We have jointly audited the Standalone Financial Statements of HDFC Bank Limited (hereinafter referred to as “the Bank”), which
comprise the Standalone Balance Sheet as at 31 March 2026, the Standalone Profit and Loss Account and the Standalone Cash
Flow Statement for the year then ended, and notes to the Standalone Financial Statements, including a summary of significant
accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Financial
Statements give the information required by the Banking Regulation Act, 1949 as well as the Companies Act, 2013 (“the Act”) in
the manner so required for banking companies and give a true and fair view in conformity with the accounting principles generally
accepted in India, of the state of affairs of the Bank as at 31 March 2026, of its profit and its cash flows for the year then ended.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (“the SAs”) specified under Section 143(10) of the Act. Our
responsibilities under those SAs are further described in the Auditor’s Responsibilities for the Audit of the Standalone Financial
Statements section of our report. We are independent of the Bank in accordance with the ethical requirements that are relevant to
our audit of the Standalone Financial Statements in terms of the Code of Ethics issued by the Institute of Chartered Accountants
of India (“the ICAI”) and the relevant provisions of the Act and the Rules thereunder, Banking Regulation Act, 1949 and applicable
circulars, master directions and guidelines issued by the Reserve Bank of India (“the RBI”) from time to time, and we have fulfilled our
other ethical responsibilities in accordance with these requirements. We believe that the audit evidence obtained by us is sufficient
and appropriate to provide a basis for our opinion on the Standalone Financial Statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Standalone
Financial Statements for the year ended 31 March 2026. These matters were addressed in the context of our audit of the Standalone
Financial Statements as a whole and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
We have determined the matters described below to be the key audit matters to be communicated in our report.
Description of Key audit matters
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Key Audit Matter
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How our audit addressed the key audit matter
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Identification of Non-performing Advances (“NPA”), Provisioning of NPA and Contingent Provision: Gross NPA as at 31 March 2026:
' 34,061.19 crore, Provision for NPA as at 31 March 2026: ' 22,891.65 crore (Refer Schedule 17 (C)(3), Schedule 18 note 9) and Contingent
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Provision as at 31 March 2026: ' 15,675.72 crore (Refer Schedule 5)
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The Bank is required to comply with the Master Circular
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Our key audit procedures included the following, among others:
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dated 01 April 2025 issued by the RBI on "Prudential norms
on Income Recognition, Asset Classification and Provisioning
pertaining to Advances", which has since been superseded
by the Master Directions dated 28 November 2025 issued
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U nderstanding the Bank's approach and policy for identification of NPA
and provisioning, systems and controls implemented in this regard
and its compliance with the IRAC norms.
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by the RBI on “Commercial Banks - Income Recognition,
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Evaluating the governance process and controls over computation of
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Asset Classification and Provisioning” and amendments
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provision for NPA to examine and test that the provision determined
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thereto (the “IRAC norms”), which prescribe the guidelines for
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is in accordance with the Board of Directors approved policy and the
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identification of NPA, classification of NPA and the minimum
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IRAC norms.
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provision required for such advances.
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Testing the design and implementation, and operating effectiveness of
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The Bank uses data from its IT systems for identification of
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key internal financial controls on a test check basis over identification
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NPA, classification of NPA and computation of provision for
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of NPA, classification of NPA and computation of provision for NPA
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NPA, that is subject to automated and manual controls.
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in accordance with the IRAC norms and consideration of qualitative
factors including monitoring of credit quality and overdue loan
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The provision for NPA is estimated based on ageing and
classification of NPA, nature of product, value of security and
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accounts.
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other qualitative factors. The provision on NPA is based on
the Bank’s approved policy subject to minimum provisioning
norms prescribed by the RBI.
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I nvolving our IT audit team for testing IT general controls and
application controls over identification of NPA, classification of NPA
and computation of provision for NPA. These have been elaborated
in Key audit matters of Information Technology system and controls
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The Bank also applies judgement for identification of NPA
and determining the provision for NPA considering various
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impacting financial reporting.
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quantitative as well as qualitative factors (including stress and
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On a test check basis, recomputing the days past due, verifying the
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liquidity concerns in certain sectors).
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date of NPA and classification of NPA.
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In addition to provision on NPA, the Bank maintains contingent
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With respect to provisions recognised towards NPA, computing
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provision on advances that are not NPA but has reasons
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provision on a test check basis taking into consideration the value of
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to believe that slippage is possible. The determination of
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security, where applicable, the IRAC norms and the approved policy
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contingent provision is based on quantitative criteria (including
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of the Bank, and comparing our outcome to that prepared by the
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days past due) as well as qualitative risk indicators that involve
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management. Evaluating relevant assumptions, judgements and other
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management estimates and judgements.
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qualitative factors considered by the management.
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Since the identification of NPA and provisioning for NPA
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Assessing the reasonableness of the Bank’s framework for contingent
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involve the management’s estimates and judgement, large
data volumes, complex system logics, manual interventions,
and the application of multiple regulatory requirements and
measurement of contingent provision involves management
estimates and judgement, we have identified this as a key
audit matter.
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provision, including evaluation of quantitative thresholds and
qualitative risk indicators.
Examining management’s rationale for creation of contingent provision,
including understanding of key assumptions, identification of pool of
advances and provision range in terms of the aforesaid framework.
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Uerifying, on a test check basis, the application of the aforesaid
framework to selected advances, recomputing the provisions, and
assessing the completeness and accuracy of the advances identified.
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Key Audit Matter
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How the matter was addressed in our audit
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Information technology (“IT”) system and controls impacting financial reporting
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The IT environment of the Bank is complex and involves a
significant number of independent and interdependent IT
systems used in the operations of the Bank for processing and
recording a large volume of transactions.
As a result, there is a high degree of reliance and dependency
on such IT systems for the financial reporting process of the
Bank.
Appropriate IT general controls and IT application controls are
required to ensure that such IT systems are able to process
the data as required, completely, accurately, and consistently
for reliable financial reporting.
We have identified “IT systems and automated controls”
as a key audit matter because of high level of automation,
significant number of systems being used by Bank and the
relative complexity of the IT architecture.
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Our key audit procedures included the following, among others:
In assessing the controls over the IT systems of the Bank, involving our IT
audit team to obtain an understanding of the IT architecture which includes
IT environment, IT infrastructure and IT systems. Evaluating and testing the
relevant IT general controls over “in-scope” IT systems and IT automated
controls identified as relevant for our audit of the standalone financial
statements and financial reporting process of the Bank. On such “in-scope”
IT systems, testing the key IT general controls with respect to the following
domains:
> P rogram change management, which includes relevant control that
ensures program changes are moved to the production environment
as per defined procedures and relevant segregation of duties.
> Pser access management, which includes control for granting
access rights, new user creation, removal of user rights, periodic
access management, password management and privilege access
to unauthorized personnel.
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P rogram development, which includes controls over existing and
new IT application development, implementation, data migration
and supporting infrastructure, which are relied upon for financial
reporting process.
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1 T operations, which includes job scheduling, monitoring and backup
and recovery.
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E valuating the design and testing the operating effectiveness of
relevant key IT dependencies within the key business process,
which included testing automated controls, interfaces and system
generated reports, as applicable.
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Pesting a combination of compensating controls or remediated
controls and / or performed alternative audit procedures, where
necessary.
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Other Information
The Bank’s management and the Board of Directors are responsible for the other information. The other information comprises the
information included in the Bank’s annual report but does not include the financial statements and auditor’s report thereon. The
annual report is expected to be made available to us after the date of this auditor’s report.
Our opinion on the Standalone Financial Statements does not cover the other information and we will not express any form of
assurance conclusion thereon.
In connection with our audit of the Standalone Financial Statements, our responsibility is to read the other information identified
above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the
Standalone Financial Statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
When we read the annual report, if we conclude that there is a material misstatement therein, we are required to communicate the
matter to those charged with governance and take necessary actions, as applicable under the relevant laws and regulations.
Responsibilities of the Management and Board of Directors for the Standalone Financial Statements
The Bank’s management and the Board of Directors are responsible for the matters stated in Section 134(5) of the Act with respect
to the preparation and presentation of these Standalone Financial Statements that give a true and fair view of the state of affairs,
profit / loss and cash flows of the Bank in accordance with the accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, the provisions of Section 29 of the Banking Regulation Act, 1949
and applicable circulars, master directions and guidelines issued by the RBI from time to time. This responsibility also includes
maintenance of adequate accounting records in accordance with the provisions of the Act, Banking Regulation Act, 1949 and
applicable circulars, master directions and guidelines issued by the RBI from time to time, for safeguarding the assets of the Bank
and for preventing and detecting frauds and other irregularities, the selection and application of appropriate accounting policies,
making judgments and estimates that are reasonable and prudent, and the design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the Standalone Financial Statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
In preparing the Standalone Financial Statements, the management and the Board of Directors are responsible for assessing
the Bank’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the Board of Directors either intends to liquidate the Bank or to cease operations, or has no
realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Bank’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the Standalone Financial Statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect
a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
Standalone Financial Statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout
the audit. We also:
• Identify and assess the risks of material misstatement of the Standalone Financial Statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Bank has
adequate internal financial controls over financial reporting with reference to the Standalone Financial Statements in place
and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the management and the Board of Directors.
• Conclude on the appropriateness of the management and the Board of Directors use of the going concern basis of accounting in
preparation of the Standalone Financial Statements and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Bank’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures
in the Standalone Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause
the Bank to cease to continue as a going concern and
• Evaluate the overall presentation, structure and content of the Standalone Financial Statements, including the disclosures,
and whether the Standalone Financial Statements represent the underlying transactions and events in a manner that achieves
fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance
in the audit of the Standalone Financial Statements of the current year and are therefore the key audit matters. We describe these
matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing
so would reasonably be expected to outweigh the public interest benefits of such communication.
Other Matter
The Standalone Financial Statements of the Bank for the year ended 31 March 2025, were audited jointly by one of the joint auditors
along with predecessor auditor, who vide their report dated 19 April 2025 had expressed an unmodified opinion on those Standalone
Financial Statements.
Report on Other Legal and Regulatory Requirements
1. In our opinion, the Standalone Balance Sheet and the Standalone Profit and Loss account have been drawn up in accordance
with the provisions of Section 29 of the Banking Regulation Act, 1949 and Section 133 of the Act.
2. As required by sub-section (3) of Section 30 of the Banking Regulation Act, 1949, we report that:
(a) We have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary
for the purpose of our audit and have found them to be satisfactory.
(b) The transactions of the Bank which have come to our notice have been within the powers of the Bank.
(c) During the course of our audit, we have visited 51 branches to examine the records maintained at the branches and perform
relevant audit procedures. Since the key operations of the Bank are automated with the key applications integrated to the
core banking systems, the audit is carried out centrally at the Bank’s head office located in Mumbai, as all the necessary
records and data required for the purposes of our audit are available therein. Hence, no returns are being called from the
branch offices of the Bank.
(d) The standalone profit and loss account for the year ended 31 March 2026 shows a true balance of the profits for the period
covered by such account.
3. (A) As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief
were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Bank so far as it appears from our
examination of those books, except for the matters stated in paragraph 3(B)(f) below on reporting under Rule 11(g)
of the Companies (Audit and Auditors) Rules, 2014 (as amended) (“the Rules”).
c) Reporting on the accounts of any branch office of the Bank is not applicable due to centralized banking system. Also
refer paragraph 2(c) above in this regard.
d) The Standalone Balance Sheet, the Standalone Profit and Loss Account, and the Standalone Cash Flow Statement
dealt with by this Report are in agreement with the books of account.
e) In our opinion, the aforesaid Standalone Financial Statements comply with the Accounting Standards specified
under Section 133 of the Act, to the extent they are not inconsistent with the applicable circulars, master directions
and guidelines issued by the RBI from time to time.
f) On the basis of the written representations received from the directors, taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2026 from being appointed as a director in terms of Section
164(2) of the Act.
g) With respect to the maintenance of accounts and other matters connected therewith, reference is made to our
comment in paragraph 3(A)(b) above on reporting under Section 143(3)(b) and paragraph 3(B)(f) below on reporting
under Rule 11(g) of the Rules.
h) With respect to the adequacy of the internal financial controls over financial reporting with reference to the Standalone
Financial Statements of the Bank and the operating effectiveness of such controls, refer to our separate Report in
“Annexure A”.
(B) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Rules, in our
opinion and to the best of our information and according to the explanations given to us:
a) The Bank has disclosed the impact of pending litigations as at 31 March 2026 on its financial position in its Standalone
Financial Statements. Refer Schedule 12(I) and (II), Schedule 17(C)(18) and Schedule 18 note 18.5 and 31(b) to the
Standalone Financial Statements.
b) The Bank has made provision, as required under the applicable law or accounting standards, for material foreseeable
losses, if any, on long-term contracts including derivative contracts. Refer Schedule 17(C)(9) and 17(C)(18), Schedule
18 Note 18.5 and 31(b) to the Standalone Financial Statements.
c) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and
Protection Fund by the Bank during the year ended 31 March 2026.
d) (i) The management has represented that, to the best of its knowledge and belief, other than as disclosed in
the Schedule 18 note 35 to the Standalone Financial Statements, no funds have been advanced or loaned or
invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Bank to or
in any other person(s) or entity(ies), including foreign entities (“Intermediaries”), with the understanding, whether
recorded in writing or otherwise, that the Intermediary shall directly or indirectly lend or invest in other persons
or entities identified in any manner whatsoever by or on behalf of the Bank (“Ultimate Beneficiaries”) or provide
any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(ii) The management has represented that, to the best of its knowledge and belief, other than as disclosed in the
Schedule 18 note 35 to the Standalone Financial Statements, no funds have been received by the Bank from
any person(s) or entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether
recorded in writing or otherwise, that the Bank shall directly or indirectly, lend or invest in other persons or
entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(iii) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances
performed by us, nothing has come to our notice that has caused us to believe that the representations under
sub-clause (i) and (ii) of Rule 11(e), as provided under (i) and (ii) above, contain any material misstatement.
e) The final dividend paid by the Bank during the year, in respect of the same declared for the previous year is in
accordance with section 123 of the Act to the extent it applies to payment of dividend. The interim dividend declared
and paid by the Bank during the year and until the date of this audit report is in accordance with section 123 of the Act.
As stated in schedule 18(2) to the Standalone Financial Statements, the Board of Directors of the Bank have proposed
the final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting.
The dividend declared is in accordance with section 123 of the Act to the extent it applies to declaration of dividend.
f) Based on our examination, which included test checks, the Bank has used accounting softwares for maintaining
its books of account which, along with access management tools, as applicable, have a feature of recording audit
trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the
respective softwares, except that in respect of the accounting software used for maintaining the core banking
system, the feature of recording audit trail (edit log) facility was enabled at the database level to log any direct data
changes from 4 March 2026 (also, refer Schedule 18 note 36 to the Standalone Financial Statements of the Bank).
Further, where the audit trail was enabled and operated for the respective accounting softwares, we did not come
across any instance of audit trail feature being tampered with.
Additionally, where audit trail (edit log) facility was enabled and operated in the previous year, the audit trail has been
preserved by the Bank as per the statutory requirements for record retention.
(C) In our opinion and to the best of our information and according to the explanations given to us, the provisions of
Section 197 of the Act are not applicable to the Bank by virtue of Section 35B(2A) of the Banking Regulation Act,
1949. Accordingly, the reporting under Section 197(16) of the Act regarding payment / provision for managerial
remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with
Schedule V to the Act, is not applicable.
For B S R & Co. LLP For Batliboi & Purohit
Chartered Accountants Chartered Accountants
Firm Registration No.: 101248W/W-100022 Firm Registration No.: 101048W
Sudhir Soni Janak Mehta
Partner Partner
Membership No.: 041870 Membership No.: 116976
UDIN: 26041870IYZEJF2111 UDIN: 26116976MIURTJ9371
Place: Mumbai Place: Mumbai
Date: 18 April 2026 Date: 18 April 2026
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