HDB HDFC Bank Limited

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16

under the Securities Exchange Act of 1934

For the month of July, 2024

Commission File Number 001-15216

HDFC BANK LIMITED

(Translation of registrant’s name into English)

HDFC Bank House, Senapati Bapat Marg,

Lower Parel, Mumbai. 400 013, India

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒    Form 40-F ☐

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

EXHIBIT INDEX

The following documents (bearing the exhibit number listed below) are furnished herewith and are made a part of this report pursuant to the General Instructions for Form 6-K.

Exhibit No. 99

Description

Disclosure of Annual Report for the FY 2023-24

July 26, 2024

New York Stock Exchange

11, Wall Street,

New York,

NY 10005

USA

Dear Sir/ Madam,

Sub: Submission of annual report for the financial year ended on March 31, 2024

Please find enclosed herewith the annual report of HDFC Bank Limited for the financial year ended on March 31, 2024, as required under the rules of the Securities and Exchange Commission.

Yours faithfully,

For HDFC Bank Limited

Sd/-

Ajay Agarwal

Sr. EVP - Company Secretary & Head - Group Oversight

Exhibit 99

Integrated Annual Report 2023-24 Powering Progress Together

Powering Progress Together Banking, by its very nature has a multiplier effect on the economy. HDFC Bank has been at the forefront of banking in India, through innovation, efficiency and customer-centricity. This has earned us the distinction of being one of the most trusted financial institutions in the country. The Bank focuses on holistic value creation for stakeholders. It plays a critical role in achieving individuals’ financial goals, fostering business growth, making a difference to the lives of people through our social initiatives and contributing to the nation’s overall progress. Our strength lies in identifying promising opportunities and capitalising on them quickly through our execution skills. Our extensive physical and digital footprint enables us to extend world-class banking services to even remote parts of the country. We have consistently grown our balance sheet and profits while maintaining a best-in-class asset quality.

Our Performance Balance Sheet Size (K Cr) Profit After Tax (K Cr) Earnings Per Share (K) 36,17,623 60,812 85.8 46.7% 37.9% 8.2% Deposits (K Cr) Advances (K Cr) Return On Equity (%) 23,79,786 24,84,862 16.1 26.4% 55.2% Dividend Per Share (K) Return on Assets Cost to Income 19.5^ (Average) (%) Ratio (%) 1.98 40.2 ^Proposed Note: The figures for the year ended March 31, 2024 include the operations of erstwhile HDFC Limited which amalgamated with and into HDFC Bank on July 01, 2023 and hence the comparisons with the previous periods have to be looked at in light of the same. y-o-y Online version of the report can be accessed here

What’s Inside Overview About the Report 04 Highlights 06 Home Loan Advantage 08 Re-imagining Value Creation—Power of the Group 10 Introduction to HDFC Bank Our Presence 14 Our Journey 16 Our Performance Chairman’s Message 18 The merger has further strengthened our position as a leading financial conglomerate Atanu Chakraborty Part-time Chairman and Independent Director, HDFC Bank Limited Message from the MD & CEO 20 With our financial discipline, prudent investment in technology and a passionate commitment to customer centricity, I’m pleased to report that your Bank has performed well Sashidhar Jagdishan Managing Director & Chief Executive Officer, HDFC Bank Limited Financial Performance 26 Business Segments 28 Commercial and Rural Banking 30 How We Create Value Our Value Creation Model 32 Stakeholder Engagement 34 Materiality 38 Our Strategy Strategy in Action 50 External Environment 68 Risk Management 74 Business Continuity Management Program, Information & Cyber Security Practices and Data Privacy Measures 82 Responsible Business ESG Strategy Encompassing Sustainable Finance 88 Environment 96 Customer Centricity 120 Future Ready Digital Bank 126 Social—People 138 Social—Community 158 Nation Building 182 Connecting the Capitals 186 Governance 188 Board of Directors 196 Leadership Team 198 10 year Financial Highlights 200 Awards 202 Assurance Statement 203 GRI Index 209 Statutory Reports and Financial Statements Directors’ Report 214 Independent Auditor’s Report for Standalone Financials 280 Balance Sheet 290 Profit and Loss Account 291 Cash Flow Statement 292 Schedules to the Financial Statements 294 Independent Auditor’s Report for Consolidated Financials 394 Consolidated Balance Sheet 416 Consolidated Profit and Loss Account 417 Consolidated Cash Flow Statement 418 Schedules to the Consolidated Statements 420 Statement Pursuant to section 129 487 Certificate on Corporate Governance 489 Certificate Under Sebi Listing Regulations 490 Corporate Governance 492 Business Responsibility and Sustainability Report 527 Shareholder information 584 03

ABOUT THE REPORT

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Our Integrated Reporting Process Our purpose Integrated thinking and delivery on our purpose Our integrated reporting process Short, medium—and Board Integrated Reporting Assurance Senior Management Vision Risks long-term outlook committees (IR) framework model sign-off We exist to help every Identifying Devising our Validating Integrated Indian make better Delivering on Report material strategic integrity of the report money choices, today strategy compilation matters priorities report approval and tomorrow Values Opportunities Financial and Leadership Reporting Board and Senior Board non-financial Team and Senior standards Management review approval targets Management Our Capitals F I M Financial Capital Intellectual Capital Manufactured Capital We maintain robust financial practices, Committed to delivering seamless customer Our manufactured capital encompasses ensuring steady returns for our experiences, we harness technology to our extensive pan-India network of banking shareholders. Our financial resources enhance operational efficiency and gain outlets, corporate offices, ATMs, and other encompass various sources such as competitive advantage. Additionally, our deep touchpoints that facilitate engagement with customer deposits, shareholder equity, expertise, strong systems, processes, and our stakeholders. It also includes our IT retained earnings, and external borrowings, the esteemed reputation of the Group forms infrastructure and security measures, as among others. the foundation of our intellectual capital. well as infrastructure development through CSR projects. Read more on pg. 26 Read more on pg. 126 Read more on pg. 14 H SR N Human Capital Social and Natural Capital Our people are our most valuable assets. Relationship Capital Our natural capital encompasses the Through a culture of collaboration, innovation, Establishing and nurturing trust-based resources we utilise to operate our and inclusivity, we prioritise their holistic relationships with our stakeholders is crucial business and provide our products and development and well-being. This focus for our ongoing success. We recognise our services. This includes energy and water enables us to deliver exceptional service significant role as a group in contributing consumption, waste generation, and the to our customers, ensuring that our people responsibly to the economy and nation-remain at the forefront of our pursuit of environmental impact of our business building. Our comprehensive approach activities on climate and ecosystems. excellence and sustainability. to fostering and sustaining long- term Read more on pg. 138 relationships with customers, trade partners, Read more on pg. 96 merchants, and the community embodies our social and relationship capital. Read more on pg. 158 Our Stakeholders Customers Employees Community Investors Government Suppliers and Regulatory Bodies Integrated Annual Report 2023-24 05

HI G HL I G H T S Delivering All-round Performance Offering tailored solutions to customers, treating employees fairly, actively supporting communities and adhering to regulations are fundamental to our approach. HDFC Bank’s financial strength enables it to fulfill its environment and social responsibility effectively, contributing to a sustainable future in a holistic manner. The merger of HDFC Bank and erstwhile HDFC Limited presents an opportunity to create enhanced value for stakeholders through synergies, operational efficiency improvements and an expanded suite of financial products. C R E AT IN G V A L U E F O R O U R S TA K E H O L D E R S Customers At the core of our business model lies a focus on delivering an enhanced and seamless customer experience. Our clientele includes individuals, corporations, financial institutions, Governments, MSMEs, farmers, wholesalers and traders. We are leveraging our expanded customer base and mortgage product following the merger by providing bespoke financial solutions and services that address their diverse needs. 8,738 Total Branches K24,84,862 crore Total Advances 9.32 crore Total Customers Read more on pg. 120 Employees FY24 was significant as we welcomed employees of erstwhile HDFC Limited post the merger. Our people are the driving force behind our success. We foster an inclusive, merit based work environment that inspires and encourages our employees. We aspire to be the preferred choice for talented professionals. We have been recognised as a Great Place to Work® organisation for three consecutive cycles. 2,13,527 Total employees 66,54,452 Learning Hours in FY24 K420.8 crore Learning and Development Expenditure Read more on pg. 138 06 HDFC Bank Limited

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Community Empowering less privileged communities is a priority for us. Through our CSR initiative, HDFC Bank Parivartan, we seek to drive sustainable and holistic development that can truly make a difference in people’s lives. It focuses on the following five pillars: 1. Rural Development 2. Education 3. Skill Development & Livelihood Enhancement 4. Healthcare & Hygiene 5. Financial Literacy and Inclusion 10.19 crore CSR Beneficiaries 28 States and 8 UTs where CSR projects have been implemented Read more on pg. 158 Investors Our objective is to provide sustainable returns to our shareholders. We ensure transparency in information shared, to empower shareholders to make informed decisions. The merger combines the significant strengths of both entities, enhancing value through expanded scale, diverse product offerings, and operational efficiencies. K60,812.3 crore Profit After Tax (PAT) 16.1% Return On Equity (ROE) 18.8% Capital Adequacy Ratio (CAR) Read more on pg. 26 Government and Regulatory Bodies We collaborate extensively with the Government for furthering financial inclusion. We also facilitate the delivery of social programmes to the intended beneficiaries. Following the merger of erstwhile HDFC Limited with HDFC Bank, the increased net worth facilitates greater credit flow into the economy thereby contributing to national development as well as employment generation. 15,182 Total No. of Business Correspondents (BCs) Integrated Annual Report 2023-24 07

H O M E L O A N A D V A N TA G E Leveraging Synergy The merger of erstwhile HDFC Limited with HDFC Bank represents a milestone in our journey adding mortgages to Drive Growth to the Bank’s suite of products. It further enables us to offer a comprehensive suite of financial products including insurance and mutual funds through our subsidiaries. The integration brings together the customers and mortgage product expertise of the erstwhile HDFC Limited built over 45 years with HDFC Bank’s brand, multiple product offering, distribution, large customer base and expertise in risk-based analytics. This synergy enables us to offer best-in-class home loan offerings to existing and new customers of the Bank. By contributing to various nation building initiatives and employment generating opportunities, the Bank is committed to playing a pivotal role in the economic development of our country. 08 HDFC Bank Limited

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Synergistic Growth The merger delivers substantial benefits for customers, employees, shareholders and other stakeholders. The long duration of the home loan book and sticky nature of the product enables the Bank to foster stronger customer connect enhancing customer retention and enabling growth across diverse product segments catering to various stages of the customer life-cycle. Additionally leveraging erstwhile HDFC Limited’s home loan customer base, HDFC Bank is strategically expanding its cross-selling initiatives, offering a complete bouquet of products across pay, save, invest, borrow, insure, and trade through its advanced digital platforms. Integrated Annual Report 2023-24 09

RE—I M A G I N I NG V A L U E C R E AT I O N— P O W E R O F T H E G R O U P Harnessing HDFC Bank and its subsidiaries are bound together not only through shareholding but also through the ‘HDFC Collective Strength Bank brand’. This shared commitment empowers HDFC Bank and its group entities to uphold the esteemed legacy of trust, ensuring customers receive quality service across the board. S E R V I N G Y O U R F I N A N C I A L N E E D S We exist to assist Indians make better money choices, today and tomorrow HDB Financial Services HDFC Life Insurance HDFC ERGO General 94.6% 50.4% Insurance 50.5% HDFC Asset Management HDFC Securities Company 95.1% 52.6% 10 HDFC Bank Limited

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements HDFC Bank has five key subsidiaries viz., HDB Financial Services Limited (HDBFSL), HDFC Life Insurance Company Limited (HDFC Life), HDFC Asset Management Company Limited (HDFC AMC), HDFC ERGO General Insurance Company Limited (HDFC ERGO) and HDFC Securities Limited (HSL). By leveraging synergies across the group’s ecosystem, we aim to deliver innovative financial solutions that anticipate and meet the evolving needs of this extensive clientele. Our collaborative strategy aims to empower our group in facilitating seamless engagements across various touchpoints, fortifying connections, nurturing deep customer relationships and facilitating cross sell. This advantage is pivotal in navigating the dynamic financial services landscape. In our efforts we are backed by a consolidated employee base of over 3.49 lakh with diverse skillsets, a combined branch network of over 11,600 and various other physical / digital touchpoints. We are committed to fostering progress together by harnessing our collaborative strengths to drive sustainable growth and profitability. HDFC Life and HDFC ERGO prepare their financial results in accordance with Indian GAAP and other subsidiaries do so in accordance with the notified Indian Accounting Standards (‘Ind-AS’). The details of the subsidiaries including its financial performance and key initiatives for FY24 are given below. Key Subsidiaries in Action HDB Financial Services Limited (HDBFSL) HDB Financial Services Limited (HDBFSL), in which the Bank holds a 94.6 per cent stake, is a non-deposit taking NBFC offering a wide range of loans and asset finance products. It is engaged in the business of lending, fee-based products and BPO services. HDBFSL has a diverse range of product offerings (secured and unsecured) to various customer segments. It has continued to focus on diversifying its products and expanding its distribution while augmenting its digital infrastructure and offerings to effectively deliver credit solutions. The company has a strong network of over 1,680 branches spread across 1,144 cities. FY24 Financials Profit After Tax rose by 25.59 per cent to H2,461 crore as on March 31, 2024, compared to H1,959 crore as on March 31, 2023. The Total Loan Book stood at H90,218 crore as on March 31, 2024 compared to H70,031 crore as on March 31, 2023, a growth of 28.8 per cent. The asset quality remained robust, with Gross Non Performing Asset (GNPA) ratio at 1.90 per cent and Net Non Performing Asset (NNPA) ratio at 0.63 per cent as on March 31, 2024. GNPA stood at 2.73 per cent and NNPA at 0.95 per cent for the year ended March 31, 2023. Capital Adequacy Ratio stood at 19.25 per cent as on March 31, 2024. KEY INITIATIVES IN FY24 Customer Service Week: The company launched an initiative called ‘Customer Service Week’. This initiative aims to create awareness among walk-in customers on HDBFSL’s various self-service tools that customers can use to manage their loan account or apply for a new loan; the digital payment options available; the grievance mechanism in place and RBI’s Ombudsman Scheme. Customer feedback is also taken to gauge the quality of service provided and expected bringing in continual improvement. Integrated Annual Report 2023-24 11

RE—I M A G I N I NG V A L U E C R E AT I O N - P O W E R O F T H EG R O U P HDFC Life Insurance Company Limited (HDFC Life) HDFC Life Insurance Company Limited (HDFC Life), in which the Bank holds a 50.4 per cent stake, is a listed, leading, long-term life insurance solutions provider in India. Established in 2000, HDFC Life offers a range of individual and group insurance solutions that meet various customer needs such as protection, pension, savings, investment, annuity and health. HDFC Life has more than 80 products (including individual and group products) and Optional Riders in its portfolio catering to a diverse range of customer needs. FY24 Financials In FY24, HDFC Life known for its innovative products and customer-centric approach has secured more than 6.6 crore lives with an overall claim settlement ratio of 99.7 per cent. HDFC Life continued to deliver consistent all-round performance and be ranked amongst the top three private life insurers in the industry. Total new business premium increased to H29,631 crore. In addition, HDFC Life maintained its leadership position within the group business in FY24, with a private industry market share of 23.9 per cent. Total premium grew to H63,076 crore in FY24 while renewal premium grew to H33,445 crore. HDFC Life with 535 branches across India delivered Profit After Tax of H1,569 crore in the Financial Year 2023-24. KEY INITIATIVES IN FY24 The Financial Year 2023-24 was a landmark year for product launches fuelled by relentless product innovation. The company is committed to delivering products which are relevant and tailored to meet customers’ evolving requirements. HDFC Asset Management Company Limited (HDFC AMC) HDFC Asset Management Company Limited (HDFC AMC), in which the Bank holds a 52.6 per cent stake, is the Investment Manager to HDFC Mutual Fund – one of the largest mutual funds in India – and offers a comprehensive suite of savings and investment products. It caters to the needs of a large and diverse customer base. Incorporated in 1999, it serves a mutual fund customer base of 96 lakh unique investors with a total of 1.66 crore live accounts. The company offers Portfolio Management Services and Alternative Investment Funds to High Net Worth (HNI) individuals, family offices, domestic corporates, trusts, provident funds and domestic and global institutions. 12 HDFC Bank Limited FY24 Financials Total Income for the Financial Year 2023-24 recorded a year-on-year growth of 27 per cent to H3,162.4 crore. Profit After Tax grew by 37 per cent to H1,945.9 crore. KEY INITIATIVES IN FY24 1. Continued to strengthen its distribution network by opening 26 new branches during the year 2. Launched 13 New Fund Offers (NFOs) during the year which included 5 sectoral/ thematic funds, 5 Index funds, 2 ETFs and HDFC Charity Fund for Cancer Cure 3. Inaugurated subsidiary’s (HDFC AMC International (IFSC) Limited) office in GIFT City 4. Became signatory to the United Nations Principles for Responsible Investment (UNPRI)

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements HDFC ERGO General Insurance Company Limited (HDFC ERGO) HDFC ERGO General Insurance Company Limited (HDFC ERGO), in which the Bank holds a 50.5 per cent stake, offers a complete range of general insurance products. It offers a comprehensive bouquet of general insurance products—ranging from Motor, Health, Travel, Home, Personal Accident and Cyber Insurance for its Retail Customers to products like Property, Marine and Liability Insurance to its SME & Corporate customers to Crop and Cattle Insurance for Rural Customers. FY24 Financials In FY24, HDFC ERGO registered a 11 per cent growth in premiums, ending the year with a 6.4 per cent market share and a 9.9 per cent market share in the private sector. HDFC ERGO is the fifth largest general insurance company in the country and the third largest in the private sector. Profit After Tax for the year ended March 31, 2024 was H437.67 crore as compared to H652.66 crore in the previous year, as the company undertook a strengthening of its claim reserves basis recent industry trends. KEY INITIATIVES IN FY24 1. In FY24, HDFC ERGO undertook various initiatives focusing on elevating customer experience, improving scalability, resilience and data protection. It introduced ‘here’ app, a one-of-a-kind ecosystem that helps customers and non-customers of the company to make informed decisions about their everyday needs such as mobility, healthcare, travel, etc. It was launched in May 2023 and has been well received by users with over 5 million downloads. 2. HDFC ERGO recently partnered with Google Cloud to establish a Center of Excellence for Generative AI to offer hyper-personalised customer experience and innovative insurance solutions. HDFC Securities Limited (HSL) HDFC Securities Limited (HSL), in which the Bank holds a 95.1 per cent stake, is amongst the leading broking firms in India. HSL has been serving a diverse customer base of retail and institutional investors since 2000. It offers over 30 investment vehicles spanning asset classes such as stocks, gold, real estate and debt instruments. FY24 Financials HSL’s Total Income under Indian Accounting Standards for the year ended March 31, 2024 was H2,660.7 crore as against H1,891.6 crore in the previous Financial Year. Net Profit was H950.9 crore for the year ended March 31, 2024 as against H777.2 crore in the previous financial year. The company has a customer base of 53.82 lakh to whom it offers an exhaustive range of investment and protection products. KEY INITIATIVES IN FY24 HSL launched its flat price broking app, HDFC SKY in September 2023. HDFC SKY has a one-price slab of H20 for both intraday and delivery across segments, and zero account opening and maintenance charges for the first year. Integrated Annual Report 2023-24 13

OU R P R E S E N C E Our Extensive HDFC Bank’s investments in its distribution network underscores the significance of these for granular and Distribution sustainable funding into the future. This is evident through the observed geometric progression in deposit mobilisation Network over the tenure of each branch. Moreover, the Bank believes that physical presence will be a key factor in customer engagement, even as digitalisation becomes ubiquitous. Therefore, we envision our branches evolving into experience hubs facilitating deeper customer relationships and enhancing the overall banking experience. Our nationwide distribution network spans metro, urban, semi-urban and rural areas. Through our strategically positioned 8,738 branches, we not only bolster customer service but also broaden accessibility in previously underserved markets. Our overseas branches are tailored specifically to meet the needs of Non-Resident Indian (NRI) customers. Further, the merger strengthens our geographic coverage by integrating HDFC Limited’s footprint with the Bank’s pan India network, ensuring comprehensive service across the country. The Bank’s network encompasses branches, Business Correspondents (BCs), ATMs and Cash Recycler Machines. The physical presence, the digital platforms and innovative products come together to offer seamless banking experiences. The Bank is aligned with the Government’s Digital Banking Units Initiative (DBUs) to extend efficient, secure, paperless banking services to remote areas. We have established four DBUs in Haridwar, Chandigarh, Faridabad, and South 24 Parganas, West Bengal. These units offer a human touch, fostering trust and connectivity within communities. 14 HDFC Bank Limited

Overview Introduction Our PerformanceHow We Create ValueOur StrategyResponsible BusinessStatutory Reports and Financial Statements O U R P A N—I N D I A P R E S E N C E Metro Urban Semi-Urban Rural 2,399 1,758 3,023 1,550 Branches Branches Branches Branches 1 2 0 1 DBUs DBUs DBUs DBUs 1 14 193 268 Other BCs Other BCs Other BCs Other BCs 299 688 2,302 11,417 CSC BC CSC BC CSC BC CSC BC 8,738* + 15,182 = 23,920 Total Branches Total Business Correspondents (BCs) Total Banking Outlets 8,006 5,317 5,854 1,761 20,938 Metro Urban Semi-Urban Rural Total ATMs + Cash Recycler Machines Network *As on March 31, 2024, including 4 overseas branches and 4 DBUs International Presence During the year, HDFC Bank continued to cater to NRI clients and deepen its product and service proposition. The Bank has global footprints by way of representative offices and branches in Bahrain, Hong Kong, the UAE and Kenya. It also has a presence in International Financial Service Centre (IFSC) at GIFT City in Gandhinagar, Gujarat. In addition, two existing representative offices of erstwhile HDFC Limited in London and Singapore have become representative offices of the Bank post the merger. These offices are for providing loan-related services for availing housing loans and purchase of properties in India. The Bank’s product strategy in International Markets is customer-centric and it has products to cater to client needs across asset classes. GIFT City Branch offers products such as trade credits, foreign currency term loans (including external commercial borrowings). It has gradually widened the product offering to cater to the needs of Residents and Non Resident clients and capitalise on the growth in the financial centre. As on March 31, 2024, the Balance Sheet size of International Business was US $ 9.06 billion and the Advances constituted 1.55 per cent of the Bank’s Advances. The total income contributed by Overseas Branches constituted 1.51 per cent of Bank’s Total Income for the year. Driving CSR Initiatives Our extensive national footprint provides us with invaluable insights into diverse regions, including semi-urban and rural areas. We leverage this to drive our sustainable development agenda and empower communities across the country. As of March 31, 2024 the total lives impacted through our CSR initiatives is 10.19* crore (*including both immediate and extended beneficiaries). Integrated Annual Report 2023-24 15

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business OU R J O U R N E Y Financial Statements Major Milestones 1994 2001 2012 2016 2020 2023 • Housing Development Finance • Overseas listing • Launched MobileBanking App • ATMs turned to LDMs (Loan • Ranked India’s most • Launched a revamped PayZapp Corporation (HDFC) Limited Listed on New York Stock in Hindi Dispensing Machines) valuable brand (for the 2.0 payments app that provides received an in-principle approval Exchange (NYSE) • Launched a nationwide sports • Launched SmartUp programme for seventh consecutive year) by customers with a seamless, from the RBI to set up a private • Became the first private bank initiative – Josh Unlimited, Start-Ups BrandZ Report intuitive user experience with sector bank authorised to collect Income Tax for employees • Launch of HDFC Bank Millennia enhanced security features • Incorporated in August 1994 as range of cards HDFC Bank Limited 2003-04 2013 • First ever leadership change • The Bank’s Sustainable (new MD & CEO, Mr. Sashidhar • First bank in India to offer Credit 2017 • HDFC Bank and HDFC Limited 1995 Livelihood Initiative (SLI) Jagdishan takes over) Card in 100+ cities • Introduced EVA chatbot—India’s merged with effect from July • Banking licence received in crosses a milestone— • First-of-its-kind product launch: • Touched 10 Lakh users first AI-based chatbot to provide 1, 2023 creating one of the January 1995 impacting 20 Lakhs household • First corporate office and customer service KGC-Shaurya card for world’s most valued Banks. branch opened 2006 2014 • Launched SmartUp Zones for armed forces This strengthens our position Start-Ups as a leading financial services • Two new cards launched • Sustainability established as a • Launch of contactless, consent- • IPO oversubscribed 55 times conglomerate and completes its exclusively for women on core value of the Bank • Launched EasyEMI on Debit Cards based customer on-boarding via • Listed on BSE and NSE product suite through the addition International Women’s Day • Launched an all-in-one video KYC facility • Created a new Guinness World DigiPOS machine • Deploying mobile ATMs during of home loans. 1997 2008 Record for organising the largest the lockdown single-day blood donation drive 2024 • Maiden dividend announced • Launched first overseas • Became market leader in issuing 2018 • RBI approved appointment commercial branch in Bahrain • Next-gen MobileBanking 2021 1997-98 • Merger of Centurion Bank of Credit Cards in 2013-14 with 55 App launched • Embarked on of Mr. Kaizad Bharucha as Lakh+ Cards Deputy Managing Director and • New logo launched Punjab with HDFC Bank—One of ‘Project Future Ready’ the largest mergers in the Indian Signed MoU with CSCs, Govt of Mr. Bhavesh Zaveri as Executive 1999 banking industry. 2015 India to support financial inclusion • Pledged to become carbon Director w.e.f. April 19, 2023 • Launched first international Debit • Launched its sonic branding i.e. in rural areas neutral by 2031-32 • Appointed Mr. V Srinivasa Rangan Musical Logo (MOGO) to be used as Executive Director w.e.f. Card in India in association with 2010 across multiple touch points 2019 2022 November 23, 2023 Visa International • Launched 40% faster ATMs – first • Began its digital journey of its kind in Asia • Launched PayZapp, India’s first • Voted no.1 in India by customers in • HDFC Bank and • Launched UPI QR code by launching online real- 1-click mobile-pay solution Forbes World’s Best Banks Survey HDFC Ltd. announce interoperable with Central Bank • BSE inks pact with HDFC Bank to transformational merger Digital Currency (CBDC). Among time NetBanking 2011 • Launched 10-second personal give a boost to Start-Up platform • Launched SmartHub Vyapar—the first banks in the country to loan disbursement in the retail • First ever mega merger in Indian • Growing market leadership A one-stop merchant solution complete the integration process. lending space • 1 Million+ units of blood collected banking industry – Times Bank Expanded customer base to App for all banking and via HDFC Bank Parivartan’s Blood • PayZapp 2.0 reached 75 lakh merged with HDFC Bank become market leaders in Auto business solutions Loans, Personal Loans and Concurrent QIP issue and Donation Drive over a period of 12 registrations in FY24 2000 Credit Cards Follow-on offering years, primarily from employees • Educated over 2 lakh citizens on • A Bank with many firsts L9,723 Cr • Opened 5,000th branch safe digital banking practices pan —First Bank to launch Mobile • Marked the start of its 25th year India in FY24 Banking in India—Launched first SMS–based Mobile Banking Integrated Annual Report 2023-24 17

C H A I R M A N ‘ S M E S S A G E Year of Synergy, Resilience and Growth Dear Stakeholders, Greetings! It gives me immense pleasure to present to you the Integrated Annual Report of your Bank for the Financial Year 2023-24. I would like to congratulate my fellow Board members, the entire team of the Bank and erstwhile HDFC Limited for having accomplished one of the most complex mergers in the financial services industry by completing the process in a very seamless, efficient and effective manner. I am grateful for the support of Government of India, the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), Competition Commission of India (CCI), Insurance Regulatory and Development Authority of India (IRDAI), the stock exchanges and other regulatory authorities for providing their approvals and guidance during the entire process. The merger has further strengthened our position as a leading financial conglomerate of India and our Bank is now the custodian of the venerated HDFC brand that was created and nurtured by the late Mr. H T Parekh, Mr. Deepak Parekh and capable and eminent members of his team. 18 HDFC Bank Limited Economy Growing at a Rapid Pace and Showing Great Resilience The Indian economy as well as your Bank have demonstrated resilience in a world characterised by headwinds and uncertainties. The sound policies and timely interventions of RBI have ensured that we were well prepared for the monetary tightening that happened in the developed world after the inflationary pressures manifested themselves across the globe. The Bank has responded to the evolving liquidity scenario and calibrated its response over the past year. The financial year gone by has seen the GDP in India grow at 8.2 per cent while global GDP growth was 3.2 per cent in 2023. We continue to remain the world’s fastest growing major economy, with GDP growth projected at 7.2 per cent in the current financial year. This has come about despite a slowdown in global growth. The GDP growth has been supported by a boost in capital expenditure, particularly in infrastructure development, including roads, highways, railways and housing. Between FY22 and FY24, overall capex growth in the economy stood at 11.0 per cent on an average with government doing the heavy lifting. Private sector investment also showed some signs of resurgence in sectors such as cement, steel, and oil and gas. Growth has also received a fillip through a rise in manufacturing and construction activity. This has been due to a combination of lower input costs, Government support to the Micro, Small and Medium Enterprises (MSME) sector through Emergency Credit Line Guarantee Scheme (ECLGS) and large scale manufacturing through schemes like Production Linked Incentive (PLI). Overall, the past fiscal year has shown strong macroeconomic fundamentals of the country. However, slowdown in household savings has put a strain on liquidity across the economy. Your Bank has been well placed to obtain the benefits of this growth and has actively funded the small and medium enterprises that form the backbone of the economy as well retail consumers, managing well within the constraints of liquidity and elevated costs of incremental funding. Reaping Synergies of the Merger As we complete one year of the merger, I am happy to note that the process of integration has been completed seamlessly and efficiently across all dimensions of the business and customer services and we have put in place robust risk management and compliance functions from a supervisory perspective for the Bank and the subsidiaries, which now cover a substantially large footprint in the financial services domain. The synergies of the merger are being manifested through the combined strengths of the two merged entities, the home loan expertise of erstwhile HDFC Limited and the extensive distribution franchise of HDFC Bank. Today, most of our branches are selling home loans, including those in semi urban and rural locations. As the nation’s growth story unfolds, we stand prepared to reap the benefits through this historic combination.

M E S S A G E F R O M T H E M D & C E O Merger Synergies Playing Out Dear Shareholders, Warm greetings to you all. The year gone by was one of both, continuity and change. Continuity, as India remained the fastest growing major economy in the world; change, as there was a transformational merger between parent, HDFC Limited and HDFC Bank. I feel fortunate to be a part of the Indian economy right now, which is teeming with opportunities. As per the International Monetary Fund (IMF), India will continue to be a driver for global growth in the foreseeable future. Last year, as you’re aware, we concluded the merger of HDFC Limited with the Bank, a momentous event in the organisation’s history. Your Bank worked on fortifying all aspects of the merger, during the nine months of Financial Year 2023-24 spent as a merged entity. The successful conclusion of the merger and seamless integration of the entities have further added to my confidence in the organisation’s resilience and pride in the execution capability of the team at HDFC Bank and HDFC Limited, which is now part of the Bank. With our financial discipline, prudent investment in technology and a passionate commitment to customer Sashidhar Jagdishan centricity, I’m pleased to report Managing Director & Chief Executive Officer that your Bank has performed well HDFC Bank Limited in a year that witnessed such a significant development. 20 HDFC Bank Limited

MESSAGE FROM THE MD & CEO

MESSAGE FROM THE MD & CEO

F I N A NC I A L P E R F O R M A N C E Delivering The Financial Year 2023-24 was the year of the merger. The Balance Sheet size grew by 46.7 per cent in the fiscal, with Consistent and a 26.4 per cent increase in Deposits and a 55.2 per cent growth in Advances. The Bank consolidated its position Profitable Growth as the largest private sector bank by Balance Sheet size in India without compromising its asset quality. This was achieved through the The Bank added over 900 branches adverse impact with a Provision extensive reach across our 8,738 in the Financial Year ended March 31, Coverage Ratio of 74.04 per cent. branches as well as our strong digital 2024. The Core Net Interest Margin We continued to deliver value to footprint. Our Profit After Tax grew by was at 3.53 per cent. shareholders, with an ROE of 37.9 per cent and GNPA stood at We remain well-capitalised which 16.1 per cent. Our Earnings Per Share 1.24 per cent. is reflected in our Capital Adequacy (EPS) increased by 8.2 per cent to The Cost to Income Ratio marginally Ratio of 18.8 per cent. As a H85.8, while dividend per share rose decreased to 40.2 per cent in FY24 responsible bank, we have built by 2.6 per cent to H19.5 in FY24. from 40.4 per cent in FY23. a substantial cushion against any 26 HDFC Bank Limited

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Balance Sheet Size Profit After Tax Earnings Per Share (C CR) (C CR) (C) 36,17,623 60,812 85.8 FY24 36,17,623 FY24 60,812 FY24 85.8 FY23 24,66,081 FY23 44,109 FY23 79.3 FY22 20,68,535 FY22 36,961 FY22 66.8 Deposits Advances Return On Equity (C CR) (C CR) (%) 23,79,786 24,84,862 16.1 FY24 23,79,786 FY24 24,84,862 FY24 16.1 FY23 18,83,395 FY23 16,00,586 FY23 17.4 FY22 15,59,217 FY22 13,68,821 FY22 16.9 Gross NPA Ratio Return on Assets Dividend per Share (%) (AVERAGE) (%) (C) 1.24 1.98 19.5 FY24 1.24 FY24 1.98 FY24 19.5 FY23 1.12 FY23 2.07 FY23 19.0 FY22 1.17 FY22 2.03 FY22 15.5 Cost to Income Ratio Rupee Earned FY24 Rupee Spent FY24 (%) (%) (%) 40.2 9.2 3.5 8.2 2.2 FY24 40.2 1.3 3.0 FY23 40.4 10.3 FY22 36.9 18.6 67.4 52.7 1.3 22.3 Commission, Exchange, Brokerage Tax Other Interest Income Provisions FX & Derivative Income Dividend Income from Investments Transfer to Reserve Others Operating Expense Interest from Advances Interest Expense Integrated Annual Report 2023-24 27

B US IN E S S S E G M E N T Catering to a Diverse Customer Base Wholesale Banking The Wholesale Banking Business of HDFC Bank serves a diverse clientele including Large Corporates, Multinational Corporations, Government, Public Sector Enterprises, Emerging Corporates and Business Banking/SMEs. Offering a wide array of financial products and services such as loans, deposits, payments, collections, tax solutions, trade finance, cash management solutions and corporate cards, the Bank aims to be a one-stop shop for catering to the diverse business needs of customers in this segment. We provide tailored solutions to meet specific customer requirements. With extensive experience in serving the Wholesale Segment, HDFC Bank has earned a strong reputation for delivering quality and reliable services to its customers. Post-merger, the Bank inherited the realty finance business. It has commenced offering Construction Finance facilities to mainly well established borrowers with a strong track record. This business largely covers the rental discounting business as well as construction finance. Retail Banking HDFC Bank’s Retail Business caters to a varied client base which includes Individuals, salaried professionals, small businesses like kirana stores, and Non-Resident Indians (NRIs). The Bank’s objective is to develop and tailor products and services that address the distinct requirements of these customers. Among the offerings are Savings and Current Accounts, various loan options for personal and business needs, Credit and Debit Cards, Digital Wallets, Insurance and Investment Products and Remittance Services. Post the merger, we have expanded our suite to include housing finance across various segments. We combine our physical and digital capabilities with sound expertise to ensure a smooth and convenient customer experience. Treasury The Treasury department is responsible for managing the Bank’s liquidity requirements, as well as handling its investments in securities and other market instruments. It manages the balance sheet’s liquidity and interest rate risks and ensures compliance with statutory reserve requirements. It also manages the treasury needs of customers and earns a fee income generated from transactions customers undertake with your Bank, while managing their foreign exchange and interest rate risks. 28 HDFC Bank Limited

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Our Offerings Loans and Deposits Equity, Venture Capital Fund Working Capital Facilities, Term Raising, Loan Syndication and Lending, Project Finance, Realty Customised Solutions. Finance Business, Supply Chain Other Banking Products Financing, Export Finance, Trade and Services Credit and Wholesale Deposits. Forex & Derivatives, Investment Banking Custodial Services, Cash Capital Finance through Debt/ Management Services, Letters Equity Capital Markets, Mergers of Credit, Guarantees and & Acquisitions, IPOs, Private Correspondent Banking. Loan Products Other Products and Services Personal, Auto, Gold, Two- Credit, Debit and Prepaid Wheeler, Small Ticket Working Cards, Digital Wallets, Wealth Capital, Offshore, Agri and Management Solutions, Kisan Tractor, Healthcare Finance, Gold Card. A distributor of Mutual Commercial Vehicle & Equipment Funds as well as Life, General and Finance, Loan Against Securities, Health Insurance. Digital Loan against Mutual Funds. Accounts and Deposits Mortgages Savings, Current and Corporate Home Loans: Rural Housing Salary Accounts, NRI Deposits, Loans, Loan Against Fixed and Recurring Deposits. Property, Refinance and Home Loans to NRI’s. Services Offered to Customers Key Functions Performed Foreign Exchange and Manages the Asset/Liability of Derivatives’ Transactions, the Bank, maintains a portfolio Solutions on Hedging Strategies, of Government Securities in Trade Solutions—Domestic and line with regulatory norms of Cross Border, Bullion and others. RBI and others, manages the liquidity and interest rate risks on the balance sheet, and is also responsible for meeting statutory Our Edge We are the Preferred Banker of Choice across segments and this is enabled by: • Delivery of best-in-class services through customised solutions, products and through optimum use of technology • Strong product proposition for NRIs through branches in India and overseas • Trusted Home Loan brand in portfolio post merger. Offers huge opportunity for cross sell • Market leader in majority of asset categories with best-in-class portfolio quality • Strong player in retail mortgages. • Pioneer and strong player in the digital loan marketplace • Providing customers with a product suite across asset classes for ‘optimal asset allocation’ depending on clients’ risk profiles and goals • Strong presence in Payments Business • Strong position in Cash Management Services • Open architecture, best-in-class portfolio quality and regular portfolio rebalancing • Robust Risk Management practices across all businesses and activities • Solutions for non-residents hedging needs in Indian markets • Integrated trade and treasury solution for customers • Primary dealer for Government Securities Integrated Annual Report 2023-24 29

C O M M E R C I AL A N D R U R A L B A N K I N G Fuelling Growth Established in 2021, the Bank’s Commercial and Rural Banking (CRB) Group caters to a diverse range of entities in Semi-Urban including Micro, Small and Medium Enterprises (MSMEs), farmers (including the small and marginal ones), healthcare and Rural India finance, equipment finance, commercial transport companies as well as joint liability and self-help groups. The diverse businesses are bound strategic distribution facilitates plays a pivotal role in advancing the together by the common thread easier access to banking facilities financial inclusion agenda. Moreover, of having a significant presence inthus empowering individuals and it is a profitable business, with a Semi Urban and Rural (SURU) India.businesses in these areas.high Return on Assets (ROA) and More than half of our branches areThe CRB Group significantlyeffectively managed Non-Performing located in SURU regions ensuringcontributes to the Bank’s PriorityAssets (NPAs) due to adept comprehensive coverage and Sector Lending (PSL) obligationssourcing channels and prudent risk accessibility to financial serviceswhich has assumed furthermanagement practices. where they are most needed. This significance post the merger. It also 30 HDFC Bank Limited

No Spacing;Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Propelled by the extensive geographical into high-income agricultural products actively developing an ecosystem to reach and profound understanding like dairy and horticulture. The Bank extend reach within the Transportation of local business dynamics, the CRB is present in 2.25 lakh villages to Finance domain supported by a robust Business has displayed healthy growth fund traditional agriculture and allied OEM relationship. since inception. HDFC Bank holds activities. Additionally, CRB is also Digital transformation is pivotal for a leading position in MSME lending, dedicated to supporting Government growth across all segments. The Bank leading in 14 states and securing a schemes like the Agriculture is digitising various aspects of the position among the top 3 in 21 states. Infrastructure Fund (AIF), Farmer CRB Business, including customer A dedicated relationship team Producer Organisations (FPOs), and touchpoints, document collection ensures regular interactions with CRB Pradhan Mantri Formalisation of Micro processes, sales, and service. customers, addressing their banking Food Processing Enterprises (PMFME), The emphasis is on building digital needs comprehensively and cross- while also lending to small and underwriting capabilities through selling various products and services. marginal farmers. effective data management and There is a robust growth strategy in The Bank’s strategic emphasis on API integration. place for all major offerings. expanding into new territories and Overall, the CRB segment offers a Agricultural financing is a key revenue strengthening the sales force has vast market potential, and the Bank stream and the group is geared to led it to capturing a market leading is poised to seize this opportunity seize promising opportunities in Agri- share in the commercial vehicle and through its expansive reach, innovative infrastructure financing and diversifying equipment financing sector. It is also capabilities and digital prowess. P R O D U C T S U I T E Working Capital and Transportation Trade Finance & Investment Banking Term Loan Assets Finance Group FX Advisory • Working Capital Loans • IPOs, Private Equity, • Commercial Vehicle/ • Bank Guarantee/LCs • Term Loans VC Fund Raise, Equipment Finance • International Trade • Supply Loan Syndication • Tractor Finance • Trade Flows Chain Management • Mergers & Acquisitions • Infrastructure Finance & Derivatives • Project Finance • Export Finance Sustainable Livelihood Initiative Agriculture Finance Liabilities (SHG and JLG) • Micro Finance • Crop Loan/ • CASA Accounts Farmer Finance • Fixed Deposits • KCC • Salary Account • Dairy/Cattle Finance Integrated Annual Report 2023-24 31

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Propelled by the extensive geographical reach and profound understanding of local business dynamics, the CRB Business has displayed healthy growth since inception. HDFC Bank holds a leading position in MSME lending, leading in 14 states and securing a position among the top 3 in 21 states. A dedicated relationship team ensures regular interactions with CRB customers, addressing their banking needs into high-income agricultural products like dairy and horticulture. The Bank is present in 2.25 lakh villages to fund traditional agriculture and allied activities. Additionally, CRB is also dedicated to supporting Government schemes like the Agriculture Infrastructure Fund (AIF), Farmer Producer Organisations (FPOs), and Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME), while also lending to small and marginal farmers. The Bank’s strategic emphasis on expanding into new territories and strengthening the sales force has led it to capturing a market leading share in the commercial vehicle and equipment financing sector. It is also comprehensively and cross-selling various products and services. There is a robust growth strategy in place for all major offerings. Agricultural financing is a key revenue stream and the group is geared to seize promising opportunities in Agri-infrastructure financing and diversifying actively developing an ecosystem to extend reach within the Transportation Finance domain supported by a robust OEM relationship. Digital transformation is pivotal for growth across all segments. The Bank is digitising various aspects of the CRB Business, including customer touchpoints, document collection processes, sales, and service. The emphasis is on building digital underwriting capabilities through effective data management and API integration. Overall, the CRB segment offers a vast market potential, and the Bank is poised to seize this opportunity through its expansive reach, innovative capabilities and digital prowess.   P R O D U C T S U I T E Working Capital andTransportationTrade Finance & Investment Banking Term Loan AssetsFinance GroupFX Advisory • Working Capital Loans•IPOs, Private Equity,• Commercial Vehicle/• Bank Guarantee/LCs • Term LoansVC Fund Raise,Equipment Finance• International Trade • SupplyLoan Syndication• Tractor Finance• Trade Flows Chain Management•Mergers & Acquisitions• Infrastructure Finance& Derivatives • Project Finance • Export Finance Sustainable Livelihood InitiativeAgriculture FinanceLiabilities (SHG and JLG) • Micro Finance•Crop Loan/• CASA Accounts Farmer Finance• Fixed Deposits •KCC• Salary Account •Dairy/Cattle Finance Integrated Annual Report 2023-2431 Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements OU R P E R F O R M A N C E A C R O S S C A P I TA L S INPUTS OUTCOMES RISKS & SDGS FINANCIAL Total Deposits • Total Net Revenue – • Return on Equity – 16.1% 1 2 3 4 5 •—H23,79,786.3 crore H1,57,773.5 crore • CASA Ratio – 38.2% • Shareholders fund—H4,40,245.8 crore • Profit after tax – • Cost-to-income ratio – 40.2% 6 7 8 9 10 • Borrowings—H6,62,153.1 crore H60,812.3 crore • Capital Adequacy • Return on Assets – Ratio – 18.8% 1.98% (average) • GNPA—1.24% and Net NPA – 0.33% HUMAN 4 5 • Employee base- 2,13,527 • Diversity, Equity and • New Hires – 89,115 • Recognised as a Great Place • Employee expense Staff Inclusion initiatives • Women in workforce – to Work® organisation for Cost – K22,240.2 crore • Talent Management 26.04% three consecutive cycles. • Learning and • Culture Ecosystem— • Total Learning Hours – Development initiatives Nurture, Care 66,54,452 hours • Total Learning Expenditure – & Collaborate H420.8 crore INTELLECTUAL 1 8 9 • Credit policy and • Implementation framework • Brand Valuation – • 16.5 lakh merchants active underwriting skills on carbon neutrality $ 43.26 billion* on SmartHub Vyapar App • Digital solution and factory, • State-of-the-art data • 79% of our acquisitions • Average customer uptime Enterprise Factory centers are digital increased to 99.96% • Risk management • Adoption of a zero-trust • 73% of servicing • PayZapp 2.0 has reached framework integrating ESG architecture approach to happens digitally the milestone of 75 lakh factors ensure protection against registrations in FY24 cyberattacks. *As per Kantar BrandZ Most Valuable Global Brands 2024 SOCIAL & RELATIONSHIP • Customer base – 9.32 crore • Aligning stakeholders • Bottom Up NPS Score – 71 • CSR Beneficiaries – 1 5 6 7 • CSR Spends on Parivartan to ESG • MSCI ESG Rating—AA 10.19 Crore projects—K945.31 crore • Partnership with • S&P Corporate Sustainability 8 9 10 • No. of CSR implementation Government Assessment -89th Percentile partners – 219 NATURAL 1 5 • Smart IOT based building • Sustainable Finance • Energy saved • Reduction in energy intensity management systems Framework through IoT based BMS over FY23: 3.7% (BMS): 568 branches • Renewable energy implementation: • Cumulative renewable • Installation of Active financing 4.14 million kWh energy capacity financed: Harmonic Filters (AHF): • Trees planted: More than • Green power consumed 10,052 MW 86 locations 38 lakh+ (As on March (solar + green tariff) in • GHG sequestered: 31, 2024) FY24: 3,270 MWh 12,400 + tCO2e MANUFACTURED • New branches opened • ATMs, Corporate • Total Banking Outlets – • Total Fixed Point Business 4 5 in FY24 – 925 of which over office, data warehouse 23,920 Correspondents – 15,182 52% are in SURU Region and others • Total Branches – 8,738 • Total no of Indian Green • 1,211—Net increase in (Inclusive of Overseas Building Council certified ATMs/CRMs in FY24 Branches and DBUs) – of branches – 2026 which 52% are SURU • ATMs+Cash Recycler branches Machines – 20,938 • Cities/towns covered – 4,065 7 Reputation Risk 8 Technology Risk 9 Cyber and Data Risk 10 Risk of spill-over from Subsidiaries Integrated Annual Report 2023-24 33

S TA K EH O L D ER E N G A G E M E N T Building Trust and At HDFC Bank, we engage in open and constructive dialogues with our stakeholders to understand their needs and Understanding expectations. It enables us to identify the issues that are material to creating value, as well as continued delivery of Needs innovative solutions. 34 HDFC Bank Limited

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Stakeholder identification and prioritisation is crucial to meeting our sustainability goals and building trust with our stakeholders. We map our stakeholders based on their level of interest, influence, & impact, prioritise them based on relevance and develop engagement strategies that meet their needs. OUR STAKEHOLDER ENGAGEMENT PROCESS Identify Define Stakeholder Revisit of material Revised potential topics stakeholder groups engagement issues by the materiality map and prioritisation internal stakeholders Purpose of Stakeholder Engagement • Identification of Impact: We engage with stakeholders to understand the actual and potential environmental, social, and governance (ESG) impacts of our operations. This allows us to proactively address any concerns and identify opportunities for positive change. • Developing Solutions: Collaboration with stakeholders is crucial for determining effective responses for preventing and mitigating potential risks. • Respecting Stakeholder Rights: We recognise that stakeholder engagement is not just about achieving our goals, but also about respecting stakeholder rights. To that end, we are committed to upholding these rights and fostering a transparent and inclusive dialogue. By engaging with our stakeholders in a meaningful way, we aim to create shared value for all, while contributing to a more sustainable future. Integrated Annual Report 2023-24 35

S TA K EH O L D ER E N G A G E M E N T Customers Channels of Communication • Online and postal communication • Customer satisfaction surveys • Customer feedback • Regular interaction with customers Type Information, Consultation Frequency Continuous Key Concerns and Expectations • Ease of transacting across channels • Innovative technology applications • Data security • Advanced analytics Response and Mitigation • New products enabled by the Bank’s digitisation strategy • Making personalised recommendations through a Virtual Relationship Manager (VRM) • Information Education Communication (IEC) activities on data security and privacy Value Delivered We empower over 9.32 crore customers with convenient access to financial services through our extensive network of branches and ATMs/CDMs. Our commitment to inclusion extends to making our services accessible for people with disabilities, including ATMs with voice-guided systems and Braille keypads for visually impaired individuals; and ramps for wheelchair users. Additionally, we partner with our borrowers to promote sustainable practices. By encouraging them to measure and disclose environmental, social, and governance (ESG) factors, we nudge them towards making informed decisions and contribute to a positive environmental impact. 36 HDFC Bank Limited Employees Channels of Communication • On-ground and virtual connect with employees • Leadership and manager connect • Engagement and Pulse surveys • Employee connect initiatives like talent hunt, wellness initiatives etc. some of which also include their families Type Information, Consultation, Participation Frequency On-going/Periodic/Annual performance reviews Key Concerns and Expectations • Employee engagement • Culture and employee experience • Employee wellness and safety • Learning and Development (L&D) Response and Mitigation • Maintain high-level of ongoing employee connect and periodically obtain feedback through dipsticks assessments and surveys • Focus on various aspects of employee wellness through the HDFC Bank Cares initiative • Strengthen focus on L&D by offering best-in-class learning resources and leveraging technology for enabling learner-led anytime, anywhere learning Value Delivered We have a diverse workforce of over 2.13 lakh employees across different locations. We are committed towards building an inclusive work environment. Our effort is to assimilate all our employees into ‘HDFC Bank Way’ which is the Bank’s culture framework and thereby deliver a superior employee experience on an ongoing basis. We strive to provide periodic training and updates on ESG to all employees—including the ESG Committee members. Vendors Channels of Communication • Regular meetings • Phone calls and surveys Type Information, Consultation Frequency Continuous Annual performance review Key Concerns and Expectations • Governance and ethical practices • Supplier ESG development and assessment program Response and Mitigation • Ensure timely payment for services • Whistle Blower Policy to ensure good practices • Preparation for BRSR Core reporting Value Delivered We work closely with our vendors to promote the integration of environmental and social concerns, emphasising the importance of adding value beyond just economic gains. Our ESG policy framework ensures that vendors and suppliers comply with labour laws and human rights. We are strengthening our internal systems to enhance our engagement with the suppliers for reporting on BRSR Core KPIs.

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Regulatory Bodies Channels of Communication • Regular meetings • Policy updates and ministry directives • Mandatory filings with key regulators Type Information, Consultation, Participation Frequency Continuous as per requirement Key Concerns and Expectations • Compliance including public disclosure and reasonable assurance of BRSR Core KPIs • Social security schemes • Relevant national mandates Response and Mitigation • Compliance and ethics-oriented culture including formulation of relevant policy frameworks and enforcement thereof • Awareness generation on the mandates by the Government of India • Strengthening of internal processes for BRSR Core reporting Value Delivered We ensure adherence to compliance standards set by the regulatory bodies. Investors & Shareholders Channels of Communication • Quarterly financial reports, Press releases, Results conference call and Investor presentations • Investor conferences, Analyst day, Investor days, Interactions with shareholders and Annual /Extra- Ordinary General Meetings Type Information, Participation Frequency Continuous/Quarterly/Annual Key Concerns and Expectations • Compliance • Governance and ethical practices • Economic performance Response and Mitigation • Policies and demonstration of responsible business conduct Value Delivered We continued to generate value for our 41 lakh+ shareholders. Our Board has approved an ESGRM Policy overseen and governed by a dedicated CSR & ESG Committee and implemented collaboratively by management committees and cross-functional working groups. We disclose our ESG performance in the Integrated Annual Report, ensuring transparency of our sustainable practices. Community Channels of Communication • Planning, meeting, and exercises – Needs assessment/Baselining/ Participatory Rural Appraisal • Focused Group Discussions • Consultative workshops • Awareness sessions and field demonstrations • Periodic progress reviews and monitoring Type Information, Consultation, Participation Frequency Continuous Annual performance review Key Concerns and Expectations • Poverty and drudgery alleviation • Improvement in quality of education • Efficient resource management • Environmental sustainability • Improvement in community hygiene and sanitation Response and Mitigation • Holistic Rural Development Programme Focused educational and skill development programmes • Soil and water conservation • Sustainable livelihood initiative • Financial literacy camps Value Delivered We are focused on bringing improvement in the lives of the community through our continued efforts in alignment with our CSR goals across five thematic areas in a sustainable manner. Parivartan, our CSR brand, has already impacted over 10.19+ crore lives across the country. Integrated Annual Report 2023-24 37

M AT E R I A L I T Y Aligning for HDFC Bank conducts a materiality assessment to discern and assess the issues that hold utmost importance for Impact our business as well as both our internal and external stakeholders. In FY24, we reviewed our materiality assessment to comply with the latest GRI Universal Standards 2021 and integrate the concept of double materiality. 38 HDFC Bank Limited

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements MATERIALITY ASSESSMENT PROCESS We began by reviewing In FY23, we prioritised our material topics by the 16 sustainability topics consolidating stakeholder survey responses. included in our FY23 materiality In the first stage, the responses within each assessment, identified as a group were consolidated to derive the result of internal and external priorities for the respective groups. stakeholder engagements, data Next, the responses across different analysis, regulatory compliance aspects were consolidated by assigning and industry benchmarking. weights to each stakeholder group. The This multi-faceted approach collective scores were then used to prioritise led to the final ranking of the the topics as “Most important”, “Important” 14 sustainability issues into a and “Less important” (considering the reach materiality matrix. of impacts within our value chain, magnitude The final analysis was presented of the impact, and likelihood of occurrence). to the Board of Directors. Identification of Material Topics Materiality Weighted Matrix Sign off Prioritisation Evaluation of Integration potential positive into Risk and negative Management impacts and Framework reprioritisation of results As part of our risk assessment process, Drawing from the results of FY23, we further we have mapped the identified material conducted a thorough analysis for assessing topics against the risk categories which the economic, environmental and social impacts are a part of our risk management (positive and/or negative) associated with each framework. Of the 14 material topics, topic. This was superimposed with the impact 9 have been identified as areas with scores derived from the previous stakeholder opportunity and the remaining 5 consultations across two key dimensions have the potential to pose risk to reflecting impact of the material topics on the our business. organisation (financial materiality) and society (impact materiality). After careful revaluation of 16 material topics, few topics were merged to derive a list 14 topics relevant to the Bank. Integrated Annual Report 2023-24 39

M AT E R I A L I T Y M ATE RI A L I T Y M AT R I X Climate Change Sustainable & society Responsible financing and Economic Performance Compliance planet Sustainable Procurement the Corporate Governance on and Ethics MATERIALITY Systemic Risk Financial Inclusion Customer Privacy impact Community-wellbeing Management and Data Security IMPACT Bank’s Digital Leadership Asset Quality HDFC Customer Satisfaction Employee Practices FINANCIAL MATERIALITY The planet and society’s impact on HDFC Bank’s financial performance 40 HDFC Bank Limited

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Management of Material Topic Sustainable & Responsible Financing GRI topics: 2-22 Capitals Impacted: F SR N Relevant Stakeholders: At HDFC Bank, we recognise the significant influence we hold through our lending and financing activities. Engaging in sustainable and responsible financing practices allows us to invest in projects and industries that have positive environmental and social impacts. This not only aligns our values with the growing demand for ethical and sustainable investments but also enhances the Bank’s reputation as a socially responsible institution. Furthermore, sustainable financing helps us improve our risk management practices by reducing exposure to environmentally and socially risky assets as well as foster long-term relationships with clients who prioritise sustainability. We believe in Responsible Financing and, as a rule, do not fund projects that are part of our Prohibition List owing to the negative impact on the environment, health, and safety. Our goal is to make funding available for environmentally viable projects that help mitigate climate change. To reduce our carbon footprint, we continue to invest in renewable energy and energy efficiency projects and encourage our customers to make “green banking” decisions. Description of Impact (Opportunity, Positive, Actual, Within and Outside the Bank) At HDFC Bank, we have adopted an enhanced and more comprehensive “ESG & Climate Change Assessment” framework, as part of our overall credit assessment for wholesale corporate borrowers—replacing our erstwhile “SEMS Framework”. Further, the Bank has in place a “Sustainable Financing Criteria” Framework (“the Framework”) to enhance our portfolio from a climate and ESG perspective. FY24 Performance 26% of the wholesale loans approved in value terms were subject to enhanced E&S due diligence in line with our ESG Risk Management Framework USD 300 million Maiden International Sustainable Bond raised by the Bank in February 2024 Customers Employees Community Investors Government and Regulatory Bodies Suppliers F Financial I Intellectual M Manufactured H Human SR Social and Relationship N Natural Integrated Annual Report 2023-24 41

M AT E R I A L I T Y Employee Practices GRI topics: 2-7, 401, 402, 403, 404, 405, 406, 407, 408, 409, 410 Capitals Impacted: H Relevant Stakeholders: We believe our people are the cornerstone of our success. We strive to establish a positive working atmosphere that encourages our employees’ active development and engagement. We engage employees through a variety of activities. Over the years, our seminars and contests have attracted many participants. We have several codes and policies in place that apply to all of our employees. The Bank also offers a variety of benefits to its employees. Human capital enhancement requirements are proactively assessed and implemented. Description of Impact (Opportunity, Positive, Actual, Within the Bank) Our dedication to strong Employee Practices creates a ripple effect of positive and tangible benefits. We conduct an annual employee survey to identify improvement areas, leading to initiatives that reduce stress, enhance purpose, and contribute to positive work environment. The Bank is an equal opportunity employer, fostering diversity and inclusion, and offering comprehensive benefits including parental leave, medical care, post-retirement support to all our employees. We offer best-in-class employee training & development – including through our newly launched MPower platform which enables dissemination of proprietary content on diverse topics. Target To achieve gender diversity (% of women) of 27% by FY27 Progress against this target is described in ‘Social -People’ chapter of the report. FY24 Performance Women in Workforce: 26.04% “Recognised as a Great Place to Work® organisation for three consecutive cycles.” Digital Leadership GRI topics: 418 Capitals Impacted: SR Relevant Stakeholders: Digital leadership allows us to innovate, improve efficiency, and enhance customer experience, offering opportunities for growth and competitive advantage in the digital era. We believe in our ability to consolidate the market leadership in digital banking and ensuring the Bank is future-ready through continued investments in technology and talent. Description of Impact (Opportunity, Positive, Potential, Within and Outside the Bank) By developing mobile banking applications and net banking solutions, we have solidified our competitive edge and contributed to the transformation towards a digital and connected economy. Our user-friendly mobile apps and net banking interfaces not only empower customers with 24/7 access but also facilitate accessibility, simplicity, and agility apart from fostering financial inclusion and economic growth for geographically isolated populations and small businesses. Additionally, we are continuously developing newer innovative and digital financial products and services to further solidify our position as a leader in the digital banking landscape. FY24 Performance 97% Share of Digital transactions in Total transactions 79% of our acquisitions are digital Customers Employees Community Investors Government and Regulatory Bodies Suppliers F Financial I Intellectual M Manufactured H Human SR Social and Relationship N Natural 42 HDFC Bank Limited

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Systemic Risk Management GRI topics: 2-25 Capitals Impacted: F I M H N SR Relevant Stakeholders: Effective risk management safeguards our financial health by identifying, assessing, and mitigating potential losses from credit defaults, market fluctuations, liquidity issues, interest rate changes, and operational failures. Through the effective use of processes, information, and technology, we have developed a multi-layered risk management strategy that identifies, assesses, monitors, and manages risks (credit risk, market risk, liquidity risk, interest rate risk, and operational risk). Our framework incorporates a Board-approved Stress Testing Policy & System, a vital component of our Internal Capital Adequacy Assessment Process (ICAAP). Stress testing plays a vital role in this assessment by simulating a variety of stressful, yet realistic scenarios to assess our vulnerability to extreme conditions. Description of Impact (Risk: Reputational Risk Impact: Negative, Potential, Within and Outside the Bank) Effective risk management is crucial to safeguard our financial health and prevent systemic instability. As a result, our multi-layered risk management strategy actively identifies, assesses, and reports the risks inherent to our business operations to the appropriate levels of management so that risk mitigation actions can be implemented. Furthermore, we recognise the growing importance of environmental, social, and governance (ESG) factors. Our ESG & Climate Change Assessment framework helps us identify and mitigate potential ESG risks and climate change threats associated with our borrowers and their business operations. Our independent risk management function ensures objectivity and oversight. A robust risk assessment helps us evaluate the likelihood and potential impact of each risk. We then implement a combination of mitigation techniques, such as setting credit limits, diversifying loan portfolios, managing interest rate exposure, and implementing robust internal controls, to proactively manage these risks. FY24 Performance 11 Number of risks identified Emerging Risk a) Extreme weather events b) Cyber and Data Risk Customers Employees Community Investors Government and Regulatory Bodies Suppliers F Financial I Intellectual M Manufactured H Human SR Social and Relationship N Natural Integrated Annual Report 2023-24 43

M AT E R I A L I T Y Corporate Governance and Ethics GRI topics: 2-9 to 2-23, 205, 206, 415 Capitals Impacted: F I H SR Relevant Stakeholders: At HDFC Bank, we believe strong corporate governance is fundamental to our long-term success. We achieve this through a multi-pronged approach, prioritising transparency in disclosures and continuous improvement in our governance structure. We maintain open communication channels for clear and consistent information disclosure, fostering trust with all our stakeholders. Our commitment extends beyond regulations, integrating ethical considerations into daily operations. We have a fair and independent board that promotes responsible business practices taking into account the economic, social, and environmental aspects of our business. Description of Impact (Opportunity, Positive, Actual, Within the Bank) Our Corporate Governance philosophy is articulated in our ESG framework, providing direction around the cardinal principles of independence, accountability, transparency, fair disclosures, responsibility and credibility in the way we conduct our operations. We adhere to all relevant regulations, including the Indian Companies Act, Banking Regulation Act, and directives from RBI and SEBI. Our commitment extends beyond compliance, as evidenced by our policies and guidelines. We have policies on Anti-Bribery and Anti-Corruption and Code of Conduct that ensure ethical operations. FY24 Performance 6 out of 12 Independent directors 25% Women representation on the Board Zero Incidents of Conflict of Interest Zero Incidents of Money Laundering Customers Employees Community Investors Government and Regulatory Bodies Suppliers F Financial I Intellectual M Manufactured H Human SR Social and Relationship N Natural 44 HDFC Bank Limited

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Climate Change  GRI topics: 201-2, 305 Capitals Impacted: NFIMH Relevant Stakeholders: HDFC Bank recognises the materiality of climate change and its far-reaching impact on our business. We are committed developing and implementing proactive mitigation and adaptation strategies including conducting comprehensive climate risk assessments to identify and manage potential physical and transition risks impacting our business. By integrating sustainability criteria into our operations and credit analysis, we aim to contribute to a low-carbon future while ensuring long-term financial stability. Description of Impact (Risk: Climate Risk Impact: Negative, Potential, Within and Outside the Bank) We have been tracking our carbon footprint since 2010 and are committed to becoming carbon neutral in our own operations by FY32. To communicate climate-related risks and opportunities, we are implementing the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. We are assessing our resilience to physical and transition risks, strengthening data collection on climate-related factors, and developing methodologies for risk assessment and scenario analysis. These efforts ensure we navigate the evolving low-carbon economy while mitigating our own environmental impact. Target To become carbon neutral in our own operations by FY32 Performance against the goal is elaborated in the ‘Environment’ chapter of the IAR. FY24 Performance 0.65 million tCO2e GHG Emissions (Scope 1, 2 & 3) 1.91 (tCO2e/K Cr Revenue from operations) GHG Emissions intensity (Scope 1 +2) 3.04 million GJ Energy consumption 9.87 GJ/ K Cr Revenue from operations Energy intensity 11,772.84 GJ Renewable energy consumed Customers Employees Community Investors Government and Regulatory Bodies Suppliers F Financial I Intellectual M Manufactured H Human SR Social and Relationship N Natural Integrated Annual Report 2023-24 45

M AT E R I A L I T Y Customer Satisfaction GRI topics: 417, 418 Capitals Impacted: SR I H Relevant Stakeholders: At HDFC Bank, customer satisfaction is paramount. We achieve this through a customer-centric approach, prioritising excellent service, personalised experiences, and efficient solutions. Our customer-centric approach caters to the financial goals of our customers while providing them insightful, relevant, contextualised, and hyper-personalised experiences, highlighting the value we place on exceeding customer expectations. Description of Impact (Opportunity, Positive, Actual, Within and Outside the Bank) We actively gather customer feedback through regular satisfaction surveys, allowing us to use their valuable inputs to continuously improve our products and services. We adhere to the RBI’s Customer Rights, Grievances Redressal, and Compensation Policy, ensuring fair treatment for our customers. Moreover, we have multiple convenient channels, including 24/7 telephone support, intelligent customer service options, and visitor message boards for customers to connect directly with the Bank. FY24 Performance 71 Customer satisfaction score (NPS Score) 93.2 million Number of customers Customer Privacy and Data Security GRI topics: 418 Capitals Impacted: SR F I M H Relevant Stakeholders: Being in the service sector, Information Security and Data Protection are of utmost importance to us. We have implemented robust Information Security and Data Protection measures to ensure that our data protection practices strictly adhere to the Banking Codes and Standards Board of India’s (BCSBI) ‘Code of Bank’s Commitment to Customers’ and Employee and Customer Awareness Procedures. A Board-level IT Strategy Committee, chaired by an IT Director, oversees these critical functions. Description of Impact (Risk: Cyber and Data Risk Impact: Negative, Potential, Within and Outside the Bank) We work in a highly automated environment and use cutting-edge technology to support a variety of operations with excessive dependence on service providers for cybersecurity. To avoid potential risks associated with system failures, cyberattacks, and information leaks, we have implemented dedicated Information Security and the Cyber Security Policies. Furthermore, an independent assurance team within Internal Audit function of the Bank continually assesses the effectiveness of our IT risk management strategies to ensure business continuity. FY24 Performance Zero Data breaches in FY 24 100% Eligible employees mandated to undergo cybersecurity training Customers Employees Community Investors Government and Regulatory Bodies Suppliers F Financial I Intellectual M Manufactured H Human SR Social and Relationship N Natural 46 HDFC Bank Limited

Financial Inclusion GRI topics: 203 Capitals Impacted: SR F H Relevant Stakeholders: Financial inclusion is a pressing issue, and the banking sector bears the responsibility of serving the underbanked people in rural, semi-urban, urban and metropolitan India. We see this as an opportunity to broaden our reach and make our services more accessible to the poorest people across the country. Description of Impact (Opportunity, Positive, Actual, Within and Outside the Bank) Financial inclusion at HDFC Bank goes beyond traditional market expansion to offer opportunities to tap into untapped markets. This fosters financial stability and economic participation at the individual and community level. While we continue to focus on the Corporate Cluster and Government Business to increase penetration, our business segment of Commercial (MSME) and Rural Banking is well- positioned to capture the next wave of growth. These initiatives will focus on extending outreach to unbanked segments, equipping them with the necessary tools for effective financial management and increased economic engagement. FY24 Performance 2.25 lakh villages Presence to fund traditional agriculture and allied activities 52% of branches opened in Semi urban and rural areas Economic Performance GRI topics: 201 Capitals Impacted: SR F I M H Relevant Stakeholders: Economic performance is critical to maintain stability and a positive momentum. We strive to always provide our stakeholders with increased long-term value. Even in difficult economic times, we have performed admirably because of careful management and capital allocation strategies. Description of Impact (Opportunity, Positive, Actual, Within and Outside the Bank) During periods of economic upturns, we experience increased opportunities for growth and profitability. These favorable economic conditions create a conducive environment for strategic investments and business expansion initiatives. As we align our growth with that of economy, we plan to capitalise on the increased demand for financial services, expand our customer base, and explore new avenues for revenue generation. FY24 Performance L307,581.6 crore Total Income L60,812.3 crore Profit after tax Customers Employees Community Investors Government and Regulatory Bodies Suppliers F Financial I Intellectual M Manufactured H Human SR Social and Relationship N Natural Integrated Annual Report 2023-24 47

M AT E R I A L I T Y Compliance GRI topics: 2-27 Capitals Impacted: F H N Relevant Stakeholders: We operate in a highly regulated industry where compliance is non-negotiable. As applicable, all our operations comply with legal, environmental, and social requirements imposed by regulatory organisations. Description of Impact (Risk: Compliance Risk Impact: Negative, Potential, Within and Outside the Bank) Non-compliance with regulations can result in regulatory fines, legal actions, and reputational damage, as well as impact the Bank’s ability to operate within legal boundaries. We maintain a strong foundation for regulatory compliance through periodic employee trainings, code of conduct, implementation of statutory laws, policies such as those on anti-corruption, anti-bribery, POSH, regular internal audits and robust incident response planning. FY24 Performance Zero Environmental non-compliance reported Zero Social non-compliance reported Community- wellbeing GRI topics: 203-1, 413 Capitals Impacted: SR N Relevant Stakeholders: Building stronger communities is a core value at our Bank. We actively partner with local communities to understand and address their needs. This engagement not only strengthens our relationships with the community, but also helps us identify potential initiatives. Our dedicated Board-level CSR & ESG Committee oversees these initiatives, ensuring they make a measurable impact. Additionally, we believe in aligning our efforts with government programs to support the nation’s overall growth and the well-being of its citizens. Description of Impact (Opportunity, Positive, Actual, Within and Outside the Bank) We have identified the most disadvantaged sections of the society around our areas of operation and are working to empower them to be self-reliant through our CSR brand ‘Parivartan’. Target The Bank has considered multiple targets as part of our Parivartan initiative, more details on this can be found in the ‘Social—Communities’ chapter of this report. FY24 Performance L945.31 crore CSR expenditure 10.19 crore+ Number of beneficiaries Customers Employees Community Investors Government and Regulatory Bodies Suppliers F Financial I Intellectual M Manufactured H Human SR Social and Relationship N Natural 48 HDFC Bank Limited

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Sustainable Procurement GRI topics: 204, 308, 414 Capitals Impacted: F M SR N Relevant Stakeholders: HDFC Bank implements a strategic approach to procurement, integrating environmentally and socially responsible considerations into our procurement practices. This approach yields operational efficiency, minimises waste generation, and reduces long-term operational expenditures for us. Description of Impact (Opportunity, Positive, Actual, Within and Outside the Bank) As part of our ESG Policy Framework, we recognise the need to work closely with our suppliers to reduce waste, improve efficiency, reduce carbon footprint, and engage with them to understand their commitment towards human rights and labour practices. We will thus continue to work towards greater integration of environmental & social considerations in our procurement practices. The Bank will make efforts to procure products which are recycled, environment-friendly, energy-efficient, and locally sourced. Asset Quality GRI topics: 203-2 Capitals Impacted: F M SR N Relevant Stakeholders: HDFC Bank prioritises responsible asset management practices throughout the loan lifecycle, contributing to a sustainable financial system. Regularly monitoring and managing asset quality are essential for maintaining the Bank’s financial stability and ensuring that we meet the obligations to depositors and other stakeholders. Description of Impact (Risk: Reputational Risk Impact: Risk, Negative, Potential, Within and Outside the Bank) Asset quality is a fundamental risk for banks, directly impacting our financial stability. Our assets are essentially promises of future repayment. Weak asset quality can lead to financial losses and trigger a domino effect. This in turn can limit our ability to lend. In severe cases, very poor asset quality can even lead to disrupting the financial system and impacting depositors and the broader economy. Therefore, maintaining a high standard of asset quality is critical for us to ensure our own financial well-being and contribute to a healthy financial system. As part of our Environmental, Social, and Governance (ESG) Risk Management Policy Framework, we evaluate the environmental and social risks and opportunities associated with our lending activities. This analysis guides our lending decisions and fosters client relationships that promote sustainable business practices. FY24 Performance 1.24%    Gross NPA ratio Customers Employees Community Investors Government and Regulatory Bodies Suppliers F Financial I Intellectual M Manufactured H Human SR Social and Relationship N Natural Integrated Annual Report 2023-24 49

S T R AT E G Y I N A C T I O N Our Future The Indian economy is positioned for growth, driven by strong fundamentals, a favorable policy environment and a youthful Ready Strategy demographic with about 65 per cent of population under 35 years of age. 50 HDFC Bank Limited

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements These factors collectively fuel growth realty finance business. Our focus is Execution is our strength, as in GDP and per capita income, on risk adjusted consistent, profitable evidenced by the seamless integration consequently increasing the demand growth and this drives our strategy of two financial powerhouses’ post-for financial products and services. across all businesses. While pursuing merger. This facilitates a deeper At the Bank, we are well poised to this growth trajectory, we remain customer engagement, establishes capitalise on this opportunity through committed to robust governance an extensive distribution network and consistent innovation in our offerings and risk management practices, fosters growth across all segments. and technological capabilities. The ensuring a harmonious balance We aim to further harness it’s potential merger of erstwhile HDFC Limited between expansion and maintaining a as we prioritise three key pillars: with the Bank has further enriched portfolio quality. people, customers and technology. our product suite with mortgage and WHAT WE HAVE — POSITIONED TO CONSISTENTLY CREATE VALUE What we have Create incremental value Priorities to drive Onboarding Employee first Harness Growth people strategy capabilities At-scale Customer first distribution Customer The Next Customer engagement 3-5 Years service Robust risk Continue Capture Technology first management Technology Macro share Excellence Attractive Power of macro-variables the Group Integrated Annual Report 2023-24 51

S TR ATE G Y I N A C T I O N Our employees constitute the experience of Culture. We remain Core scalable, secure, and resilient. backbone of our operations and steadfast in our commitment to Leveraging digital advancements, we are committed to creating an prioritising customer service, striving we orchestrate a unified and environment that enables them to to provide a seamless and exceptional comprehensive customer proposition, fulfill their potential and flourish. experience. Moreover as banking harnessing the power of the group. Towards this the Bank has adopted continues its digital evolution, These strategic priorities underpin our the managerial behaviour architecture technology assumes a pivotal role in ten-pillar strategy, positioning us for —Nurture, Care and Collaborate our strategy. We continue to invest in sustainable and profitable growth. to further strengthen on ground digital and technology to make our Customer Delivery of Relationship Acquisition Products and Services Management Capturing flows Digital Retail Expanding Wealth Technology Re-imagining the from Government Marketing Assets Management and Digital Branch Channel and Institutional (G&I) Business HDFC Bank Heartland: Leadership in Virtual Relationship edge for Commercial the Payments Management (VRM) Corporate Cluster and Rural Business Customer Service Strengthening Effective Risk Zero Paper, Zero People Learning Culture and Experience Compliance Management Touch Operations and Development 52 HDFC Bank Limited

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Re-Imagining the for meaningful conversations with Branch Channel customers. We aim to provide holistic, As we recognise the increasing shift need-based financial solutions by towards digital transactions, we leveraging our diverse range of envision the transformation of retail products and services. To achieve branches into engagement centres. this, we have identified the following Rather than being solely transactional, strategic imperatives for re-imagining branches will serve as platforms the role and architecture of Retail Branch Banking: STRATEGIC IMPERATIVES Micro market focused multi format distribution science Growth segments: Customer Lifecycle Rural, Government Engagement Al Analytics Digital driven customer Transformation conversations (Next Best Action) Customer life Service First centric insight led propositions Integrated Annual Report 2023-24 53

S TR ATE G Y I N A C T I O N Micro-market Focused Multi Format Distribution We are transforming branch banking into a multi-format model based on a granular micro market approach. This involves using a multi-variate model to identify high potential markets, considering factors such as population demographics, deposits and advances data, delinquency insights, climate risk assessments and future trends. Branch formats may vary from full service physical branches to smart banking lobbies or digital banking units with self-service kiosks as well as business correspondent-based models. We closely track profitability and break-even for each format to ensure targeted investments and cost-effectiveness. By expanding our presence in identified locations through multiple formats, we not only increase our catchment area but also benefit from network effects. Therefore, we continue to invest in expanding our presence in identified locations through multiple formats. Bank’s Distribution Network (As on March 31, 2024) • Branches: 8,738 • ATMs / CRMs: 20,938 • Cities / Towns: 4,065 • 52 per cent of our branches are in Semi-Urban and Rural areas Customer Lifecycle Engagement and AI driven Customer Conversations We leverage our extensive branch network as engagement centres to have high impact conversations with customers to partner with them over the long term. We source the right customers through a differentiated go-to-market approach and engage in need-based conversations, offering tailored product propositions. 54 HDFC Bank Limited Our relationship management architecture ensures continuous nurturing and implementation of next best actions aimed at fulfilling customer needs. With a ‘service first culture’, we leverage robust analytics and AI to suggest personalised recommendations based on customer transactions and digital behaviour for services and products. This also allows for validation from the Relationship Manager which then results in recommendations for the next best action for each customer. Relationship Managers are also equipped with real-time data for immediate next best actions based on customer interactions. We are now looking to enter the next leg of this journey by leveraging the account aggregator model and Generative AI capabilities to ensure that we have the right proposition for the right customer at the right time.  Catchment Scoping RelationshipNeed Based ManagementCustomer ArchitectureConversations Recommendations (Next BestAcquisition Action, ServiceOnboarding Next Best Action) Onboarding (Welcome, Immerse, Nourish)

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Digital-led Service First Organisation We focus on voice of customer -led process improvements and digitalisation. Some of the key improvements include differentiated and priority servicing for senior citizens and High Net Worth (HNW) customers, real-time deliverable tracking and regular alerts to customers on processing milestones. We continue to embed and enhance customer digital journeys including Insta Service Journeys, in sales, service and operations. Mobile first approach leveraging Aadhaar and ‘Walk Out Working’ (WOW) straight through journeys are some of the initiatives that are helping us achieve significant benefits in terms of improved customer experience. With a digital-first mission, we are unlocking operational efficiencies and cost savings while delivering customer delight. Going forward, we aim to build a paperless retail experience through a bouquet of customer-centric digital journeys that make banking simple. BizXpress is a digital portal designed for MSME customers. Launches in FY24 • BizXpress: A digital portal designed for MSME customers • SmartWealth App: A user-centric Do-It-Yourself (DIY) investment mobile application Rural Business Growth Levers We develop curated propositions to address the specific needs of Semi-Urban and Rural (SURU) markets. We introduced ‘Vishesh Banking Programme,’ an industry-first rural-focused customer managed programme. It provides customised benefits like complimentary health check-up facility, tele consultation with doctor, free gold valuation, discounted pricing on loan processing fees and free subscription to Agri-Tech app with discounted products and services. To expand our rural reach, we utilise business correspondents and innovative models like the Bank on Wheels. Additionally, we engage customers through financial literacy programmes and opinion leader engagements to foster deeper relationships and recognise their contribution to society through an acknowledgement initiative known as ‘Samman Samaroh’. Collaborating with partners such as Farmer Producer Organisations (FPOs) and Micro, Small and Medium Enterprises (MSMEs), enables active engagement with the entire ecosystem in a comprehensive manner. People Capability Building using Nurture, Care and Collaborate approach. We are investing in All the aforesaid initiatives innovative ways of learning and and reimagined approach are capability development using internal complemented by a massive focus and external partners and technology on our people capability building enabled platforms. through a sharp and targeted strategy

Virtual Relationship Management (VRM) Virtual Relationship Management (VRM) is where new age technology powers human capability to bring to our customer a convenient, safe and seamless customer experience consistently. VRM provides enhanced customer engagement and seamless banking experience –emerging as the preferred banking choice for millions of customers. Our VRM strategy focuses on digital ease and personalised, need-based conversations. It is built on three pillars: Virtual Relationship, Virtual Sales and Virtual Care. Virtual Relationship is an effective approach to cater to the needs of our managed customer base. The Video KYC team which is a part of Virtual Relationship enables digital onboarding and KYC verification. Virtual Sales addresses remaining customer base (other than managed) engaging and enhancing their relationship value by meeting their requirements with best-in-class products delivered digitally. Virtual Care enables seamless 24/7 customer service across all major retail banking products delivered through voice and text-based modes. Our Virtual Relationship Managers constantly engage with customers to cover the entire customer life cycle including saving, investing, borrowing and transacting. Leveraging an omnichannel engagement framework, data science-driven interactions and a talented pool of well-trained Virtual Relationship Managers, we have an advantage in VRM. Our investments in technology have upgraded customer- S TR ATEfacing solutions such as Interactive Voice Response Systems and digital engagement platforms like Video KYC, offering a world-class virtual engagement framework. Our Virtual Managers are complemented with various digital tools such as web chat with Eva (an Artificial Intelligence based chatbot) and service assistance via Facebook Messenger. Employees and customers are the capital for this business and the Bank has invested heavily in training and development of its relationship managers. Training covers product knowledge, sales techniques, communication skills, compliance and regulatory requirements and customer relationship management skills. With structured, secure, compliant and automated systems, we ensure customer data privacy. Our virtual framework provides seamless 24/7 access to customers aligning with global service standards. We offer automated Interactive Voice Response (IVR) and Voice BOT solutions in G Y I N A C T I O N multiple languages delivering a wide range of services. Through analytics- led product distribution, we strive to be the preferred choice of customers for all their banking needs. Our Virtual Care and Virtual Relationship approach is an extension of our customer-centric programme called ‘Infinite Smiles,’ aiming for customer delight in every interaction. IVR offered in 12 languages Video KYC offered in 6 languages

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Capturing Flows from Government and Institutional (G&I) Business Our efforts to grow the Government, Institutional and Start-Up businesses gathered further momentum in the Financial Year 2023-24. The key pillars of growth for the business are: Dominance in Agency Business The Bank continues to focus on maintaining its position as a leading Agency Bank, ranking among the top three Government Banks collecting direct and indirect taxes for Government of India. It is the largest collector of Goods and Service Tax demonstrating its market leadership, and a major player1 in direct tax collections and customs duty. The Bank is actively integrated with 9 States/Union Territories for the collection and settlement of various state taxes. HDFC Bank’s Market Share: Direct Tax ~24% Collections Goods & Service Tax Collections ~16% Custom Duty ~8% Collections The Bank collected over H10 lakh crore of revenue in FY24 for the Government Partnering with Governments to go Granular The Bank has emerged as a trusted partner for centre, state, district and local level administration leveraging technology to offer right fit solutions. It has helped digitalisation of Gram Panchayats (4,500+) by enabling collection of local taxes through QR. HDFC Bank has also integrated with online revenue collection platforms to enable collections for state, district and urban local bodies. Further, for State Governments we have facilitated asset monetisation and revenue accrual through online auctions. The Bank has facilitated digitalisation of payments associated with the land acquisition process by aiding district level Government authorities to expedite beneficiary identification and related disbursements. Disbursing Funds to the Last Mile With a 39 per cent growth in total flows processed, the Bank facilitated the transfer of over 30 per cent of the total funds flowing from the Central Government to various beneficiaries under the aegis of the Centrally Sponsored Schemes, Central Sector Schemes and the 15th Finance Commission. The Bank disbursed funds amounting to H1,06,171 crore under the various schemes. Process 30 per cent of the funds flowing from the Government of India to states and implementing agencies Enhanced Focus on Serving Those Who Have Served the Nation. HDFC Bank revamped its product offerings and overall engagement strategy to provide customer delight to pensioners with 3,200 + branches enabled to offer SPARSH services to defence pensioners. In addition, the Bank has enhanced its pension system with additional automation and features to be able to provide Form 16 and facilitated submission of life certificates digitally through integration with Jeevan Praman Portal, Government of India. The newly launched Garv Pension account comes with best in class offers, including health insurance to those until the age of 75 years. Digital Solutions—A Key Driver of Government and Institutional Business The Bank offers a connected banking experience to its customers through FARSight, a tool for monitoring fund flows and balances across their administrative functions enabling a convenient and efficient way to manage their finances. The Fund Management Solutions facilitated by the Bank to various State Governments help them systematically comply with the Single Nodal Account guidelines as mandated by the Government of India. In addition, the Bank continuously endeavours to ensure compliance with the various system upgrades required to by the Public Financial Management System [PFMS]. Finally, the Bank’s recently launched omnichannel payment and collection solution – Collect Now and its associated applications help various Government and institutional customers digitalise the payment and collection flows. Investing for the Future The Bank has focused on augmenting its engagement and offerings with the Start-Up ecosystem by launching a range of customised solutions under the revamped flagship program StartUp | BuildUp. • Dedicated lending policy under Credit Guarantee Scheme for Start-Ups. • Specialised group health insurance coverage plans. • Efficient management of personal and professional expenses with commercial cards. • Value-added services such as provision of legal handbooks and compliance calendars and specialised offers • Offered grants to DPIIT registered Start-Ups under its umbrella CSR program 1As per tax collection data reported by PIB & CGA, Government of India. Integrated Annual Report 2023-24 57

STRATEGY IN ACTION

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements the growing requirements of various associations, trusts, religious and Government institutions. We also have the full array of products catering to our merchants partners enabling them to seamlessly collect payments in the offline world. We support collection of payments through the ubiquitous PoS terminals and are also a leading player in the UPI dominated QR payments. Our product range is flexible and complemented by latest technology to accommodate customisations. Innovation has been a constant theme across the Payments Business. The Financial Year 2023-24 saw the Bank introducing several new products and payment platforms. The Bank’s MyCards platform which is a one stop platform to manage HDFC Bank Credit and Debit Cards, FASTag and Consumer Durable loans continued to grow at a rapid pace, with more than 1.3 crore card users being added only in the last year. The platform continues to be enriched through addition of new features at regular intervals. SmartHub Vyapar, an integrated payment, banking and business solution that caters to the daily needs of merchants and helps them drive business growth also continued to witness widespread adoption with more than 16 lakh merchants onboarded across the country. It handled over 45 lakh transactions daily in March 2024. The newly launched PayZapp has seen a strong growth with 75 lakh customers onboarded as on March 31, 2024. PayZapp provides a unified experience across contactless, QR and UPI payments. It is currently among the top-rated payments application in the country. Given HDFC Bank’s strong franchise on the issuance as well as the acceptance side, the Bank also leverages its network of consumers and merchants to enable affordability solutions. It has a very strong consumer finance programme helping consumers to purchase goods and services complimenting their lifestyle. The Bank’s future strategy revolves around the opportunities in the payment’s ecosystem and the vibrant Indian economy. It continues to focus on sustainable growth strategies, emphasising on resilience and holistic impacts. The digital strategy is aligned to enhance customer engagement across all touchpoints of the Bank. As an extension of the digital strategy, the Bank is poised to launch a completely new and refreshed Mobile and NetBanking platform which is user friendly and offers a very high level of security. Tech and Digital: A Customer Centric Evolution The digital transformation witnessed in the financial landscape has brought institutions closer to their customers than ever before. From instant microfinance to the largest corporates and from the urban youth to agri and dairy farmers—our Bank is proud to offer best-in-class products and services to customers across the spectrum. To further harness next-gen technologies and innovations for serving our customers better, we are pivoting our strategic direction with “Shift Right”: shifting from a product-centric approach to a customer-centric focus. Our product-centric approach ensured that our core banking infrastructure was the heart of our operations, supported by layers of data, integrations and diverse channels and partnerships for customer interaction. Now, as we embrace a customer-centric model, we understand that Data enhanced with Artificial Intelligence (AI) and Machine Learning (ML) at the core of our operations will enable deeper insights into our customers’ behaviour, preferences, and needs, further allowing customer personalisations and customisations while protecting their privacy and security. The data would be powered by modernised, decoupled core systems built for scalability and demand with higher availabilities. The ‘lightened core’ would leverage cloud-native architectures delivering greater performance and secure access. Next, an API orchestration layer will facilitate seamless integration and communication across services and platforms. This will ensure that our systems and services are always Integrated Annual Report 2023-24 59

S TR ATE G Y I N A C T I O N as a Service i ng (B e n k hannels aa artn rship a C S P s B ) hannels Journeys: Frictionless, straight-through hestratio C r c n APIsO La I ices ba y at Channels: Digital – A P r v s e D a e e r where the customer is o s d c r Data C Core Core: Always ON, i o M powered r e Banking perform @ scale by AI/ML Data: Insights, driving experience & growth Security: For customers & data Prod ntri c uct Ce Cust ntri c omer Ce ready with plug-&-play connectivity providing enriched, streamlined experiences for our customers. Further, by supporting a variety of channels for customer engagement such as mobile apps, online banking, chatbots and in-person services, we can meet customers where they are and provide consistent, high-quality engagement across touchpoints. This multi-channel approach ensures that customers can access our services in the way that is most convenient and comfortable to them. As organisations are increasingly taking their experiences directly to customers rather than expecting customers to come to them, Banking-as-a-Service (BaaS) has begun assuming relevance. We see this as an opportunity to embed our digital offerings into the channels that customers prefer to use. “Shift Right” will not only expand our reach and market presence but also foster innovation and collaboration within the financial ecosystem, ultimately benefiting our customers through a broader range of innovative solutions. By adopting a customer-centric approach, we will ensure that our services are more responsive and personalised while accelerating scalability, flexibility and innovation thus driving long-term customer satisfaction and loyalty. Our dedication to delivering personalised digital banking solutions and ensuring inclusive access to banking services underscores our mission to be a trusted partner for all our customers. As we continue to innovate and adapt, our Shift Right approach will guide us in building a resilient, forward-looking Bank that remains steadfast in its commitment to excellence and customer satisfaction. Heartland: Commercial and Rural Commercial and Rural Banking (CRB) Group caters to a diverse range of entities including Micro, Small and Medium Enterprises (MSMEs), Joint Liability and Self-Help Groups in the microfinance segment. It further serves the needs of small and marginal farmers, healthcare finance, equipment finance and commercial transport companies. Under the CRB segment, our aim is to support the growth and success of MSMEs by providing access to credit and other financial solutions and services. We cater to MSMEs in manufacturing, exports, retail and wholesale trade, supply chain network, infrastructure companies, farmer finance, commercial agriculture, joint liability and self-help groups under microfinance, commercial equipment and transport and healthcare 60 HDFC Bank Limited

STRATEGY IN ACTION

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements amalgamated with and into HDFC Bank on July 01, 2023 and hence comparisons with the previous periods have to be looked at in light of the same. The Bank believes that the fundamental demand for housing will continue to be strong in the long run in India due to a favourable environment. India is expected to have the largest working population by 2050, which is likely to give a major fillip to urbanisation in the country. Eight crore families are likely to move from rural areas to cities in the country, increasing the need for housing. This is clearly an opportunity for the industry and HDFC Bank is well positioned to help fulfill the housing dreams of millions. The Bank is committed to offering home loan solutions to diverse income categories. Going forward, our aim is to retain and built on our strengths to offer a best-in-class service and capitalise on the immense opportunities that are available in the country. HDFC Bank Edge for Corporate Cluster Corporate Banking remains a steady contributor to our growth and profitability. Our customer base spans from prominent large business houses, multinational corporations, manufacturing and service sector companies to public sector enterprises and financial institutions, amongst others. Our focus is on holistic corporate engagement. We serve them by extending credit as well as by offering banking products and solutions that assist in managing their entire financial business cycle. Our corporate solutions include working capital and term loans at the inception of a project, operational solutions such as cash management, supply- chain integration, international trade financing and payment solutions such as tax management as well as payroll management. Our comprehensive range of products and services along with our relationship approach provides us with competitive advantage. While we focus on growth, we ensure pricing discipline and are selective in the exposures we undertake. We have a well-diversified book across multiple industries. The average rating of the book is between AA to AA+. We endeavour to leverage our strong relationships with existing customers to increase our wallet share. This entails deepening share within existing products as well as designing effective solutions across their needs to increase their product holding. In addition, we are also focusing on New to Bank acquisitions through engagement with large corporates, targeting Government undertakings and multinational corporations to expand our reach. We aim to capitalise on the Government infrastructure push and Production Linked Incentive scheme (PLI) which will open up incremental opportunity for the banking sector. We have also put in place a liability strategy to improve wallet share through our transaction banking, viz, cash management, payments and trade solutions. Supply chain financing is also a key growth driver for the Bank. We are bolstering this through the use of technology such as our supply chain platform that acts as a one-stop shop for transaction needs, as well as the development of need-based offerings. CORPORATE ECOSYSTEM Shareholders Dividend Distribution Government Channel Statutory Payments Supply Chain Finance Cross Border Employees Vendors Salary • Trade Empanelment • Cross Border Transactions Balance Sheet Support Customers Working Capital & • Digital Term Lending Integrations Suppliers/Dealers • API Integrations Cash Management • H2H Integrated Annual Report 2023-24 63

S TR ATE G Y I N A C T I O N K E Y G R O W T H D R I V E R S Leveraging New to Bank Liability Strategy Yield & Spread Creating Vertical Existing Acquisition • Focus on Improvement focus Relationships • Targeting MNCs underlying float • Tight liquidity • Large Corporate • Assessment of • Engaging with products expected Coverage (LCC) potential products Corporate Group • Improving • Continue to be • Public Sector • Effective solutions companies share of wallet selective on Undertaking for gaining wallet • Geographical of transaction assets (PSU) share expansion banking • ~90% floating • Multinational • Pooling bank to book Companies the Corporates (MNCs) We are continuing on a path of strategic digital transformation to further widen and deepen wallet share from corporates by enhancing Employee Experience (EX), Customer Engagement (CE) and creating an ecosystem for seamless banking. We are enhancing Employee Experience through the launch of platforms enabling an end-to-end journey for the Relationship Managers, actionable analytics, pricing intelligence and dashboard automation. On the customer front, we are progressing on the path of shifting from a product focus to an ecosystem approach and investing in enabling ERP integration across functions. In addition to pure construction finance facility, we are also financing Greenfield under-construction commercial office space with developers having a proven track record. The construction finance facilities will get converted into low-risk Lease Rental Discounting (LRD) facilities resulting in a healthy pipeline of LRD book for the Bank. Through these initiatives, we are re-imagining the corporate cluster to function as a digital corporate bank. We believe the runway is long and our aim is to serve corporates with 64 HDFC Bank Limited the entire gamut of products and services and capitalise on the benefit of synergies across our Bank. HDFC Bank offers comprehensive structured solutions to help corporates make their supply chain more robust. These programmes cater to the working capital requirements by easing liquidity and removing the underlying trade risk of the transaction. Supply Chain Finance (SCF) As part of our digital transformation strategy, we have launched the SCF Underwriting & Onboarding platform to ease the anchor client’s counterparty onboarding process and provide instantaneous credit decisioning in less than 30 minutes of application submission. In addition to the enhanced Customer Experience, the platform also enhances the productivity of the Bank’s internal stakeholders. It enables HDFC Bank to build a granular SCF book and given the automation of the origination and underwriting legs, the platform is also expected to give an impetus to higher deal velocity on the existing SCF Transaction Platform. Realty Business Finance Post-merger, the Bank inherited the realty business finance. It has commenced offering Construction Finance facilities mainly to well established borrowers with a strong track record. This business largely covers the rental discounting business as well as construction finance. There was a significant shift in regulation and processes. The Bank has successfully managed to ensure that the transition was smooth and seamless. There is a continuous endeavour to make borrower’s journey from application to disbursement smooth and fast. With continuous automation and digitalisation of various processes, we have been successful in reducing our overall TAT resulting in customer satisfaction and better service. We offer funding for ready / under construction residential / commercial properties, Hotels, clubs, schools, hospitals among others. Lease Rental Discounting is another key product offered by Realty Business Finance. HDFC Bank is the largest player in Real Estate finance with market share of close to 20 per cent. We are geographically spread across 15 cities across India and are present in both

S TR ATE G Y I N A C T I O N Our cutting-edge fintech platform “SmartWealth”, offers a comprehensive solution for managing investments seamlessly. The state-of-the-art mobile application provides a highly personalised experience, democratising wealth management across all customer segments by leveraging over two and a half decades of domain expertise. Our product and tech teams bring a cumulative 100 years of experience each, delivering a robust digital experience that sets new standards in the industry. SmartWealth, our revolutionary digital platform designed keeping users at the centre, offers top-tier features to enhance wealth management experience: 1. Tailored model portfolio recommendations powered by our in-house research team to help users achieve their financial dreams. 2. Consolidated portfolio view and comprehensive family wealth dashboard for holistic financial oversight. 3. Account aggregation across banks with a spend tracker and analyser, enabling meticulous control over cash flows. 4. On-the-go portfolio analytics to keep users informed and agile in their investment decisions. 5. Dynamic portfolio rebalancing by switching from underperforming funds. 6. A versatile SIP calendar allowing users to start, pause, resume or stop SIPs at their convenience. 7. Centralised investment reports for seamless financial and tax reporting. With over 1.1 lakh downloads and counting, this innovative solution is transforming how our clients manage their wealth. With an unwavering commitment to clients’ prosperity and enduring financial well-being, the Bank has steadfastly pursued avenues to bolster recurring revenue streams. We remain focused on providing an asset allocation-based Wealth management offering that is designed to Protect, Manage and Grow our clients’ wealth – an essential cornerstone of our brand’s identity. 66 HDFC Bank Limited Digital Marketing Digital Marketing plays a vital role in the Bank’s overall marketing strategy. Digital is a platform where increasing number of our customers spend their time and hence, it is crucial to be present in this medium to engage and build our brand with our key target audience. We have built a strong brand IP through Vigil Aunty – our own social media influencer, who creates awareness amongst customers about frauds and helps them to be aware of how to avoid them. She has 21+ lakh followers in social media and about 8 lakh on WhatsApp. This IP has helped us to strengthen our leadership position by taking the lead on an issue which plagues the entire industry. We also leverage social media platforms to drive moment marketing by celebrating key Indian stories, responding to trending themes and being present topically to establish brand associations of modern, dynamic, and progressive. Our digital marketing strategy has

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements helped create brand love amongst the new and digitally savvy set of IMPACT OF DIGITAL MARKETING customers leading to increased brand awareness and brand loyalty for our financial solutions and services. The second key aspect which digital marketing delivers on is to create a strong digital first culture amongst both the employees of the Bank as Building Brand Generating well as its customers. This primarily recall in digital digital unassisted aims at creating frictionless customer and social business for experiences for availing our products, ecosystem the Bank for taking care of their servicing needs as well as providing app platforms to manage their day-to-day money and payments needs. And then leveraging these digital journeys to shift the purchase behaviour of our Enabling Creating customer customers to adopt unassisted digital enhanced customer advocacy through journeys and save costs for the Bank. experience through ORM and online By executing this strategy, we aim digital tools in grievance to improve our direct contribution physical channels management through digital to business generation. We invest in advanced analytics and data science using cloud-based tools and advanced AI / ML models to gain a deep understanding of customer behaviour and preferences, curate personalised interventions and execute digital marketing plans at scale. We have revamped our digital journeys for loans, deposits and payment solutions enabling customers to purchase products in a frictionless manner. Our advanced analytics engine allows us to test hypotheses, build models and understand customer needs for meaningful interactions and relationship building. Our goal is to address relevant customer needs with the right product, at the right time and through their preferred communication channel. To drive end-to-end outcome of unassisted business generation, we work in cross-functional teams called PODs. These PODs comprising the marketing, business and product teams are responsible for leveraging data-backed analyses to solve business problems. To implement our strategy effectively, we utilise an omni-channel approach, leveraging our owned digital properties (website, NetBanking and MobileBanking), our digital channels (notifications, SMS, email, WhatsApp) and paid digital media including social media. Evidence of our success can be seen in the growth of customer visits to our website, digital properties as well as digital journeys and completion of product purchase journeys. We also take feedback consistently on our digital journeys and we have average ratings of 4.8 on Xpressway indicating a simple, frictionless journey experience. Finally, we actively stimulate customer advocacy by addressing grievances, managing online reputation, utilising ratings, reviews and testimonials to earn customer trust and create brand advocates. Our Robust IT and Risk management structure enables secure handling of client information which is of paramount importance to us. 135 crore No. of customer visits to our website in FY24 19.1 crore AEM forms visit in FY24 Integrated Annual Report 2023-24 67

E X T E R N A L E N V I R O N M E N T Favourable The outlook for the Indian banking sector in FY24 appears optimistic. Both the banking system and Growth Landscape Non-Banking Financial Companies (NBFCs) exhibit stability. Buoyed by healthy capital ratios, improved asset quality and consistent earnings growth, the sector is positioned for robust expansion. Nevertheless, the global landscape transparent governance structures sector in recent years. From bolstering remains dynamic with major Central remain pivotal for ensuring stability digital infrastructure to safeguarding Banks closely monitoring inflation and trust in the financial sector. customer protection, RBI’s and economic indicators. Qualitative Additionally, the Reserve Bank of India interventions aim to enhance the ease factors such as enhanced disclosures, (RBI) has prioritised initiatives to foster of doing business while maintaining robust codes of conduct and inclusion and innovation within the financial stability in the economy. 68 HDFC Bank Limited

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements India Holds Steady Amidst Global Volatility The global economy is expected to maintain its resilience despite a tight monetary policy in 2024. The International Monetary Fund raised its global growth forecast by 10 basis points to 3.2 per cent for 2024. It is expected that emerging and developing economies will experience a growth rate of 4.2 per cent in 2024, which is largely consistent with the 4.3 per cent growth recorded in 2023. Conversely, advanced economies are projected to witness a slight uptick in growth estimated at 1.7 per cent in 2024 compared to 1.6 per cent in 2023. Certain Central Banks in advanced economies are expected to maintain higher policy rates for an extended period due to elevated inflation readings. Additionally, a surge in commodity prices including crude oil and disruptions in the supply chain amidst escalating tensions in the Middle East may impede progress in disinflation and present challenges for Central Banks. India is poised to maintain its position as one of the fastest-growing economies globally in the Financial Year 2024-25. The Reserve Bank of India (RBI) anticipates GDP to grow by 7.2 per cent in FY25, compared to 8.2 per cent in FY24. Economic momentum is expected to receive a boost from a further uptick in private capital expenditure and ongoing Government capital outlays. Additionally, the stronger-than-anticipated global growth outlook augurs well for India’s economic growth. Moreover, domestic consumer spending is expected to rebound especially in rural areas supported by a normal monsoon, stable inflation, and a reduction in interest rates. Domestic inflation is projected to average 4.6 per cent in FY25, assuming a normal monsoon, compared to 5.4 per cent in FY24. A favourable base effect and subdued core inflation (excluding food and fuel) are anticipated to lend support.  OUR RESPONSE HDFC Bank has a robust riskstrategies and actions to enhancecapacity to serve its customers management framework that helpsits ability to withstand potentialand has opened up opportunities maintain stability and resilience inchallenges. Furthermore, HDFC Bankfor cross-selling. Through these its operations. It regularly conductsis dedicated to fostering inclusiveinitiatives, HDFC Bank continues to topical stress tests to assess thegrowth by innovating and developingcontribute to India’s economic growth potential impact of geopolitical,tailored offerings for the Semi-Urbanwhile upholding high standards of macroeconomic and sectoral trends.and Rural market. The merger hasfinancial integrity. The Bank continuously adapts itsfurther strengthened the Bank’s Integrated Annual Report 2023-246 9

E X T E R N A L E N V I R O N M E N T Focus on Data Privacy and Cyber Security In recent years, the banking sector has undergone a profound transformation with the extensive integration of digitalisation and cutting-edge technologies. This transformation has brought forth not only numerous opportunities but also formidable challenges particularly in the realms of cybersecurity and data privacy. The landscape of cyber threats has undergone rapid and complex changes fuelled by targeted attacks, the proliferation of Ransomware-as-a- Service (RaaS) incidents, the utilisation of AI/ML to orchestrate sophisticated attacks as well as the prevalence of DDoS attacks and coordinated group cyber assaults. The repercussions of cyberattacks are profound, impacting not only financial institutions’ bottom lines but also their brand reputation and customer trust. Moreover, these incidents often result in attrition and significant financial losses. As the banking sector increasingly adopts cloud-enabled services as part of IT modernisation initiatives and digital-first business strategies, concerns regarding related threats have intensified. Recognising securing the cloud entails a shared responsibility, organisations are actively implementing robust measures to safeguard their cloud infrastructure. Regulators in India are also actively taking measures to ensure data privacy. This is evident through the Digital Personal Data Protection Act 2023, emphasising the nation’s commitment to safeguarding data privacy rights. At HDFC Bank, we are committed to robust cyber security and data privacy as part of our technology transformation journey. Key initiatives include the establishment of a next-generation Cyber Security Operations Center, Advanced Security Incident OUR RESPONSE and Event Management solutions augmented by AI and ML capabilities, 24/7 defacement monitoring and a zero-trust architecture approach. In addition, we also have a data privacy program which is led by the Data Privacy Officer and overseen by the Board and Chief Data Officer ensuring stringent compliance with relevant regulations. 70 HDFC Bank Limited

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Growing Emphasis on Sustainable Financing and Climate Risk Management The escalating impact of climate-related events has prompted a heightened emphasis on resilience across sectors with the financial sector playing a pivotal role in mobilising resources for green activities. Climate change and transition finance have become central to global discourse. In addition, integrating climate and ESG related risks in underwriting policies and risk management framework is becoming increasingly important for financial services companies. The increasing threat of climate change and its physical damage are significant concerns that may impact portfolio performance. Shifting market perceptions and increasing demand for environmentally friendly products and services also have an impact on the cashflows of portfolio companies as the world transitions to a low-carbon economy. Effective risk management is essential to manage and mitigate these impacts. Moreover, inadequate information about climate-related financial risks can lead to mispricing of assets and misallocation of capital emphasising the need for a better, more consistent and comparable disclosures. Globally, the publication of IFRS Sustainability Standards in June 2023 is a step in this direction. Aligned with global trends, SEBI introduced mandatory reporting of the Business Responsibility and Sustainability Report (BRSR) for top 1,000 listed entities in India in May 2021. SEBI also mandated assurance on select metrics in the BRSR to further enhance the quality and comparability of ESG Disclosures. Additionally, RBI’s draft disclosure framework on Climate-related Financial Risks in February 2024 focuses specifically on disclosures related to governance systems, risk management policies, and the strategies and targets developed by financial services entities to manage climate-related risks. The Bank has conducted internal exercises to evaluate physical and transition risks arising from climate change. The Bank has developed initiatives to manage climate-related risks at the project, portfolio, and OUR RESPONSE organisational levels. Further details on these initiatives can be found in the ‘climate related disclosures’ section of the report. Additionally, we actively monitor and externally verify the carbon emissions resulting from the Bank’s operations to manage and reduce our environmental impact. We also comply with all relevant regulations including those related to the BRSR, mandated by SEBI. Integrated Annual Report 2023-24 71

E X T E R N A L E N V I R O N M E N T Regulatory Changes and Government Initiatives The Government of India has made significant strides in promoting financial inclusion through the Pradhan Mantri Jan-Dhan Yojana (PMJDY). Leveraging the PMJDY accounts, the Government has effectively facilitated Direct Benefit Transfers (DBTs), streamlining the distribution of subsidies and welfare benefits. In FY24, transactions totalling H6.36 lakh crore were executed through DBT. Additionally, there is a continued focus on affordable housing with the extension of the Pradhan Mantri Awas Yojana (Gramin) in the Interim Union Budget for FY25, sanctioning additional two crore houses over the next five years. Concurrently, RBI also continued its commitment to promoting financial inclusion through the expansion of digital payment infrastructure and the introduction of innovative banking services. Further in FY24, RBI also implemented stringent licensing requirements and heightened scrutiny aimed at ensuring the sector’s financial stability and responsible operations. As a responsible Bank, we are committed to taking banking solutions to the remote areas of the country and enabling underbanked sections of the population to access formal financial channels. With over 50 per cent of our branches located in semi-urban and rural (SURU) areas we ensure banking solutions reach the remote areas of the country and provide formal banking channels to the under-banked 72 HDFC Bank Limited OUR RESPONSE population. We are committed to the Government’s flagship initiative, Pradhan Mantri Jan-Dhan Yojana (PMJDY), along with other initiatives such as Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Atal Pension Yojana (APY), PM SVANidhi and Pradhan Mantri Mudra Yojana (PMMY). One of our CSR pillars—Skill Development And Livelihood Enhancement Initiative aligns with the RBI’s National Strategy for Financial Inclusion (NSFI). Through our Financial Literacy Programme, we focus on financially excluded individuals and those at the bottom of the pyramid. We conduct financial literacy camps through rural branches and designated Financial Literacy Centres. Additionally, we actively participate in the Pradhan Mantri Awas Yojana. We provide last-mile access through mobile applications such as UPI, Aadhaar and RuPay-enabled Micro-ATMs.

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Advancements in Tech-based Banking Technological advancements have revolutionised banking and finance sectors, driving innovation and efficiency. The rise of Artificial Intelligence (AI), Machine Learning (ML) and Generative AI has transformed industry operations from asset management to fraud detection. Aligning with the Payments Vision 2025, the Government of India is actively shaping payment systems, exploring alternate authentication methods and facilitating IoT-based payments. The introduction of UPI Lite X and conversational instructions enhances accessibility to digital payments and ease of use. UPI Lite X utilises NFC technology, facilitating seamless retail digital payments in areas with limited internet connectivity, reducing transaction declines and promoting financial inclusion. Additionally, conversational instructions powered by AI offer an intuitive and secure method for users to initiate and complete transactions through engaging conversations on smartphones and feature phones. Drawing insights gleaned from Kisan Credit Card (KCC) and dairy pilots, RBI alongside the Reserve Bank Innovation Hub (RBIH), launched the Public Tech Platform in August 2023. This platform leverages open APIs and standards to integrate services like Aadhaar e-KYC, land records, milk pouring data and bank account verification. It aims to boost lending efficiency, reduce costs and enable quicker disbursement and scalability. Additionally, the RBI’s pilot programme for Central Bank Digital Currency (CBDC) now involving thirteen Banks nationwide demonstrates a commitment to fostering digital currency adoption. India’s fintech industry is rapidly growing, projected to reach US$150 billion by 2025 reflecting the country’s emergence as a global fintech hub with over 2,000 recognised FinTech businesses. This vibrant ecosystem signifies India’s rapid development and promising opportunities for innovation and expansion. In an era of rapid technological change, we are focused on a customer-centric transformation by leveraging AI/ML and Generative AI to enhance customer experiences and offer personalised solutions. We provide an omnichannel banking OUR RESPONSE experience, ensuring seamless interactions across digital and physical platforms. Security remains paramount, with advanced measures to protect customer data. Innovations like UPI Lite X, conversational instructions, PayZapp 2.0 and SmartHub Vyapar enhance merchant empowerment. Aligned with India’s Payments Vision 2025, we embrace initiatives like the Digital Rupee and Public Tech Platform.  Integrated Annual Report 2023-24 73

R IS K M A N A G E M E N T Securing The Bank has put in place a comprehensive risk management framework that has stood the test of time. Supported by Our Future technology and governance, it has enabled us to navigate through uncertain times while ensuring growth. With completion of the merger, the Bank has expanded the coverage of its risk management framework to include the businesses / functions that are integrated into our fold, and defined adequate risk appetite, wherever applicable, for prudent risk management of such activities as per Bank’s established framework. The Bank has also established Group Risk Management function within the Risk Management Group to have a reasonable oversight on the risk management framework of the group entities. 74 HDFC Bank Limited

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements HDFC BANK’S RISK MANAGEMENT FRAMEWORK Governance Board of Directors | Board Committees Management Committees Frameworks Risk Appetite Risk Policies, Procedures and Systems Internal Capital Adequacy Assessment Process and Stress Testing Internal Compliance Assessment Control Reporting Audit Risk Identification, Risk Limits, Risk MIS & Actions Measurement, Monitoring, Approval as Mitigation applicable Risk Governance At the apex of our risk governance framework lies our Board of Directors, responsible for supervising our risk management initiatives. They’ve set up the Risk Policy & Monitoring Committee (RPMC) to ensure our risk strategy is effectively implemented. The RPMC guides the development of policies, procedures, and systems, constantly assessing their suitability for our evolving business landscape. Heading the independent Risk Management Group (RMG) is the Chief Risk Officer (CRO), who maintains regular communication with RPMC members. The RMG is responsible for executing the approved risk strategy, developing policies, procedures, and systems to manage risks effectively. An executive committee oversees the nature and quantum of risks taken as well as risk management practices across the Group Entities. Risk Frameworks and Their Implementation Given the nature of our business and the regulatory landscape, we are exposed to a spectrum of risks. Among our principal risks are credit, market, liquidity, operational, cybersecurity, and technology risks. Moreover, our operations encompass compliance and reputation risks and ESG-related risks. To manage these, we’ve instituted an overarching risk appetite framework. We have implemented specific policies, limits, and triggers tailored to each risk category to operationalise our risk appetite for individual risk types. Furthermore, we’ve undertaken thorough measures to ensure proper measurement and management of risks inherent in the activities integrated through the merger within our framework. Our structured management framework, the Internal Capital Adequacy Assessment Process (ICAAP), is designed to identify, assess, and manage all risks that could significantly affect our business, financial position, or capital adequacy. It helps us systematically analyse and address these risks to ensure the stability and soundness of our operations, protecting our business and capital adequacy from potential threats. Ensuring informed decision-making, we regularly capture and report risk exposures, initiating appropriate mitigation measures. Additionally, we continuously refine our risk models to adapt to changing circumstances. To ensure independent evaluation, the Bank has an independent Internal Audit Department for assessing the adequacy and effectiveness of all internal controls, risk management practices, governance systems, and processes. We are intensifying our attention on non-financial risks by amplifying discussions within our Risk Management and Board committees. These discussions encompass compliance, personnel, technology, reputation risks, and others. This involves enhancing our policies, procedures, and risk assessment frameworks to effectively manage these risks, with an ongoing commitment to improvement. Furthermore, we are leveraging technology to automate our risk management processes, aiming to bring efficiencies, improve accuracy, enhance user control, and maintain thorough audit trails. By embracing technological advancements, we aim to strengthen our risk management capabilities while recognising the inherent risks in technology. Risks emanating from new-age solutions based on AI/ML techniques are comprehensively assessed through the lenses of Data Privacy, Data Security, Data Quality, Model fairness, and efficacy. The Risk Management Group independently validates relevant models across the Bank. Integrated Annual Report 2023-24 75

R IS K M A N A G E M E N T KEY RISK MANAGEMENT INITIATIVES Acknowledging the significance of stress testing in risk management, the Bank conducts stress tests beyond standard scenarios. We focus on topical themes influenced by geopolitical, macroeconomic, and sectoral trends to pinpoint specific areas of our portfolio. This approach serves as an early warning system, prompting potential actions. Various stress tests have been conducted to evaluate their impact on our portfolio and identify affected borrowers. Furthermore, we implement various measures to mitigate global risks, as detailed below In the last year, the Bank has As part of our risk management made significant efforts to protect strategy, we’ve broadly assessed itself from potential global banking the impact of recent developments crises. We’ve put in place a strict in the Middle East, including the credit risk assessment process, conflict between Hamas and Israel conducting thorough due diligence and subsequent actions, as well and continuous monitoring of our as the ongoing Russia-Ukraine loan portfolio. This approach has conflict and intermittent tensions enabled us to identify and tackle between China and Taiwan. While potential credit risks promptly, Banking sector we don’t anticipate significant direct thereby minimising our exposure to instability in impact on the Bank, we’re closely the Developed such events. monitoring the situation. Economies Tighter monetary policy Growing resulting in Geo-political extended period tensions of elevated interest rates Throughout the year, the Bank has De-dollarisation taken steps to manage risks linked to increasing interest rates. These Recently, nations and market include robust risk management participants have increasingly practices, diversifying our asset sought alternatives to the U.S. portfolio, and maintaining strong dollar, exploring different currencies capital and liquidity positions. We or payment systems. The Bank stay alert, monitoring interest rate is closely monitoring the ongoing movements and taking proactive geopolitical events and shift in steps to handle any potential global trade patterns to take shocks from rising rates. necessary actions. 76 HDFC Bank Limited

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Managing Key Risks Credit Risk Capitals Impacted: F I SR N The risk which arises from default by borrowers in their terms of contract with the Bank especially failure to make payments or repayments Mitigation Credit Risk Management formulates policies and procedures to handle credit risk and maintain portfolio quality. It sets risk limits, reviews portfolios regularly, and conducts stress tests. It also oversees the strategy and underwriting functions of the Credit group, led by the Chief Credit Officer. Strategies Maintaining healthy asset quality with optimal risk-reward considerations. Compliance Risk Capitals Impacted: F The risk of legal or regulatory sanctions, as a result of failure to comply with applicable laws, regulations and standards Mitigation Robust Board-approved Compliance policy in place which is reviewed on an annual basis. The Compliance function tracks and reviews compliance with regulatory guidelines, in close coordination with business, support and operations teams. The focus is on identifying and reducing Regulatory risk by instituting a well-defined internal control framework that includes regular feedback on regulatory compliance from product, business and operation teams through self-certifications and monitoring. Besides, compliance testing of products / policies from Regulatory perspective is also undertaken to enhance the compliance culture within the organisation. Strategies Ensuring businesses work strictly within the contours of regulation. Market Risk Capitals Impacted: F The risk of potential loss on account of adverse changes in market variables which affect the value of financial instruments that the Bank holds as a part of its statutory reserves or trading activity, such as, market instruments, debt securities, equities, foreign exchange and derivative instruments. Mitigation Detailed Board-approved policies such as Market Risk, Investment, Foreign Exchange Trading, and Derivatives, combined with strong controls, minimise risks across trading desks and securities. These policies set trading risk limits in line with the Bank’s risk tolerance. Also, portfolio-level assessments and risk reduction measures are carried out. Structured products and exotics are transacted with counterparties possessing adequate risk management capabilities and systems to manage such products. Counterparty exposures are regularly monitored, and a margining framework is established in agreement with counterparts. Strategies Optimising profitability of marked-to-market products within the constraints of liquidity and market risk appetite of the Bank. Integrated Annual Report 2023-24 77

R IS K M A N A G E M E N T Operational Risk Capitals Impacted: F H Operational risk arises from inadequate or failed internal processes, people, and systems or from external events. It includes risk of loss due to legal risk but excludes strategic and reputational risks. Mitigation The Bank follows a Board-approved Operational Risk Management Policy, detailing how operational risks are governed and managed. It details on a three-line defence system: the business line (including support and operations) is the first line, the Operational Risk Management Department (ORMD) acts as the second line, and Internal Audit serves as the third line. These teams work together to manage, monitor, and reduce operational risks effectively. Strategies Minimising operational losses through risk mitigation. Technology Risk Capitals Impacted: F SR I Risks associated with the use, ownership, operation, involvement, influence, vendor related and adoption of IT systems within an enterprise, Business Continuity management and Third-party Risk management. Mitigation Our Information Technology & Digital Risk framework, along with the policies, procedures, templates, and assessment methods manage Technology Risk, Vendor Risk and Business Continuity. The framework covers the evaluation of new IT solutions, third-party vendors, outsourced IT, related services (Third Party Risk). Additionally, we’ve created a Business Continuity Management framework and rolled out the Business Continuity Programme across the Enterprise. Strategies • Ensure alignment of Business and IT Strategies to provide services availability and superior customer experience. • Making extensive progress on some of the key initiatives that are part of our technology transformation agenda. 78 HDFC Bank Limited Climate Risk Capitals Impacted: F M H SR N At a broader level, risks from climate change are typically divided into: • Physical risks—Economic losses (physical damage to property and assets) from acute impacts on account of extreme weather events (floods, cyclones, droughts, landslides, etc) attributed to climate change, or long-term chronic impacts on environment such as rise in sea levels, increased global temperature or irreversible precipitation changes. • Transition risks—The possible process of adjustment to a low carbon economy and its possible effects on the value of financial assets and liabilities including the likelihood of formation of stranded assets. Mitigation We actively support the financing and investment in environmentally friendly technologies and low-carbon infrastructure projects, leveraging our product offerings and financial expertise to assist our customers and clients in transitioning to a sustainable, low-carbon economy. We are pursuing this through three thematic areas including ESG integration in products, sustainable finance and portfolio emissions. These are discussed in detail in the subsequent chapter on ESG strategy. Strategies We partnered with an independent, reputable global agency to develop a framework for assessing climate transition risk at a counterparty level. The Bank has initiated capacity-building programs to acquaint the Board and staff members with key developments in climate risk assessment. Furthermore, the Bank has launched an internal pilot exercise to estimate financed emissions for its lending portfolio.

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Liquidity Risk Capitals Impacted: F SR Liquidity risk is the risk that the Bank may not be able to meet its financial obligations as they fall due without incurring unacceptable losses. Mitigation The Asset Liability Management policy of the bank details how liquidity and interest rate risks are managed. We’ve set up a strong system to watch cash flow mismatches and key ratios, like Basel III ratios, in both normal and stressed situations. Additionally, we have an extensive intraday liquidity risk management framework to track intraday positions throughout the day. Interest rate risk in the banking book is assessed at defined intervals to ensure it remains within our acceptable limits. Strategies • To maintain healthy liquidity as evidenced in Liquidity Coverage Ratio (LCR) / Net Stability Funding Ratio (NSFR) in line with our Balance sheet size to tide over any unforeseen stress scenarios. • Maintaining competitive cost of funds. • Transact in derivatives, if required, to maintain the interest rate profile. Reputation Risk Capitals Impacted: SR Any adverse perception about our Bank, held by any of our stakeholders, may negatively impact our ability to attract and retain customers, with the additional risk of exposing us to litigation and regulatory actions. Mitigation We keep in regular contact with our stakeholders using suitable engagement methods to meet their expectations and handle any concerns they raise. The Bank recognises reputation risk as significant in its ICAAP Policy, and we’ve set up an assessment framework to monitor it. Strategies • Delivering superior customer experience • Offering a wide range of products and services • Strengthening grievance handling mechanism Integrated Annual Report 2023-24 79

R IS K M A N A G E M E N T Cyber and Data Risk Capitals Impacted: F I Risk of cyber-attacks on our Bank’s systems through hacking, phishing, ransomware, and other means, resulting in disruption of our services or theft or leak of sensitive internal data or customer information. Mitigation We assess each cyber threat, including data privacy concerns, based on the framework of Identify, Prevent / Protect, Detect, Respond, and Recover. To mitigate these risks, we have implemented various controls such as firewalls, anti-malware, anti-advance persistent threat (ATP) systems, data loss prevention (DLP) measures, Domain-based Message Authentication, Reporting and Conformance (DMARC) solution, Red Teaming, intrusion prevention / detection systems, digital rights management, zero-trust architecture approach, and a 24/7 security operation center (SOC)., The initiative and approach to leverage AI and ML as an entire suite to proactively detect and respond to threats is managed through the deployment of next generation security incident event management (SIEM) solution augmented by Artificial Intelligence (AI) and Machine Learning (ML) capabilities along with strong User Entity Behavioral Analysis (UEBA) functionalities and built-in threat modelling. The bank has a dedicated program for attack surface management (ASM) that includes continuous attack surface discovery and hunting for weaknesses on the discovered assets. At HDFC Bank, we recognise the significance of privacy in today’s digital age and understand the responsibility we bear in handling personal data. For us, privacy is not just a legal obligation; it is a core value that underpins our operations. We remain committed to upholding the highest standards of privacy protection and ensuring that the personal data entrusted to us is handled with care. We are dedicated to protecting the privacy of our customers, employees and stakeholders by implementing robust privacy practices, embracing privacy by design, and complying with applicable privacy laws and regulations. 8 0 HDFC Bank Limited We have established a comprehensive privacy governance framework that governs our privacy program. This framework includes designated Data Privacy Officer, cross-functional privacy champions, and a clear chain of responsibility for privacy-related matters. Privacy is a fundamental consideration in the development of our products, services, and systems. We embrace the principles of Privacy by Design to embed privacy safeguards into our processes from the outset. Our teams undergo privacy training to foster a privacy-conscious mindset, and privacy impact assessments are conducted to identify and mitigate any potential risks to individuals’ privacy. Transparency is a key pillar of our privacy commitment. We maintain a comprehensive privacy policy that clearly communicates our data practices, including information on data collection, use, disclosure, retention, and individual rights. We strive to provide easily accessible information about our privacy practices through our website, user interfaces, and other relevant communication channels. The Bank also complies with ISO 27001:2013, ISO 22301:2019 and PCI DSS standards, demonstrating our commitment to information security and safeguarding customer data. Strategies • Robust governance over information and cyber security framework through various committees viz. IT Strategy, Information Security Committee (ISC), Internal Capital Adequacy Assessment Process (ICAAP), Risk Policy and Monitoring Committee (RPMC) etc. • Various mitigation measures including state of art antivirus programme, network security management, vulnerability management, cyber security and data privacy measures • Continuous information security awareness for employees and customers

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Risk of Spill-over from Subsidiaries Capitals Impacted: F SR Risk arising from subsidiaries refers to potential uncertainties or adverse events that can impact the operations, financial stability, reputation, or strategic objectives of holding company due to subsidiary operations. Mitigation The Board / Risk Management committees of each subsidiary is responsible for managing their respective material risks. The Group Risk Management Committee (GRMC) and Group Risk Council (GRC) has been instituted in our Bank to periodically review the nature / quantum of material risks of the subsidiaries and provide guidance, as deemed fit, on the risk management practices. Stress testing for the group is carried out by integrating the stress tests of the subsidiaries. Similarly, capital adequacy projections are formulated for the group after incorporating the business / capital plans of the subsidiaries. Strategies • Establishing group level oversight to monitor and manage risk across subsidiaries. • Conducting stress-test of subsidiaries to assess risks. • Including subsidiary business plans and capital positions in capital adequacy projections. Model Risk Capitals Impacted: F SR I Risk arising from the use of models, which is the potential for adverse consequences from decisions based on incorrect or misused model outputs and reports. Mitigation A well-defined, Board approved Enterprise Model Validation Policy, along with a robust framework including Pre-Deployment Validation, and periodic Monitoring, to capture, manage, and mitigate model risk. Strategies Bank has established an independent Model Validation Unit within the Risk Management Group to manage Model Risk across the Bank. Integrated Annual Report 2023-24 81

B U S I N E S S C O N T I N U I T Y M A N A G E M E N T P R O G R A M , I N F O R M AT I O N & C Y B E R S E C U R I T Y P R A C T I C E S A N D D ATA P R I V A C Y M E A S U R E S Building Resilience In an era of rapidly changing technology and ever-evolving threats, HDFC Bank remains vigilant taking proactive steps for Tomorrow’s to ensure uninterrupted services. Success We uphold stringent standards in Information & Cyber Security Practices and Data Privacy Measures, thereby safeguarding sensitive data and upholding the trust of our valued customers. Our Business Continuity Management Program is certified under ISO 22301:2019 and is designed to reliably maintain operations in the face of any unforeseen circumstances. The program also adheres to regulatory frameworks as well as undergoes rigorous reviews and audits to ensure its effectiveness. 82 HDFC Bank Limited

B U S I N E S S C O N T I N U I T Y M A N A G E M E N T P R O G R A M , I N F O R M AT I O N & C Y B E R S E C U R I T Y P R A C T I C E S A N D D ATA P R I V A C Y M E A S U R E S GOVERNANCE OVER DATA IT Strategy Committee This committee oversees various technology-related matters. Its functions include formulating IT strategy and related policies, ensuring alignment with the business strategy. Comprising mainly of Independent Directors, the committee also includes an external IT expert. Information Security Committee Chaired by the CRO (Chief Risk Officer), this Committee is tasked with reviewing Information Security Policy dispensations, taking strategic and financial decisions on Information Security plans, reviewing performance and monitoring the progress of the Information Security Program. It also discusses any significant Information Security risks, determining actions for risk remediation and approves changes to the constitution and functioning of the Information Security Committee (ISC). The Committee serves as a platform for discussing Information Security risks and oversees the enterprise security program. It convenes at least once every two months with representatives from Audit, Information Technology, Information Security Group, other enabling functions and relevant business units. 84 HDFC Bank Limited Information Security Program The Information Security Program aligns with regulatory requirements outlined by RBI as well as industry standards such as ISO 27001:2013 and the NIST framework. The Bank has established the Information Security and Cyber Security Policy which guides the execution of stringent processes and measures for the implementation of relevant security standards to ensure data security and protect sensitive business information and data assets from unauthorised access. Cyber Security Framework Our Cyber Security Framework encompasses the key components of Identify, Protect, Detect, Respond and Recover. The primary objectives of our Information Security Program include: • Documenting, disseminating, operating and reviewing information security policies and procedures • Monitoring cyber security threats and assessing the risk profile across critical assets, infrastructure components and business units/departments • Providing transparency about the Information Security Program and associated controls to Senior Management including the Board • Promptly responding to Information Security incidents and policy violations/exceptions in alignment with organisational policy • Evaluating the effectiveness of actions taken to resolve incidents and documenting the learnings to improve process efficiency

BUSINESS CONTINUITY MANAGEMENT PROGRAM,

INFORMATION & CYBER SECURITY PRACTICES

AND DATA PRIVACY MEASURES

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements OUR APPROACH TO ENSURING DATA PRIVACY Privacy Governance At HDFC Bank, customer privacy is a priority. Our robust Governance Framework includes a designated privacy officer, cross-functional privacy teams and clear responsibility chains for privacy matters. Through proactive measures, we protect personal information, cultivate privacy awareness and promptly address any privacy concerns or inquiries that may arise. Data Collection and Use Transparency is fundamental to our privacy commitment at HDFC Bank. We prioritise open communication and responsible handling of personal information. Our data collection is purposeful, gathering only what’s necessary for our services with clear explanations provided. Individuals receive straightforward privacy notices and have the opportunity to provide informed consent for data processing activities. Security and Data Protection Safeguarding personal information against unauthorised access, disclosure or misuse is a primary concern for us. We implement a comprehensive multi-layered security strategy to achieve this goal. Our approach includes robust encryption protocols, strict access controls, reliable firewalls and regular security assessments. We are focused on remaining ahead of evolving threats by investing in state-of-the-art technologies and adopting industry-leading best practices. Privacy Education and Awareness At HDFC Bank, nurturing a culture that values privacy is a key commitment. We focus on educating and raising awareness among our employees through extensive privacy training programmes. These efforts highlight the significance of their roles in protecting personal information. We keep our team well-informed about privacy matters, emerging risks and best practices through regular updates and open communication channels. Privacy by Design We make privacy a top consideration in crafting our products, services and systems. We completely embrace the principles of Privacy by Design, ensuring that privacy protections are woven into our processes right from the start. Our teams undergo privacy training to foster a culture that respects privacy. We conduct privacy impact assessments to detect and address any potential risks to individual privacy. Integrated Annual Report 2023-24 87

E S G S T R AT E G Y E N C O M P A S S I N G S U S TA I N A B L E F I N A N C E TransformingESG considerations are becoming key factors in decision-making for organisations and investors alike, Bankingprimarily driven by changing regulations, customer preferences, and the material impact these considerations have on financial performance. Financial Institutions have an essential role to play in addressing sustainability challenges, facilitating the transition to a low-carbon economy, and stimulating sustainable development. There are increasing expectations for Banks to embrace sustainable practices from the perspective of borrower credit evaluation, making this a key focus area for regulators, investors, and other stakeholders. Moreover, financial products with environmental, social, and governance (ESG) elements, such as green bonds and social bonds are being curated to satisfy the increasing demand for sustainable investment options. Additionally, Banks are also increasingly incorporating ESG considerations into their risk management practices, including climate scenario analysis and climate-related stress testing. In response to the growing focus on climate change and ESG factors, regulatory bodies across many jurisdictions are also implementing stricter disclosure requirements. 88 HDFC Bank Limited

ESG STRATEGY ENCOMPASSING

SUSTAINABLE FINANCE

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Sustainable Finance Sustainable finance is an organic continuum of our ESG strategy. The ESG strategy has set the foundation for the Bank to channel its resources towards sustainable projects. With ESG gaining momentum as a key factor in business decision making, the Bank is leveraging sustainable finance as one of its key ESG strategies in the form of enhanced environmental and social due diligence in lending and investment decisions thematic investing, ESG engagement and sustainable finance frameworks. Directing capital towards sustainable projects allows us to integrate ESG as the fundamental determinant in our core lending strategy, and generate a positive impact through our business model. Being one of the key players in the banking industry, we recognise our role in facilitating the transition to a low-carbon economy. With our pan-India presence and strong customer relationships, we aim to drive positive change by promoting environmentally friendly technologies and financing sustainable infrastructure projects. We actively support the financing and investment in environmentally-friendly technologies and low-carbon infrastructure projects, leveraging our product offerings and financial expertise to assist our customers and clients in transitioning to a sustainable, low-carbon economy. The Bank has identified its products as one of the foremost business focus areas wherein ESG risks, and opportunities will be considered for improvement in systems and processes, taking into account the expectations from various stakeholders including investors and regulators. The Bank is pursuing this through three thematic areas including ESG KEY TENETS OF SUSTAINABLE FINANCE Sustainable Finance Framework Management ESG of portfolio Integration emissions in Products integration in products, sustainable finance and portfolio emissions. As the next step, long-term targets to strive to contribute to a more sustainable future are being set. ESG Integration in Products We have adopted a robust five-dimensional approach for steadily incorporating ESG factors into the design, development, and management of our products with the aforementioned “Environmental Social Governance Risk Management Policy”. This integration is guided by our board approved ESG Risk Management Policy that overlooks assessment, management and monitoring of material ESG risks in our lending portfolio in line with global ESG / Climate Change assessment standards and practices. “ESG Risk Management” framework, is a part of the overall credit assessment process for our wholesale corporate borrowers and has replaced the erstwhile “SEMS Framework”. This framework under the aegis of our ESG Risk Management Policy ensures thorough Environmental and Social Due Diligence of various loan proposals above the defined credit exposure thresholds, including direct customer loans (exceeding H100 Crore), wholesale loans (ranging from H50 Crore to 100 Crore), supply chain finance, offshore, and capital market loans (exceeding H50 Crore), as well as loans to banks, financial institutions, or NBFCs (exceeding H50 Crore). For large project financing transactions, particularly those that are specialised and long-term, we conduct additional due diligence beyond the standard borrower-level assessment carried out in all Credit Approval Memorandums (CAMs). This involves the engagement of a Lenders’ Independent Engineer (LIE) who evaluates various environmental and social aspects pertinent to the transaction. The LIE Report encapsulates identified risks along with suggested mitigation measures. Pre-disbursement compliance mandates the implementation of these measures, which are then continuously monitored throughout the project’s implementation phase. Should any adverse developments arise, corrective action is promptly taken. Under the revised framework, the assessment of ESG and climate change risks is also conducted basis borrower’s overall ESG performance and climate change risks in relation to our total loan portfolio. This applies when our aggregate credit appetite surpasses a certain threshold, instead of evaluating each loan individually. The primary objective of this assessment is to evaluate the borrower’s current position regarding ESG and climate change considerations so that we can analyze their transition plans and initiatives for mitigating risks associated with these factors. This assessment becomes a mandatory section included in Credit Integrated Annual Report 2023-24 91

E S G S T R AT E G Y E N C O M P A S S I N G S U S TA I N A B L E F I N A N C E Appetite Memos (CAMs) exceeding a specific credit appetite threshold. Environmental Impact Assessment • Adverse impact that the operations of the borrower could have on environment and the steps taken by the borrower to mitigate such effects • These include potential Air/Water pollution and greenhouse gas emission levels, hazardous waste generation, radiation levels etc. as applicable • Adherence to statutory norms with respect to environmental pollution and possession of various licenses/ certificates/permits needed from the requisite statutory bodies/agencies • Systems and processes in place to mitigate risks arising out of various potential adverse environmental impacts Social Impact Assessment • Land acquisition, payment of fair compensation, resettlement & rehabilitation • Adherence to statutory norms with regard to labour law, workmen compensation, payment of worker dues, etc. • Policies in place to counter inappropriate labour practices (employment of child/forced labour), anti-sexual harassment policies and human rights policies etc. Governance Aspects • Good governance practices to combat bribery, corruption and money laundering • Executive compensation • Adequate representation of shareholders in management • Composition and diversity of Board of Directors Climate Change Assessment • Potential impact of climate change on borrower’s operations and vice versa • Assessment of physical & transition risk Positive Contribution of the Borrower towards the Environment and Social Issues • Efforts made towards conservation of biodiversity and ecological balance • Community engagement 314 CAMs assessed for ESG & Climate Change impacts during the year ended March 31, 2024 with a cumulative value of H8,14,583 crore COVERAGE OF OUR ESG & CLIMATE CHANGE ASSESSMENT TEMPLATE Social Governance Impact Aspects Assessment Environmental Climate Impact Change Assessment Assessment Positive contribution of the borrower towards the environment and social issues. 92 HDFC Bank Limited

ESG STRATEGY ENCOMPASSING

SUSTAINABLE FINANCE

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements framework itself. Our plan for monitoring and tracking our sustainable finance portfolio will enable us to identify and utilise climate transition value creation opportunities. Sustainable bonds worth USD 300 million in February 2024 with three-year maturity have been issued under our Sustainable Finance Framework. We shall prioritise allocation towards MSMEs/Affordable housing under the social category and Clean Transportation—Electric Vehicles under the green category for issuance of sustainable bonds. Renewable Energy Financing FY24 22,026 10,052 FY23 15,115 6,110 FY22 14,839 5,860 FY21 10,869 2,945 Cumulative Underwritten amount (H Cr) Cumulative RE Capacity financed (MW) Managing Our Portfolio Emissions As a progressive financial service company, we embrace our responsibility to incorporate environmental considerations into our investment decisions. Through our investments, we look forward to driving the transition towards a sustainable, low-carbon economy while mitigating the risk of stranded investments. This includes firming up a strategy to integrate environmental risks, including those stemming from climate change, into our underwriting and portfolio screening processes in the long term. Our lending procedures are guided by borrower and market demand, but our credit exposure is well-diversified, with no single industry having a high concentration. As a result, our credit exposure to ecologically/socially sensitive industry sectors has minimal negative consequences Total outstanding loan on fossil fuels (coal and lignite) and their extraction make up to only about 1% of our total loan portfolio. Integrated Annual Report 2023-24 95

E NV I R O N M E N T Driving We remain firmly committed to environmental responsibility and recognise the ever-growing need to Environmental minimise our environmental footprint across our entire value chain through responsible financing practices. Change We are actively driving down our most significant environmental impacts through a strategic combination of time-bound, progressive, and measurable initiatives. 96 HDFC Bank Limited

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Key Developments in Environmental Disclosures During the financial year 2023-24, the erstwhile HDFC Investments Limited (“eHDFC Investments”) and erstwhile HDFC Holdings Limited (“eHDFC Holdings”), merged with and into erstwhile Housing Development Finance Corporation Limited (“eHDFC Limited”) and thereafter eHDFC Limited merged with and into HDFC Bank Limited, thus the non-financial information of the Bank for the year ended March 31, 2024 includes the information from the operations of eHDFC Limited, eHDFC Investments and eHDFC Holdings for the period from July 01, 2023 to March 31, 2024. Hence, non-financial information of the Bank for the year ended March 31, 2024 is not comparable with that of the previous financial year. Pillars of Environmental Governance Environmental governance is essential for managing risks, ensuring compliance, enhancing reputation, fostering sustainability, and seizing opportunities in the transition to a more environmentally responsible economy. Our Board of Directors play a proactive role in environmental governance by setting the strategic direction for sustainability initiatives. At the management level, the ESG Apex Council is supported by three dedicated working groups- Environment; Social & Governance; and Product Responsibility. The ESG Apex Council and Working Groups work together seamlessly to ensure all environmental considerations are integrated when recommending policies, products, and other ESG initiatives. ESG Apex Council Environment Working Group guides key Sets targets and identifies opportunities for Corporate Social initiatives, reviews improvement in areas of emissions, energy, Responsibility & policy frameworks water and waste ESG Committee for board approval, and oversees Social & Governance Working Group amendments Focuses on workplace policies including to existing Code of Conduct & Human Rights, diversity, ESG policies. stakeholder engagement and corporate governance policies Product Responsibility Working Group Focuses on assessing Environmental risks, identifies new business opportunities in the Environmental space and works on developing ESG Working ESG products and/or policy frameworks, as Groups may be applicable Integrated Annual Report 2023-24 97

Metrics and Targets In alignment with the regulatory developments and stakeholder expectations, we continuously strive to identify material key performance indicators (KPIs) for reporting our environmental performance. We maintain a vigilant monitoring system for the identified KPIs and for the outcomes of new initiatives across all our operations. These KPIs encompass metrics related to energy consumption, greenhouse gas (GHG) emissions, water usage, and waste management. The valuable insights drawn from the monitored data are used for decision-making and target-setting that propels us forward in our sustainability journey. We are expanding our reach by opening new branches, particularly in unbanked semi-urban and rural areas; this expansion necessitates increased investment in infrastructure, personnel and technology to fortify data collection across all locations – which remains an instrumental component of our progress towards our sustainability goals. Three years ago, the Bank set an ambitious goal of achieving carbon neutrality on emissions from its own operations by FY32. Our recent successful merger and expansion is a significant achievement, which necessitates revisiting our strategy to ensure continued progress. While the FY32 target remains unchanged, the expansion has temporarily impacted data comparability between the current year and previous years – necessitating a potential adjustment to our interim targets on energy and emissions to reflect our growing footprint. E NV I R O N M E N T Our Energy Performance As a service-based industry, energy plays a critical role in our operations. In FY24, we consumed 3.03 million GJ of energy – which has increased by 1.06 million GJ on account of our increased operational footprint. Energy Consumption GJ Diesel: DG Set 217,433.30 Diesel: Company Cars 59,430.60 Petrol: Company Cars 220,822.20 Grid Electricity (no 2,523,514.68 renewable attributes established) Renewable Electricity (Solar 11,772.84 Rooftop & Green Tariff) Total 3,032,973.62 Notes: • Energy consumed from fuels include energy from consumption of petrol and diesel in company-owned vehicles and gensets. • For gensets and company-owned vehicles, petrol/diesel purchase data is extracted from the Bank’s financial records and the cost of petrol/diesel purchased is converted into litres of petrol/diesel using state-wise/national average rates derived from information in the public domain. • Electricity consumption from local grids is considered for (i) branches, offices and ATMs from financial records through spent based approach and (ii) data centers on actual consumption. Electricity consumption from renewable energy sources is (i) generated through in-house solar rooftops installed at 25 locations and (ii) purchased ‘green’ energy for 12 locations. While some of our operations do use fossil fuel as primary energy (such as in generators for backup purposes and in company owned vehicles), majority (83.59%) of our energy consumption is in the form of electricity (2.54 million GJ). Most of this electrical energy is primarily procured from the grid-although we continue to look out for sources of renewable energy (RE) to replace grid energy, wherever feasible. In FY24, our energy intensity stood at 9.87 GJ/H Cr Revenue from Operations, with a decrease of 3.68% compared to FY23. Total Energy Consumed (million GJ) FY24 2.54 0.50 FY23 1.56 0.41 FY22 1.31 0.29 FY21 1.19 0.21 Electrical Energy    Energy from fossil fuels Energy Intensity (GJ/H Cr Revenue from Operations) FY24 9.87 FY23 10.24 FY22 10.15 FY21 9.58 Note: Energy intensity has been computed based on total revenue, which includes interest earned under Schedule 13 and other income, excluding profit/(loss) on sale of buildings & other assets (net) earned under Schedule 14 of the audited Standalone Financial Statements of the Bank. As part of our ongoing efforts to reduce our carbon footprint, we are integrating renewable energy sources into our power consumption, including through captive solar panels in certain offices, where feasible. Through the recent merger, our rooftop solar portfolio has expanded. We have now commissioned a total of 25 rooftop solar installations (14 added as a result of the merger), with a total capacity of approximately 720 kWp, resulting in avoidance of 451.83 tCO2e emissions from the provision of 631.05 MWh of electricity to our operating locations during FY24. Moreover, 12 of our offices and branches continue to source their power from renewable sources through

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements a premium green tariff offered by DISCOMs. Procurement of 2,639.19 MWh of electricity under the ‘Green Tariff’ arrangement with the DISCOMS during FY24, has resulted in reduction of about 1,889.66 tCO2e emissions. Emissions Avoided through Increase in Solar Energy Consumption Emissions Avoided (tCO2e) FY24 451.83 FY23 239.02 Solar Energy Consumption (MWh) FY24 631.05 FY23 336.65 Despite a growing market for open access procurement of renewable energy, and the introduction of progressive rules like “Promoting Renewable Energy through Green Energy Open Access Rules, 2022, and Promoting Renewable Energy Through Green Energy Open Access (Second Amendment) Rules, 2023, there remain a number of regulatory and market challenges for us to scale up our RE procurement. Several states are yet to adopt the Rules in the form of Regulations for implementation of Green Energy Open Access (GEOA) at the state level, hindering the pace of adoption of open access RE across our locations. We consider it crucial to eliminate these external challenges to enable at-scale adoption of green power across our distributed consumption centres. Buildings Management and Green Buildings: To support our decarbonisation efforts, we are actively engaged in reducing energy consumption across all aspects of our operations. This objective is achieved through a multifaceted approach, including the regulation of existing equipment, installation of energy-efficient alternatives, and the implementation of automated energy management solutions. Our comprehensive energy management and efficiency strategy encompasses various initiatives, reflecting our commitment to sustainable practices and mitigating climate change. By leveraging digital systems and data analytics, we gain valuable insights into energy consumption patterns. Our focus extends to maintaining branches at optimal temperatures, improving power efficiency and automating energy-consuming assets. These initiatives enable us to optimise energy usage, enhance operational efficiency and reduce our environmental footprint. In FY24, the Bank accounted for electricity consumption from all four of our co-located data centers. We are also implementing measures to increase the energy efficiency of our data centres which also leads to operational efficiency enhancement. OUR DATA CENTRE EMISSION REDUCTION INITIATIVES Upgradation to efficient, Replacement of old Deployed new fire cooling systems, storage and servers with suppression system with cold-aisle containment new-generation hardware NOVEC 1230 gas Use of Hyper Convergence All our data centres are TIA-942 Implementation of smart iPDUs IT Technology for IT asset Rated-3 Certified for asset level energy monitoring consolidation and virtualisation Integrated Annual Report 2023-24 99

We have incorporated several changes within our infrastructure to improve energy efficiency through auto controls & environment-friendly equipment, and have installed centrally controlled energy management system in about 568 branches across India as on date. This system has allowed us to control consumption patterns, resulting in savings to the tune of 16 per cent annually on an average. We are using technology and innovation as facilitators in our journey towards low-carbon growth. We have implemented elevator and equipment scheduling to reduce our energy consumption. We have also installed occupancy sensors, capacitor banks as well as Building Management Systems at several of our operating locations. The energy management modules with auto controls deployed across select branches have resulted in significant energy savings. We have also piloted the use of modular UPS in our branches and plan to scale it further. Additionally, all air conditioners in our new premises will conform to the latest standards developed by Bureau of Energy Efficiency (BEE). Moving beyond energy consumption, we have taken it upon ourselves to implement other green measures including waste and water management in our existing and new fit-outs. We intend to adopt a more holistic approach towards reducing our environmental footprint at our operating locations. As of March 31, 2024, a total of 2,026 projects in different cities are certified under the Green Interiors Rating System of the Indian Green Building Council (IGBC). We intend to ensure that all our upcoming branches are evaluated for green building certification. IGBC’s comprehensive rating modules encompassing Eco Design Approach, Interior Materials, Water 10 0 HDFC Bank Limited E NV I R O N M E N T OUR BUILDING 2,026 offices and branches are Indian Green Building Council (IGBC) Certified. Our Bangalore Data center ‘Net magic· DC3B’ is certified green data center under the IGBC Green Data Center Rating System Conservation, Indoor Environment, Energy Efficiency, and Innovation in Interior Design have been diligently implemented and met with excellence throughout our certified branches and offices. Additionally, some of our offices are also LEED certified. We prioritise environmental sustainability and have been using GreenPro certified materials such as plywood, laminates, flooring tiles, ceiling tiles, paints, adhesives, finishes, and equipment at our select locations. Additionally, we include low VOCs (Volatile Organic Compounds) finishes in our Bills of Quantity and contractor tendering process. GHG Emissions We are dedicated to playing our part in addressing climate change and promoting sustainable practices not OUR BUILDING MANAGEMENT INITIATIVES 41.40 lakh units saved across 568 branches with Smart IoT Based Building Management System 2024 Environment + Energy Leader Award in Environmental Impact category for “IOT based Energy Management Program” only within our operations but also throughout our value chain. However, collecting complete and accurate activity data from our myriad locations of varying sizes and nature, is one of our key challenges and hence a strategic priority action area for us. We are continuously enhancing our data collection processes and exploring suitable technological / automation solutions to collect data and enhance stakeholder confidence on completeness & accuracy of our inventory. In FY24, our total Scope 1 and 21 footprint stood at 0.59 million tCO2e. Scope 3 emissions from three categories2 stood at 0.06 million tCO2e. Overall, our Scope 1 emissions accounted for 12.97 per cent, Scope 2 emissions accounted for 

OUR BUILDING MANAGEMENT INITIATIVES 77.33 per cent, and Scope 3 emissions accounted for 9.70 per cent of our total reported emissions. In our ongoing efforts to enhance completeness of our GHG inventory, in FY24, we expanded our Scope 1 inventory to include fugitive emissions from Air Conditioners (ACs) and Fire Extinguishers (FEs). Together, these two new sources contribute over 50 per cent of our total Scope 1 emissions. Out of the total Scope 1 emissions, fugitive emissions from ACs contribute 53.00 per cent, followed by emissions from fuel consumption in company-owned vehicles with a share of 23.93 per cent. Emissions from fuel consumption in gensets emerge as the third-largest contributor with a share of 19.21 per cent in the total Scope 1 emissions, followed by fugitive emissions from fire extinguishers accounting for a share of 3.87 per cent. Our Scope 2 emissions encompass emissions associated with electricity purchased from the grid at all locations that are under the operational control of the Bank as well as our co-located data centers. We are continuously taking measures to seek ways to reduce our Scope 2 emissions through interventions in our own operations and through collaboration with our data center service providers. We report our Scope 2 emissions using location-based as well as market-based approach as per the WRI GHG Protocol. Electricity consumption at our other ATMs3, along with emissions on account of air travel, car/cab travel, train travel, paper waste, battery waste, and e-waste generated contribute to our reported Scope 3 emissions that cover Categories 5, 6, and 8 as per the Technical Guidance for Calculating Scope 3 Emissions (version 1.0) by WRI Greenhouse Gas Protocol. Total GHG Emissions (million tCO2e) FY24 0.09 0.50 0.06 FY23 0.03 0.31 0.05 FY22 0.02 0.29 0.04 FY21 0.01 0.30 0.01 Scope 1    Scope 2    Scope 3 Total Emissions (0.65 million tCO2e) 9.70% 12.97% 77.33% Scope 1    Scope 2    Scope 3 Our Scope 1 emissions increased from 0.03 million tCO2e in FY23 to 0.09 million tCO2e in FY24. This rise is primarily attributed to inclusion of two new sources of fugitive GHG emissions—ACs and fire extinguishers, apart from some increase on account of increased fuel consumption in company-owned vehicles due to increased employee activity during the reporting period. Scope 1 Emissions (million tCO2e) FY24 0.02 0.02 0.04 0.003 FY23 0.01 0.02 FY22 0.01 0.01 FY21 0.01 0.01 Company-owned Vehicles    Gensets    Air Conditioners*    Fire Extinguishers* *This is our first-year reporting on fugitive emissions from ACs and Fire Extinguishers 1Includes Scope 2 emissions calculated as per market-based approach. 2These include Category 5 (Waste generated in operations), Category 6 (Business Travel), and Category 8 (Upstream leased assets) 3Referred to as ‘Other facilities’ in previous years’ reports. Integrated Annual Report 2023-24 10 1

In FY24, we witnessed an increase of 0.20 million tCO2e in Scope 2 emissions despite 3,270.23 MWh of our electricity consumption having renewable energy attributes (generated from solar rooftop and procured through green tariff). This increase can be attributed to several factors including an increase in the number of locations under our operational control on account of merger with eHDFC Limited with effect from July 1, 2023 and our rapidly increasing geographical footprint to serve underbanked regions. Further, as a result of the merger in order to ensure uniformity across our reporting boundary, the Bank used a spend-based approach for estimation of procured electricity. We are using actual electricity procurement data for our data centers which contributes to 4.18 per cent of our Scope 2 emissions. For non data center locations, as E NV I R O N M E N T we make continued efforts towards collecting actual kilowatt-hour data, for FY24 we have relied upon the spend-based approach to estimate our procured electricity consumption using estimates of applicable city/state level tariffs. In FY24, our Scope 3 emissions increased over FY23. The emissions from purchased electricity at our ‘other Scope 2 Emissions (million tCO2e) FY24 0.50 FY23 0.31 FY22 0.29 FY21 0.30 ATMs’ accounted for 70.27 per cent of our total Scope 3 emissions. In comparison to FY23, the emissions from our ‘other ATMs’ have increased by 36.94 per cent. Apart from these ATMs, emissions from business travel witnessed a 13.81 per cent increase and that from waste generated in operations increased by 18.43 per cent. Scope 3 Emissions (tCO2e) Category 5: 4,286.78 Waste generated 3,619.80 3,009.94 in operations 2,961.75 Category 6: 14,426.78 Business 12,676.34 6,551.30 travel 6,212.59 Category 8: 44,232.16 Upstream 32,300 33,136.06 leased assets 0 FY21    FY22    FY23    FY24 During FY24, our Scope 1+2 GHG emissions intensity increased by 9.14 per cent y-o-y per H Crore revenue from operations, respectively. GHG Emissions Intensity: Scope 1 & 2 (tCO2e/H Cr Revenue from operations) FY24 1.91 FY23 1.75 FY22 1.94 FY21 2.09 Notes: Scope 1 & 2 emission intensity has been computed based on Total Revenue which includes interest earned under Schedule 13 and other income, excluding profit/(loss) on sale of buildings & other assets (net) under Schedule 14 of the Audited Standalone Financial Statements of the Bank. 10 2 HDFC Bank Limited Measures to Reduce GHG Emissions We remain committed to implementing meaningful and system-driven changes within the organisation to reduce the GHG intensity of our operations. Three years ago, we set a bold goal: achieving carbon neutrality for our Scope 1 & 2 emissions by FY32. To that end, we have adopted firm-level guidelines for operations and procurement encompassing supply-side and demand-side interventions; and established a carbon neutrality pathway to guide our progress, even as our operations have grown. The recent merger with eHDFC Ltd. presents exciting opportunities for growth, while also necessitating a strategic review of our carbon neutrality strategy. The observed increase in Scope 1 & 2 greenhouse gas emissions prompts us to adopt a more holistic approach. We will be reviewing our baseline emissions and setting a new, post-merger baseline in alignment with base year recalculation methodologies of the WRI Greenhouse Gas Protocol. This comprehensive review and realignment will allow us to continuously adapt and strengthen our efforts. 

Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Statutory Reports and    Financial Statements Emission Scope Emission Source Emissions (tCO2 e) Scope 1 Diesel consumption in gensets 16,166.86 Company-owned vehicles 20,145.59 Air Conditioners 44,612.10 Fire Extinguishers 3,255.93 Scope 1 (Total)    84,180.48 Scope 2 (Market-Based Approach) Electricity 501,899.03 Scope 3    Category 8: Upstream leased assets Purchased electricity in ‘other ATMs’ 44,232.16 Category 6: Business Travel Cab hire 7,190.25 Air travel 7,235.78 Rail travel 0.75 Category 5: Waste generated in operations E-Waste 0.02 Paper Waste 4,286.76 Scope 3 (Total)    62,945.73 Notes: • For air conditioners, the Bank’s Fixed • Business Travel (Cab Hire): The distance • Scope 1 emissions include emissions from Asset Register for ACs sets the boundary, is calculated using estimates of applicable company-owned cars, gensets, fugitive with asset characteristics derived from taxi fares available in the public domain. emissions from air conditioners and internal databases. Emissions have For travel within India, the applicable fire extinguishers. been calculated using India’s refrigerant emission factors have been sourced from trends, average capacity of refrigerant as India Specific Road Transport Emission • Two sources of GHG emissions i.e. Air provided by vendors, refrigerant leakage Factors, 2015. For travel outside India, Conditioners and Fire Extinguishers have as considered from Council on Energy, emission factors for average diesel cars been included for Scope 1 emissions for Environment and Water (CEEW) and from DEFRA have been considered. FY 2023-24, which were not included in GWP derived from IPCC AR 6. Scope Scope 1 emissions for FY 2022-23 • Emissions from e-waste, paper waste and 2 emissions are reported using market- battery waste have been considered. To • For the computation of emissions from based approach with grid emission factor calculate emissions, recycling emission company-owned cars and gensets, from Version 19 of the Central Electrical factors and conservative emission factors emission factors from IPCC guidelines Authority’s CO2 database. for disposal have been sourced from 2006 have been applied to quantities For Scope 3 GHG emissions, the Bank WARM Version 16, EPA 2023. For the deemed for energy consumption in ‘Our reports on the below categories: computation of waste quantities, refer Energy Performance’ section. notes given under BRSR Principle 6, • Business travel through air and rail: The • Fugitive emissions for fire extinguishers are distance travelled is estimated using Essential Indicators: Question 9. estimated using operational database and sources available in the public domain. • Emissions from ‘other ATMs’ (i.e. electricity public factors on leakage from USEPA’s The applicable emission factors have been consumption for ATMs with no operational guidance, with GWP values derived from sourced from India Specific Air Transport control): Electricity consumption at these Intergovernmental Panel on Climate Emission Factors, 2015 for domestic, locations has been derived using internally Change Sixth Assessment Report (IPCC Department for Environment, Food & Rural derived benchmarks (i.e. Geo-climatic AR6). Affairs (DEFRA) 2023 for international and averages of kWh consumption from other India Specific Rail Transport Emission offsite ATMs). Factors, 2015 for rail. Integrated Annual Report 2023-24 10 3 

E NV I R O N M E N T Our Carbon Neutrality Pathway Demonstrating our unwavering commitment to environmental sustainability, we have set an ambitious goal of achieving carbon neutrality for our Scope 1 & 2 emissions by FY32. Our performance against our interim targets for FY24 is illustrated in the figure below. With our ever-expanding footprint, we acknowledge the challenges on our path to carbon neutrality. While our ultimate target for FY32 remains unchanged, recent, unanticipated changes in our organisational structure have necessitated a review of our carbon neutrality strategy and its various milestones and levers. Therefore, we will be realigning our interim targets to account for our enhanced organisational boundary (following the merger with eHDFC Limited as well as the enhanced operational boundary (new sources of Scope 1 emissions and increased physical footprint). Scope 1+2 Emissions (in million tCO2e) 0.33 0.31 0.31 0.3 0.29 0.29 0.27 0.25 0.59 0.34 0.15 0.31 0 0 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 Actual Emissions    Emission Projection Actions Taken in FY24 This year, we actively implemented our carbon neutrality strategy, focusing on both demand-side and supply-side initiatives. While some measures were introduced later in the reporting period, we are confident they will translate to significant emission reductions starting in the near future. Demand Side Automated energy Active Harmonic Filter management system 568 86 Locations Locations 4.19 Million + ~0.15 Million Units saved Units saved 3,000 tCO e ~111 tCO2e 2 Emissions reduced Emissions reduced Supply Side Installed solar panels in our office buildings 720 kWp 25 Cumulative solar power Offices with rooftop generation capacity solar plants installed commissioned* (*as of March 31, 2024) 10 4 HDFC Bank Limited

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Focus Areas for Future Provision of open access renewable power, as a cleaner energy source for office premises Green Projects (Offices and Branches) Implementation of Internet 2 Projects of Things (IoT) system at our branches across India, for IGBC Platinum certified energy savings 110 Projects IGBC Silver certified 1,914 Projects Installation of Active IGBC Gold certified Harmonic Filters at our branches for achieving unity 2,026 projects in different locations are certified under the power factor (UPF) Green Interiors Rating System of IGBC as of March 31, 2024. Chiller replacement projects across various branches Transition of select offices to Green Power Tariff along with implementation of Variable Frequency Drives 12 1,889.66 tCO e (VFDs) in chiller systems and 2 IE5 pumps Premises covered Emissions reduced 2,639.19 MWh Electricity procured through Green Tariff Auto Control and Monitoring System across India to optimise energy usage Integrated Annual Report 2023-24 10 5 

E NV I R O N M E N T As a responsible bank, we recognise our impact on the environment beyond our core operations. While we diligently address emissions within our operating boundary, we also acknowledge the importance of taking measures outside our direct operations. We have thus, prioritised two key aspects that have a direct impact on reducing GHG emissions within our value chain: paper waste reduction and tree plantation. G H G E M I S S I O N R E D U C T I O N A C R O S S V A L U E C H A I N Our digital products We have launched Our digitised Where paper use We made an eco-and services, along an ambitious processes and is unavoidable, conscious effort with automation of tree plantation products have we are switching of responsibly several internal as initiative and helped customers to recycled paper. disposing flex well as customer- have successfully reduce their In FY24, recycled materials from linked processes planted over 30 frequency of visits paper constituted eHDFC Ltd’s and channels, lakh trees to date. to the Bank’s 7.07% of our total signage transition have enabled us This program has branches, ATMs, paper procurement to HDFC Bank. To to reduce paper not only resulted and offices—thereby which reduces the prevent unintended waste generation. in significant reducing associated upstream emissions reuse, we The ‘Green Event reductions in our emissions. associated with collaborated with Guidelines’ rolled GHG emissions but paper procurement. signage converters out by our retail has also served to deliver all our marketing team has as a catalyst 6.76 tonnes of helped save about for enhancing flex waste to the 58.09 lakh sq. ft. our social and cement plants for of paper during the relationship capital. environmentally reporting period. friendly co-processing, setting a pioneering example. 10 6 HDFC Bank Limited

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Waste Management Our goal is to work progressively generated as well as waste avoided. As the first step towards improved towards sustainable management The roles and responsibilities of environmental stewardship, we are of the waste generated from our various functional departments progressively enhancing the quality operations. We are in the advanced have been defined to improve data and accuracy of our sustainability stage of formalising the internal governance and management with an disclosures. This includes reporting standard operating procedures for aim to minimise waste generation and waste generation and disposal by end-monitoring and reporting of waste enhance the share of waste recycled. use for various categories. Total Waste Total Waste Total Waste disposed through S.No Category of Waste Generated (tonnes) Recycled (tonnes) other operations (tonnes) 1 Plastic waste 252.61 0.00 252.61 2 E-waste 110.58 109.74 0.84 3 Battery waste 20.51 20.51 0.00 4 Other Hazardous waste (used DG Oil) 89.85 0.00 89.85 5 Other Non-hazardous waste generated 288.48 10.16 278.31 6 Paper waste (Other non-hazardous waste) 3441.49 0.00 3441.49 Notes: E-Waste generated, recycled and disposed, Paper waste majorly constitutes paper and non-hazardous waste are extrapolated includes IT related e-waste and data centers procured for the Bank’s own use and is based on actual data collected at select e-waste which is centrally managed and shown as sector-specific paper waste. The locations and the quantity of waste generated recycled through vendors. quantity of waste generated is assumed to be is assumed to be disposed through other disposed through other disposal operations. disposal operations. From FY24 onwards, battery waste is being reported separately. Battery waste is centrally Generation of plastic waste, hazardous managed and recycled through vendors. waste, some quantities of paper & e-waste We recognise our responsibility and tracking program. Through internal strive to ensure that all these wastes consultations and collaboration with are disposed responsibly. vendors, we will progressively track Responsible waste management is dry waste across more facilities over critical to minimising our environmental the next few years. We recycled footprint. This includes minimising 109.74 tonnes of e-waste and 20.51 waste generation, promoting tonnes of batteries n FY24, all handled responsible disposal practices, by authorised recyclers. and ensuring proper handling At some of our locations, used diesel and processing. oil is produced due to the operation We achieve this through partnerships of gensets which is classified as with authorised recycling vendors for hazardous waste and disposed using various waste streams. Furthermore, approved, authorised vendors. we are actively expanding our waste Integrated Annual Report 2023-24 10 7 

E NV I R O N M E N T Water Conservation on reducing our overall water usage Water Intensity through the implementation of water- (kl/H Crore Revenue from Operations) Reflecting the nature of our business, saving practices and technologies. our water consumption is primarily In our IGBC-certified branches, FY24 1.57 for domestic purposes and drinking. all washrooms are equipped with FY23 2.07 We obtain water from municipal or low-flow fixtures and sensor-based third-party suppliers at most of our urinals with a flow rate of 1 to 1.5 Notes: locations. Effective water management liters per flush. Our total estimated Water intensity has been computed based on requires accurate assessment 5 Total Revenue which includes interest earned of performance data. We will be water consumption for FY24 is and other income, excluding profit/(loss) on prioritising measuring and monitoring approximately 4,81,615.63 kl. sale of buildings & other assets (net) earned under Schedule 14 of the Audited Standalone The wastewater generated by the Financial Statements of the Bank. water usage across our facilities, Bank is sent to third party. with a focus on larger sites first. Besides our operation, we also have This phased approach allows us to an impact outside our operational gather data, refine our strategy, and boundaries by working with gradually expand meter coverage in communities to conserve water and the coming years. to rejuvenate water bodies. The As we continue to strengthen details of this can be found in our our systems for monitoring water ‘Social- Communities’ chapter. consumption, we are also working 5Water withdrawn is estimated based on the document by the Central Ground Water Authority (CGWA), which specifies that an office employee consumes 45 liters per day per head. This amount is recorded as water withdrawn from third party source. Water discharged is considered as 80% of the water withdrawn from source, based on Central Pollution Control Board (CPCB) database report dated December 24, 2009. Therefore, it is assumed that of the total water withdrawal, only 20% is consumed. The data for FY 22-23 has been aligned using the above approach. 10 8 HDFC Bank Limited 

ENVIRONMENT

E NV I R O N M E N T Commitment to Climate- Reporting Frameworks Assessment Framework related Disclosures The Bank is dedicated to maintaining • We endeavor to align with • We have been reporting to transparency and accountability climate risk related disclosures the Carbon Disclosure Project in its climate-related disclosures. as per Task Force on Climate- (CDP)—responding to its climate Our approach to reporting adopts Related Financial Disclosures change questionnaire. global frameworks in accordance (TCFD) framework. • The Bank scored a ‘B’ in its Climate with nationally available guidance • FY24 is the fourth year of HDFC Change 2023 response. and frameworks. Bank’s reporting in line with TCFD. • We have been participating in • We have been reporting on ESG S&P Corporate Sustainability KPIs in alignment with the Global Assessment reporting since FY19. Reporting Initiative (GRI) In 2023, the Bank was ranked in since FY14. FY24 is the tenth the 89th percentile. year of HDFC Bank’s reporting in alignment with the GRI. • We have been complying and reporting in line with the SEBI-stipulated BRSR framework in our annual disclosures. Training and Capacity We have e-learning modules We also conduct targeted Building on ESG and Climate on climate change and GHG capacity-building initiatives We are committed to fostering a emissions, thus instilling a focused on ESG and climate comprehensive understanding shared understanding of change for specific teams, such of climate change throughout climate-related risks and as our credit and business our organisation, ensuring that opportunities across all levels of teams. Our emphasis lies on every function and employee is our organisation. equipping these teams with equipped with functional and Through these comprehensive the knowledge and tools role-appropriate knowledge training and capacity- necessary to integrate climate and skills to address its building efforts, we empower considerations into their challenges. To achieve this, we our employees to become decision-making processes and implement robust training and active contributors to our conduct climate-specific due capacity-building programs sustainability goals and help diligence effectively. tailored to the diverse needs of develop the Bank’s resilience our workforce. to the challenges posed by climate change. 112 HDFC Bank Limited 

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Strategy Identifying Climate-related Risks • Transition Risks: The shift and Opportunities towards a low-carbon economy At HDFC Bank, we are committed may impact the value of certain to mitigating risks and leveraging Our strategy is underpinned by the assets and liabilities including the opportunities arising from the way we assess and manage our likelihood of formation of stranded transition to a low-carbon economy. exposure to climate-related risk. assets. The Bank is exploring We endeavor to build our capability to There are two main types of climate opportunities in green financing and manage risk from climate change and related risks: sustainable infrastructure projects deliver our regulatory commitments, to mitigate these risks and capitalise thereby demonstrating to our investors • Physical Risks: Extreme weather on emerging market trends. The that the Bank is effectively managing events like floods and cyclones Bank has also partnered with an climate-related risks and opportunities. can cause physical damage to independent, reputable global property and assets, leading to agency to develop a framework for economic losses (physical damage assessing climate transition risk at a to property and assets). The Bank counterparty level. is assessing the potential financial impacts of these physical risks on the Bank’s operations. Additionally, we have identified some climate-related risks and opportunities that the banking sector may face over the short, medium, and long term, as well as their corresponding impacts including: Risk Type of risk Description Current Transition risk Banks are highly regulated in the country and mandates as part of current regulations regulation factor are always integrated into the overall risk planning and assessment process. Current regulations are also factored in the credit assessment process, especially through the comprehensive ESG and Climate Change assessment framework for its wholesale corporate borrowers. Emerging Transition risk Transition risk can impact the Bank’s credit portfolio resulting from changes in the regulation factor climate policy, technology, consumer, and market sentiment during the transition to a low-carbon economy. This is particularly relevant for policy changes that can result in loan defaults from certain sectors like coal, thermal and certain infrastructure sectors. Technology Transition risk While our digital environment and information security standards are the foundation of factor our business today, as financial services professionals, we do not anticipate technology to have a significant impact on climate risk. Our low-carbon digital banking products use technology to enable business. Legal Transition risk For large loans, we verify whether the project complies with all applicable environmental factor rules, failing to do so could result in the loan becoming a non-performing asset if the project goes into litigation. This, however, is not a claim against the Bank. There are no other circumstances in which the Bank can be held liable for a climate-related lawsuit. Market Transition risk In the context of climate change, markets could play a key role in market repricing or factor shifting the demand and supply for certain products like green loans or bonds, or in low-carbon digital products. However, the Bank recognises the relevance of change in consumer preferences, and hence, the need to evaluate this risk. Integrated Annual Report 2023-24 11 3 

E NV I R O N M E N T Risk Type of risk Description Reputation Transition risk Reputation risk from community/customer perception is a primary risk to our business. factor We thus invest in community and customer involvement through surveys and structured engagements to educate and enlighten them on climate risks and mitigation. Further, ESG performance measures are increasingly being used by the global investor community, especially sovereign wealth funds and pension funds, to assess long-term profitable growth. We strive to implement environment-friendly measures throughout our operations. We further show our commitment to ESG, particularly climate change, by including ESG elements in regulatory reporting such as the annual report. In addition, in our annual integrated report, we publish details on our carbon emissions and footprint (third-party assured). Acute Physical Acute physical hazards such as cyclones, floods, and water stress can have a negative physical risk factor influence on the credit portfolio by causing bad debts, impairing assets or collaterals due to damage to property, infrastructure, and land, and interrupting operations. This is also relevant for climate disasters destroying assets (that serve as collaterals). The Bank’s Disaster Response and Business Continuity teams conduct business impact analyses and have rapid response procedures in place in the event of natural disasters such as floods. Chronic Physical Chronic physical risks are far into the future. Rise in global temperature more than 1.5 physical risk factor degree Celsius may cause changes in climate patterns and sea level, impacting the economy and operations of the Bank, thus impairing assets or causing early replacement of assets. Given that climate risk is an emerging and long-term risk for the Bank, a suitable methodology/pathway shall be considered for adoption, to analyze the Bank’s exposures under different climate scenarios. The Bank has also envisaged climate-related opportunities over the short, medium, and long term: Opportunity Description Timeframe Green services Expansion in demand for lower-emissions goods and services is expected Medium to continue to scale in the medium to longer term. Lowering Resource and energy efficiency in own business operations that help Short carbon emissions lower carbon emissions while also potentially strengthening operational efficiency is expected to scale up. Greening of The diversification of the Bank’s financial portfolio and growth of green Medium portfolio portfolio is expected to scale up. 114 HDFC Bank Limited 

E NV I R O N M E N T In addition to our three-pronged initiatives on ESG and climate risk We are member to a number of strategy, we also engage with our issues, including short-term emission industry bodies and endeavor larger corporate clients as well as reduction targets, long-term net- to advance our climate change industry bodies and regulators on zero goals, ESG and climate-related policy through such industry/ climate change. This enables us disclosures, and supply chain trade associations. to strengthen our strategy while decarbonisation. Of the wholesale We actively contribute to the ensuring a well-rounded approach to loans approved during the year, 26 processes of influencing the implementation of the same. per cent in value terms underwent an evolution of positions taken enhanced environmental and social Client Engagement by trade associations through due diligence as part of the Credit As a trusted financial institution, we advocacy and negotiations. Our Appetite Memorandum. continue to proactively engage with organisational strategy and climate many of our larger corporate clients Industry engagement/ goals guide our engagement with the on both the risks and opportunities Government/Public Policy trade associations. related to their businesses. To Engagement enable us to provide the appropriate We believe that industry co-operation, The Bank also intends to accelerate advice and capital solutions, we particularly in setting common the scale and pace of delivering also encourage clients to share and standards and transparent reporting, value by using collaboration as a enhance their climate disclosures. is important for all our stakeholders. mechanism to effectively foster We continue to engage with peers, strategic partnerships with solution Through client engagement, our industry experts and academics to providers, civil societies, government goal is to determine current ESG assess the transition to a low-carbon agencies that would help bring and climate change focus areas economy and consider emerging together capabilities and resources to and practices. We strive to identify methodologies and taxonomies. achieve its ESG objectives. industry best practices and emerging Risk Management aligning specific perils and transition The Bank’s ESG & Climate Change categories, linking new and existing Assessment Framework, under the Risk Identification Effectively managing climate risk risks to other sustainability categories, aegis of our ESG Risk Management requires proactive identification, and identifying the applicable time Policy (ESGRM), ensures thorough a thorough understanding of the horizons for impacts. environmental and social due diligence of various loan proposals domain, as well as comprehensive Climate-related Risk above the defined credit exposure inputs from stakeholders. At the Management Bank, risk identification is an In line with its sustainability- thresholds, including direct customer ongoing process that includes the focused vision and commitments, loans, wholesale loans, supply chain consideration of climate-related the Bank has developed several finance, offshore, and capital market factors such as physical (acute and initiatives to manage climate-related loans, as well as loans to banks, chronic) and transition risks in the risks at the project, portfolio, and financial institutions, or NBFCs. lending portfolio. We are actively organisational levels. This assessment helps the Bank seeking opportunities to enhance our evaluate the borrower’s current capabilities in identifying these risks Project Risk position regarding ESG and climate change considerations and analyze and their impacts on our business and At a project level, a risk assessment their transition plans and initiatives endeavor to incorporate additional focused on social and environmental for mitigating risks associated with climate risk considerations related aspects is integrated into the Bank’s these factors. to sector, product, and geography, overall credit approval framework. 11 6 HDFC Bank Limited 

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Portfolio Risk traditional financial risk parameters, ahead of the curve and building The Bank has partnered with an economic impact modelling, scenario capacity and understanding of the independent, reputable global agency analysis, and stress testing is still financial and non-financial impact of to develop a framework for assessing being progressively explored through climate change. climate transition risk at a counterparty global collaborations. Addressing The Bank undertakes stress testing level. Furthermore, the Bank has challenges such as the availability of and scenario analysis to assess launched an internal pilot exercise climate-related data (including the the potential impact of geopolitical, to estimate financed emissions for frequency of climate events at good macroeconomic, and sectoral trends specific sectors in its lending portfolio. spatial resolution, and regional and on its portfolio and subsequently build global sector impacts), regional climate Climate Risk Measurement its climate resilience. (Portfolio level) impact scenarios, and comprehensive climate risk assessment tools and The development of methodologies methodologies remains crucial. and tools to link climate risk to The Bank is committed to staying Technology Launch of risk in high Policy Impairment Climate carbon price carbon development costs hazard market emitting assets Type of risk involved Transition risk Physical risk Impact Financial Credit loss Credit loss impact to borrowers Captured by stress testing and scenario analysis Type of risks and impact captured through stress testing and scenario analysis Integrated Annual Report 2023-24 117 

E NV I R O N M E N T At the Bank, stress testing involves the use of various techniques to Measurement of Financed Emissions: Pilot Study assess the potential vulnerability Financed emissions refer to loans revolves around the to extreme but plausible stressed the greenhouse gas (GHG) concept of determining the business conditions. The changes in emissions that are associated financed emissions of a the levels of Pillar I Risks and select with lending and investment given exposure using the Pillar II Risks, along with the changes activities of financial concept of an ‘attribution in the on and off-Balance Sheet institutions. As per the GHG factor’ and then applying it positions of the Bank are assessed Protocol, financed emissions to the estimated emissions under assumed ‘stress’ scenarios and are a specific category of the underlying company sensitivity factors. The suite of stress of indirect, downstream or sub-sector. Further, PCAF scenarios includes topical themes emissions and are classified as guidance is available for as well as historically observed Scope 3 emissions. Financed only a few asset classes, geopolitical/macroeconomic/sectoral emissions are critical to better which poses constraints in and other trends. understand the role of the determining overall portfolio From the perspective of climate financial sector in climate level emissions. risk assessment, we are exploring change. However, the lack The PCAF methodology third-party frameworks to assess the of reliable and standardised ascribes data quality scores physical and transition risks in the near India specific emission from level 1 to 5. Level 1 data to medium term. factors remains a challenge in is where emission factors of measuring financed emissions. the underlying entity has been We intend to integrate our climate The Partnership for Carbon verified by an independent strategy and the impact of climate- Accounting Financials (PCAF) third party. Level 2 data entails related issues into our financial provides a framework to help emissions that are reported planning processes, and to that financial institutions report by companies but have not effect, are developing processes and their financed emissions. been externally verified. Level tools that will influence our business While the PCAF guidance 3 to 5 data is where emissions activities. We aim to: varies across different are calculated based on • decarbonise our operations asset classes, the broad production level activity or • expand our green and sustainable methodology for corporate sectoral /proxy data. banking products • enhance the scope and accuracy As a Bank, we recognise that we On some of our corporate/ wholesale of our climate scenario analysis and do bear some responsibility for the loans, it has been our constant stress testing, applicable for the environmental impacts of projects endeavor to collect E&S information as bank’s lending portfolio. and entities that we finance. We have per our ESG Risk Management Policy. • monitor and estimate our lending on a voluntary basis, commenced While we recognise the challenges in portfolio related financed emissions. the exercise of measuring financed collecting data on emissions, we are emissions of the bank’s lending encouraged that a growing number of As disclosure requirements and portfolio. We are working with a our wholesale borrowers are reporting regulations continue to evolve, we climate tech startup to help in the Scope 1 and Scope 2 data. expect to take these into consideration assessment of measuring financed while developing our financial strategy. emissions based on our lending to various industries/sectors. We are testing the efficacy of India specific sectoral emission intensities based on Environmentally Extended Economic Input-Output models. 11 8 HDFC Bank Limited 

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Based on loans of the previous year, we undertook a pilot study of a sample pool of 2,768 wholesale loans to 309 listed entities disclosing Level 1 or Level 2 data on Scope 1 and Scope 2 emissions, across 34 sectors, which included certain hard-to-abate industries. Our reporting of financed emissions followed the PCAF standard for corporate loans as described Attribution factor = Outstanding debt/Enterprise Value (Enterprise value for a listed company is market capitalisation + borrowings) Using the above-mentioned PCAF Organisational Risk Metrics and Targets methodology, the sample pool totalling The Bank’s operations entail We have taken on an ambitious approximately H1.5 lakh crore had compliance and reputation risks, as target for achieving carbon neutrality financed emissions of 12.2 million t of well as ESG risks. To address these of our Scope 1 and 2 emissions by CO2e. Although it is acknowledged risks, the Bank has established an FY32 and are already aligning our that the exercise is backward looking, aggregate Risk Appetite Framework. operations to progressively stringent rather than futuristic, it still represents Furthermore, risk-specific policies, internal benchmarks for enhancing our a significant milestone in the Bank’s limits and triggers are implemented energy performance and integration journey towards measuring and to operationalise the appetites for of renewable energy. (Refer GHG managing its financed emissions. individual risk types. The Bank emissions section for further details). The exercise has enabled the Bank recognises climate risk as a material Additionally, we aspire to fortify our to identify variances based on risk. The Bank has a structured commitment to financing climate actual entity-level data of Scope 1 management framework called the change solutions such as energy and 2 emissions versus applying Internal Capital Adequacy Assessment transition, renewables, energy sectoral level emission factors. This Process (ICAAP) to identify, assess, efficiency, sustainable transportation, understanding shall help the Bank and manage all risks that could green buildings, climate smart to establish more accurate baselines potentially have a significant negative agriculture, among others, and have which will serve as the foundation impact on our business, financial already embarked on a process to for setting realistic and achievable position, or capital adequacy. examine our financed emissions emission reduction targets. Further, and carbon-related asset exposure the Bank shall also continue to work with the intent to develop KPIs and towards widening its coverage for track the progress towards assisting financed emissions, whilst also our customers in transitioning to a ensuring that it plays a role in being sustainable, lower-carbon economy. enablers of transition finance. Integrated Annual Report 2023-24 11 9 

C U S T O M E R C E N T R I C I T Y Customers at the At HDFC Bank, our relentless focus on customer centricity drives us to innovate and deliver exceptional financial Heart of Everything solutions. By understanding and anticipating our customers’ needs, we aim to create personalised experiences that build trust, satisfaction and long-term relationships. 12 0 HDFC Bank Limited 

C U S T O M E R C E N T R I C I T Y In March 2020, we initiated measurement on key journeys, TRANSFORMING SCORE TO SYSTEMS identified action areas to improve customer experience and implemented several key initiatives. This has led to a steady improvement on our NPS over the years. This year, we built on our commitment to our customers Listen Learn Act by scaling the coverage of our Infinite Smiles programme – we introduced Feedback of Review and Resolve the issue new journeys, new episodes and customers follow up to in the near and new products ensuring a much wider better understand long term coverage. Customer focus has seen increased focus—regular cadence 3.3 million 71 2.3 lakh+ with key stakeholders and rigorous feedback captured BU NPS Score* huddles follow-up on actions have become the across key conducted cornerstones of Infinite Smiles. The programme now encompasses channels, critical critical episodes – On-Boarding episodes and key journeys, customer instructions, CQR. product journeys We now cover 140+ episodes and *Bottom Up NPS score have contacted around 100 million+ customers in Financial Year 2023-24 for their feedback. 2. Building Greater Focus on 3. Robust Operational and Our ‘Infinite Smiles’ program rests on Understanding Customer Analytical Infrastructure three meticulously designed pillars Needs Customer Experience – ‘Listen’; ‘Learn’; and ‘Act’ which Operationalising customer Transformation team leads the enables us to embed customer- empathy, through Detractor effort and is responsible for feedback led transformation as a engagement; front-line maintaining rigour. It rallies across discipline into our systems, challenge employees hear positive and departments to drive the mission what is considered as the standard, constructive feedback directly of serving the customer and and offer a customer experience from customers enabling them bringing voice of the customer that places us amongst the best to support actions that improve into decision making. service brands. customer experience. This well-defined System builds on the Score and requires every level of the organisation to be rigorously, consistently focused on the quality of customer and employee relationships. In order to foster individual learning and inspire front-line employees to do right by customers, we created an advocacy organisation that ensures 1. Sustained Leadership Commitment Embraced the goal of creating more promoters and fewer detractors as a mission to building Service First Culture. 12 2 HDFC Bank Limited

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements 4. Reliable and Trusted Metric Infinite Smiles program is a customer issues that transcend We use Net Promoter Score practical framework to grow beyond measurement and create (NPS) branded as Smile Score—a by enriching the lives of our a culture of customer-centricity simple and easy to understand customers and employees. It is and agility. metric which is reliable and the business equivalent of the We would not only like to valued. We have now embedded Golden Rule: Treat others as you anticipate and react to changing Smile Score and customer would want to be treated. feedback as an outside-in customer expectations but also perspective for measuring Guided by our aspiration to move like to provide a proposition process efficiency. from score to systems, we have to our customers that makes been working to institutionalise us more attractive than the process for addressing competitive alternatives. Driving Customer-Centric Initiatives Through Innovation HDFC Bank’s foundation is built on three pillars: technology, innovation and providing excellent customer experience. This philosophy has guided the Bank’s marketing journey over nearly three decades in driving key campaigns that focus on consumer awareness and education, offering innovative and tech first products and continually enhancing customer experience. KEY HIGHLIGHTS FOR FINANCIAL YEAR 2023-24 The Merger of HDFC Limited with HDFC Bank The merger was successfully executed in-house, accompanied by a large-scale announcement in leading newspapers and comprehensive rebranding across all physical outlets. On the day of the merger, HDFC Limited branches, website and digital platforms were seamlessly rebranded to reflect this significant development. Integrated Annual Report 2023-24 12 3

C U S T O M E R C E N T R I C I T Y HDFC BANK NOW The Bank launched HDFC Bank NOW, a platform that encompasses all its digital offerings in one place. The platform aims to simplify customer experience while buying new products, onboarding, accessing offers or availing the Bank’s services digitally. NOW showcases its existing digital offerings along with new ones to customers. Festive Treats 5.0 with XpressWay: Iss Tyohaar No Intezaar Festive Treats – a five-year strong property capturing the festive spirit of the market, showcases 10,000+ attractive offers on banking and lending products for our customers across segments. In FY23, we leveraged the Festive Treats franchise to launch the all-new digital platform XpressWay through an insightful campaign theme, “Iss Tyohaar No Intezaar”. Through this campaign, we enabled customers to fulfill their banking needs without any wait by providing them with a frictionless digital journey for availing banking products and services. This highly personalised platform consolidates all tailored offers in one place, prioritised for relevance. The products and services are meticulously crafted to ensure fast, seamless, paperless and user-friendly experiences for existing and new customers. 12 4 HDFC Bank Limited 

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Vigil Aunty focus on safeguarding our Bank’s fraudulent accounts and handles customers. Utilising robust tools, we has been between 24-48 hours. Nearly two years after the launch have swiftly identified and removed In Financial Year 2023-24 a total of the Vigil Aunty campaign, her fake customer care numbers, social of 139 Customer Awareness influence within the Indian social media profiles, Twitter handles and Initiatives were conducted. Vigil media landscape remains strong career pages falsely associated Aunty’s overall reach has been with a considerable presence with HDFC Bank. Impressively, our 2.2 million followers and 300+ on platforms like Facebook and response time for taking down these million views. Instagram. Her fan base has grown significantly, reaching 2.2 million citizens in India. On WhatsApp she provides real-time updates on financial frauds and has built a community on the platform known as the Vigil Army, where the latest fraud awareness updates are provided to 800,000 people. This active community not only stays informed but also participates in spreading the message and amplifying the reach of our campaign. Our efforts extend beyond mere awareness creation. We actively monitor and track online frauds and modus operandi, with a primary PayZapp participated in the IPL 2024 with registrations soaring to over a high-decibel brand campaign 7.5 million. Since its launch, PayZapp by HDFC Bank is the on Start Sports and Jio Cinema. PayZapp’s ranking has improved Bank’s first direct-to-customer (D2C) nd PayZapp also partnered with Royal significantly, moving from 42 to offering, launched through a high- th Challengers Bengaluru as their 13 position in the UPI category. impact brand campaign featuring official payment partner to drive As a testament to customer trust celebrities like Tiger Shroff, Prabhu engagement and create visibility. and confidence, PayZapp is also Deva and Kapil Sharma. PayZapp is a comprehensive The brand’s success has been amongst the top-rated app, payment app that gives customers remarkable, with PayZapp rated 4.8 on the App Store and the “Choice to Pay” how they 4.6 on PlayStore. want. With the app, users can send money, make bill payments, recharge, shop, book travel and do much more. They can pay with PayZapp for in-store or online purchases using Scan QR, Tap to Pay or Swipe to Pay feature or send money to any app. To strengthen PayZapp’s ‘Choice of Payments’ brand positioning and build a higher recall, PayZapp Integrated Annual Report 2023-24 12 5 

F U T U R E R E A D Y D I G I TA L B A N K Transforming to a In an era defined by rapid technological advancements and shifting consumer expectations, HDFC Bank stands Dynamic Customer committed to evolving alongside the changing landscape and harnessing technology to drive progress. Central to our Centric Approach vision is a shift from a product-centric model to a dynamic customer-centric approach. This means leveraging technology better in understanding and addressing the unique needs and preferences of our customers. The five critical drivers in this transformative approach are: Journeys, Channels, Core, Data and Security. These are elaborated further. 12 6 HDFC Bank Limited 

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements TECH & DIGITAL STRATEGIC DIRECTION Strengthening our operations is We embrace omnichannel crucial to our customer-centric banking, providing diverse strategy. By modernising our options from branches core banking infrastructure, We use data and Al to to digital platforms. This we enhance agility, scalability, understand customers empowers customers to bank and efficiency, allowing swift better to deliver on their terms, whenever and adaptation to market demands. personalised solutions wherever they choose from. that meet individual needs effectively. We focus on optimising customer journeys to ensure every bank    Core    As custodians of interaction is seamless, l s    n e Da customer trust, intuitive and personalised. n t a a Whether through digital h we prioritise data C privacy with state-channels, in-branch of-the-art cyber experiences or both, we y s S e e security measures aim to deliver a consistent n c and delightful experience u r u r for protection against i o t emerging threats. at every touchpoint. J y as a Service i ng (B e n k hannels aa artn rship a C S P s B ) hannels Journeys: Frictionless, straight-through hestratio C r c n APIsO La I ices ba y at Channels: Digital – A P r v s e D a e e r where the customer is o s d c r Data C Core Core: Always ON, i o M powered r e Banking perform @ scale by AI/ML Data: Insights, driving experience & growth Security: For customers & data Prod ntri c uct Ce Cust ntri c omer Ce Through these strategic initiatives, we prioritise These strategic pillars also underscore our commitment personalised digital banking offering tailored solutions to meet the evolving needs of our customers. As we and inclusive access. We are poised to not only navigate through we will delve into these initiatives meet but exceed customer expectations driving highlighting their impact on shaping the banking sustainable growth and delivering long-term value to landscape for all. our shareholders. Integrated Annual Report 2023-24 12 7 

F U T U R E R E A D Y D I G I TA L B A N K Tailored Digital Banking for All Our commitment to tailored digital banking for all has been central to our mission for delivering personalised solutions and inclusive access to banking services. Through our comprehensive range of products and services coupled with ongoing enhancements, we have strived to ensure that every customer’s journey is unique and seamless. PayZapp 2.0 — Convenience, Safety and Rewards in One New Features Introduced Neotech Powered App in FY24 Building upon the success of its • Integration of UPI as a impactful launch in FY23, PayZapp 2.0 payment option in Shop—has continued its growth to become section with Tap & Pay one of the fastest growing payments capability using PayZapp apps providing customers with a Prepaid Card & linked seamless and intuitive user experience, VISA Cards have also ensuring enhanced security features. been introduced • The Shop section of PayZapp now boasts of new holiday ACHIEVEMENTS IN FY24 packages and a fresh brand e-voucher experience • 7.5 million registrations as on that bears the promise of March 31, 2024 earning assured discounts • 65% growth of daily active users and rewards month on month • The app continues to • First app to be enabled with provide best in industry RuPay Credit Cards for features and capabilities UPI payments with our participation in IPL • 4.5/4.8 PlayStore/AppStore 2024 presenting an exciting rating for the last quarter and opportunity to expand our featured in the top 15 UPI apps reach and engage with a by monthly user spends broader audience 12 8 HDFC Bank Limited 

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements SmartHub Vyapar Building upon our commitment to empower merchants, SmartHub Vyapar remains a cornerstone in our suite of offerings. This comprehensive payments and banking solution continues to fulfil the everyday business needs of merchants, providing seamless digital solutions tailored to their requirements. ACHIEVEMENTS IN FY24 New Features Introduced • Currently the best rated in FY24 merchant app in the country with a rating of 4.6 • Instant, digital and paperless merchant onboarding for • One of the top 3 merchant apps in the country by HDFC Bank customers transaction volume (UPI+Cards) • Interoperable payments • 1.6 million + merchants across multiple payment using the app with over 70,000 modes and remote payments new merchants being added • Merchants benefit from every month unparalleled convenience; • Processed transaction volumes the app’s marketing tool totaling J2.28 lakh crore has enabled merchants in FY24 to amplify their offers via • 650 crore of monthly social media to existing and loan disbursals potential customers HDFC Bank One (Customer Experience Hub) Our AI/ML driven conversational Bot has revolutionised our contact centre operations, centralising and streamlining customer interactions. Expanding its reach across India, it covers a wide spectrum of services including Phone Banking, IVR self-service, Virtual Relationship Management and Telesales. With an omnichannel approach spanning WhatsApp Chat Banking, SMS Banking, IVR, and agent-assisted services, it ensures a seamless and unified customer experience. ACHIEVEMENTS IN FY24 • Growth of 35% witnessed in Bot with 45 Straight-Through customer engagements and Processing (STP) Journeys interactions since March 2023. • Chat Banking: Simplified banking Touching up to 32 million + from experience on WhatsApp with over 18 million customers features like secure one-time • More than 50% customers registration process, access to supported digitally with the help of more than 190+ transactions, HDFC Bank One Platform convenient TAP function instead • Reduction in resolution time for of type. Monthly active users email channels by 50% at 5 million+ in March 2024 with • Social Care Channel: total transactions of over 11 Over 40% of the overall million. Growth of 150% since volumes automated March 2023. • Phone Banking: IVR in 12 • New use cases like Intelligent languages with 35+ self-service Transaction Verification, credit options and 100+ intents. AI/ cards decline is driving more and ML led English and Hindi Voice more users to this channel Integrated Annual Report 2023-24 12 9 

F U T U R E R E A D Y D I G I TA L B A N K Xpress Car Loan The Xpress Car Loan (XCL) platform ACHIEVEMENTS IN FY24 continues to provide seamless end- • In FY24, over 3.6 lakh car to-end digital loan disbursals and loans were disbursed. A garner positive customer feedback. It significant portion, over 1.16 is now the preferred auto loan channel lakh car loans viz 32% was with over 32 per cent of the loans processed through XCL being processed through this journey. • In Q4FY24, over 40% of all car It now facilitates zero paper, zero loans were processed digitally touch, 30 minutes auto loan disbursal with an average monthly to the dealers account for new to disbursement of over bank customers. It continues to be K1,020 crore the largest digital car loan platform for origination and disbursement in India. Acquisition and Looking ahead, we have an exciting Servicing Journeys line up of planned journeys for 99% rollout including Unified Acquisition, With continued momentum in our Embedded Insurance in Gold Loan Personal Loans Sold digitalisation efforts, we have made journeys; and Bundled Personal Digitally significant advancements in digitalising Loan and Insurance with the Home customer journeys building upon the Loan journey. 69% foundations laid in previous years. Our newly introduced journeys cover Business Loans Sold Volume of Digital Transactions a diverse range of offerings including Digitally joint accounts, My Account My Total Digital Transactions Choice, pension accounts, senior (%) 85% citizen special savings accounts, hybrid salary for corporates, New to FY24 97 Credit Cards Sold Digitally Bank (NTB) fixed deposit journey, and FY23 95 virtually assisted journeys for pre-approved customers. Additionally, Total Digital Acquisitions Xpress journeys for personal loans and (%) business loans; home loan journeys for pre-approved customers with cross- FY24 79 sell opportunities of savings account, FY23 76 cash credit and credit deposit; smart EMI journey with instant soundbox and billed transaction. Moreover, we’ve Total Digital Servicing expanded our digital service offerings (%) with the rollout of 10 new service FY24 73 journeys bringing the overall service coverage to nearly 87 per cent. FY23 69 13 0 HDFC Bank Limited 

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Digitalising Corporate and Wholesale Banking TradeFlow HIGHLIGHTS • In FY24, the platform has been deployed at 280+ locations • 9,000 + transactions processed per day enabling time saving of 25% per eligible transaction • Provides a single platform to our trade users for a multitude of functions with integrated workflows while also maintaining consistency and regulatory checks • Significant reduction in human effort due to improved TradeFlow, is our Trade Finance solution, a cloud-based centralised platform. operational efficiencies It provides better reliability and usability for end-users. It integrates with a multitude of applications and employs various automations including a dynamic MIS, an informative dashboard, a single view of all dependencies and peripheral application integration. Corporate Banking Exchange (CBX) CBX is HDFC Bank’s Internet Banking service specifically designed to cater to the needs of corporates. It enables transactions and processing via both mobile and the internet. It offers a superior experience with modern features such as customised narration, enhanced authorisation level and a contextual help dashboard. HIGHLIGHTS • Ability to provide historical statements of up to 1 year for up to 2 lakh records • Processing over 1.15 crore transactions per month Integrated Annual Report 2023-24 13 1 

F U T U R E R E A D Y D I G I TA L B A N K Commercial and Rural Banking (CRB) BizXpress Rolled out to select customers, BizXpress is our digital portal designed for MSME customers. It offers a comprehensive suite of banking and value-added services tailored for the MSME segment providing a seamless one-stop banking solution. Dukandar Dhamaka Dukandar Dhamaka offers small businesses affordable and flexible credit solutions. It enables entrepreneurs to seize growth opportunities and navigate cash crunches. Through Dukandar Dhamaka, we launched Overdraft (OD) facility tailored for shopkeepers offering upto 10 lakh without GST and upto 25 lakh with GST. This nationwide initiative has successfully sourced business exceeding 500 crores in Q2FY24, empowering shopkeepers across India to grow their businesses. Commercial Loan Origination We enabled digital sourcing for all working capital customer segments including Emerging Enterprises Group (EEG) and Business Banking Group (BBG). This initiative is integrated with our state-of-the-art business rule engine. It facilitates in-principle approvals for customers within just 30 minutes, streamlining the lending process and empowering businesses to seize opportunities swiftly and efficiently. Smart Saathi This is our digital distribution platform to connect Business Correspondents (BCs) and Business Facilitators (BFs) with the Bank. This initiative marks a significant milestone in our journey towards providing innovative solutions tailored to the evolving needs of customers. By leveraging this network of BCs and BFs, we aim to enhance financial inclusion by extending banking products and services to the last mile. 13 2 HDFC Bank Limited 

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Future Ready Digital Bank As we progress on the journey to becoming a future-ready digital Bank, we are committed to leveraging cutting edge technologies and innovative strategies for anticipating and meeting the evolving needs of our customers. We have continued to enhance our offerings to stay ahead of the curve in an ever-changing digital landscape. Digital Rupee UPI 2.0 Autopay UPI Secondary ASBA Central Bank Digital Currency (CBDC) UPI Autopay is a feature that UPI Secondary ASBA also called or Digital Rupee as it is popularly allows users to set up a mandate Single Block Multiple Debit is a known, is the digital, secure, faster, for recurring payments. The use payment mechanism that allows and more inclusive version of the cases include bill payments, school investors to block their funds within paper-note Indian Rupee. It ensures fees, OTT subscriptions, insurance their bank accounts towards a definite privacy as personal information of premiums, EMI repayments, purchase of a financial instrument. payer is not exposed on making Mutual Funds etc. for which regular The amount debit gets initiated by the payments. CBDC fosters financial collection by the merchant is clearing corporations (both NCL & inclusion, reduces operational required. It is a simple, timely and ICCL) only for successful settlement. costs associated with physical cash reliable payment system for users. This blocking mechanism is driven on management, improves efficiency It helps in avoiding late fee charges, UPI railroad and allows users to have and enhances innovation in disconnections thereby playing a secure and convenient transactions. payment systems. pivotal role in customer retention and We are one of the first Banks to With programmability and offline benefitting merchants. feature being introduced in near HDFC Bank has acquired top extend UPI Secondary ASBA feature. future, it can be a game changer in merchants across industries the payments industry. Currently, collecting K2,100 crore as HDFC Bank has over 5 lakh monthly recurring payment customers registered on the app through this feature. transacting K169 crore annually. Integrated Annual Report 2023-24 13 3 

F U T U R E R E A D Y D I G I TA L B A N K Generative AI HDFC Bank is exploring the potential of Generative AI and has leveraged its capabilities to enhance operations and deliver ground-breaking solutions. H IG H LIG H T S Internal BETA FAQ Bot Credit Approval Memos (CAMs) Branch Executive Covenant Extraction POC Co-Pilot Prototype We have successfully launched an Our Proof of Concept (POC) We have advanced on a Branch internal BETA FAQ Bot powered for CAMs covenant extraction Executive Co-Pilot Prototype, an by ChatGPT, harnessing the using GPT API has been assistant powered by Generative power of Generative Al to provide completed successfully. Al designed to empower branch efficient and accurate responses to This advancement demonstrates executives in providing better customer queries. the effective application of customer service. This Bot serves as a reference Generative Al in extracting By addressing queries related architecture for Retrieval critical information from complex to bank account opening and Augmented Generation financial documents. other services, this prototype is pipeline, showcasing the Bank’s set to reduce dependencies on commitment to cutting-edge central business units resulting in Generative AI technology. improved customer experience and operational efficiency. 13 4 HDFC Bank Limited 

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements H IG H LIG H T S Critical Applications New Branch Rollout Strategic Partnership on Digital Factory Uptime and Other Initiatives Zero Trust Framework Approach We sustained an uptime IT played a pivotal role in We leveraged a Secure Advancing our Tech and of 99.96% for our ensuring the successful Access Service Edge Digital Transformation customers in FY24. launch of over 900 partner’s advanced journey, we emphasise The improvement over branches in FY24. zero trust technology seamless digital the 99.95% uptime Meticulous planning to seamlessly navigate experiences across in the previous year and seamless execution through the merger, touchpoints. Our Factory is a testament to our ensured that each site was ensuring network harmony approach fosters commitment to enhance equipped with necessary and eliminating conflicts. co-creation of Tech the overall reliability of the infrastructure and systems. Our collaboration IP, guided by Agile, banking experience. Internet breakout has has enabled us to DevSecOps principles been implemented in reduce dependency and cloudification. over 900 branches on Multiprotocol Label Our API Factory builds to improve access to Switching across scalable, reusable internet applications using branches, enhancing architectures for SDWAN and Zscaler operational efficiency swift integrations Internet Access. and agility. with third parties and Furthermore, with the Fintechs propelling successful implementation us into embedded of a cloud native security banking for richer service edge solution, we customer experiences. have not only strengthened Aggregating systems, our security measures but co-creating with partners, also boosted performance. and prioritising scalability and observability enhance customer experience and elevate success rates for payment transactions. Integrated Annual Report 2023-24 13 5 

FUTURE READY DIGITAL BANK

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements RECENT AND UPCOMING TECHNOLOGY INITIATIVES As we chart our course for the future, we are excited to unveil our upcoming technology initiatives which are poised to drive innovation, enhance customer experience and shape the next chapter of our digital journey. Revamped UPI Architecture New Retail Our UPI architecture is also Asset Platform undergoing a phased transformation We are modernising the platform to a cloud-native architecture for and architectures of the Gold meeting the accelerated growth that Loan and Consumer Durable the UPI segment is witnessing. Loan segments for a de-risked, high availability setup. Pixel Credit Card Revamped Net & Tailored for Gen Z and Millennials, the Mobile Banking recently launched Pixel Credit Card The Bank is poised to revolutionise its is the Bank’s first end-to-end mobile Mobile and Net Banking platforms for app-based customisable, DIY digital a next-generation user experience. card. It offers seamless app-based Internal launch to staff yielded positive issuance, complete digital lifecycle feedback with plans for customer rollout management, user engagement and in Q2FY25. digital servicing. Data Lake Sustainable Livelihood Initiative Continuing our Data Lake initiative, The Bank is increasing its presence in we’re overhauling our data the microfinance sector by leveraging infrastructure with a cloud-native, next- a digitally led assets platform. It will gen architecture. This transformation enhance the loan origination and enables deeper customer insights, servicing processes making them enhancing cross-selling experience. more accessible to the segments while Additionally, we’ve introduced an ML- maintaining operational efficiency. based anti-money laundering system to bolster security and compliance. Agri Platforms Our platforms will offer end to end digital sourcing for Kisan Credit Cards and Dairy Loans. This will be available for existing and New to Bank customers starting Q2FY25. Integrated Annual Report 2023-24 13 7 

S O C I A L – P E O P L E From Strength to At HDFC Bank, our employees are pivotal to our success. They epitomise our values and serve as ambassadors for the Bank Strength – ‘The both internally and externally. HDFC Bank Way’ It is incumbent upon us to provide employee experience. By fostering but a strategic imperative for the comprehensive support and collective progress we ensure that success and sustainability of HDFC empowerment to our employees, our employees succeed together Bank. Their dedication, expertise and encompassing every aspect of and propel the Bank forward. We commitment are the driving force our organisational culture, talent, recognise that investing in our behind our continued growth and processes, people practices and employees is not just a responsibility excellence in serving our customers and communities. 13 8 HDFC Bank Limited 

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements take the Bank to its next level with Supervisors. The HR Business enhanced customer experience and Partnering teams conducted an engaged employee ecosystem. multiple Orientation Sessions and On the people front, extensive Roadshows for eHL employees efforts were made to assimilate our across locations. The focus was on colleagues into the HDFC Bank sensitisation around Bank policies, culture and ethos. processes, systems, culture and the way of working. A Grievance July 01, 2023 marked a historical An all employee Virtual Townhall Committee was also set up for moment for the Bank as we was conducted by the Managing real-time support for addressing welcomed over 4,000 employees Director, Deputy Managing Director employee concerns and queries. through the merger with erstwhile and Executive Director to warmly The efforts have gone a long way HDFC Limited. This was the coming welcome our erstwhile HDFC in enabling people integration together of two iconic brands Limited (eHL) colleagues into the and assimilation, relationship that are known for excellence in Bank. Multiple Meet and Greet building and over the year our eHL their respective sectors. Hereon, sessions were organised with the colleagues have got accustomed to it will be our joint responsibility to Bank Leaders and Senior Level the HDFC Bank Way of life. Culture Transformation THE HDFC BANK WAY Rooted in the HDFC Bank Way, our Culture Framework serves as The HDFC Bank Way comprises six defined Culture pillars a guiding light shaping our path towards becoming a future-ready organisation. It is not merely a set of guidelines but a living embodiment of our values, beliefs and aspirations. Our culture fosters an environment Integrity Execution Innovation of trust, collaboration and innovation, empowering employees to fulfil their potential and drive positive change. Through continuous reinforcement and alignment with our strategic objectives, the HDFC Bank Culture Framework ensures Collaboration Inclusion Humility that every employee in the Bank is equipped to succeed in an Each pillar represents elements that the Bank stands for and believes in. ever-evolving landscape. It is the Reinforcement of the HDFC Bank Way continues to be a key focus area of cornerstone of our identity and the the Bank. driving force behind our collective success. As we embrace new challenges and opportunities, our unwavering commitment to our culture remains steadfast, propelling us towards excellence. Integrated Annual Report 2023-24 13 9 

SO C I A L – P E O P L E CORE OF NCC Nurture Performance Create Positive Development and Coaching Environment Growth Conversation Care Speak Listen to Care for Me Respectfully Understand as a Person Collaborate Build Network Work Across Manage Conflict Boundaries Cultural transformation is an enduring espoused Cultural ethos. Extensive Additionally, we introduced journey marked by numerous small investments on enabling, equipping an engaging and educational and big milestones propelling it and measuring managerial impact on communication campaign, Living forward. However, the critical success culture have been made over the last the HDFC Bank Way. This Bank factor in this is Leadership Conviction, three years. wide campaign offers practical Sustained Commitment and Collective scenarios to illustrate acceptable One such investment was the launch Action. We began this journey in the and unacceptable behaviours. of NCC Leadership Dialogues. year 2021 and several initiatives over By equipping our workforce with Through this initiative, senior leaders the last three years have been taken knowledge and guidance they from across the country engaged to sustain the momentum of change. need, we are empowering them with employees sharing personal 20,000 plus people managers of to lead the transformation in their stories and anecdotes from their life the Bank who are the real Culture area of influence. Culture is the journey that amplify our core values. Champions were trained on the collective behaviour of our 2 lakh These dialogues not only served as supervisory behaviour framework plus employees and it has been inspiration but also provided valuable – Nurture, Care, Collaborate (NCC), our endeavour to inspire them at insights into overcoming challenges, to further strengthen on ground an individual level to participate in embracing resilience and staying supervisory behaviours in line with our this journey. hopeful. 14 0 HDFC Bank Limited 

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Some of the interventions shared below are examples of various communication themes that were used during the year. #Mind your Language NCC Short Films NCC Micro-experiences Evolve 30 second reels were NCC short films were NCC micro-experiences Evolve aims at building created to explicitly conceptualised, scripted is a communication series capability of our people articulate managers’ or and enacted by HDFC to guide employees managers’ to effectively colleagues’ unacceptable Bank employees. The especially managers in demonstrate managerial behaviours @HDFC Bank. films picturise the negative creating instant, realistic behaviours including holding The reels reiterate the impact of bad behaviour and meaningful micro performance conversations, message that HDFC Bank is on team morale and how experiences for their using appreciative inquiry, psychologically a safe place managers can correct teams. The idea is to create bridging the generational to work, where employees the situation. The films a positive environment gap at work and improving should feel valued, trusted encourage our viewers to which will strengthen connect with new joiners in be authentic. adopt NCC principles as a emotional bonds among their teams. way of life. team members and build stronger, cohesive teams. These micro experiences focus on the 9 practices of NCC and are shared with all employees on a regular basis. Listening Architecture Our Listening Architecture uses phygital platforms to conduct regular surveys and dipsticks gathering feedback to understand We successfully launched Bi- Vibes is a team-sentiment employee sentiment. annual Culture Pulse Survey in 2023 survey tool designed to measure This allows us to create to assess the on-ground sentiment employee experience with tailored actions to improve of employees. The survey broadly their managers in the Bank. employee morale and measured Culture parameters Over 15,000 people managers reinforce our culture.—Humility, Integrity, Inclusion, received feedback from 1.16 Nurture, Care, Collaborate. Over lakh employees. one lakh employees responded to the survey. Integrated Annual Report 2023-24 14 1 

SO C I A L – P E O P L E Accelerated Journey milestone a year ahead of the targeted As a testament to our efforts on Diversity, Equity and date. At the end of FY24, our gender in this space, the Bank has Inclusion ratio was 26.04 per cent, up from 18 been awarded ET Now’s Best per cent in FY21, marking a change Organisations for Women The Bank had a stated objective of of almost 8 per cent in three years. for 2024 reaching 25 per cent gender diversity This represents a more than 2.5 times by FY25 . Our active leadership, increase in the number of women, sponsorship and relentless effort from 21,746 in FY21 to 55,610 in FY24. on the ground has accelerated We now aim to achieve 27 per cent our journey towards crossing this gender diversity by FY27. Women Headcount Gender Ratio (%) 55,610 8% 26.04 Increase 2.5 X Increase 18 21,746 FY21 FY24 FY21 FY24 Growth Reflected in Our Increasing Employee Strength 2023-24 2022-23 Categorisation Men Women Total Men Women Total Employees By Category Senior Management 178 21 199 154 17 171 Middle Management 6,940 1,053 7,993 5,525 801 6,326 Junior Management 25,902 4,813 30,715 22,001 3,836 25,837 Non Supervisory Staff 1,24,897 49,723 1,74,620 1,06,342 34,546 1,40,888 Total 1,57,917 55,610 2,13,527 1,34,022 39,200 1,73,222 Categorisation Permanent 1,57,917 55,610 2,13,527 1,34,022 39,200 1,73,222 Contract 31 7 38 26 7 33 Total 1,57,948 55,617 2,13,565 1,34,048 39,207 1,73,255 By Region Abroad 154 83 237 132 63 195 East 17,899 4,823 22,722 15,417 3,199 18,616 West 59,036 20,721 79,757 49,630 14,408 64,038 South 36,617 16,097 52,714 31,196 11,330 42,526 North 44,211 13,886 58,097 37,647 10,200 47,847 Total 1,57,917 55,610 2,13,527 1,34,022 39,200 1,73,222 By Age <30 57,737 32,683 90,420 47,115 21,684 68,799 30-50 97,599 22,477 1,20,076 85,229 17,210 1,02,439 >50 2,581 450 3,031 1,678 306 1,984 Total 1,57,917 55,610 2,13,527 1,34,022 39,200 1,73,222 The Bank has 38 contract employees in addition to the total headcount. Please refer to our BRSR disclosure. 14 2 HDFC Bank Limited

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Percentage of Employees by Category, Gender & Age Group Male Female <30 30-50 >50 Total Senior Management 89.4% 10.6% 0.0% 29.1% 70.9% 0.1% Middle Management 86.8% 13.2% 0.0% 85.4% 14.6% 3.7% Junior Management 84.3% 15.7% 1.7% 94.8% 3.5% 14.4% Non-Supervisory Staff 71.5% 28.5% 51.5% 48.1% 0.4% 81.8% Total 74.0% 26.0% 42.3% 56.3% 1.4% 100.0% ‘Great Place to Work its institutional strength and Recertification’ dedication to fostering excellence. The Bank has been certified as This certification underscores the a ‘Great Place to Work’ for 3rd Bank’s commitment to nurturing consecutive time and we continue its employees with best-in-class to focus on building our employer people practices and processes. Likewise, the Bank has also been brand around the tenets of Pride, Care recognised as India’s Best and Inclusion. HDFC Bank has been consistently Workplaces in BFSI for two recognised as a Great Place to consecutive cycles. We have also Work® organisation for three been awarded the Nation Builder consecutive cycles, highlighting Award FY24. A. Intensifying Diversity Hiring function. With the introduction of AI Building an inclusive organisation Diversity hiring was a key focus powered hiring the attempt is to make requires continuous effort of area for the Bank and this was our hiring process fair and unbiased. recognising and addressing seamlessly woven into our overall This has especially helped in our unconscious biases and building talent acquisition strategy. Throughout diversity hiring agenda. support structures. Over the past year, the year, we spearheaded targeted We take pride in several ‘All Women we have focused on identifying high-initiatives such as women hiring Branches’ doing exceptionally well potential women in junior and middle drives and specialised programs on customer service, compliance, management and actively guiding their to reintegrate returning women performance and all other major career paths. This includes helping professionals after career breaks. parameters. This serves as a them take on higher-impact roles, Our partnerships with all-women testimony to the fact that inclusive equipping them with the necessary colleges and diversity partners further organisations perform better in the skills and competencies and providing underscore our dedication to fostering long run. Many of these branches visibility of opportunities. are situated in deep geographies an inclusive workforce. Innovation where they also serve as a lever for continues to drive efficiency and social change. effectiveness in our talent acquisition Women Employees B as a % of total Employees A Improving retention 26 Intensifying the and engagement This has been diversity footprint through career achieved by a through multiple advancement, combination of hiring and capability building, elevation programs 74 enabling policies, etc. Female    Male Integrated Annual Report 2023-24 14 3 

SO C I A L – P E O P L E 21st June - Inclusion Day for the Bank This year, we marked our progress in the DEI journey by announcing the Bank’s Diversity, Equity, and Inclusion policy on Inclusion Day. The campaigns revolved around the theme “Respect for All” highlighting humility and respect as central pillars of our inclusive culture. Employees nationwide shared their personal stories on the meaning of ‘Respect’ for them. On June 21st, our events featured notable speakers, including Mr. Sanjiv Mehta, Mrs. Zia Mody, Mr. Patanjali Keswani and Ms. Dia Mirza. B. Women Retention and Engagement The Bank has developed various initiatives and supportive policy measures which would enable us to ensure higher women engagement, offer them career growth opportunities, thereby retain women and build the leadership pipeline. Some of our key initiatives include: Pleasant Parenthood Career Accelerator Stay Interviews Programme Programme The ‘Broken Rung’ is a global The ‘Career Accelerator Program’ ‘Stay interviews’ with select women phenomenon where diversity ratios is our flagship initiative designed for employees across levels have helped across mid and senior levels in mid-senior level women in the us pre-empt support requirements organisations drop significantly. This Bank. Given its success, we continue and customise solutions at an is because life-stage milestones often to run this program to maintain a individual employee level. coincide with career milestones for robust talent pipeline of women women. In recognition of this, the advancing into senior leadership Bank had introduced the ‘Pleasant roles. Over 200 high-potential Parenthood Program’ which is women leaders have been part of a slew of benefits for primary the CAP journey across two cycles. caregivers. This includes flexibility Sponsored by the DEI Council, the options, rating protection, wellness program focuses on authenticity and support and manager guidance. self-awareness, building a leadership These policy measures are now brand, executive presence, influencing becoming a ‘Way of life’ in the Bank. and networking. 14 4 HDFC Bank Limited

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements All the above actions have resulted Women who Reported a Gap between Employee in higher retention rates for women Positive Workplace Experience Experience of Men and Women and significant improvement in their Culture Pulse, 2024 Culture Pulse, 2024 engagement scores. The number 81% 5% of women employees who reported VOICE, 2021 79% VOICE, 2021 8% a positive workplace experience VOICE, 2020 68% VOICE, 2020 10% has significantly increased over the years. The gap between employee experience of men and women has also steadily declined. This evolution underscores the Bank’s commitment to nurturing an inclusive and diverse workplace. Return to Work of Permanent Employees that Took Parental Leave No. of employees entitled No. of employees that No. of employees who returned 2023-24 to parental leave took parental leave to work after leave ended Maternity Leave      1,819     1,774 All eligible employees Paternity Leave      5,600     5,590 are covered* Total      7,419     7,364 Retention of permanent employees that took parental leave No. of employees who No. of employees No. of employees No. of employees entitled returned to work after 2023-24 that took parental leave who returned to work to parental leave leave ended and were still in the previous year after leave ended employed after 12 months Maternity Leave 1,218 1,167 747 All eligible employees Paternity Leave 4,831 4,814 3,633 are covered* Total 6,049 5,981 4,380 *All the permanent employees (2,13,527 as on 31st March 2024) were eligible for parental leave, subject to Government Regulations and Bank’s Policy Integrated Annual Report 2023-24 14 5 

SO C I A L – P E O P L E Talent Acquisition the Future Banker 2.0 program has surged impressively compared to the 58,500+ FY24 was, characterised by previous fiscal year. External Hiring (excluding significant investments in building Gender diversity remains a erstwhile HDFC Limited Talent Acquisition capability. Our cornerstone of our organisational employees and migration efforts were centred on improving ethos, seamlessly integrated into our from HDB Financial efficiency, ensuring diversity, talent acquisition strategy. Throughout Services) enhancing multi-channel sourcing the year, we ran targeted initiatives capabilities, optimising costs per such as women hiring drives and hire and integrating advanced AI- the “Bank Again” program, which 33% based technologies. invited women ex-bankers to rejoin With a keen focus on sustainability Gender Ratio in Hiring the workforce after a career break. and innovation, we have invested in We also have partnerships with building a fresh talent pipeline through several colleges especially in deep strategic partnerships and job-ready geographies. We maintained a gender models. For example, participation in ratio in hiring of 33 per cent in FY24. 2023-24 New Hire Rate 2023-24 New Hires by Category* Men Women Total Men Women Total Senior Management 6 1 7 3.4% 4.8% 3.5% Middle Management 303 71 374 4.4% 6.7% 4.7% Junior Management 3,242 735 3,977 12.5% 15.3% 12.9% Non Supervisory Staff 56,524 28,233 84,757 45.3% 56.8% 48.5% Total 60,075 29,040 89,115 38.0% 52.2% 41.7% 2023-24 New Hire Rate 2023-24 New hires by Region* Men Women Total Men Women Total Abroad 28 20 48 18.2% 24.1% 20.3% East 6,286 2,492 8,778 35.1% 51.7% 38.6% West 21,331 10,511 31,842 36.1% 50.7% 39.9% South 14,616 8,876 23,492 39.9% 55.1% 44.6% North 17,814 7,141 24,955 40.3% 51.4% 43.0% Total 60,075 29,040 89,115 38.0% 52.2% 41.7% 2023-24 New Hire Rate 2023-24 New Hires by Age* Men Women Total Men Women Total <30 36,675 22,392 59,067 63.5% 68.5% 65.3% 30-50 23,211 6,619 29,830 23.8% 29.4% 24.8% >50 189 29 218 7.3% 6.4% 7.2% Total 60,075 29,040 89,115 38.0% 52.2% 41.7% *89,115 hiring includes erstwhile HDFC Limited employees and migration from HDB Financial Services Focus on Arresting Attrition Post the pandemic, the BFSI sector had experienced a significant surge in employee attrition. It is also among the largest employers of a young workforce. Research indicates a notable shift in the younger generation’s response to ‘what you want from life’. This heightens our challenges in retaining young talent, especially on the frontline. However, in FY24 the Bank took up the challenge to arrest the trend and reverse it which involved a multi-pronged approach led by a Task Force at the highest level. The Task Force has recommended several actions which have been taken up for implementation. 14 6 HDFC Bank Limited 

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements The various actions undertaken included, but were not limited to, the following: Redesign of New Joiner experience Refining Bank’s policies • Defining and measuring the and processes Manager’s role in ensuring smooth This included streamlining the assimilation of the young talent Onboarding process, robust • Improving time to productivity by orientation and learning processes introducing on the job training and establishing manager and various skill-based training accountability measures and assessments in the zero-day onboarding session • Establishing clear goals and defining early success parameters Holding Managers and Ensuring continuous Leaders accountable for on-ground support by HR People metrics with defined and business leaders success parameters All this has resulted in a significant drop of 7 per cent in the attrition rate in FY24 compared to the previous Financial Year. Our effort is to continue to stay focused on minimising early attrition and sustaining the downward trajectory on overall attrition. 2023-24 Attrition Rate 2023-24 Attrition by Category Men Women Total Men Women Total Senior Management 15 1 16 9.0% 5.3% 8.6% Middle Management 311 52 363 5.0% 5.6% 5.1% Junior Management 2,892 583 3,475 12.1% 13.5% 12.3% Non Supervisory Staff 35,403 12,737 48,140 30.6% 30.2% 30.5% Total 38,621 13,373 51,994 26.5% 28.2% 26.9% 2023-24 Attrition Rate 2023-24 Attrition by Region Men Women Total Men Women Total Abroad 12 5 17 8.4% 6.8% 7.9% East 3,998 872 4,870 24.0% 21.7% 23.6% West 12,978 4,567 17,545 23.9% 26.0% 24.4% South 9,933 4,326 14,259 29.3% 31.5% 29.9% North 11,700 3,603 15,303 28.6% 29.9% 28.9% Total 38,621 13,373 51,994 26.5% 28.2% 26.9% 2023-24 Attrition Rate 2023-24 Attrition by Age Group Men Women Total Men Women Total <30 18,524 9,086 27,610 35.3% 33.4% 34.7% 30-50 19,972 4,267 24,239 21.8% 21.5% 21.8% >50 125 20 145 5.9% 5.3% 5.8% Total 38,621 13,373 51,994 26.5% 28.2% 26.9% Integrated Annual Report 2023-24 14 7 

SOCIAL – PEOPLE

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Learning and Development experience aligned with the Bank’s learning. Our key drivers are strategic priorities. This encompasses learning outcomes aligned with The Learning and Development team customised onboarding, functional leadership excellence, operational at the Bank fosters a continuous capability building, compliance efficiencies, customer experience and learning ecosystem through rich and and regulatory training, leadership business performance. diverse offerings enabling employees development initiatives and digital to deliver a world-class customer Learning Experience Integration Project Sales and Platform (MPower) Associate Workforce Our biggest highlight in the learning L&D collaborated with business All Sales and Associate Workforce space this year has been the launch teams to roll-out a range of joining the Bank undergo a structured of MPower, our learning experience learning interventions including onboarding programme called platform in July 2023. In this initiative, product and process training, ‘Swagat’. It is followed by mandatory/ we have partnered with global leaders FAQs, toolkits, amongst others to regulatory modules on our learning in learning technology. The platform enable a quick assimilation of the platform. In collaboration with features the Bank’s proprietary incoming employees. respective business teams, we also content alongside a diverse range offered curated programmes on of material from top-tier content products, policies and procedures providers worldwide. The success of to strengthen their domain expertise. a newly launched technology platform Additionally, theme based monthly is measured by its adoption. We are learning campaigns were delivered in pleased to report that within the first vernacular languages across various 30 days 86 per cent of our employees professional development areas. had adopted the platform, and by year-end, this figure rose to 98 per cent. This is the highest adoption rate in the industry for an organisation of our size. 2,14,351 Total no. of unique learners on MPower* 21,42,270 Total no. of learning completions on MPower* 32,51,653 Total no. of learning hours completed on MPower* *(includes resigned and exited staff) Integrated Annual Report 2023-24 14 9 

SO C I A L – P E O P L E Leadership and Professional HDFC Bank’s Leadership Academy Development (LPD) HDFC Bank’s Leadership Academy offers a comprehensive range of flagship At HDFC Bank, we build ‘leadership’ leadership development programmes. These programmes focus on the entire that enables and drives performance, leadership continuum, starting from the potential first time people managers culture and transformation. The to executive leadership. Each programme is highly customised to cater to the Leadership and Professional specific requirements at each of these leadership tiers*. Development landscape is designed to develop key leadership capabilities HDFC BANK across managerial levels. We LEADERSHIP ACADEMY Builds strategic vision to create value significantly scaled up our leadership Executive and increase competitive advantage Leader development interventions in FY24. Builds strategic, resilient and To build skills, share perspectives and Senior Manager collaborative skills for business impact best practices at scale, we introduced Builds leadership skills to translate strategy into meaningful actions two new Communities of Learning Middle Manager that offer relevant and engaging online live webinars focused on common Prepare managers to engage & develop Frontline Manager their team to achieve business results developmental needs as well as in- demand industry skills.* Enables transition from individual First Time Manager contributor to people manager *GRI 404-2 15 0 HDFC Bank Limited 

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Talent Development Initiatives 6 Webinars of ChargeUp and MagNet with 18,000 + participation ChargeUp is all about boosting Managers Network is our unique interpersonal effectiveness and space dedicated to delving into enhancing productivity. It is tailored leadership and managerial topics to our context and is relevant for expertly crafted for our People every employee of the Bank*. Managers*. HDFC Bank Care Programmes* These programmes reflect our intent to create a caring organisation and extending our reach to employees’ families. Initiatives include support to retiring employees and their families as well as engaging children in age-appropriate interventions. Notably, our skill development programme designed to equip the next of kin of deceased employees has been a very gratifying initiative. Average Hours of Training by Category and Gender** Male Female Total Senior Management 7 15 8 Middle Management 18 22 19 Junior Management 24 27 25 Non-Supervisory Staff 31 38 33 Total 29 37 31 **In FY24, over six and a half million learning hours were clocked, registering an increase of over 72 per cent in per employee hours over FY23. This is attributed to the focused efforts on scaling up the classroom delivery format across all programmes. This year also saw the transformation of our digital learning ecosystem through substantial investments in a new learning platform with best-in-class content. Programme for Skill Development Personal Pathway to Wellness Retiring Employees of Kin Hires Effectiveness Financial Planning Programme for Teens for Parents of Employees It is this commitment to holistic development at the Bank that has earned us many accolades in various forums like ISTD where we won a National Award for Innovative Training practices, Global Private Banking Awards for ‘Best Private Bank for Education & Training of Private Bankers (Asia)’ and ‘Best Private Bank for Growth Strategy (Asia)’ and FEDAI for Workshops category in 2023. *GRI 404-2 Integrated Annual Report 2023-24 15 1 

SO C I A L – P E O P L E Employee Wellness that a healthy workplace is more our pursuit of creating a workplace productive and positive, and the Bank that truly values the wellbeing of At HDFC Bank, we are deeply is committed to creating a workplace its employees, we focus on four committed to employee wellbeing where everyone can succeed. In interconnected pillars: and holistic development. We believe OUR EMPLOYEE WELLNESS PILLARS Physical Wellbeing Social Wellbeing To improve overall Strong network of health index employees to bring in a sense of belongingness Emotional Wellbeing Financial Wellbeing It is okay to ask for help Making employees financially prudent In each of these areas we provide the responsible for site security, undergo labour, fostering a work environment support, resources and programs to comprehensive training in accordance that respects human rights and labour help our employees thrive and lead a with the provisions of the PSARA Act, laws. Through our Environmental, fulfilling, balanced and healthy life. The 2005. This training encompasses Social and Governance (ESG) Policy Employee Experience and Wellness security protocols, safety measures, Framework, we actively engage Team is dedicated to helping our Bank proper etiquette and appropriate with our vendors and suppliers employees become the best version personal conduct. encouraging them to adhere to of themselves. At HDFC Bank, we are deeply these same standards including the To ensure the safety and well-being committed to upholding ethical prohibition of child labour, forced of our employees we prioritise practices across our operations. labour and any labour associated with maintaining a secure workplace We strictly prohibit all forms of child human trafficking . environment. Our facility attendants labour, forced labour and compulsory 15 2 HDFC Bank Limited 

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Wellness Newsletter Wellness Calendar Wellness Channel A wellness newsletter helps create Daily bytes or activities encouraging A Wellness channel on a Learning awareness about the importance of employees to champion their health Experience Platform (LXP) serves the individual health. and holistic wellness. purpose of promoting the well-being among employees through various articles, videos, and courses. EAP-Employee Wellness Webinar Assistance Program Employee Assistance Program (EAP) Bank conduct wellness webinars provides confidential and professional to prioritise employee well-being, support to employees facing personal promote work-life balance and build a or work-related challenges. positive work culture. Integrated Annual Report 2023-24 15 3 

SO C I A L – P E O P L E Collective Bargaining Employee Connect Initiatives Over one lakh employees Agreements Employee Connect, our dedicated actively participated in more The Bank also has an employee platform for employee engagement than 20 different initiatives association. As of FY24, 0.10 per and well-being, organised a diverse conducted throughout cent of our permanent employees are range of initiatives throughout the year the year showcasing the members of this association. These offering employees opportunities to widespread enthusiasm for employees are covered under the connect beyond work. These initiatives these engagement activities. Bipartite Settlement Provisions. The spanned areas such as sports, Bank typically implements operational art, music, wellness, photography, changes in accordance with internal cooking, and writing ensuring there or Bipartite Settlement agreements, was something for everyone. We which do not require notice under the also included family members, Industrial Disputes (ID) Act. However, emphasising the importance of if the Bank makes any operational inclusive engagement which received changes outside of these settlements, an overwhelmingly positive response. a 21-day notice is required under Section 9A of the ID Act. Some of the key initiatives undertaken in the Financial Year 2023-24: Josh Unlimited HUNAR in Chandigarh, Chennai, Kolkata and 10th Season of Josh Unlimited HUNAR, our Talent Hunt initiative, Mumbai culminating in a Grand Final in – Bank’s beloved multi-sports provided a platform for employees and Mumbai. The on-ground event which and multi-discipline event was their families to showcase their singing received an enthusiastic response conducted in 46 cities across India and dancing skills with regional rounds was broadcast live for all employees sparking excitement and a high level across India. of engagement from our employees. Family carnivals were also arranged for engaging family members with various fun filled activities. Top 12 cities qualified and competed in the Grand Finale in Mumbai. 15 4 HDFC Bank Limited 

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Take-a-Break Zaika initial online rounds in five cities and a To promote relaxation and provide a Season 5 of Zaika, our unique in- finale in Mumbai. The winning recipes short break from work, we introduced house cooking contest for employees are now compiled in the Zaika e-book weekly brain-teasing quizzes via showcased their culinary skills with published on Our World portal. email covering topics like general knowledge, famous personalities, logical reasoning and visual puzzles. This initiative garnered significant interest and participation from employees offering a refreshing break from their routine. Energise Yourself We prioritised mental wellbeing through a series of webinars on topics like mental health for everyone and Mental Health First Aid, Work Life Balance. These sessions helped employees stay happy and energised, fostering overall wellbeing. Digital Voice Hunt In the 4th season of the Digital Voice Hunt, we organised a singing competition for the children, spouses and parents of our employees. We received positive feedback for engaging with their family members. Summer Camp science experiments, fire-free cooking, Funtakshari talent showcases and behavioral Season 3 of Funtakshari, an activity We organised a unique 5-day online learning which received heart-warming centred around popular Bollywood summer camp for the children of feedback from participants. songs, was a huge success with our employees featuring activities like employees and their families enjoying the fun competition through audiovisual quiz rounds. The initiative garnered widespread popularity and appreciation. Syahi Syahi, the Bank’s online writing contest, introduced a Short Poem category this season where employees showcased their creativity through captivating fictional and anecdotal accounts. An external judge evaluated the entries and the winning stories are published in e-book format on the Our World platform. Integrated Annual Report 2023-24 15 5 

SO C I A L – P E O P L E Corporate Photography Contest In an inter-corporate photography contest, our employees’ best photographs were shortlisted in the top 1,500 securing the Bank 1st place for the highest participation. International Women’s Day Celebration International Women’s Day celebrations featured a range of activities across multiple offices in the Bank including national-level webinars addressing relevant themes for women employees, along with workshops on topics such as tree planting, self-defence and sound therapy. AnalytIQ In the 4th Season of AnalytIQ, an online brainteaser contest, employees were offered the option to play Chess, Sudoku and Scrabble online, following a round-robin format with multiple levels of shortlisting. This competitive event sparked excitement among employees leading to high engagement and participation. Xpressions During the 9th season of Xpressions, a drawing and painting contest for employees and their children, we witnessed a display of creative artwork by our employees and their talented children. These were showcased as wallpapers on the Bank’s laptops and desktops earning recognition across the organisation. Wanderers Under this banner, outdoor activities are conducted providing employees a chance to participate in one-day monsoon treks, adventure sports like river rafting and invigorating breakfast cycle rides. A total of 18 activities were organised across 8 cities including Ahmedabad, Bengaluru, Bhopal, Chandigarh, Jaipur, Mumbai and Pune enabling participants to explore enchanting nature trails and rediscover the joys of the outdoors. 15 6 HDFC Bank Limited 

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Christmas Celebration for Children The joyous occasion of Christmas was celebrated with great enthusiasm at various offices nationwide bringing immense delight to employees’ children through engaging activities such as a captivating Magic Show and a Unique DIY Art and Crafts Session. Other Engagement Initiatives—Fun @ Workplace Various activities such as Ludo and online FIFA championships were organised in Mumbai. Additionally, Bollyfit sessions brought employees together to dance to Bollywood tunes boosting energy levels. Motorbike rides were arranged along with engaging activities like Time Machine and Million Dollar Challenge on digital platforms. Integrated Annual Report 2023-24 15 7 

S O C I A L—C O M M U N I T Y Enabling We firmly believe that the well-being and prosperity of the communities we serve are intrinsically linked to our success Community as a responsible corporate citizen. Our commitment to creating a positive impact goes beyond mere financial Growth transactions, as we actively seek to address social, economic and environmental challenges through our impactful Corporate Social Responsibility (CSR) initiatives. Driven by a deep sense of advancing social inclusion, our CSR and consultative approach helps us responsibility, we have implemented efforts are guided by a steadfast curate programmes which address strategic initiatives aimed at fostering commitment to creating lasting the specific needs and circumstances sustainable development and change in the communities we serve. of our targeted beneficiaries. We enhancing the quality of life for The multifaceted dimensions of our collaborate with a diverse range of all stakeholders. From promoting community engagement and CSR CSR project implementation partners education and supporting initiatives showcase the meaningful and dedicated employee volunteers entrepreneurship to championing impact of our partnerships and to effectively implement a multitude of environmental conservation and programs. A participatory, bottom-up sustainable development initiatives. 15 8 HDFC Bank Limited 

SO C I A L—C O M M U N I T Y in project tracking. Internal evaluations CSR program also undergoes annual format within CSR Rules, providing are conducted for all projects to internal audits. This helps us ensure stakeholders with clear insights into assess the project’s achievements compliance with CSR regulations. Our the Bank’s significant CSR activities against envisaged milestones, comprehensive reporting mechanism, and achievements. while external evaluations provide which includes reporting our CSR an independent assessment of the projects in the Annual CSR Report, impact generated by projects are done the Directors’ Report within the K945.31 crore for select large-scale projects as per Bank’s Annual Integrated Report and Total CSR Spend in the CSR rules. publication on the MCA website. This Financial Year 2023-24 helps uphold transparency of our To check the adequacy of internal community initiatives. These reports controls and review mechanisms; our meticulously follow the prescribed This year we conducted measure the outcomes and based on actual outcomes Impact assessments for our impact of the selected project that had already taken CSR projects with a budget of by tracing the changes since place. The evaluation J1 crore or more. the implementation of the was guided by the seven project and establishing the principles outlined by the The impact assessments causes of these changes. SROI Network. The findings considered the OECD-DAC and observations from criteria, which is widely In FY24, we conducted this study shall be used regarded as one of the gold an impact assessment of to formulate future course standards in evaluation 61 projects. Based on the corrective actions and a frameworks. This framework assessment findings, several strategy for scaling up assesses the project’s recommendations were the project. indicators by determining proposed for the evaluated their Relevance, Coherence, projects to enhance their In the following sections, we Effectiveness, Efficiency, effectiveness & accessibility, have showcased the results Impact and Sustainability. and to strengthen their from select evaluations These criteria provide a capacity to scale, deepen of our projects under normative framework used to and extend the duration each of the focus areas. A determine the merit or worth of outcomes. comprehensive repository of an intervention (policy, of the impact assessments We also conducted evaluative strategy, programme, project conducted during FY24 can SROI studies of two projects or activity). Other frameworks be found here.* within the overarching theme like the standard Outcome-of ‘Skill Development and Impact Framework was Livelihood Enhancement’ also followed to analyse and *GRI 413-1 16 0 HDFC Bank Limited 

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Parivartan—Progress Through Sustainable Initiatives* We believe progress starts with change (Parivartan) that empowers communities through sustainable interventions for their holistic development. Through our social initiatives, housed under the umbrella of ‘Parivartan’, we are committed to transforming the lives of millions of Indians. Our goal is to drive economic and social development sustainably by empowering communities across the country. Parivartan aims to break the cycle of poverty and marginalisation by empowering underprivileged communities and facilitating positive change in their lives. Our efforts Supporting school infrastructure in rural areas enable these communities to participate and contribute to the Nation’s development journey actively. We have the following focus areas under which we carry out diverse interventions: a. Rural development b. Promotion of education c. Skill training and livelihood enhancement d. Healthcare and hygiene e. Financial literacy and inclusion Aligned with our identified focus areas, we have established seven goals and thirteen sub-goals to be achieved by the year 2025 with the intention of directing our community development activities. The Bank conducts CSR activities across India through various initiatives. 10.19 crore+** Lives impacted Paddy field demonstration underway at Prakasam, Andhra Pradesh **Refers to achievement since inception till March 31, 2024 *GRI 413-1 Integrated Annual Report 2023-24 16 1 

SO C I A L—C O M M U N I T Y Employee Engagement FY24 Under Parivartan, the Bank organised several employee engagement and volunteering activities throughout FY24. These included awareness sessions on environmental topics like kitchen gardening, understanding the role of women in sustainable agriculture and saving sparrows. Along with in-office events such as seed-ball distribution drive, Christmas and Diwali Sale of NGO products and a donative drive for stray animals were organised. E NG A G I N G O U R I M P A C T M A K E R S At HDFC Bank, our ethos resonates deeply Parivartan Volunteering Month with the spirit of giving back. We believe While our commitment to supporting 4,000 that true progress is measured not just communities remains steadfast year-by financial metrics, but by the indelible round, we took our efforts to the next level Hours dedicated to impact we leave on the lives we touch. this year by organising an entire month volunteering efforts Employee Volunteering is an opportunity to dedicated to volunteering initiatives. strengthen the very fabric of society as it Throughout the month our employees 4,000 cultivates a sense of community, enhances engaged in a diverse range of activities to team cohesion and allows us to give back support the underprivileged, spearheading Employees actively to society in meaningful ways. impactful donation drives, knowledge sharing, raising awareness about financial engaged in diverse literacy among youth aspirants etc. volunteering activities 94,000+ Total Number of Volunteers 15 Activities successfully 46,500+ completed Total Number of Hours StartUp Programme poised to benefit from investments wherein In alignment with the Government of the Start-Ups are selected through a 42 India’s flagship initiative ‘Startup India’, three-stage rigorous process. Incubators and 170+ we have an annual grants program for Our themes span the spectrum of societal social Start-Ups. Parivartan SmartUp needs from Climate Innovation, Affordable Start-Ups supported Grants is a beacon of support for social Healthcare, Sustainable Agriculture, impact Start-Ups, offering monetary Education, Skilling & Livelihood, Waste ~50 grants to their incubators and fostering Management, Tech for Good, Gender an environment of growth and success. Diversity & Inclusion to Financial Inclusion, Senior employees dedicated The incubators recommend Start-Ups ensuring a comprehensive approach to hours 16+ to shortlisting sustainable development. Start-Ups Employee Payroll Giving Blood Donation Drive: Programme Parivartan orchestrated its 15th Blood We have embraced the Give India Payroll Donation Drive, spanning an impressive ~6.77 lakh Giving Programme where our employees 1,388 cities with 7,487 camps set Individuals participated donate to a charity of their choice, and up nationwide. A notable number of we support by matching 85 per cent of individuals across the country stepped their contributions towards the same. forward to participate in this event. ~5,90,175 Units donated by employees ~1,392 collectively Employees subscribed to the Give India Payroll Giving Programme 16 2 HDFC Bank Limited 

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Other Volunteering Initiatives 3021 employees participated, Decorated the Christmas Tree with 227 students in four schools volunteering 6000+ hours and different chits on the requirement impacted through collaboration with planting 6.20 lakh+ trees for to support Stray Animals, 80+ Teach For India the Tree Plantation Drive* employees offered help to strays 210 wishes of underprivileged children Six employees from two teams 800+ employees donated old from Aashish NGO was fulfilled participated in the bamboo clothes and footwear, distributed to on Christmas Day, while around 8 plantation drive* underprivileged children employees spent time interacting with residents of an old age home and 3000 seedballs distributed 690 employees participated in a distributed fruits and food items to the employees* marathon, promoting the message of right to education K2 lakh+ was raised in the Step-tracking on the Impact League NGO Product Sale, supporting app for fundraising, reaching 12,118+ 150+ staff members attended various causes subscriptions by March 2024 the Virtual Kitchen Gardening Workshop to learn about sustainable Organised webinar on sparrow food production conservation with Nature Forever Society *Green Initiatives Integrated Annual Report 2023-24 16 3 

SO C I A L—C O M M U N I T Y CSR Initiatives and United Nations Sustainable Development Goals By aligning our CSR focus areas with the Sustainable Development Goals (SDGs), we create a meaningful impact that fosters resilient and thriving communities. PARIVARTAN INITIATIVES AND THE UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS Villages reached — 9270 Women entrepreneurs Households impacted — 10.86 lakh+ created — 9.05 lakh+ Water Conservation SHGS revived and formed — 10,195 structures developed — 13,355 Individuals trained — 3.25 lakh+ Solar Lights installed — 55,125 Kitchen Gardens developed — 57,980 Biomass Stoves deployed — 13,340    Rural Skill Development Development and Livelihood Enhancement Our Focus Areas Promotion of Financial Education Literacy and Teachers trained — 20.19 lakh+* Schools supported — 2.86 lakh+* Inclusion Financial literacy camps Students impacted — 2.14 crore+* conducted — 23 lakh+ Community libraries built — 930 Individuals reached — Healthcare and Hygiene 1.71 crore+ People benefitted through health camps — 1.87 lakh+ Sanitation drives conducted — 1810 Units of blood donated — 23 lakh+ Household toilets constructed — 24,295 *lnclusive of immediate & Health camps organised — 7025 extended beneficiaries All values refer to achievements since inception till March 31, 2024 We strategically design each of our projects across five focus areas to yield lasting and impactful outcomes for our communities. Through targeted interventions in specific areas, we aim to address critical needs and drive positive change effectively. 16 4 HDFC Bank Limited 

SO C I A L—C O M M U N I T Y O U R G O A L S Bringing unirrigated Reducing our carbon footprint Promoting chemical-free land under irrigation and farming Our aim is to support 25 per cent uncultivated land under of households in each village with Our aim is to educate farmers on cultivation solar home lights, biomass chulha, various agricultural techniques Our aim is to increase the area biogas plants, solar study lamps and that improve productivity while under cultivation and enhance irrigation units. using locally produced manure and the cropping intensity of the This intervention includes promoting fertilisers, to reduce the reliance on land, thereby bolstering the biomass stoves as it improves indoor chemical fertilisers. agricultural sector. air quality and women’s health. This intervention is designed to allow We are working diligently to increase We have surpassed our tree planting us to maintain the soil, environment the cultivable land pan India. target, reaching 38 lakh, exceeding and human health by combining the initial goal of 25 lakh trees tradition, creativity and science. by FY25. OUR TARGETS Bringing land under Reducing the carbon and the Promoting chemical-free cultivation ecological footprint of our farming communities • Irrigate 2 lakh acres of unirrigated • To achieve 1 lakh acres of land by the year 2025 • 1,000 villages to have clean and farmland under chemical- • Bringing 1 lakh acres of land renewable energy solutions free farming under cultivation by the year 2025 A demonstration plot of Farmers Field School at Prakasam, Andhra Pradesh 16 6 HDFC Bank Limited 

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Holistic Rural Development Programme (HRDP) in Narmada, Gujarat The key focus areas of the intervention were Natural Resource Management, Skill Training & Livelihood Enhancement, Health & Sanitation and Promotion of Education. Narmada District intervention covered 12 villages The intervention led to an increase of Gujarat across the Nandod block wherein in the average net income from By focusing on improving land the villages were selected for agriculture, average income from and crop productivity, providing implementation because of their skill development and average agricultural training, enhancing remote location near the border income from livestock. health and sanitation infrastructure, thereby making it difficult for any and upgrading educational facilities, support to reach. HRDP aims to build local capacities, strengthen institutions and introduce technological inputs. This 42% 300% comprehensive approach ensures Increase in average net Increase in average income sustainable development, better income from agriculture from skill (income from income opportunities, improved enterprises) from Agriculture health outcomes and enhanced educational experiences for rural populations. The intervention under 51% 23% HRDP was implemented by our Increase in average income Increase in average partner Aga Khan Rural Support from livestock productivity of two major Programme (India) and undertaken crops from April 2019 to March 2022. The Based on the design of the the program interventions blending of results of HRDP program supported vary across projects various indicators grouped by HDFC Bank, a composite and geographies, it is into four thematic areas index has been developed not possible to ascribe namely Natural Resource called the Holistic Rural a single impact indicator Management, Skill Training Development Index that might be able to & Livelihood Enhancement, (HRDI) that indicates the accurately capture the Health & Sanitation and achievements of the HRDP overall performance of Promotion of Education. interventions leading to HRDP. Thus, HRDI serves overall improvements of the purpose of quantifying the results indicators. As the impact through the 35% 78% 50% 43% Increase over Increase over Increase over Increase over baseline baseline (Skill & baseline (Health baseline (Natural (overall HRDI) Livelihood) and Sanitation) Resource Management) Integrated Annual Report 2023-24 16 7 

SO C I A L—C O M M U N I T Y Positive Changes: The Installation of Solar Streetlights This FDP project was focused on the ‘promotion of renewable energy’ with the specific objective of improving the living conditions of rural communities through solar light availability and promoting clean and renewable energy solutions. The project was implemented in the Bastar and Raigarh regions of Chhattisgarh by the NGO partner PRADAN. Output 643 Solar lights installed Outcome 100% Of respondents reported feeling safe walking during evening hours Solar Lights installation at Dhamtari, Chhattisgarh* 98% Of respondents reported The members of the community theft incidents have “Yes, children’s education reported various positive changes drastically reduced in had been affected. Now following the installation of solar the village after the electricity lights. Enhanced safety and security failure, children are now was observed due to a decreased able to study even under threat of animal attacks and theft. streetlights. Children 9.17/10 There was increased mobility among feel comfortable to read Mean score on beneficiaries, particularly women and under this light because the likelihood of adolescent girls. Socialisation and it provides far better light recommending solar light community meetings have become than conventional light.” for well-being enhanced more frequent and children are more safety and security involved in playing and studying due to—Women FGD, Lailunga the availability of lights. *Representative image from a Parivartan project 16 8 HDFC Bank Limited 

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Rising Waters, Thriving Communities: Sustainable Solutions Across India Across Biswanath District, Assam, Nainital District in Uttarakhand, and Khorda District in Odisha, our climate projects stand united by a common commitment: to confront environmental challenges with sustainable solutions, ensuring the resilience and prosperity of rural communities. 141 Biogas units installed 3,550 Improved cookstoves distributed to households 2 Jal Minars constructed 1,285 Water purifiers distributed Low-cost farm pond at Uttarakhand* In Biswanath, where diminishing combat environmental degradation with access to clean water and rainfall and receding groundwater while enhancing their quality of sustainable energy sources. levels exacerbate water scarcity life. In Nainital, Uttarakhand, facing Meanwhile, in Khorda, Odisha, and deforestation, our initiative threats from declining glacial where uneven rainfall distribution focuses on establishing sustainable meltwater and erratic rainfall compounds water scarcity issues, water sources and promoting patterns, our interventions prioritise our project endeavours to provide alternative energy sources like clean water provision, rainwater clean water access through biogas units and improved harvesting and the distribution of innovative water management cookstoves. Through village-level eco-friendly cooking solutions. techniques and promote climate-meetings and the construction Through meticulous needs smart agricultural practices like of Jal Minars for water storage, assessments and transparent orchard development. we engage communities in end-user selection processes, we the transformative process ensure equitable distribution of empowering them with the tools to resources, empowering households *Representative image from a Parivartan project Integrated Annual Report 2023-24 16 9 

SO C I A L—C O M M U N I T Y Evaluating Transformation: SUVIDHA’s Impact Assessment This year, we commissioned The independent assessment Our programs aimed at addressing an impact assessment study focused on assessing the impact climate change by reducing by a third party, the Society of our interventions aimed at greenhouse gas emissions and for the Upliftment of Villagers sustainable development and promoting renewables through and Development of Himalayan community empowerment wherein initiatives like household-level Areas (SUVIDHA), to evaluate diverse tools and methodologies, biogas units, improved cook the effectiveness of our including survey sampling, stoves, solar lights, safe drinking Parivartan initiative. SUVIDHA monitoring surveys, data analysis, water devices and tree planting is a registered voluntary desk review and stakeholder activities resulting in the verified organisation working in the field consultations/beneficiary interviews outcomes aligned with multiple of sustainable agriculture for were utilised. The study was further Sustainable Development Goals marginal farmers, watershed certified by 4K Earth Science (SDGs) including improvements management, livelihood- Pvt. Ltd., an independent GHG in health, energy access, forest based activities and climate validation entity. management and domestic funding change mitigation. for project implementation. Outputs of the activities undertaken SDG Impacted: 328 7,758 9,071 Biogas units installed Improved cookstoves Street lights installed installed 1,058 14,136 6,86,464 Community-level drinking Solar home lights installed Seedlings planted water tanks installed Outcomes SDG Impacted: 43,832 tCO2 12,490 tCO2 100% Emission reductions GHG sequestered Households reported achieved reduced smoke exposure, improved indoor air quality and better health outcomes 17 0 HDFC Bank Limited 

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Promotion of Education interventions concentrate on teacher At the core of our initiative lies the training, incorporating alternative objective of enriching the learning We are dedicated to enhancing the methods, promoting innovation and journey of students. We have quality of education in India, aligning enhancing school infrastructure introduced smart classes in various our efforts with the Government’s through refurbishment. states aiming to integrate technology Sarva Shiksha Abhiyan. Under our Our mission is to elevate the standard with education. Parivartan initiative, our education of education in government schools. programs focus on various aspects including teacher training, scholarships, career guidance and infrastructural support for schools. This support encompasses promoting innovation in education, improving education quality through remedial classes, learning camps and providing special scholarships for underprivileged children. Our educational initiatives are designed to foster learning by establishing a conducive and efficient learning atmosphere in schools. Within the pillar of education in Parivartan, the Students using the science lab equipments O U R G O A L S Creation of Smart Schools Educational Crisis Scholarship Improving Learning-level Support (ECSS) Outcomes Our aim is creating a conducive learning environment for students Our aim is to support identified Our aim is to educate farmers on and enabling teachers to utilise economically challenged or students various agricultural techniques various teaching aids and tools. in crisis by providing scholarships that improve productivity while To ensure successful to continue their education and using locally produced manure and implementation, we have identified preventing dropouts. fertilisers, thus reducing the reliance six building blocks for smart school We believe that financial or personal on chemical fertilisers. development. Additionally, we crises should not hamper the This intervention is designed to allow will provide targeted support to development of bright young minds. us to maintain the soil, environment, each school based on detailed human health by combining need assessments and situational tradition, creativity and science. analysis of infrastructure availability, including space and electricity. OUR TARGETS • To convert 3,500 traditional • To support 25,000 meritorious • To cover 20 lakh students in schools to smart schools underprivileged students with class-appropriate learning levels scholarships by the year 2025 in all intervention schools by the year 2025 Integrated Annual Report 2023-24 17 1 

SO C I A L—C O M M U N I T Y COVID-19 Crisis Support Scholarship: Supporting Students During Challenging Times We have implemented the Outputs COVID-19 Crisis Support Scholarship project with 4,245 our implementing partner K12.36 crore Buddy4Study. It is a scholarship Students received Worth of scholarships program specifically designed scholarships awarded in total to assist individuals pursuing formal education, from Class Outcomes 1 to post-graduate levels, who have been adversely affected Impact of the Scholarship on Scholars under the age of 18 and their Guardians by the COVID-19 pandemic. To gauge the effectiveness of 88.2% 94.8% the project, DevInsights was entrusted to undertake the Of the scholarship primarily Beneficiaries reported that impact assessment study. utilised for school, college their academic and career or institution fees across all goals were influenced by the regions scholarship The project was executed on a national scale (divided into four Impact of the Scholarship on Scholars who are 18 years of age and above regions: North, South, East and West) and primarily targeted students who 94.4% 99.1% had either lost an earning member or parent(s) or those who had their Of the scholarship primarily Beneficiaries reported that livelihoods disrupted as a result of utilised for school, college their academic and career COVID-19. or institution fees across all goals were influenced by the regions scholarship 98.1% Beneficiaries reported that the scholarship played a significant role in their decision to pursue higher education Students reading in the school library 17 2 HDFC Bank Limited

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Skill Development & Livelihood Enhancement This initiative encompasses capacity building, promotion of financial literacy, credit and entrepreneurial endeavours, along with enhancing skills for agricultural and related practices. Under the overarching theme of capacity development and creation of livelihoods, Awareness session for a Self we have established separate goals for individual Help Group at Samastipur, Bihar and institutional enhancement. O U R G O A L S Increase in Individual Income Our interventions consist of Development and Sustenance establishing and operating enterprises, of Institutions Our aim is to enhance income with which include beauty parlours, a focus on underprivileged farmers, small shops, livestock management, Our aim is the development and youth, and women nationwide. We tailoring and more—for individual sustenance of institutions for have devised three distinct sub- beneficiaries, as well as processing livelihood enhancement, primarily goals to approach this in a targeted units, packaging units, fisheries and community institutions such as and methodical manner. handicrafts—for group enterprises village development committees, Increasing the income of small established through Farmer Producer farmers’ groups, SHGs, water user and marginal farmers Organisations (FPO), Self Help Groups groups, sanitation committees and (SHG) and Joint Liability Group (JLG). adolescent groups. We encourage farmers to diversify their income by supporting them Under this intervention, the in allied activities such as livestock Skill Development for Employment activities we engage in are related rearing, horticulture, timber and Generation to agriculture, water, sanitation, fishery, amongst others. Our focus is on skill development health, livelihood and other rural for employment generation and we development work. To achieve this, we are equipping farmers with contemporary and are providing classroom/online/ innovative farming tools and blended skill development training to techniques by organising visits unemployed youth, school dropouts to various agricultural institutes and landless farmers. and fields and providing them Our interventions include training with seeds, fertilisers and other programs which come with necessary support materials. certifications from National Skill Development Corporation (NSDC), Promoting 25,000 Community- Sector Skill Council or other qualified led Enterprises non-government agencies and We encourage economically are aimed at trades that could deprived communities to engage in lead to job placement or self-entrepreneurship on an individual or employment opportunities. cluster basis. OUR TARGETS Increase in Individual Income • Development and sustenance of 20,000 institutions by the • Increase in income of ~5 lakh farmers with an annual income under year 2025 H60,000 across the country by the year 2025 • Local economic activation with • 2 Lakh individuals to be trained/skills upgraded 25,000 community-led enterprises promoted with approximately 50% being women-led Integrated Annual Report 2023-24 17 3 

SO C I A L—C O M M U N I T Y Goat rearing at Mathura, Uttar Pradesh Pathways to Prosperity: Skills for Sustainable Livelihoods Our dedication to fostering Similarly in Ladakh, our project Through these comprehensive empowerment through drives sustainable livelihoods efforts we empower individuals sustainable development is and climate action, providing and communities to embrace exemplified in our initiatives in access to clean energy through sustainable practices while Varanasi, Uttar Pradesh and Solar Grids, establishing carbon- improving their socio-economic the remote regions of Ladakh. neutral homestays and training status, forging a path towards a In Varanasi, our partnership local women on the Pashmina more equitable and resilient future. with Sarthak Educational Trust Value Chain, fostering economic aims to empower Persons with empowerment and sustainability. Disabilities (PWDs) by providing vocational skill-building training and sustainable employment opportunities. 413 200 15 PWDs trained AC Solar Grids installed Carbon-neutral homestays established 290 117 100 PWDs placed in Solar Water Heaters Solar lights installed sustainable jobs installed 174 HDFC Bank Limited 

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Enhancing Employability and Socio-economic Well-being: Social Return On Investment (SROI) Study This year we commissioned an SROI study by a third party, 4th Wheel Social Impact, a research and advisory firm specialising in monitoring and evaluation of social development programs to formulate future course corrective actions and a strategy for scaling up the project. The key objective of this Focussed Development Project was to empower youth through skill training, offering sustainable career prospects for socio-economic advancement. Skill Training Institutes in The Social Return on Investment Skill Training Institutes in Haridwar and Roorkee, (SROI) analysis of the program Bhubaneswar, Odisha Uttarakhand reveals a compelling impact Executed in the state of Odisha, this on the lives of participants and The skill training institutes located in project set its sights on fulfilling the society as a whole. The input the cities of Haridwar and Roorkee burgeoning demand for highly skilled cost of the program amounted in Uttarakhand were established and professionals by concentrating on to H7,35,88,038. However, when operated by the Ambuja Cement the 64 wards under the aegis of the we consider the cumulative Foundation (ACF). These institutes Bhubaneswar Municipal Corporation value of outcomes generated provided skill development and as well as selected villages in the by the program, which totals vocational training opportunities Bhubaneshwar block. H55,85,36,406, the SROI ratio is: to individuals, contributing to their 7.29:1. The SROI analysis showcases a ratio personal and professional growth. The of 5.69:1, signifying that for every H1 Social Return on Investment (SROI) The SROI analysis showcases a invested by HDFC in this project, a study was undertaken to identify and ratio of 7.29:1, signifying that for value of H5.69 of social and financial quantify the impacts and changes every H1 invested by HDFC Bank benefits have been generated. created through the project into in this project, a value of H7.29 of tangible numbers and to identify the social and financial benefits have social value created for each Indian been generated. 5.69:1 rupee (INR) spent. SROI Analysis Ratio 7.29:1 SROI Analysis Ratio Bhubaneshwar Haridwar Training Centre Roorkee Training Centre Training Centre Integrated Annual Report 2023-24 17 5 

SO C I A L—C O M M U N I T Y Healthcare and Hygiene particularly targeting Multi-Layered we are also generating awareness Plastics (MLPs), in collaboration and mobilising communities for safe Our approach to healthcare and with municipal corporations and plastic disposal, emphasising the hygiene is comprehensive and block-level administrations. These importance of responsible waste multi-faceted. We provide essential efforts aim to enhance the socio- management for environmental and healthcare services through initiatives economic conditions of waste pickers public health benefits. like refurbishing health clinics, in alignment with the Plastic Waste Under this thematic area of Healthcare supplying medical equipment, Management Rules, 2018 and Swachh and Hygiene, our objective is to conducting nutrition programs Bharat Mission. enhance the standard of sanitation and health awareness drives. Furthermore, we are institutionalising facilities. Our efforts towards achieving Simultaneously, we actively promote waste pickers in Swachh Centres this objective are directed towards hygiene and sanitation practices in (SCs)/MRFs and ULBs for long- three distinct sub-goals, namely schools and local communities to term solutions, thereby contributing waste management, access to create a conducive environment for to sustainable waste management clean drinking water and creating good health and well-being. practices. Through our initiatives, hygiene awareness. Additionally, Waste Management remains one of our major intervention areas. We have been diligently working towards the goals of the Swachh Bharat initiative, with a particular emphasis on sanitation projects. These projects not only develop necessary infrastructure but also strive to foster behavioural change towards better hygiene and cleanliness practices among individuals and communities. Safai Mitras at the Material Recovery We are focusing on establishing Facility in Bastar, Chhattisgarh dry waste management systems, O U R G O A L S Waste Management Access to Clean Drinking Water We aim to provide the necessary infrastructure, instilling We aim to promote clean drinking water availability at behavioural changes towards responsible consumption, both the community level through Jal-minar or other source segregation and litter prevention. water buildings, and at the family level, through piped Our interventions include setting up material recovery and water connections. recycling facilities in the 15 ULBs, as well as implementing Our interventions will result in making three litres of water village-level interventions such as residential composting, available per person per day. We are also forming and door-to-door garbage collection and related mechanisms orienting water user groups to ensure that the services for user fee collection, compost sales and recycling. are sustainable, with post-project maintenance and water quality testing entrusted to these groups. OUR TARGETS Improve sanitation facilities • Implement solid waste management systems in 1,000 villages and establish Material Recovery Facilities (MRFs) in 15 ULBs • Provide clean drinking water access to 1,000 villages 17 6 HDFC Bank Limited 

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Supply of Medical Equipment to Cancer Hospital In India, the increasing Output Outcome incidence of cancer has underscored the urgent need for robust healthcare 21 15 days interventions. Recognising Medical equipment items Reduction in turnaround the gravity of the situation, we installed time (TAT) for test reports initiated the Supply of Medical from 5-6 weeks Equipment to Cancer Hospital Varanasi Project under our 6 Parivartan program. Hospital departments 2,700 equipped Patients benefitted from the equipment Alignment with SDGs The outcomes are manifested in the enhanced efficiency of hospital operations, improved accuracy, We partnered with CSRBOX to speed of diagnoses and a notable conduct a comprehensive Impact reduction in turnaround time for test Assessment of this project. reports. The increased knowledge and skills of healthcare staff have led to a strengthened hospital capacity and capabilities, resulting in better healthcare service utilisation. Village Health Camp at Sahibganj, Jharkhand Integrated Annual Report 2023-24 17 7 

SO C I A L—C O M M U N I T Y Transforming Communities: Innovative Plastic Management Initiatives In Golaghat District of Assam, our Expanding our footprint across Additionally, in locations like collaboration with Gramin Vikas states like Assam, Bihar and Dharamshala and Bir in the state of Trust resulted in the establishment Telangana, we partnered with Himachal Pradesh, Waste Warriors, of a state of the art Plastic Waste organisations like the Centre for supported by HDFC Bank, tackled Management Unit. This initiative, Environment Education (CEE) to waste management challenges equipped with innovative features implement comprehensive dry through a holistic 3C approach: like wastewater utilisation for fisheries waste management projects. These Collection, Conversion and has not only tackled immediate initiatives, ranging from establishing Community Engagement waste management needs but also Swachh Centres to enhancing laid the foundation for a sustainable the socio-economic conditions future through collaborative efforts of waste pickers highlight the 5,000 tonnes with local administrations and scale of our impact in mitigating Waste diverted educational institutions. environmental degradation. 34 10 tonnes 4,079.65 tonnes Full-time green workers Plastic waste Dry waste collected employed processed daily Knowledge 1,000+ 40+ Partner Clean-up drives organised Individuals employed For the Ministry of Jal Shakti’s Rural WASH 200+ Partners Forum for Individuals benefitted Plastics Safai Mitras segregating waste on Safai Mitras with E-Rickshaws conveyor belt at Material Recovery provided for effective waste Facility in Bastar, Chhattisgarh* collection at Bastar, Chhattisgarh* *Representative image from a Parivartan project 17 8 HDFC Bank Limited 

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Ensuring Access to Clean Drinking Water Access to Clean Drinking Water This FDP project, in alignment Outputs with the Central Government’s flagship initiative, Jal Jeevan 40 Mission (JJM)—‘Har Ghar Nal se Jal’, focused on ‘improving Villages covered in Lucknow and access to safe water among Sitapur Districts of Uttar Pradesh target communities by facilitating the construction of Outcomes water supply services, capacity building of communities to plan and manage their water 22% >97% demand and ultimately ensure Significant increase in daily Households reported water sustainability.’ water consumption before to be clear (no colour), with and after installation of taps no smell and no taste The project was implemented by the Aga Khan Foundation, an NGO which 9% 92% was supported by HDFC Bank. Significant decrease in Households have tap The key goal of the project was to expenditure incurred for connections installed under accomplish the target of delivering treatment of water-borne the FDP as the primary potable water via tap connections. diseases source of drinking water Over 60 per cent of the project beneficiaries were from Sitapur, 78% it was decided to select Sitapur district for the purpose of the Households did not have any tap connection Impact Assessment. prior to tap installation under the FDP As the FDP worked in line with the guidelines envisaged by the JJM, 17 out of 19 Village Water Sanitation Committees (VWSCs) were given training in the key components of the JJM. Jal Minar installation at Mahendragarh, Haryana* *Representative image from a Parivartan project Integrated Annual Report 2023-24 17 9 

SOCIAL - COMMUNITY

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Parivartan Excellence Awards 2023-24 HDFC Bank launched a new award series called the ‘Parivartan Excellence Awards’ to honor the untiring efforts of its CSR Implementation Partners. The first edition of Parivartan Excellence Awards was successfully held on 14th February at ITC Grand Central, Mumbai. A total of 14 NGOs won across four focus areas. These were Education, Skilling, Natural Resource Management and Healthcare & Hygiene. Representatives of the NGOs, senior officials from the Bank and strategic industry partners along with academicians attended the awards night. The evening saw a series of performances and inspiring talks by Winners at the Parivartan Excellence Awards FY24 the Bank’s senior leadership. Parivartan Small Grants Thematic Outreach Beneficiary Outreach Programme HDFC Bank launched Parivartan 19 17.61 lakh+ Small Grants Programme aimed Promotion of Education Total at supporting small-scale projects across India, focussing on Education, Healthcare & Hygiene, Skill Training 11 5.02 lakh+ & Livelihood Enhancement, and Healthcare & Hygiene Direct Environmental Sustainability. Targeting rural, aspirational, tribal and 05 12.58 lakh+ North East regions, the programme Skill Training & Livelihood Indirect supported 38 NGOs, leading to Enhancement substantial social impact. The programme reached 5.02 lakh+ beneficiaries and additionally, 03 12.58 lakh+ indirect beneficiaries. Environmental Sustainability HDFC Bank Parivartan has catalyzed sustainable socio-economic development and positive change in the difficult as well as remote geographies, further leading to enhanced quality of life and well-being of the target populations. Integrated Annual Report 2023-24 18 1 

N AT ION B U I L D I N G Dedicated to the HDFC Bank actively collaborates with various tiers of Government to support its nation-building initiatives. By Nation’s Progress partnering with central, state and local authorities, the Bank aids in the efficient collection of diverse revenue receipts and the disbursement of welfare schemes. Furthermore, HDFC Bank is committed to fuelling the growth of the Start-Up ecosystem and actively participates in the Government’s efforts to foster financial inclusion. Collecting Taxes Tax collections through the Bank To enable collection of taxes, the witnessed a 6 per cent growth as Bank is integrated with various central HDFC Bank is one among the top compared to FY23 and crossed 10 Government systems including TIN 2.0 three Agency Banks, according to lakh crore in FY24. (Direct Tax), GSTN, ICEGATE (Custom data reported by the Press Information Duties) and FOIS. Further, HDFC Bank Bureau and Controller General of The Bank’s leading position in the is also integrated with the upgraded Accounts, Government of India. An collection of taxes demonstrates its version of the ICEGATE platform for area where the Bank has significantly large customer base, wide distribution custom duty collections. stepped–up collections for the and strong commitment to leveraging exchequer is e-freight services. its strengths to contribute to the overall Collections grew by 25 times as development of the nation. compared to the previous year. 18 2 HDFC Bank Limited 

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Further the Bank has completed Digitalising Local Gram Panchayats play a crucial integration with the PRAKALP Portal Administration role in the development of the rural (Pratyaksh Kar Lekhankan Pranali), a HDFC Bank has continued to drive regions as they implement various system introduced by the Ministry of digitalisation of local administration centrally sponsored schemes. Finance for reporting of direct taxes by enabling tax collections for local The Bank has on-boarded 4,500 collected by banks. This is key for bodies and Gram Panchayats. plus Gram Panchayats for smooth the Government since the PRAKALP implementation of the Rashtriya Gram portal helps it optimise utilisation of the The Bank has aligned to the Swaraj Abhiyan (RGSA) Scheme and collected funds and therefore minimise Government’s Smart City Mission by collection of taxes through QR and its borrowings. integrating with Smart City Mobile PoS solutions. The Bank has also integrated with Apps. This has accelerated local eSampark centres in Chandigarh tax collections by delivering 24x7 which enables collection of tax availability of payment channels to through multiple modes across its citizens. 47 centres. Enabling Infrastructure Development The Government of India is focused on building infrastructure to fuel growth. The Bank works closely with Government agencies that drive such development efforts. It enables these Government entities to centrally monitor such projects for timely completion and disbursement of payments linked to delivery milestones. This has helped reduce delays and minimise cost overruns. Digitalise Land Streamline Online Collection Integration with Acquisition Finances of Lease Rentals the Government’s Auction Platform Availability of land The Bank has also To increase the The Bank’s collection is a key prerequisite helped in the digital efficiency of revenue channels like payment for infrastructure transformation of the collection from services gateways have been development. The Bank Dedicated Freight linked to national integrated with the has helped digitalise Corridor Corporation of highways like food- Government’s auction land acquisition as well India. It has helped the courts and petrol- platform to help as the compensation entity to streamline its pumps, the Bank has monetise its assets. process for those finances and simplify worked with National Assets worth over affected by the project. payments to vendors. Highways Logistics H20,000 crores were Management Limited (a auctioned last year. wholly owned subsidiary of National Highways Authority of India) to facilitate online collection of lease rentals from such service providers. Integrated Annual Report 2023-24 18 3 

NATION BUILDING

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Supporting the provided an interface to Farmer Agricultural Economy Producer Organisations (FPOs) and The Bank has played an important co-operative societies to trade in role in supporting the implementation agricultural produce. The integrated of agri-based central and state banking channels allow faster schemes. This is done by way of realisation of sales proceeds. timely disbursement of funds basis The Bank has integrated with an the integration done with various accounting platform specially built for Government procurement platforms. Arthiyas (agricultural traders) which Keeping in line with Government’s enables them to process payments focus on strengthening the supply to vendors, service providers side of the market, HDFC Bank has and farmers. Leveraging Government Partnerships to Fuel Entrepreneurship HDFC Bank is a trusted partner to the larger Start-Up ecosystem and has also emerged as the preferred banker to unicorns. The Bank provides a range of solutions to over 37,000 Start-Ups under its revamped flagship programme Start-Up | BuildUp which offers the following benefits: A Credit Guarantee Specialised group Value-added services Commercial cards Scheme for Start-Ups, health insurance cover such as provision of for both personal and borrowing opportunities designed for Start-Ups legal handbooks and professional expenses from the Bank for those with a minimum of compliance calendars of founders, backed by meeting specific criteria. 7 employees. for customers to help Fixed Deposits. Start-Ups be compliant. Partnerships with Government-backed In addition to this, the Bank has Leveraging the HDFC Bank incubators has enabled the Bank to worked closely with the State CSR Initiative deliver a strong performance in what Government nodal agencies HDFC Bank Parivartan grants were was a challenging year for the Indian supporting Start-Ups like Kerala given to 41 Incubators and 170 Start-Up ecosystem. The Bank has Startup Mission, Karnataka Innovation Start-Ups. These were executed in forged partnerships with incubators and Technology Society, Department partnership with Start-Up India, an associated with The Department of of MSME – Government of Madhya initiative of DPIIT. Additionally, the Science and Technology, Department Pradesh, Uttar Pradesh Electronics Bank also engaged with five nodal of Biotechnology and NITI Aayog (Atal Corporation under Department of Government partners viz. Reserve Innovation Mission) viz. AIC Jawaharlal IT & Electronics—Government of Bank Innovation Hub, National Skill National University, AIC Anna Uttar Pradesh. Development Corporation, Ministry University, AIC Guru Gobind Singh of Food Processing Industries, Goa Indraprastha University, IIM Kozhikode, HDFC Bank is also amongst the early Startup Mission and Niti Aayog (Atal IIT Guwahati amongst others in the movers in rolling out the Government’s Innovation Mission) to provide grants past year. Credit Guarantee Scheme for to various Start-Ups focused on social Start-Ups (CGSS) catering to the causes and other areas of innovation borrowing requirements of Start-Ups like food innovation with focus registered with the Department for on millets. Promotion of Industry and Internal Trade (DPIIT). Integrated Annual Report 2023-24 18 5 

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business C O N N E CTI N G T H E C A P I TA L S Financial Statements Committed to Holistic Value Creation Finance Connecting the Capitals The Bank’s objective is to ingrain integrated thinking into every aspect of business operations. We endeavour to strategise holistically, ensuring Manufactured The Bank is making consistent that our approach to resource allocation and overall business practices investments in expanding its reach including in deep-geographic locations. delivers value across all our capitals. As we move forward, we carefully This is expected to realise long- consider the interplay of our financial, human, intellectual, social and term returns in tandem with deposit environmental capitals. This integrated approach allows us to chart a mobilisation trends as well increased cross-sell opportunities. In the current path of progress that benefits all our stakeholders driving sustainable year, we opened 925 branches, of which growth and fostering long-term success. over 52 per cent were in SURU regions. Intellectual We continue to focus on harnessing The Bank is continuously enhancing technology through investments in its core banking infrastructure to innovative digital solutions and building a improve agility and scalability enabling robust back-end infrastructure. Average swift adaptation to market demands. customer uptime increased to 99.96 per Additionally, we also embrace cent (v/s 99.95 per cent in FY23). omnichannel banking offering diverse options from branches to digital platforms. Human The Bank prioritises talent acquisition, Committed to providing employees with In the current year, the Bank transitioned employee wellbeing, recognitions, and a healthy, safe workplace, we ensure to the new Learning Management learning initiatives to ensure collective regular updates to our safety policies and System (LMS), facilitating an efficient progress and excellence. processes. We conduct routine training learning experience for all employees. sessions to keep our staff informed and Additionally, for the first time, we prepared and we implement the latest leveraged a technology platform for talent safety technologies to protect our team. management, streamlining our approach to nurturing and retaining top talent. Social and The Bank is committed to creating value The Bank’s extensive distribution network In FY24, the Bank has launched various HDFC Bank has a culture ecosystem Relationship for all its stakeholders. Under the ambit enables us to reach the underserved digital initiatives to enhance customer focusing on Nurture, Care & Collaborate of Parivartan, we aim to create a lasting markets and contribute to nation experience. (NCC) ensuring every employee is impact for the communities that we serve. building. We also leverage our network to For MSMEs, it introduced BizXpress, a equipped to succeed. In addition, we also In FY24 we spent H945.31 crore on CSR strengthen our CSR reach. Many of our one-stop solution for all banking needs. enable our employees to contribute to Initiatives branches also facilitate financial literacy Additionally, as on March 2024, 16.5 lakh the community through our volunteering programmes to increase awareness. merchants were active on SmartHub programs. Vyapar App. Natural The ESG Strategy and the Sustainability The Bank has a keen focus on The Bank leverages digital systems and At HDFC Bank, we believe that employee The Bank, under its rural development Financing Framework drive climate action sustainability, incorporating renewable data analytics to gain valuable insight volunteering is an opportunity to initiative aims to support 25 per cent within the Bank. We remain committed energy into its day-to-day business. We into energy consumption patterns, strengthen the very fabric of society, of households in each village with solar to responsible financing practices. In have transitioned 12 of our branches aiding in the reduction of emissions and cultivate a sense of community, enhance lights, biomass stoves, biogas plants, addition, we are also investing in initiatives to green power. Furthermore, till March optimising energy usage. Furthermore, team cohesion and give back to society solar study lamps and irrigation units. to reduce our operational footprint 2024 we have commissioned 24 rooftop digital products and services combined in meaningful ways. More than 4,000 In addition to this, we have also towards the strategic commitment to solar installations with a total capacity of with automation, have enabled the Bank hours were dedicated to volunteering this surpassed our tree plantation target, achieve carbon neutrality by FY32. approximately 720 kWp. to effectively decrease paper waste year including programmes related to reaching 38 lakh trees exceeding our generation. plantation, sustainable food production. FY25 goal of 25 lakh. Finance Manufactured Intellectual Human Social and Relationship Natural 18 6 HDFC Bank Limited Integrated Annual Report 2023-24 18 7 

G O V E R N A N C E Driving The integration of HDFC Limited’s well known and respected home loan brand with HDFC Bank’s established reputation, wide Responsibility network, large customer base, and execution prowess, has further strengthened our positioning as a leading financial conglomerate and Trust in the Indian financial landscape. With an enhanced capacity to facilitate larger ticket loans, including those vital for infrastructure projects, our commitment to contributing to nation-building initiatives and fostering employment opportunities remains unwavering. Amidst this expanded role, we place greater emphasis on governance, viewing it as paramount to sustaining trust and credibility. Through stringent adherence to ethical principles, transparency in operations, and robust risk management frameworks, we ensure the integrity of our actions as we continue to serve as a cornerstone of India’s economic development At the helm, our Board of Directors, our operations, regulatory compliance, comprehensive whistle-blower policy. comprising diverse and seasoned information technology, and other Through the concerted efforts of our members, stands as the vanguard of vital areas. We are unwavering in our Board and Committees, we ensure governance. In collaboration with its commitment to the highest corporate transparency, accountability, and Committees, the Board establishes governance standards, which include integrity, thereby enabling sustainable policies and frameworks governing aligning executive compensation with growth and value creation. performance and implementing a 18 8 HDFC Bank Limited 

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements GOVERNANCE FRAMEWORK Shareholders Regulators Board of Directors Stakeholders’ Nomination and Risk policy and Audit and CSR & ESG Remuneration monitoring Committee Relationship Committee Committee Committee Committee External & Managing Internal auditors Director Executive Director Audit Committee Stakeholders’ and Relationship Committee Capitals Impacted: F SR Capitals Impacted: F H SR Relevant Stakeholders: Relevant Stakeholders: Responsible for overseeing the company’s financial Responsible for maintaining relationships with various reporting and internal controls and ensuring compliance stakeholders and overseeing the existing redressal with laws and regulations as applicable to the Bank. mechanism in relation to stakeholders of the Bank. Protecting Value in FY24 Protecting Value in FY24 • Established and maintained robust processes, • Approved/ ratified allotment of shares to the implementing best practices for internal employees of the Bank on exercise of stock options control mechanisms granted under the various Employees Stock • Collaborated regularly with auditors, experts, Option Schemes. and management to perform its duties and • Monitored and ensured that grievances/complaints of responsibilities efficiently. investors are resolved in an timely manner. • Exercised diligent oversight on critical regulatory • Ensured that required measures are taken for submissions and reports. effective exercise of voting rights by shareholders 100% 40% Independence Composition Independence Composition Integrated Annual Report 2023-24 189 

G O V E RN A NC E Nomination and Remuneration Committee Risk Policy and Monitoring Committee Capitals Impacted: H Capitals Impacted: F Relevant Stakeholders: Relevant Stakeholders: Responsible in identifying persons qualified to become Supervising the implementation of the risk strategy directors and who may be appointed in senior and developing policies, framework, procedures and management along with specifying manner for effective systems for managing risk and ensuring that these evaluation of performance of the Board, its Committees are adequate and appropriate to changing business and individual directors conditions, structure and risk appetite of the Bank. Protecting Value in FY24 Protecting Value in FY24 • Specified the manner for effective evaluation of • Administered the implementation of the Bank’s performance of individual directors including risk strategy. independent directors, the Board and • Exercised diligent oversight on risk management its Committees. and measurement models, including back-testing • Facilitated and recommended enhancements to the and benchmarking, to maintain a robust risk Board’s composition. management framework. • Implemented new stock-based incentives, including • Reviewed the cyber security framework in Bank and Restricted Stock Units. evaluated the probable risks associated with cyber security and ensure that appropriate measures 100% and procedures have been put in place to mitigate the same. Independence Composition 66.67% Independence Composition CSR & ESG Committee Capitals Impacted: F SR N H Relevant Stakeholders: Responsible for identifying, executing and monitoring • Established a transparent monitoring mechanism CSR projects and assist the Board and the Bank in for ensuring effective implementation of the CSR ensuring legal and regulatory compliance with respect activities / projects. to its corporate social responsibility and reporting and • Reviewed the Bank’s ESG disclosure including the communication to stakeholders on the Bank CSR & Sustainability Report highlighting the Bank’s ESG ESG initiatives. performance and prioritisation of material topics. Protecting Value in FY24 • Monitored the implementation of the Bank’s CSR 33.33% activities and ESG framework to ensure compliance Independence Composition to applicable regulatory requirements. For details pertaining to other Board level Committees, please refer to our Corporate Governance Report. 19 0 HDFC Bank Limited 

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Board Diversity by Gender while complying with regulatory Ethics in conducting our business. We requirements through timely have also put in place a transparent FY24 9 disclosures. Our commitment to fair Grievance Redressal Mechanism 3 practices is evident in meticulously wherein customers can get a swift crafted policies, including our Share and effective resolution of any issues FY23 7 Dealing Code and Code of Practices they may encounter. For details on 3 and Procedures for Fair Disclosures. customer complaints and grievance Further, our Policy for Director redressed please refer to Annexure Male    Female Appointment and Fit and Proper 7 of Directors Report. We maintain Criteria, outlines a comprehensive a ‘Zero Tolerance’ stance against Culture of Transparency process for director appointment/ sexual harassment, supported by re-appointment and criteria for an internal committee dedicated to and Accountability identification of persons who are addressing such issues. For further At HDFC Bank, transparency and qualified as ‘fit and proper’ to become details, please refer to the section on accountability are fundamental to Directors on the Board. Additionally, POSH complaints in our Corporate our organisational ethos, guiding our Whistleblower Policy and Code Governance report. every aspect of our operations. of Ethics/ Conduct Compensation We adhere to global governance Policy underscore our commitment standards, ensuring clear and to integrity and ethical practices, equitable presentation of information integral to HDFC Bank’s culture. We are also guided by our Code of Integrated Annual Report 2023-24 19 1 

G O V E RN A NC E Board Expertise and Competence BOARDS SKILL Our Board boasts a wide range of proficiencies among our members. enhance our governance processes. skills and expertise like accountancy, From financial acumen to industry This collective expertise ensures business management, banking, knowledge, our Board’s composition strategic oversight and drives payment and risk management etc. reflects a dedication to effective our unwavering commitment to We prioritise independence and decision-making and accountability. governance excellence. inclusion, ensuring a comprehensive Additionally, we actively solicit input blend of backgrounds and from external experts to continually A M B 8 L 7 C 7 1 1 K 12 D 6 1 Esteemed 1 Board of Directors 1 5 J 2 E 3 5 I F H G A. Business Management H. Law B. Finance I. Information Technology C. Risk Management J. Small Scale Industry D. Accountancy K. Co-operation E. Economics L. Human Resource F. Banking M. Agriculture and Rural Economy G. Payment and Settlement Systems For detailed insights into the skills and competence of our Board, please refer to our Corporate Governance Report. 19 2 HDFC Bank Limited 

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Our Policies and Frameworks In our commitment to fostering an ethical culture within the bank, we’ve meticulously crafted a comprehensive suite of policies and frameworks. We prioritise adherence to these guidelines, ensuring that they serve as the cornerstone of our operations and decision-making processes. OUR SUITE OF POLICIES AND FRAMEWORK Code of Conduct & Ethics Manual Diversity, Equity, Whistleblower Inclusion (DEI) Policy Policy Human rights ESG Policy Statement Anti-corruption, Anti-bribery, and Anti-money Laundering (AML) Code of Conduct & Ethics prohibits any involvement in child, Whistleblower Policy Manual forced, or compulsory labor within Our Whistleblower Policy offers a our operations and successfully Code of Conduct and Ethics manual thorough framework for receiving and addresses issues related to verbal of the bank guides all the employees resolving complaints or grievances abuse of employees and Sexual including senior management from stakeholders. These complaints abuse or Harassment. During the year, about upholding the values and addressed various concerns, there were no breaches pertaining to conducting business with ethical including instances of corruption, conflict of interest policy of the Bank. standards. Central to this commitment improper business practices, and is our adherence to our Code of Breaches related to Harassment behavioral issues. Conduct, which unequivocally in FY24—77 cases of Sexual Harassment were reported. Integrated Annual Report 2023-24 19 3 

G O V E RN A NC E In the fiscal year 2024, we handled a Anti-corruption, Anti-bribery, This policy provides a structured total of 156 whistleblower complaints and Anti-money Laundering approach to addressing and from diverse stakeholders, such as (AML) managing environmental risks, shareholders, employees, customers, impacts, and opportunities within Demonstrating our commitment and value chain partners. our operations. Since officially to combat corruption, bribery, and recognising sustainability as our money laundering, we’ve implemented Human Rights Statement Policy fifth core value in FY 2014-15, it focused initiatives covering critical has become an integral part of our HDFC Bank places great importance domains such as Prevention of corporate identity. Our Environmental, on upholding the principles of human Corruption Act, Code of Conduct & Social, and Governance (ESG) rights as outlined in the Universal Ethics Policy, Trade-based Money practices are closely aligned with our Declaration of Human Rights by Laundering, and Know Your Customer strategic objectives, showcasing our the United Nations. Our Human (KYC) and Anti-Money Laundering increased emphasis and investment in Rights statement policy underscores (AML) regulations. Under these this domain. our unwavering commitment to initiatives, we provide comprehensive conducting business with ethical training to our employees on anti- Diversity, Equity, Inclusion (DEI) integrity and advocacy for human corruption, anti-bribery, and anti- Policy rights. We are committed to money laundering practices. implementing robust policies and The Bank is firmly committed No of Employees Trained on Anti- processes aimed at safeguarding to fostering an Inclusive work Corruption, AML and KYC Trainings In and advancing the fundamental environment where diversity is FY24 : 199,396 human rights in all our dealings with celebrated, and equity is prioritised. our stakeholders. Our model code We believe it is fundamental to our ESG Policy of conduct upholds fundamental continued progress and integral principles of human rights. In 2019, we introduced a board- to who we are as an organisation. governed environmental policy, Inclusion stands as a cornerstone of Total Number of hours on Human emphasising our dedication to our culture framework The ‘HDFC Rights training is 142,185. environmental responsibility. Bank Way.’ We are dedicated to the pursuit of ensuring every individual feels valued and respected. Apart from the above, we also have tax policy and information security / cyber security policy. For accessing other policies please refer to https://www.hdfcbank.com/personal/about-us/corporate-governance/codes-and-policies. 19 4 HDFC Bank Limited 

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements ESG Governance established a robust governance by HDFC Bank in India. While initially structure to ensure alignment tailored to our operations within the At HDFC Bank, our dedication to between our ESG approach and country, this framework lays the environmental, social, and governance strategic objectives. foundation for potential expansion to (ESG) principles is deeply ingrained ESG is a key focus area for us, driving subsidiaries and offshore offices. With in our organisational ethos. We a fundamental shift in our business annual reviews and updates ratified by recognise the pivotal role of ESG in outlook. Our ESG policy framework both our ESG and CSR Committees, shaping not only our operations but serves as the cornerstone guiding all we ensure continual refinement and also the experiences we deliver to initiatives and activities undertaken effectiveness in fostering sustainable all stakeholders. As such, we have practices and outcomes. ESG GOVERNANCE FRAMEWORK Board of Directors Guided by CSR and ESG Committee ESG Apex Council Oversee Bank’s Responsible for overseeing sustainability sustainability and climate initiatives, reporting, climate change change initiatives. disclosure and internal projects aimed at reducing Bank’s Overall emissions ESG Working Groups Product Environment Social and Responsibility Governance Oversees the Bank’s Evaluates ESG environmental impact Focuses on risks, including from its operations workplace policies climate risks, in the and governance existing portfolio and initiatives. identifies ESG-linked opportunities. Structure ensures that ESG matters are consistently addressed and integrated into the Bank’s operations. Integrated Annual Report 2023-24 19 5 

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business B O A RD O F D I R E C T O R S Financial Statements AC NRC NRC SRC PC RCWDI NRC RPMC SRC ISC SRC RCNCB RPMC ITSC RPMC CSR & ESG RPMC RCWDI CSC RPMC FMC RCNCB CAC FMC CSC ITSC PC CAC ITSC ISC RCWDI RCNCB ISC Mr. Atanu Chakraborty Mr. M. D. Ranganath Mr. Sandeep Parekh Mr. Keki Mistry Mrs. Renu Karnad Mr. Sashidhar Jagdishan Part-time Chairman and Independent Director Independent Director Non-Executive Non-Executive Managing Director & Independent Director (Non-Independent) Director (Non-Independent) Director Chief Executive Officer CSR & ESG RPMC FMC SRC ATC CSC ATC AC CSR & ESG PC AC NRC FMC ITSC SRC CSC FMC CAC RCWDI RCNCB Dr. (Mrs.) Sunita Maheshwari Mrs. Lily Vadera Dr. (Mr.) Harsh Kumar Bhanwala Mr. Kaizad Bharucha Mr. Bhavesh Zaveri Mr. V. Srinivasa Rangan Independent Director Independent Director Independent Director Deputy Managing Director Executive Director Executive Director AC Audit Committee CSR & ESG CSR & ESG Committee CSC Customer Service Committee RCWDI Review Committee for Wilful Defaulter’s Identification NRC Nomination and Remuneration Committee CAC Credit Approval Committee PC Premises Committee RCNCB Review Committee for Non-Cooperative Borrowers SRC Stakeholders’ Relationship Committee ITSC IT Strategy Committee ISC Investments Strategy Committee Chairperson RPMC Risk Policy and Monitoring Committee FMC Fraud Monitoring Committee ATC Allotment and Transfer Committee Member For more details about the Board, please refer to our Corporate Governance Report Length of service of Directors on the Age group of Directors (Years) % of Independent Directors on Women Directors Board of HDFC Bank (Years) the Board of the Bank on the Board <3 51 to 60 50 3 3-8 61 to 70 >8 > 70 19 6 HDFC Bank Limited Integrated Annual Report 2023-24 19 7 

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business L E A DE R S H IP T E A M Financial Statements 1 11 22 Abhijit Singh Nirav Shah Sashidhar Jagdishan Group Head-BaaS,Digital Ecosystem and Group Head—Corporate Banking Managing Director International Banking 12 23 2 Parag Rao Smita Bhagat 1 2 3 4 5 Anjani Rathor Group Head—Payments, Liability Products, Group Head-Retail Branch Banking-1 Chief Digital Officer Consumer Finance & Marketing 24 3 13 Srinivasan Vaidyanathan Arup Rakshit Prashant Mehra Chief Financial Officer Group Head—Treasury Group Head—Collections, 25 Credit Intelligence and Control, 4 Debt Management Sudhir Jha Arvind Vohra Group Head—Legal & Secretarial 14 Group Head—Retail Assets 6 7 8 9 10 Rahul Shukla 26 5 Group Head-Commercial and Suketu Kapadia1 Ashima Bhat Rural Banking Group Head—Internal Audit Group Head—Virtual managed 15 27 channels,Virtual Care,Virtual Sales, NR- Rakesh Rajput Sumant Rampal2 Virtual RM’s,Business Enhancement Unit, Channel Enablement Group Chief Compliance Officer Group Head—Business Banking Working & Infrastructure Capital, Rural Banking Group and SLI 16 6 Rakesh Singh 28 11 12 13 14 15 Ashish Parthasarthy Group Head –Investment Banking, Private Sundaresan M Group Head—Branch Banking, Banking Group, Offshore International Group Head—Retail Credit Strategy and Infrastructure, Treasury & Virtual Channels Banking, Thematic Research, Digital Control, INF Credit, Credit Analytics and ecosystem banking, BaaS Innovation & Credit Bureau Management 7 17 29 Benjamin Frank Ramesh Lakshminarayanan V. Chakrapani3 Group Head-Wholesale Credit-CB Chief Information Officer Group Head-Internal Audit & QIG 16 17 18 19 20 8 18 30 Bhavesh Zaveri Executive Director – Operations, ATM, Raveesh Bhatia V. Srinivasa Rangan and Administration Group Head-Emerging Corporates Group Executive Director – Legal and Secretarial, and Health Care Finance Fraud & Vigilance, Ethics Office, 9 19 Information Security Group, Group Jimmy Tata Oversight Department Chief Credit Officer Ravi Santhanam 31 Chief Marketing Officer , Head—Direct to 10 Consumer Business Vinay Razdan 21 22 23 24 25 Kaizad Bharucha Chief Human Resources Officer 20 Deputy Managing Director – (Corporate Sampath Kumar 32 Banking, PSUs, Capital & Commodities Markets, Realty Business Finance, Group Head-Retail Branch Banking-2 Vinayak Mavinkurve Inclusive Banking Initiatives Group, Group Head – Realty Business Finance 21 Corporate Social Responsibility and Environmental Social Governance and Sanmoy Chakrabarti Designated Director for AML, Oversight & Chief Risk Officer 26 27 28 29 30 monitoring Internal Ombudsman) 1Mr. Suketu Kapadia was appointed as Group Head Internal Audit with effect from April 1, 2024 2Mr. Sumant Rampal ceased to be Group Head—Business Banking Working Capital, Rural Banking Group and SLI with effect from closure of the business hours as on 31st March 2024. He was appointed as Group Head – Mortgage business (Home loan, LAP and HDFC Sales) with effect from April 1, 2024. 3Mr. V. Chakrapani ceased to be a Group Head –Internal Audit and Quality Initiative Group with effect from closure of the business hours on as on 31st March 2024. Subsequently, he was appointed as Group Head Change Agent with effect from April 1, 2024. Mr. Arvind Kapil ceased to be Group Head – Mortgage business (Home loan, LAP and HDFC Sales) with effect from closure of the business hours 31 32 as on April 26, 2024 Mr. Tushar Vikram ceased to be Group Head – Investment Banking with effect from closure of the business hours as on May 10, 2024 19 8 HDFC Bank Limited Integrated Annual Report 2023-24 19 9 

Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Statutory Reports and 1 0 Y E A R F I N A N C I A L H I G H L I G H T S    Financial Statements Unparalleled Progress    H Crore 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Interest income 48,469.91 60,221.45 69,305.96 80,241.35 98,972.05 1,14,812.65 1,20,858.23 1,27,753.12 1,61,585.54 2,58,340.58 Interest expense 26,074.23 32,629.93 36,166.74 40,146.49 50,728.83 58,626.40 55,978.66 55,743.53 74,743.32 1,49,808.10 Net interest income 22,395.68 27,591.52 33,139.22 40,094.86 48,243.22 56,186.25 64,879.57 72,009.59 86,842.22 1,08,532.48 Other income 8,996.34 10,751.72 12,296.49 15,220.31 17,625.87 23,260.82 25,204.89 29,509.90 31,214.83 49,241.00 Net revenues 31,392.02 38,343.24 45,435.71 55,315.17 65,869.09 79,447.07 90,084.46 1,01,519.49 1,18,057.05 1,57,773.48 Operating costs 13,987.55 16,979.69 19,703.32 22,690.36 26,119.37 30,697.53 32,722.63 37,442.19 47,652.08 63,386.02 Operating result 17,404.47 21,363.55 25,732.39 32,624.81 39,749.72 48,749.54 57,361.83 64,077.30 70,404.97 94,387.46 Provisions and contingencies 2,075.75 2,725.61 3,593.30 5,927.49 7,550.08 12,142.39 15,702.85 15,061.83 11,919.66 23,492.15 Loan loss provisions 1,723.58 2,133.63 3,145.30 4,910.43 6,394.11 9,083.32 11,450.19 10,119.38 11,783.25 10,764.66 Others 352.17 591.98 448.00 1,017.06 1,155.97 3,059.07 4,252.66 4,942.45 136.41 12,727.49 Profit before tax 15,328.72 18,637.94 22,139.09 26,697.32 32,199.64 36,607.15 41,658.98 49,015.47 58,485.31 70,895.31 Provision for taxation 5,112.80 6,341.71 7,589.43 9,210.57 11,121.50 10,349.84 10,542.46 12,054.12 14,376.60 10,083.03 Profit after tax 10,215.92 12,296.23 14,549.66 17,486.75 21,078.14 26,257.31 31,116.52 36,961.35 44,108.71 60,812.28 Funds :    Deposits 4,50,795.65 5,46,424.19 6,43,639.66 7,88,770.64 9,23,140.93 11,47,502.29 13,35,060.22 15,59,217.44 18,83,394.65 23,79,786.28 Subordinated debt 16,254.90 15,090.45 13,182.00 21,107.00 18,232.00 18,232.00 17,127.00 21,795.25 33,956.00 34,079.50 Stockholders’ equity 62,009.42 72,677.77 89,462.38 1,06,295.03 1,49,206.32 1,70,986.03 2,03,720.83 2,40,092.94 2,80,199.01 4,40,245.81 Working funds 5,95,695.13 7,40,796.07 8,63,840.19 10,63,934.32 12,44,540.69 15,30,511.26 17,46,870.52 20,68,535.05 24,66,081.47 36,17,623.09 Loans 3,65,495.04 4,64,593.96 5,54,568.20 6,58,333.09 8,19,401.22 9,93,702.88 11,32,836.63 13,68,820.93 16,00,585.90 24,84,861.52 Investments 1,56,833.82 1,95,836.29 2,14,463.34 2,42,200.24 2,93,116.07 3,91,826.66 4,43,728.29 4,55,535.69 5,17,001.43 7,02,414.96 Key Ratios :    Earnings per share (H)1 21.08 24.42 28.59 33.88 39.33 48.01 56.58 66.80 79.25 85.83 Return on equity 20.36% 17.97% 18.04% 18.22% 16.30% 16.76% 16.60% 16.90% 17.39% 16.10% Tier 1 capital ratio 13.66% 13.22% 12.79% 13.25% 15.78% 17.23% 17.56% 17.87% 17.13% 16.79% Total capital ratio 16.79% 15.53% 14.55% 14.82% 17.11% 18.52% 18.79% 18.90% 19.26% 18.80% Dividend per share (H)1 4.00 4.75 5.50 6.50 7.50 Nil3 6.504 15.50 19.00 19.505 Dividend payout ratio 23.62% 23.51% 23.32% 23.26% 23.36% NA3 11.54%4 23.28% 24.07% 24.38%5 Book value per share as at March 31 (H)1 123.70 143.74 174.56 204.80 273.94 311.83 369.54 432.95 502.17 579.51 Market price per share as at March 31 (H)2 511.35 535.58 721.28 964.50 1,159.45 861.90 1,493.65 1,470.35 1,609.55 1,447.90 Price to earnings ratio 24.26 21.93 25.23 28.47 29.48 17.95 26.40 22.01 20.31 16.87 H 1 Crore = H 10 Million    The figures for the year ended March 31, 2024 include the operations of erstwhile HDFC Ltd which amalgamated with and into HDFC Bank on July    01, 2023 and hence the comparisons with the previous periods have to be looked at in light of the same    1 Figures for the years prior to 2019-2020 have been adjusted to reflect the effect of split of equity shares from nominal value of H 2 each into two    equity shares of nominal value of H 1 each    2 Source : NSE (prices for years prior to 2019-2020 have been divided by two to reflect the sub-division of shares)    3 Basis RBI notifications dated April 17, 2020 and December 4, 2020    4 Basis RBI notification dated April 22, 2021    5 Proposed    2 0 0 HDFC Bank Limited    Integrated Annual Report 2023-24 2 01 

AW A R D S Celebrating Excellence The Economic Times The Asian Banker Leadership Awards for Corporate Achievement Awards 2024 Excellence 2023 Mr. Sashidhar Jagdishan— Conscious Corporate of the Year CEO of the Year in Asia Pacific Asiamoney Best Bank The Global Private Awards 2023 Banking Awards 2023 Best Private Bank for Education and India’s Best Domestic Training of Private Bankers (Asia) Corporate Bank Best Private Bank for Growth India’s Best Bank for SMEs Strategy (Asia) Indian Banks Association’s Great Place (IBA) Annual Banking To Work Institute Technology Awards 2023 Certified as ‘Great Place To Work’ for FY 2023-24 Best Digital Engagement (Private Sector Bank) BT-KPMG Financial Express Best Best Banks Awards Banks Awards 2023 Best Bank of the Year (Joint Winner) Best Private Sector Bank Best Large Indian Bank Business Today – Taggd World Food India 2023 Survey—Best Companies To Outstanding Performer in the Work For In India Category of Private Sector Bank HDFC Bank Ranked in Top 10 under PMFME Scheme 202 HDFC Bank Limited

Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Statutory Reports and Financial Statements ASSURANCE STATEMENT Price Waterhouse LLP Chartered Accountants Independent Practitioner’s Limited Assurance Report on Identified Sustainability Information in HDFC Bank Limited’s Integrated Annual Report To the Board of Directors of HDFC Bank Limited We have undertaken to perform a limited assurance engagement for HDFC Bank Limited (the “Bank”) vide our Engagement Letter dated March 15, 2024 read with amendment thereto dated June 28, 2024 in respect of the agreed Sustainability Information referred in “Identified Sustainability Information” paragraph below (the “Identified Sustainability Information’) in accordance with the Criteria stated in the “Criteria” paragraph below. The Identified Sustainability Information is included in the “GRI Content Index” section in the Integrated Annual Report (the “Integrated Annual Report”) of the Bank for the financial year ended March 31, 2024. This engagement was conducted by a team comprising assurance practitioners and environment experts. Identified Sustainability Information The Identified Sustainability Information for the financial year ended March 31, 2024 is summarised in Appendix 1 to this report. Our limited assurance engagement was with respect to the financial year ended March 31, 2024 information only and we have not performed any procedures with respect to prior periods or any other elements included in the Integrated Annual Report and, therefore, do not express any conclusion thereon. Criteria The criteria used by the Bank to prepare the Identified Sustainability Information for inclusion in the Integrated Annual Report is the Global Reporting Initiatives Standards (“GRI Standards”) 2021 as set out under Appendix 1 to this report (the ‘‘Criteria”). Management’s Responsibilities The Bank’s Management is responsible for selecting or establishing suitable criteria for preparing the Identified Sustainability Information, taking into account applicable laws and regulations, related to reporting on the Identified Sustainability Information, identification of key aspects, engagement with stakeholders, and content, preparation and presentation of the Identified Sustainability Information in accordance with the Criteria. This responsibility includes the design, implementation, and maintenance of internal control relevant to the preparation of the Integrated Annual Report, and measurement of Identified Sustainability Information, which are free from material misstatement, whether due to fraud or error. Price Waterhouse LLP, Building No. 8, 8th floor, Tower – B, DLF Cyber City, Gurugram – 122002T: +91 (124) 4620000, F: +91 (124) 4620620 Registered office and Head office: Plot No. 56 & 57 Block DN, Sector V Salt Lake Kolkata—700091 Price Waterhouse (a Partnership Firm) converted into Price Waterhouse LLP (a Limited Liability Partnership with LLP identity no: LLPIN AAS-3673 with effect from April 22, 2023. Post its conversion to Price Waterhouse LLP, its ICAI registered number is IFRN 301112E/E300264 (ICAI registration number before conversion was 3011112E) Integrated Annual Report 2023-24 203

ASSURANCE STATEMENT Price Waterhouse LLP Chartered Accountants Inherent limitations in preparing the Identified Sustainability Information The absence of a significant body of established practice on which to draw to evaluate and measure nonfinancial information allows for different, but acceptable, measures and measurement techniques and car. affect comparability between entities. In addition, Greenhouse Gas (‘`GHG”) quantification is subject to inherent uncertainty because of incomplete scientific knowledge used to determine emissions factors and the values needed to combine emissions of different gases. Our Independence and Quality Control We have maintained our independence and confirm that we have met the requirements of the Code of Ethics issued by the Institute of Chartered Accountants of India ( “ICAI”) and the International Code of Ethics for-Professional Accountants (including International Independence Standards) (“IESBA Code”) issued by the International Ethics Standard Board for Accountants, which is founded on the fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour. Price Waterhouse LLP (the “Firm”) applies Standard on Quality Control i “Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements”, the International Standard on Quality Management (“ISQM”) t “Quality Management for Firms that perform Audits or Reviews of Financials Statements, or Other Assurance or Related Services Engagements” and ISQM 2 “Engagement Quality reviews” and accordingly maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards, and applicable legal and regulatory requirements. Practitioner’s Responsibilities Our responsibility is to express a limited assurance conclusion on the Identified Sustainability Information based on the procedures we have performed and evidence we have obtained. We conducted our limited assurance engagement in accordance with the Standard on Sustainability Assurance Engagements (SSAE) 3000, “Assurance Engagements on Sustainability Information” and the Standard on Assurance Engagements (SAE) 3410 “Assurance Engagements on Greenhouse Gas Statements”, both issued by the Sustainability Reporting Standards Board of the !CAI and the International Standard on Assurance Engagement (“ISAE”) 3000 (Revised) “Assurance Engagements other than Audits or Reviews of Historical Financial information” and the ISAE 3410 “Assurance Engagements on Greenhouse Gas Statements” both issued by the International Auditing and Assurance Standards Board (collectively referred to as “the Standards”). These Standards require that we plan and perform our engagement to obtain limited assurance about whether the Identified Sustainability Information is free from material misstatement. A limited assurance engagement involves assessing the suitability in the circumstances of the Bank’s use of the Criteria as the basis for the preparation of the Identified Sustainability Information, assessing the risks of material misstatement of the Identified Sustainability Information whether due to fraud or error, responding to the assessed risks as necessary in the circumstances, and evaluating the overall presentation of the Identified Sustainability Information. 204 HDFC Bank Limited

Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Statutory Reports and Financial Statements Price Waterhouse LLP Chartered Accountants A limited assurance engagement is substantially less in scope than a reasonable assurance engagement in relation to both the risk assessment procedures, including an understanding of internal control, and the procedures performed in response to the assessed risks. The procedures we performed were based on our professional judgement and included inquiries, observation of processes performed, inspection of documents, evaluating the appropriateness of quantification methods and reporting policies and agreeing or reconciling with underlying records. Given the circumstances of the engagement, in performing the procedures referred above, we: ,· Obtained an understanding of the Identified Sustainability Information and related disclosures. ,· Obtained an understanding of the assessment criteria and their suitability for the evaluation and /or measurements of the Identified Sustainability Information. ,· Made enquiries of Bank’s Management, including those responsible for Sustainability, Environmental Social Governance (ESG), Corporate Social Responsibility (CSR), Human Resource (HR) etc. and those with responsibility for managing the Bank’s Integrated Annual Report. ,· Obtained an understanding and performed an evaluation of the keysystems and processes for managing, recording and reporting on the Identified Sustainability Information. This did not include testing of the design and operating effectiveness of the management systems and controls. ,· Based on above understanding and the risks that the Identified Sustainability Information may be materially misstated, determined the nature, timing and extent of further procedures. ,· Checked the consolidation for various branches, offices and other locations under the Standalone reporting boundary (as mentioned in the Integrated Annual Report) for ensuring the completeness of data being reported ,· Performed limited substantive testing on a sample basis of the Identified Sustainability Information for various branches, offices and other locations under the Standalone reporting boundary. (as mentioned in the Integrated Annual Report) to verify that data had been appropriately measured with underlying documents recorded, collated and reported, This included assessing records and performing testing including recalculation of sample data ,· Where applicable for the Identified Sustainability Information in the integrated report. we have relied on thein the audited standalone financial statements of the Bank for the year ended March 31, 20024 and the underlying trial balance. ,· Assessed the level of adherence to GRI Standards, 2021, by the Bank in preparing the Identified Sustainability Information in the Integrated Annual Report. ,· Assessed the Integrated Annual Report for detecting, on a test basis, any major anomalies between the information reported in the Integrated Annual Report on performance with respect to Identified Sustainability Information and relevant source data/information. ,· Evaluated the reasonableness and appropriateness of significant estimates and judgements made by the Management in the preparation of the Identified Sustainability Information. ,· Obtained representations from Bank’s Management. The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had we performed a reasonable assurance engagement. Accordingly, we do not express a reasonable assurance opinion about whether the Identified Sustainability Information have been prepared, in all material respects, in accordance with the Criteria.Integrated Annual Report 2023-24 205

ASSURANCE STATEMENT Price Waterhouse LLP Chartered Accountants Exclusions Our limited assurance scope excludes the following and, therefore, we do not express a conclusion on the same: ,· Operations of the Bank other than the Identified Sustainability Information listed in Appendix 1. ,· Aspects of the Integrated Annual Report and data/ information (qualitative or quantitative) included in the Integrated Annual Report other than the Identified Sustainability Information. ,· Data and information outside the defined reporting period, i.e., the financial year ended March 31, 2024. ,· The statements that describe expression of opinion, belief, aspiration, expectation, aim or future intentions provided by the Bank and testing or assessing any forward-looking assertions and/ or data. Limited Assurance Conclusion Based on the procedures performed and the evidence obtained, nothing has come to our attention that causes us to believe that the Bank’s Identified Sustainability Information summarised in Appendix 1 to this report and included in the Integrated Annual Report for the financial year ended March 31, 2024 is not prepared, in all material respects, in accordance with the Criteria. Emphasis of Matter We draw attention to ‘About the report’ section of the Integrated Annual Report, in respect of the composite scheme for the amalgamation of: (i) erstwhile HDFC Investments Limited and erstwhile HDFC Holdings Limited into and with erstwhile Housing Development Finance Corporation Limited (“erstwhile HDFC Limited”); and (ii) erstwhile HDFC Limited into and with the Bank, and the change in methodologies/ assumptions considered by the Bank in current financial year’s disclosures in respect of Scope t Emissions. Our conclusion is not modified in respect of this matter. Restriction on Use Our obligations in respect of this report are entirely separate from, and our responsibility and liability is in no way changed by, any other role we may have (or may have had) as auditors of the Bank or otherwise. Nothing in this report, nor anything said or done in the course of or in connection with the services that are the subject of this report, will extend any duty of care we may have in our capacity as auditors of the Bank. 206 HDFC Bank Limited

Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Statutory Reports and Financial Statements Price Waterhouse LLP Chartered Accountants This report has been issued at the request of the Board of Directors of the Bank to whom it is addressed, solely to assist the Bank in reporting Bank’s sustainability performance and activities, and for publishing the report in the Integrated Report. Our report should not be used for any other purpose or by any person other than the addressees of our report. Accordingly, we do not accept or assume any liability or any duty of care for any other purpose or to any other person to whom this report is shown or into whose hands it may come without our prior consent in writing. For Price Waterhouse LLP Chartered Accountants Firm Registration Number: 301112E/E300264 Heman Sabbarwal Partner Membership Number: 093263 UDIN: 24093263BKFGLL9577 Place: Gurugram Date: July 09, 2024 Integrated Annual Report 2023-24 207

ASSURANCE STATEMENT Price Waterhouse LLP Chartered Accountants Appendix 1 Identified Sustainability Information Sr. No. GRI Indicator Reference Indicator description GRI-2-7 Employees2302-1Energy Consumption within the organization 3302-3Energy Intensity 4305-1Direct (Scope 1) GHG emissions 5305-2Energy indirect (Scope 2) GIIG emissions Other Indirect (Scope 3) GHG Emissions 6305-3 7305-4GHG emissions intensity 8401-1New employee hires and turnover 9401-3Parental Leave to404-1Average Hours of training per year per employee Programs for upgrading employee skills and transition assistance programs 11404-2 12405-1Diversity of governance bodies and employees 13413-1Operations with local community engagement, impact assessment, and development programs 208 HDFC Bank Limited

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements G R I I N D E X GRI Standard Disclosure Description Page Number(s) URL(s)/ Section General Disclosures GRI 2: General 2-1 Organisational details 14-15, 430 Our Extensive Distribution Network; Disclosures Schedule 17 (SCHEDULES TO THE STANDALONE FINANCIAL STATEMENTS) 2-2 Entities included in the organisation’s 4 About the Report sustainability reporting 2-3 Reporting period, frequency and contact point 4 About the Report 2-4 Restatements of information 4 About the Report 2-5 External assurance 4 About the Report 2-6 Activities, value chain and other 10-13, 14-17 Harnessing Collective Strength; Our business relationships Extensive Distribution Network 2-7 Employees 142-143 Accelerated journey on Diversity, Equity and Inclusion 2-8 Workers who are not employees 530 Employees 2-9 Governance structure and composition 189-197, Driving responsibility and trust; Report 492-493 on Corporate Governance 2-10 Nomination and selection 188-190, Driving responsibility and trust; Report of the highest governance body 488-489 on Corporate Governance 2-11 Chair of the highest governance body 188-190 Driving responsibility and trust 2-12 Role of the highest governance body in 195-197, 503 ESG Governance; overseeing the management of impacts Report on Corporate Governance 2-13 Delegation of responsibility for managing impacts 74-75 Securing our future 2-14 Role of the highest governance body 195-197 Driving responsibility and trust in sustainability reporting 2-15 Conflicts of interest 541, 543 Business Responsibility and Sustainability Report 2-16 Communication of critical concerns 525-526 Means of Communication 2-17 Collective knowledge of the highest 498-499 Report on Corporate Governance governance body 2-18 Evaluation of the performance of the highest 253-254 Directors’ Report governance body 2-19 Remuneration policies 355-368 Disclosures on Remuneration 2-20 Process to determine remuneration 355-368 Disclosures on Remuneration 2-21 Annual total compensation ratio 271 Annexure 5 to Directors’ Report 2-22 Statement on sustainable development strategy 18-25 Message from the MD & CEO 2-23 Policy commitments 193-194 Our policies and frameworks 2-24 Embedding policy commitments 193-194, Our policies and frameworks; 537-538 Management and Process Disclosures 2-25 Processes to remediate negative impacts 36-37, 121-122, Building trust and understanding 532-533, needs; Customers at the Heart of 556, 573 Everything; Business Responsibility and Sustainability Report 2-26 Mechanisms for seeking advice 36-37 Building trust and understanding needs and raising concerns 2-27 Compliance with laws and regulations 96-97, 158-160 Driving Environmental Change; Enabling Community Growth 2-28 Membership associations 568 Business Responsibility and Sustainability Report 2-29 Approach to stakeholder engagement 35 Building trust and understanding needs 2-30 Collective bargaining agreement 154 Employee Wellness Integrated Annual Report 2023-24 209 

G R I I N D E X GRI Standard Disclosure Description Page Number(s) URL(s)/ Section Material Topics GRI 3: Material 3-1 Process to determine material topics 38-39 Aligning for impact Topics 2021 3-2 List of material topics 40 Aligning for impact 3-3 Management of material topics 41-49 Aligning for impact GRI 200: Economic GRI 3: Material 3-3 Management of material topics 41, 47, 49 Aligning for impact Topics 2021 Economic 201-1 Direct economic value generated 27, 200-201, Delivering consistent and profitable Performance and distributed 217 growth; Unparalleled progress, Directors’ Report 201-2 Financial implications and other risks and 109-119 Climate Risk-related Disclosures opportunities due to climate change 201-3 Defined benefit plan obligations and other 547 Business Responsibility and retirement plans Sustainability Report GRI 3: Material 3-3 Management of material topics 42,48 Aligning for impact Topics 2021 Market Presence 202-1 Ratios of standard entry-level wage by gender 555 Business Responsibility and compared to local minimum wage Sustainability Report 202-2 Proportion of senior management hired 188-191 Driving responsibility and trust from the local community GRI 3: Material 3-3 Management of material topics 41, 47, 48 Aligning for impact Topics 2021 Indirect Economic 203-1 Infrastructure investments and 158-181 Enabling Community Growth Impacts services supported 203-2 Significant indirect economic impacts 158-181 Enabling Community Growth GRI 3: Material 3-3 Management of material topics 49 Aligning for impact Topics 2021 Procurement 204-1 Proportion of spending on local suppliers 569 Business Responsibility and Practices Sustainability Report GRI 3: Material 3-3 Management of material topics 44, 193-194 Aligning for impact; Driving Topics 2021 responsibility and trust Anti-corruption 205-1 Operations assessed for risks related to 193-194 Driving responsibility and trust corruption 205-2 Communication and training about anti- 193-194, Driving responsibility and trust; corruption policies and procedures 540-541 Business Responsibility and Sustainability Report 205-3 Confirmed incidents of corruption and actions 540-541 Business Responsibility and taken Sustainability report GRI 3: Material 3-3 Management of material topics 44,193-194 Aligning for impact; Driving Topics 2021 responsibility and trust Anti-competitive 206-1 Legal actions for anti-competitive behavior, anti- 194 Driving responsibility and trust Behavior trust, and monopoly practices 210 HDFC Bank Limited 

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements GRI Standard Disclosure Description Page Number(s) URL(s)/ Section GRI 300: Environment GRI 3: Material 3-3 Management of material topics Topics 2021 Energy 302-1 Energy consumption within the organisation 98-99 Our Energy Performance 302-3 Energy intensity 98 Our Energy Performance 302-4 Reduction of energy consumption 98-100 Our Energy Performance 302-5 Reductions in energy requirements of products 98-100 Our Energy Performance and services GRI 3: Material 3-3 Management of material topics 45 Aligning for impact Topics 2021 Emissions 305-1 Direct (Scope 1) GHG emissions 101-103 GHG Emissions 305-2 Energy indirect (Scope 2) GHG emissions 102-103 GHG Emissions 305-3 Other indirect (Scope 3) GHG emissions 102-103 GHG Emissions 305-4 GHG emissions intensity 102 GHG Emissions 305-5 Reduction of GHG emissions 100-106 GHG Emissions; Measures to reduce GHG emissions Waste 306-3 Waste generated 107 Waste Management 306-4 Waste diverted from disposal 107 Waste Management 306-5 Waste directed to disposal 107 Waste Management GRI 3: Material 3-3 Management of material topics 49 Aligning for impact Topics 2021 Supplier 308-1 New suppliers that were screened using 96-108 Driving Environmental Change Environmental environmental criteria Assessment 308-2 Negative environmental impacts in the supply 96-108 Driving Environmental Change chain and actions taken GRI 400: Social GRI 3: Material 3-3 Management of material topics 42 Aligning for impact Topics 2021 Employment 401-1 New employee hires and employee turnover 146, 147 Talent Acquisition 401-2 Benefits provided to full-time employees that 152-153 Employee Wellness are not provided to temporary or part-time employees 401-3 Parental leave 145, 547 Accelerated journey on Diversity, Equity and Inclusion; Business Responsibility and Sustainability report GRI 3: Material 3-3 Management of material topics 42 Aligning for impact Topics 2021 Labor/ 402-1 Minimum notice periods regarding operational 138-140 From Strength to Strength – Management changes ‘The HDFC Bank Way’ Relations GRI 3: Material 3-3 Management of material topics 42 Aligning for impact Topics 2021 Occupational 403-3 Occupational health services 152-157 Employee Wellness Health and Safety 403-4 Worker participation, consultation, and 152-157 Employee Wellness communication on occupational health and safety 403-6 Promotion of worker health 152-157 Employee Wellness 403-7 Prevention and mitigation of occupational health 152-157 Employee Wellness and safety impacts directly linked by business relationships 403-10 Work-related ill health 152-157 Employee Wellness Integrated Annual Report 2023-24 211 

G R I I N D E X GRI Standard Disclosure Description Page Number(s) URL(s)/ Section GRI 3: Material 3-3 Management of material topics 42 Aligning for impact Topics 2021 Training and 404-1 Average hours of training per year per employee 151 Learning and Development Education 404-2 Programs for upgrading employee skills and 150, 151 Learning and Development transition assistance programs 404-3 Percentage of employees receiving regular 149-151 Learning and Development performance and career development reviews GRI 3: Material 3-3 Management of material topics 42, 44 Aligning for impact Topics 2021 Diversity and 405-1 Diversity of governance bodies and employees 142, 191, 196 Accelerated journey on Diversity, Equity Equal and Inclusion; Driving responsibility and Opportunity trust 405-2 Ratio of basic salary and remuneration of women 555-556 Business Responsibility and to men Sustainability Report GRI 3: Material 3-3 Management of material topics 42 Aligning for impact Topics 2021 Non- 406-1 Incidents of discrimination and 556-558 Business Responsibility and discrimination corrective actions taken Sustainability Report GRI 3: Material 3-3 Management of material topics 42 Aligning for impact Topics 2021 Security Practices 410-1 Security personnel trained in human rights 555 Business Responsibility and policies or procedures Sustainability Report GRI 3: Material 3-3 Management of material topics 42 Aligning for impact Topics 2021 Human Rights 412-1 Operations that have been subject to human 555-558 Business Responsibility and Assessment rights reviews or impact assessments Sustainability Report 412-2 Employee training on human rights policies or 555 Business Responsibility and procedures Sustainability Report 412-3 Significant investment agreements and contracts 555-558 Business Responsibility and that include human rights clauses or that Sustainability Report underwent human rights screening GRI 3: Material 3-3 Management of material topics 48 Aligning for impact Topics 2021 Local 413-1 Operations with local community engagement, 160, 161 Enabling Community Growth Communities impact assessments, and development programs GRI 3: Material 3-3 Management of material topics 49 Aligning for impact Topics 2021 Supplier Social 414-1 New suppliers that were screened using social 552-558 Business Responsibility and Assessment criteria Sustainability Report 414-2 Negative social impacts in the supply chain and 552-558 Business Responsibility and actions taken Sustainability Report GRI 3: Material 3-3 Management of material topics 46 Aligning for impact Topics 2021 Customer Privacy 418-1 Substantiated complaints concerning breaches 573-575 Business Responsibility and of customer privacy and losses of customer data Sustainability Report 212 HDFC Bank Limited 

Statutory and Financial Statements 

D I RE C T OR S ’ R E P O R T Dear Shareholders, Your Directors take great pleasure in presenting the 30th Annual targeted customers and a well-diversified loan book across Report on the business and financial operations of your Bank, sectors, customer segments and products. Its performance together with the audited accounts for the year ended March is an outcome of its disciplined approach to managing risk 31, 2024. and return. The Financial Year 2023-24 was a historic one as the merger The figures for the period ended March 31, 2024 include the of parent HDFC Limited with and into HDFC Bank was operations of erstwhile HDFC Limited which amalgamated completed. This merger strengthened our position as a with and into HDFC Bank on July 01, 2023 and hence the leading financial conglomerate with marquee financial services comparisons with the previous periods have to be looked at institutions like HDFC Life Insurance Company Limited, HDFC in light of the same. Asset Management Company Limited and HDFC ERGO General Insurance Company Limited becoming subsidiaries Based on Standalone Financial Statements in addition to the existing ones, HDFC Securities Limited and The income statement reflected a growth in revenue comprising HDB Financial Services Limited. Net Interest Income and Non Interest Income. While the former grew by 25.0 per cent, the latter grew by 57.7 per cent year-Coming to the macroeconomic environment, India is expected on-year. On an overall basis, Total Net Revenue for the year to be one of the fastest growing major economies in the world ended March 31, 2024, reached ₹ 1,57,773.5 crore, reflecting in the Financial Year 2024-25 with the RBI expecting GDP an increase of 33.6 per cent over the previous year. growth at 7.2 per cent. Over the past three years, the Indian economy grew on an Net Revenue Distribution average by 8.3 per cent and at 8.2 per cent in FY24. GDP growth 200,000 33.6 has been supported by an increase in capital expenditure with the Government doing the heavy lifting. Inflationary pressures 150,000 49,241 have moderated over the last fiscal year with retail inflation 100,000 31,215 averaging at 5.4 per cent in FY24 from 6.7 per cent in FY23. 50,000 108,532 86,842 On the global front, geopolitical tensions could act as a 0 headwind for India’s growth and inflation outlook. However, FY 2022-23 FY2023-24 while these challenges may pose some risks the resilience and momentum shown by the domestic economy in recent Net Interest Income Non-Interest Income years suggests that it is well-equipped to navigate any potential headwinds. Net Profit increased by 37.9 per cent to ₹ 60,812.3 crore from ₹ 44,108.7 crore. Return on Average Net Worth was 16.09 For more details, please refer to the Macroeconomic per cent while Basic Earnings Per Share was ₹ 85.83 up from and Industry section on page no. 220. ₹ 79.25. Your Bank continued to grow in this environment by conducting its business responsibly and reinforcing its commitment to the Net Profit environment and community at large. 70,000.0 37.9 Financial Parameters 60,000.0 50,000.0 The Bank’s key financial parameters continued to be 40,000.0 healthy, primarily attributable to its robust credit evaluation of 30,000.0 20,000.0 10,000.0 44,108.7 60,812.3 0 FY 2022-23 FY2023-24 214 HDFC Bank Limited 

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Total Advances grew by 55.2 per cent and Total Deposits grew Gross Non-Performing Assets (GNPAs) stood at 1.24 per by 26.4 per cent year-on-year. Core Net Interest Margin (NIM) cent as against 1.12 per cent. This is amongst the lowest in was at 3.53 per cent. the industry. Growth in Advances and Deposits 30,00,000 2 ,4,84 862 23,79,786 Gross Non-Performing Assets (GNPAs) 25,00,000 4% 2% 26 . 20,00,000 55 . 18,83,395 15,00,000 16,00,586 10,00,000 1.24 per cent 5,00,000 Amongst the lowest in the industry Advances Total Deposits FY 2022-23    FY 2023-24 In a Snapshot (Standalone) Net Revenue: `1,57,773 crore (YoY: 33.6 per cent) Net Profit : `60,812 crore (YoY: 37.9 per cent) Total Deposits : `23,79,786 crore (YoY: 26.4 per cent) Total Advances : `24,84,862 crore (YoY: 55.2 per cent) Capital Adequacy Ratio : 18.8 per cent (Tier 1:16.8 per cent) Return on Average Assets : 1.98 per cent Gross NPA: 1.24 per cent of Gross Advances Core Net Interest Margin : 3.53 per cent Stepping into a new Era planning and coordinating 32 key workstreams, the committee ensured effective implementation and synergy, prioritising The merger strengthens our position as a leading financial the minimisation of customer grievances and regulatory conglomerate with an unwavering commitment to enhancing compliance. Looking ahead, the Bank’s focus remains on customer service. The fusion of erstwhile HDFC Limited’s profitable growth. By leveraging HDFC Limited’s extensive strong position in the mortgage business and HDFC Bank’s home loan customer base, the Bank will strategically implement operational efficiencies and wider reach, brings significant cross selling initiatives, offering need-based products through benefits for customers, employees and shareholders, digital journeys without incurring additional acquisition costs. amplifying scale and product offerings. We aim to transform our branches into experiential hubs, integrating digital innovation with personalised service to The Integration Committee, formed in October 2022, played a elevate customer engagement. vital role in overseeing the seamless post-merger integration of HDFC Bank and erstwhile HDFC Limited. Strategically Integrated Annual Report 2023-24 215 

D I RE C T OR S ’ R E P O R T Parivartan Summary Parivartan is HDFC Bank’s CSR initiative that aims at The Indian economy registered an average growth rate of 8.3 mainstreaming economically and socially disadvantaged per cent over the last three years, with growth standing at groups by ushering growth, development and empowerment. 8.2 per cent in the Financial Year 2023-24. Going forward, Committed to developing sustainable ecosystems, it India is expected to remain one of the fastest growing major identifies and supports programmes that develop and economies in the world in FY25, with the RBI projecting GDP advance communities. growth at 7.2 per cent. It focuses on five areas: Rural Development, Education, This is expected to be aided by some recovery in consumer Skill Development & Livelihood Enhancement, Healthcare & spending particularly in rural areas. The other positive Hygiene, and Financial Literacy and Inclusion. factors that support demand are a normal monsoon, stable inflation and expected reduction in interest rates. Your Bank In addition, it has been at the forefront of responding to is well-positioned to make the most of these opportunities natural crises—successfully restoring infrastructure and by leveraging the strength of its balance sheet and the trust rehabilitating communities. enjoyed by its brand. Till date, through various interventions HDFC Bank has It is also committed to supporting nation building particularly benefitted over 10.19 crore people. furthering rural prosperity through both its business and social initiatives. We will continue to be a responsible corporate citizen Your Directors are also pleased to report that the Bank met its contributing to the development of society and promoting CSR obligation for the Financial Year 2023-24. sustainability. This journey will of course not be possible without the continuing support of our ever-growing family of CSR Spend over 2.13 lakh employees. We are committed to hiring and retaining the best talent and `945.31 crore being among the industry’s leading employers. In the Financial Year 2023-24 Mission and Strategic Focus Your Bank’s mission is to be a ‘World-Class Indian Bank’. Its business philosophy is based on five core values: Customer Focus, Operational Excellence, Product Leadership, People CSR Beneficiaries and Sustainability. Sustainability should be viewed in unison with Environmental, Social and Governance performance. As Over 10.19 crore a part of this your Bank, through its CSR initiative Parivartan, seeks to bring about change in the lives of communities mainly in rural India. immediate Lives impacted and extended (including both During the year under review, HDFC Bank did not lose the beneficiaries) human touch and continued building a sound customer For further details on our CSR initiatives please refer to franchise across distinct businesses to achieve healthy growth pages: 158 to 181. in profitability consistent with its risk appetite. In line with the above objective, the Bank aims to take digitalisation to the next level. The objective is to: • Deliver superior experience and greater convenience to customers • Increase market share in India’s growing banking and financial services industry 216 HDFC Bank Limited 

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements • Expand geographical reach • Maintain low cost of funds • Cross-sell the broad financial product portfolio Your Bank remains committed to the highest levels of ethical • Sustain strong asset quality through disciplined credit standards, professional integrity, corporate governance and risk management regulatory compliance which is articulated in its Code of Conduct. Every employee affirms to abide by the Code annually. Summary of Financial Performance (₹ crore) For the year For the year Particulars ended / As on ended / As on March 31, 2024 March 31, 2023 Deposits and Borrowings 3,041,939.4 2,090,160.2 Advances 2,484,861.5    1,600,585.9 Total Income 307,581.6 192,800.4 Profit Before Depreciation and Tax 73,705.4 60,727.8 Profit After Tax 60,812.3 44,108.7 Profit Brought Forward 112,960.0 93,185.7 Additions on Amalgamation (net) 3,570.1 -Total Profit Available for Appropriation 177,342.4 137,294.4 Appropriations Transfer to Statutory Reserve 15,203.1 11,027.2 Transfer to General Reserve 6,081.2 4,410.9 Transfer to Capital Reserve 4,166.4 4.6 Transfer to / (from) Investment Reserve 529.4 (294.8) Transfer to / (from) Investment Fluctuation Reserve 378.0 82.0 Transfer to Special Reserve 3,000.0 500.0 Dividend pertaining to previous year paid during the year 8,404.4 8,604.5 Balance carried over to Balance Sheet 139,579.9 112,960.0 Dividend record of dividend distribution, with the Dividend Payout Ratio ranging between 20 per cent and 25 per cent, which the Board The Board of Directors of the Bank, at its meeting held on April endeavours to maintain. The dividend policy of your Bank is 20, 2024, has recommended a dividend of ₹ 19.50 (Nineteen available on the Bank’s website. Rupees Fifty Paisa only) per equity share of ₹ 1/- (Rupee One only) each, for the Financial Year ended March 31, 2024. This https://www.hdfcbank.com/content/bbp/ translates to a Dividend Payout Ratio of 24.38 per cent of the repositories/723fb80a-2dde-42a3-9793-profits for the Financial Year ended March 31, 2024. 7ae1be57c87f/?path=/Footer/About%20Us/Corporate%20 Governance/Codes%20and%20Policie/pdf/Dividend-In general, your Bank’s dividend policy, among other things, Distribution-Policy.pdf balances the objectives of rewarding shareholders and retaining capital to fund future growth. It has a consistent track Integrated Annual Report 2023-24 217 

D I RE C T OR S ’ R E P O R T Ratings Instrument Rating Rating Agency Comments Fixed Deposit CARE AAA (FD) CARE Ratings Securities with this rating are considered to have the highest degree of safety Programme regarding timely servicing of financial obligations. Such securities carry the lowest credit risk. IND AAA India Ratings Securities with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such securities carry the lowest credit risk. Fixed Deposit CRISIL AAA CRISIL Securities with this rating are considered to have the highest degree of safety Programme* regarding timely servicing of financial obligations. Such securities carry the lowest credit risk. Certificate of Deposits CARE A1+ CARE Ratings Securities with this rating are considered to have very strong degree of safety Programme regarding timely payment of financial obligations. Such securities carry the lowest credit risk. IND A1+ India Ratings Securities with this rating are considered to have very strong degree of safety regarding timely payment of financial obligations. Such securities carry the lowest credit risk. Infrastructure Bonds CARE AAA CARE Ratings Securities with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such securities carry the lowest credit risk. CRISIL AAA CRISIL Securities with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such securities carry the lowest credit risk. IND AAA India Ratings Securities with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such securities carry the lowest credit risk. ICRA AAA ICRA Securities with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such securities carry the lowest credit risk. Additional Tier I CARE AA+ CARE Ratings Securities with this rating are considered to have the highest degree of safety Bonds regarding timely servicing of financial obligations. (Under Basel III) Such securities carry the lowest credit risk. CRISIL AA+ CRISIL Securities with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such securities carry the lowest credit risk. IND AA+ India Ratings Securities with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such securities carry the lowest credit risk. Tier II Bonds CARE AAA CARE Ratings Securities with this rating are considered to have the highest degree of safety (Under Basel III) regarding timely servicing of financial obligations. Such securities carry the lowest credit risk. CRISIL AAA CRISIL Securities with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such securities carry the lowest credit risk. IND AAA India Ratings Securities with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such securities carry the lowest credit risk. ICRA AAA ICRA Securities with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such securities carry the lowest credit risk. 218 HDFC Bank Limited

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Instrument Rating Rating Agency Comments Commercial Paper CARE A1+ CARE Ratings Securities with this rating are considered to have the highest degree of safety (Transferred from regarding timely servicing of financial obligations. e-HDFC Limited)* Such securities carry the lowest credit risk. CRISIL A1+ CRISIL Securities with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such securities carry the lowest credit risk. ICRA A1+ ICRA Securities with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such securities carry the lowest credit risk. Bank Loans CARE AAA CARE Ratings Securities with this rating are considered to have the highest degree of safety (Transferred from regarding timely servicing of financial obligations. e-HDFC Limited)* Such securities carry the lowest credit risk. ICRA AAA ICRA Securities with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such securities carry the lowest credit risk. Unsecured NCD CRISIL AAA CRISIL Securities with this rating are considered to have the highest degree of safety (Transferred from regarding timely servicing of financial obligations. e-HDFC Limited)* Such securities carry the lowest credit risk. ICRA AAA ICRA Securities with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such securities carry the lowest credit risk. Subordinated Debt CRISIL AAA CRISIL Securities with this rating are considered to have the highest degree of safety (Transferred from regarding timely servicing of financial obligations. e-HDFC Limited)* Such securities carry the lowest credit risk. ICRA AAA ICRA Securities with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such securities carry the lowest credit risk. * The instruments / bank facilities have been transferred from erstwhile Housing Development Finance Corporation Limited (HDFC Ltd) on account of amalgamation of HDFC Limited into HDFC Bank Limited with effect from July 01, 2023. Issuance of Equity Shares and Employee Stock warrant holders until the last conversion date of warrants which Option Scheme (ESOP) was August 10, 2023. Additionally, 10,200 warrants lapsed due As on March 31, 2024, the issued, subscribed and paid-up to non-exercise. capital of your Bank stood at ₹ 7,59,69,10,662.00/- comprising Capital Adequacy Ratio (CAR) 7,59,69,10,662 equity shares of ₹ 1/- each. Further, 4,66,21,586 As on March 31, 2024, your Bank’s total CAR, calculated as equity shares of face value of ₹ 1/- each were issued by your per Basel III Regulations, stood at 18.8 per cent, well above the Bank pursuant to the exercise of Employee Stock Options regulatory minimum requirement of 11.7 per cent, including a (ESOPs). (For information pertaining to ESOPs, please refer Capital Conservation Buffer of 2.5 per cent and an additional Annexure 1 of the Directors’ Report). requirement of 0.2 per cent on account of the Bank being Pursuant to the merger of erstwhile HDFC Limited (e-HDFC) identified as a Domestic Systemically Important Bank. Tier I with and into the Bank, the Allotment and Transfer Committee Capital was at 16.79 per cent as of March 31, 2024. of HDFC Bank at its meeting held on July 14, 2023, approved the continuation of warrants in the name of HDFC Bank for the TOTAL CAR Warrants of e-HDFC held as on the record date in the same ratio i.e. one (1) HDFC Bank Warrant for one (1) HDFC Limited Warrant. Consequently, as of July 14, 2023, the 1,47,57,600 warrants previously issued by e-HDFC Limited were retained 18.8 per cent in the name of HDFC Bank. Well Above Regulatory Minimum Requirement of Furthermore, the Bank has subsequently allocated 2,47,75,632 11.7 per cent equity shares following the exercise of 1,47,47,400 warrants by Integrated Annual Report 2023-24 219 

D I RE C T OR S ’ R E P O R T Management Discussion and Analysis of supply chains out of China and to other emerging markets is likely to channel investment flows into India. Furthermore, Macroeconomic and Industry Development the International Monetary Fund upgraded its global growth Over the past three years, the Indian economy registered an forecast by 10 bps to 3.2 per cent for FY24 which bodes well average growth rate of 8.3 per cent. India’s real GDP growth for India’s economic growth. In addition, domestic consumer has been pegged at 8.2 per cent for FY24 as per the provisional spending is expected to see some recovery particularly in rural estimates released by the National Statistical Office (NSO). areas as a normal monsoon, stable inflation and a reduction in The GDP growth has been supported by a boost in capital interest rates support demand. expenditure particularly in infrastructure development including Inflationary pressures have moderated over the last fiscal year, roads, highways, railways and housing with the Government with retail inflation averaging at 5.4 per cent in FY24 from 6.7 per doing the heavy lifting. Additionally, private sector investment cent in FY23. Although, retail headline inflation rose to a high also showed some signs of resurgence in sectors such as of 7.4 per cent in July 2023 it has since moderated reaching cement, steel, oil and gas. 4.83 per cent in April 2024. Encouragingly, core inflation (retail On the other hand, private consumption growth slowed to inflation excluding food and fuel) has also dipped below 4 per 4.0 per cent in FY24 from 6.8 per cent in FY23 and 11.7 per cent signalling a disinflationary trend. Going forward, we expect cent in FY22. To recall, post the pandemic, consumption had retail inflation to average at 4.6 per cent in FY25 assuming been driven by services along with high demand for premium normal monsoon. Additionally, a favourable economic base products. However, as this pent-up demand effect waned and and controlled core inflation is expected to offer support. That interest rates started rising consumer demand slowed down in said, weather related disturbances such as heatwaves, uneven FY24. Moreover, high food inflation and an uneven monsoon distribution of monsoons along with a resurgence in global weighed on rural demand recovery. commodity prices remain a risk to the inflation trajectory. As for the supply side, rise in manufacturing and construction Emerging risks on the global front could pose challenges to activity has largely aided growth. The manufacturing sector India’s growth trajectory and inflation outlook. Higher crude has benefitted from improved profit margins due to lower oil prices as a result of any escalation in Middle East tensions input costs, while Government support schemes such as and tighter global oil supply pose a risk for domestic growth the ECLGS aided MSMEs. Further, favourable infrastructure and inflation. Moreover, the impact of geopolitical tensions on and policy measures like Production Linked Incentive (PLI) global supply chains could hurt India’s exports to major trading and FAME 2 Schemes finally paid off for some critical sectors partners and escalate costs. However, while global challenges like automobiles, electronics (largely mobile handsets) and may pose some risks, the resilience and momentum shown metals. Moreover, the construction sector has maintained an by the domestic economy in recent years suggests it is well-average growth rate of 13.1 per cent over the past three years equipped to navigate any potential headwinds. supported by Government infrastructure investments and an increased housing market demand. Financial Performance On the external front, slowdown in global growth significantly The financial performance of your Bank during the year ended impacted India’s exports of goods and services in FY24. March 31, 2024 remained healthy with Total Net Revenue (Net However, expansion of professional and business services Interest Income plus Other Income) rising 33.6 per cent to exports combined with diversification to new markets such as ₹ 1,57,773.5 crore from ₹ 1,18,057.1 crore in the previous year. Central Asia and Latin America helped cushion the impact of Revenue growth was driven by an increase in both Net Interest the slowdown elsewhere in the global economy. Income and Other Income. Net Interest Income grew by 25.0 per cent to ₹ 1,08,532.5 crore. Core Net Interest Margin was Going forward, India is expected to remain one of the fastest at 3.53 per cent. growing economies in the World in FY25 with the RBI forecasting TOTAL NET REVENUE a GDP growth rate of 7.2 per cent. Economic activity is expected to be supported by a further surge in private capital expenditure and continued Government capital spending. Moreover, a .6 higher allocation for Production Linked Incentive (PLI) sectors 33 per cent growth in the Budget for FY25 is likely to bolster manufacturing activity in the Financial Year 2023-24 and attract FDI flows. In addition, a continued diversification 220 HDFC Bank Limited 

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Other Income grew by 57.7 per cent to ₹ 49,241.0 crore. The The Domestic Loan Portfolio at ₹ 24,46,212 crore grew by 56.9 largest component was Fees and Commissions at ₹ 28,160.7 per cent over March 31, 2023. crore. Profit on Revaluation and Sale of Investments was ₹ 11,526.1 crore. Foreign Exchange and Derivatives Revenue The Bank’s Debt Equity Ratio for the year ended March 31, was ₹ 4,001.1 crore and recoveries from written-off accounts 2024 stood at 1.21 as compared to 0.39 in the previous year. were ₹ 3,441.3 crore. NET PROFIT Operating (Non-Interest) Expenses rose to ₹ 63,386.0 crore from ₹ 47,652.1 crore. During the year, your Bank set up 925 new branches and 1,211 ATMs / Cash Recycler Machines (CRMs). 37.9 per cent increase The addition in expenses includes erstwhile HDFC Limited operating cost post-merger. This, along with higher spend in the Financial Year 2023-24 on IT resulted in higher infrastructure and staffing expenses. Staff expenses also went up due to employee additions and Erstwhile HDFC Limited Borrowing Maturity Schedule annual wage revisions. Further, Deposit Insurance and Credit Guarantee Corporation (DICGC) premium cost increased due Of the erstwhile HDFC Ltd’s borrowings of ₹ 4,01,140 crore to deposit growth. Despite higher Staff and Infrastructure as at March 31, 2024, approximately 15 per cent is due for Expenses, the Cost to Income Ratio was 40.2 per cent as repayment in each of the three years up to FY27 and the compared to 40.4 per cent during the previous year. balance 55 per cent is due thereafter. Total Provisions and Contingencies were ₹ 23,492.2 crore Business Review as compared to ₹ 11,919.7 crore in the preceding year. The Your Bank’s operations are split into Domestic and International. increase is mainly on account of floating provision created during the year of ₹ 10,900.0 crore. Your Bank’s provisioning A. Domestic Business comprises the following: policies remain more stringent than regulatory requirements. The Coverage Ratio based on specific provisions alone Retail Banking excluding write-offs was 74.0 per cent and including general, Your Bank’s Retail Assets are built on three key principles: floating and contingent provisions was 195.3 per cent. Your Strong Digital Offering, Optimal Risk Pricing and Maintaining Bank made General Provisions of ₹ 1,146.1 crore during the Pristine Portfolio Quality. Adherence to these principles year. Gross Non-Performing Assets (GNPAs) were at 1.24 combined with the strength of merger boosted your Bank’s per cent of Gross Advances, as against 1.12 per cent in the Retail Advances which witnessed a 104.33 per cent year-on-previous year. Net NPA ratio stood at 0.33 per cent as against year growth. 0.27 per cent in the previous year. Brief on segment performance: Profit Before Tax grew by 21.2 per cent to ₹ 70,895.3 crore. The Bank’s increased focus on top corporates and good After providing for Income Tax of ₹ 10,083.0 crore, Net Profit credit score customers contributed to the overall pristine increased by 37.9 per cent to ₹ 60,812.3 crore from ₹ 44,108.7 portfolio quality. Personal Loans segment has experienced crore. Return on Average Net Worth was 16.09 per cent while strong growth with the overall portfolio touching Basic Earnings Per Share (EPS) was ₹ 85.83 up from ₹ 79.25. ₹1,84,581 crore towards the end of the year. An overwhelming majority As on March 31, 2024, your Bank’s Total Balance Sheet of applications (99 per cent) of this segment are originated stood at ₹ 36,17,623 crore, an increase of 46.7 per cent over digitally and 86 per cent of these applications are disbursed ₹ 24,66,081 crore on March 31, 2023. Total Deposits rose by digitally. The Xpress car loans, offering seamless end-to-end 26.4 per cent to ₹ 23,79,786 crore from ₹ 18,83,395 crore. digital disbursement, has increased the digital origination to Savings Account Deposits grew by 6.4 per cent to ₹ 5,98,747 30 per cent of the total New Car Loan business. Two-Wheeler crore while Current Account Deposits rose by 13.4 per cent Advances has grown by 15 per cent to ₹11,776 crore of to ₹ 3,10,016 crore. Time Deposits stood at ₹ 14,71,023 crore, Advances and has 98 per cent of digital acquisition. representing an increase of 40.4 per cent. CASA Deposits accounted for 38.2 per cent of Total Deposits. Advances stood at ₹ 24,84,862 crore, representing an increase of 55.2 per cent. Integrated Annual Report 2023-24 221

DIRECTORS’ REPORT

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements product knowledge, sales techniques, communication skills, per this arrangement, your Bank sourced HDFC home loans compliance and regulatory requirements and customer while HDFC Limited approved and disbursed them. HDFC relationship management skills. Bank received a sourcing fee for these loans and as per the arrangement had the option to purchase loans for a value up As we transition into the digital age, a banking experience to 70 per cent of the loans sourced by the Bank either through characterised by digital ease and personalised conversations the issuance of mortgage-backed Pass-Through Certificates remains at the core of our Virtual Relationship Management (PTCs) or a direct assignment of loans. The balance was (VRM) strategy. retained by HDFC Limited. As a part of this strategy, Relationship Managers reach out The Bank is gradually converting erstwhile HDFC Limited’s to customers through remote and digital platforms resulting service centres to branches and has a well-defined approach in deeper and cost-effective engagement. As digital literacy for this. Cross-selling remains a primary focus for both existing and exposure increases exponentially, VRMs are gaining and new customers, leveraging the Bank’s digital channels wider acceptance through deeper engagement and to minimise acquisition costs effectively. Post the merger, relationships backed by a strong product offering thereby approximately 85 per cent of the newly acquired home loan constituting an important component of the Bank’s customer customers hold a liability account with your bank. Your Bank’s engagement strategy. market share growth on incremental disbursals is in double digits post—merger. With proper training, technology support, and adherence to compliance, this channel is a highly effective tool for the Bank Third Party Products to drive revenue growth, expand its customer base and provide Your Bank distributes Life, General and Health Insurance as excellent customer service. well as Mutual Funds (Third Party Products) to its customers. In the Financial Year 2023-24, the income from this business As of March 31, 2024, the Bank’s distribution network was accounted for 22 per cent of Bank’s Total Fee Income. at 8,738 branches and 20,938 ATMs / CRMs across 4,065 cities / towns as against 7,821 branches and 19,727 ATMs across 3,811 cities / towns as of March 31, 2023. 52 per cent Revenue- ThirdParty Products of our branches are in semi-urban and rural areas. In addition, 6,260 we have 15,182 business correspondents, which are primarily 6500 % manned by Common Service Centres (CSC). The total number 6000 . 8 4 5,4551 of customers your Bank catered to as on March 31, 2024 was 5500 over 9.32 crore, up from over 8.28 crore in the previous year. 5000 FY 2022-23 FY 2023-24 Retail Banking—Home Loan Business Post-merger integration of the erstwhile HDFC Limited’s home Life Insurance loan portfolio with the Bank has resulted in scale in terms of customer base and book size. This also brings together Your Bank has adopted an open architecture model for erstwhile HDFC Limited’s segment expertise and in person distributing insurance products from our three trusted partners customer connect with HDFC Bank’s extensive branch with a focus on offering customers a diverse array of options. For network, ability to leverage technology platforms and a wide the year ended March 31, 2024, the Bank mobilised premium bouquet of banking products. The Gross Retail Mortgage of ₹ 8,940 crore representing a year-on-year growth of three Advances stood at ₹ 7,72,786 crore compared to the previous per cent. Our extensive distribution network includes branches, year’s ₹ 1,78,840 crore. The figures for the period ended March virtual channels, NRI services and wealth management. The 31, 2024 include the operations of erstwhile HDFC Limited key focus would continue to be on staff training, robust quality which amalgamated with and into HDFC Bank on July 01, 2023 and control processes uniformly implemented across all and hence comparisons with the previous periods have to be partners as well as offering integrated and seamless digital onlooked at in light of the same. boarding journeys. Currently, the Bank’s Net Banking platform As you are aware prior to the merger, your Bank operated in offers 57 insurance products across all partners accounting for the Home Loan Business in conjunction with HDFC Limited. As over 46 per cent of the total policies. Integrated Annual Report 2023-24 223

D I RE C T OR S ’ R E P O R T Non-Life Insurance The Bank’s focus is to develop wealth management across the country by focusing on super affluent and mass affluent Your Bank, in collaboration with its three General Insurance clients. It has focused on growth of market share through 150+ and two Standalone Health and Insurance partners, has client events in FY24. introduced innovative non-life insurance products to expand the range of offerings and provide a comprehensive coverage A Service First culture, enables us to deliver best-in-class to customers. These products are accessible through both experience to clients. Wealth Business has achieved higher digital and physical platforms. Employees across channels growth through better product selection and enhanced service have been trained in the new products and processes. To meet experience with engaged and trusted wealth bankers. A strong customer demands, additional manpower has been deployed brand as well as experience of over two and a half decades across non-life insurers. As on March 31, 2024, premium resonates well with customers and creates trust. This trust mobilisation in General and Health Insurance reached a total has been strengthened through robust processes, diligent of ₹ 4,208.4 crore representing a growth of 75 per cent over research methodology and bespoke recommendation model the previous year. for Portfolio Management Services (PMS) and Alternate Mutual Funds Investment Funds (AIF). This is in addition to the Fama model for selection of mutual funds. Your Bank follows an open architecture approach in distribution Your Bank has provided wealth bankers with a state-of-the-art of Mutual Funds and is currently associated with 35 Asset investment platform that uses advanced analytics to provide Management Companies (AMCs). consolidated portfolio overview. It continues to invest in training The Bank’s Asset Under Management (AUM) grew by 35 per talent by providing best in class programmes from IIMs and cent to reach ₹ 1,37,343 crore for the year ended March 31, other leading institutions to enhance the knowledge levels and 2024. The Bank offers digital on-boarding platform to the skills of our wealth bankers. This helps them to engage better customers for Mutual Fund investments through Investment with clients in a dynamic market environment. Services Account (ISA) and SmartWealth (app based). During the same period, HDFC Bank and HSL (InvestNow) Wealth Business has developed an advanced unassisted witnessed a significant growth of 44 per cent in Systematic digital investment platform, SmartWealth, that provides -Investment Plans (SIPs) mobilisation. Ø Model portfolio basket recommendations Ø Consolidated portfolio view Assets Under Management (AUM) Ø Account aggregation across banks 1,37,343 150000 Ø Portfolio analytics on-the-go 1,01,655 Ø Nudges to rebalance portfolio 100000 Ø SIP calendar and ability to pause and restart SIPs 50000 0 This new state-of-the-art mobile application provides a FY 2022-23 FY 2023-24 highly personalized experience and will democratise wealth management across customer segments. It has more than 1.1 Wealth Management lakh downloads and 70 per cent active users. In the Financial Year 2023-24, with expansion being at the In an endeavour to align with the client’s long term interest, centre of our decisions, Wealth Business has seen a growth your Bank has focused on growing recurring revenue which in the client base by 34 per cent over the previous year. This has yielded positive results. In Financial Year 2023-24, the business now manages over 83,000 households. With an wealth teams’ recurring (trail) income has grown by 25 per increase in client base, your Bank has also seen an increase cent and ranges between 40-50 per cent. This growth reflects in the strength of our wealth bankers. HDFC Bank now has a a commitment to provide sustainable value to clients while team of 1,000+ wealth bankers working across 923 locations ensuring the long-term profitability of your Bank. through a hub and spoke model. Your Bank’s Assets Under Management (AUM) grew by 43 per cent in FY24 to ₹ 6.34 lakh crore. 224 HDFC Bank Limited

D I RE C T OR S ’ R E P O R T platform enables digital contract bookings and automated In the year under review, your Bank continued to be a significant disbursements streamlining end-to-end SCF transactions for participant in the domestic exchange and interest rate markets. the corporates. Your Bank has also integrated with all the three It also capitalised on falling bond yields to book profits and TReDS platforms. We are also collaborating with Fintechs to is now looking at tapping opportunities arising out of the integrate with Corporate ERP and offer Embedded Banking in liberalisation in the foreign exchange and interest rate markets. Corporate Ecosystems journeys. B. International Business Treasury During the year, your Bank stayed on course to cater to NRI The Treasury Department is the custodian of your Bank’s cash/ clients and deepen its product and service proposition. Your liquid assets and handles its investments in securities, foreign Bank has global footprints by way of representative offices and exchange and cash instruments. It manages the liquidity and branches in countries like Bahrain, Hong Kong, the UAE and interest rate risks on the balance sheet and is also responsible Kenya. It also has a presence in International Financial Service for meeting reserve requirements. The vertical also helps Centre (IFSC) at GIFT City in Gandhinagar, Gujarat. In addition, manage the hedging needs of customers and earns a fee two existing representative offices of erstwhile HDFC Limited income generated from transactions customers undertake in London and Singapore have become representative offices with your Bank while managing their foreign exchange and of the Bank as per the composite scheme of amalgamation interest rate risks. between HDFC Bank Limited and HDFC Limited. These offices are for providing loans-related services for availing housing Revenue accrues from spreads on customer transactions loans in India and for the purchase of properties in India. based on trade and remittance flows and demonstrated hedging needs. Your Bank recorded a revenue of ₹ 4,001.10 The Bank’s product strategy in International Markets is crore from foreign exchange and derivative transactions in the customer centric and it has products to cater to client needs year under review. across asset classes. GIFT City branch offers products such as trade credits, foreign currency term loans (including external As a part of its prudent risk management, your Bank enters into commercial borrowings). It has gradually widening the product foreign exchange and derivatives deals with counterparties after offerings to cater to the needs of Resident and Non-Resident it has set up appropriate credit limits based on its evaluation clients and capitalise on the growth in the financial centre. of the ability of the counterparty to meet its obligations. Where your Bank enters into foreign currency derivatives contracts not As on March 31, 2024, the Balance Sheet size of International involving the Indian Rupee with its customers, it typically lays Business was US $ 9.06 billion. Advances constituted 1.55% them off in the inter-bank market on a matched basis. For such of the Bank’s advances. The Total Income contributed by foreign currency derivatives, your Bank primarily carries the Overseas Branches constituted 1.51% of the Bank’s Total counterparty credit risk (where the customer has crystallised Income for the year. payables or ‘mark-to-market’ losses) and may carry only residual market risk, if any. Your Bank also deals in derivatives INTERNATIONAL BUSINESS BALANCE SHEET on its own account including for the purpose of its own balance sheet risk management. HDFC Bank is also a nominated agent for the bullion imports US $ 9.06 billion and has a significant market share in that business. Your Bank maintains a portfolio of Government securities in C. Government, Institutional Business and Start-line with the regulatory norms governing the Statutory Liquidity Ups Ratio (SLR). A significant portion of these SLR securities are in It has been another year of steady progress for ‘Held-to- Maturity’ (HTM) category, while some are ‘Available for Government, Institutional Business and Start–Ups within Sale’ (AFS). The Bank is also a primary dealer for Government your Bank. Some of the key highlights include: Securities. As a part of this business, your Bank holds fixed income securities as ‘Held for Trading’ (HFT). 226 HDFC Bank Limited

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements 1. Increased focus on the retail Government deposits Masjid A/C Burhani Qardan Hasana, Punjab Wakf resulted in your Bank acquiring over 15 per cent of Board and the chain of ISKCON. the market share in 159 districts. 6. Your Bank has received positive customer feedback 2. Your Bank continues to lead in generating Agency for its recently launched digital products: Business, ranking among the top three leading Government Agency Banks for collecting Central a. HDFC Bank CollectNow: This omnichannel Government taxes. Substantial market shares collection solution seamlessly integrates were acquired in collections of Direct Tax, GST and online and offline payments, setting a new Custom Duty as per tax collection data reported industry standard. through PIB & CGA, GoI. b. FARSight Dashboard: A visualisation tool that HDFC Bank’s Market Share (approx): provides customers an easy understanding of balances and fund movements across Custom Duty Collections 8% accounts in a multi-level parent child set-up. Goods and Services Tax Collections 16% 7. Start-Ups: Your Bank has revamped its offering for Direct Tax Collections 24% start-ups under its flagship program StartUp|BuildUp. New offerings introduced in the current financial year 3. Your Bank facilitated the transfer of funds flowing include: from the Central Government to various beneficiaries under the aegis of the Centrally Sponsored a. A Credit Guarantee Scheme for Start-Ups Schemes, Central Sector Schemes, and the 15th providing lending opportunities upon meeting Finance Commission. The total flows processed specific criteria. grew by 39 per cent YoY. b. Specialised group health insurance coverage 4. Your Bank has intensified its efforts to engage with plans designed for Start-Ups with a minimum pensioners implementing the following measures: of 7 employees. a. Enhancing our pension product by introducing c. Commercial cards for both personal and new features such as health and cyber professional expenses of founders backed by insurance coverage for pensioners up to 75 fixed deposits. years of age along with providing discounted rates from HDFC ERGO. d. To help Start-Ups be compliant with regulations, your Bank renders value-added b. In the Financial Year 2023-24, we ensured that services such as provision of legal handbooks 99 per cent of pensioners (our customers) and compliance calendars for its customers. successfully submitted their digital life certificates in the Pension Processing System 8. Your Bank signed MoUs with prominent Start-Up of the Bank through a hassle-free experience. ecosystem partners. Most of them are incubators located at educational institutions. Some of the 5. This fiscal year, your Bank has expanded its presence partners are: in the education sector by successfully onboarding approximately 40 per cent of universities nationwide. a. Indian Institute of Management, Kozhikode Some of the marquee additions include IIM Indore, Laboratory for Venturing, Innovation IIM Nagpur, IIM Amritsar, NIT Mizoram and Assam and Entrepreneurship University. Additionally, we have onboarded notable religious organisations, including Shrinathji Temple—b. AIC Jawaharlal Nehru University Foundation Nathdwara, Shri Badrinath Kedarnath Mandir Samiti, for Innovation Catholic Mission of Western Bengal, Ramakrishna Mission, Sree Ayyappan Temple Trust, S D B J c. AIC Anna University, Chennai Integrated Annual Report 2023-24 227

DIRECTORS’ REPORT

DIRECTORS’ REPORT

D I RE C T OR S ’ R E P O R T Throughout the fiscal year, your Bank has actively supported Government initiatives aimed at extending banking services to unbanked areas. Below are key highlights: To enhance financial inclusion among under-banked communities Pradhan Mantri Jan Dhan Yojana (PMJDY) and Social Security Schemes Support: Opened over 38.89 lakh PMJDY accounts and enrolled 49.60 lakh customers in Social Security (PMJJBY, PMSBY and APY) Schemes (PMJJBY, PMSBY and APY) since inception. To empower individuals with the necessary knowledge and skills to make informed financial decisions Financial Literacy Camps (FLC) Support: Your Bank has organised financial Literacy camps through Rural Branches and designated Financial Literacy Centres. To enable small borrowers to borrow upto ₹10 lakh for non farm income generating activities Pradhan Mantri Mudra Yojana (PMMY) Support: Since the launch of the scheme, your Bank has extended loans amounting to ₹74,379 core to 1.26 crore beneficiaries. To empower the Scheduled Caste, Scheduled Tribe and Women borrowers Stand Up India (SUPI) Support: Extended loans amounting to ₹2,450 crore to 10,544 beneficiaries since inception of the scheme. A special scheme aimed at generating employment opportunities in rural and urban areas through establishment of new self-employment ventures, projects and micro-enterprises Prime Minister’s Employment Generation Support: Disbursed funding of ₹166 crore since inception to such Micro Enterprise units in non-farm Programme (PMEGP) sector. Special scheme under micro-credit facility for street vendors providing collateral-free, affordable term PM Street Vendors Atma Nirbhar Nidhi loans of ₹10,000 for one year (PMSVANIDHI) Support: Loans provided to 38,693 street vendors since inception. Further, efforts have been made to educate street vendors on digital financial transactions. Aadhaar Seva Kendras Adhering to regulatory requirements, your Bank provides Aadhaar enrolment and updation services at (Aadhaar enrolment and updation services) branches that are designated as Aadhaar Seva Kendras Support: More than 61.8 lakh enrolments and updations undertaken since inception. Sustainable Livelihood Initiative in an ever-evolving landscape. Our supervisory behaviour framework-Nurture, Care, Collaborate (NCC) -empowers Our Sustainable Livelihood Initiative (SLI) is a holistic approach our workforce with the knowledge and guidance that aims to deliver financial support to that section of the needed to lead transformation. We focus on acquiring population who lack access to formal banking services. diverse talent and prioritise their well-being, safety, and development, fostering an inclusive environment where For details click on https://www.hdfcbank.com/personal/ they can succeed and grow. borrow/other-loans/sustainable-livelihood-initiative For details please refer to pages: 138 to 157. E. Environmental Sustainability Sustainability is one of the core values of the Bank. 2. Transforming Banking for the Future and The details are covered in pages 88 to 119. Technology Absorption F. Business Enablers In the ever-evolving landscape of banking, HDFC Bank remains steadfast in its commitment to take forward 1. People its customer-centric approach. Given below are the People is one of the core values of the Bank. Through five pillars. continuous reinforcement and alignment with our strategic objectives, the HDFC Bank Culture Framework ensures that over 2,13,000 employees are equipped to succeed 232 HDFC Bank Limited

DIRECTORS’ REPORT

DIRECTORS’ REPORT

D I RE C T OR S ’ R E P O R T Digital and Credit Risk the banking book. The Asset Liability Committee (ALCO) is a decision-making unit responsible for implementing the liquidity Driven by rapid technological advancements, the banking and interest rate risk management strategy of the Bank in line sector is witnessing the increasing importance of digitalisation with its risk management objectives and ensures adherence as a critical differentiator for customer retention and service to the risk tolerance / limits set by the Board. ALCO reviews delivery. Digital lending has emerged as a convenient and the policy’s implementation and monitoring of limits. While the quick method for customers to secure loans with just a few maturity gap, Basel III ratios and stock ratio limits help manage clicks often in minutes, if not seconds. However, addressing liquidity risk, Net Interest Income impact and market value the risks associated with digital lending is crucial and your of equity (MVE) impact help mitigate interest rate risk in the Bank has implemented appropriate measures to manage these banking book. This is reinforced by a comprehensive Board-risks effectively. Digital loans are sanctioned primarily to your approved stress testing programme covering both liquidity and Bank’s existing customers. Often, they are customers across interest rate risk. multiple products, thus enabling the Bank ready access to their credit history and risk profile. This accessibility facilitates the Your Bank conducts various studies to assess the behavioural evaluation of their loan eligibility. Moreover, the credit checks pattern of non-contractual assets and liabilities and embedded and scores used by your Bank in process-based underwriting options available to customers, which are used while managing are replicated for digital loans. This ensures consistency in the maturity gaps and repricing risk. Further, your Bank has the evaluation process. necessary framework to manage intraday liquidity risk. Market Risk The Liquidity Coverage Ratio (LCR) is one of the Basel Committee’s key reforms to develop a more resilient banking Market Risk arises primarily from your Bank’s statutory reserve sector. The LCR, a global standard, is also used to measure management and trading activity in interest rates, equity, and your Bank’s liquidity position. LCR seeks to ensure that the currency market. These risks are managed through a well- Bank has an adequate stock of unencumbered High-Quality defined Board approved Market Risk Policy, Investment Policy, Liquid Assets (HQLA) that can be converted into cash easily Foreign Exchange Trading Policy, and Derivatives Policy that and immediately to meet its liquidity needs under a 30-day caps risk in different trading desks or various securities through calendar liquidity stress scenario. The LCR helps in improving trading risk limits / triggers. The risk measures include position the banking sector’s ability to absorb shocks arising from limits, tenor restrictions, sensitivity limits, namely, PV01, financial and economic stress, whatever the source, thus Modified Duration of Hold to Maturity Portfolio and Option reducing the risk of spill over from the financial sector to the Greeks, Value-at-Risk (VaR) Limit, Stop Loss Trigger Level real economy. Based on Basel III norms, your Bank’s average (SLTL), Scenario-based P&L Triggers, Potential Loss Trigger LCR stood at 117.35 per cent on a consolidated basis for Level (PLTL) and are monitored on an end-of-day basis. In financial year 2023-24 as against the regulatory threshold at addition, forex open positions, currency option delta, and 100 per cent. interest rate sensitivity limits are computed and monitored on an intraday basis. This is supplemented by a Board-approved Average Liquidity Coverage Ratio stress testing policy and framework that simulates various market risk scenarios to measure losses and initiate remedial measures. Your Bank’s Market Risk capital charge is computed daily using the Standardised Measurement Method applying 117.35 per cent the regulatory factors. On a Consolidated Basis for the Liquidity Risk Financial Year 2023-24 Liquidity risk is the risk that the Bank may not be able to The Net Stable Funding Ratio (NSFR), a key liquidity risk meet its financial obligations as they fall due without incurring measure under BCBS liquidity standards, is also used to unacceptable losses. Your Bank’s liquidity and interest rate measure your Bank’s liquidity position. The NSFR seeks to risk management framework is spelt out through a well- ensure that your Bank maintains a stable funding profile in defined Board approved Asset Liability Management Policy. relation to the composition of its assets and off-balance sheet As part of this process, your Bank has established various activities. The NSFR promotes resilience over a longer-term Board-approved limits for liquidity and interest rate risks in time horizon by requiring banks to fund their activities with 238 HDFC Bank Limited

DIRECTORS’ REPORT

D I RE C T OR S ’ R E P O R T Some of the key roles in this programme are as follows: preventive and detective controls implemented through systems and processes, ensuring a robust framework in Steering Committee your Bank to enable correct and complete accounting, The Steering Committee ensures centralised monitoring of your Bank’s Business Continuity program implementation identification of outliers (if any) by the management Crisis Management teams on a timely basis for corrective action and mitigating Crisis Management teams work on effective management of recovery operations during </> disruptive events operational risks. Disaster Recovery (DR) Site A dedicated DR site for recovery of critical core and customer facing applications Your Bank has put in place various preventive controls, including: Functional recovery plans Functional recovery plans ensure structured and expedited restoration of operations a) Limited and need-based access to systems by users Periodic drils Periodic drills are conducted for testing the effectiveness of recovery plans b) Dual custody over cash and near-cash items As a responsible Bank, these steadfast practices have c) Segregation of duty in processing of transactions vis-à-vis enabled us to continue seamless service delivery to our creation of user IDs customers through disruptive events and beyond. d) Segregation of duty in processing of transactions vis-à-vis Internal Controls, Audit and Compliance monitoring and review of transactions/ reconciliation Your Bank has put in place extensive internal controls e) Four eye principle (maker-checker control) for processing and processes that are commensurate with the size and of transactions scale of the Bank to mitigate Operational and other allied risks, including centralised operations and ‘segregation f) Stringent password policy of duty’ between the front and back-office. The front-office units usually act as customer touchpoints and g) Booking of transactions in core banking system mandates sales and service outlets while the back-office carries the earmarking of line/limit (fund as well as non-fund out the entire processing, accounting and settlement based) assigned to the customer of transactions in the Bank’s core banking system. The policy framework, definition and monitoring of limits is h) STP processes between core banking system and carried out by various mid-office and risk management payment interface systems for transmission of messages functions. The credit sanctioning and debt management units are also segregated and do not have any sales and i) Additional authorisation leg in payment interface systems operations responsibilities. in applicable cases Your Bank has set up various executive-level committees j) Audit logs directly extracted from systems with participation from various business and control functions that are designed to review and oversee k) Empowerment grid matters pertaining to capital, assets and liabilities, business practices and customer service, operational Your Bank also has detective controls in place: risk, information security, business continuity planning and internal risk-based supervision among others. The a) Periodic review of user IDs and its usage logs second line of defence functions set standards and lay down policies and procedures by which the business b) Post-transaction monitoring at the back-end by way functions manage risks, including compliance with of call back process (through daily log reports) by an applicable laws, compliance with regulatory guidelines, independent person, i.e., to ascertain that entries in the adherence to operational controls and relevant standards core banking system/messages in payment interface of conduct. At the ground level, your Bank has a mix of systems are based on valid/authorised transactions and customer requests 242 HDFC Bank Limited

D I RE C T OR S ’ R E P O R T Performance of Subsidiary Companies journeys which led to more than 90 per cent of customers being onboarded digitally. Your Bank has five key subsidiaries, HDB Financial Services Limited (HDBFSL), HDFC Life Insurance Company Limited In the case of Margin Trade Funding (MTF), the Average Book (HDFC Life), HDFC Asset Management Company Limited Size during the year was ₹ 4,855 crore, against the average (HDFC AMC), HDFC ERGO General Insurance Company book size of ₹ 3,190 crore in the last financial year. The Book Limited (HDFC ERGO) and HDFC Securities Limited (HSL). Size for the year ended March 31, 2024 stands at ₹ 6,033 crore. HDBFSL is a leading NBFC that caters primarily to segments not covered by the Bank while HSL is among India’s leading HSL launched its flat price broking app, HDFC SKY in retail broking firms. HDFC Life is a leading, listed, long-term September 2023. HDFC SKY has a one-price slab of ₹ 20 for life insurance solutions provider in India. HDFC ERGO offers a both intraday and delivery across segments, MTF at 12 per complete range of general insurance products. HDFC AMC is cent and zero account opening and maintenance charges for Investment Manager to HDFC Mutual Fund, one of the largest the first year. mutual funds in the country. HDFC SKY is designed to support investors and traders across Amongst the Bank’s key subsidiaries, HDFC Life Insurance experience levels to participate seamlessly in the financial Company Limited and HDFC ERGO General Insurance markets and achieve their financial goals. The app provides Company Limited prepare their financial results in accordance access to various investment and trading offerings, including with Indian GAAP and other subsidiaries do so in accordance Indian stocks, ETFs, Mutual Funds, Futures and Options, with the notified Indian Accounting Standards (‘Ind-AS’). Currencies, Commodities, IPOs and global equities on a single Fintech platform. Its users are spread across Tier-1, 2 The detailed financial performance of the companies is and 3 cities. given below. The platform is best placed to help its customers with HDFC Securities Limited (HSL) investment and stock recommendations and proprietary research to enable better and informed decision-making. Transacting Customers of HSL The Indian stock market witnessed an exceptional rally in the Financial Year 2023-24 marking multiple record highs. It was one of the best performing major markets after Japan’s Nikkei. In Financial Year 2023-24, Nifty50 rose 28.6 per cent, 12.14 lakh while the BSE Sensex was up 24.8 per cent. This remarkable performance can be attributed to robust retail participation and strong Foreign Portfolio Investor (FPI) inflows triggered by HSL’s Total Income under Indian Accounting Standards for the buoyant economic growth and healthy corporate earnings. year ended March 31, 2024 was ₹ 2,660.7 crore as against An increase in foreign investments in the Indian stock market ₹ 1,891.6 crore in the previous financial year. Net Profit was provided additional liquidity and drove up stock prices. Indian ₹ 950.9 crore for the year ended March 31, 2024 as against equities garnered ₹ 2.08 lakh crore from FIIs in the Financial ₹ 777.2 crore in the previous financial year. The company has Year 2023-24. Demat accounts surged to 15.1 crore in March a customer base of 53.82 lakh to whom it offers an exhaustive 2024 as compared to 11.4 crore in March 2023. range of investment and protection products. In the year under review, HSL had 12.14 lakh transacting customers. The Realty (up 133 per cent) and Power (up 86 per cent) indices focus on digitalisation continued. Notably, 95 per cent of its gained the most during the Financial Year 2023-24 followed by customers accessed its services digitally, against 92 per cent Capital Goods and Auto, Energy Indices. FMCG and BANKEX in the previous year. Indices while ending with gains during the year, significantly underperformed compared to other indices. Broader markets In a conscious effort to rationalise the distribution network outperformed in the Financial Year 2023-24 with the Nifty with greater emphasis on digital offerings, HSL consolidated Midcap 50 up by 59.8 per cent and Nifty Smallcap 50 gaining its existing branches to end with 184 branches across 139 71.6 per cent. cities / towns at the end of the year. It created digital boarding 244 HDFC Bank Limited

DIRECTORS’ REPORT

D I RE C T OR S ’ R E P O R T HDFC ERGO issued more than 1.1 crore policies in FY 2023- Other Statutory Disclosures 24, of which ~90 per cent were issued digitally. HDFC ERGO Number of Meetings of the Board, attendance, has enabled multilingual support across digital platforms to meetings and constitution of various Committees service the customers in their preferred language. For example, the AI-enabled WhatsApp bot ‘MyRA’ currently offers services Fourteen (14) meetings of the Board were held during the in 12 languages. AI-enabled processes have led to prompt FY 2023-24. The details of Board meetings held during the assessment and detection of external damages to vehicles with year, attendance of Directors at the meetings and constitution the estimation of repair/replace of parts. It has also launched of various Committees of the Board are included separately in AI-enabled inspection for break-in insurance, enabling the Corporate Governance Report. customers to receive the decision in about 5 minutes. In line Annual Return with its customer centric philosophy, the company’s grievance resolution TAT is lower than industry average by about 3 days. In accordance with the provisions of Companies Act, 2013 (the “Act”), the Annual Return of HDFC Bank Limited In FY24, HDFC ERGO introduced “here” app. The app is a (“Bank” or “HDFC Bank”) in the prescribed Form MGT-7 for one-of-a-kind ecosystem which helps customers and non- FY 2023-24 is available on the website of the Bank at https:// customers of the Company to take informed decisions www.hdfcbank.com/personal/about-us/investor-relations/ about their everyday needs such as mobility, healthcare, annual-report. travelamoungst others. It was launched in May 2023 and has Requirement for maintenance of cost records been well received by the users, with over 50 lakh downloads. The cost records as specified by the Central Government under Recently, HDFC ERGO has also partnered with Google Cloud Section 148(1) of the Act, are not required to be maintained by to establish a Center of Excellence for Generative AI, aiming to the Bank. offer hyper-personalised customer experiences and innovative Details in respect of frauds reported by auditors insurance solutions. under section 143 (12) HDFC ERGO continues to be future-ready by innovating and Pursuant to Section 143(12) of the Act and circular issued by focusing on new-age technologies like AI, VR, Robotics to National Financial Reporting Authority circular dated June continue to provide superior customer experience. 23, 2023, there were 3 instances of fraud committed during FY 2023-24, by the officers or employees of the Bank and ESG reported by the Statutory Auditors to the Audit Committee of the Board. Details of the frauds are as under: HDFC ERGO believes in building a sustainable ecosystem to ensure it can continue providing value to its customers and society at large. It has developed an ESG policy and framework, and has been undertaking a number of initiatives across Environmental and Social aspects and further strengthening its Governance related processes. As an example, diversity, equity and inclusion (DEI) is a key part of the company’s culture and embedded in various processes. The share of women in overall workforce has improved from 19 per cent in FY22 to 25 per cent in FY24 248 HDFC Bank Limited

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Sr. Nature of the fraud with Approximate Remedial actions taken No. description amount involved 1 Misappropriation & Criminal ₹ 616.32 1) Bank had investigated the case which had revealed that the Bank’s process of Breach of Trust CDM was Lakhs dual custody was not followed by the staff and the Cash Deposit Machine (“CDM”) operated singly, and cash was operated under single custody by Branch Staff and cash evacuated from removed from machine was not machine was not deposited at branch, instead, pilfered by Branch Staff. However, deposited at branch; instead, with adherence of Bank process by the branch / other staff the fraud could have pilfered by teller authoriser. been averted / detected at an early stage. 2) Bank had taken necessary disciplinary action against the involved staff by terminating his services as well as other staff towards the identified lapses. Further, the said branch staff was arrested by the police authorities and is in judicial custody. Post completion of the internal investigation, to avoid such incident following were the enhancements:-a) Tracking institutionalised to review Cash Recycler Machines (CRM) with high cash balances. Terminals with system balances beyond a threshold are being reviewed. b) Branches without system entry for cash evacuation from CRM are identified centrally & highlighted along with ageing since the last entry posting. c) Branch Managers periodic checks includes whether CDM is held and managed in Dual Custody, and Branch staff is aware of the process with regards to End of Day (“EOD”) of the CDM machine. d) Cash extracted from CDM in dual custody and CDM general ledger (“GL”) is nullified by depositing the Cash extracted from the machine. e) Cash is tallied with counter slips generated from the machine (including retraction slips) and necessary shortage / excess booked in case of any physical discrepancy on advice of the Automated Teller Machine (“ATM”) monitoring team. 2 Misappropriation & Criminal ₹ 305.05 Update on recommendations / remedial action made in the inquiry report. Breach of Trust Lakhs a) Disciplinary action specific to HDFC Bank & insurance partner staffs stands Staff had misappropriated funds executed. of multiple customers and had used these for online gaming/ b) Matter was reported to RBI on November 8, 2023. Insurance claim has been betting and lost initiated. Insurance company has appointed surveyor for the case. Surveyor had asked for certain details/documents which were provided by the bank. Bank is currently following up with insurance company for status. c) Amount in question was refunded to customers. d) Towards the breach of service level agreement identified for courier agency—M/s Agarwal Enterprises (Trackon Couriers Pvt. Ltd), show cause notice was issued to the courier company in consultation with legal. Response received against specified show cause notice was reviewed & Service Level Agreement / services of courier company were discontinued. e) Customer is in ‘no debit’ status. Since matter is Sub Judice, said account cannot be weeded out till final court order is received. f) BOTC asserted that Loan Against Trust Receipt alerts are raised based on the threshold limits for a single transaction (₹ 20 Lakhs & above) & risk profile of the customer. In highlighted account, customer was flagged as low risk & there was only one transaction of ₹ 20 Lakhs for which alert was triggered to branch for further review / enhanced due diligence. g) The Customer has changed his online banking credentials. Aside, branch has advised all highlighted customers to change their login credentials as a precautionary measure. h) Further, the Customer was guided and advised to get all remaining cheques stopped. However, customer has confirmed custody of remaining cheques & had utilized few cheques post this incident. Customer has reportedly issued cheque/s to some third party to clear some of his obligations & will apply for a new cheque book once he is back from abroad. Customer has been suitably informed by the branch on this aspect. i) Further, 16 specified transactions has been confirmed to be bonafied by respective branches. No anomalies noted. Integrated Annual Report 2023-24 249

D I RE C T OR S ’ R E P O R T Sr. Nature of the fraud with Approximate Remedial actions taken No. description amount involved 3 Cheating & Forgery ₹ 2971.86 Corrective Measures : Syndicate Fraud perpetrated Lakhs 1) Any change in the loan amount beyond ₹ 1 Lakh mandatorily requires Regional by borrowers in connivance Credit manager (“RCM”) approval. with others by creating fake 2) ₹ 10 Lakhs cap has been placed for personal loans being extended to any employment employee of manpower companies. 3) Customer Profile Validation (“CPV”) agents have now been mandated to meet the borrower at residence or office for cases where loan amount applied is more than ₹ 25 Lakhs. 4) Quarterly bureau checks of all employees in underwriting unit is being conducted by Risk team to derive their financial discipline. 5) Credit control unit (within underwriting) is being setup to identify the outliers and analyse the trends. The first set of observations has been received and being worked upon. Directors’ Responsibility Statement Compliance with Secretarial Standards Pursuant to Section 134 of the Act, the Board of Directors The Bank has complied with Secretarial Standards on Meetings hereby confirm that: of the Board of Directors (SS-1) and General Meetings (SS-2) issued by the Institute of Company Secretaries of India. • In the preparation of the annual accounts, the applicable accounting standards have been followed along with Statutory Auditors proper explanation relating to material departures. th The Members of the Bank at the 27 Annual General Meeting • We have selected such accounting policies and applied (“AGM”) had approved the appointment of M/s. M.M. Nissim them consistently and made judgments and estimates & Co. LLP, Chartered Accountants (ICAI Firm Registration No. that are reasonable and prudent so as to give a true and 107122W/W100672) [“MMN”] as the joint statutory auditor(s) fair view of the state of affairs of the Bank as on March of the Bank from FY 2021-22 till (and including) FY 2023-24. 31, 2024 and of the profit of the Bank for the year ended Further, the Members of the Bank at the 28th AGM held on on that date. July 16, 2022 had approved the appointment of M/s. Price Waterhouse LLP, Chartered Accountants (ICAI Firm Registration • We have taken proper and sufficient care for the No. 301112E/E300264) [“PW”], as the joint statutory auditor(s) maintenance of adequate accounting records in of the Bank for a period of 3 (three) years from FY 2022-23 till accordance with the provisions of the Act, for safeguarding (and including) FY 2024-25. the assets of the Bank and for preventing and detecting fraud and other irregularities. In view of the completion of term of MMN, the Board of Directors based on the recommendation of the Audit Committee has • We have prepared the annual accounts on a going recommended the appointment of M/s. Batliboi & Purohit, concern basis. Chartered Accountants (ICAI Firm Registration No. 101048W) • We have laid down internal financial controls to be followed [“B&P”] to act as Joint Statutory Auditors of the Bank in relation by the Bank and have ensured that such internal financial to the FY 2024-25, 2025-26 and 2026-27, subject to approval controls were adequate and operating effectively. of the shareholders at the ensuing AGM and Reserve Bank of India (“RBI”) each year. • We have devised proper systems to ensure compliance with the provisions of all applicable laws and that such Further, RBI vide its letter dated May 30, 2024 has approved systems were adequate and were operating effectively. the appointment of B&P to act as Joint Statutory Auditors of the Bank along with PW for FY 2024-25. The resolution in this regard is being proposed at the ensuing AGM for the approval of the Shareholders. 250 HDFC Bank Limited

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements During the year ended March 31, 2024, the fees paid to the Investments Limited and erstwhile HDFC Holdings Limited, Joint Statutory Auditor(s) and their respective network firms on each a subsidiary of erstwhile Housing Development aggregated basis are as follows: Finance Corporation Limited (“e-HDFC Limited”), with and (₹ In crores) into e-HDFC Limited, and (ii) e-HDFC Limited with and into HDFC Bank (the “Amalgamation”). Pursuant to the receipt Fees (excluding taxes)* HDFC Bank to Subsidiaries of of requisite approvals from Stock Exchanges, Securities and joint statutory HDFC Bank to joint auditor(s) statutory auditor(s) Exchange Board of India, Competition Commission of India, and its network firms Reserve Bank of India, National Company Law Tribunal and Statutory Audit 9.00 1.05 all other regulatory / statutory authorities, the Amalgamation Certification & other audit / 6.82 0.05 attestation services became effective from July 1, 2023 upon filing INC 28 with the Non-audit services — Registrar of Companies, Mumbai. Outlays 0.40 0.05 Total 16.22 1.15 Consequently, on July 14, 2023, the Bank allotted *No fees were paid to network firms of joint statutory auditor(s) by HDFC 3,11,03,96,492 equity shares of Re. 1 each to the shareholders Bank. of e-HDFC Limited in the ratio of 42:25 i.e. 42 equity shares of HDFC Bank (each having a face value of Re. 1) credited as Corporate Social Responsibility fully paid for every 25 equity shares of e-HDFC Limited (each The composition of Corporate Social Responsibility & having a face value of Rs. 2). Also, non-convertible debentures Environment, Social and Governance (“CSR & ESG”) Committee, and commercial papers issued and allotted by e-HDFC Limited brief outline of the CSR policy of the Bank and the initiatives were transferred in the name of the Bank. The Bank has done undertaken by the Bank on CSR activities during the year are necessary corporate actions to give effect to above allotment / set out in Annexure 2 to this report in the format prescribed transfer of securities. Further, the warrants issued and allotted in the Companies (Corporate Social Responsibility Policy) by e-HDFC Limited were matured on August 10, 2023 and out Rules, 2014. This Policy is available on the Bank’s website at of total 1,47,57,600 warrants of e-HDFC Limited, 147,47,400 https://v.hdfcbank.com/csr/our-commitment.html. warrants were converted into 2,47,75,632 equity shares of Re. 1 each of the Bank, which were allotted and listed on The Bank’s Environmental Social & Governance (ESG) the Stock Exchanges. Whereas the balance 10,200 warrants Policy Framework is available at https://www.hdfcbank.com/ representing 17,136 equity shares were cancelled / lapsed. content/api/contentstream-id/723fb80a-2dde-42a3-9793-7ae1be57c87f/f0ac1d94-7b3f-4b7a-ad10-d84cd154eaed In case of shareholders / warrant holder who were eligible for fractional entitlement, the securities were consolidated by a Particulars of Contracts or Arrangements with trust managed by Axis Trustee Services Limited, which was Related Parties nominated by Board of Directors of the Bank. On October 9, 2023, the trust sold the consolidated securities in the market Particulars of contracts or arrangements with related parties and the proceeds were distributed after deducting applicable referred to in Section 188 (1) of the Act, as prescribed in Form cost and taxes to the eligible holders of such securities in the AOC-2 under Rule 8 (2) of the Companies (Accounts) Rules, proportion of their entitlement ratio. 2014 is enclosed as Annexure 3 to this report. There were no material developments / changes / commitments Particulars of Loans, Guarantees or Investments affecting the financial position of the Bank which have occurred Pursuant to applicable provisions of Section 186 of the Act, the after March 31, 2024 till the date of this report. particulars of investments made by the Bank are disclosed in note no. 8 of Schedule 18 of the Financial Statements as per Financial Statements of Subsidiaries and Associates the applicable provisions of the Banking Regulation Act, 1949. In terms of Section 134 of the Act read with Rule 8 (1) of the Companies (Accounts) Rules, 2014 the performance and Material Development financial position of the Bank’s subsidiaries and associates Scheme of Amalgamation are enclosed as Annexure 4 to this report. The Board of Directors of the Bank at its meeting held on April The Board of Directors of the Bank at its meeting held on April 04, 2022, had approved a composite scheme of amalgamation 04, 2022, had approved a composite scheme of amalgamation (the “Scheme”) for the amalgamation of: (i) erstwhile HDFC Integrated Annual Report 2023-24 251

D I RE C T OR S ’ R E P O R T (the “Scheme”) for the amalgamation of: (i) erstwhile HDFC sold 90.01% equity stake of HDFC Credila to the Acquirers and Investments Limited and erstwhile HDFC Holdings Limited, consequently HDFC Credila ceased to be the subsidiary of the each a subsidiary of erstwhile Housing Development Finance Bank. As on March 31, 2024, HDFC Bank holds aggregating Corporation Limited (“e-HDFC Limited”), with and into e-HDFC to 9.99% of total issued and paid-up share capital of HDFC Limited, and (ii) e-HDFC Limited with and into the Bank (the Credila, which is in compliance with the conditions as stipulated “Amalgamation”), which received all the required approvals and by the RBI vide its letter dated April 20, 2023 read with the letter became effective from July 1, 2023. dated June 27, 2023. Pursuant to the amalgamation, e-HDFC Limited was dissolved 2In furtherance of the RBI direction, the Bank has decided to without being wound-up and consequently, the Bank has undertake the sale of its 100% stake held in HDFC Education no promoter. and Development Services Private Limited (the “Proposed Transaction”) using the Swiss challenge method. The Bank Pursuant to the amalgamation becoming effective from July had on March 30, 2024, entered into a binding term sheet 1, 2023, the following entities have also became subsidiaries with an interested party and the offer contained in such term / step-down subsidiaries of the Bank, in addition to HDB sheet shall serve as the anchor / base bid to seek counter Financial Services Limited and HDFC Securities Limited: offers from other parties interested in participating in the aforesaid Swiss challenge process. The Bank shall finalise Sr. Name Relationship No the purchaser on the basis of the completion of the Swiss 1. Griha Investments (Mauritius) Direct Subsidiary challenge process, subsequent to which such purchaser and 2. Griha Pte Limited (Singapore) Direct Subsidiary the Bank will enter into definitive agreement for the purposes 3. HDFC Asset Management Company Direct Subsidiary of the Proposed Transaction. Limited 4. HDFC Credila Financial Services Limited Direct Subsidiary Apart from abovementioned companies, no other entities (Ceased to be a Subsidiary w.e.f. March became or ceased to be the Bank’s subsidiaries, associates 19, 2024)1 or joint ventures during the year 2023-24. 5. HDFC Capital Advisors Limited Direct Subsidiary 6. HDFC ERGO General Insurance Company Direct Subsidiary Disclosure under Foreign Exchange Management Limited Act, 1999 (“FEMA”) 7. HDFC Education and Development Direct Subsidiary Services Private Limited2 Pursuant to the Amalgamation of e-HDFC Limited with and into 8. HDFC Life Insurance Company Limited Direct Subsidiary the Bank effective July 1, 2023, subsidiaries of e-HDFC Limited 9. HDFC Sales Private Limited Direct Subsidiary has became subsidiaries of the Bank. During the period under 10. HDFC Trustee Company Limited Direct Subsidiary review, the Bank has complied with the applicable provisions 11. HDFC AMC International (IFSC) Limited Step-Down of FEMA and has obtained a certificate from M/s. M. M. Nissim (Gift City)—a wholly-owned subsidiary of Subsidiary & Co. LLP, Chartered Accountants, Statutory Auditor of the HDFC Asset Management Co. Limited Bank, to this effect. 12. HDFC International Life and Re Company Step-Down Whistle Blower Policy / Vigil Mechanism Limited (Dubai)—a wholly- owned Subsidiary subsidiary of HDFC Life Insurance Co. Limited The Bank encourages an open and transparent system of 13. HDFC Pension Management Company Step-Down working and dealing amongst its stakeholders. While the Limited—a wholly- owned subsidiary of Subsidiary Bank’s “Code of Conduct & Ethics Policy” directs employees HDFC Life Insurance Co. Limited to uphold Bank values and conduct business worldwide with 1Pursuant to the abovementioned Amalgamation and integrity and highest ethical standards, the Bank has also conditions as stipulated by the RBI, e-HDFC Limited (since adopted a “Whistle Blower Policy” (the “Policy”) to encourage amalgamated with and into HDFC Bank) and HDFC Bank and empower the employees/ stakeholders to make or report (being the successor entity of e-HDFC Limited) had executed any Protected Disclosures under the Policy, without any fear of definitive documents for sale of approximately 90% of total reprisal, retaliation, discrimination or harassment of any kind. issued and paid-up share capital of HDFC Credila Financial This Policy has also been put in place to provide a mechanism Services Limited’s (“HDFC Credila”) to (a) Kopvoorn B.V., (b) through which adequate safeguards can be provided against Moss Investments Limited, (c) Defati Investments Holding victimization of employees who avail of this mechanism. The B.V., and (d) Infinity Partners ((a),(b),(c) and (d) are hereinafter Policy would cover and will be applicable to the Protected collectively referred as “Acquirers”). Subsequently, HDFC Bank 252 HDFC Bank Limited

Statutory Reports and Overview Introduction Our Performance How We Create Value Our Strategy Responsible Business Financial Statements Disclosures related to violation/ suspected violation of the customer funds, forgery related cases, improper business Code of Conduct including (a) breach of applicable law; (b) practices, behavioural issues and corruption. fraud/criminal offence or corruption/misuse of office to obtain The Policy is available on the website of the Bank at the link personal benefit / pecuniary advantage for self or any other https://www.hdfcbank.com/personal/about-us/corporate- person; (c) leakage/suspected leakage of unpublished price governance/codes-and-policies. sensitive information which are in violation to SEBI (Prohibition of Insider Trading) Regulations, 2015 and related internal policy Statement on Declaration by Independent Directors of the Bank, i.e. Share Dealing Code of the Bank, (d) wilful data Mr. Atanu Chakraborty, Mr. M. D. Ranganath, Mr. Sandeep breach and / or unauthorized disclosure of Bank’s proprietary Parekh, Dr. (Mrs.) Sunita Maheshwari, Mrs. Lily Vadera and data including customer data. Dr. (Mr.) Harsh Kumar Bhanwala are the Independent Directors The Policy will not cover the following types of complaints on the Board of the Bank as on March 31, 2024. which if made, will not be considered Protected Disclosure Pursuant to the provisions of Section 149 of the Act, the under this Policy: Independent Directors have submitted declarations that each of (a) Matters relating to personal grievances on issues such as them meets the criteria of independence as provided in Section appraisals, compensation, promotions, rating, behavioral 149(6) of the Act, along with the Rules framed thereunder and issues / concerns of the manager(s) / supervisor(s) / other Regulation 16(1)(b) of the Securities and Exchange Board colleague(s), complaint of sexual harassment at workplace of India (Listing Obligations and Disclosure Requirements) etc. for which alternate internal redressal mechanisms in Regulations, 2015 (“LODR”). There has been no change in the the Bank are in place. circumstances affecting their status as Independent Directors of the Bank. In the opinion of the Board, the Independent (b) Matters which are pending before a court of law, tribunal, Directors possess the requisite integrity, experience, expertise other quasi- judicial bodies or any governmental authority. and proficiency required under all applicable laws and the (c) Anonymous / pseudonymous complaints will not be policies of the Bank. considered as Protected Disclosures under this Policy. Evaluation of Board of Directors All Protected Disclosures made under the Policy shall be made The performance evaluation of the Board, Committees of the to the Whistle Blower Committee through the following modes; Board and the individual members of the Board (including the (a) By letter in a closed / sealed envelope addressed to the Chairman) for Financial Year 2023-24, was carried out internally Whistle Blower Committee, or pursuant to the framework laid down by the Nomination and Remuneration Committee (“NRC”). A questionnaire for the (b) by submission of the same on the information portal of evaluatio