interim financial statements for the quarter ended

INTERIM FINANCIAL STATEMENTSFOR THE QUARTER ENDED

31st March 2021

Contents

(1 ) Income Statement

(2 ) Statement of Comprehensive Income

(3) Statement of Financial Position

(4) Statement of Changes in Equity

(5) Statement of Cash Flows

(6) Analysis of Financial Instruments by Measurment Basis

(8) Analysis of Loans and Advance and Deposits,Interest Comparision

(10) Selected Performance Indicators

ok

Quarter ended 31st March 2021


Period ended 31st March 2021


Rs "000" Rs "000" Rs "000" Rs "000"

Unaudited Unaudited Unaudited Unaudited

Interest Income 1,724,740 1,951,141 1,724,740 1,951,141

Interest Expenses 929,387 1,209,414 929,387 1,209,414

Net Interest Income 795,352 741,727 795,352 741,727

Fee and Commission Income 115,208 77,764 115,208 77,764

Less : Fee and Commission Expenses - - - -

Net fee and Commission Income 115,208 77,764 115,208 77,764

Net gains/(losses) from trading - - - -

Net fair value gains/(losses) on: - - - -

financial assets at fair value through profit or loss - - -

financial liabilities at fair value through profit or loss - - - -

Net gains/(losses) on derecognition of financial assets: - - - -

at fair value through profit or loss (1,750) (1,750)

at amortised cost - - - -

at fair value through other comprehensive income - - - -

Other Operating Income (net)

Total Operating Income 910,560 817,740 910,560 817,740

Impairement Charges 124,340 91,446 124,340 91,446

Net Operating Income 786,220 726,294 786,220 726,294

Personnel Expenses 347,979 299,095 347,979 299,095

Depreciation and Amortisation 35,144 38,756 35,144 38,756

Other expenses 97,398 81,175 97,398 81,175

Operating Profit/(Loss) before VAT on financial services 305,698 307,268 305,698 307,268

Value Added Tax (VAT) on financial services 80,343 76,489 80,343 76,489

Operating Profit/(Loss) after VAT on financial services 225,355 230,780 225,355 230,780

Shares of Profit of associates and join ventures - - - -

Profit/(Loss) before Tax 225,355 230,780 225,355 230,780

Income tax expenses 81,657 41,786 81,657 41,786Profit/(Loss) for the period 143,698 188,994 143,698 188,994

Profit attriibutable to: - - - -

Equity holders of the parent 143,698 188,994 143,698 188,994

Non- controlling interests - - -

Earning per share on profit

Basic Earnings per Ordinary Share (Rs) 2.22 2.92 2.22 2.92

HDFC Bank of Sri Lanka Income Statement

For the Period ended 31-03-2021

Item

##





Rs "000" Rs "000" Rs "000" Rs "000"

Unaudited Unaudited Unaudited Unaudited

Profit/(Loss) for the period 143,698 188,994 143,698 188,994

-

Items that will be reclassified to income statement -

Exchange differences on translation of foreign operations - - - -

Net gains/(losses) on cash flow hedges - - - -

Net gains/(losses) on investments in debt instruments - - - -

measured at fair value through other comprehensive - - - -

income - - - -

Share of profits of associates and joint ventures - - - -

Debt instruments at fair value through other - - - -

comprehensive income - - - -

Others (specify) - - - -

Less: Tax expense relating to items that will be reclassified - - - -

to income statement - - - -

-

- - - -

Items that will not be reclassfied to income statement

Change in fair value on investments in equity instruments - - - -

designated at fair value through other comprehensive - - - -

income - - - -

Change in fair value attributable to change in the Bank’s - - - -

own credit risk on financial liabilities designated at fair - - - -

value through profit or loss - - - -

Re-measurement of post-employment benefit obligations -

Changes in revaluation surplus - - - -

Share of profits of associates and joint ventures - - - -

Others (specify) - - - -

Less: Tax expense relating to items that will not be - - - -

reclassified to income statement -

- - - -

Other comprehensive income (OCI) for the period net of taxTotal comprehensive income for the period net of tax 143,698 188,994 143,698 188,994

Attributable to

Equity Holders of the Parent 143,698 188,994 143,698 188,994

Non - Controlling Interest - - - - 143,698 188,994 143,698 188,994

For the Period ended 31-03-2021

Item

HDFC Bank of Sri Lanka Statement of Comprehensive Income

ok

31.03.2021 31.12.2020

Rs "000" Rs "000"

Unaudited Unaudited

Assets

Cash and Cash Equivalants 231,394 305,889

Balance with Central Bank -

Placements with banks 6,148,176 9,859,828

Financial assests recognized through Profit or Loss

measured at fair value

designated at fair value -

Financial assets at amortised cost

loans and advances 41,886,513 41,091,504

debt and other instruments 11,939,824 7,546,039

Property, plant and equipment 239,561 223,262

Lease ROUA 368,251 378,257

Investment properties 1,016,500 1,017,000

Goodwill and intangible assets 122,105 127,570

Deferred tax assets 134,763 108,826

Other assets 229,942 177,074

Total Assets 62,317,030 60,835,249

Liabilities

Due to banks 1,515,626 1,914,153

Derivative financial instruments

Financial liabilities at amortised cost

due to depositors 49,473,829 47,947,005

due to other borrowers 1,874,381 1,923,783

Debt securities issued 1,464,977 1,422,976

Lease Liability 342,796 354,833

Retirement benefit obligations 788,751 777,800

Current tax liabilities 483,292 377,859

Deferred tax liabilities 0

Other liabilities 268,249 189,544

Total Liabilities 56,211,901 54,907,954

Capital

AT - 1 Capital

Perpetual Bond 288,618 281,250

Total AT - 1 Capital 288,618 281,250

Equity Capital

Stated capital/Assigned capital 962,093 962,093

Statutory reserve fund 240,110 209,530

OCI reserve (122,976) (125,488)

Retain Earnings 4,330,662 4,254,448

Other Reserves 406,622 345,461

Non-controlling Interest - -

Total Equity Capital 5,816,511 5,646,044

Total shareholders’ equity and AT-1 Capital 6,105,129 5,927,294

Non-controlling interests

Total Liabilities and Equity 62,317,030 60,835,249

0.65 (0.67)

Contingent liabilities and commitments 523,852 380,011

Net Assets value per Ordinary Share (Rs) 89.89 87.25

Memorandum information

Number of employees 630 633

Number of Branches 39 39

Note: Amounts stated are net of impairment and depreciation.

HDFC Bank of Sri Lanka

Statement of Financial Position

As at 31st March 2021

Item

64

Rs (000)

Ordinary Ordinary Assigned OCI

Voting Shares Non Voting Shares Capital Reserve

Balance as at 01/01/2020 962,093 - - 209,602 (77,750) 3,679,558 345,605 5,119,108 5,119,108

Profit/(Loss) for the Period - - - - - 188,994 - 188,994 - 188,994

Other Comprehensive income (net of tax) - - - - - - -

Share issue/increase of Assigned Capital - - - - - - - - -

Bonus issue - - - - - - - - -

Right issue - - - - - - - - -

Transfer to Reserves during the period - - - - -

Dividend paid - - - - - - - - -

Profit transferred to head office - - - - - - - - -

Gain/(loss) on revaluation of Property Plant and Equipment - - - - - - - -

Others - - - - - -

Balance as at 31/03/2020 962,093 - - 209,602 (77,750) 3,868,552 345,605 5,308,102 - 5,308,102

Rs (000)

Ordinary Assigned OCI

Non Voting Shares CapitalReserve

Balance as at 01/01/2021 962,093 240,110 (122,976) 4,186,964 406,622 5,672,813 5,672,813

IFRS 9 Restatements(AFS Debenture Impairment)

Adjustments(Leasing Insurance Receivable)

Prior YearAdjustments(SLFRS 16)

Prior Year Adjustments

Adjusted Balance as at 01/01/2021 962,093 240,110 (122,976) 4,186,964 406,622 5,672,813 5,672,813

Profit/(Loss) for the Period - - - - 143,698 143,698 143,698

Other Comprehensive income (net of tax) - - - - - - -

Share issue/increase of Assigned Capital - - - - - - - - - -

Bonus issue - - - - - - - - -

Right issue - - - - - - - - - -

Transfer to Reserves during the period - - - - - - - - - -

Dividend paid - - - - - - - - -

Profit transferred to head office - - - - - - - - - -

Others - - - - - - - -

Balance as at 31/03/2021 962,093 - - 240,110 (122,976) 4,330,662 406,622 5,816,511 5,816,511.

Total Equity

Total Non-

Controlling

Interest

Total Equity

Other Reserves

Attributable to equity holders of the bank (unaudited)

Total Non-

Controlling

Interest

ItemStated Capital Statutory

Reserve Fund

Retained

Earnings


Statement of Changes in Equity

for the Period ended 31st

March 2021

Attributable to equity holders of the bank (unaudited )

Stated Capital/Assigned capital

Item Statutory

Reserve Fund

Retained

Earnings

Other Reserves

HDFC BANK OF SRI LANKAStatement Of Cash Flows

Rs 000For the Period Ended 31st March 2021

2021 2020

Unaudited Unaudited

Cash Flows From Operating Activities

Interest Receipts 1,527,282 1,476,996

Interest payments (714,553) (672,575)

Net commision Receipts 90,863 53,619

Trading Income - -

Payments to Employee (274,083) (233,216)

VAT,DRL & NBT on Financial Services (* NBT & DRL Last Year Only) (83,847) (90,490)

Receipt from other operating activities 22,961 22,509

Payments on other operating activities (107,754) (93,610)

Operating profit before changes in operating assets 460,869 463,233

(Increase)/Decrease In Operating Assets :

Balances with Central Bank of Sri Lanka

Financial Assets at amotised cost - Loans and Advances (672,992) (561,047)

Other Assets (52,808) (106,642)

(725,800) (667,689)

Increase / ( Decrease ) In Operating Liabilities

Financial Liabilities at amotised cost - due to Depositors 1,371,401 3,214,441

Negotiable certificates of deposits - -

Financial Liabilities at amotised cost - due to Debt Security Holders - -

Financial Liabilities at amotised cost - due to Other Borrowers (470,009) 87,734

Other Liabilities 37,795 1,498

939,186 3,303,673

Net cash from operating activities before income tax 674,255 3,099,217

Income Tax Paid (38,462) (10,067)

Net cash from operating activities 635,793 3,089,149

Cash Flows From Investing Activities

Purchase of property, plant and equipment (29,319) (10,567)

Proceeds from Sale property, Plant and equipment -

Net Cashflows from Investments (680,968) (2,427,074)

Net purchase of intangible assets - -

Net cashflow from acquisition of investments in subsidiaries,associate & joint ventures - -

Dividends received from investments -

Others - -

Net cash from Investing activities (710,288) (2,437,641)

Cash Flows From Financing Activities

Net proceeds from the issue of Ordinary share capital - -

Net proceeds from the issue of Other equity instruments - -

Net proceeds from the issue of Subordinated debt -

Repayment of Subordinated debt - -

Interest paid on subordinated debts - -

Dividends paid to non - controling Interest - -

Dividends paid to shareholders of the parent company - -

Dividends paid to holders of other equity instruments - -

Others - -

Net cash from financing activities

Net increase/(decrease) in cash & cash Equivalents (74,495) 651,508

Cash & cash equivalents at beginning of the period 305,889 421,218

Cash & cash equivalents at the end of the period 231,394 1,072,727

Reconciliation Of Cash and Cash Equivalents

Cash In Hand 151,856 123,597

Cash at Bank 79,539 949,130

231,394 1,072,727

Bank


Analysis of Financial Instruments by Measurment Basis

As at 31st March 2021

In Rs."000" AC FVPL FVOCI OTHER Total

ASSETS

Cash and cash equivalents 231,394 - - - 231,394

Balances with central banks - - - - -

Placements with banks 6,148,176 - - - 6,148,176

Derivative financial instruments - - - -

Loans and advances 41,886,513 - - - 41,886,513

Debt instruments 11,939,824 - - - 11,939,824

Equity instruments - - -

Total financial assets 60,205,908 - - 60,205,908

Other Assets - - - 2,111,122 2,111,122

Total assets 60,205,908 - 2,111,122 62,317,030

In Rupees AC FVPL OTHER Total

LIABILITIES

Due to banks 1,515,626 - - 1,515,626

Derivative financial instruments - - - -

Financial liabilities to Amortise cost

- due to depositors 49,473,829 - - 49,473,829

- due to debt security holders 1,464,977 - - 1,464,977

- due to other borrowers 2,162,999 - - 2,162,999

Total financial liabilities 54,617,431 - - 54,617,431

Other Liabilities - - 1,883,088 1,883,088

Equity - - 5,816,511 5,816,511

Total liabilities & Equities 54,617,431 - 7,699,599 62,317,030 0

AC – Financial assets/liabilities measured at amortised cost

FVPL – Financial assets/liabilities measured at fair value through profit or loss

FVOCI – Financial assets measured at fair value through other comprehensive income

HDFC Bank of Sri Lanka Analysis of Financial Instruments by Measurment BasisAs at 31st December 2020In Rs."000" AC FVPL FVOCI OTHER TotalASSETSCash and cash equivalents 305,889 - - - 305,889Balances with central banks - - - - - Placements with banks 9,859,828 - - - 9,859,828

Derivative financial instruments - - - - - Loans and advances 41,091,504 - - - 41,091,504Debt instruments 7,546,039 - - - 7,546,039Equity instruments - - - Total financial assets 58,803,260 - - 58,803,260Other Assets 2,031,988 2,031,988Total assets 58,803,260 - 2,031,988 60,835,249

In Rupees AC FVPL OTHER Total

LIABILITIESDue to banks 1,914,153 - - 1,914,153Derivative financial instruments - - - - Financial liabilities to Amortise cost - - - - - due to depositors 47,947,005 - - 47,947,005 - due to debt security holders 1,422,976 - - 1,422,976 - due to other borrowers 2,205,033 - - 2,205,033Total financial liabilities 53,489,168 - - 53,489,168Other Liabilities - - 1,700,036 1,700,036

Equity - - 5,646,044 5,646,044Total liabilities & Equities 53,489,168 - 7,346,081 60,835,249 -

HDFC Bank of Sri Lanka Analysis of Loan and Receivables

As at 31st March 2021#REF! #REF!

Product - Wise Gross Loans & Advances

As at As at

In Rs."000" 31.03.2021 31.12.2020

By Products - Domestic Currency

Housing Loans Secured by Primary Mortgage Over Residential Properties 12,449,891 12,504,797

Housing Loans Against EPF. 11,813,429 10,992,439

Housing Loans on Guarantors & Others 7,220,555 7,148,330

Gold Loans 428,705 407,223

Business Loans 3,973,271 4,167,423

Lease Rentals receivables 1,143,495 1,238,067

Hire Purchase 2,715 2,937

Staff Loans 1,665,031 1,613,297

Cash Margin Loans 1,740,013 1,689,399

Interest & Other Receivables 3,050,502 2,900,285

Sub Total 43,487,607 42,664,196 ####### #######

By Products - Foreign Currency

Overdrafts - -

Term Loans - -

Other Loans - -

Sub Total - -

Total 43,487,607 42,664,196

Product -Wise Commitments and Contingencies

By Product-Domestic Currency

Guarantees 6,880 7,623

Bonds

Undrawn credit lines 516,972 372,388

Sub Total 523,852 380,011

By product – Foreign currency

Guarantees - -

Bonds - -

Undrawn credit lines - -

Sub Total - -

Total 523,852 380,011

Stage-wise impairment on loans & advances,commitments and

contingencies As at As at

31.03.2021 31.12.2020

Gross loans and advances, commitments and

contingencies 44,011,459 43,044,207

Less: Accumulated impairment under stage 1 115,405 203,888

Accumulated impairment under stage 2 82,431 114,107

Accumulated impairment under stage 3 1,403,258 1,254,696

Total Impairment 1,601,094 1,572,691

Net value of loans and advances, commitments and

contingencies

(0.01) (0.06)

42,410,365 41,471,515

Movement of impairment during the period 2021 2020

Under Stage 1

Opening balance 01-01 203,888 173,377

Charge/(Write back) to income statement (88,484) 30,512

Write-off during the year - -

Other movements - -

Closing balance 115,405 203,888 -

Under Stage 2

Opening balance 01-01 114,107 136,464

Charge/(Write back) to income statement (31,676) (22,357)

Write-off during the year - -

Other movements - -

Closing balance 82,431 114,107

Under Stage 3

Opening balance 01-01 1,254,696 834,412

Charge/(Write back) to income statement 148,562 440,092

Write-off during the year (19,808)

Other movements - -

Closing balance 1,403,258 1,254,696

Total impairment 1,601,094 1,572,691 28,402 #######

Due to Other Customers - By ProductAs at As at

In Rs."000" 31.03.2021 31.12.2020

By Product - Domestic CurrencyDemand deposit(Current Accounts) - -

Savings deposits 7,793,061 7,445,108

Fixed deposits 41,680,769 40,501,898

Other deposits - -

Sub Total 49,473,829 47,947,005 - #REF!

By Product - Foreign Currency - -

Demand deposits - -

Savings deposits - -

Fixed deposits - -

Other deposits - -

Sub Total - -

Total 49,473,829 47,947,005 #REF!

Debt security interest rate vs Government Security Interest rates

Debenture Type31.03.2021 31.12.2020 31.03.202 31.12.202

Debenture - 10Years- 2015(Fixed Annu. 2025) 12.00 12.00 6.80 6.52

Interest rate %

Gov. security Interest

rate %


Selected Performance Indicators

Item As at 31.03.2021 As at 31.12.2020

Regulatory Capital Adequacy

Common Equity Tire 1 Capital Rs. Mn 4,940 4,974

Tier 1 Capital (CET1+AT1) Rs . Mn 5,190 5,224

Total Capital Base (Tier 1 Capital+Tire 2) , Rs Mn 5,347 5,453

Regulatory Capital Ratios (%)

Common Equity Tire 1 Capital Adequacy Ratio ,as a % of-

(Risk Weighted Assets( Minimum Requirement , 7.0%) 17.83% 17.00%

Tier 1 Capital Adequacy Ratio , as % of Risk Weighted-

Assets ( Minimum Requirement, 8.5%) 18.73% 17.86%

Total Capital Adequacy Ratio , as % of Risk Weighted

Assets ( Minimum Requirement, 12.5%) 19.29% 18.64%Leverage Ratio (Minimum Requirment 3%) 8.87 9.09

Regulatory Liquidity

Statutory Liquid Assets (LKR in Millions) 20,155 17,687

Statutory Liquid Assets Ratio (%) (Minimum Requirement - 20%)

Domestic Banking Unit (%) 41.53 37.20

Off-Shore Banking Unit (%)

Total Stock of High-Quality Liquid Assets (LKR in Millions) 9,006 5,075

Liquidity Coverage Ratio (%) (Minimum Requirement -90% )

Rupee (%) 157.00 138.00

All Currency (%)

Net Stable Funding Ratio (%) - (Minimum Requirement - 90% ) 133.82 151.04

Assets Quality (Quality of Loan Portfolio)

Gross Non-Performing Advances Ratio 31.29% 33.03%

Net-Non performing Advances 27.33% 29.08%

Gross Non -Performing Advance Ratio,Excluding EPF 17.97% 20.22%

Net Non -Performing Advance Ratio Excluding EPF 13.07% 15.02%

Profitability

Interest Margin 5.17% 5.15%

Return on Assets (before Tax) 1.99% 2.19%

Return on Equity 10.03% 10.70%

Debt/Equity 0.88 0.98

Interest Cover 5.61 3.94

Interest Yeild 11.65% 13.35%

Financial Indicators

1st Quarter 31.03.2021

As at 31.12.2020

1 st quarter

31.03.2021

(5 Year

Floating Qtr

debentures)

1 st

quarter

31.03.2021

(5 Year

Fixed Semi

debentures)

1 st quarter

31.03.2021

(10 Year

Fixed Annual

debentures)

Market Price of shares/Debentures during the Quarter

Highest Price Per Share/Debenture 49.80 41.50 - - -

Lowest Price Per Share/Debentures 30.70 32.00 - - -

Last Trading Price Per Share/Debentures 33.40 36.20 - - -

Listed Debenture Information

Quarter ended 31st march 2021 2021 2020

10 Years fixed Annual (12.00 p.a) - -

Notes to the Financial Statement

2. These Financial statements have been prepared in accordance with the Sri Lanka Accounting Standard No 34, 'Interim Financial Reporting' and

other applicable Sri Lanka Accounting Standards

financial statements other than Covid 19 pandemic

Share Price(Rs)

Yeild to Maturity of Last Trade Done(% p. a)

3. No circumstances have arisen since the Statement of Financial Position date which would require adjustment to or disclosure in the interim

1.The Statement of Financial Position as at 31.03.2021, the Income Statement, Statement of Comprehensive Income, the Statement of Cash Flow and the

Statement of Changes in equity for the quarter ended , are drawn up from the unaudited accounts of the bank and provided the information required by the CSE

and the CBSL and where required, provides additional disclosures to comply with LKAS 34, Interim Financial Reporting.

Debenture

Issued 2015

5.There have not been significant changes in the nature of the contingent liabilities that required disclosure

in the interim financial statements for the quarter ended 31st march 2021

6.Shares held by the twenty largest share holders of voting shares as at 31.03.2021

Share Holder Name No of Share %

1. National Housing Development Authority 32,180,000 49.73

2. L O L C Holdings Plc 9,707,740 15.00

3. Thurston Investments Limited 9,155,000 14.15

4. Sampath Bank PLC / Dr.T.Senthilverl 4,893,378 7.56

5. Condominium Management Authority 300,000 0.46

5.Urban Development Authority 300,000 0.46

7. Dr Ruwanpura Rohitha De Silva 295,126 0.46

8.Sampath Bank PLC/MR.Arunasalam Sithampalam 258,054 0.40

9. Finco Holdings (Private) Limited 185,000 0.29

10.The Associated Newspapers of Ceylon Limited 180,000 0.28

11. Mr Dinesh Ajit De Zoysa 170,000 0.26

12.Miss Sudisna Chandani Perera 164,030 0.25

13.Richard Peris Financial Services(PVT) Ltd/M.A.A.Karim 148,074 0.23

14. Mr. Sekasinghe Nawarathna Chandrasekara Wanninayaka

Mudiyanselage Bandara Chandrasekara Kandegedara139,568 0.22

15.Dr.Sena Yaddehige 133,180 0.21

16. Mr. Sithampalam Abishek 128,709 0.20

17. State Engineering Corporation 120,000 0.19

17.Road Development Authority 120,000 0.19

17.National Water supply & Drainage Board 120,000 0.19

20.Ganepola Arachchige Manjula Priya Chandana 110,490 0.17

Total 58,808,349 90.88

* The Public Holding percentage is 35.80% , No of Shares 23,168,429 and No of Shareholders 2,338

7. Minimum Share Holders for compliance

Float-adjusted

Market

Capitalization

Public Holding

Percentage

Number of

public

Shareholder

s Minimum Less Than 2.5 Bn 20% 500

Avalable 0.77 35.80% 2,338

8. Directors' & Chief Executive Officer's holding in shares and Debentures of the Bank at the end of 31.03.2021 are as follows.

Directors' & Chief Executive Officer's Name No of Shares No of Debentures

1.Mrs R.M.R.W. Manchanayake - -

2.Dr. K. D. Gunawardana 1,000 -

3. Dr S N Morais 1,000 -

4. Mr P.A.S, Athula Kumara - -

5. Mr L.E.S. Silva 1,000 -

5. Mr . J.M.D. Ariyarathne 1,000 -

6. Mr. D.M.A.K. Dasanayake - -

7. Mr . M.P.D.U.K.M. Pathirana

8.Mr I.G. J.Palitha (GM/CEO) - -

- -

Total 4,000 -

9. Number of shares representing the entity's stated capital - 64,710,520

CERTIFICATION:

We , the undersigned, being the Chief Executive Officer and Chief financial officer of HDFC Bank of Sri Lanka certify that :-

(1) The above statements have been prepared in compliance with the format and definitions prescribed by the Central Bank of Sri Lanka & Colombo Stock Exchange.

(2) The information contained in these statements have been extracted from the unaudited financial statements of the bank unless indicated as audited.

………………………… ……………………………….

Anura Hettiarachchi I.G. Janaka Palitha

Chief Financial Officer General Manager / CEO

Signed for and on behalf of the Board of Directors, HDFC Bank of Sri Lanka

…………………………………………… …………………………………….

Mrs. R. M. R. W. Manchanayake P.A.S, Athula Kumara

Chairman DirectorDated: 12 /05 / 2021

4. The Financial statements have been prepared in accordance with the accounting policies set out in the Annual Reports for the Year ended 31st Dec 2019.

MINIMUM SHARE HOLDERS FOR COMPLIANCE

OPTION - 5

interim financial statements for the quarter ended

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