FIRST ANNUAL REPORT 1994-95

HDFC BANK LTD.

T h e A c t i o n B a n k

1
 H DFC Bank is now fully operational, with full service branches in Bombay
at Sandoz House, Worli, and Ramon House, Churchgate. This will soon be
followed by another branch in Bombay at Khar, and a full network spanning all
the metros (Delhi, Calcutta, Madr and Bangalore) by December, and subsequently
in Ahmedabad and Pune as well.

A ll the branches will be fully computerised and supported by state of

the art technology. Most branches will also have Automated Teller Machines
(ATMs) for quick, routine transactions. The entire branch network will be
manned by experienced bankers drawn from leading International and Indian
banks, assuring customers of the quality service HDFC is renowned for.

T oday, HDFC Bank is fully equipped to offer you the complete range of
financial services, ranging from savings and fixed deposit accounts, to Treasury,
Corporate Banking and Merchant Banking services. Some of the key benefits for
personal customers would be :

High Interest fixed Deposits: We offer you 12% p.a. on fixed deposits of
any period between 46 days and 3 years. That’s a yield of 14.19% p.a. on a 3 year
deposit!

F ree Stockinvest: You no longer need to lose interest on your funds when
applying for a public issue. HDFC Bank offers you free Stockinvest against a fixed
deposit which earns you 12% p.a. With Stockinvest, your money earns interest
for you right up to the day you get an allotment

Safte Deposit Lockers: All key branches will also have fixed deposit lockers
for the convience of personal customers.

We look forward to having you as our valued customer.

HDFC BANK LTD.
T h e A c t i o n B a n k

For more information, call Nandita : (022)

2
4951616 or Aparna (022) 2045605
or any of our Customer Service Officers
 HDFC BANK LTD.

BOARD OF DIRECTORS
1st ANNUAL GENERAL MEETING
Mr. Shobha Singh Thakur, Chairman
Date : 20th May, 1995
Mr. Deepak M Satwalekar
Day : Saturday
Mr. Phillip J S Wise
Time : 11.00 a.m.
Mr. Jagdish S Baijal
Place : Birla Matushri Sabhagar,
19, Marine Lines, Mr. Nasser M Munjee
Bombay 400 020. Mr. Keki M Mistry
Mr. Aditya Puri, Managing Director
Mr. Christain J. Read
(Alternate to Mr. P. J. S. Wise)
Mr. Phillip W Forest
(Alternate to Mr. P. W. Deer)

COMPANY SECRETARY &

VICE PREISDENT
Mr. S. Ramanathan

AUDITORS
Bharat S. Raut & Co.
(A member firm of KPMG)

REGISTRARS & SHARE TRANSFER AGENTS

MCS Limited
Sri Venkatesh Bhawan
CONTENTS PAGE NO. Plot No.27, Road No.11,
MIDC Area, Andheri (East),
Notice........................................ 2 Bombay - 400 093.
Directors’s Report...................... 4
Auditors’ Report......................... 7
Balance Sheet........................... 8 REGISTERED OFFICE
Profit & Loss Account................ 9 Sandoz House,
Schedules to the Accounts ....... 10 Dr. Annie Besant Road,
Notes on Accounts..................... 14 Worli,
Mumbai 400 018.
3
HDFC BANK LTD.
NOTICE NOTICE IS HEREBY GIVEN THAT THE 6. As an Ordinary Resolution :
FIRST ANNUAL GENERAL MEETING OF “RESOLVED THAT Mr. P. J. S. Wise be
THE MEMBERS OF HDFC BANK LIMITED and is hereby appointed as a Director
WILL BE HELD AT BIRLA MATUSHRI of the Bank liable to retire by rotation.”
SABHAGAR, 19, MARINES LINES, BOMBAY
7. As an Ordinary Resolution :
- 400 020 ON SATURDAY, 20TH MAY,
1995 AT 11.00 A.M. TO TRANSACT THE “RESOLVED THAT Mr. N. M. Munjee be
FOLLOWING BUSINESS : and is hereby appointed as a Director
of the Bank liable to retire by rotation.”
ORDINARY BUSINESS
8. As an Ordinary Resolution :
1. To consider and adopt the audited Profit
“RESOLVED THAT Mr. L. M. Mistry be
and Loss Account for the period August
and is hereby appointed as a Director
30, 1994 to March 31, 1995, the Balance of the Bank liable to retire by rotation.”
Sheet as at March 31, 1995 and Reports
of the Directors and Auditors thereon. By Order of the Board
S. S. THAKUR
2. To appoint a Director in place of Mr. D. Chairman
M. Satwalekar who retires by rotation
Date : April 20, 1995
and being eligible offers himself for
reappointment as a non- retiring Director. Registered Office :
Sandoz House,
3. To consider and if thought fit, to pass with Dr. Annie Besant Road,
or without modifications the following Worli, Bombay 400 018.
resolution as an Ordinary resolution.
NOTES
“RESOLVED THAT MESSRS> BHARAT 1. A MEMBER ENTITLED TO ATTEND
S. RAUT & CO. Chartered Accountants, AND VOTE IS ENTITLED TO APPOINT
be and are hereby re-appointed Auditors A PROXY TO ATTEND AND VOTE
of the Bank to hold office from the INSTEAD OF HIMSELF AND THE
conclusion of the next Annual General PROXY NEED NOT BE A MEMBER OF
Meeting at a remuneration of Rs7.50 THE BANK. The proxy form should be
lacs (Rupees seven lacs fifty thousand lodged with the Bank at its Registered
only) plus reimbursement of out of pocket Office atleast 48 hours before the time
expenses incurred by them for the of the meeting.
purpose of audit of the Bank’s accounts 2. Explanatory Statement pursuant to
at the Head Office as well as all branch Section 173(2) of the Companies Act,
offices of the Bank. 1956 in respect of the Special Business
is annexed hereto.
SPECICAL BUSINESS
3. Members are requested to promptly
To consider, and if thought fit, to pass with notify any changes in their address
or without modifications, the following to the Registrars and Share transfer
Resolutions; agents MCS Limited, Unit : HDFC Bank
4. As an Ordinary Resolution : Ltd., Sri Venkatesh Bhawan, Plot No.27
Road No.11, MIDC Area, Andheri
“RESOLVED THAT Mr. J. S. Baijal be (East), Bombay - 400 093.
and is hereby appointed a Director of the
4. All documents referred to in the Notice
Bank liable to retire by rotation.” and Explanatory Statement are open
5. As an Ordinary Resolution : for inspection at the Registered Office
of the Bank during office hours on all
“RESOLVED THAT Mr. P. W. Deer be working days except public holidays;
and is hereby appointed a Director of the between 11.00 a.m. and 1.00 p.m. upto
Bank not liable to retire by rotation.” the date of the Annual General Meeting.
4
 1
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Annual
Report
1994-95
ANNEXURE Explanatory Statement pursuant to Section 173(2) of the Companies Act, 1956
TO THE
NOTICE NatWest Markets, the strategic alliance K.M.Mistry as retiring Directors. The Bank
partner of the Bank have, subject to the has also received deposits for Rs.500 in
approval of the Members in the Annual respect of each of the Directors as required
General Meeting, proposed Mr. P.W.Deer under the Act.
and Mr. P J. Wise as their nominees on the
The Board of Directors recommends their
Board of the Bank, Mr. P. W. Deer and Mr.
appointment as Directors.
P. J. S. Wise were appointed as Additional
Directors of the Bank and would hold office None of the Directors other than the Directors
as Directors upto the ensuing Annual being reappointed, is in any way, concerned
General Meeting. or interested in the said Resolution.
Mr. J. S. Baijal, Mr. N. M. Munjee amd Mr.
K. M. Mistry were appointed as Additional By Order of the Board
Directors of the Bank and would hold
S. S. THAKUR
office as Directors upto the ensuing Annual
Chairman
General Meeting.
Date : April 20, 1995
The Bank has received notices from
Members signifying their intention, Registered Office :
proposing the candidature of Mr. P.W.Deer Sandoz House,
(as non-retiring Director) and Mr. J. S. Baijal, Dr.Annie Besant Road,
Mr.P.J.S.Wise, Mr N.M. Munjee and Mr. Worli, Bombay 400 018.

5
HDFC BANK LTD.
DIRECTORS’ Your Directors have pleasure in presenting professional people. Based on these
REPORT the First Annual Report on the working cornerstones, it is our aim to build an
results of the Bank, together with the audited Indian bank that meets customer needs
accounts for the period ended March 31, and provides services to an international
1995. standard across the country.
BANK’S PERFORMANCE Operational excellence :
The Bank was incorporated on August 30, Your Bank has created am efficient
1994 and received its Banking Licence on operating system using well tested state-of-
January 5, 1995. the-art software. The Bank has automated
all areas of operations relating to trade
Your Bank opened its first branch in
finance, funds transfers, foreign exchange
Ramon House at Churchgate, Bombay
and moneymarket dealings. This software
on January 16, 1995. Consequently, the
system worksin a highly secure environment
performance shown in this report reflects
and is capable of allowing customers to
the Bank’s operations from that date until
access details of their accounts with the
March 31, 1995. Following the opening of
Bank through their personal computers. The
the first branch, the Bank established the
system combined with a well trained and
corporate office and a full service branch at
dedicated team gives the Bank a competitive
Sandoz House, Worli, Bombay which was
edge to serve customers promptly and
inaugurated by the Union Finance Minister,
efficiently.
Dr Manmohan Singh on February 18, 1995.
Customer focus :
Your Bank has achieved significant initial
success in its deposits, advances and HDFC Bank Ltd. fully recognises the need
investment activities. As of March 31, 1995, to meet its social obligations to the priority
total deposits were Rs.641.9 crores and sectors. Over and above these, it must
total advances, placements and investments determine which opportunities it will select
amounted to Rs.615.3 cores. The financial from the range available in today’s changing
results for the period ended March 31, 1995 economic environment. Amongst them,
are as under : your Bank has identified three key groups:
Indian business houses and multinational
(Rs.lakhs)
corporations, Foreign Institutional Investors
Profit before Tax  120.79 and domestic mutual funds. To meet the
Provision for Tax  40.60 needs of the customers, your Bank is now
embarking on the expansion of its branch
Profit after Tax  80.19 network in other strategic locations. During
Appropriations have been made as under : the financial year 1995-96, it is planned to
open branches in Madras, Delhi, Calcutta,
Transfer to Special Reserve  16.04
Bangalore, Ahmedabad and Pune, besides
Transfer to General Reserve  64.15 additional locations in Bombay.
DIVIDEND Product leadership :
In view of the short period of operations, your To succeed in winning business from its target
Directors recommend that no dividend be customers, the Bank must differentiale its
paid for the period ended March 31, 1995. products from those offered by competitors.
APPROACH TO BUSINESS Custody services offer a clear opportunity
for this. Your Bank has made substantial
The Bank’s business philosophy is based investment in infrastructure and state-of-
on four core values: operational excellence, the-art computerised systems as well as
customer focus, product leadership and putting in place a team of experienced and

6
 1
ST
Annual
Report
1994-95
DIRECTORS’ competent professionals in this field. Association of the Bank, Mr D. M. Satwalekar
REPORT Working closely with its strategic alliance
retires at the ensuing Annual General
Meeting. Mr Satwalekar was among the first
partner, NatWest Markets, your Bank
Directors named in the Articles of Association
has created a Treasury of International
and is eligible for reappointment. Under the
standards and is laying the foundations of
terms of Article 124 of the Bank’s Articles of
an equity research and debt capability in the
Association, Housing Development Finance
international capital markets. Your Bank has
Corporation Limited (HDFC), the promoter
already received registration to operate as
of the Bank, has proposed Mr. D. M.
a Merchant Banker (Category I) and SEBI
Satwalekar as its nominee on the Board of
has permitted the Bank to act as bankers to
the Bank, being a Director not liable to retire
public issues.
by rotation.
By these means your Bank, together with its
NatWest Markets, the strategic alliance
strategic alliance partner NatWest Markets,
partner of the Bank, has nominated Mr P. W.
offers a unique capability in meeting the
Deer and Mr. P. J. S. Wise as Directors on the
global needs of its target client base.
Board of the Bank subject to the approval of
Professional People : the Members in the Annual General Meeting.
To execute its strategy, your Bank has Mr. J. S. Baijal, Mr N. M. Munjee and Mr.
recognised the need to attract staff of the K. M. Mistry were appointed as Additional
highest quality. The calibre of our staff, both Directors of the Bank and would hold
in academic qualifications and in their depth office as Directors upto the ensuing Annual
and breadth of experience is exceptional. General Meeting.
PUBLIC ISSUE The Bank has received notices from
Your Bank made a Public Issue of 5,00,00,000 members signifying their intention to propose
equity shares of Rs.10 each at par in March the candidature of Mr. P. W. Deer as non-
1995 which has been oversubscribed by retiring Director and Mr. J. S. Baijal, Mr P.
more than fifty times. J. S. Wise, Mr. N. M. Munjee and Mr. K. M.
Mistry as retiring Directors.
EMPLOYEES
AUDITORS
In compliance with the provisions of Section
217(2A) of the Companies Act, 1956, a M/s Bharat S Raut & Co. Chartered
statement giving the requisite information is Accountants, the Statutory Auditors of the
annexed hereto and forms part of this report. Bank, retire at the forthcoming Annual
General Meeting and are eligible for
APPRECIATION reappointment.
The Board would like to place on record its
appreciation to all the employees of the Bank
for their contribution to the performance of On behalf of the Board of Directors
the Bank during the period under review. S. S. Thakur
DIRECTORS Chairman

In accordance with the provisions of the Date : April 20, 1995

Companies Act, 1956 and the Articles of Place : Bombay

7
HDFC BANK LTD.
ANNEXURE STATEMENTS UNDER SECTION 217(2A) OF THE COMPANIES ACT, 1956, READ WITH THE COMPANIES
(PARTICULARS OF EMPLOYEES) RULES, 1975 AND FORMING PART OF THE DIRECTORS’ REPORT
TO The FOR THE PERIOD ENDED 31ST MARCH, 1995.
DIRECTORS’S
REPORT S. Name of Employee/
No. Date of Joining
Designation Qualification Age Experience Remuner- Last Employment
Years years ation

1. A Rajan Vice-President Science Graduate 43 20 4,73,115 Bak of America

1/9/94 Country Operations Bombay University

2. Abhay Aima Vice-President Graduate from National 33 9 2,35,500 INDSEC Security &
2/1/95 Head Equity Services Defence Academy Finance Limited

3. Aditya Puri Managing Director B.Com., A.C.A. 44 22 8,54,095 Citibank, Malaysia

12/9/94

4. Ashish Parthasarthy Vice-President B.E. P.G.D.M 27 6 2,25,000 INDSEC Investments

1/11/94 Head Money Markets Limited

5. Atul Prakash Vice President M.B.A. International 38 15 1,06,249 Credit Capital Finance
9/1/95 Merchant Banking Management Institute. Corporation Limited
Geneva, Switzerland

6. Bharat Shah Executive Director B.Sc. H.N.D. 48 24 4,55,933 Union Bank of

9/12/94 Switzerland, Singapore

7. C. N. Ram Vice-President B.Tech. Electronics 37 15 4,15,256 Bank of America

1/7/94 Information Technology Post Graduate Diploma
in Management

8. G. Subramanian Vice-President B.Sc. CAIIB. 48 22 1,31,237 Reserve Bank of India

4/1/95 Audit & Compliance Cert. course in French

9. H. Srikrishnan Vice-President B.Com., M.B.A. 33 13 1,40,172 Emirates Bank

2/12/94 Head Branch Operations International Ltd

10. Harish Engineer Vice-President B.Sc. D.B.M. 46 25 5,37,112 Bank of America

12/7/94 Corporate Banking

11. Luis Miranda Vice-President M.Com., C.A. M.B.A. 33 6 3,56,907 Hongkong Bank
16/8/94 Foreign Exchange

12. Paresh D Sukthankar Vice-President B.Com., M.M.S. LL.B. 32 10 4,06,050 Citibank

1/9/94 Risk Management & Credit (GEN)

13. S. Ramanathan Vice-President B.Com., LL.B., A.C.A., 34 11 1,99,042 Stock Holding Corp. of
1/9/94 Custodial Services CS India Ltd

14. Sameer Tiware Ass. Vice-President P.G.D.M., B.Tech 26 4 77,069 INDSEC Share & Stock
23/1/94 Broking Limited

15. Samir Bhatia Vice-President B.Com., C.A. 31 11 2,87,678 Citibank

19/9/94 (Project) A.I.C.W.A.

16. Sankara Raman Financial Controller A.C.A., CS 29 4 1,19,877 Standard Chartered

21/11/94 Bank

17. Shailendra Bhandari Vice-President B.A. (Hons), M.B.A. 36 12 10,72,94 Citibank

16/8/94 Treasury

18. Vinod Yennemadi Executive Director B.A. (Hons), F.C.A. 52 27 10,25,828 Kalyani Steels Ltd
4/4/94 England & Wales

Notes: 1. Remuneration shown above includes Salary. Allowances, Medical, Leave Travel Expenses and monetary value of perquisities as per
income tax rules.

2. Nature of employment contractual.

3. Other terms and conditions : All appointments are terminable by one month’s / three months’s noticeas the case may be on either
side.

4. None of the employees mentioned above is a relative of any Director of the Bank.

On behalf of the Board of Directors

S. S. THAKUR
Chairman

Date : April 20, 1995

Place : Bombay

8
 1
ST
Annual
Report
1994-95
AUDITORS’ Auditors’ Report on the Financial Statements of HDFC Bank Limited under Section 30 of
REPORT The Banking Regulation Act, 1949.
We have audited the Balance Sheet of We further report that :
HDFC Bank Limited (‘the Bank’) as at March
a) the financial statements are in
31, 1995 and the related Profit and Loss
agreement with the books of account
Account for the period from August 30, 1994
and give the information required by the
(the date of incorporation) to March 31,
Companies Act, 1956, in the manner so
1995. We have obtained all the information
required for banking companies;
and explanations which to the best of our
knowledge and belief, were necessary for b) the Bank has maintained proper books
the purposes of our audit and have found of account as required by law insofar as
them to be satisfactory. appears from our examination of those
books;
In accordance with provisions of Section 29
of the Banking Regulation Act, 1949 read c) the returns received from the branches
with the provisions of sub-sections(1), (2) have been found to be adequate for the
and (5) of Section 211 and sub-section(5) of purpose of our audit;
Section 227 of the Companies Act, 1956, the d) the transactions which have come to
financial statements are not required to be, our notice have been within the powers
and are not drawn up, in accordance with of the Bank.
Schedule VI of the Companies ACt, 1956.
The financial statements are therefore, For Bharat S. Raut & Co.
drawn up in conformity with Forms A and Chartered Accountants
B (revised of the Third Schedule to the
Banking Regulation Act, 1949.
SP MEDORA
In our opinion the financial statements give
Partner
a true and fair view of the state of affairs of
the Bank as at March 31, 1995 and of its Date : April 20, 1995
profit for the period then ended. Bombay

9
HDFC BANK LTD.
BALANCE (Rs. ‘000)
SHEET AS
Schedule As at
AT MARCH 31.3.1995
31, 1995
CAPITAL AND LIABILITIES
Capital 1 150,00,00
Reserve & surplus 2 80.19
Deposits 3 641,90,12
Borrowings 4 40,11,94
Other liabilities and provisions 5 2560,96,10
Total 3393,78,35
PROPERTY AND ASSETS
Cash and balances with Reserve Bank of India 6 205,63,29
Balances with Banks and Money at Call & Short notice 7 1330,99,53
Investments 8 221,33,77
Advances 9 98,00,21
Fixed Assets 10 21,47,33
Other Assets 11 158,25,91
Total 3393,78,25
Contingent Liabilities 12 158,25,91
Bills for Collection 10,68

SEE NOTES APPENDED

In terms of our attached report of even date

FOR BHARAT S. RAUT & CO FOR AND ON BEHALF OF THE BOARD

Chartered Accountants

SP MEDORA S. S. THAKUR ADITYA PURI

Partner Chairman Managing Director

D. M. SATWALEKAR
P. J. S. WISE
N. M. MUNJEE
S RAMANATHAN K. M. MISTRY
Company Secretary & Vice President Directors

DATE : April 20, 1995

PLACE : BOMBAY
10
 1
ST
Annual
Report
1994-95
PROFIT (Rs. ‘000)
AND LOSS
Schedule Period ended
ACCOUNT 31.3.1995
FOR THE
PERIOD INCOME
ENDED 31ST Interest earned 13 12,61,28
MARCH, Other income 14 1,66,74
1995
Total 14,28,02
EXPENDITURE
Interest expended 15 4,76,65
Operational expenses 16 5,94,70
Provisions & Contingencies 17 40,60
Total 11,11,95
Operating Profit for the period 3,16,07
Amortisation of Perliminary Expenses (1,12,12)
Amortisation of Share Issue Expenses (93,43)
Amortisation of Preoperative Expenses (30,33)
Net profit for the period 80.19
APPROPRIATIONS
Transfer to Statutory Reserves under Sec.11(2)(b)(ii) 16.04
Balance carried over to the Balance Sheet 64.15
Total 80.19

SEE NOTES APPENDED

In terms of our attached report of even date

FOR BHARAT S. RAUT & CO FOR AND ON BEHALF OF THE BOARD

Chartered Accountants

SP MEDORA S. S. THAKUR ADITYA PURI

Partner Chairman Managing Director

D. M. SATWALEKAR
P. J. S. WISE
N. M. MUNJEE
S RAMANATHAN K. M. MISTRY
Company Secretary & Vice President Directors

DATE : April 20, 1995

PLACE : BOMBAY
11
HDFC BANK LTD.
SCHEDULES (Rs. ‘000)
TO The
As at
ACCOUNTS 31.3.1995
SCHEDULE 1 - CAPITAL
Authorised Capital
(30,00,00,000 Shares of Rs.10 each) 300,00,00
Issued Capital
(11,00,00,000 Shares of Rs.10 each) 110,00,00
Subscribed Capital
(11,00,00,000 Shares of Rs.10 each) 110,00,00
Share Subscription Money received from NatWest Group to be
allotted 40,00,00
Total 150,00,00

SCHEDLE 2 - RESERVES AND SURPLUS

Statutory Reserves 16.04
Balance in Profit and Loss account 64.15
Total 80.19

SCHEDLE 3 - DEPOSITS 10,68

I. Demand Deposits
(i) From Banks -
(ii) From Others 33,58,39
33,58,39
II. Savings Bank Deposits 2,29,98
III. Term Deposits
(i) From Banks -
(ii) From Others 606,01,75

606,01,75

Total 641,90,12

SCHEDLE 4 - BORROWINGS
I. Borrowings in India
Other Banks 40,00,00
II. Borrowings outside India 11,94
Total 40,11,94
Secured borrowings included in above --

12
 1
ST
Annual
Report
1994-95
SCHEDULES (Rs. ‘000)
(Contd.)
As at
31.3.1995
SCHEDULE 5 - OTHER LIABILITIES AND PROVISIONS
I. Bills Payable 38,44,78
II. Interest Accured 3,59,80
III. Others (including provisions) 2,92,47
IV. Share Application Money
(Received against the public issue of 5,00,00,000
shares of Rs.10/- each, pending allotment) 2515,99,05
Total 2560,96,10

SCHEDLE 6 - CASH AND BALANCES WITH RESERVE

BANK OF INDIA
I. Cash in hand
(including foreign currency notes) 44.87
II. Balance with Reserve Bank of India
In Current Account 205,18,42
Total 205,63,29

SCHEDLE 7 - BALANCE WITH BANKS AND

MONEY AT CALL AMD SHORT NOTICE
I. In India
(i) Balance with banks
(a) (in Current Accounts 52,68
(b) in Other Accounts
(Share application money - Public Issue) 1034,44,98
1034,97,66
(ii) Money at call and short notice
(a) with Banks 291,00,00
(b) with Other Institutions 5,00,00
296,00,00
II. Outside India
in Current Accounts 1,87
Total 1330,99,53

SCHEDLE 8 - INVESTMENTS
I. Investment in India
(i) Govt securities 162,39,40
(ii) Debentures and Bonds 49,02,50
(iii) Others - Certificates of deposits and mutual funds 9,91,87
221,33,71
II. Investments outside India --
Total 221,33,77
13
HDFC BANK LTD.
SCHEDULES (Rs. ‘000)
(Contd.)
As at
31.3.1995
SCHEDULE 9 - ADVANCES
A. (i) Cash credits, Overdrafts and Loans 40,00,21
(ii) Term loans 58,00,00
Total 98,00,21
B. (i) Secured by tangible assets 15,80,84
(ii) (Unsecured) 82,19,37
Total 98,00,21
C. Advances in India
(Other than to Priority Sector, Public Sector & Banks) 98,00,21

Total 98,00,21
(No provisions have been made as all advances are considered realisable)

SCHEDLE 10 - FIXED ASSETS

A. Premises --
B. Other Fixed Assets (including Furnitures and Fixtures)
Additions during the period 6,24,55
Depreciation charge for the period (21,72)
C. Captial Work in Progress 15,44,50
Total 21,47,33
(Capital work in progress includes advance payments totalling Rs.11,40,00
thousand towards purchase of property for custodial services and premises at
Bombay and Madras

SCHEDLE 11 - OTHER ASSETS

Interest accrued 12,06,57
Tax paid in advantage/Tax deducted at source 1,11
Stationery and Stamps 15
Others 1504,26,39
Total 1516,34,22
(Includes share application manies received under stockinvest Rs.1481,54,07
thousand out of which Rs.352,14,95 thousand relates to the Bank’s stockinvest
scheme)

SCHEDLE 12 - CONTINGENT LIABILITIES

Liability on account of outstanding forward exchange contracts 126,02,70
Guarantees given on behalf of constituents 16,05,15
Acceptances, endorsements and other obligations 8,44
Underwriting Commitments 1,30,00
Capital Commitments not provided for 14,79,62
Total 158,25,91
Bills for collection 10,68
14
 1
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Annual
Report
1994-95
SCHEDULES (Rs. ‘000)
(Contd.)
As at
31.3.1995
SCHEDULE 13 - INTEREST EARNED
Interest/Discount on Advances/Bills 1,28,76
Income on Investments 4,36,08
Interest on balance with Reserve Bank of India and
other inter-bank funds 6,94,61
Others 1,83
Total 12,61,28

SCHEDLE 14 - OTHER INCOME

Commission, Exchange and Brokerage 1,74,00
Profit on Sale of Investments 1,47
Loss on Revaluation of Investments (8,20)
Loss on Exchange Transactions (73)
Miscellaneous Income 20
Total 1,66,74
(The loss on exchange transactions of Rs.73 thousand companies of Rs.2.49
thousand being the swap cost of Foreign currency (Non Resident)(Banks)
Deposits (FCNR B) classified as exchange related cost and Rs.1.76 thousand
being the trading profits on foreign exchange transactions)
(In this with RBI guidelines, amortisation of premiums are treated as losses on
revaluation of Investments. However any amortisation of discounts on Investments
are not taken as profits in the Profit and Loss account).

SCHEDLE 15 - INTEREST EXPENDED

Interest on Deposits 4,37,92
Interest on Reserve Bank of India/Inter-bank borrowings 38.73
Total 4,76,65

SCHEDLE 16 - OPERATING EXPENSES

Payments to and Provisions for Employees 1,09,98
Rent, Taxes and Lighting 2,02,98
Printing & Statonery 17.01
Advertisement and Publicity 26.84
Depreciation on Bank’s Property 21.72
Director’s Fees, Allowances and Expenses 92
Auditor’s Fees and Expenses 4.20
Law charges 1.88
Postage, Telegram, Telephone etc 11.92
Repairs & Maintenance 95.92
Insurance 2.80
Other Expeniture 98.53
Total 5,94,70
(Other expenditure, interalia, includes interest tax, inland and foreign travel costs,
placement charges, hotel charges and hire charges

SCHEDLE 17 - PROVISIONS AND CONTINGENCIES

Provision for Income Tax 40,00
Provision for Wealth Tax 60
Total 40,60

15
HDFC BANK LTD.
NOTES TO NOTE APPENDED TO AND FORMING PART OF FINANCIAL STATEMENTS FOR THE
SCHEDULES PERIOD ENDED 31ST MARCH 1995
1. PRINCIPAL ACCOUNTING POLICIES
GENERAL
1. The accompanying financial statements are prepared on the historical cost basis and in accordance
with the generally accepted accounting principles and conform to the statutory provisions and practices
prevailing within the banking indsutry in India.
2. Transactions involving Foreign Exchange
a. Foreign currency assests and liabilities are translated on the Balance Sheet date at the rates
notified by Foreign Exchange Dealer’s Association of India (‘FEDAT’). The resulting profits or
losses on revaluation are included in the Profit and Loss account.
b. Contingent liabilities on account of outstanding foreign exchange contracts are reported at the
contracted rates. Outstanding foreign exchange contracts including deposit swaps, have been
revalued in the Balance Sheet at the rates notified by FEDAI and the resulting profits or losses
are included in the Profit and Loss account.
c. Income and Expenditure items are accounted for at the exchange rates ruling on the date of the
transaction.
3. Investments
a. Investments in bonds of certain public sector units, made before commencement of banking
business has been classified as “Permanent Investments”. These are valued at cost and the
premium paid in excess of the face value is amortised to maturity.
b. All investments other than those mentioned above are “Current investments” and are valued
at the lower of cost or market value, in aggregate, for each category in compliance with the
RBI requirements. Treasury Bills are valued at carrying costi.e. face value as adjusted for
unamortised discount or premium.
4. Advances
Advances are stated net of provision for doubtful advances and interest in suspense. Provision for
doubtful advancesis made in respect of identified advances based on a periodic review and after
having considered the provisioning guidelines issued by the RBI. Interest on doubtful advances is
credited to an interestin suspense account and not recognised in the Profit and Loss account until
received.
5. Fixed Assets
a. Fixed Assets are accounted for on a historical cost basis and are capitalised to the extent
projects are completed.
b. Depreciation has been provided for on the straight line rates prescribed by Schedule XIV of the
Companies Act, 1956.
6. Pre-incorporation, Preoperating and Share issue Expenses
Expenses relating to pre-incorporation, preoperating and share issue are amortised over 12 months.
Accordingly Rs.2,35,88 thousand has been written off to the Profit and Loss account and the unabsorbed
portion of Rs. 2,35,87 thousand is carried forward in the Balance Sheet to be written off over the next
6 months.
7. Staff Benefits
Staff benefits are accounted for on an accural basis.
8. Net Profit
The net profit in the Profit and Loss account is after :
- Provision for any depreciation in the value of investments
- Provision for taxation
- Provision for doubtful advances
- Other usual and necessary provisions
2. OTHER NOTES
Previous year comparative figures have not been furnished as this is the first year of operation.
In terms of our attached report of even date

FOR BHARAT S. RAUT & CO FOR AND ON BEHALF OF THE BOARD

Chartered Accountants

SP MEDORA S. S. THAKUR ADITYA PURI

Partner Chairman Managing Director

D. M. SATWALEKAR
P. J. S. WISE
N. M. MUNJEE
S RAMANATHAN K. M. MISTRY
Company Secretary & Vice President Directors
DATE : April 20, 1995
PLACE : BOMBAY

16
 HDFC BANK LIMITED
Regd. Office : Sandoz House, Dr. Annie Besant Road,
Worli, Bombay 400 018

ENTRANCE PASS
(to be presented at the entrance)

1st Annual General Meeting at Birla Matushri Sabhagar, 19, Marine Lines, Bombay 400 020
on Saturday, 20th May, 1995 at 11.00 a.m.

Ledger Folio No........................................................ Signature ...............................................

Only shareholders / proxies / representatives are allowed to attend the meeting.

HDFC BANK LIMITED

Regd. Office : Sandoz House, Dr. Annie Besant Road,
Worli, Bombay 400 018

ENTRANCE PASS
Ledge Folio No ................................................ No of shares held .......................................
I / We ..................................................... ..................................................... ........................................
of ........................................ in the district of ........................ being a member(s) of the above named
Company, hereby appoint ................................................................... of .............................................
in the district of ........................... or falling him .................................. of ........................ in the district
of ......................................... as my / our proxy to attend and vote for me / us and on my / our behalf
at the First Annual General Meeting of the Company to be held on Saturday, 20th May, 1995 and at
any adjournment thereof.

Affix
Re.1
Revenue
Stamp
Signed this ..................................... day of ........................, 1995
Signature

Note : This form duly completed should be deposited at the Registered Office of the Company at
Bombay not later than 48 hours before the time of the meeting.
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