 GRUH (net of dividend) 0.73 0.58 HDFC Bank (net of dividend) 16.16 12.84 HDFC-AMC (net of dividend) 1.23 1.09 Others (net of dividend) 1.35 (1.00) Consolidated Profit After Tax 79.48 66.40 20Adjustment for: Securities Premium debited in HDFC for Zero Coupon Bonds (3.57) (4.38)
75.91 62.02 22Contribution of subs/associates to the consolidated PAT 32 27
CONSOLIDATED PROFIT AFTER TAXAs per Indian GAAP
Financials
44
Mar-14 Mar-13 Growth(Rs . in billion) (Rs. in billion) (%)
Sources of FundsShareholders' Funds 401.31 318.91 Minority Interest 14.24 10.71 Policy Liabilities 450.03 350.86 Loan Funds 1,909.33 1,636.63 17Current Liabilities & Provisions 197.44 200.67
2,972.35 2,517.78 18
Application of FundsLoans * 2,047.48 1,758.25 16Investments 729.14 594.92 Current Assets, Advances & Fixed Assets 193.88 162.76 Goodwill on Consolidation 1.85 1.85
2,972.35 2,517.78 18
BALANCE SHEET (Consolidated)
*Net of loans sold during the preceding 12 months amounting to Rs. 69.44 bn. If these loans were included, the growth in loans would have been 20%.Loans amounting to Rs. 53.17 bn sold during the quarter ended March 31, 2014.
Financials
45
PROFIT AND LOSS ACCOUNT (Consolidated)
Financials
FY14 FY13 GrowthIncome (Rs. in billion) (Rs. in billion) (%)Revenue from Operations 255.83 220.33 16Profit on Sale of Investments 2.94 3.78Other Income 0.61 0.39Premium Income from Insurance Business 135.40 126.50 7Other Operating Income from Insurance Business 13.36 8.87Total Income 408.14 359.87 13ExpensesFinance Cost 166.08 142.95 16Staff/Establishment/Other Expenses 12.05 10.83Claims paid pertaining to Insurance Business 59.70 52.22Commission, Operating, Other Expenses - Insurance Business 80.28 77.17Depreciation/Provision for Contingencies 1.57 2.03
319.68 285.20 12Profit Before Tax 88.46 74.67 18Tax Expense 23.58 20.02Net Profit (before Profit of Associates and adjustment of minority Interest) 64.88 54.65 19Share of profit of minority interest (4.55) (3.41)Net share of profit of Associates (Equity Method) 19.15 15.16Profit after Tax attributable to the Group 79.48 66.40 20Securities Premium debited in HDFC for Zero Coupon Bonds (3.57) (4.38)Adjusted Consolidated Profit After Tax 75.91 62.02 22
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BALANCE SHEET (Standalone)
*Net of loans sold during the preceding 12 months amounting to Rs. 69.44 bn. If these loans were included, the growth in loans would have been higher at 20%.Loans of Rs. 53.17 bn sold during the quarter ended March 31, 2014.
Financials
Mar-14 Mar-13 Growth(Rs. in billion) (Rs. in billion) (%)
Sources of FundsShareholders' Funds 279.55 248.30Borrowings 1,842.98 1,588.28 16Current Liabilities & Provisions 135.04 117.03
2,257.57 1,953.61 16
Application of FundsLoans* 1,971.00 1,700.46 16Investments 139.13 136.13Current/ Fixed Assets 147.44 117.02
2,257.57 1,953.61 16
47
PROFIT AND LOSS ACCOUNT – FY14 (Standalone)
Financials
FY14 FY13 Growth(Rs . in bi l l ion) (Rs . in bi l l ion) (%)
Operating Income 233.38 203.16 15Interest Expenses 160.29 138.91 15Net Interest Income 73.09 64.25 14Less: Non Interest Expenses 6.28 5.39Less: Provision for Contingencies 1.00 1.45Add: Other Income 0.54 0.35Profit Before Tax, Dividend & Sale of Investments 66.35 57.76 15Dividend 5.56 4.81Profit on Sale of Investments 2.49 3.16Profit Before Tax 74.40 65.73 13Provision for Tax 20.00 17.25Profit After Tax 54.40 48.48 12Effective tax rate (%) 26.9% 26.2%
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CONSOLIDATED EARNINGS As per Indian GAAP
(As at March 31, 2014)
HDFC Consolidated
Return on Equity 20.5% 22.1%
Return on Average Assets 2.7% 2.9%
Earnings Per Share (Rs.) 35 51
Profit After Tax (Rs. in billion) 54.40 79.48
Total Assets (Rs. in billion) 2,257.57 2,972.35
Financials
49
AWARDS & ACCOLADES HDFC selected as the Best Home Loan Provider by CNBC Awaaz – CNBC Awaaz Real Estate Awards 2013
HDFC adjudged the ‘Best Home Loan Provider’ for third consecutive year – Outlook Money Awards, 2013
Awarded the Qimpro-Best Prax Benchmark 2013 in Leadership Governance
HDFC Board recognised as one of the “Five Best Boards" in a study conducted by Economic Times andHay Group on India's Best Boards - 2012
Top Indian Company in the ‘Financial Institutions/Non-Banking Financial Companies/Financial Services’category at the Dun & Bradstreet Corporate Awards 2012. The Corporation has won this award six times.
Leading Housing Finance Company Award - CNBC TV18, 2012
HDFC is the only Indian company to be included in the fifth annual list of the ‘ 2011 World’s Most EthicalCompanies’ by Ethisphere Institute, USA
HDFC voted ‘Best Investor Relations’ in India – Finance Asia’s 2011 Annual Poll
HDFC ranked amongst India’s best companies to work for – Great Place to Work Institute®, 2012
Awarded the ‘Best Foreign Enterprise with a Developmental Role in Housing Finance in Africa’ – AfricanReal Estate & Housing Finance Academy
HDFC one of India’s ‘Best Managed Companies’ for two consecutive years – Finance Asia’s 2010 and 2011Annual Poll
‘India Shining Star CSR Award’ – for Outstanding CSR in the Banking and Financial Sector – FY11
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Thank You
May 15, 2014