.

i HDFC
HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED

UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE

QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2020
~inCrore
Quarter Quarter Quarter Nine Months Nine Months Year
ended ended ended ended ended ended
PARTICULARS
31-Dec-20 30-Sep-20 31-Dec-19 31-Dec-20 31-Dec-19 31-Mar-20
Reviewed Reviewed Reviewed Reviewed Reviewed Audited
Revenue from Operations
(i) Interest Income 10,710.18 10,825.11 10,727.38 32,325.95 31,683.91 42,647.12
(ii) Surplus from deployment in Cash 127.21 176.84 255.35 665.78 860.82 1,102.21
Management Schemes of Mutual Funds
(iii) Dividend Income 2.22 322.97 3.75 623.42 1,078.60 1,080.68
(iv) Rental Income 16.54 19.79 17.99 52.50 48.95 70.36
(v) Fees and Commission Income 53.15 58.83 44.54 144.22 127.06 192.78
(vi) Net gain I (loss) on Fair Value changes 230.32 165.99 39.00 490.34 (328.35) 99.23
(vii) Fair Value gain consequent to merger of
GRUH, an associate, with Bandhan Bank 9,019.81 9,019.81 9,019.81
(Note 10)
(viii) Profit on Sale of Investments 157.10 (0.61) 1,397.69 3,521.30 3,523.75
(ix) Profit on Sale of Investment-Properties 7.40 20.80 35.11
(X) Income on derecognised/assigned loans 410.28 159.04 170.25 752.74 730.30 967.87
Total Revenue from Operations 11,707.00 11,727.96 20,285.47 36,452.64 46,763.20 58,738.92
II Other Income 9.34 4.74 5.98 15.69 18.48 24.42
Ill Total Income (1+11) 11,716.34 11,732.70 20,291.45 36,468.33 46,781.68 58,763.34
Expenses
(i) Finance Cost 6,832.65 7,399.11 7,769.55 22,048.81 23,339.52 31,001 .36
(ii) Impairment on financial instruments 594.00 436.00 2,995.00 2,229.00 4,639.10 5,913.10
(Expected Credit Loss)
(iii) Employee Benefit Expenses (Note 4) 290.53 181.11 152.99 632.07 453.32 592.92
(iv) Depreciation, amortisation and impairment 51.62 35.95 42.05 122.20 104.59 147.74
(v) Establishment Expenses 8.96 7.59 9.44 29.84 35.20 40.37
(vi) Other Expenses 186.04 141 .16 179.43 515.26 551.47 716.93
IV Total Expenses 7,963.80 8,200.92 11, 148.46 25,577.18 29, 123.20 38,412.42
v Profit Before Tax (Ill-IV) 3,752.54 3,531.78 9,142.99 10,891.15 17,658.48 20,350.92
Tax Expense
- Current Tax 756.26 592.46 652.64 2,188.09 2,030.02 2,571.68
- Deferred Tax 70.45 69.20 117.86 (144.41) 91.34 9.59
VI Total Tax Expense 826.71 661.66 770.50 2,043.68 2,121.36 2,581.27
VII Net Profit after Tax (V-VI) 2,925.83 2,870.12 8,372.49 8,847.47 15,537.12 17,769.65
VIII Other Comprehensive Income 2,325.84 (1,405.02) (806.68) 2,939.68 (640.13) (6,652.31)
IX Total Comprehensive Income (Vll+Vlll) 5,251.67 1,465.10 7,565.81 11,787.15 14,896.99 11,117.34
Earnings per Share (Face value ~ 2)*
- Basic (~) 16.27 16.24 48.51 50.10 90.05 102.91
- Diluted (~) 16.24 16.22 48.11 49.95 89.36 102.12
Paid-up Equity Share Cap i15J ~C8 '@&i~l 360.04 359.16 345.81 360.04 345.81 346.41
Reserves excluding Rev~~)i'yr1 ~ ......%~ March 31 85,811 .65
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 .i HDFC
HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED
Notes:

The financial results have been prepared in accordance with the recognition and measurement principles laid down in Indian
Accounting Standard 34 - Interim Financial Reporting , notified under Section 133 of the Companies Act, 2013 read with
Companies (Indian Accounting Standards) Rules, 2015, as amended from time to time, and other accounting principles
generally accepted in India.

2 During the quarter, the Corporation has sold 25,48,750 equity shares of HDFC Life Insurance Company Limited (HDFC Life)
and complied with the direction from the RBI to reduce the shareholding in HDFC Life to 50 per cent or below. As a result, a pre
tax profit on sale of investments of~ 157.10 Crore has been recognised in the quarter ended December 31 , 2020 and the
Corporation's equity shareholding in HDFC Life stood at 49.99 per cent.

3 During the quarter ended December 31, 2020, the National Company Law Tribunal has sanctioned the Scheme of
Amalgamation for merger of HDFC ERGO Health Insurance Limited (formerly Apollo Munich Health Insurance Company
Limited) (HDFC ERGO Health) with and into HDFC ERGO General Insurance Company Limited (HDFC ERGO), subsidiaries of
the Corporation and Insurance Regulatory and Development Authority of India (IRDAI) has issued final approval for the merger.
Consequently, HDFC ERGO Health has been mer~ed with HDFC ERGO from appointed date i.e. March 1, 20?0. As ;:it thP. P.nrl
of this quortcr the Corporation's holding in HDFC ERGO, the merged entity is 50.56 per cent. As per the directions of RBI, the
Corporation is required to reduce its shareholding in the merged entity to 50 per cent or below within 6 months post
amalgamation.

4 The Nomination and Remuneration Committee of the Directors of the Corporation at its meeting held on September 4, 2020
had approved grant of 3,83,96,531 stock options representing 3,83,96,531 equity shares of ~ 2 each, at a grant price of ~
1,808. 75 per equity share (being the market price as defined in the applicable SEBI Regulations), to its eligible employees and
whole-time directors under HDFC Employees Stock Option Scheme - 2020. The total charge for share based payment to
employees for the quarter ended December 31, 2020 is~ 147.12 Crore and for the nine months ended December 31 , 2020 is
~ 194.15 Crore.

5 During the previous quarter, the Corporation raised additional capital through a Qualified Institutions Placement of 5,68, 18, 181
equity shares at a price on 1, 760.00 per share and 1,70, 57 ,400 convertible warrants at an issue price of ~ 180.00 per warrant
with a right to exchange one warrant with one equity share of ~ 2 each, any time before the expiry of 36 months from the date of
allotment, at an exercise price of ~ 2.165.00 per warrant. Consequent to the issuance, the paid up sh;:irP. r:;:ipit;:il of thP.
Corporation has increased by~ 11 .36 Crore and other eouitv has increased bv ~ 10.273.52 Crore after charging iss~Je relaterl
expenses.
.
6 During the quarter ended December 31 , 2020, the Corporation allotted 43,89,970 equity shares of ~ 2 each pursuant to
exercise of stock options by certain employees/ directors.

7 Consequent to the outbreak of COVID-19 pandemic, the Indian government had announced lockdown in March 2020.
Subooquontly, the lool<down has been lifted by the government in a ph.!l!ed m.!111ner uut!ide !pecified cur1Lcii11111t:11L Lui 11:::~ .

The extent to which the COVID-19 pandemic will impact Corporation's performance will depend on future developments, which
are uncertain, including, among other things, any new information concerning the severity of the COVID-19 pandemic and any
action to contain its spread or mitigate its impact whether government mandated or elected by us.

In accordanc• with th~ Riil guid~limi' rQlo;iting to COVID 10 Ruyululu1y ruultugo datod Maroh 27, 2020, /\pril 17, 20~0 tind M&y
:23, :20:20, tho Corporation had offorod moratorium on the payment of in3ttillment3 falling due between March 1, 2020 and
/\uguot 31 , 2020 ('moratorium period') to eligible borrower!. In re!pe.:.t uf account! w1·1e1 e n 101 dlu1 iu111 Lie11eriL wd:. y1 d11L1:::Ll, LI 11=
staging of those accounts as at December 31, 2020 is based on the days past due status considering the benefit of moratorium
period In accordance with the COVID-19 Regulatory Package announced by the RBI vide aforesaid notifications.

8
 :. HDFC
HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED
9 The Government of India, Ministry of Finance, vide its notification dated October 23, 2020, had announced COVID-19 Relief
Scheme for grant of ex-gratia payment of difference between compound interest and simple interest for six months to borrowers
in specified loan accounts (Scheme), as per the eligibility criteria and other aspects specified therein and irrespective of
whether the moratorium was availed or not. During the quarter, the Corporation has implemented the Scheme and credited the
accounts of or remitted amounts to the eligible borrowers as per the Scheme.

10 During the previous year, GRUH Finance Limited (GRUH), an associate company, was merged with Bandhan Bank effective
October 17, 2019. The Corporation recorded a fair value gain of~ 9,019.81 crore through the Statement of Profit and Loss
during the quarter ended December 31, 2019 on derecognition of investment in GRUH.

11 The Corporation's main business is financing by way of loans for the purchase or construction of residential houses,
commercial real estate and certain other purposes, in India. All other activities of the Corporation revolve around the main
business. Accordingly, there are no separate reportable segments, as per the Ind AS 108 dealing with 'Operating Segment'.

12 Figures for the previous period have been regrouped wherever necessary, in order to make them comparable.

The above results for the quarter and nine months ended December 31, 2020 were reviewed by the Audit and
Governance Committee of Directors and subsequently approved by the Board of Directors at its meeting held on
Fobruory 2, 2021, in tcrm:1 of Regulation 33 of the CCDI (Li.sting Obligationa and Disclosure Requiremenb)
Regulations, 2015.

The above results for the q1Jarter and nine months ended December 31, 2020 have been subjected to a Limited Review
by the Auditors of the Corporation.

For and on behalf of the Bon Directors

!-'lace: Mumbai
Date: February 2, 2021
~Mistry
ViceCha i~O

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 -i HDFC
HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED
UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2020

~I n Crore
Quarter ended Nine Months ended Year ended
PARTICULARS 31-Dec-20 30-Sep-20 31-Dec-19 31-Dec-20 31-Dec-19 31-Mar-20
Reviewed Reviewed Reviewed Reviewed Reviewed Audited
1 Revenue from Operations
- Interest Income 11,182.63 11 ,231 .51 11 ,184.65 33,582.24 33,862.63 45,253.26
- Surplus from deployment in Cash Management
127.76 177.34 255.35 666.83 877.51 1,118.90
Schemes of Mutual Funds
- Dividend Income 6.74 14.51 16.23 29.74 63.80 89.21
- Rental Income 11.89 14.02 12.35 36.29 31.89 47.13
- Fees and commission Income 508.07 489.08 552.17 1,435.37 1,627.13 2,138.82
- Profit on loss of control over a subsidiary (Refer
1,798.81 9,799.10 9,799 .10
note 11)
Net gain I (1033) on fair value changes 649.31 350.12 130.04 1,350.37 (172.00) (179.07)
- Profit on sale of Investment and Investment
6.36 23.25 35.11
properties
- Income on derecognised I assigned loans 367.97 159.04 170.25 710.43 730.30 967.87
- Premium and other operating income from Life
11,258.62 12,058.00 9.767.31 30,607.22 26,798.43 38,328.46
Insurance Business - Policyholder's funds
- Net Gain I (Loss) on Investments in Life Insurance
10,044.33 4,281 73 1,682 .37 21,305.68 1,223.23 (10,286.99)
busmes - 1-'olicyholder's tunds
- Income from General Insurance Business -
5,101.74 5,307.62 3,488.07 13,571.43 10,261 .16 14,414.51
Policyholdel's funds
Total Revenue from Operations 39,259.06 34,082.97 29,071 .96 1,03,295.60 85,125.63 1.01,725.71
2 Other Income 8.53 7.48 1.23 21.78 38.27 70.19
3 Total Income (1+2) 39,267.59 34,090.45 29,073.19 1,03,317.38 85,163.90 1,01.795.90
4 Expenses:
- Finance cost 6,954.48 7,518.34 7,885.13 22,415.27 24,309.01 32,109.45
- Impairment on financial instruments
625.98 479.44 2,998.16 2,309.45 4,641.70 5,951 .12
(Expected Credit Loss)
- Employee benefit expenses 500.35 368.76 156.32 1,192.93 1,039.32 1,356.66
• Dt1jiit1dAliu11 , A111uili&dliu11 d11o..I i111µdi1111tl11l 90.81 ~9 . 3~ er.n 288;18 171.M 2~6 . 11
- Establishment expenses 12.76 12.42 19.48 38.38 48.36 56.78
- Claims and other operating expenses of Life
Insurance Business - Policyholder's funds 7,999.96 6,205.09 7,217.42 17,901.53 17,618.83 24,449.40
- Changes in Life Insurance contract liabilities and
surplus pending transfer 13,083.53 9,863.29 4,086.97 33,114.03 9,638.48 2,168.61
- Expense of General Insurance Business -
4,700.12 5,093.95 3,523.78 12,849.68 9,871.67 13,934.50
Policyholder's funds
- Other expenses 249.34 195.94 169.10 700.39 710.76 1.066.12
Total Expenses 34,217.04 29,826.58 26,124.14 90,787.84 68.049.97 81 ,348.75
5 Share of profit of Associates (Equitv Method) 1,760.22 1.642.43 1.651 .74 5,003.46 4,128.39 5,746.10
6 Profit before tax 13-4+5\ 6,s10.n 5.906.30 4.600.79 17,533.00 21 .242-32 26.193.25
7 Tax Expense
- Current tax 964.00 774.26 873.52 2,761.02 2,606.34 3,415.75
- Deferred tax 122.54 96.63 (469 .21 ) (46.19) 151 .09 (48.97)
Total Tax expense 1,086.54 870.89 404.31 2,714.83 2,757.43 3,366.78
8 Net Profit After tax (before adjustment for
5,724.23 5,035.41 4,196.48 14,818.17 18,484.89 22,826.47
minoritv interest\ 16-7\
9 Other Comprehensive Income 2,750.25 (1 ,690.95) (937.30) 3,509.95 (257.36' (6,213.42)
10 Total Comorehensive Income (8+9\ 8.474.48 3,344.46 3,259.18 18,328.12 18.227.53 16,613.05
11 Profit Attributable to:
Owners of the Corporation 5,176.76 4,599.68 3,835.38 13,390.04 17,318.37 21,434.57
Non-Controllino Interest 547.47 435.73 361 .10 1 428.13 1.166.52 1 391 .90
12 Other Comprehensive Income attributable to:
Owners of the Corporation 2,657.69 (1 ,615.11) (940.40) 3,313.40 (343.58) (6,374.24)
Non-Controllino Interest 92.56 (75.84) 3.10 196.55 86.22 160.82
13 Total Comprehensive Income attributable to:
Owners of the Corporation 7,834.45 2,984.57 2,894.98 16,703.44 16,974.79 15,060.33
Non-Controllina Interest 640.03 359.89 364.20 1 624.68 1.252.74 1.552.72
Earnings per Share (Face value ~ 2)#
- Basic(~) 28.79 26.03 22.16 75.82 100.37 124.14
- Diluted m - 28.74 25.99 21.95 75.60 99.61 123.19
Paid-up Equity Share Capital [Fac~e&. a'.j; o ~ 360.04 359.16 345.81 360.04 345.81 34641
Reserves excluding Revalual!o., ;"' - - . "'" - , ·~ 1 1 26.13U5
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 -i HDFC
HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED
The disclosure in terms of Ind AS 108 dealing with "Operating Segment" as specified under Section 133 of the Companies Act, 2013
~in Crore
Quarter Quarter Quarter Nine Months Nine Months
Year ended
PARTICULARS ended ended ended ended ended
31-Dec-20 30-Seo-20 31-Dec-19 31-Dec-20 31-Dec-19 31-Mar-20
Reviewed Reviewed Reviewed Reviewed Reviewed Audited
Segment Revenues
- Loans 11,891.72 11 ,914.38 20,475.59 37,005.52 48,224.88 60,396.80
- Life Insurance 21,676.23 16,603.93 11,606.97 52,829.85 28,371 .15 28,165.41
- General Insurance 5,204.75 5,352.71 3,536.15 13,766.45 10,395.27 14,793.45
- Asset Management 480.68 493.55 578.11 1,429.06 1,710.62 2,153.95
- Others 178.60 141 .29 136.01 382.71 698.28 838.92
Total Segment Revenues 39,431.98 34,505.86 36,332.83 1,05,413.59 89.400.20 1,06,348.53
- Unallocated Revenues 117.56 63.26 51 .91 259.27 111.54 130.31
- Inter-segment . (281.95) (478.67) (7 ,311.55) (2,355.48' (4,347.84 (4.682.94)
Total Revenues 39,267.59 34,090.45 29.073.19 1.03,317.38 85.163.90 1.01.795.90
Segment Results
- Loans 3,801.07 3,581.37 2,817.26 11,039.09 18,029.00 20,752 .37
- Life Insurance 501.73 439.92 345.86 1,565.69 1,057.32 1,283.42
- General Insurance 429.50 218.57 154.68 768.76 416.55 691 .95
- Asset Management 339.44 317.31 473.10 973.37 1,367.48 1,683.47
-Others 32.41 12.99 (48.59) 5.56 190.94 176.53
Total Segment Results 5,104.15 4,570.16 3,742.31 14,352.47 21.061 .29 24,587 .74
- Unallocated 117.58 63.26 51 .91 259.27 111 .54 130.32
- Share of Profit from Associates 1,760.22 1,642.43 1,651 .74 5,003.46 4,128.39 5,746.10
• Inter-segment (171.16) (3G9.55' (84!.i.17' (2 082.20) (4 O!itl.90) (4,270.91)
Profit before Tax 6,810.77 5.906.30 4,600.79 17,533.00 21.242.32 26.193 .25
Segment Assets
- Loan;, S,43,0SO.OS !:i,23,0!:i9.94 4,00,04!i.92 5,43,050.85 4,80,04!i.92 !l,07,040.08
- Life Insurance 1,80,770.83 1,63,624.42 1,45,249.46 1,80,770.83 1,45,249.46 1,39,676.67
- General Insurance 25,450.17 24,569.41 17,961.09 25,450.17 17,961.09 23,271 .49
- Asset Management 5,464.38 5,093.84 4,938.35 5,464.38 4,938.35 4 ,830.77
- Others 688.64 655.92 947.25 688.64 947.25 880.95
Total Segment Assets 7,55,424.67 7,17,603.53 6,55,742.07 7 ,55,424.67 6,55,742.07 6,75,705.96
Unallocated
- Banking 53,863.69 51,859 .71 47,155.52 53,863.69 47,155.52 48,712.74
- Others 4,650.90 4,984.09 4,561.50 4,650.90 4.561 .50 5.396.23
Total Assets 8, 13,939.26 7,74.447.33 7.07,459.09 8,13,939.26 7.07.459.09 7.29.814.93
Segment Liabilities
- Loans 4,58,947 .28 4,45,935.53 4,18,084 .72 4,58,947.28 4,18,084.72 4,43,634.85
- Life Insurance 1,72,750.38 1,56, 134.65 1,38,840.38 1,72,750.38 1,38,840.38 1,33,068.82
- General Insurance 19,905.14 19,282.06 15,535.27 19,905.14 15,535.27 18,555.20
- Asset Management 271.79 244.00 292.25 271.79 292.25 277.49
- Others 178.30 162.31 145.52 178.30 145.52 149.78
Total Seament Liabilities 6,52,052.89 6.21 .758.55 5.72.898.14 6,52,052.89 5,72,898.14 5,95 ,686.14
Unallocated
- Others 497.02 464.61 195.14 497.02 195.14 292.31
Total Liabilities 6,52,549.91 6,22,223.16 5,73.093.28 6,52,549.91 5.73.093.28 5.95.978.45
Capital Employed
- Loans 84,103.37 77,724.41 68,561 .20 84,103.37 68,561 .20 63,411 .23
- Life Insurance 8,020.45 7,489.77 6,409.08 8,020.45 6,409.08 6,607.85
- General Insurance 5,545.03 5,287.35 2,425.82 5,545.03 2,425.82 4,716.29
·Asset Management 5,192.59 4,849.84 4,646.10 5,192.59 4,646.10 4 ,553.28
·Others 510.34 493.61 801.73 510.34 801.73 731.17
Total Seament Caoital Emoloved 1,03,371 .78 95.844.98 82.843.93 1,03,371.78 82,843.93 80,019 .82
Unallocated
- Banking 53,863.69 51 ,859.71 47,155 .52 53,863.69 47,155.52 48,712.74
- Others 4,153.88 4,519.48 4,366.36 4,153.88 4,366.36 5,103.92
Total Caoital Employed 1 61 389.35 1,52,224.17 1,34,365.81 1,61,389.35 1,34 .365.81 1.33.836.48
a) The Group identifies primary segments based on the dominant source, nature of risks and returns, the internal organisation and management
structure. The operating segments are the segments for which separate financial information is available and for which operating profit f loss
amounts are evaluated regularly b·y the Chief Operating Decision Maker in deciding how to allocate resources and in assessing performance.
b) Loans segment mainly comprises of Group's financing activities for housing and also includes financing of commercial real estate and others
through the Corporation including education loans through its wholly-owned subsidiary HDFC Credila Financial Services Limited.
c)
d)
e)

Contd .... three

ment Finance Corporation Li

 :. HDFC
HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED
2 The financial results have been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard
34 - Interim Financial Reporting, notified under Section 133 of the Companies Act, 2013 read with Companies (Indian Accounting Standards) Rules,
2015, as amended from time to time, and other accounting principles generally accepted in India.
3 During the quarter, the Corporation has sold 25,48,750 equity shares of HDFC Life Insurance Company Limited (HDFC Life) and complied with the
direction from the RBI to reduce the shareholding in HDFC Life to 50 per cent or below. As a result, a pre tax adjusted gain of~ 149.17 crore has
been recognised, in Other Equity, for the quarter ended December 31, 2020 and the Corporation's equity shareholding in HDFC Life stood at
49.99 per cent.
4 During the quarter ended December 31, 2020, the National Company Law Tribunal has sanctioned the Scheme of Amalgamation for merger of
HDFC ERGO Health Insurance Limited (formerly Apollo Munich Health Insurance Company Limited) (HDFC ERGO Health) with and into HDFC
ERGO General Insurance Company Limited (HDFC ERGO), subsidiaries of the Corporation and Insurance Regulatory and Development Authority
of India (IRDAI) has issued final approval for the merger. Consequently, HDFC ERGO Health has been merged with HDFC ERGO from appointed
date i.e. March 1, 2020. As at the end of this quarter the Corporation's holding in HDFC ERGO, the merged entity is 50.56 per cent. As per the
directions of RBI, the Corporation is required to reduce its shareholding in the merged entity to 50 per cent or below within 6 months post
amalgamation.

5 The Nomination and Remuneration Committee of the Directors of the Corporation at its meeting held on September 4, 2020 had approved grant of
3,83,96,531 stock options representing 3,83,96,531 equity shares of~ 2 each, at a grant price of~ 1,808.75 per equity share (being the market
price as defined in the applicable SEBI Regulations), to its eligible employees and whole-time directors under HDFC Employees Stock Option
Scheme - 2020.

6 During the previous quarter, the Corporation raised additional capital through a Qualified Institutions Placement of 5,68, 18, 181 equity shares at a
price of~ 1,760.00 per share and 1,70,57,400 convertible warrants at an issue price of~ 180.00 per warrant with a right to exchange one warrant
with ono oquity oharo of 'f :l oaoh, any timo boforo tho onpir/ of 36 montho from tho doto of ollotmont, ot on onoroioo prioo of 'f ::!, 166.00 por worront.
Consequent to the issuance, the paid up share capital of the Corporation has increased by ~ 11.36 Crore and other equity has increased by ~
1u,:.u;:s.oz t;rore al'!er cnarging issue related expenses.
7 During the quarter ended December 31, 2020, the Corporation allotted 43,89,970 equity shares of~ 2 each pursuant to exercise of stock options by
certain employees I directors.

8 t.:onsequent to the outbreak ot <..:UVIU-1!:l pandemic, the Indian government had announced lockdown in March :w:w. Subsequently, the lockdown
has been lifted by the government for certain activities in a phased manner outside specified containment zones.
Tho mrtont to whioh tho COVID 10 pondomio will impaot Corporation'o porformonoo will depend on futuro dovolopmonto, which aro uncertain,
including, among other things, any new information concerning the severity of the COVID-19 pandemic and any action to contain its spread or
mitigate its impact whether government mandated or elected by us.
In accordance with the RBI guidelines relating to COVID-19 Regulatory Package dated March 27, 2020, April 17, 2020 and May 23, 2020, the
Corporation had offered moratorium on the payment of installments falling due between March 1, 2020 and August 31, 2020 ('moratorium period')
to eligible borrowers. In respect of accounts where moratorium benefit was granted, the staging of those accounts as at September 30, 2020 is
based on the days past due status considering the benefit of moratorium period in accordance with the COVID-19 Regulatory Package announced
by the RBI vide aforesaid notifications.
9 In view of the Supreme Court interim order dated September 3, 2020 in public interest litigation (PIL) by Gajendra Sharma vs. Union of India &
ANR, no additional borrower accounts under moratorium granted category have been classified as Non Performing Asset (NPA) which were not
declared as NPA till August 31, 2020. However, the Corporation has classified such accounts as stage 3 and provisioned accordingly in the
Statement of Profit & Loss for the ~uarter and nine months ended December 31, 2020 and quarter ended September 30, 2020.
10 The Government of India, Ministry of Finance, vide its notification dated October 23, 2020, had announced COVID-19 Relief Scheme for grant of ex-
gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts (Scheme), as
per the eligibility criteria and other aspects specified therein and irrespective of whether the moratorium was availed or not. During the quarter, the
Corporation has implemented the Scheme and credited the accounts of or remitted amounts to the eligible borrowers as per the Scheme.

11 During the nine months ended December 31, 2019, GRUH Finance Ltd, a subsidiary company subsquently diluted to an associate company was
amalgamated with Bandhan Bank Limited, which resulted in pre tax adjusted gain of Rs. 9,799.10 crore in the Statement of Profit & Loss.

12 Figures for the previous period have been regrouped wherever necessary, in order to make them comparable.

The above results for the quarter and nine months ended December 31, 2020 were reviewed by the Audit and Governance Committee of
Directors and subsequently approved by the Board of Directors at its meeting held on February 2, 2021, in terms of Regulation 33 of the
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The above results for the quarter and nine months ended December 31, 2020 have been subjected to a limited review by the Auditors of
the Corporation.

Place: Mumbai
Date: February 2, 2021

Housing Development Finance Corporation Limited

 BS R & Co. LLP
Chartered Accountants
14th Floor, Central B Wing and North C Wing , Telephone: +91 22 6257 1ODO
Nesco IT Parl< 4, Nesco Center, Fax: +91 22 6257 1010
W.:.3t.:.rn Cxpr<.33 I lighwoy,
Goregaon (East), Mumbai - 400 063

Limited review report on unaudited quarterly standalone financial results

and year-to-date standalone financial results of Housing Development
Finance Corporation Limited under Regulation 33 of the Securities and
Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015

To the Board of Directors of

Housing Development Finance Corporation Limited
I. We have reviewed the accompanying statement of unaudited standalone financial results
of Housing Development Finance Corporation Limited (the 'Corporation') for the quarter
ended 3 I December 2020 and year to date results for the period from 1 April 2020 to
3 I December 2020 (the 'Statement').

2. This Statement, which is the responsibility of the Corporation's management and approved by the
Board of Directors, has been prepared in accordance with the recognition and measurement
principles laid down in Indian Accounting Standard 34 "Interim Financial Reporting" ('Ind AS
34'), prescribed under Section 133 of the Companies Act, 2013, and other accounting principles
generally accepted in India and in compliance with Regulation 33 of the Securities and Exchange
Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended
(the 'Listing Regulations'). Our responsibility is to issue a report on the Statement based on our
review.

3. We conducted our review of the Statement in accordance with the Standard on Review
Engagements (SRE) 2410 "Review of Interim Financial Information Performed by the
Independent Auditor of the Entity" issued by the Institute of Chartered Accountants of India. This
standard requires that we plan and perform the review to obtain moderate assurance as to whether
the Statement is free of material misstatement. A review is limited primarily to inquiries of
corporation personnel and analytical procedures applied to financial data and thus provides less
assurance than an audit. We have not performed an audit and accordingly, we do not express an
audit opinion.

4. Based on our review conducted as above, nothing has come to our attention that causes us to
believe that the accompanying Statement, prepared in accordance with applicable accounting
standards and other recognised accounting practices and policies has not disclosed the information
required to be disclosed in terms of Regulation 33 of the Listing Regulations including the manner
in which it is to be disclosed, or that it contains any material misstatement.

Registered Office:

e SR & Co. (a partnEJrsh1p i1rm w;rh Fleg1strat1on No_ BA61223) conver:ed into 8 SR & Co . LLP 14th F!oor, Cermai 8 \Ning end Nl1rth C Weng, Nesco IT PP.rk 4, Nesco
{1:1 l m;ited I :rJbilrrv Partnersh:p wi;h Ll_ P Reg1..,.trat:on No, AAB-8181) with ei"fect from Ooober 14, 2013 Center, Weslerr. Expre:.s Highvvay, Gcregaon !East) , Mun1b;ii ·400063
BS R & Co. LLP

Limited review report on unaudited quarterly standalone financial

results and year-to-date standalone financial results of Housing
Development Finance Corporation Limited under Regulation 33 of the
Securities and Exchange Board of India (Listing Obligations a:nd
Disclosure Requirements) Regulations, 2015 (Continued)
5. As described in Note 7 to the Statement, in respect of accounts where moratorium benefit was
granted, the staging of those accounts at 31 December 2020 is based on the days past due status
considering the benefit of moratorium period in accordance with the Covid-19 Regulatory
Package announced by the Reserve Bank of India vide notifications dated 27 March 2020,
17 April 2020 and 23 May 2020.

Further, the extent to which the Covid-19 pandemic will impact the Corporation's financial
performance is dependent on future developments, which are uncertain.

Our review report is not modified in respect of these matters.

For B SR & Co. LLP

Chartered Accountants
Firm's Registration No: 101248W/W-100022

Sagar Lakhani
Partner
Mumbai Membership No: 111855
2 February 2021 UDIN: 21111855AAAAAQ3612
 BS R & Co. LLP
Chartered Accountants
14th Floor, Central B Wing and North C Wing, Telephone: +91 22 6257 1ooo
Nesco IT Park 4, Nesco Center, Fax: +91 22 6257 101 O
Western Express Highway,
Goregaon (East), Mumbai - 400 063

Limited Review Report on Unaudited Consolidated Financial Results pursuant

to Regulation 33 of the Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015

To the Board of Directors of

Housing Development Finance Corporation Limited

I. We have reviewed the accom11anyini: ~tatement of unaudited 1;ont>olidatc<.l 1iu;mi,:ial n;sulls of

Hom:ing Devdopmi:-nt Fimmi:i:- Corporntion l imitl"<l (hl"rPin;rftPT rPfPrrPil t() :!'> thP 'P:irPnt' nr
the 'Corporation') and its subsidiaries (the Parent and its subsidiaries together referred to as
the 'Group'), and its share of the net profit after tax and total comprehensive income of its
associates for the quarter ended 31 December 2020 and year to date results for the period from
1 April 2020 to 31 December 2020 (the 'Statement'), being submitted by the Parent pursuant
to the requirements of Regulation 33 of the Securities and Exchange Board oflndia (Listing
Obligations and Disclosure Requirements) Regulations, 2015, as amended (the 'Listing
Regulations').
2. This Statement, which is the responsibility of the Parent's management and approved by the
Parent's Board of Directors, has been prepared in accordance with the recognition and
measurement principles laid down in Indian Accounting Standard 34 "Interim Financial
Reporting" ('Ind AS 34'), prescribed under Section 133 of the Companies Act, 2013, and other
accounting principles generally accepted in India and in compliance with Regulation 33 of the
Listing Regulations. Our responsibility is to express a conclusion on the Statement based on
our review.
3. We conducted our review of the Statement in accordance with the Standard on Review
Engagements (SRE) 2410 "Review of Interim Financial Information Performed by the
Independent Auditor of the Entity", issued by the Institute of Chartered Accountants of India.
A review of interim financial information consists of making inquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in accordance with
Standards on Auditing and consequently does not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in an audit. Accordingly, we
do not express an audit opinion.
We also performed procedures in accordance with the circular issued by the SEBI under
Regulation 33 (8) of the Listing Regulations, to the extent applicable.

Registered Office:
BS R & Co (a partnership firm with Registration No, BA61223) converted Into B s R & Co LLP 14th Floor, Central B Wing and North C Wing, Nesco IT Park 4, Nesco
(a Limited Liability Partnership with LLP Registration No, AAB-8181) with effect from October 14, 2013 Center, Western E;.:press Highway. Goregaon (East). Mumbai - 400063
BS R & Co. LLP

Housing Development Finance Corporation Limited

Limited Review Report on Unaudited Consolidated Financial Results pursuant
to Regulation 33 of the Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015 (Continued)

4. The Statement includes the results of the following entities:

Name of the Company Relationship

Housing Development Finance Corporation Limited Parent
HDFC Life Insurance Company Limited Subsidiary
HDFC ERGO General Insurance Company Limited ('HDFC Ergo') Subsidiary
HDFC ERGO Health Insurance Limited (fonnerly known as Apollo Subsidiary
Munich Health Insurance Company Limited - Merged with HDFC Ergo
with effect from 13 November 2020)
HDFC Asset Management Company Limited Subsidiary
HDFC Credila Financial Services Limited (fonnerly known as HDFC Subsidiary
Credila Financial Services Private Limited)
HDFC Holdings Limited Subsidiary
HDFC Investments Limited Subsidiary
HDFC Trustee Company Limited Subsidiary
HDFC Sales Private Limited Subsidiary
HDFC Venture Capital Limited Subsidiary
HDFC Property Ventures Limited Subsidiary
HDFC Ventures Trustee Company Limited Subsidiary
HDFC Education and Development Services Private Limited Subsidiary
HDFC Capital Advisors Limited Subsidiary
HDFC Investment Trust-II Subsidiary
HDFC Investment Trust Subsidiary
HDFC Pension Management Company Limited Subsidiary of HDFC Life
Insurance Company Limited
HDFC International Life and Re Company Limited Subsidiary of HDFC Life
Insurance Company Limited
Griha Investments Subsidiary of HDFC Holdings
Limited
Griha Pte Limited Subsidiary of HDFC Investments
Limited
HDFC Bank Limited Associate
Good Host Spaces Private Limited Associate
True North Ventures Private. Limited Associate
Magnum Foundations Private Limited Associate of HDFC Property
Ventures Limited
Renaissance Investment Solutions ARC Private Limited Associate
HDFC Life Employees Stock Option Trust Entity controlled by HDFC Life
Insurance Company Limited
 BS R & Co. LLP

Housing Development Finance Corporation Limited

Limited Review Report on Unaudited Consolidated Financial Results pursuant
to Regulation 33 of the Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015 (Continued)

5. Based on our review conducted and procedures performed as stated in paragraph 3 above and
based on the consideration of the review reports of other auditors referred to in paragraph 7
below, nothing has come to our attention that causes us to believe that the accompanying
Statement, prepared in accordance with the recognition and measurement principles laid down
in the aforesaid Indian Accounting Standard and other accounting principles generally
accepted in India, has not disclosed the information required to be disclosed in term!> of
Regulation 33 of the Listing Regulations, including the manner in which it is to be disclosed,
or that it contains any material misstatement.
6. As described in Note 8 to the Statement, in respect of accounts where moratorium benefit was
granted, the staging of those accounts at 31 December 2020 is based on the days past due status
considering the benefit of moratorium period in accordance with the Covid-19 Regulatory
Package announced by the Reserve Bank of India vide notifications dated 27 March 2020,
17 April 2020 and 23 May 2020.
Further, the extent to which the Covid-19 pandemic will impact the Corporations' and 3
subsidiaries' financial performance is dependent on future developments, which are uncertain.
Further, as described by other auditors in their reports relating to a subsidiary and an associate
of the Corporation, the extent to which the Covid-19 pandemic will impact the financial
performance is dependent on further developments, which are highly uncertain.
Further, as described by the other auditor in their report relating to a subsidiary of the
Corporation, as directed by the Insurance Regulatory and Development Authority of India
('IRDAI'), the subsidiary has changed its accounting policy for premium due, from the quarter
ended 31 December 2020. As per such subsidiary's management's assessment, the net impact
on the profit after tax for the nine months ended 31 December 2020 is not material.
Our review report is not modified in respect of the above matters.
7. We did not review the financial results of 11 subsidiaries and an entity controlled by a
subsidiary included in the Statement, whose financial results reflect total revenues of Rs.
26,886 crore and Rs. 66,653 crore, total net profit after tax of Rs. 743 crore and Rs. 1,881 crore
and total comprehensive income of Rs. 932 crore and Rs. 2,280 crore, for the quarter ended 31
December 2020 and for the period from 1 April 2020 to 31 December 2020, respectively, as
considered in the Statement.
The Statement also includes the Group's share of net profit after tax of Rs. 1,770 crore and
Rs. 5,017 crore and total comprehensive income of Rs. 2,004 crore and Rs. 5,151 crore for the
quarter ended 31 December 2020 and for the period from 1 April 2020 to 31 December 2020
respectively, as considered in the Statement, in respect of an associate whose consolidated
financial information have not been reviewed by us.
BS R & Co. LLP

Housing Development Finance Corporation Limited

Limited Review Report on Unaudited Consolidated Financial Results pursuant
to Regulation 33 of the Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015 (Continued)

These financial results have been reviewed by other auditors whose reports have been
furnished to us by the management and our conclusion on the Statement, in so far as it relates
to the amounts and disclosures included in respect of these subsidiaries and an associate, is
based solely on the reports of the other auditors and the procedures performed by us as stated
in paragraph 3 above.

Of the 11 subsidiaries and an entity controlled by a subsidiary referred to above:

(a) in respect of 2 subsidiaries, financial results have been prepared in accordance with
accounting principles generally accepted in their respective country of incorporation and
the Corporation's management has converted these financial results from accounting
principles generally accepted in its country to accounting principles generally accepted
in India. We have reviewed these conversion adjustments made by the Corporation's
management.
(b) in respect of an entity controlled by a subsidiary, the financial results for the quarter
ended 31 December 2020 and for the period from 1 April 2020 to 31 December 2020,
as reflected in their financial results were not reviewed by other auditors. The financial
results of this component reflect total revenues of Rs. 0.02 crore and Rs. 0.05 crore, total
net profit after tax of Rs. 0.01 crore and Rs. 0.03 crore and total comprehensive income
of Rs. 0.01 crore and Rs. 0.03 crore for the quarter ended 31 December 2020 and for the
period from 1 April 2020 to 31 December 2020 respectively. The financial results of this
component are based solely on such financial information I explanation given to the
component auditor and are management certified.
According to the information and explanation given to us by the management, these
financial results referred to in para 7(b) are not material to the Group.
Our review report is not modified in respect of the above matters.
8. The Statement includes financial results of 2 subsidiaries, whose financial results reflect total
revenues of Rs. 25 crore and Rs. 70 crore, total net loss after tax of Rs. 2 crore and Rs. 0.43
crore and total comprehensive loss of Rs. 2 crore and Rs. 0.43 crore, for the quarter ended
31 December 2020 and for the period from 1 April 2020 to 31 December respectively, as
considered in the Statement, which have not been reviewed.
The Statement includes the Group's share of net loss after tax of Rs. 10 crore and Rs. 13 crore
and total comprehensive loss of Rs. 10 crore and Rs. 13 crore for the quarter ended 31
December 2020 and for the period from 1 April 2020 to 31 December 2020, as considered in
the Statement, in respect of 4 associates, based on their financial results which have not been
reviewed.
According to the information and explanation given to us by the management, these financial
results are not material to the Group.
Our review report is not modified in respect of the above matters.
BS R & Co. LLP

Housing Development Finance Corporation Limited

Limited Review Report on Unaudited Consolidated Financial Results pursuant
to Regulation 33 of the Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015 (Continued)

9. Expenses pertaining to Life Insurance Business includes charge for actuarial valuation of
liabilities for life policies in force, in respect of one subsidiary and Expenses pertaining to
General Insurance Business includes the estimate of claims Incurred But Not Reported
('IBNR'), claims Incurred But Not Enough Reported ('IBNER') and Premium Deficiency
Reserve ('PDR') in respect of one General Insurance Subsidiary referred to in this paragraph.
This charge has been determined based on the liabilities duly certified by the actuaries
appointed by !h1: rnp1:etivi: ~ub~ii:li1H'i1~.'i, nnrl in th1~ir n~~pr.r.tivr. opinion, thl'l nmmmptionr. for
such valuations nrc in accordance with the guidelines and norms issued by the lRUAl and the
Institute of Actuaries oflndia in concurrence with the IRDAI. The respective auditors of these
subsidiaries have relied on the appointed actuaries' certificate in this regard in forming their
conclusion on the financial results of the said subsidiaries.

Our review report is not modified in respect of the above matter.

For B S R & Co. LLP

Chartered Accountants
Firm's Registration No: 101248W/W-100022

Sagar Lakhani
Partner
Mumbai Membership No: 111855
2 February 2021 UDIN No: 21111855AAAAAP9090
 Press Release

STANDALONE & CONSOLIDATED FINANCIAL RESULTS FOR THE

NINE MONTHS ENDED DECEMBER 31, 2020

PERFORMANCE HIGHLIGHTS

 26% growth in individual loan disbursements during the quarter ended

December 31, 2020 compared to the corresponding quarter of the previous year

 16% growth in individual loans (after adding back loans sold in the preceding
12 months)

 Spreads at 2.28% for the nine months ended December 31, 2020

 Net Interest Margin at 3.4% for nine months ended December 31, 2020

 Capital Adequacy at 20.9%; Tier 1 Capital at 19.9%.

 Standalone Profit After Tax for the quarter ended December 31, 2020 stood at
₹ 2,926 crore

 Consolidated Profit After Tax attributable to the Corporation for the quarter
ended December 31, 2020 stood at ₹ 5,177 crore

The Board of Directors of Housing Development Finance Corporation Limited (HDFC)

announced its unaudited financial results for the quarter and nine months ended
December 31, 2020 at its meeting held on Tuesday, February 2, 2021 in Mumbai. The
accounts have been subjected to a limited review by the Corporation’s statutory auditors
in line with the regulatory guidelines.
There has been a significant recovery and strong growth in the individual business during
the quarter ended December 31, 2020. On a nine month basis from April 1, 2020 to
December 31, 2020, the impact of the pandemic induced lockdown has to be factored in
and hence the current and previous year’s numbers are not directly comparable.

Further, the profit numbers for the quarter/nine months ended December 31, 2020 are
not comparable with that of the corresponding quarter/period of the previous year. The
merger of GRUH Finance with Bandhan Bank was effective October 17, 2019. As per
IndAS, the Corporation had on derecognition of the investment in GRUH, recorded a fair
value gain of ₹ 9,020 crore through the Statement of Profit and Loss during the quarter
ended December 31, 2019.
The Corporation has endeavoured to provide a like-for-like comparison on certain key
items.

FINANCIAL RESULTS

Financials for the quarter ended December 31, 2020

The reported profit before tax for the quarter ended December 31, 2020 stood at ₹ 3,753
crore compared to ₹ 9,143 crore in the previous year.
After providing ₹ 827 crore for tax, the reported profit after tax stood at ₹ 2,926 crore as
compared to ₹ 8,372 crore in the previous year.
The profit numbers for the quarter ended December 31, 2020 are not directly comparable
with that of the previous year for the following reasons:

 Profit on sale of part stake in HDFC Life and dividend: ₹ 159 crore (PY: ₹ 4 crore)

 Net gain on fair value changes and income on loans assigned: ₹ 641 crore (PY: ₹ 209
crore)

 Fair value gain consequent to the merger of GRUH with Bandhan Bank: Nil (PY: ₹
9,020 crore).

 Charge for employee stock options: ₹ 147 crore (PY: ₹ 3 crore)

 Provisioning (including provisioning for the impact of COVID-19): ₹ 594 crore (PY: ₹
2,995 crore)

To facilitate a like-for-like comparison, after adjusting for the above, the adjusted profit
before tax for the quarter ended December 31, 2020 is ₹ 3,694 crore compared to ₹ 2,908
crore in the previous year, reflecting a growth of 27%.
Financials for the nine months ended December 31, 2020

The profit numbers for the nine months ended December 31, 2020 are not directly
comparable with that of the previous year.

The reported profit before tax for the nine months ended December 31, 2020 stood at
₹ 10,891 crore.

To facilitate a like-for-like comparison, after adjusting profit on sale of investments and

dividend, fair value adjustments and income on loans assigned, fair value gain consequent
to the merger of GRUH with Bandhan Bank, employee stock options charge and provisioning,
the adjusted profit before tax for the nine months ended December 31, 2020 is ₹ 10,050
crore compared to ₹ 8,287 crore in the previous year, reflecting a growth of 21%.
After providing for tax of ₹ 2,044 crore, the reported profit after tax for the nine months
ended December 31, 2020 stood at ₹ 8,847 crore.

Total comprehensive income for the nine months ended December 31, 2020 stood at ₹
11,787 crore.

LENDING OPERATIONS

The demand for home loans continued to remain strong owing to low interest rates, softer
property prices, concessional stamp duty rates in certain states and continued fiscal
incentives on home loans.

The month of December 2020 witnessed the highest ever levels in terms of receipts,
approvals and disbursements.

During the quarter ended December 31, 2020, 91% of individual disbursements entailed
property deals entered over the past four months, re-affirming that housing demand
remains robust and is not pent-up demand.

The COVID-19 induced pandemic has given a strong fillip to various digitalisation
initiatives offered by the Corporation. Despite the easing of lockdown restrictions, the
trend of digital on-boarding of customers continued. Approximately 81% of new employed
borrowers opted for the digital mode.

During the quarter ended December 31, 2020, individual loan disbursements grew at 26%
over the corresponding quarter of the previous year. Growth in home loans was seen in
both, the affordable housing segment as well as high-end properties.
Affordable Housing

During the nine months ended December 31, 2020, 34% of home loans approved in
volume terms and 17% in value terms were to customers from the Economically Weaker
Section (EWS) and Low Income Groups (LIG).

The average home loan to the EWS and LIG segment stood at ₹ 10.7 lac and ₹ 18.5 lac
respectively.

Overall Lending Operations

The average size of individual loans disbursed during the nine months ended December
31, 2020 stood at ₹ 28.5 lac. The average loan size for the quarter ended December 31,
2020 was higher at ₹ 30.0 lac.

As at December 31, 2020, the loans on an assets under management (AUM) basis stood
at ₹ 5,52,167 crore as against ₹ 5,05,401 crore in the previous year.

As at December 31, 2020, individual loans comprise 76% of the Assets Under
Management (AUM).

As at December 31, 2020, the individual loan book on an AUM basis grew 10% and the
non-individual loan book grew by 7%. The growth in the total AUM was 9%.

During the quarter ended December 31, 2020, the Corporation assigned loans amounting
to ₹ 7,076 crore to HDFC Bank compared to ₹ 4,258 crore in the corresponding quarter
of the previous year. Loans sold in the preceding 12 months amounted to ₹ 16,956 crore
(PY: ₹ 21,066 crore).

As at December 31, 2020, the outstanding amount in respect of individual loans sold was
₹ 68,073 crore. HDFC continues to service these loans.

The growth in the individual loan book, after adding back loans sold in the preceding 12
months was 16%. The growth in the total loan book after adding back loans sold was
13%.
Collections, Non-Performing Assets (NPAs) & Provisioning

Overall collection efficiency ratios for individual loans have improved, nearing pre-COVID
levels. The collection efficiency for individual loans in the month of December 2020 stood
at 97.6% compared to 96.3% in the month of September 2020.

As per regulatory norms, the gross non-performing loans as at December 31, 2020 stood
at ₹ 8,012 crore. This is equivalent to 1.67% of the loan portfolio.

The non-performing loans of the individual portfolio stood at 0.79% while that of the non-
individual portfolio stood at 4.00%. The quarter ended December 31, 2020, saw
resolutions in certain non-individual loans.

If the Honourable Supreme Court order of maintaining the classification of accounts as

status quo till further orders were not to be considered, the non-performing loans would
have been higher at 1.91% of the loan portfolio; with individual NPLs at 0.98% and non-
individuals NPLs at 4.35%.

As per regulatory norms, the Corporation is required to carry a total provision of ₹ 6,579
crore. The regulatory provisioning for non-performing loans is determined solely on the
period of default.

The provisions as at December 31, 2020 stood at ₹ 12,342 crore. The provisions carried
as a percentage of the Exposure at Default (EAD) is equivalent to 2.56%.

The Corporation’s Expected Credit Loss charged to the Statement of Profit and Loss for
the nine months ended December 31, 2020 stood at ₹ 2,229 crore.

NET INTEREST INCOME

The net interest income (NII) for the quarter ended December 31, 2020 stood at ₹ 4,068
crore compared to ₹ 3,240 crore in the previous year, representing a growth of 26%.
SPREAD AND MARGIN

The spread on loans over the cost of borrowings for the nine months ended December
31, 2020 was 2.28%. The spread on the individual loan book was 1.94% and on the non-
individual book was 3.14%.

Net Interest Margin for the nine months ended December 31, 2020 stood at 3.4%.

COST INCOME RATIO

For the nine months ended December 31, 2020, cost to income ratio stood at 8.1%
compared to 9.6% in the previous year.

SUBSIDIARY COMPANIES

During the quarter ended December 31, 2020, the Corporation sold 25,48,750 equity
shares of HDFC Life Insurance Company Limited (HDFC Life). The profit on sale of
investments was ₹ 157 crore. The Corporation's equity shareholding in HDFC Life stands
at 49.99%. This has met the Reserve Bank of India’s (RBI) mandate of reducing the
Corporation’s shareholding in HDFC Life to 50% or below by December 16, 2020.

During the quarter ended December 31, 2020, following the receipt of requisite approvals,
HDFC ERGO Health Insurance Limited (formerly Apollo Munich Health Insurance
Company Limited) merged with HDFC ERGO General Insurance Company Limited
(HDFC ERGO). The appointed date of the Scheme of Amalgamation for the merger is
March 1, 2020.
As at December 31, 2020, the Corporation's shareholding in HDFC ERGO, the merged
entity stood at 50.56%. As per RBI directions, the Corporation is required to reduce its
shareholding in the merged entity to 50% or below within 6 months of the merger.

INVESTMENTS

All investments in the Corporation’s subsidiary and associate companies are carried at
cost and not at fair value.
Accordingly, as at December 31, 2020, the unaccounted gains on listed investments in
subsidiary and associate companies amounted to ₹ 2,52,910 crore.

CAPITAL ADEQUACY RATIO

The Corporation’s capital adequacy ratio stood at 20.9%, of which Tier I capital was
19.9% and Tier II capital was 1.0%. As per the regulatory norms, the minimum
requirement for the capital adequacy ratio and Tier I capital is 14% and 10% respectively.

CONSOLIDATED FINANCIAL RESULTS

For the quarter ended December 31, 2020, the consolidated profit after tax attributable to
the Corporation stood at ₹ 5,177 crore as compared to ₹ 3,835 crore in the previous year.

For the nine months ended December 31, 2020, the consolidated profit after tax
attributable to the Corporation stood at ₹13,390 crore compared to ₹ 17,318 crore in the
previous year.

DISTRIBUTION NETWORK

HDFC’s distribution network spans 589 outlets which include 202 offices of HDFC’s
distribution company, HDFC Sales Private Limited (HSPL). HDFC covers additional
locations through its outreach programmes. Distribution channels form an integral part of
the distribution network with home loans being distributed through HSPL, HDFC Bank
Limited and third party direct selling associates. The Corporation also has online digital
platforms for loans and deposits.

To cater to non-resident Indians, HDFC has offices in London, Dubai and Singapore and
service associates in the Middle East.

IMPACT OF COVID-19

In continuation with the former updates detailing the impact of COVID-19 on the business,
all offices of the Corporation are open for business and are following the necessary
hygiene protocols, safety precautions and social distancing requirements. Where
mandated, staff continue to work in office on a rotational basis and in accordance with
extant regulations.
Various schemes and regulatory forbearances have been put in place by the government
and the RBI to facilitate revival of real sector activities and mitigate the impact on
customers.

Though the overall sentiment in the construction finance sector has improved
considerably in the recent period, challenges continue to remain owing to financial stress
in some projects and efforts are on-going to find suitable resolutions.

As at December 31, 2020, ₹ 5,010 crore is being restructured under the RBI’s Resolution
Framework for COVID-19 Related Stress. This is 0.9% of AUM. Of the loans being
restructured, 26% are individual loans and 74% non-individual loans. The largest account
under the resolution framework accounted for 0.5% of AUM.

Cumulative COVID-19 provision as at December 31, 2020 stood at ₹ 959 crore.

The Corporation has gradually unwound its high liquidity levels as seen in the previous
quarter. The average daily balance in liquid funds during the quarter ended December
31, 2020 was ₹ 16,800 crore compared to ₹ 22,500 crore in the previous quarter.

With various liquidity measures taken by the RBI coupled with a less risk averse
environment, the Corporation is maintaining comfortable liquidity levels, whilst also
endeavouring to minimise negative carry.

The Corporation has continued to raise resources from a diversified base.

February 2, 2021