Investor Presentation

Contents

Meeting Diverse Customers’ Needs

Unique Franchise in the Indian Banking Sector
Key Business Initiatives
Merger Update
Financial Highlights
Value Proposition

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 Wide Range of Products and Customer Segments
Loan Products: Deposit Products: Other Products / Services:

Auto Loans Savings Accounts Depository Accounts

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

Commercial Banking: Transactional Banking: Key Segments:

Working Capital Cash Management Large Corporate

Wholesale Term Loans Custodial Services Emerging Corporates
Bill Collection Clearing Bank Services Financial Institutions
Banking Forex & Derivatives Correspondent Banking Government / PSUs
Wholesale Deposits Tax Collections Supply Chain
Letters of Credit Banker to Public Issues Microfinance Institutions / SHGs
Guarantees Agriculture
Commodities

Products / Segments Other Functions:

Treasury Foreign Exchange

Debt Securities
Asset Liability Management
Statutory Reserve Management
Derivatives
Equities

Complete Suite of Products to Meet Diverse Customers’ Needs

2
 Business Mix

Total Deposits Gross Advances Profit Before Tax

Rs. Bn Rs. Bn Rs. Bn

1,700 1,300 44

850 650 22

0 0 0
2008 2009 2010 2008 2009 2010 2008 2009 2010
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 31st March

Deposits and Gross Advances as per the Bank’s internal business classification. PBT figures classified as per RBI guidelines for segmental reporting.
“Other Banking Operations Segment” (which includes Credit Cards, Third Party Product sales etc.) has been added to the Retail Segment

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Meeting Diverse Customers’ Needs
Unique Franchise in the Indian Banking Sector
Key Business Initiatives
Merger Update
Financial Highlights
Value Proposition

4
Strong National Network

Mar ‘08 Mar ‘09 Mar ‘10

Cities 327 528 779
Branches 761 1,412 1,725
ATMs 1,977 3,295 4,232

All branches linked online, real time

“Anytime, Anywhere, Anyhow” banking

68% branches outside the top 9 cities

Customer base of over 19 million

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 High Quality Deposit Franchise

Total Deposits Core CASA Ratio Average Saving Balances per Account

Rs. Bn Rs.

1,700 52% 44,000

850 26% 22,000

0 0% 0
2008 2009 2010 2008 2009 2010 2008 2009 2010

Time Savings Current

• Healthy proportion of demand (savings & current) deposits

• Floats from multiple transactional banking franchises
• Increasing new customer acquisitions; 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, adjusted for floats on account of IPOs

6
 Low Funding Costs – Healthy Margins

Cost of Deposits Net Interest Margin

5%
5.9% 4.3% 4.2% 4.3%
6%
4.7% 4.7%

3%
3%

0% 0%
2008 2009 2010 2008 2009 2010

• Amongst the lowest deposit costs in the industry

• Healthy margins – 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

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 Strong Non-Funded Revenues
Rs. Mn

40,000

Multiple sources of core fees &

30,000 commissions:

P/L on Investments* Retail Asset Fees

Third party product sales
20,000 FX & Derivatives Trade Finance
Cash management
Fees & Commission
Core Banking charges (Retail & Wholesale)
10,000 Credit card Fees
Depositary charges
Custody

0
2008 2009 2010

• Other Income (non-funded revenues) at 31% of Net Revenues in FY 2010

• Key components of Other Income:
• Fees and commissions 74%,
• FX and Derivatives Revenues 17%,
• Profit on sale of Investments 9%

Indian GAAP figures. Fiscal year ended 31st March

FY - Fiscal Year ended 31st March.
* Profit / (loss) on sale and revaluation (mark to market) of investments & includes miscellaneous income
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 Leveraging Technology

Greater
Greater Choice
Choice and
and Convenience
Convenience for
for Retail
Retail
Multiple
Multiple Delivery
Delivery Channels
Channels Customers
Customers
2001 2010

% Customer Initiated Transactions by Channel

Regionalized
Regionalized Processing
Processing Units
Units Derive
Derive Economies
Economies of
of Scale
Scale

Electronic
Electronic Straight
Straight Through
Through Processing
Processing Reduce
Reduce Transaction
Transaction Costs,
Costs, Error
Error Rates
Rates

Data
Data Warehousing,
Warehousing, CRM,
CRM, Analytics
Analytics Improve
Improve Sales
Sales &
& Credit
Credit Efficiencies,
Efficiencies, Cross-
Cross-sell
Cross-sell

Innovative
Innovative Technology
Technology Application
Application Provide
Provide New
New or
or Superior
Superior Products
Products

* Excludes text alerts to customers

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 Healthy Asset Quality
NPA% to Advances Loan Loss Provisions

Rs. Bn

1.98% 24
2%
1.34% 1.43%

1% 12
0.6%
0.5%
0.3%
0% 0
2008 2009 2010 2008 2009 2010
Gross NPA % Net NPA % Specific Provisions General Provisions Gross NPAs

• Amongst the best portfolio quality (wholesale & retail) in the industry
• Strong credit culture, policies, processes
• Specific provision cover at 74.8% of NPAs, total provision coverage of over 100%
• Restructured assets formed 0.3% of the Bank's gross advances as on March 31, 2010, of
which the loans categorized as standard were 0.2%

Indian GAAP figures. Fiscal year ended 31st March. FY 2009 figures include impact of merger of Centurion Bank of Punjab;
Net NPA = Gross NPA less specific loan losses and floating provisions
General provisions = General loan loss provisions + floating provisions

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 Consistent Financial Performance
Net Profit Rs. Mn

GR* 38%
CA

ROA Rs. EPS

70 67.6
2%
1.5% 52.9
1.3% 1.3% 46.2

1% 35

0% 0
2008 2009 2010 2008 2009 2010

Indian GAAP figures. Fiscal year ended 31st March

* 10 year Compounded Annual Growth Rate

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Meeting Diverse Customers’ Needs
Unique Franchise in the Indian Banking Sector
Key Business Initiatives
Merger Update
Financial Highlights
Value Proposition

12
 Accessing Multiple Segments
Rs. Bn Wholesale Advances
• Leveraging relationships with large & emerging
600 corporates for multiple revenue streams
Others
• Focus on house banking
FIG
• Balanced mix between working capital financing,
Emerging Corporate
300 medium / long term loans and transactional
Corporate banking
• Well diversified loan portfolio across industry
0
segments
2008 2009 2010

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
Others includes Capital markets and commodity finance. FIG – Financial Institutions and Government group
Total wholesale advances are as per the Bank’s internal business classification
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 Focus on Transactional Banking Opportunities

Gross Cash Management Volumes * Primary Settlements Accounts

(Stock Exchanges)
Nos.
Rs. Bn

25,000 1300

12,500 650

0 0
2008 2009 2010 2008 2009 2010

• 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, adjusted for collections on account of IPOs

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 Customer Focused Treasury Products

FX & Derivatives Revenues Customer Revenues Mix

Rs. Mn

6,500

3,250

0
2008 2009 2010

• 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

Others includes capital markets and commodity finance, Retail includes business banking,
Corp – corporate, ECG – emerging corporate group, FIG – financial institutions & government group
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 Retail Assets – Profitable Growth

Rs. Bn

800
Two Wheelers • Well diversified product mix
Credit Cards
• Balancing volumes and market
Others
share with margins and risk
Home Loans

Personal Loans • Mortgage offering – origination

Commercial Vehicles (loan sanctions) now around
400
Business Banking
Rs.5 Bn per month
Auto Loans
• Loan losses within product
pricing parameters

0
2008 2009 2010

Indian GAAP figures. Fiscal year ended 31st March

Gross retail loans, net of loans sold and including loan assignments
Others includes Gold loans, Health Care, Tractor Loans, Micro finance, Self Help Group and retail overdrafts
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 Cards – Achieving Scale
Number of Cards Credit Cards Receivables Acquiring Thruputs

Mn Rs.Bn Rs.Bn

15
40
240
10
20
120
5

0 0 0
2008 2009 2010 2008 2009 2010 2008 2009 2010

Debit cards Credit cards

• Over 70% of new credit cards issued to internal customers

• Loss rates improved in FY2010, remained within the range priced in and lower
than industry levels
• Merchant acquiring – over 90,000 POS terminals, 22% growth in thru-puts

Indian GAAP figures. Fiscal year ended 31st March

FY 2010 – Fiscal year ended 31st March 2010

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 Distribution of Third Party Products
Mutual Fund Sales Insurance Premium
Rs.Bn Rs.Bn

900
14

450
7

0 0
2008 2009 2010 2008 2009 2010

• Steady performance in a challenging, volatile environment

• Fee growth moderated by change in product mix and new regulations
• 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

Premium collected from customers in respect of Third Party life insurance sales

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Meeting Diverse Customers’ Needs
Unique Franchise in the Indian Banking Sector
Key Business Initiatives
Merger Update
Financial Highlights
Value Proposition

19
 Merger of Centurion Bank of Punjab

BACKGROUND

• Legal processes for the merger completed effective May 2008

• Key drivers: larger distribution network, potential to improve productivity,

cross-sell

• System, people and process integration completed in less than a year

CURRENT STATUS

• Significant improvements evident in Branch productivity

• Net interest margin, cost to income ratio and NPA ratios for the combined
Bank now better than pre merger levels for HDFC Bank

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Meeting Diverse Customers’ Needs
Unique Franchise in the Indian Banking Sector
Key Business Initiatives
Merger Update
Financial Highlights
Value Proposition

21
 Key Financials

Rs. Mn

Quarter Quarter Year Year

Ended Ended Change Ended Ended Change
Jun 2010 Jun 2009 Mar 2010 Mar 2009

Net Interest Income 24,011 18,556 29.4% 83,866 74,212 13.0%

Fees & Commissions 7,457 6,493 14.9% 28,306 24,573 15.2%

FX & Derivatives 1,718 1,378 24.7% 6,232 4,404 41.5%

Profit on Investments* 224 2,565 (91.3%) 3,538 3,929 (9.9)%

Net Revenues 33,410 28,992 15.2% 121,942 107,118 13.8%

Operating Costs 15,923 13,806 15.3% 57,645 55,328 4.2%

Provisions & Contingencies 5,550 6,588 (15.8)% 21,406 18,797 13.9%

Tax 3,820 2,537 50.6% 13,404 10,543 27.1%

Profit After Tax 8,117 6,061 33.9% 29,487 22,450 31.3%

Indian GAAP figures (Rs. Mn)

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

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 Financial Highlights Quarter ended June 2010

• Net profit up by 33.9% to Rs. 8.1 Bn

• Net advances increased by 40.9% to Rs. 1,462 Bn

• Deposits up 25.6% to Rs. 1,830 Bn

• CASA deposits grew by 37.4% to Rs 900 Bn

• Net interest margin of 4.3%

• Cost-to-income ratio at 47.7%

• Gross NPA / gross advances at 1.2%

• Net NPA / net advances at 0.3%

• Capital adequacy ratio (CAR) - total 16.3% of which tier I at 12.4%

Indian GAAP figures (Bn=Billion)

Net NPA = Gross NPA less specific loan losses
Comparisons are with respect to corresponding figures in the quarter ended June 2009
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Meeting Diverse Customers’ Needs
Unique Franchise in the Indian Banking Sector
Key Business Initiatives
Merger Update
Financial Highlights
Value Proposition

24
Value Proposition – Healthy Growth, Low Risk

Wide Product range and Nationwide, well Branch Sales Process and
ongoing investments to entrenched, expanding CRM geared to improve
support growth distribution network Cross sell

Significant operating
Consistent revenue growth Leading (Top 3) player
leverage from current
in chosen segments across multiple products
expense base

Disciplined capital Leveraging organic and

Strong Risk management,
management with a focus inorganic growth
focus on asset quality
on ROE opportunities

Proven ability to generate Shareholder

Value

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Certain statements are included in this release which contain words or phrases such as “will,” “aim,” “will likely
result,” “believe,” “expect,” “will continue,” “anticipate,” “estimate,” “intend,” “plan,” “contemplate,” “seek to,”
“future,” “objective,” “goal,” “project,” “should,” “will pursue” 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, our 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 short-term 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.

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 in India and the other countries which have an impact on our business activities or investments; the
monetary and interest rate policies of the government of India; 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.

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