Goodwill arising from a business combination is not amortized but is tested for impairment. The Bank tests goodwill of each separate reporting unit by initially qualitatively assessing whether events and circumstances indicate that it is more likely than not that a reporting unit’s fair value is less than its carrying amount. If such assessment indicates fair value is not less than the carrying value, the reporting unit is deemed not to be impaired and no further analysis is required. If it is more likely than not that fair value of the reporting unit is below its carrying value, a quantitative test is then performed. During the fiscal year ended March 31, 2024, the carrying amount of goodwill increased by Rs. 1,628,148.5 million as a result of the merger of eHDFC Group with HDFC Bank. On March 19, 2024, following the sale of HDFC Credila Financial Services Limited, goodwill amounting to Rs. 73,576.1 million was derecognized. We examined the goodwill that had arisen on acquisition of erstwhile Centurion Bank of Punjab (“eCBoP”) and eHDFC for possible impairment as of March 31, 2025. There were no changes in the carrying amount of goodwill of eCBoP Rs. 74,937.9 million and of eHDFC Rs. 1,554,572.4 for the fiscal year ended March 31, 2025. No impairment charges were recorded against goodwill during the period. Accordingly, the carrying amount of goodwill was Rs.1,629,510.3 million (US$ 19,074.2million) as on March 31, 2025.

The following table represents the changes in the carrying amount of goodwill reported in the consolidated balance sheets for the year ended March 31, 2024 and March 31, 2025:

 

 

 

 

million for the year ended March 31, 2024 and March 31, 2025 respectively. These amounts are included in Expense - Amortization of intangible assets in the consolidated financial statements.