HDFC BANK HISTORY:

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to
receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in
the private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994.The
bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its
registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled
Commercial Bank in January 1995.

HDFC is India's premier housing finance company and enjoys an impeccable track record
in India as well as in international markets. Since its inception in 1977, the Corporation has
maintained a consistent and healthy growth in its operations to remain the market leader in
mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has
developed significant expertise in retail mortgage loans to different market segments and also
has a large corporate client base for its housing related credit facilities. With its experience in
the financial markets, a strong market reputation, large shareholder base and unique consumer
franchise, HDFC was ideally positioned to promote a bank in the Indian environment.

HDFC Bank began operations in 1995 with a simple mission: to be a“World Class Indian
Bank.” We realized that only a single minded focus on product quality and service excellence
would help us get there. Today, we are proud to say that we are well on our way towards that
goal.

STRONG NATIONAL NETWORK

March 2006 March 2007 March 2008

Citied 228 316 327

Branches 535 684 761

ATMs 1323 1605 1977

As of March 31, 2008, the Bank’s distribution network was at 761 Branches and 1977 ATMs
in 327 cities as against 684 branches and 1,605 ATMs in 320 cities as of March 31, 2007.
Against the regulatory approvals for new branches in hand, the Bank expects to further expand
the branch network by around 150 branches by June 30, 2008. During the year, the Bank stepped
up retail customer acquisition with deposit accounts increasing from 6.2 million to 8.7 million
and total cards issued (debit and credit cards) increasing from 7 million to 9.2 million.

Whilst credit growth in the banking system slowed down to about 22% for the year ended
2007-08, the Bank’s net advances grew by 35.1% with retail advances growing by 38.6% and
wholesale advances growing by 30%, implying a higher market share in both segments.

The transactional banking business also registered healthy growth with cash management
volumes increased by around 80% and trade services volumes by around 40% over the previous
year.

Portfolio quality as of March 31, 2008 remained healthy with gross nonperforming assets at
1.3% and net non-performing assets at 0.4% of total customer assets. The Bank’s provisioning
policies for specific loan loss provisions remained higher than regulatory requirements.
STRUCTURE OF HDFC BANK:

ORGANIZATIONAL STRUCTURE:

The Composition of the Board of Directors of the Bank is governed by the Companies Act, 1956,
the Banking Regulation Act, 1949 and the listing requirements of the Indian Stock Exchanges
where securities issued by the Bank are listed. The Board has strength of 12 Directors as on
March 31, 2008. All Directors other than Mr. Aditya Puri, Mr. Harish Engineer and Mr. Paresh
Sukthankar are non-executive directors. The Bank has five independent directors and seven non-
independent directors. The Board consists of eminent persons with considerable professional
expertise and experience in banking, finance, agriculture, small scale industries and other related
fields. None of the Directors on the Board is a member of more than 10 Committees and
Chairman of more than 5 Committees across all the companies in which he/she is a Director. All
the Directors have made necessary disclosures regarding Committee positions occupied by them
in other companies. Mr. Jagdish Capoor, Mr. Keki Mistry, Mrs. Renu Karnad, Mr. Vineet Jain,
Mr. Aditya Puri, Mr. Harish Engineer and Mr. Paresh Sukthankar are non-independent Directors
on the Board. Mr. Arvind Pande, Mr. Ashim Samanta, Mr. Gautam Divan, Mr. C. M. Vasudev
and Dr. Pandit Palande are independent directors on the Board. Mr. Keki Mistry and Mrs. Renu
Karnad represent HDFC Limited on the Board of the Bank. Mr. Vineet Jain represents Bennett,
Coleman Group on the Board of the Bank. The Bank has not entered into any materially
significant transactions during the year, which could have a potential conflict of interest between
the Bank and its promoters, directors, management and/or their relatives, etc. other than the
transactions entered into in the normal course of business. The Senior Management have made
disclosures to the Board confirming that there are no material, financial and/or commercial
transactions between them and the Bank which could have potential conflict of interest with the
Bank at large.

BOARD OF DIRECTORS
Mr. Jagdish Capoor Mr. Aditya Puri Mr. Keki M. Mistry Mr. Vineet Jain Mrs. Renu Karnad Mr.
Arvind Pande Mr. Ashim Samanta Mr. C M Vasudev Mr. Gautam Divan Dr. Pandit Palande Mr.
Paresh Sukthankar

CAPITAL STRUCTURE:
As on 30th June, 2010 the authorized share capital of the Bank is Rs. 550 crore. The paid-up
capital as on said date is Rs. 459,69,07,030/- (45,96,90,703 equity shares of Rs. 10/- each). The
HDFC Group holds 23.63 % of the Bank's equity and about 17.05 % of the equity is held by the
ADS Depository (in respect of the bank's American Depository Shares (ADS) Issue). 27.45% of
the equity is held by Foreign Institutional Investors (FIIs) and the Bank has about 4,33,078
shareholders.

The shares are listed on the Bombay Stock Exchange Limited and The National Stock Exchange
of India Limited. The Bank's American Depository Shares (ADS) are listed on the New York
Stock Exchange (NYSE) under the symbol 'HDB' and the Bank's Global Depository Receipts
(GDRs) are listed on Luxembourg Stock Exchange under ISIN No US40415F2002.
HDFC BANK PRODUCTS & SERVICE:

PERSONAL BANKING

Loan Product Deposit Product Investment &

Insurance

 Auto Loan  Saving a/c  Mutual Fund

 Loan Against Security  Current a/c  Bonds
 Loan Against Property  Fixed deposit  Knowledge
 Personal loan  Demat a/c Centre
 Credit card  Safe Deposit  Insurance
 2-wheeler loan Lockers  General and
 Commercial vehicles finance Health Insurance
 Home loans  Equity and
 Retail business banking Derivatives
 Tractor loan  Mudra Gold Bar
 Working Capital Finance
 Construction Equipment Finance
 Health Care Finance
 Education Loan
 Gold Loan

Cards Payment Services Access To Bank

 Credit Card  NetSafe  NetBanking

 Debit Card  Merchant  OneView
 Prepaid Card  Prepaid Refill  InstaAlert
--------------------------------  Billpay MobileBanking
Forex Services  Visa Billpay  ATM
--------------------------------  InstaPay  Phone Banking
 Product & Services  DirectPay  Email
 Trade Services  VisaMoney Statements
 Forex service Branch Locater Transfer  Branch Network
 RBI Guidelines
WHOLESALE BANKING

Corporate Small and Medium Financial Institutions and Trusts

Enterprises
 Funded Services  Funded Services BANKS
 Non Funded  Non Funded  Clearing Sub-Membership
Services Services  RTGS – sub membership
 Value Added  Specialized Services  Fund Transfer
Services  Value added services  ATM Tie-ups
 Internet  Internet Banking  Corporate Salary a/c
Banking  Tax Collection
Financial Institutions

Mutual Funds

Stock Brokers

Insurance Companies

Commodities Business

Trusts
NRI SERVICES

Accounts & Deposits Remittances

 Rupee Saving a/c  North America

 Rupee Current a/c  UK
 Rupee Fixed Deposits  Europe
 Foreign Currency Deposits  South East Asia
 Accounts for Returning Indians  Middle East
 Africa
 Others
Quick remit
India Link
Cheque Lockbox
Telegraphic/ Wire Transfer
Funds Transfer Cheques /DDs/TCs

Investment & Insurances Loans

 Mutual Funds  Home Loans

 Insurance  Loans Against Securities
 Private Banking  Loans Against Deposits
 Portfolio Investment Scheme  Gold Credit Card

Payment Services Access To Bank

 Net Safe  Net Banking

 Bill Pay  One View
 Insta Pay  Insta Alert
 Direct Pay  ATM
 Visa Money  Phone Banking
 Online Donation  Email Statements
 Branch Network
INTEREST RATES OF HDFC BANK:

For Deposits Below Rs.15 Lacs

Interest **Senior
Period Rate (per Citizen Rates Effective From
annum) (per annum)
7 - 14 days 3.00% 3.50% Jul 30, 2010
15 - 29 days 3.00% 3.50% Jul 30, 2010
30 - 45 days 3.75% 4.25% Jul 30, 2010
46 - 60 days 3.75% 4.25% Jul 30, 2010
61 - 90 days 4.50% 5.00% Jul 30, 2010
91 Days to less than 6
5.25% 5.75% Jul 30, 2010
months 1 day
6 months 1 day - 6 months
5.75% 6.25% Jul 30, 2010
15 days
6 months 16 days 6.25% 6.75% Sep 24, 2010
6 months 17 days - 9 months
6.00% 6.50% Sep 24, 2010
15 days
9 months 16 days 6.50% 7.00% Jul 30, 2010
9 months 17 days - 1 year 6.25% 6.75% Jul 30, 2010
February
1 year 1 day - 1 year 15 days 6.50% 7.00%
19,2010
1 year 16 days 7.00% 7.50% Jul 30, 2010
February
1 year 17 days - 2 years 6.50% 7.00%
19,2010
2 years 1 day - 2 years 15 February
7.00% 7.50%
days 19,2010
2 years 16 days 7.50% 8.00% Jul 30, 2010
February
2 years 17 days - 3 years 7.00% 7.50%
19,2010
February
3 years 1 day - 5 years 7.50% 8.00%
19,2010
February
5 years 1 day - 8 years 7.50% 8.00%
19,2010
February
8 Year 1 Day - 10 Years 7.50% 8.00%
19,2010
For Deposits of Rs.15 Lacs to less than Rs. 1 Cr

Period Interest **Senior Effective

Rate (per Citizen Rates From
annum) (per annum)
7 - 14 days 3.00.% 3.50% Jul 30, 2010
15 - 29 days 3.00.% 3.50% Jul 30, 2010
30 - 45 days 3.75% 4.25% Jul 30, 2010
46 - 60 days 3.75% 4.25% Jul 30, 2010
61 - 90 days 4.50% 5.00% Jul 30, 2010
91 Days to less than 6 months 1 5.25% 5.75% Jul 30, 2010
day
6 months 1 day - 6 months 15 5.75% 6.25% Jul 30, 2010
days
6 months 16 days 6.25% 6.75% Sep 24, 2010
6 months 17 days - 9 months 15 6.00% 6.50% Sep 24, 2010
days
9 months 16 days 6.50% 7.00% Jul 30, 2010
9 months 17 days - 1 year 6.25% 6.75% Jul 30, 2010
1 year 1 day - 1 year 15 days 6.50% 7.00% February
19,2010
1 year 16 days 7.00% 7.50% Jul 30, 2010
1 year 17 days - 2 years 6.50% 7.00% February
19,2010
2 years 1 day - 2 years 15 days 7.00% 7.50% February
19,2010
2 years 16 days 7.50% 8.00% Jul 30, 2010
2 years 17 days - 3 years 7.00% 7.50% February
19,2010
3 years 1 day - 5 years 7.50% 8.00% February
19,2010
5 years 1 day - 8 years 7.50% 8.00% February
19,2010
8 Year 1 Day - 10 Years 7.50% 8.00% February
19,2010
PRODUCT DEVELOPMENT FOR INVESTMENT:

When you bank with us, HDFC ensure your money is not just in safe hands; it also works to your
advantage. HDFC help you invest wisely through our financial and investment services. Profit
from HDFC expertise.

 Wealth Advisory Services

 Mutual Funds
 Tax Planning
 Insurance
 General Insurance
 Health Insurance
 Bonds
 Knowledge Centre
 Equities & Derivatives
 Mudra Gold Bar
 Mudra Silver Bar
 IPO Application through ASBA

DISTRIBUTION:

HDFC Bank is headquartered in Mumbai. The Bank has an network of 1,725 branches spread in
771 cities across India. All branches are linked on an online real-time basis. Customers in over
500 locations are also serviced through Telephone Banking. The Bank has a presence in all
major industrial and commercial centers across the country. Being a clearing/settlement bank to
various leading stock exchanges, the Bank has branches in the centers where the NSE/BSE have
a strong and active member base.

The Bank also has 3,898 networked ATMs across these cities. Moreover, HDFC Bank's ATM
network can be accessed by all domestic and international Visa/MasterCard, Visa
Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders.
MARKETING AND OTHER SUPPORT:

Card Support
Imagine a leading newspaper reserving sole space for you, running your ad, and mailing it
individually to each of your prospective customers. Here's an innovative marketing idea that's
sure to give maximum mileage to your product or service. Just carry your offer on the monthly
statements of India's high end credit cards “HDFC Bank.

Targeted Direct Mailers

You get a direct reach to your specific target group and you can communicate one on one with
them. You have a captive audience who'll read and re-read your message at leisure. And since
the people you are targeting are personally addressed, there's no wastage.

EMI Opportunities
Advertise your EMI offers to HDFC Bank credit card customers interested in buying now and
paying later in installments coupled with a fantastic finance offer.

Catalogue based rewards Program.

You can also widen your reach and popularize your products by participating in HDFC Bank's
Rewards Program.
SWOT ANALYSIS OF HDFC BANK:

STRENGTH WEAKNESSES

 Right strategy for the right  Some gaps in range for certain
products. sectors.
 Superior customer service  Customer service staff need
vs. competitors. training.
 Great Brand Image  Processes and systems, etc
 Products have required  Management cover
accreditations. insufficient.
 High degree of customer  Sect oral growth is
satisfaction. constrained by low
unemployment levels and
 Good place to work competition for staff

 Lower response time with

efficient and effective
service.

 Dedicated workforce
aiming at making a
long-term career in the
field.
 Opportunities Threats

 Profit margins will be good.  Legislation could impact.

 Could extend to overseas  Great risk involved

broadly.  Very high competition
 New specialist applications. prevailing in the industry.

 Could seek better customer  Vulnerable to reactive

deals.
attack by major competitors
 Fast-track career development  Lack of infrastructure in rural
opportunities on an industry- areas could constrain
wide basis. investment.

 An applied research centre to  High volume/low cost market

is intensely competitive.
create opportunities for
developing techniques to
provide added-value services.
FINANCIAL PERFORMANCE AND STRENGHTH:
PERFORMANCE
BALACE SHEET OF HDFC BANK
Particulars
CAPITAL AND LIABILITIES Sch no As on 2010 As on 2009
4,253,841
Capital 1 4,577,433
4,009,158
Equity Share Warrants
142,209,460
Reserves and Surplus 2 210,618,369
Employees’ Stock Options 54,870
29,135
(Grants) Outstanding
Depos
3 1,674,044,394 1,428,115,800
its
Borrowings 4 129,156,925 91,636,374
Other Liabilities and
5 206,159,441 162,428,229
Provisions
Total 2,224,585,697 1,832,707,732
ASSETS
Cash and Balances with
6 154,832,841 135,272,112
Reserve Bank of India
Balances with Banks and
Money at Call and Short 7 144,591,147 39,794,055
notice
Invest
8 586,076,161 588,175,488
ments
Advan
9 1,258,305,939 988,830,473
ces
Fixed 1
21,228,114 17,067,290
Assets 0
Other 1
59,551,495 63,568,314
Assets 1
Total 2,224,585,697 1,832,707,732
contingent liabilities 12
Bills for Collection
STRENGTH:
Some ratios of the company:
Current Ratio 0.04 0.04
Quick Ratio 4.89 5.23

Dividend Payout Ratio Net Profit 22.16 22.16

Dividend Payout Ratio Cash Profit 18.93 19.10
Earning Retention Ratio 77.83 77.79
Cash Earning Retention Ratio 81.07 80.87
AdjustedCash Flow Times 54.14 54.91

Earnings Per Share 44.87 52.77