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Last Updated : Jul 08, 2020 02:26 PM IST | Source: Moneycontrol.com

HDFC Bank annual report 2019-20: Here are 10 key highlights

HDFC Bank Managing Director Aditya Puri took home a total remuneration of Rs 18.9 crore in the fiscal year 2019-20, according to the latest annual report released by the bank which is around 38% higher than the previous financial year.

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HDFC Bank's Managing Director Aditya Puri is set to retire later this year after serving nearly three decades in the bank. During Puri's years, HDFC Bank has been an outlier in the banking industry with consistent performance on all key areas.

Here's a look at the highlights of bank's performance from the 2019-20 annual report:

Gold loan push


HDFC Bank’s loan against gold jewellery book grew to over Rs 6,200 crore in FY 2019-20 from around Rs 5,900 crore in FY 2018-19, according to the bank’s latest annual report.

In FY 2019-20, HDFC Bank added 150 more branches, taking the total number to 800 through which gold loans are distributed. In FY 2020-21, it plans to make gold loans available in even more branches in the rural areas this year, according to the annual report.

MSME loans

Advances to the micro, small and medium enterprises (MSME) segment as on March 31, 2020 stood at Rs 159,107.93 crore as against Rs 128,976.48 crore a year ago. HDFC Bank’s advances to micro enterprises alone stood at Rs 66,419.74 crore as on March 31, 2020.

Retail Banking business

Domestic Retail deposits grew by 24 percent to Rs 8,79,145 crore from Rs 7,09,085 crore in the preceding year while retail advances rose 14.6 per cent to Rs 494,401 crore from Rs 431,357 crore. Personal loans grew to Rs 1,15,500 crore with about 80 per cent of the loans were to employees of top rated corporates with reasonably high disposable income, the bank said.

Deposit mix

Savings Account Deposits grew by 24.8 percent to Rs 310,377 crore while Current Account Deposits rose by 22.3 percent to Rs 174,248 crore. Time Deposits stood at Rs 662,877 crore, representing an increase of 24.6 percent. CASA Deposits accounted for 42.2 percent of Total Deposits. Advances stood at Rs 993,703 crore, an increase of 21.3 percent.

Branch expansion

HDFC Bank added 313 Banking Outlets during the year, taking the total to 5,416 across 2,803 cities/towns. The share of semi-urban and rural outlets in the network is 52 percent. Also, the bank has 5,379 banking outlets managed by the Common Service Centres. The number of ATMs / Cash Deposit and withdrawal machines increased to 14,901 from 13,489. The total number of customers of the Bank catered to as on March 31, 2020 was over 5.60 crore up from 4.90 crore in the previous year.

Agriculture loans

HDFC Bank’s credit to Agriculture & Allied activities stood at Rs 146,516.75 crore on March 31, 2020, recording nearly 14 percent increase over Rs 128,809.32 crore in the year earlier.

Bad loans

As on March 31, 2020, HDFC Bank’s ratio of Gross Non-Performing Assets (GNPAs) to Gross Advances was 1.26 percent, one of the lowest in the industry among big banks. Net Non Performing Assets (Gross Non-Performing Assets Less Specific Loan Loss provisions) was 0.36 percent of Net Advances.

Top executive salary

HDFC Bank Managing Director Aditya Puri took home a total remuneration of Rs 18.9 crore in the fiscal year 2019-20, according to the annual report released by the bank. This figure is around 38 percent higher than what the bank offered Puri in the previous financial year, which is Rs 13.7 crore.

Kaizad Bharucha, the executive director of HDFC Bank, earned a total of Rs 8.6 crore in FY20 compared with Rs 5.8 crore in FY19, or an increase of 48 percent. Bharucha’s compensation includes Rs 80 lakh of worth of perquisites while it excludes Rs 31.6 crore worth stock options exercised in FY19. In other words, HDFC Bank paid a total of Rs 27.5 crore to two of its top executives in FY19.

Independent Directors salary

Among HDFC Bank’s independent directors, former RBI deputy governor Shyamala Gopinath earned Rs 64 lakh in FY20, which includes Rs 29 lakh of sitting fees. Gopinath earned the highest remuneration among all independent directors. Malay Patel drew the second highest among independent directors at Rs 43.5 lakh, followed by Umesh Chandra Sarangi (Rs 31 lakh), Sanjiv Sachar (Rs 33 lakh), Sandeep Parekh (Rs 31 lakh) and M D Ranganath (Rs 36.5 lakh).

Succession planning

With managing Director, Aditya Puri’s term, is ending in October 2020, on the recommendations of the Search Committee and the NRC, the Board of Directors of the Bank, at its meeting held on April 18, 2020,  finalised the names of three candidates, for the position of Managing Director & Chief Executive Officer of the Bank. The Bank has submitted its application to RBI with the names of the candidates in the order of preference.
First Published on Jul 8, 2020 02:26 pm