1. Summary Information

		Country	India
Company Name	HDFC BANK LIMITED	Principal Name 1	Mr. C. M. Vasudev
Status	Good	Principal Name 2	Mrs. Renu Karnad
		Registration #	11 – 080618
Street Address	HDFC Bank House, Senapati Bapat Marg, Lower Parel, West, Mumbai – 400013, Maharashtra, India
Established Date	30.08.1994	SIC Code	--
Telephone#	91-22-66521000/ 24901896	Business Style 1	Corporate Banking Consisting
Fax #	91-22-24960737/ 24960696	Business Style 2	--
Homepage	http://www.hdfcbank.com	Product Name 1	Working Capital Finance
# of employees	55752 (Approximately)	Product Name 2	Trade Service
Paid up capital	Rs.4652,256,840/-	Product Name 3	Cash Management Treasury
Shareholders	Shareholding of Promoter and Promoter Group - 27.99%, Public Shareholding- 72.01%	Banking	Reserve Bank of India
Public Limited Corp.	Yes	Business Period	18 years
IPO	Yes	International Ins.	--
Public Enterprise	Yes	Rating	Aa (75)
Related Company
Relation	Country	Company Name	CEO
Subsidiary	--	HDFC Securities Limited	--
Note	--

2. Summary Financial Statement

Balance Sheet as of	31.03.2011		(Unit: Indian Rs.)
Assets		Liabilities
Cash and Balances with Reserve Bank of India	251,008,158,000	Capital	4652,257,000
Balance with Banks and Money at call and Short Notice	45,680,191,000	Reserve and Surplus	249,111,291,000
Investments	709,293,656,000	Employees Stock Option Outstanding (Net)	29,135,000
Advances	1599,826,654,000	Deposits	2,085,864,054,000
Fixed Assets	21,706,480,000	Borrowings	143,940,610,000
Other Assets	146,010,773,000	Other Liabilities and Provision	289,928,565,000
Total Assets	2,773,525,912,000	Total Liabilities	2,773,525,912,000
Total Assets (Previous Year)	2,2224,585,697,000
P/L Statement as of	31.03.2011		(Unit: Indian Rs.)
Sales	199282,122,000	Net Profit	39264,009,000
Sales(Previous yr)	161729,000,000	Net Profit(Prev.yr)	29487,009,000

MIRA INFORM REPORT

Report Date :

03.05.2012

IDENTIFICATION DETAILS

Name :	HDFC BANK LIMITED
Registered Office :	HDFC Bank House, Senapati Bapat Marg, Lower Parel, West, Mumbai – 400013, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	30.08.1994
Com. Reg. No.:	11 – 080618
Capital Investment / Paid-up Capital :	Rs.4652.257 millions
CIN No.: [Company Identification No.]	L65920MH1994PLC080618
TAN No.: [Tax Deduction & Collection Account No.]	MUMH03189E / MUMH08037B/ MUMH07347Es
PAN No.: [Permanent Account No.]	AAACH2702H
Legal Form :	It is a Public Limited Liability Bank. The banks shares are listed on the Stock Exchanges.
Line of Business :	Corporate Banking Consisting of Working Capital Finance, Trade Service and Cash Management Treasury.
No. of Employees :	55752 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Aa (75)

RATING		STATUS	PROPOSED CREDIT LINE
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large

Maximum Credit Limit :	Large
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established and a highly successful commercial bank in the private sector. Financial position of the bank is good. Fundamentals are strong and healthy. Trade relations are fair. Payment are regular and as per commitment. The bank can be considered for any normal business dealings under usual trade terms and conditions.

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office :	HDFC Bank House, Senapati Bapat Marg, Lower Parel, Mumbai – 400013, Maharashtra, India
Tel. No.:	91-22-66521000/ 24901896
Fax No.:	91-22-24960737/ 24960696
E-Mail :	sanjay.dongre@hdfcbank.com gambhir.singh1@hdfcbank.com
Website :	http://www.hdfcbank.com
Branches :	WESTERN ZONE Mumbai Patalganga Pune Goa Ahmedabad Dahej Vadodara NORTH ZONE New Delhi Chandigarh Ludiana Jalandhar Gurgaon Indore SOUTH ZONE Hyderabad Secunderabad  Vishakhapatnam Cochin Chennai  Coimbatore Bangalore EAST ZONE Calcutta

DIRECTORS

(AS ON 31.03.2011)

Name :	Mr. C. M. Vasudev
Designation :	Chairman
Name :	Mrs. Renu Karnad (upto 16.07.2010 and re-appointed on 27.01.2011)
Designation :	Director
Name :	Mr. Ashim Samanta
Designation :	Director
Name :	Dr. Pandit Palande
Designation :	Director
Name :	Partho Datta
Designation :	Director
Name :	Mr. Bobby Parikh
Designation :	Director
Name :	Mr. Anami N. Roy
Designation :	Director
Name :	Mr. Jagdish Capoor (upto 05.07.2010)
Designation :	Chairman
Name :	Mr. Gautam Divan (upto 21.07.2010)
Designation :	Director
Name :	Mr. Arvind Pande (upto 14.01.2011)
Designation :	Director
Name :	Mr. Keki Mistry (upto 26.03.2011)
Designation :	Director
Name :	Mr. Aditya Puri
Designation :	Managing Director
Name :	Mr. Harish Engineer
Designation :	Executive Director
Name :	Mr. Paresh Sukthankar
Designation :	Executive Director

KEY EXECUTIVES

Name :	Mr. Sanjay Dongre
Designation :	Executive Vice President (Legal) and Company Secretary
Senior Management Team:	Mr. A Parthasathy Mr. A Rahan Mr. Abhay Aima Mr. Anil Jaggia Mr. Bharat Shah Mr. Bhavesh Zaveri Mr. G. Subramanian Mr. Jimmy Tata Mr. Kaizad Bharucha Mr. Navin Puri Mr. Pralay Mondal Mr. Rahul Bhagat Mr. Sashi Jagdishan

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 31.03.2012)

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	543,216,100	27.99
Sub Total	543,216,100	27.99
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	543,216,100	27.99
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	97,301,609	5.01
Financial Institutions / Banks	301,136	0.02
Insurance Companies	148,780,754	7.66
Foreign Institutional Investors	720,027,157	37.09
Sub Total	966,410,656	49.79
(2) Non-Institutions
Bodies Corporate	204,972,487	10.56
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	160,026,003	8.24
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	46,243,696	2.38
Any Others (Specify)	20,189,537	1.04
Non Resident Indians	9,508,895	0.49
Overseas Corporate Bodies	579,010	0.03
Foreign Corporate Bodies	10,087,672	0.52
Foreign Nationals	13,960	-
Sub Total	431,431,723	22.23
Total Public shareholding (B)	1,397,842,379	72.01
Total (A)+(B)	1,941,058,479	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	405,629,791	-
Sub Total	405,629,791	-
Total (A)+(B)+(C)	2,346,688,270	100.00

BUSINESS DETAILS

Line of Business :

Corporate Banking Consisting of Working Capital Finance, Trade Service and Cash Management Treasury.

GENERAL INFORMATION

No. of Employees :	55752 (Approximately)
Bankers :	Reserve Bank of India

Banking Relations :	--
Auditors :
Name :	BSR and Company Chartered Accountant
Promoter :	Housing Development Finance Corporation Limited.
Enterprises Under Common Control Of The Promoter :	HDFC Asset Management Company Limited HDFC Standard Life Insurance Company Limited HDFC Developers Limited HDFC Holdings Limited HDFC Investments Limited HDFC Trustee Company Limited GRUH Finance Limited HDFC Realty Limited HDFC Ergo General Insurance Company Limited HDFC Venture Capital Limited. HDFC Ventures Trustee Company Limited. HDFC Sales Private Limited HDFC Property Ventures Limited. HDFC Asset Management Company (Singapore) Pte. Limited. Griha Investments Credila Financial Services Private Limited HDFC Investments Trust Limited
Subsidiaries :	HDFC Securities Limited HDB Financial Services Limited
Associates :	Atlas Documentary Facilitators Company Private Limited HBL Global Private Limited Centillion Solutions and Services Private Limited International Asset Reconstruction Company Private Limited

CAPITAL STRUCTURE

(AS ON 06.07.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
550000000	Equity Shares	Rs.10/- each	Rs.5500.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
469337654	Equity Shares	Rs.10/- each	Rs.4693.377 millions

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
550000000	Equity Shares	Rs.10/- each	Rs.5500.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
465225684	Equity Shares	Rs.10/- each	Rs.4652.257 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2011	31.03.2010	31.03.2009
CAPITAL AND LIABILILITES
Capital	4652.257	4577.433	4253.841
Equity Share Warrants	0.000	0.000	4009.158
Reserves and surplus	249111.291	210618.369	142209.460
Employees Stock Options (Grants) Outstanding	29.135	29.135	54.870
Deposits	2085864.054	1674044.394	1428115.800
Borrowing	143940.610	129156.925	91636.374
Other Liabilities & Provisions	289928.565	206159.441	162428.229
TOTAL	2773525.912	2224585.697	1832707.732
ASSETS
Cash & Balances with Reserve Bank of India	251008.158	154832.841	135272.112
Balances with Banks & money at Call & Short Notice	45680.191	144591.147	39794.055
Investments	709293.656	586076.161	588175.488
Advances	1599826.654	1258305.939	988830.473
Fixed Assets	21706.480	21228.114	17067.290
Other Assets	146010.773	59551.495	63568.314
TOTAL	2773525.912	2224585.697	1832707.732
Contingent Liabilities	5751224.839	4790515.044	4059816.885
Bills for Collection	134284.924	81248.646	85522.390

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
I.	INCOME
		Interest Earned	199282.122	161729.000	163322.611
		Other Income	43351.527	38076.106	32906.035
		TOTAL	242633.649	199805.106	196228.646
II.	EXPENSES
		Interest Expended	93850.839	77862.988	89111.044
		Operating Expenses	71529.141	57644.827	55328.058
		Provisions and Contingencies	37989.660	34810.282	29340.152
		TOTAL	203369.640	170318.097	173779.254
III.	PROFIT
	Net Profit for the Year		39264.009	29487.009	22449.392
	Profit Brought Forward		45327.948	34555.658	25746.345
IV.	APPROPRIATIONS
		Transfer to Statutory Reserve	9816.002	7371.752	5612.349
		Proposed Dividend	7676.224	5492.919	4253.841
		Tax on Dividend	1245.275	912.305	722.940
		Dividend Pertaining to Previous year paid during the year	26.484	9.343	5.900
		Transfer to General Reserve	3926.401	2948.701	2244.939
		Transfer to Capital Reserve	3.568	1994.599	938.660
		Transfer to Investment Reserve Account	155.587	(14.900)	(138.550)
	BALANCE CARRIED TO THE B/S		61742.416	45327.948	34555.658
	Earnings Per Share (Rs.)		85.02	67.56	52.85

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011	31.12.2011	31.03.2012
Type	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter
Interest Earned	59779.700	67177.000	72026.400	73880.400
Income On Investments	14107.000	16181.900	17475.700	17281.300
Interest On Balances With Rbi Other Inter Bank Funds	248.400	329.400	345.900	447.700
Interest / Discount On Advances / Bills	45141.900	49947.900	54174.900	56101.300
Others	282.400	717.800	29.900	50.100
Other Income	11200.300	12116.800	14200.000	14919.800
Total Income	70980.000	79293.800	86226.400	88800.200
Interest Expended	31300.100	37731.900	40866.500	39997.300
Operating Expenses	19346.300	20303.900	21579.600	24670.800
Total Expenditure	19346.300	20303.900	21579.600	24670.800
Operating Profit Before Provisions and Contingencies	20333.600	21258.000	23780.300	24132.100
Exceptional Items	0.000	0.000	0.000	0.000
Provisions and contingencies	4436.300	3660.500	3292.400	2983.000
Profit Before Tax	15897.300	17597.500	20487.900	21149.100
Tax	5047.200	5604.000	6191.300	6618.300
Profit After Tax	10850.100	11993.500	14296.600	14530.800
+/- Extraordinary Items	0.000	0.000	0.000	0.000
+/- Prior period items	0.000	0.000	0.000	0.000
Net Profit	10850.100	11993.500	14296.600	14530.800

LOCAL AGENCY FURTHER INFORMATION

Check list by info Agents	Available in Report (Yes/ No)
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the Firm	Yes
Premises details	No
Type of Business	Yes
Line of Business	Yes
Promoter’s Background	No
No. of Employees	Yes
Name of Person Contacted	No
Designation of Contact person	No
Turnover of Firm for last three years	Yes
Profitability for last three years	Yes
Reasons for variation <> 20%	-----
Estimation for coming financial year	No
Capital in the business	Yes
Details of sister concerns	Yes
Major Suppliers	No
Major Customers	No
Payments Terms	No
Export/ Imports Details (If applicable)	No
Market Information	-----
Litigations that the firm/ Promoters Involved in	-----
Banking details	Yes
Banking Facility Details	No
Conduct of the Banking Account	-----
Buyer visit details	-----
Financials, if provided	Yes
Incorporation details is applicable	Yes
Last Accounts filed at ROC	Yes
Major Shareholders, if available	No

FINANCIAL PERFORMANCE

The Bank posted total income and net profit of Rs.242634.000 Millions and Rs.39264.000 Millions respectively for the financial year ended March 31, 2011 as against Rs.201558.000 Millions and Rs.29487.000 Millions respectively in the previous year. Appropriations from net profit have been effected as per the table given above.

SUBSIDIARY COMPANIES

The Bank has two subsidiaries, HDFC Securities Limited ('HSL') and HDB Financial Services Limited ('HDBFS').

HSL is primarily in the business of providing brokerage services through the internet and other channels with a focus to emerge as a full-fledged financial services provider offering a bouquet of financial services along with the core broking product. The company continued to strengthen its distribution franchise and as on March 31, 2011 had a network of 150 branches across the country catering to the needs of its customers. During the year under review, the company’s total income amounted to Rs.2605.000 Millions against Rs.2353.000 Millions in the previous year. The operations resulted in a net profit after tax of Rs.772.000 Millions.

HDBFS is a non-deposit taking non-bank finance company ('NBFC'), the customer segments being addressed by HDBFS are typically underserviced by the larger commercial banks, and thus create a profitable niche for the company to operate. Apart from lending to individuals, the company grants loans to small and medium business enterprises and micro small and medium enterprises. The principle businesses of HDBFS are as follows:

· Loans – The Company offers a range of loans in the unsecured and secured loans space that fulfill the financial needs of its target segment.

· Insurance Services – HDBFS is a corporate agent for HDFC Standard Life Insurance Company and sells standalone insurance products as well as products such as Loan Cover and Asset Cover.

· Collections - BPO Services – The Company runs 6 call centers with a capacity of over 1,500 seats. These centers cover collection requirements at over 100 towns through its calling and field teams. Currently the company has a contract with your Bank for collection services.

MANAGEMENT’S DISCUSSIONS AND ANALYSIS

Macro-economic and Industry Developments

After a strong revival last year, the domestic growth cycle remained robust, extending and consolidating the recovery set forth in the fiscal year ended March 31, 2011. While emerging headwinds from tightening monetary conditions and a scale back in fiscal stimulus measures (put in place during the global credit crisis of the calendar year 2008) led to some moderation in industrial growth, service sector growth and agricultural performance were strong and picked up the slack from industry. This is likely to have pushed the headline GDP growth in the year ended March 31, 2011 to 8.6% from 8.0% in the previous year.

Stimulus driven government spending has dissipated as a major driver of growth and private demand has successfully taken over. Structural factors such as strong rural demand, low product penetration and favorable demographics have remained key supports for private consumption. While government consumption growth is likely to have eased substantially from 16.4% in the fiscal year ended March 31, 2010 to 2.6% in fiscal year ended March 31, 2011, private consumption has remained strong growing by 8.2% in the financial year ended March 31, 2011 as against 7.3% a year ago.

However, even as domestic consumption growth has remained robust, investment demand has somewhat disappointed with infrastructure project execution by the government remaining tardy and the corporate capital expenditure cycle remaining subdued. Investments are likely to have grown by 8.2% in the fiscal year ended March 31, 2011 against 12.2% a year ago and this has impinged on industrial performance. Growth in capital goods has fallen from 29.0% in the first half of the fiscal year ended March 31, 2011 to -1.3% in the second half pulling industrial growth lower from 10.3% in the first half of the financial year to 6.3% for the full year.

The service sector has however remained strong with services such as finance, insurance, trade, transportation and communication performing well and taking overall service sector growth to 9.6% against 10.0% a year ago, despite a visible slowdown in government related services such as community, personal and social services. Further, a good monsoon season has meant that agricultural production has recovered from last year’s drought. Total food grain production is expected to grow by a strong 8.3% while agricultural growth is likely to have been close to 5.4% against 0.4% a year ago. This, along with income support schemes by the government such as the Mahatma Gandhi National Rural Employment Scheme (MGNREGS) have meant that the rural economy has performed well and has been an active participant in domestic growth dynamics.

While the rural sector has added to the robustness of the domestic growth cycle it has also contributed to the stickiness in inflationary pressures. Strong agricultural growth has meant that food inflation has cooled from 21% in June, 2010 to 9.2% in March, 2011 but the pace of decline has been diluted by demand-supply mismatches in specific categories such as protein-based food items (milk, eggs, meat, fish) and fruits and vegetables - an indication of rising rural incomes and the change in dietary patterns this entails. This has been exacerbated by supply chain problems and an inefficient food distribution system. As a result, while WPI inflation has fallen from a peak of 11.0 % in April, 2010 it has been slower to ease than initially anticipated settling in the 8.5-9.0% range in the fourth quarter of the fiscal year ended March 31, 2011 and averaging a rate of 9.4% in the full fiscal year.

Domestic inflationary pressures however, are no longer driven by food prices alone and inflation has become more broad based over the past year. Firm international commodity prices, especially items such as crude oil, as well as the return of pricing power amongst domestic manufacturing firms amidst firm demand have pushed manufactured goods inflation higher. Further, ‘core’ inflation or manufactured goods inflation net of food price effects has been rising steadily. While headline inflation eased from 9.0% in October, 2010 to 8.3% in February, 2011, core inflation has picked up from 5.0% to 6.0%.

Monetary policy has, as a result, become more restrictive over the past year with the RBI changing policy focus from calibrating the exit from an accommodative stance to tackling inflation more aggressively. Policy rates (repo and reverse repo rate) have been hiked by 225-275 basis points over the last year but the effective tightening in rates has been far higher. Structural pressures on banking system liquidity from subdued deposit growth such as leakages from the deposit base towards currency in circulation have meant that the monetary transmission mechanism has been quick. Additionally, frictional liquidity stress from tardy government spending has also kept liquidity under pressure swinging the system from a surplus of over Rs.1000000.000 Millions in March, 2010 ( as measured by the Liquidity Adjustment Facility (LAF) reverse repo window) to an average deficit of a similar magnitude in March, 2011 (as measured by the LAF repo window). A heavy government borrowing target of Rs. 4370000.000 Millions has only exaggerated the pressure on the system.

As a result, the effective policy rate has shifted from the reverse repo rate (rate consistent with surplus liquidity) to the repo rate (rate consistent with deficit liquidity) involving incremental tightening of 100-150 basis points over and above the policy rate hikes over the year. While short-term interest rates such as the overnight MIBOR has moved higher by close to 300 basis points, the yield on the benchmark 10-yr G-sec has increased by 15-20 basis points. Liquidity pressure has meant that the yield curve has flattened with the spread between the 10-yr G-sec and the 1-yr G-sec yields moving from 280 basis points to 50 basis points.

Lending rates have moved higher by an average of 100-150 basis points as funding conditions have come under strain. However, credit growth has been robust despite interest rate increases and has gathered pace over the year moving from 16.0% in March, 2010 to 23.0% in March, 2011. While infrastructure has continued to dominate credit growth in the past year, credit off-take has been relatively more broad-based with retail credit disbursements such as vehicle loans and housing loans as well as funding to services such as trade and Non Banking Financial Companies gathering ground. Credit growth towards infrastructure continued to grow at last year’s level of around 40%, growth in personal loans accelerated sharply from 4% to 16% while the growth in service sector credit picked up from 15% to 24%.

Deposit rates have also been hiked by an average of 150-200 basis points and while this has helped deposit growth move higher from a low of 14.0% in June, 2010 to 16.9% in March, 2011, deposit mobilization has been weak in the last year. Net foreign inflows into the country have been subdued and have been a major factor constraining money supply and deposit growth. Capital inflows into the country have been strong in the past year and are likely to have been USD 66 billion against USD 54 billion a year ago on the back of strong portfolio flows

(both debt and equity), heavy external commercial borrowings and strong trade credit. However, the bulk of these inflows have been absorbed in financing a large current account deficit. The current account gap over the last financial year is likely to be close to 2.5-2.8% of GDP or USD 48 billion leaving net foreign inflows into the country at close to USD 16.4 billion - just slightly higher than net inflows of USD 13.4 billion in the previous year.

That said, there have been some offsets in recent months. A recovery in export growth and a turn in invisibles (private transfers and service exports) as well as a normalization in import growth in line with moderating industrial momentum in the third quarter of the last fiscal year has meant that the current account gap has reduced from 4.3% of GDP in the second quarter of the last year to 2% in the third quarter. While the drag on foreign inflows during the last year is still expected to be a long term concern, the pressure on external balances has relatively eased in the near term.

Reflecting the improvement in global growth conditions driven by fiscal and monetary stimulus measures, export growth in the last quarter of the fiscal year ended March 31, 2011 was a strong 42.0%. Growth was driven by categories such as engineering goods, chemicals, gems and jewellery and electronic goods, this has been a vital support to the domestic industry amidst flagging investment momentum. Import growth slowed down from 32.8% in the first half of the last financial year to 10.0% in the second half, inflows from invisibles picked up pace in the third quarter of the fiscal year ended March 31, 2011 growing by 17.0% on the year against a decline of 2.6% Y-o-Y in the first half of the same year. The risk however is that firm global commodity prices could push import growth higher going ahead and the likelihood of further improvement in external balances is somewhat limited.

Outlook

Further withdrawal of stimulus measures-both fiscal and monetary, are likely to moderate headline GDP growth in the year ahead and the expectation is that growth is likely to soften slightly from 8.6% in the last year to 8.0%. Additional monetary tightening in the current fiscal year could curtail private investment and leveraged consumer spending from entirely picking up the slack from fiscal compression and a cut back in government spending. However, this is unlikely to detract from structural positives and the premium attached to India as a rapidly growing economy. World output is likely to grow by 3.5% in 2011 and despite the configuration of external and domestic risks looming over the horizon, India is likely to continue to outperform the global economy by a large margin. Pressures are likely to be cyclical and key structural supports from a growing rural economy, favorable demographics and low product penetration are likely to continue to keep private consumption strong. Structural positives are likely to therefore offset downside risks to growth and keep India an attractive investment destination next year.

Financial Performance:

The financial performance of the Bank during the fiscal year ended March 31, 2011 remained healthy with total net revenues (net interest income plus other income) increasing by 20.3% to Rs.148783.000 Millions from Rs.123695.000 Millions in the previous financial year. Revenue growth was driven both by an increase in net interest income and other income. Net interest income grew by 25.7% primarily due to acceleration in loan growth to 27.1% coupled with a stable net interest margin (NIM) of 4.3% for the year ending March 31, 2011.

From April 01, 2010 the RBI mandated that interest payable on savings deposits be calculated on daily average balances, this resulted in an increase in savings deposit costs by approximately 70-80 basis points. Further, due to tight liquidity conditions that were prevalent in the monetary system during the second half of the fiscal year ended March 31 2011, the Bank witnessed an increase of over 200 basis points in its retail term deposit rates during this period. The Bank has however maintained steady NIMs which are amongst the highest within its peer group by managing the yields across its various customer and product segments in line with its cost of funds.

Other income grew 8.8% over that in the previous year to Rs.43352.000 Millions during the financial year ended March 31, 2011. This growth was driven primarily by an increase in fees and commissions earned and income from foreign exchange and derivatives, offset in part by a loss on sale / revaluation of investments of Rs.526.000 Millions as compared to a gain of Rs.3451.000 Millions in the previous financial year. In the fiscal year ended March 31, 2011, commission income increased by 19.7% to Rs.35967.000 Millions with the primary drivers being commissions from the distribution of third party insurance and mutual funds, fees on debit and credit cards, transactional charges and fees on deposit accounts and processing fees on retail assets. The banking industry witnessed regulatory changes that resulted in the capping of earnings from the distribution of insurance products, however the increase in the Bank’s sales volumes partly made up for the reduction in unit commissions, as a result the growth in income from the distribution of third party products remained a healthy 28.0%. Foreign exchange and derivatives revenues grew by 26.2% from Rs.6232.000 Millions in the previous financial year to Rs.7863.000 Millions in the fiscal year ended March 31, 2011.

Operating (non-interest) expenses grew in line with net revenues and increased from Rs.59398.000 Millions in the previous financial year to Rs.71529.000 Millions in the year under consideration. During the year the Bank opened 261 new branches and over 1,200 ATMs which resulted in higher infrastructure and staffing expenses. In spite of that, the ratio of operating cost to net revenues (excluding bonds gains) for the Bank improved to 47.9% during the fiscal year ended March 31, 2011, from 49.4% in the previous year.

Total loan loss provisions including specific provisions for non-performing assets and floating provisions decreased from Rs.19889.000 Millions to Rs.14330.000 Millions for the financial year ended March 31, 2011, on account of healthy asset quality across customer and product segments. The Bank’s provisioning policies for specific loan loss provisions remain higher than regulatory requirements, the coverage ratio based on specific provisions alone without including write offs technical or otherwise was 82.5% and that including general and floating provisions was well over 100% as on March 31, 2011. The Bank has made contingent provisions on account of contingencies towards the loans that it has extended to micro finance institutions, in view of the credit concerns arising out of the disruptions in that sector. The Reserve Bank of India had reduced the general provisioning requirements for certain asset classes in May 2008, this reduced the requirements for general provisions for the Bank’s loan book. The Bank however, continued to maintain the general provisions that were already created. As a result of the above, the requirement for general asset provisions was lower than what the Bank held on its books as on March 31, 2011 and the Bank did not have to make any additional general asset provisions on account of the increase in its loan book.

The Bank’s profit after tax increased by 33.2% from Rs.29485.000 Millions in the previous financial year to Rs.39264.000 Millions in the year ended March 31, 2011. Return on average net worth was 16.5% while the basic earnings per share increased from Rs.67.56 to Rs.85.02 per equity share.

As at March 31, 2011, the Bank’s total balance sheet size was Rs.2773530.000 Millions an increase of 24.7% over Rs.2224580.000 Millions as at March 31, 2010. Total Deposits increased 24.6% from Rs.1674040.000 Millions as on March 31, 2010 to Rs.2085860.000 as on March 31, 2011. Savings account deposits grew by 27.2% to Rs.634480.000 while current account deposits at Rs.464600.000 witnessed an increase of 24.8% as compared to those on March 31, 2010. Adjusting current account deposits for one offs at year end amounting to Rs.37000.000 Millions the growth was 14.9%. The proportion of core current and savings deposits (CASA) to total deposits continued to be healthy at 51% as on March 31, 2011.

During the financial year, gross advances grew by 26.8% to Rs.1613590.000 Millions while system loan growth was approximately 21%. The Bank’s loan growth was driven by an increase of 26.8% in retail advances to Rs.801130.000 Millions, and an increase of 26.7% in wholesale advances to Rs.812460.000 Millions. The Bank had a market share of 3.7% in total system deposits and 4.2% in total system advances. The Bank’s Credit Deposit (CD) Ratio was 76.7% as on March 31, 2011. Adjusted for overseas funding by its international operations, primarily funded from term borrowings, the CD Ratio was lower at 74.5%.

Business Segments’ Update:

Consistent with its performance in the past, in the last financial year, the Bank has achieved healthy growth across various operating and financial parameters. This performance reflected the strength and diversity of the Bank’s three primary business franchises – retail banking, wholesale banking and treasury, and of its disciplined approach to risk – reward management.

Retail Banking

The Bank caters to various customer segments with a wide range of products and services. The Bank is a ‘one stop shop’ financial services provider of various deposit products, of retail loans (auto loans, personal loans, commercial vehicle loans, mortgages, business banking, loan against gold jewellery etc.), credit cards, debit cards, depository (custody services), investment advisory, bill payments and several transactional services. Apart from its own products, the Bank distributes third party financial products such as mutual funds and life and general insurance.

The growth in the Bank’s retail banking business was robust during the financial year ended March 31, 2011. The Bank’s total retail deposits grew by over 23.3% to Rs.1399610.000 Millions in the financial year ended March 31, 2011, driven by retail savings balances which grew much faster at 28.0% during the same period. The Bank’s retail assets grew by 26.8% to Rs.801130.000 Millions during the financial year ended March 31, 2011 driven primarily by a growth in mortgages, business banking, commercial vehicle loans and auto loans.

Branch Banking

This year the Bank expanded its distribution network from 1,725 branches in 779 cities as on March 31, 2010 to 1,986 branches in 996 Indian cities on March 31, 2011. The Bank’s ATMs increased from 4,232 to 5,471 during the same period. Your Bank’s branch network is deeply entrenched across the country with significant density in areas conducive to the growth of its businesses. The Bank’s focus on semi-urban and under-banked markets continued, with over 70% of the Bank’s branches now outside the top nine Indian cities. The Bank’s customer base grew in line with the growth in its network and increased product penetration initiatives, this currently stands at 21.9 million customers. The average savings balance per account which is a good indicator of the strength of the Bank’s retail liability franchise grew over 17%. The Bank continues to provide unique products and services with customer centricity a key objective.

In order to provide its customers increased choices, flexibility and convenience the Bank continued to make significant headway in its multi channel servicing strategy. The Bank offered its customers the use of ATMs, internet, phone and mobile banking in addition to its expanded branch network to serve their banking needs.

The increase in the Bank’s debit card base this year coupled with a growth in its ATM network translated to an increase in ATM transactions by 14%. The Bank also made strong inroads in its internet banking channel with around 60% of its registered customers now using net banking facilities for their banking requirements. The bank now offers phone banking in 996 locations in addition to giving its customers the convenience of accessing their bank accounts over their mobile phones. The success of the Bank’s multi-channel strategy is evidenced in the fact that over 80% of customer initiated transactions are serviced through the non-branch channels.

Retail Assets

The Bank continued to grow at a healthy pace in almost all the retail loan products that it offers and further consolidated its position amongst the top retail lenders in India. The Bank grew its retail asset portfolio in a well balanced manner focusing on both returns as well as risk. While the Bank’s auto finance business remained a key business driver for its retail asset portfolio, other retail loan products exhibited robust growth rates and good asset quality.

The Bank continued its focus on internal customers for its credit cards portfolio. Overall credit cards remained a profitable business for the Bank with over 5 million cards in force as at March 2011. As part of its strategy to drive usage of its credit cards the Bank also has a significant presence in the ‘merchant acquiring’ business with the total number of point-of-sale (POS) terminals installed at over 120,000.

In addition to the above products the Bank does home loans in conjunction with HDFC Limited. Under this arrangement the Bank sells loans provided by HDFC Limited through its branches. HDFC Limited approves and disburses the loans, which are booked in their books, with the Bank receiving a sourcing fee for these loans. HDFC Limited offers the Bank an option to purchase up to 70% of the fully disbursed home loans sourced under this arrangement through either the issue of mortgage backed pass through certificates (PTCs) or by a direct assignment of loans; the balance is retained by HDFC Limited. Both the PTCs and the loans thus assigned are credit enhanced by HDFC Limited upto a AAA level. The Bank purchases these loans at the underlying home loan yields less a fee paid to HDFC Limited for the administration and servicing of the loans. The Bank originated approximately an average Rs.7000.000 Millions of mortgages every month in the financial year ended March 31, 2011, an increase from the Rs.5500.000 Millions per month that it originated in the previous year. During the year the Bank also purchased from HDFC Limited under the “loan assignment” route approximately Rs.43000.000 Millions of AAA credit enhanced home loans most of which qualified as priority sector advances.

The Bank also distributes life, general insurance and mutual fund products through its tie-ups with insurance companies and mutual fund houses. The income from these businesses continued to demonstrate robust growth largely due to an expanded branch network and the increased penetration of the Bank’s managed portfolio despite the fact that during the year there were regulatory changes which in some cases impacted the commission paid by the manufacturers of these products to the Bank. The success in the distribution of the above products has been demonstrated with the growth in the Bank’s fee income. Third party distribution income contributes approximately 25% of total fee income.

The Bank’s data warehouse, Customer Relationship Management (CRM) and analytics solutions have helped it target existing and potential customers in a cost effective manner and offer them products appropriate to their profile and needs. Apart from reducing costs of acquisition, this has also led to deepening of customer relationships and greater efficiency in fraud control and collections resulting in lower credit losses. The Bank is committed to investing in advanced technology in this area which will provide cutting edge in the Bank’s product and service offerings.

Wholesale Banking

The Bank provides its corporate and institutional clients a wide range of commercial and transactional banking products, backed by high quality service and relationship management. The Bank’s commercial banking business covers not only the top end of the corporate sector but also the emerging corporate segments and some small and medium enterprises (SMEs). The Bank has a number of business groups catering to various segments of its

wholesale banking customers with a wide range of banking services covering their working capital, term finance, trade services, cash management, foreign exchange and electronic banking requirements.

The business from this segment registered a healthy growth in the financial year ended March 31, 2011. The Bank’s wholesale deposits grew by around 27.4%, while wholesale advances showed a growth of over 26.7% both of which were significantly faster than the growth in the system during the same period. The Bank provides its customers both working capital and term financing. The Bank witnessed an increase in the proportion of its medium tenor term, however working capital loans and short tenor term loans retained a large share of its wholesale advances. While the duration of the Bank’s term loans largely remained small to medium term, the Bank did witness an increase in its longer duration term loans, and project lending including loans to the infrastructure segment.

During the financial year ended March 31, 2011, growth in the wholesale banking business continued to be driven by new customer acquisition and higher cross-sell with a focus on optimizing yields and increasing product penetration. The Bank’s cash management and vendor and distributor (supply chain) finance products continued to be an important contributor to growth in the corporate banking business. The Bank further consolidated its position as a player in the cash management business (covering all outstation collection, disbursement and electronic fund transfer products across the Bank’s various customer segments) with volumes growing to over Rs.30 trillion. The Bank also strengthened its market leadership in cash settlement services for major stock exchanges and commodity exchanges in the country. The Bank met the overall priority sector lending requirement of 40% of net bank credit and also strived for healthy growth in the sub-targets such as weaker sections, direct agriculture and the micro and SME segments.

The Bank’s financial institutions and government business group (FIG) offers commercial and transaction banking products to financial institutions, mutual funds, public sector undertakings, central and state government departments. The main focus for this segment remained offering various deposit and transaction banking products to this segment besides deepening these relationships by offering funded, non-funded treasury and foreign exchange products.

International Operations

The Bank has a wholesale banking branch in Bahrain, a branch in Hong Kong and two representative offices in UAE and Kenya. The branches offer the Bank’s suite of banking services including treasury and trade finance products to its corporate clients. The Bank has built up an asset book over USD 1 billion through its overseas branches. The Bank offers wealth management products, remittance facilities and markets deposits to the non-resident Indian community from its representative offices.

Treasury

The treasury group is responsible for compliance with reserve requirements and management of liquidity and interest rate risk on the Bank’s balance sheet. On the foreign exchange and derivatives front, revenues are driven primarily by spreads on customer transactions based on trade flows and customers’ demonstrated hedging needs. During the financial year ended March 31, 2011, revenues from foreign exchange and derivative transactions grew by 26.2% to Rs.7863.000 Millions. These revenues were distributed across large corporate, emerging corporate, business banking and retail customer segments for plain vanilla foreign exchange products and across primarily large corporate and emerging corporate segments for derivatives. The Bank offers Indian rupee and foreign exchange derivative products to its customers, who use them to hedge their market risks. The Bank enters into foreign exchange and derivative deals with counterparties after it has set up appropriate counterparty credit limits based on its evaluation of the ability of the counterparty to meet its obligations in the event of crystallization of the exposure. Appropriate credit covenants may be stipulated where required as trigger events to call for collaterals or terminate a transaction and contain the risk. Where the Bank enters into foreign currency derivative contracts with its customers it lays them off in the inter-bank market on a matched basis. For such foreign currency derivatives, the Bank does not have any open positions or assume any market risks but carries only the counterparty credit risk (where the customer has crystallized payables or mark-to-market losses). The Bank also deals in Indian rupee derivatives on its own account including for the purpose of its own balance sheet risk management. The Bank recognizes changes in the market value of all rupee derivative instruments (other than those designated as hedges) in the profit and loss account in the period of change. Rupee derivative contracts classified as hedge are recorded on an accrual basis.

Given the regulatory requirement of holding government securities to meet the statutory liquidity ratio (SLR) requirement, your Bank maintains a portfolio of government securities. While a significant portion of these SLR securities are held in the ‘Held-to-Maturity’ (HTM) category, some of these are held in the ‘Available for Sale’ (AFS) category.

BACKGROUND

The Bank incorporated in Mumbai, India is a publicly held banking company engaged in providing a wide range of banking and financial services including commercial banking and treasury operations. The Bank is a banking company governed by the Banking Regulation Act, 1949. The Bank has overseas branch operations in Bahrain and Hong Kong.

Unaudited financial results for the Quarter and Nine months ended DECEMBER 31, 2011

(RS. IN MILLIONS)

Particulars	Quarter Ended 31.12.2011 (Unaudited)	Quarter Ended 30.09.2011 (Unaudited)	Nine Months Ended 31.12.2010 (Unaudited)
Interest Earned	72026.400	67177.000	198983.100
Interest/discount on advances/bills	54174.900	49947.900	149264.700
Income on Investments	17475.700	16181.900	47764.600
Interest on balances with Reserve Bank of India and other inter bank funds	345.900	329.400	923.700
Others	29.900	717.800	1030.100
Other Income	14200.000	12116.800	37517.100
TOTAL INCOME	86226.400	79293.800	236500.200
Interest Expended	40866.500	37731.900	109898.500
Operating Expenses	21579.600	20303.900	61229.800
Employee Cost	8674.200	8231.000	24715.100
Other Operating Expenses	12905.400	12072.900	36514.700
Total Expenditure	62446.100	58035.800	171128.300
Operating Profit before Provisions and Contingencies	23780.300	21258.000	65371.900
Provisions (Other than tax) and Contingencies	3292.400	3660.500	11389.500
Exceptional Items	--	--	--
Profit / (Loss) from ordinary activities before tax	20487.900	17597.500	53982.400
Tax Expenses	6191.300	5604.000	16842.500
Net Profit / (Loss) from Ordinary Activities after Tax	14296.600	11993.500	37139.900
Extraordinary Items (Net Tax Expenses)
Net Profit / (Loss)	14296.600	11993.500	37139.900
Paid- up Equity Share Capital (Face value of the share – Rs. 10)	4682.600	4676.600	4682.600
Reserves excluding revaluation reserves (as per last audited balance sheet)	--	--	--
Analytical Ratios
Capital Adequacy Ratio	16.3%	16.5%	16.3%
Basic and diluted Earnings per share for the period, for the year to date (not annualized) and for the previous year – Rs.	6.1	5.1	15.9
Diluted EPS before & after extraordinary items (net of tax expense) - not annualized	6.1	5.1	15.8
NPA Ratios
(a) Gross NPAs	202058	189494	202058
(b) Net NPAs	39796	35525	39796
(c) % of Gross NPAs to Gross Advances	1.03%	1.00%	1.03%
(d) % of Net NPAs to Net Advances	0.2%	0.2%	0.2%
(v) Return on assets (average) - not annualized	0.5%	0.4%	1.3%
Non Promoters shareholding
Public shareholding
Number of Shares	1392441945	1389439055	1392441945
Percentage of Shareholding	59.5%	59.4%	59.5%
Shares underlying Depository Receipts ( ADS and GDR )
Number of Shares	405656975	405656975	405656975
Percentage of Shareholding	17.3%	17.4%	17.3%
Promoters and promoter group shareholding
Non - Encumbered Number of Shares Percentage of Shares (as a % of the total shareholding of promoter and promoter group) Percentage of Shares (as a % of the total share capital of the company)	543216100 100.0% 23.2%	543216100 100.0% 23.2%	543216100 100.0% 23.2%

Segment information in accordance with the Accounting Standard on Segment Reporting (AS 17) of the operating segments of the Bank is as under

(RS. IN MILLIONS)

Sl. No.	Particulars	Quarter Ended	Quarter Ended	Nine Months Ended
		31.12.2011	30.09.2011	31.12.2011
		(Un-audited)	(Un-audited)	(Un-audited)
1	Segment Revenue
	a) Treasury	21406.400	19103.100	57080.500
	b) Retail Banking	67471.800	66146.100	194142.300
	c) Wholesale Banking	41835.800	40690.500	117933.600
	d) Other banking operations	7715.900	6497.900	19966.200
	e) Unallocated	--	705.300	963.300
	Total	138429.900	133142.900	390085.900
	Less : Inter Segment Revenue (Net of Excise)	52203.500	53849.100	153585.700
	Income from Operation	86226.400	79293.800	236500.200
2	Segment Results
	a) Treasury	1955.900	388.500	2528.400
	b) Retail Banking	8782.200	9576.000	26125.000
	c) Wholesale Banking	8772.000	6700.700	23200.200
	d) Other banking operations	3500.700	2740.600	8405.600
	e) Unallocated	(2522.900)	(1808.300)	(6276.800)
	Total Profit Before Tax	20487.900	17597.500	53982.400
3	Capital Employed (Segment Assets - Segment Liabilities)
	a) Treasury	742142.200	710801.400	742142.200
	b) Retail Banking	(685766.700)	(658819.800)	(685766.700)
	c) Wholesale Banking	264291.100)	258349.500	264291.100
	d) Other banking operations	62397.100	56414.800	62397.100
	e) Unallocated	(88188.600)	(87024.100)	(88188.600)
	Total	294875.100	279721.800	294875.100

Business segments have been identified and reported taking into account, the target customer profile, the nature of products and services, the differing risks and returns, the organization structure, the internal business reporting system and the guidelines prescribed by RBI.

Geographic Segments

Since the Bank does not have material earning emanating outside India, the Bank is considered to operate in only the domestic segment.

NOTES:

• STATEMENT OF ASSETS AND LIABILITIES AS ON DECEMBER 31, 2011 IS GIVEN BELOW.

4. STATEMENT OF ASSETS AND LIABILITIES (Rs. In Millions)	31.12.2011
CAPITAL AND LIABILITIES
Capital	4682.600
Reserves and surplus	290192.500
Employees Stock Options (Grants) Outstanding	3.000
Deposits	2325082.300
Borrowing	244262.600
Other Liabilities & Provisions	490644.400
Total	3354867.400
ASSETS
Cash & Balances with Reserve Bank of India	189937.200
Balances with Banks & money at Call & Short Notice	34741.300
Investments	802139.000
Advances	1943027.400
Fixed Assets	21766.100
Other Assets	363256.400
Total	3354867.400

• The above results have been approved by the Board of Directors at its meeting held on January 19, 2012.

• These results for the quarter and nine months ended December 31, 2011, have been subject to a "Limited Review" by the Statutory Auditors of the Bank. An unqualified report has been issued by them thereon.

• The shareholders of the Bank at the 17^th Annual General Meeting held on July 6, 2011 approved sub-division (Split) of one share of the Bank from nominal value Rs.10/- each into five equity shares of nominal value of Rs.2/- each. All share information in the financial results reflects the effect of sub-division (split) retrospectively.

• During the quarter and nine months ended December 31, 2011, the Bank allotted 3002890 and 15186600 shares pursuant to the exercise of stock options by certain employees.

• Other income relates to income from non-fund based banking activities including commission, fees, foreign exchange earnings, earnings from derivative transactions and profit and loss (including revaluation) from investments.

• As on December 31, 2011, the total number of branches (including extension counters) and the ATM network stood at 2201 branches and 7110 ATMs respectively.

• Information on investor complaints pursuant to Clause 41 of the listing agreement for the quarter ended December 31, 2011: Opening : Nil ; Additions : 553 ; Disposals :553 ; Closing position : Nil.

• Figures of the previous period have been regrouped / reclassified wherever necessary to conform to current period's classification.

• Rs.10 lac = Rs.1 Million

Rs.10 millions = Rs.1 Crore

NEWS RELEASE

HDFC Bank, Wells Fargo Launch US-India Remittance Service

Mumbai, April 23, 2012: HDFC Bank and the US-headquartered Wells Fargo have joined hands to enable NRIs in the United States to quickly remit money to their beneficiary’s HDFC Bank savings account in India.

The new service will significantly enhance remittance opportunities to India given that Wells Fargo has one of the largest number of banking locations among US banks and HDFC Bank has over 2500 branches in India, a country that has a large and growing number of NRIs based in the US. HDFC Bank is already one of the most preferred remittance channels for NRIs residing in The Gulf.

According to a World Bank report, the officially recorded remittance flows to developing countries are estimated to have reached $351 billion in 2011, up 8% over 2010 and is slated to touch $441 billion by 2014. Worldwide remittance flows, including those to high-income countries, are expected to exceed $590 billion by 2014. India has consistently been the top recipient of remittances with the largest chunks coming from The Gulf and the US.

“India has one of the highest remittance volumes in the world according to the World Bank,” said Daniel Ayala, executive vice president and head of Wells Fargo's Global Remittance Services. “This is evident by high customer demand as well. We are glad we can make payout locations even more convenient now by working with HDFC Bank.”

“While we’re a major player in the Gulf-India remittance market, this alliance will help us consolidate in the US-India sector which has been growing exponentially. Given our reach and the web-based nature of the service, this will allow people to send money back home in one of the safest and fastest possible ways,” said Harish Engineer, executive director, HDFC Bank.

Remittances to HDFC Bank are denominated in Indian Rupees. Once a customer has set up their ExpressSend agreement and the beneficiary account information is verified with HDFC Bank, the customer needs to conduct his first transaction at a Wells Fargo branch. Subsequent transactions can be conducted through Wells Fargo.com, or via Wells Fargo Phone Bank. Funds are sent to HDFC Bank quickly for credit during HDFC Bank’s local processing hours from Monday to Saturday excluding India holidays.

WELLS FARGO AND COMPANY

Wells Fargo and Company (NYSE: WFC) is a nationwide, diversified, community-based financial services company with $1.3 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 9,000 stores, 12,000 ATMs, the Internet (wellsfargo.com), and other distribution channels across North America and internationally. With more than 270,000 team members, Wells Fargo serves one in three households in America. Wells Fargo and Company was ranked No. 23 on Fortune’s 2011 rankings of America’s largest corporations. Wells Fargo’s vision is to satisfy all our customers’ financial needs and help them succeed financially.

ABOUT HDFC BANK

Promoted in 1995 by Housing Development Finance Corporation (HDFC), India's leading housing finance company, HDFC Bank is one of India's premier banks providing a wide range of financial products and services to its 25.9 million customers across hundreds of Indian cities using multiple distribution channels including a pan-India network of branches, ATMs, phone banking, net banking and mobile banking. Within a relatively short span of time, the bank has emerged as a leading player in retail banking, wholesale banking, and treasury operations, its three principal business segments.

The bank’s competitive strength clearly lies in the use of technology and the ability to deliver world-class service with rapid response time. Over the last 17 years, the bank has successfully gained market share in its target customer franchises while maintaining healthy profitability and asset quality.

As of March 31, 2012, the Bank had a distribution network with 2,544 branches and 8,913 ATMs in 1,399 localities.

For the quarter ended March 31, 2012, the Bank’s total income was INR 88.8 billion (Rs.88800.000 Millions) as against INR 67.243 billion (Rs.67243.000 Millions) for the quarter ended March 31, 2011. Net revenues (net interest income plus other income) were INR 48.803 billion (Rs.48803.000 Millions) for the quarter ended March 31, 2012, as against INR 40.952 billion (Rs.40952.000 Millions) for the corresponding quarter of the previous year. Net Profit for the quarter ended March 31, 2012, was INR 14.531 billion (Rs.14531.000 Millions), up by 30.4% over the corresponding quarter ended March 31, 2011.

The Bank’s total balance sheet size increased by 21.8% to INR 3,379.09 billion (Rs.3379090.000 Millions) as of March 31, 2012. Total deposits were INR 2,467.06 billion (Rs.2467060.000 Millions) as of March 31, 2012.

Total income for the year ended March 31, 2012, was INR 325.3004 billion (Rs.325300.400 Millions).

Leading Indian and international publications have recognized the bank for its performance and quality.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.52.93
UK Pound	1	Rs.85.85
Euro	1	Rs.69.94

INFORMATION DETAILS

Report Prepared by :

NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	9
OPERATING SCALE	1~10	9
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	9
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		75

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.