ASSIGNMENT

OF
Financial Accounting
ASSIGNMENT (AS01)

PROGRAM : MBA 1st Year

SUBJECT CODE : MB4107

SUBMITTED TO: PUSHPENDER SINGH

SUBMITTED BY: HITESH SINGH NAINWAL

 HDFC Bank
HDFC Bank Limited is an Indian banking and financial services company

headquartered in Mumbai. It is India's largest private sector bank by assets and

world's 10th largest bank by market capitalisation as of April 2021. It is the
third largest company by market capitalisation of $122.50 billion on the Indian
stock exchanges. It is also the fifteenth largest employer in India with nearly
150,000 employees. HDFC Bank was incorporated in 1994 as a subsidiary of
the Housing Development Finance Corporation, with its registered office in
Mumbai, Maharashtra, India. Its first corporate office and a full-service branch
at Sandoz House, Worli were inaugurated by the then Union Finance Minister,
Manmohan Singh.
As of 30 June 2022, the bank's distribution network was at 6,378 branches
across 3,203 cities. It has installed 430,000 POS terminals and issued
23,570,000 debit cards and 12 million credit cards in FY 2017.[15] It has a base
of 1,52,511 permanent employees as of 30 June 2022

The Board of Directors List

The composition of the Board of Directors of the Bank is governed by the
provisions of the Companies Act, 2013, the Banking Regulation Act, 1949,
applicable regulations, guidelines, circulars issued by the Reserve Bank of
India, and the listing requirements of the Indian Stock Exchanges where the
securities issued by the Bank are listed. The composition of the Board is as
follows:

Sr. No. Name of Director Designation

1 Mr. Atanu Chakraborty Part-Time Chairman and Independent Director
2 Mr. Malay Patel Independent Director
3 Mr. Umesh Chandra Sarangi Independent Director
4 Mrs. Renu Karnad Non-Executive Director
5 Mr. Sanjiv Sachar Independent Director
6 Mr. Sandeep Parekh Independent Director
7 Mr. MD Ranganath Independent Director
8 Dr. (Mrs). Sunita Maheshwari Independent Director
9 Mrs. Lily Vadera Independent Director
10 Mr. Sashidhar Jagdishan Managing Director & Chief Executive Officer
11 Mr. Kaizad Bharucha Executive Director
Atanu Chakraborty
Atanu Chakraborty is at present the Chairperson of HDFC Bank, India's largest
lender by market capitalization, appointed by the Reserve Bank of India in April
2021. He is a 1985 batch officer of the Indian Administrative Service, of the
Gujarat cadre, and has served as Economic Affairs Secretary of India till his
retirement in April 2020. In the Ministry of Finance of Government of India, he
also served as the Secretary of Expenditure as well as the Secretary of
Department of Investment and Public Asset Management (DIPAM). He was
also appointed on the Central Board of Directors of the Reserve Bank of India.
He has also held various posts under the Government of India and State
Government of Gujarat.
He holds a degree in Electronics and Communication engineering. He has done
his post-graduate diploma in business finance and an MBA from the United
Kingdom. Atanu Chakraborty has served various positions for both the
Government of India and the Government of Gujarat. He has held positions in
the Ministries of Finance, Ports, industries, labour, petroleum and natural gas,
and Home. He also served on Boards of state-owned enterprises.
In the Government of Gujarat served as the Additional Chief Secretary of
Industries and Principal Secretary of the Finance Department. He served as
Chief Executive of GSPC Group of companies, GSFC Limited, GSFS Limited,
CEO of Gujarat Maritime Board. He served as Chief Executive Officer of
Gujarat Infrastructure Development Board. He served as Chairperson of
National Infrastructure and Investment Fund (NIIF) He also served as Ministry
of Finance, Government of India and held the posts of Secretary, DIPAM, and
Secretary, Department of Economic Affairs.
Malay Patel
Malay Patel serves as Non-Executive Independent Director of the Company. He
is a Major in Engineering (Mechanical) from Rutgers University, Livingston,
NJ, USA, and an Associate of Arts in Business Administration (A.A.B.A.) from
Bergen County College, Fairlawn, New Jersey, USA. He is a Director on the
Board of Eewa Engineering Company Private Limited, a company in the
plastics / packaging industry with exports to more than 50 countries. He has
been involved in varied roles such as export / import, procurement, sales and
marketing, etc in Eewa Engineering Company Private Limited. Mr. Patel has
special knowledge and practical experience in matters relating to small scale
industries in terms of Section 10-A (2)(a) of the Banking Regulation Act, 1949.
Umesh Chandra Sarangi
Mr. Umesh Chandra Sarangi has been appointed as an Independent Director on
the Board of the Bank with effect from 21st July, 2016 for a period of five (5)
years. Mr. Sarangi holds a Masters degree in Science (Botany) from Utkal
University (gold medallist). Mr. Sarangi has 35 years of experience in Indian
Administrative Service and brought in significant reforms in modernizing of
agriculture, focus on agro processing and export. As the erstwhile Chairman of
National Bank for Agricultural and Rural Development (NABARD) from
December 2007 to December 2010, Mr. Sarangi focused on rural infrastructure,
accelerated initiatives such as microfinance, financial inclusion, watershed
development and tribal development. Mr. Sarangi has been appointed as a
Director having specialized knowledge and experience in agriculture and rural
economy pursuant to Section 10-A (2)(a) of the Banking Regulation Act, 1949.
Mr. Sarangi is a member on the following Committees of the Board of the
Bank: Audit Committee Corporate Social Responsibility Committee

Renu Sud Karnad

Renu Sud Karnad is an Indian businesswoman and the managing director of
India's largest private sector bank Housing Development Finance Corp. Ltd.
Additionally she also holds seven other positions for companies like HDFC
Property Ventures Ltd., HDFC Education & Development Services Pvt Ltd.
(both are subsidiaries of HDFC Ltd.) and Non-Executive Chairman at
GlaxoSmithKline Pharmaceuticals Ltd. She is also the Vice Chairman-
Governing Council at Indraprastha Cancer Society and Research Centre and
part of the board of 17 other companies. Karnad has been the MD of HDFC Ltd
since 2010. After graduating with a law degree from the University of Mumbai
and a degree in economics from the University of Delhi, she started her career
with HDFC at the age of 26 in the year 1978. She took a short break later to
study International Affairs at Princeton University in 1984. Karnad was the
pursuant of the then new hub and spoke model for banking services introducing
easy access by delivering loans at the point of contact. Her efforts in the early
years led her to become the head of lending business at HDFC. In the year
2000, she was appointed as an executive director in the company. She was
designated as the joint managing director in 2007 and promoted to the post of
Managing director in 2010. Since then, she has been at the helm of affairs. In
2022 she was reappointed as director by the HDFC board. Karnad has been
largely credited with the steady growth of HDFC bank over the span of 3
decades.
Sanjiv Sachar
Sanjiv Sachar serves as Additional Non-Executive Independent Director of the
Company. He is a fellow member of the Institute of Chartered Accountants of
India and in November 2016 retired as the Senior Partner of Egon Zehnder, the
world’s largest privately held executive search firm. Mr. Sachar set up the Egon
Zehnder practice in India in 1995 and played a key role in establishing the firm
as a market leader in the executive search space across various country
segments. Over the course of his two decades at Egon Zehnder, Mr. Sachar has
mentored senior executives across industry sectors that today are either Board
members, CEOs or CFOs of large corporates in India and overseas. Mr. Sachar
has also been the co-founder of the chartered accountancy and management
consulting firm, Sachar Vasudeva & Associates and co-founded executive
search firm, Direct Impact.
Sandeep Parekh
Sandeep Parekh, born 1971, is an Indian financial sector lawyer who founded
Finsec Law Advisors, Mumbai. He attended St. Columba's School in New
Delhi, India. He then attended Hindu College at Delhi University, which gave
him a distinguished alumni award in 2008. He then obtained a degree in law
from Delhi University Law Centre II, which also recognised him as a
distinguished alumni in 2007. He was profiled in 2006 by CNBC in its program
'Young Turks' by Shereen Bhan as a young leader. He worked as an executive
director at the Securities and Exchange Board of India, (SEBI), India’s
securities regulator, where he headed the Enforcementdepartment and was the
General Counsel. He has been the youngest person to hold the post at the
regulator. Previously, he had worked in law firm Wilmer, Cutler & Pickering, in
Washington, D.C. He holds an LL.M. (Securities & Finance Regulation) degree
from Georgetown University. He was a faculty member of the Indian Institute
of Management Ahmedabad, India's premier management school, and is
currently a visiting faculty member there (since 2002)
Mr. MD Ranganath
Mavinakere D. Ranganath serves as Additional Non-Executive Independent
Director of the Company. He holds holds Master’s degree in technology from
IIT, Madras and a Bachelor’s degree in Engineering from the University of
Mysore. He holds a Post Graduate Diploma in Management from Indian
Institute of Management (IIM), Ahmedabad and is a member of CPA, Australia.
Mr. Ranganath has over 27 years of experience in the Global IT services and
financial services industry. He was Chief Financial Officer of Infosys Limited, a
globally listed IT services company, till November, 2018. During his tenure of
18 years at Infosys, he was an integral part of the growth and transformation of
Infosys into a globally respected IT services company and effectively played
leadership roles in a wide spectrum of areas Strategy, Finance, Merger &
Acquisition (M&A), Consulting, Risk Management, and Corporate planning-
culminating in the role of Chief Financial Officer and worked closely with the
Board of Infosys and its committees in formulating and executing its strategic
priorities. Prior to Infosys, he worked at ICICI Limited for 8 years and executed
responsibilities in credit, treasury, equity portfolio management and corporate
planning. In the years 2017 and 2018, Mr. Ranganath was the recipient of the
Best CFO Asia award in the technology sector, by Institutional Investor
publication, based on poll of buy-side and sell-side investor community.
Dr. (Mrs). Sunita Maheshwari
The Board of Directors of HDFC Bank Limited have approved the appointment
of Dr. (Ms.) Sunita Maheshwari as an Additional Independent Director of the
Bank for a period of five (5) years effective from March 30, 2021, subject to the
approval of the shareholders. In addition to being a clinician, Dr. (Ms.)
Maheshwari is a medical entrepreneur and cofounder at (a) Teleradiology
Solutions, (b) Telrad Tech which builds AI enabled tele health software and (c)
RXDX healthcare a chain of multispecialty neighbourhood clinics in
Bangalore. She has also incubated other startup companies in the telehealth
space such as Healtheminds a tele counselling platform. She is active in the
social arena in India where she runs 2 trust funds. `People4people' has put up
over 450 playgrounds in government schools and Telrad Foundation provides
teleradiology and telemedicine services to poor areas in Asia that do not have
access to high quality medical care. Dr. (Ms.) Maheshwari has also been
appointed as a director having experience in small scale industries, in terms of
Section 10 A (2)(a) of the Banking Regulation Act, 1949.
Mrs. Lily Vadera
HDFC Bank has received board of directors approval for the appointment of
Lily Vadera as an Additional Independent Director of the Bank for five years
subject to the approval of the shareholders.
The appointment has come into effect from November 26, 2021.
Lily Vadera aged 61 years, is an M.A in International Relations. With over 33
years of experience in Central banking, she retired as Executive Director from
the Reserve Bank of India (RBI) in October 2020. As the Executive Director of
the RBI, she was in charge of the Department of Regulation (DoR) where she
dealt with the regulatory framework for various entities in the financial sector,
covering all categories of banks and non-banking finance companies. She was
instrumental in putting in place a framework for a regulatory Sandbox to
provide an enabling environment for fintech players to foster innovation in
financial services and played a significant role in the amalgamation of banks in
stress.
She represented the Reserve Bank of India and played an important role as a
member of the Insolvency Law Committee set up by the Ministry of Corporate
Affairs (MCA). Further, she is not debarred from holding the office of the
director under any SEBI order or any such authority. She is not related to any
director of the Bank.

Mr. Sashidhar Jagdishan

Sashidhar Jagdishan is the new Chief Executive Officer (CEO) and managing
director of the HDFC Bank. The Reserve Bank of India on 4 August approved
the appointment of Sashidhar Jagdishan as managing director and chief
executive officer of HDFC Bank for three years. Jagdishan replaced India’s
longest-serving CEO Aditya Puri. Sashidhar Jagdishan has been with the bank
since 1996 and is currently is serving as the ‘Change Agent’ of the largest
private sector lender and head of finance. This particular appointment is a
termination to one of the most keenly watched successions in the bank industry.
Jagdishan holds a Bachelor of Science degree in physics from the University of
Mumbai and a masters in economics of money, banking and finance from the
University of Sheffield, UK. He is also a Chartered Accountant from the
Institute of Chartered Accountants of India. Sashidhar Jagdishan is a graduate in
Science with a specialisation in subject Physics. He also uploads a Masters
Degree in Economics of Money, Banking & Finance from the University of
Sheffield, UK. He has also worked as a Chartered Accountant.
In 1996, Sashidhar Jagdishan amalgamated with the private lender, HDFC. He
has been working in the bank from past 24 years. Manager in the Finance
Ruction was the first position which Jagdishan served as. In 1999, he became
the Business head and in the year 2008, he was appointed as the Chief Financial
Officer.
Mr. Kaizad Bharucha
Mr. Kaizad Bharucha holds a Bachelor of Commerce degree from University of
Mumbai. He has been associated with the Bank since 1995. In his current
position as Executive Director, he is responsible for Wholesale Banking
covering areas of Corporate Banking, Emerging Corporate Group, Business
Banking, Capital Markets & Commodities Business, Agri Lending, Investment
Banking, Financial Institutions & Government Business and Department for
Special Operations. In his previous position as Group Head - Credit & Market
Risk, he was responsible for the Risk Management activities in the Bank viz.,
Credit Risk, Market Risk, Debt Management, Risk Intelligence and Control
functions. Mr. Bharucha has been a career banker with over 28 years of banking
experience. Prior to joining the Bank, he worked in SBI Commercial and
International Bank in various areas including Trade Finance and Corporate
Banking. He has represented HDFC Bank as a member of the working group
constituted by the Reserve Bank of India to examine the role of Credit
Information Bureau and on the sub-committee with regard to adoption of the
Basel II guidelines. Mr. Bharucha is a member on the following Committees of
the Board of the Bank: Credit Approval Committee

Vision, Mission and Values

HDFC Bank’s mission is to be a world class Indian bank. We have a two-fold
objective: first, to be the preferred provider of banking services for target retail
and wholesale customer segments. The second objective is to achieve healthy
growth in profitability, consistent with the bank’s risk appetite.
The bank is committed to maintaining the highest level of ethical standards,
professional integrity, corporate governance and regulatory compliance. HDFC
Bank’s business philosophy is based on five core values: Operational
Excellence, Customer Focus, Product Leadership, People and Sustainability.

Vision Statement

"To be the premier financial partner in ensuring sustainable housing and living standards. "

Mission

Committed to provide financial solutions for sustainable living and assist entrepreneurs in value addition
Balance Sheet
BALANCE SHEET OF MAR 22 MAR 21 MAR 20  
HDFC BANK (in Rs. Cr.)

  12 mths 12 mths 12 mths  

EQUITIES AND  
LIABILITIES

SHAREHOLDER'S  
FUNDS

Equity Share Capital 554.55 551.28 548.33  

TOTAL SHARE CAPITAL 554.55 551.28 548.33  

Revaluation Reserve 0.00 0.00 0.00  

Reserves and Surplus 554.55 551.28 548.33  

TOTAL RESERVES AND 246,771.62 209,258.91 175,810.38  

SURPLUS

TOTAL SHAREHOLDERS 246,771.62 209,258.91 175,810.38  

FUNDS

Minority Interest 720.41 632.76 576.64  

Deposits 1,558,003.03 1,333,720.88 1,146,207.13  

Borrowings 226,966.50 177,696.75 186,834.32  

Other Liabilities and 89,918.19 77,646.07 70,853.63  

Provisions

TOTAL CAPITAL AND 2,122,934.30 1,799,506.64 1,580,830.44  

LIABILITIES

ASSETS  

Cash and Balances with 130,030.71 97,370.36 72,211.00  

Reserve Bank of India

Balances with Banks 25,355.02 23,902.17 15,729.11  

Money at Call and Short
Notice

Investments 449,263.86 438,823.11 389,304.95  

Advances 1,420,942.28 1,185,283.52 1,043,670.88  

Fixed Assets 6,432.07 5,099.56 4,626.86  

Other Assets 90,910.36 49,027.92 55,287.64  

TOTAL ASSETS 2,122,934.30 1,799,506.64 1,580,830.44  

BALANCE SHEET ANALYSIS:-
The hallmark of the Bank's financial performance has been consistent growth across all key metrics,
which has helped consolidate its leadership position. Its Balance Sheet continues to be healthy and
strong which is evident by a growth of 18.4% in the current year. The endeavour to reach all
customers across India has contributed to an increase in branches to 6,342 as at the year end. This
together with our ability to understand and fulfil customers' financial needs along with management of
customer relationships has led to an overall increase of 16.8% in Deposits and 20.8% in Advances.
The continuous monitoring of costs and building of operational efficiencies has resulted in only a
marginal increase of 0.60% in the Cost to Income Ratio to 36.9%. The asset mix of the Bank has
shifted to high rated but low yielding segments. Consequently, the Net Interest Margin has reduced
marginally to 4.0%. It is pertinent to note that the change in asset mix has a positive impact on the net
credit margin which has increased to 3.3% in the current year. The impact of our effective risk
management system along with robust credit policy and underwriting skills can be seen in the quality
of our assets and low GNPA ratio of 1.17%. Even with a low GNPA, as a responsible banker, specific
provision coverage has been increased to 72.7% and the coverage of total provisions comprised of
specific, floating, contingent and general provisions, has been increased to 182% as at the year end.
We continue to deliver double-digit growth both in earnings and return on equity. The Profit After
Tax has grown by 18.8% and return on equity has increased to 16.9%

TOTAL BALANCE SHEET SIZE Rs20,68,535 Cr PROFIT AFTER TAX Rs36,961.3Cr

As on March 31, 2022 FY22

INCOME STATEMENT

Financial Year FY 2020 FY 2021 FY 2022 TTM

Total Revenue 1,47,068.26 1,55,885.28 1,67,695.40 1,72,964.09

EBITDA 39,471.62 44,181.16 52,554.11 53,054.78

PBIT 38,194.85 42,796.15 50,873.38 53,054.78

PBT 38,194.85 42,796.15 50,873.38 53,054.78

 Financial Year FY 2020 FY 2021 FY 2022 TTM

Net Income 27,253.95 31,833.21 38,052.75 39,709.77

EPS 49.87 57.90 68.82 71.61

DPS 2.50 6.50 15.50 15.50

Payout ratio 0.05 0.11 0.23 0.22

INCOME STATEMENT ANALYSIS :-

Income Statement
Industry refers to the sub-sector this company belongs to.
 Higher than Industry Revenue Growth
A higher-than-industry revenue growth represents increased potential for the company to increase
their market share
Over the last 5 years, revenue has grown at a yearly rate of 14.24%, vs industry avg of 10.31%
 Increasing Market Share
Market share is the percentage of an industry's total sales going to a particular company. It gives a
general idea of the size of a company v/s its competitors
Over the last 5 years, market share increased from 21.62% to 25.93%
 Higher than Industry Net Income
Net income is equal to net earnings (profit) less expenses. This number is an important measure of
how profitable the company is
Over the last 5 years, net income has grown at a yearly rate of 20.02%, vs industry avg of
17.57%

COVID-19
In light of the COVID-19 outbreak and information available up to the date of
approval of this special purpose financial information, HDFC Life has assessed
the impact on assets including valuation and impairment of investments,
liabilities including policy liability and solvency position.
Based on the evaluation, HDFC Life has made
(a) adequate impairment provisions on the investments to an extent necessary.
(b) additional COVID reserve of ` 165 Crore as at the Balance Sheet date, for
potential adverse mortality. This reserve is over and above the policy level
liabilities calculated based on the applicable IRDAI regulations.
HDFC Life has also assessed its solvency position as at the Balance sheet date
and is at 176%, which is above the prescribed regulatory limit of 150%. Further,
based on HDFC Life’s current assessment of the business operations over next
one year, it expects the solvency ratio to continue to remain above the minimum
limit prescribed by the Insurance regulator. The impact of the global health
pandemic may be different from that estimated as at the date of approval of this
special purpose financial information. HDFC Life will continue to closely
monitor any material changes to future economic conditions.