HDFC Bank Limited
Content
HDFC Bank Limited is a major Indian financial services company based in India, incorporated in August 1994, after the Reserve Bank of India allowed establishing private sector banks. The Bank was promoted by the Housing Development Finance Corporation, a premier housing finance company (set up in 1977) of India. HDFC Bank has 1,986 branches and over 5,471 ATMs, in 996 cities in India, and all branches of the bank are linked on an online real-time basis. As of 30 September 2008 the bank had total assets of Rs.1006.82 billion. For the fiscal year 2010-11, the bank has reported net profit of 3,926.30
crore (US$875.56 million), up 33.1% from the previous fiscal. Total annual earnings of the bank increased by 20.37% reaching at 24,263.4 crore (US$5.41 billion) in 2010-11.
It is one of the Big Four banks of India, along with State Bank of India, ICICI Bank and Punjab National Bank—its main competitors.
India's largest housing Finance Company. It was among the first companies to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector. The Bank started operations as a scheduled commercial bank in January 1995 under the RBI's liberalisation policies.
Profit & Loss account of HDFC Bank
----in Rs. Cr. ---Mar '11 12 mths
Income Interest Earned Other Income Total Income Expenditure Interest expended Employee Cost Selling and Admin Expenses Depreciation Miscellaneous Expenses Preoperative Exp Capitalised Operating Expenses Provisions & Contingencies Total Expenses
19,928.21 4,433.51 24,361.72
9,385.08 2,836.04 2,510.82 497.41 5,205.97 0.00 8,045.36 3,004.88 20,435.32 Mar '11 12 mths
Net Profit for the Year Extraordionary Items Profit brought forward Total Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised) Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs) Appropriations Transfer to Statutory Reserves Transfer to Other Reserves Proposed Dividend/Transfer to Govt Balance c/f to Balance Sheet Total
3,926.40 -2.65 4,532.79 8,456.54 0.00 767.62 124.53
84.40 165.00 545.53
997.52 392.64 892.15 6,17.24 8,456.55
Balance Sheet of HDFC Bank
---- in Rs. Cr. ---Mar '11 12 mths
Capital and Liabilities: Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Net Worth Deposits Borrowings Total Debt Other Liabilities & Provisions Total Liabilities 465.23 465.23 0.00 0.00 24,914.04 25,379.27 208,586.41 14,394.06 222,980.47 28,992.86 277,352.60 Mar '11 12 mths Assets Cash & Balances with RBI Balance with Banks, Money at Call Advances Investments Gross Block Accumulated Depreciation Net Block Capital Work In Progress Other Assets Total Assets Contingent Liabilities Bills for collection Book Value (Rs) 25,100.82 4,568.02 159,982.67 70,929.37 5,244.21 3,073.56 2,170.65 0.00 14,601.08 277,352.61 559,681.87 28,869.10 545.53
1 .Selling and Admin Expenses :Reported on the income statement, it is the sum of all direct and indirect selling expenses and all general and administrative expenses of a company. Direct selling expenses are expenses that can be directly linked to the sale of a specific unit such as credit, warranty and advertising expenses. Indirect selling expenses are expenses which cannot be directly linked to the sale of a specific unit, but which are proportionally allocated to all units sold during a certain period, such as telephone, interest and postal charges. General and administrative expenses include salaries of non-sales personnel, rent, heat and lights. 2. Miscellaneous expense: Miscellaneous expense is often a general ledger account in which very small amounts are recorded. Generally it is best not to use this account. If another account does not seem appropriate, consider opening a new account to capture the expenses. For example, a $10 donation would be better recorded in an account Donations rather than in Miscellaneous Expense. Checking account fees would be better recorded in Bank Service Charges rather than Miscellaneous Expense.
3. Operating Expenses : A category of expenditure that a business incurs as a result of performing its normal business operations. One of the typical responsibilities that management must contend with is determining how low operating expenses can be reduced without significantly affecting the firm's ability to compete with its competitors. 4.Transfer to Statutory Reserves : State regulated reserve requirements. Insurance companies must hold a portion of their assets as either cash or marketable investments. Statutory reserves are the amount of liquid assets that firms must hold in order to remain solvent and attain partial protection against a substantial investment loss. Holding reserves reduces the risk of insurance.
5. Accumulated Depreciation : The accumulative depreciation of an asset up to a single point in its life. Regardless of the method used to calculate it, the depreciation of an asset during a single period is added to the previous period’s accumulated depreciation to get the current accumulated depreciation.
6. Book Value : The value at which an asset is carried on a balance sheet. To calculate, take the cost of an asset minus the accumulated depreciation.2. The net asset value of a company, calculated by total assets minus intangible assets (patents, goodwill) and liabilities. The initial outlay for an investment. This number may be net or gross of expenses such as trading costs, sales taxes, service charges and so on. 7 . Share Application Money : Money received by a company during an IPO. Payments received for a subscription of stock is normally received over the IPO life.
8. Contingent Liability: Contingent liabilities are liabilities that may or may not be incurred by an entity depending on the outcome of a future event such as a court case. These liabilities are recorded in a company'saccounts and shown in the balance sheet when both probable and reasonably estimable.
9. Revaluatin Reserves: Revaluation reserve arises when a company revalues its assets and the revalued assets are of higher value compared to their earlier valuation. The difference between the revalued amount and the historical cost is the revaluation reserve.
10 . Transfer to statury reserves: the banking regulation act requires transfer to statutory reserve, of 20% of profits before declaring dividens.
11. Share application Money : Share application money is the amount received by a company from applicants who wish to purchase its shares. It is the money received in respect to an initial public offering of shares. Share application money may be reported on a balance sheet as current liability.
12. Preoperative Capitialised: Pre operative expenses are of capital nature are to be capatalised with cost of fixed assets in relaions to which they have incurred. whereas pre operative expenses are to be charged aganist profits in which year buisness has commenced.
crore (US$875.56 million), up 33.1% from the previous fiscal. Total annual earnings of the bank increased by 20.37% reaching at 24,263.4 crore (US$5.41 billion) in 2010-11.
It is one of the Big Four banks of India, along with State Bank of India, ICICI Bank and Punjab National Bank—its main competitors.
India's largest housing Finance Company. It was among the first companies to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector. The Bank started operations as a scheduled commercial bank in January 1995 under the RBI's liberalisation policies.
Profit & Loss account of HDFC Bank
----in Rs. Cr. ---Mar '11 12 mths
Income Interest Earned Other Income Total Income Expenditure Interest expended Employee Cost Selling and Admin Expenses Depreciation Miscellaneous Expenses Preoperative Exp Capitalised Operating Expenses Provisions & Contingencies Total Expenses
19,928.21 4,433.51 24,361.72
9,385.08 2,836.04 2,510.82 497.41 5,205.97 0.00 8,045.36 3,004.88 20,435.32 Mar '11 12 mths
Net Profit for the Year Extraordionary Items Profit brought forward Total Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised) Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs) Appropriations Transfer to Statutory Reserves Transfer to Other Reserves Proposed Dividend/Transfer to Govt Balance c/f to Balance Sheet Total
3,926.40 -2.65 4,532.79 8,456.54 0.00 767.62 124.53
84.40 165.00 545.53
997.52 392.64 892.15 6,17.24 8,456.55
Balance Sheet of HDFC Bank
---- in Rs. Cr. ---Mar '11 12 mths
Capital and Liabilities: Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Net Worth Deposits Borrowings Total Debt Other Liabilities & Provisions Total Liabilities 465.23 465.23 0.00 0.00 24,914.04 25,379.27 208,586.41 14,394.06 222,980.47 28,992.86 277,352.60 Mar '11 12 mths Assets Cash & Balances with RBI Balance with Banks, Money at Call Advances Investments Gross Block Accumulated Depreciation Net Block Capital Work In Progress Other Assets Total Assets Contingent Liabilities Bills for collection Book Value (Rs) 25,100.82 4,568.02 159,982.67 70,929.37 5,244.21 3,073.56 2,170.65 0.00 14,601.08 277,352.61 559,681.87 28,869.10 545.53
1 .Selling and Admin Expenses :Reported on the income statement, it is the sum of all direct and indirect selling expenses and all general and administrative expenses of a company. Direct selling expenses are expenses that can be directly linked to the sale of a specific unit such as credit, warranty and advertising expenses. Indirect selling expenses are expenses which cannot be directly linked to the sale of a specific unit, but which are proportionally allocated to all units sold during a certain period, such as telephone, interest and postal charges. General and administrative expenses include salaries of non-sales personnel, rent, heat and lights. 2. Miscellaneous expense: Miscellaneous expense is often a general ledger account in which very small amounts are recorded. Generally it is best not to use this account. If another account does not seem appropriate, consider opening a new account to capture the expenses. For example, a $10 donation would be better recorded in an account Donations rather than in Miscellaneous Expense. Checking account fees would be better recorded in Bank Service Charges rather than Miscellaneous Expense.
3. Operating Expenses : A category of expenditure that a business incurs as a result of performing its normal business operations. One of the typical responsibilities that management must contend with is determining how low operating expenses can be reduced without significantly affecting the firm's ability to compete with its competitors. 4.Transfer to Statutory Reserves : State regulated reserve requirements. Insurance companies must hold a portion of their assets as either cash or marketable investments. Statutory reserves are the amount of liquid assets that firms must hold in order to remain solvent and attain partial protection against a substantial investment loss. Holding reserves reduces the risk of insurance.
5. Accumulated Depreciation : The accumulative depreciation of an asset up to a single point in its life. Regardless of the method used to calculate it, the depreciation of an asset during a single period is added to the previous period’s accumulated depreciation to get the current accumulated depreciation.
6. Book Value : The value at which an asset is carried on a balance sheet. To calculate, take the cost of an asset minus the accumulated depreciation.2. The net asset value of a company, calculated by total assets minus intangible assets (patents, goodwill) and liabilities. The initial outlay for an investment. This number may be net or gross of expenses such as trading costs, sales taxes, service charges and so on. 7 . Share Application Money : Money received by a company during an IPO. Payments received for a subscription of stock is normally received over the IPO life.
8. Contingent Liability: Contingent liabilities are liabilities that may or may not be incurred by an entity depending on the outcome of a future event such as a court case. These liabilities are recorded in a company'saccounts and shown in the balance sheet when both probable and reasonably estimable.
9. Revaluatin Reserves: Revaluation reserve arises when a company revalues its assets and the revalued assets are of higher value compared to their earlier valuation. The difference between the revalued amount and the historical cost is the revaluation reserve.
10 . Transfer to statury reserves: the banking regulation act requires transfer to statutory reserve, of 20% of profits before declaring dividens.
11. Share application Money : Share application money is the amount received by a company from applicants who wish to purchase its shares. It is the money received in respect to an initial public offering of shares. Share application money may be reported on a balance sheet as current liability.
12. Preoperative Capitialised: Pre operative expenses are of capital nature are to be capatalised with cost of fixed assets in relaions to which they have incurred. whereas pre operative expenses are to be charged aganist profits in which year buisness has commenced.
