Investor Presentation

Contents

Tracking the India Growth Story Meeting Diverse Customers Needs Unique Franchise in the Indian Banking Sector Key Business Initiatives Financial Highlights Value Proposition

Tracking the India Growth Story

`. Tn
100 90

India GDP*

80 70
60 50 40

Private Consumption Strong distribution network and retail customer franchise Equally well positioned in urban and rural markets Leading player across retail loan categories

30 20
10 0

Government Large tax collector for the Government of India Significant provider of cash management services for public sector and semi government undertakings

FY 2010

FY 2011

FY 2012

Private consumption Government Investment

Investment Leading working capital banker to capital goods manufacturers Term Loans for capex and brown field expansion Project financing to strong and established players Debt syndication team in place

*Source CSO GDP at Market Prices at current prices FY Fiscal year ended March 31 ` - Rupees
2

Contents

Tracking the India Growth Story Meeting Diverse Customers Needs Unique Franchise in the Indian Banking Sector Key Business Initiatives

Financial Highlights
Value Proposition

Wide Range of Products and Customer Segments

Loan Products: Auto Loans Retail Business Banking Personal Loans Credit Cards 2-Wheeler Loans Commercial Vehicles Finance Construction Equipment Finance Home Loans / Mortgages Loans against Securities Tractor and Agri loans Education Loans Gold Loans Commercial Banking: Deposit Products: Savings Accounts Current Accounts Fixed / Recurring Deposits Corporate Salary Accounts Other Products / Services: Depository Accounts Mutual Fund Sales Private Banking Insurance Sales (Life, General) NRI Services Bill Payment Services POS Terminals Debit Cards Gold Sales Foreign Exchange Services Broking (HDFC Securities Ltd)

Retail Banking

Transactional Banking: Cash Management Custodial Services Clearing Bank Services Correspondent Banking Tax Collections Banker to Public Issues

Key Segments: Large Corporate Emerging Corporates Financial Institutions Government / PSUs Supply Chain (Suppliers and dealers) Agriculture Commodities

Wholesale Banking

Working Capital Term Loans Bill Collection Forex & Derivatives Wholesale Deposits Letters of Credit Guarantees

Products / Segments

Other Functions: Asset Liability Management Statutory Reserve Management

Treasury

Foreign Exchange Debt Securities Derivatives Equities

Complete Suite of Products to Meet Diverse Customers Needs

Business Mix
Total Deposits
`. Bn 3,000 `. Bn 2,500

Gross Advances
`. Bn 100

Profit Before Tax

1,500

1,250

50

0 2010 2011 2012

0 2010 2011 2012

0 2010 2011 2012

Retail

Wholesale

Retail

Wholesale

Retail

Wholesale

Customer segments - main drivers of net revenues Well balanced loan mix between wholesale and retail segments

Higher retail revenues partly offset by higher operating and credit costs
Equally well positioned to grow both segments

Indian GAAP figures. Fiscal Year ended 31 st March; ` - Rupees Gross advances and Profit Before Taxes classified as per RBI guidelines for segmental reporting (Basel II). Other Banking Operations Segment (which includes Credit Cards, Third Party Product sales etc.) has been added to the Retail Segment 5

Contents

Tracking the India Growth Story Meeting Diverse Customers Needs Unique Franchise in the Indian Banking Sector Key Business Initiatives

Financial Highlights
Value Proposition

Strong National Network

Mar 09 Mar 10 Mar 11 Mar 12

Cities

528

779

996

1399

Branches ATMs

1412

1,725

1,986

2,544 8,913

3295 classification 4,232 5,471 Branch

Mar '09
Semi Urban 22% Rural 8% Metro 36% Urban 27% Metro 28%

Mar '12
Semi Urban 36% Rural 9%

Urban 34%

All branches linked online, real time

Anytime, Anywhere, Anyhow banking

75% branches outside the top 9 cities Customer base of 26 million

High Quality Deposit Franchise

Total Deposits
`. Bn 3000

Core CASA Ratio

Average Saving Balance per Account

`.

52%

50,000

1500

26%

25,000

0 2010 2011 2012

0% 2010 2011 2012

0 2010 2011 2012

Time

Savings

Current

Healthy proportion of CASA (current & savings) deposits Floats from multiple transactional banking franchises Continued growth in new customer acquisitions Provides customer base for ongoing cross-sell through branches Quality growth rather than mere numbers

Indian GAAP figures. Fiscal year ended 31st March Core CASA ratio based on daily average balances for the year ` - Rupees 8

Low Funding Costs Healthy Margins

Cost of Deposits
7.00% 5.00%

Net Interest Margin

5.72%
4.35% 4.25%

4.22%

4.66%
3.50%

4.30%
2.50%

0.00% 2010 2011 2012

0.00% 2010 2011 2012

Amongst the lowest deposit costs in the industry Healthy margins relatively stable over rising & declining interest rates Average yields supported by higher proportion & product mix of retail loans

Indian GAAP figures. Fiscal year ended 31st March

Strong Non-Funded Revenues

`. Mn 56,000

Multiple sources of fees & commissions:

P/L on Investments* 27,000 FX & Derivatives Fees & Commission

-2,000

2010

2011

2012

Banking charges (Retail & Wholesale) Retail Asset Fees Credit card Fees Third party product sales Cash management Trade Finance Depositary charges Bullion sales Custody

Other Income (non-funded revenues) at 30% of Net Revenues in FY 2012 Composition of Other Income in FY 2012: Fees and commissions 82%, FX and Derivatives Revenues 22%, Loss on sale of Investments (3%)

Indian GAAP figures. Fiscal year ended 31 st March; FY - Fiscal Year ended 31st March. * Profit / (loss) on sale and revaluation (mark to market) of the Government Bond portfolio etc.& includes miscellaneous income ` - Rupees 10

Leveraging Technology
Multiple Delivery Channels
2001
Branches 43% Phone Banking 14% Internet 2% Mobile 1%

Greater Choice and Convenience for Our Retail Customers

2012 Internet
Phone Banking 12% 38%

ATMs 40%

Mobile 2% Branches 18% ATMs 30%

% Customer Initiated Transactions by Channel

Regionalized Processing Units

Derive Economies of Scale

Electronic Straight Through Processing

Reduce Transaction Costs and Error Rates

Data Warehousing, CRM, Analytics

Improve Sales & Credit Efficiencies, Cross-sell

Innovative Technology Application

Provide New or Superior Products

The charts above cover only transactions initiated by our own customers and which could have been transacted at the Banks br anches. Transactions such as (a) SMS alerts sent to customers, (b) point of sale (POS) transactions, and (c) transactions by holders of other banks cardholders have therefore been excluded. 11

Healthy Asset Quality

NPA% to Advances
`. Bn
2% 28

Loan Loss Provisions

1.43% 1.05%
1%

1.02%
14

0.31%
0%

0.19%

0.18%
0

2010

2011

2012

2010

2011

2012

Gross NPA %

Net NPA %

Gross NPAs

Specific Provision

General Provision

Amongst the best portfolio quality (wholesale & retail) in the industry Strong credit culture, policies, processes Specific provision cover (excluding write-offs, technical or otherwise) at 82% of NPAs, total provision coverage of over 100%

Restructured loans formed 0.4% of the Bank's gross advances as on March 31, 2012

Indian GAAP figures. Fiscal year ended 31 st March. Net Non Performing Assets (NPA) = Gross NPA less specific loan loss provisions ` - Rupees 12

Consistent Financial Performance

`. Mn
52,000

Net Profit

26,000

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

ROA
`.
2% 1.77%

EPS

1.53% 1%

1.58%

25

22.1 17.0 13.5

13

0% 2010 2011 2012

2010

2011

2012

Indian GAAP figures. Fiscal year ended 31st March * 10 year Compounded Annual Growth Rate EPS for the year 2010 & 2011 has been recomputed to give effect of the share split from ` 10 to ` 2 13 1

Contents

Tracking the India Growth Story Meeting Diverse Customers Needs Unique Franchise in the Indian Banking Sector Key Business Initiatives

Financial Highlights
Value Proposition

14

Accessing Multiple Segments

`. Bn 1,000
Others CV / CE Business Banking FIG

Wholesale Advances

Leveraging relationships with large & emerging corporates for multiple revenue streams Focus on house banking

500
Emerging Corporate Corporate

Balanced mix between working capital financing, term loans and transactional banking
Well diversified loan portfolio across major industry segments

0 2010 2011 2012

Dealers Vendors Corporate Distributors OEM Customers Leading provider of electronic banking services for supply chain management (SCM) Structured cash management-cum-vendor/distributor finance

Indian GAAP figures. Fiscal year ended 31st March; Total wholesale advances are as per the RBI guidelines for segmental reporting (Basel II). Others includes Capital markets and commodity finance, and other consumer loans over `. 50 million. FIG Financial Institutions and Government group, CV/CE Large ticket commercial vehicle and construction equipment loan ` - Rupees 15 1

Focus on Transactional Banking Opportunities

`. Bn 28,000

Gross Cash Management Volumes *

Nos.

Primary Settlements Accounts (Stock Exchanges)

1,700

14,000

850

0 2010 2011 2012

0 2010 2011 2012

Clear market leader : cash settlements on stock & commodities exchanges Leading provider of cash management solutions Large corporates and SME Financial Institutions Government (including tax collections)

For the Fiscal year ended 31st March, * Gross Cash Management Volumes adjusted for collections on account of IPOs ` - Rupees 16 1

Customer Focused Treasury Products

`. Mn 12,000

FX & Derivatives Revenues

Customer Revenues Mix

FIG 4%
Others 8%

BB 6%

Corp 18% ECG 10%

6,000

0 2010 2011 2012

Retail 54%

Revenues Largely customer driven, low reliance on trading revenue Treasury advisory services Plain vanilla FX offerings to retail and business banking segments FX and derivatives product sales to corporate and institutional customers

Indian GAAP figures. Fiscal year ended 31st March; ` - Rupees Corp Corporate, ECG Emerging Corporate Group, BB Business Banking, FIG Financial Institutions & Government Group; Others includes Capital Markets and Commodity Finance 17 1

Retail Loans Profitable Growth

`. Bn

1,200

Two Wheelers
Gold Loans

Well diversified product mix Balancing volumes and market share with margins and risk

Credit Cards

Others Home Loans Personal Loans

Commercial Vehicles

Home Loans* (Mortgage) offering origination (loan sanctions) now around ` 8 Bn per month

600

Loan losses within product pricing

parameters

Business Banking

Auto Loans

0 2010 2011 2012

Retail loans are net of loans sold and include loan assignments. Retail loans are classified as per RBI guidelines for segmental reporting (Basel II). In arrangement with HDFC Ltd., Others includes Tractor Loans, Loans to Self Help Group, Retail overdrafts, Loans against Se curities, etc Indian GAAP figures. Fiscal year ended 31st March; ` - Rupees 18 1

Cards Achieving Scale

Number of Cards
Mn 22 `.Bn 70

Credit Cards Receivables

`.Bn 500

Acquiring Thruputs

11

35

250

0 2010 2011 2012 2010 2011 2012

2010

2011

2012

Debit cards

Credit cards

Market leader in credit card (5.6 mn cards as of Mar 12) Around 70% of new credit cards issued to internal customers Loss rates at cyclical lows in FY2012, well within the range priced in Merchant acquiring over 180,000 POS terminals, 44% growth in thru-puts

Indian GAAP figures. Fiscal year ended 31 st March. ` - Rupees FY 2012 Fiscal year ended 31st March 2012 POS Point of Sale 19 1

Distribution of Third Party Products

`.Bn 1,200

Mutual Fund Sales

`.Bn

Insurance Premium

26

600

13

0 2010 2011 2012

0 2010 Life 2011 General 2012

` - Rupees

Steady performance in a challenging, volatile environment New regulation and change in product mix adversely impacted fees Relationship managers for private banking and high net worth segments Branch sales process to drive distribution of third party products

Indian GAAP figures. Fiscal year ended 31st March

20

Banking on Rural India

Banking Services for the rural eco-system through customised loan and deposit products whilst maintaining credit standards
Local Government
Loan Products Pre and Post Harvest Credit Tractor Loans Kisan Cards Small Working Capital Loan Sustainable Livelihood Banking Liability Products

Individuals

Food Processors

Self Help Groups

Regular / No frills savings accounts Term / Micro deposits

Other banking products

Intermediaries (Arhatiyas, traders)

Farmers

Life and General Insurance Payment ecosystem

21

Subsidiary Companies
HDFC Securities Limited Amongst the top retail equity brokerages in the country Over 180 branches and 1.4 million customers Revenues from brokerage as well as distribution of financial products FY 2012 - Net Profit : ` 541 million

HDB Financial Services

NBFC catering to certain customer segments not served by the Bank Inherently lower cost structure

Network size of 180 branches

FY 2012 - Loan book : ` 39,641 million, Net Profit : ` 511 million

` - Rupees

FY 2012 Fiscal year ended March 31, 2012

22

Contents

Tracking the India Growth Story Meeting Diverse Customers Needs Unique Franchise in the Indian Banking Sector Key Business Initiatives

Financial Highlights
Value Proposition

23

Key Financials
`. In million

Quarter Ended Dec 2012 Net Interest Income Fees & Commissions FX & Derivatives Profit / (loss) on Investments* Net Revenues Operating Costs Provisions & Contingencies Tax Profit After Tax
Indian GAAP figures (` Mn) , ` - Rupees;

Quarter Ended Dec 2011 31,160 11,276 3,656

Change

Nine Months Ended Dec 12 110,146 37,544 8,087

Nine Months Ended Dec 11 89,084 30,382 8,137

Change

Year Ended Mar 2012 122,968 42,755 11,388

37,988 14,019 2,580

21.9% 24.3% -29.4%

23.6% 23.6% -0.6%

1,390
55,977 25,741 3,072 8,573 18,591

(732)
45,360 21,580 3,292 6,191 14,297 23.4% 19.3% -6.7% 38.5% 30.0%

1,104
156,881 75,123 10,874 22,520 48,364

(1,001)
126,602 61,230 11,389 16,843 37,140 23.9% 22.7% -4.5% 33.7% 30.2%

(1,706)
175,405 85,901 14,372 23,461 51,671

*On sale and revaluation (mark to market) of investments & includes miscellaneous income

24

Financial Highlights - Quarter ended December 2012

Net profit up by 30.0% to ` 18.6 Bn Gross advances increased by 24.2% to ` 2,432 Bn

Deposits up by 22.2% to ` 2,841 Bn

CASA ratio at 45.4% Net Interest Margin at 4.1% Core Cost-to-income ratio at 47.1% Gross NPA / gross advances at 1.0% Net NPA / net advances at 0.2% Capital adequacy ratio (CAR) - total 17.0% of which tier I at 10.9%

Indian GAAP figures (Bn =Billion); ` - Rupees Net NPA = Gross NPA less specific loan loss provisions Comparisons are with respect to corresponding figures for the quarter ended December 31, 2011 25

Contents

Tracking the India Growth Story Meeting Diverse Customers Needs Unique Franchise in the Indian Banking Sector Key Business Initiatives

Financial Highlights
Value Proposition

26

Value Proposition Healthy Growth, Low Risk

Growing economy / banking industry, Gaining market share Healthy balance sheet and revenue growth Disciplined margin and capital management with a focus on ROA/ROE Nationwide network, with expanding semi urban and rural footprint Wide Product range and multiple customer segment Branch Sales Process, Data Mining & CRM, geared for Cross sell Leveraging organic and inorganic growth opportunities

Leading (Top 3) player across multiple products

Strong Risk management, focus on asset quality

Proven ability to generate Shareholder Value

27

Certain statements are included in this release which contain words or phrases, such as will, aim, believe, expect, will continue, anticipate, estimate, intend, plan, future, objective, project, should, and similar expressions or variations of these expressions, that are forward-looking statements. Actual results may differ materially from those suggested by the forward-looking statements due to certain risks or uncertainties associated with our expectations with respect to, but not limited to, our ability to implement our strategy successfully, the market acceptance of and demand for various banking services, future levels of our non-performing loans, our growth and expansion, the adequacy of our allowance for credit and investment losses, technological changes, volatility in investment income, our ability to market new products, cash flow projections, the outcome of any legal, tax or regulatory proceedings in India and in other jurisdictions we are or become a party to, the future impact of new accounting standards, our ability to pay dividends, the impact of changes in banking regulations and other regulatory changes in India and other jurisdictions on us, our ability to roll over our shortterm funding sources and our exposure to market and operational risks. By their nature, certain of the market risk disclosures are only estimates and could be materially different from what may actually occur in the future. As a result, actual future gains, losses or impact on net income could materially differ from those that have been estimated. Our forward looking statements speak only as of the date on which they are made and we do not undertake any obligation, and we do not intend, to update or revise any forward looking statements to reflect events or circumstances after the date in the statement, even if our expectations or any related events or circumstances change. In addition, other factors that could cause actual results to differ materially from those estimated by the forward-looking statements contained in this document include, but are not limited to: general economic and political conditions, instability or uncertainty in India and other countries which have an impact on our business activities or investments caused by any factor including the global financial crisis and problems in the Eurozone countries, terrorist attacks in India, the United States or elsewhere, anti-terrorist or other attacks by the United States, a United States-led coalition or any other country, tensions between India and Pakistan related to the Kashmir region, military armament or social unrest in any part of India, the monetary and interest rate policies of the government of India, natural calamities, inflation, deflation, unanticipated turbulence in interest rates, foreign exchange rates, equity prices or other rates or prices, the performance of the financial markets in India and globally, changes in Indian and foreign laws and regulations, including tax, accounting and banking regulations, changes in competition and the pricing environment in India, and regional or general changes in asset valuations.