MIRA INFORM REPORT

Report Date :

18.12.2013

IDENTIFICATION DETAILS

Name :	INDUSIND BANK LIMITED
Registered Office :	2401, Gen Thimmayya Road, Contonment, Pune – 411001, Maharashtra,
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	31.01.1994
Com. Reg. No.:	11-076333
Capital Investment / Paid-up Capital :	Rs. 5228.698 Millions
CIN No.: [Company Identification No.]	L65191PN1994PLC076333
TAN No.: [Tax Deduction & Collection Account No.]	MUMI04657C MUMI03262A PNEI00321G MUMI04217D MUMI04623D MUMI02402B
Legal Form :	A Public Limited Liability company. The company’s Shares are Listed on the Stock Exchanges.
Line of Business :	The Bank operates in four business segments, viz. Treasury, Corporate / Wholesale Banking, Retail Banking and Other Banking Operations.
No. of Employees :	11502 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (63)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is a well-established and reputed bank having fine track record. The bank is progressing well. The overall financial position of the bank is good. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitment. The bank can be considered good for normal business dealings at 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.

INDIAN ECONOMIC OVERVIEW

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6 % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1^st November.

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Short term fixed deposit programme: (A1+)
Rating Explanation	Very strong degree of safety. It carry lowest credit risk.
Date	04.04.2013

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION DECLINED

Management Non Co-operative (91-22-66412200)

LOCATIONS

Registered Office :	2401 Gen Thimmayya Road, Contonment, Pune – 411001, Maharashtra, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	companysecretary@indusind.com
Website :	www.indusind.com
Corporate Office :	8th Floor, Tower 1, One Indiabulls Centre, 841, Senapati Bapat Marg, Elphinstone Road (West), Mumbai – 400 013, Maharashtra, India
Tel No.:	91-22-66412200
Fax N o.:	91-22-66412224
Branch Network :	Located at · Andhra Pradesh · Assam · Bihar · Chattisgarh · Goa · Gujarat · Haryana · Himachal Pradesh · Jammu and Kashmir · Jharkhand · Karnataka · Kerala · Madhya Pradesh · Maharashtra · Mizoram · New Delhi · Orissa · Punjab · Rajasthan · Sikkim · Tamilnadu · Tripura · Union Territory · Uttar Pradesh · Uttaranchal · West Bengal
Overseas Branch Office :	Lactated at · Dubai · London

DIRECTORS

As on: 31.03.2013

Name :	Mr. R. Seshasayee
Designation :	Chairman
Qualification :	B. Com and ACA
Name :	Dr. T. T. Ram Mohan
Designation :	Director
Qualification :	B. Tech (NT Mumbai,, PGDM (MM Kolkata), Ph. D (Sterns School, New York, Professor, Finance and Accounting, MM Ahmedabad
Name :	Mr. Ajay Hinduja
Designation :	Director
Name :	Mr. S. C. Tripathi
Designation :	Director
Name :	Mr. Ashok Kini
Designation :	Director
Name :	Mrs. Kanchan Chitale
Designation :	Additional Director
Qualification :	B. Com, FCA, Practicing Chartered Accountant
Name :	Mr. Vijay Vaid
Designation :	Additional Director
Name :	Mr. R. S. Sharma
Designation :	Additional Director
Date of Appointment :	19.04.2012
Name :	Mr. Romesh Sobti
Designation :	Managing Director and Chief Executive Officer
Name :	Mr. Y. M. Kale
Designation :	(Alternate Director to Mr. Ajay Hinduja)

KEY EXECUTIVES

Name :	Mr. Haresh K. Gajwani
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2013

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
(2) Foreign
Bodies Corporate	79899984	17.39
Sub Total	79899984	17.39
Total shareholding of Promoter and Promoter Group (A)	79899984	17.39
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	24794776	5.40
Financial Institutions / Banks	1379462	0.30
Insurance Companies	12375351	2.69
Foreign Institutional Investors	209125243	45.52
Sub Total	247674832	53.91
(2) Non-Institutions
Bodies Corporate	83708732	18.22
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	30730276	6.69
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	10490727	2.28
Any Others (Specify)	6953114	1.51
Clearing Members	1239444	0.27
Overseas Corporate Bodies	1477100	0.32
Non Resident Indians	3998119	0.87
Trusts	184651	0.04
Directors & their Relatives & Friends	53800	0.01
Sub Total	131882849	28.70
Total Public shareholding (B)	379557681	82.61
Total (A)+(B)	459457665	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	64682364	0.00
Sub Total	64682364	0.00
Total (A)+(B)+(C)	524140029	0.00

Shareholding belonging to the category "Promoter and Promoter Group"

Sl.No.	Name of the Shareholder	Details of Shares held		Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital
		No. of Shares held	As a % of grand total (A)+(B)+(C)
1	Indusind International Holdings Limited	6,03,99,984	11.52	0.00
2	Indusind Limited	1,95,00,000	3.72	0.00
	Total	7,98,99,984	15.24	0.00

Shareholding belonging to the category "Public" and holding more than 1% of the Total No. of Shares

Sl. No.	Name of the Shareholder	No. of Shares held	Shares as % of Total No. of Shares
1	Ga Global Investments Limited	25894839	4.94
2	Bridge India Fund	21013458	4.01
3	Afrin Dia	15417000	2.94
4	Ashok Leyland Limited	13013923	2.48
5	Life Insurance Corporationa of India	12399404	2.37
6	Goldman Sachs Investments (Mauritius) I Limited	11421192	2.18
7	IDL Speciality Chemicals Limited	11355000	2.17
8	ICICI Prudential Life Insurance Company Limited	10106393	1.93
9	HDFC Standard Life Insurance Company Limited	8836386	1.69
10	CLSA (Mauritius) Limited	7824019	1.49
11	Franklin Templeton Mutual Fund A/c Franklin India Bluechip Fund	7265279	1.39
12	Government of Singapore	6765588	1.29
13	Norwest Venture Partners X FII -Mauritius	6718087	1.28
14	Hinduja Ventures Limited	5932383	1.13
15	Aasia management and Consultancy Private Limited	5839117	1.11
16	JP Morgan Sicav Investment Company (Mauritius) Limited	5816076	1.11
17	Birla sun Lifer Trustee Company Pvt Ltd A/c Birla Sun Life Frontline Equity Fund	5433687	1.04
18	Vanguard Emerging Markets Stock Index Fund Aseries of Vanguard International Equity Inde X Fund	5263619	1.00
	Total	186315450	35.55

Details of Depository Receipts (DRs)

Sl. No.	Type of Outstanding DR (ADRs, GDRs, SDRs, etc.)	No. of Outstanding DRs	No. of Shares Underlying  Outstanding DRs	Shares Underlying Outstanding DRs as % of Total No. of Shares
1	GDRs	6,46,82,364	6,46,82,364	12.34
	Total	6,46,82,364	6,46,82,364	12.34

BUSINESS DETAILS

Line of Business :

The Bank operates in four business segments, viz. Treasury, Corporate / Wholesale Banking, Retail Banking and Other Banking Operations.

GENERAL INFORMATION

No. of Employees :

11502 (Approximately)

Bankers :

Reserve Bank of India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
I Borrowings in India
i) Reserve Bank of India	0.000	0.000
ii) Other Banks	30359.380	22570.739
iii) Other Institutions and Agencies	31918.459	31457.460
iv) Unsecured Non-Convertible Redeemable Debentures/Bonds (Subordinated Tier-II Bonds)	8101.000	8601.000
v) Unsecured Non-Convertible Redeemable Non-Cumulative Subordinated Upper Tier II Bonds	3089.000	3089.000
II Borrowings outside India	21127.722	21101.937
Total	94595.561	86820.136

Banking Relations :	--
Auditors :
Name :	B S R and Company Chartered Accountants
Address :	Lodha Excelus, 1st Floor, Apollo Mills Compound, N. M. Joshi Marg, Mahalakshmi, Mumbai 400 011, Maharashtra, India
Solicitors :
Name :	Crawford Bayley and Company Solicitors and Advocates
Address :	State Bank Building, NGN Vaidya Marg, Mumbai – 400 023, Maharashtra, India
Associates :	· IndusInd Information Technology Limited (Fully divested on September 13, 2011) · IndusInd Marketing and Financial Services Private Limited
Subsidiaries :	· ALF Insurance Services Private Limited (Under Liquidation)

CAPITAL STRUCTURE

As on: 31.03.2013

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
522677706	Equity Shares	Rs.10/- each	Rs.5226.777 Millions
	Add: Forfeited 384200 Equity Shares	Rs.10/- each	Rs.1.921 Millions
	Total		Rs. 5228.698 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
CAPITAL AND LIABILITIES
Capital	5228.698	4677.021	4659.659
Employee Stock Options Outstanding	107.119	109.459	79.796
Reserves and Surplus	70966.719	42630.600	35762.663
Deposits	541167.150	423615.496	343653.712
Borrowings	94595.561	86820.136	55254.239
Other Liabilities and Provisions	20999.907	18107.985	16948.345
TOTAL	733065.154	575960.697	456358.414
ASSETS
Cash and Balances with Reserve Bank of India	32498.445	29035.762	24560.389
Balances with Banks and Money at Call and Short Notice	35988.879	26360.456	15685.600
Investments	196541.657	145719.461	135508.141
Advances	443206.100	350639.514	261656.471
Fixed Assets	7561.418	6567.985	5964.591
Other Assets	17268.655	17637.519	12983.222
TOTAL	733065.154	575960.697	456358.414
Contingent Liability	1349028.880	1031902.885	825561.577
Bills for Collection	63375.073	61509.964	50524.760

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2013	31.03.2012	31.03.2011
INCOME
Interest Earned	69832.323	53591.926	35893.574
Other Income	13629.608	10117.827	7136.615
TOTAL	83461.931	63709.753	43030.189
EXPENDITURE
Interest Expended	47503.662	36549.484	22128.649
Operating Expenses	17563.627	13429.956	10084.831
Provisions and Contingencies	7782.814	5704.194	5043.456
TOTAL	72850.103	55683.634	37256.936
PROFIT	10611.828	8026.119	5773.253
Profit brought forward	11875.901	7143.622	3915.140
AMOUNT AVAILABLE FOR APPROPRIATION	22487.729	15169.741	9688.393
APPROPRIATIONS Transfer to
a) Statutory Reserve	2652.957	2006.530	1443.313
b) Capital Reserve	83.641	86.319	11.004
c) Investment Reserve Account	4.031	5.163	6.912
d) Dividend (Proposed)	1570.860	1028.913	932.297
e) Corporate Dividend Tax	266.945	166.915	151.245
	4578.434	3293.840	2544.771
Balance transferred to Balance Sheet	17909.295	11875.901	7143.622
TOTAL	22487.729	15169.741	9688.393
EARNING PER EQUITY SHARE (Face value of ? 10/- per share)(Rupees)
Basic	21.83	17.20	13.16
Diluted	21.40	16.86	12.88

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG-TERM DEBT: NOT AVAILABLE

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	Yes
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	No
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

CASE DETAILS

Stamp No.:-

ITXAL/931/2012

Filing Date:-

27/06/2012

Reg. No.:-

ITXA/1125/2012

Reg. Date:-

04/10/2012

Petitioner:-	Commissioner of Income Tax – 2	Respondent:-	M/S Indusind Bank Limited
Petn.Adv.:-	Charanjeet Chanderpal	Resp.Adv.:-	Sanjiv Shah
District:-	Mumbai

Bench:-	Division
Status:-	Pre-Admission	Category:-	Tax Appeals
Next Date:-	10/11/2013	Stage:-
Coram:-	According To Sitting List

Act :-

Income Tax Act, 1961

Under Section:-

260A

FINANCIAL PERFORMANCE

The operating environment in the Indian economy witnessed significant turbulence throughout the year, incorporating worsening liquidity conditions and inflationary pressures coupled with volatility in currency exchange rates. During the year, RBI reduced Repo Rate to 7.50% from 8.50% and CRR rates were reduced to 4.00% from 4.75%.

During the year 2012-13, the Bank continued to leverage its business on the three performance planks of Productivity, Profitability and Efficiency, which helped the Bank to significantly improve its profitability.

The Bank’s Total Income grew by 31.00% to Rs. 83461.900 millions from Rs. 63709.800 millions, backed by improved business.

The sharp rise in profitability was the result of a healthy increase in core earnings of the Bank through Net Interest Income (NII) and robust growth in Non-Interest Income streams. Net Interest Income improved by 31.02% to Rs. 22328.700 millions from Rs. 17042.500 millions while Non-Interest Income rose to Rs. 13629.600 millions from Rs. 10117.800 millions, a rise of 34.71%.

The year 2012-13 has been one of sustained hardening of interest rates and shrinking of lending margins. The Yield on Advances remained steady at 13.77% during the year, even as the Cost of Deposits showed an increase to 8.49% as against 8.06% in the previous year (an increase of 43 basis points). However, the Net Interest Margin (NIM) increased to 3.43% during the year, as compared with 3.33% in 2011-12, owing to reduction in the total cost of funds.

Fee and Miscellaneous Income at Rs. 13629.600 millions as compared to Rs. 10117.800 millions in the previous year showed strong annual growth of 34.71%. Core Fee Income such as commission, exchange, fees on distribution of third-party products and earnings from foreign exchange business, etc. grew by 36% to Rs. 12393.400 millions from the level of Rs. 9132.400 millions last year.

The Bank expanded its branch network rapidly to reach 500 branches, as against 400 branches at the beginning of the year. Revenue per employee during the year remained steady at Rs. 3.126 millions.

Quality of the Bank’s assets remained stable, with Net Non-Performing Assets (Net NPAs) at 0.31% as at March 31, 2013 from 0.27% last year. The Provisioning Coverage Ratio (PCR) stood at 70.13% as compared to 72.72% previous year.

On the liabilities side, the emphasis continued to be on broad basing the deposit franchise. This task was accomplished by leveraging the expanded branch network and the pan-India marketing setup, offering innovative products and service propositions, sustained promotional campaigns, and enabling customers with alternate channels like ATMs, Internet Banking, etc.

The Bank introduced several new products and services for its chosen client segments, through its Transaction Banking Group and Global Markets Group. Deeper understanding of client requirements and the ability to put technology to efficient use formed the bedrock on which new products and service propositions were created.

The Bank kept up its focus on deepening as well as strengthening the fee-based income streams, resulting in a smart growth in non-interest income. Moving forward, the Bank plans to upscale the growth momentum through further enhancements in diverse revenue streams such as foreign exchange business, investment banking, structured trade and treasury products, distribution of third party products like mutual funds and insurance, international remittances, bullion operations and transaction banking activities, including the depository business and the commodity market business.

MANAGEMENT DISCUSSION AND ANALYSIS

MACRO ECONOMIC SCENARIO AND BANKING ENVIRONMENT

The macroeconomic environment remained complex and uncertain throughout the year. Developed markets continued to face weakness, thereby sending strong headwinds towards emerging markets. However, a strong combination of political and monetary support prevented further deterioration in the global economic environment. Monetary authorities in developed nations ensured that enough liquidity was made available to financial markets at near-zero interest rates. The impact on domestic market was mixed; while off-shore liquidity flowed into the Indian asset markets, rise in commodity prices brought into play conflicts in growth-inflation dynamics. Monetary policy response towards addressing growth concerns was constrained by the persistence of inflation and the growing Fiscal and Current Account Deficit risks that prevailed for most part of the year.

The economic data trend into FY13 was less than encouraging. GDP growth in Q3 slumped to 4.5% (against the peak of 9.4% in 2011) while Fiscal Deficit shot up to 6%. Headline WPI inflation averaged 7.3% and retail CPI inflation was in double digits.

Authorities reacted to the threat from global rating agencies by focusing on fiscal consolidation and monetary support to growth despite inflationary pressures. RBI infused permanent system liquidity with 0.75% cut in CRR and 1 % cut in SLR, and reduced policy rates by 1% to drive the operating policy rate of Repo rate from 8.50% to 7.50%. RBI also conducted Open Market Operations by purchasing sovereign bonds to the tune of over Rs. 1.5trillion to administer deficit system liquidity at 1% of NDTL.

While the slippage in Fiscal Deficit remained at 5.2%, the Current Account Deficit increased to 6.7% of GDP in 03 of FY13 widening trade deficit owing to weak exports and higher commodity prices. However, into end of FY13, there has been significant improvement to economic risk perception with headline WPI inflation down at 6% and sharp reversal in commodity prices releasing the pressure on trade deficit.

The Reserve Bank of India, in its FY14 Annual Policy Review, continued to stay cautious on inflation and policy reforms while recognizing the down-side risks on growth, although delivering a rate cut.

Despite contraction in the economy, most banks maintained productivity and efficiency levels through judicious management of ALM to protect NIM. While large banks with exposure to projects in core and sensitive sectors had credit-risk and provision-related risks, banks with working capital related assets managed to contain NPAs and provisions.

The road into FY 14 is not clear despite dilution in headwinds from the external sector. QE support in the US and in the Euro zone is likely to continue until the end of2014. The risk of sovereign rating downgrade is also diluted, in the wake of a strong commitment to restrict Fiscal Deficit below 5% and to step up GDP growth momentum. There cent developments in financial markets have diluted risks to inflation from fiscal consolidation, with the need to prevent growth emerging as a risk to fiscal consolidation.

This shift in dynamics may influence monetary policy action to shift its focus from inflation control to spurring growth momentum. There is a general expectation therefore for a move into further moderation in interest rates and a shift of system liquidity from deficit to surplus mode to revive investments and consumption. The lead and lag impact on the ALM is expected to enable banks to improve the financial intermediation margin for better profitability.

BANK'S PERFORMANCE DURING 2012-2013

BUSINESS PERFORMANCE

Despite the tough operating environment that prevailed through most part of the financial year, the Bank's Net Profit, after considering all expenses and necessary Provisions and Contingencies, rose by 32.22% to Rs. 10611.800 millions, as against Rs. 8026.100 millions in the previous year. The Operating Profit (before Depreciation and Provisions and Contingencies) was higher at 719128.900 millions as against Rs. 14479.900 millions in the previous year, a rise of 32.11 %.

The core earnings of the Bank through Net Interest Income improved by 31.02% to Rs. 22328.600 millions from Rs. 17042.500 millions. Yield on advances remained steady at 13.77%. The cost of deposits showed a sharper increase at 8.49% as against 8.06% in the previous year, an increase of 43 basis points. With the capital infusion of about Rs. 2.000 millions in December 2012, the Net Interest Margin (NIM) improved to 3.43% during the year, as compared with 3.33% in 2011 -12.

Fee and Miscellaneous Income during the year was Rs. 13629.600 millions, as compared to Rs. 10117.800 millions previous year, showed a strong growth of 34.71% on a y-o-y basis. Increase in Core Fee Income such as commission, exchange, fees on distribution of third-party products and earnings from foreign exchange business, etc. was equally spectacular at Rs. 12393.400 millions as against Rs. 9132.400 millions, registering 36% growth.

The Bank expanded its branch network rapidly to reach 500 branches, as against 400 at the beginning of the year. Revenue per employee during the year remained steady at Rs. 31lakhs.

Quality of the Bank's assets was stable, with Net Non-Performing Assets (Net NPAs) at0.31% at March 31. 2013 as against 0.27% the previous year. Provisioning Coverage Ratio (PGR) was adequately maintained at 70.13%, compared with 72.72% previous year.

During the year, the Bank allotted 30,67.705 shares, pursuant to the exercise of Options under its Employees Stock Option Scheme. 2007.

The Bank issued 5,21.00,000 equity shares of Rs. 10/- each at a price of Rs. 384.00 per share, aggregating to Rs. 20006.400 millions on December 5.2012 through a Qualified Institutions Placement (QIP).

Pursuant to the above, the Paid-up Share Capital and Share Premium Account increased by Rs. 551.700 millions and 119628.600 (Net) millions respectively.

As at March 31.2013, the Paid-up Equity Capital of the Bank consisted of 52,26.77.706 shares of Rs. 10/- each, excluding forfeited shares.

CONSUMER BANKING

During 2012-13, the Bank's Consumer Banking business showed healthy growth in revenue, a y-o-y rise of 47%. The Consumer CASA book grew by 27% and Fee Income grew by 44%, backed by aggressive growth in assets businesses.

The Bank's strategy on driving Savings book growth, continued to show results, with a50% y-o-y growth driven by the segmented client approach and a growing distribution network.

The Home Loan distribution tie-up with HDFC Limited has been well established now with the product being offered across all branches in the country. Housing Loan disbursals have grown by 130% during the financial year. The Loans against Property (LAP) book grew by250% during the year.

The Business Banking Group achieved growth of 67% in overall assets with substantial growth of 76% in Working Capital and 82% in Term Loan book.

The Bank continued to grow and scale-up the Credit Card business during this period by increasing distribution in new cities and introducing new product variants.

The Bank has introduced Pre-Paid Forex Cards to offer a full suite of banking and payment services to its growing affluent Retail client base. Forex cards are offered in 6currencies, viz.. US Dollar, Euro. Sterling Pound, Singapore Dollar. Australian Dollar and Saudi Riyal.

In line with the theme of "Responsive Innovation", the Bank launched Supersaver packs, a first of its kind in the Indian banking industry. The packs are “need-based" solutions wherein multiple financial products / services are packaged in a box and offer the client flexibility to choose across multiple options in a transparent and hassle-free manner, thereby saving cost and time.

The Bank successfully opened 100 new branches as part of the strategy of expanding banking network to different locations in the country. 125 new branches are planned to be opened during the current year in select geographies and 250 ATMs to be set up across key markets.

The Bank embarked upon a unique initiative to certify its frontline staff through the Indus Pro Certification Program, a 5-day intensive experiential program being conducted in collaboration with an international training organization.

The Bank focused on key service propositions such as client engagement and operating process management to enhance the quality of delivery of banking products and services. The Bank also enhanced the Contact Centre support through IVR and agents across four languages, including Hindi and English.

CREDIT CARDS

The Credit Cards business acquired by the Bank from Deutsche Bank on June 1, 2011 was seamlessly transitioned to the Bank. The business achieved profitability in the first year itself, and the focus of the business in 2012-13 was to take measured steps towards scaling it up.

The business made significant progress during the year through distribution leverage in new center’s where the Bank had branches but where the cards business was previously not present. The new cities wherein Credit Cards distribution was implemented during the year included Coimbatore, Luck now. Indore, Ahmedabad, Jaipur, Hyderabad. Kochi and Chandigarh. The business further deepened its distribution capabilities in the existing metropolitan cities, to leverage the opportunities of cross-sell to customers in these centers. The Bank also introduced new product variants during the year, which helped scale up bookings.

The business has added significantly differentiated value propositions during the year to continue to provide value to a discerning client profile in a competitive market, and has successfully managed to grow customer outstanding and spends while controlling risk.

The Bank today has a vibrant portfolio of cards from both Visa and MasterCard. The business has added strong Point-of-Sale EMI programs during the period and has followed the EMV Chip-based issuance strategy to provide enhanced transaction safety. The success of the portfolio transition effort from Deutsche Bank to the Bank can be exemplified from the fact that despite the change in brand, customer receivables from the acquired portfolio have grown during the period.

The business has focused on enhanced service delivery and strong client engagement tools to ensure that service forms the key differentiator in the marketplace. With sophisticated products, catering to affluent segments and a strong delivery platform in place, the business is well placed to further leverage the strong branch network and seizing of the strong cross-sell distribution opportunities.

CONSUMER FINANCE

The Consumer Finance Division (CFD) extends funding for a wide range of vehicles /equipment which includes Commercial Vehicles, viz.. Heavy. Light and Small Vehicles used both for goods and passenger applications, Passenger cars, Utility vehicles, two-wheelers and construction equipment such as Excavators. Loaders, Tippers. Cranes, etc. Finance is extended for both new and used categories in all the above segments.

The thrust product during the year was used vehicles as this product line yields high returns. During the year, used vehicle loans disbursed was Rs. 24260.000 millions as against Rs. 17620.000 millions, a growth of 38%. The focus during the year was on optimizing the product mix to maximize yields, while maintaining portfolio quality despite the industry slowdown.

Aggregate disbursements made during the year rose by 18% to Rs. 148080.000 millions as against Rs.125990.000 millions in the year 2011-12. New loan accounts added during the year numbered 8.40 lakhs, as against 7.10 lakh loans added in 2011-12. The growth in fresh loans disbursed was healthy particularly in the background of slowdown in the vehicle segment. Total Industry volume growth (all categories) was a mere 2.6%' and a negative growth of 2%' in the commercial vehicles segment. {'Source: SIAM data).

This Division also earned commission income of Rs. 233.100 millions, primarily through distribution of insurance products of Cholamandalam MS General Insurance, strategic partner of the Bank for banc assurance under the General Insurance segment.

The operations of this Division are efficiently supported by document storage and retrieval facility at the Bank's Karapakkam Unit (near Chennai), which handles loan document processing and record maintenance. This center handled 1.3 million customer loan booking and closure transactions and 18 million customer service / accounting transactions during the year 2012-13.

The Data Centre, also located at Karapakkam, has state-of-the-art facilities in terms of data / equipment protection mechanisms and is equipped with access rights with sensors to monitor movement within the Centre.

During the year. Hand Held Terminals were deployed pan-India, to enhance process efficiency and facilitate real-time collection monitoring in collection activity.

CORPORATE AND COMMERCIAL BANKING GROUP

• CORPORATE AND INVESTMENT BANKING GROUP

The Corporate and Investment Banking group (C and l) covers large corporate clients and also houses the Investment Banking Team of the Bank. The Bank is a Category I Merchant Banker.

CORPORATE BANKING

Corporate and Investment Banking (C and l) provides Universal Banking Solutions to large Indian and multinational corporates. Over the last 4 years, this unit has become a banker to almost all the well-known industrial houses of the country, and actively participates in their short term and longer term financing requirements.

• The Group specializes in executing structured solutions especially in Trade Finance and Foreign Exchange hedging for its clients. This involves drawing upon the knowledge of a team of specialists and delivering solutions to the client, tailor-made to their needs.

• The Group increased penetration in the top corporate groups through a variety offended and non-funded transactions including trade products, foreign exchange products and Investment Banking activities.

• The Group consolidated on its strong reputation as a provider of innovative solutions to complex funding requirements, with quick turnaround times.

INVESTMENT. BANKING (IB)

• IB Fee grew by over 80% as a result of the Group's strong origination skills and disciplined execution.

• Investment banking at the Bank has 3 main businesses: Debt Capital Markets (DCM). Advisory (M and A and Private Equity) and Structured and Project Finance. This positions the Bank as a partner through the entire life-cycle of growth-oriented corporates, providing both debt and equity solutions.

• The DCM Desk syndicates Project and Capital Expenditure loans for corporates across banks and financial institutions. This business grew well as the Bank was successfully able to leverage relationships and get several prestigious loan syndication mandates.

• Structured / Project Finance deals were successfully executed in sectors like Healthcare. Infrastructure and Renewable Energy.

• The Advisory Team was set up during the year and is aimed at providing M and A and Private Equity advisory services. Due to strong relationships, the Bank has already been able to secure profitable mandates in this space.

• The year also saw the Bank invest in issues of Commercial Paper and Bonds, which were sold down to capitalize on the opportunity of making capital gains.

COMMERCIAL BANKING GROUP

Set up with a view to target the 'sweet spot' of the Indian corporate space, the Commercial Banking Group focuses on companies in the fast growing Mid-Market segments. The Bank's initiatives in Supply Chain Finance and Agri Business Finance are also housed within this business unit.

The broad business theme of the Group is centered on the following:

• Offering a full bouquet of customized products to clients, for their working capital requirements.

• Increasing the client-base to create a sustainable earnings stream for the Bank.

• Increased cross-sell through alignment of Relationship Managers and the Product Groups, i.e.. Transaction Banking, Global Markets and Investment Banking.

• Offering structured solutions through Transactional and Investment Banking products to clients for specific needs.

• Meeting the stipulated PSL requirements through its Inclusive Business Group and Agri Business Group initiatives.

THE HIGHLIGHTS OF THE YEAR ARE:

Focus had been laid on building a sustainable working capital client portfolio, and the year saw further strengthening of this position. The Group's Loan Book crossed Rs. 7.000crores.

Special emphasis was laid on concluding structured Foreign Exchange (FX) as well as Trade Finance deals, thus showcasing the Bank's capability to offer innovative customized solutions.

The Inclusive Banking arm of the Group launched the "Partnership Model" with Microfinance Institutions providing micro loans to weaker sections of society. This Group actively works with more than 6,00,000 clients, all of which are women, providing them with micro loans for productive purposes.

For providing specialized services to clients in the agriculture segment, an integrated Agri Business Group was initiated comprising specialized professionals to cover all segments of the agriculture finance spectrum. This Division is scaling up innovative and compliant products such as Farmer / JLG commodity finance, Agri Projects finance and Agri Infrastructure finance.

This Group also houses the Commodity Finance Team, which is focused on specific banking requirements of producers and traders of agricultural products and works on a fully collateralized basis, managing financing against more than 35 commodities through a network of collateral managers in the key agricultural belts of the country.

Supply Channel Finance division of the Group works with over 550 dealers of automobiles and other products and provides short term inventory finance specially designed for certain industries.

FINANCIAL INSTITUTIONS AND PUBLIC SECTOR UNIT (FIPS)

The Financial Institutions and Public Sector Group, provides banking services to Public Sector Undertakings (PSUs), both Central and State, Government Bodies and financial institutions like Banks, Insurance Companies and Mutual Funds. The Group manages business from these client segments through a team of focused Relationship Mangers located across the country. The broad focus area of the group, during the year, was to develop holistic relationships with its clients, and increasing product penetration. FIPS revenue showed healthy growth, a y-o-y rise of 56%.

A large part of the Bank's wholesale deposit base is managed by this Group. The deposit portfolio managed by this Group grew by 38% during the year. The FIPS Group has played a key role in de-risking the Bank's liquidity profile and ensured uninterrupted liquidity at all times.

Public Sector business of the Group showed healthy growth. The Public Sector unit of the Group now has relationships with more than 130 PSU clients including Maharatna and Navratna PSUs. The Group successfully executed several collection mandates for Bonds and Dividend payments from key PSU relationships, and has been appointed as the leading cash management banker for several of its clients.

The Correspondent Banking business which is also housed in this Group successfully managed relationships with over 350 correspondent banks across the globe. These relationships in different geographies support the scaling up of the Trade and Treasury business of the Bank, and ensure seamless execution of cross-border deals. The Group also successfully raised foreign currency resources from key correspondents which helped support the lending book in Foreign Currency, thus assisting in Bank's liquidity needs and facilitating reduction in costs.

GLOBAL MARKETS GROUP

The Global Markets Group (GMG) has three broad functional units, viz.. Money Markets and Balance Sheet Management; Trading in Rates and Foreign Exchange; and Corporate Risk Solutions. The Group achieved overall revenue growth of 33% during the year.

The Money Markets and Balance Sheet Management Unit manages the regulatory requirements relating to Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR), resource mobilisation and liquidity management, Asset-Liability Management (ALM) and Funds Transfer Pricing (FTP) in order to manage and mitigate market and liquidity risks in the Balance Sheet.

The year started in the backdrop of tight liquidity with elevated interest rates across all tenor segments, with Certificate of Deposit issuance at rates higher than 10%, and the10-year benchmark Government Securities yield a tad higher than 8.75%. RBI eased the cycle from mid-April with a 50 bps cut in Policy Rate and an assurance to keep adequate liquidity in the system, which resulted in steady and gradual reduction in term structure of interest rates across all segments with the short term liability curve coming off by200 bps in first half of the fiscal.

The slump in Deposit growth rate coupled with demand supply mismatches drove the short liability curve by 100 to 150 bps during mid-March 2013. The liquidity and resource mobilisation strategy proactively addressed the changing domestic conditions to have a significant cost reduction in Bank's sources of funds with a good mix of term deposits, market borrowings and refinance. In spite of the slow movement in interest rate cycle witnessed during the year, the Trading Desk managed to generate trading profits by dynamic entry / exit strategies backed by smart short-term interest rate views and brought in improvement in the yield of core SLR portfolio.

The Trading Desk in Rates and Foreign Exchange aims to maximize the Bank's revenue by taking proprietary positions In the Rupee market as well as in G-7 currencies, juxtaposed to its timely entry / exit into the currency and interest rate markets. The Trading Desk has curtailed its back-to-back covering of risk on swaps during the year and commenced housing the IRS and MIFOR risks. This Desk also provides competitive rates to the client-facing team in order to enhance client value, besides using trading techniques in increasing the revenues in the inter-bank market.

The client-facing part of markets is broadly segmented into three parts - the CRS Team (Client Risk Solutions), the SRS Team (Structured Risk Solutions) and the Bullion Team.

The Client Risk Solutions (CRS) Desk advises institutional and corporate client’s on their FX- and Interest Rate-related exposures, and provides tailor-made solutions to hedge such exposures. The spectrum of advisory services includes domestic as well as cross-border transaction flows and related risk management of the exposures on clients' Balance Sheet.

CRS covers the India geography through Dealers / Dealing Centers at Ahmedabad, Bangalore. Coimbatore, Chennai, Gurgaon, Hyderabad, Jaipur, Kolkata, Luck now, Ludhiana and Mumbai. It has extended its geographic reach via Fast Forex, the internet platform, to a wider client-base and branch network, thereby ensuring faster delivery and access to real-time market prices.

The Structured Solutions Team provides structured risk management solutions and advisory to Bank's corporate clients using various derivatives products.

The Bullion Team helps clients of that segment with all hedging requirements for the metal.

During the year, the CRS Group successfully handled various large onshore FX flow transactions of corporates and Financial Institutions clients as well as a few large cross-border trades related to capital market flows, with smooth execution having minimal impact to the FX market. SRS Desk's timely advisory on structured derivatives solutions helped increase mindshare amongst large and medium corporate and institutional clients and this Group saw a healthy uptick in client volumes. Overall the client group saw a 46%growth in revenues y-o-y along with addition of large and medium blue chip clients.

The Bank has well laid-out operational policy guidelines, risk management policies (including Client Suitability Policy) and appropriate systems support to monitor transactions and risk on real-time basis.

The sustained growth of the Global Markets Group and its forays into new products created increasing need for automation and necessitated up gradation of the current technological environment. The Bank placed an order to acquire an integrated Treasury application, interfaced with the Risk Monitoring System. This Treasury solution will be implemented, after stringent testing, in phases, in the course of the current financial year.

Banking Operations

The Bank has strengthened the policy framework on "Know the Customer" (KYC) norms and "Anti Money Laundering" (AML) measures from time to time, in line with the policies of Reserve Bank of India. The Bank has implemented a simplified procedure of" Know the Customer" which will benefit lower income group persons to open accounts with minimal documentation.

The Bank had implemented a state-of-the-art Workflow and Imaging System during the year2009-10. The System has been implemented in the Account Opening process, automated the Fixed Deposits opening and renewals. Trade Finance-related processing. Third Party products sales operations and centralization of Branch Expenses processing. The plan is to migrate further processes on to the platform as per the operational needs.

The System enables faster turnaround times, movement of work from branch locations across the country to the Central Operations Unit in real time, thus reducing the time it took for physical forms to arrive through courier. This has helped in freeing up manpower at the branches to tend to customer service as well as help provide online status of processing of customer requests / new applications.

As mandated in RBI directives, the Bank has undertaken review of risk categorization of all customers' accounts.

The Bank is a member of Banking Codes and Standards Board of India (BCSBI), which was set up to ensure that banks in India adhere to a voluntary Code, which sets minimum standards for fair treatment to customers availing of banking services. The Bank has made a commitment to adhere to all the provisions of the Code prescribed by BCSBI. The Bank has implemented almost all provisions of the Code. The Code is displayed at all the branches and the same is also hosted on their website in thirteen languages.

In June 2008, the Hon'ble Finance Minister had released the "Code of Commitment to Micro and Small Enterprises" (MSE Code). MSE Code is also a voluntary Code, which sets minimum standards of banking practices for banks to follow when they are dealing with Micro and Small Enterprises as defined in the Micro. Small and Medium Enterprises Development (MSMED) Act, 2006. It provides protection to MSE customers and explains how banks are expected to deal with customers in day-to-day operations and in times of financial difficulty. BCSBI has revised the MSE Code on August 09, 2012. The revised MSE Code was duly approved in Board of Directors' meeting in October 2012and disseminated to branches.

The Bank has also formulated the Policy on 'Financing to Micro. Small and Medium Enterprises', and the same is made available on the Bank's website.

Centralized clearing has been implemented in Ahmedabad, Bangalore. Bhubaneswar, Chandigarh, Chennai, Coimbatore, Delhi. Hyderabad, Jaipur, Kochi, Kolkata, Ludhiana, Mumbai, Pune, Salem. Surat. Thiruvananthapuram and Vadodara for quicker and efficient processing. It will be the Bank's endeavor to bring more centers under Centralised Clearing in the near future. Automated ECS has been implemented at major centers.

Cheque Truncation System (CTS), which was implemented in New Delhi by RBI, was operationalized in March 2008 and has been fully stabilized and the Bank is participating in clearing through CTS. Last year, the Bank had stabilized CTS operations in Chennai, Bangalore and Coimbatore through National Payment Corporation of India (NPCI). During the year 2012-13, the Bank successfully implemented CTS operations in Chandigarh, Kolkata and Ludhiana. Some branches in the States of Andhra Pradesh, Kerala and Tamil Nadu are individually participating through National Payment Corporation of India.

The Bank has improved internal controls and compliance through the following:

• Separate and independent Compliance function has been set up for Bank-wide compliance;

• Vigilance function has been operational;

• Expenses management software has been deployed at all branches for facilitating cost control:

• Standard Operating Procedures have been defined for processes at branches to ensure consistency of delivery, with expanding branch network;

• Branch Monitoring Unit is operative for regular monitoring of branch operations;

• Voucher verification process has been operationalized for checking all the entries posted by the branches; and

• The Process Adherence and Quality function has been operationalized for attaining uniformity in processes followed by branches, to minimize operational risk.

The Bank has revised and adopted a "Comprehensive Policy", in pursuance of RBI advices, on settlement of claims in respect of deceased depositors. The policy covers all types of deposits, and has simplified the procedure for settlement.

The Bank has adopted the "Best Practice Code", relating to transaction processing, with the objective of documenting the procedures in line with national and international best practices.

The Bank has put in place a "Deposit Policy" and a "Fair Practice Code". While the former outlines the guiding principles in respect of various products of the Bank, the terms and conditions governing the operations of the accounts and the rights of depositors, the Fair Practice Code is a voluntary code establishing standards to be followed by all their branches in their dealings with the customers.

The Bank has framed the "Citizen's Charter" to promote fair banking practices and to give information in respect of various activities relating to customer service.

The Bank has put in place "Compensation Policy" as part of the commitment to customers to compensate them in case of the Bank being unable to meet the service levels committed to the customers. The main objective of the policy is to establish a system where by the Bank shall compensate the customer for any direct and actual loss by way of internal loss / payment of charges by customer due to deficiency in service, to the extent mentioned in the policy. The policy is based on principle of transparency and fairness in dealings with customers.

The Bank has framed the "Unclaimed Deposit Policy" based on RBI guidelines with objective of classification of unclaimed deposits and setting up the grievance redressal mechanism for quick resolution of complaints and record-keeping.

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER / HALF YEAR ENDED SEPTEMBER 30, 2013

(Rs. In Millions)

Sr. No.	Particulars	Quarter ended 30.09.2013 (Unaudited)	Quarter ended 30.06.2013 (Unaudited)	Half year 30.09.2013 (Unaudited)
1.	Interest Earned	201.85.700	19122.000	39307.700
	(a)+(b)+(c)+(d)
(a)	Interest / Discount on Advances / Bills	16113.100	15115.900	31229.000
(b)	Income on Investments	3654.700	3673.500	7328.200
(c)	Interest on balances with Reserve Bank of India and other interbank funds	416.400	330.100	746.500
(d)	Others	1.500	2.500	4.000
2.	Other Income	4167.300	4706.100	8873.400
3.	Total Income (1+2)	24353.000	23828.100	48181.100
4.	Interest Expended	13186.300	12327.200	25513.500
5.	Operating Expenses	5287.500	5084.900	10372.400
(i)	Employees Cost	2019.800	1936.100	3955.900
(ii)	Other Operating Expenses	3267.700	3148.800	6416.500
6.	Total Expenditure (4+5) Excluding Provisions and Contingencies	18473.800	17412.100	35885.900
7.	Operating Profit Before Provisions and Contingencies (3-6)	5879.200	6416.000	12295.200
8.	Provisions (other than tax) and Contingencies	888.600	1320.600	2209.200
9.	Exceptional items	--	--	--
10.	Profit(+) / Loss(-) from Ordinary Activities before Tax (7-8-9)	4990.600	5095.400	10086.000
11.	Tax Expense	1688.300	1747.000	3435.300
12.	Net Profit (+) / Loss (-) from Ordinary Activities after Tax (10-11)	3302.300	3348.400	6650.700
13.	Extraordinary items (net of tax expense)	--	-	--
14.	Net Profit for the period (12-13)	3302.300	3348.400	6650.700
15.	Paid up Equity Share Capital (Face Value: Rs.10/- each)	5243.300	5234.400	5243.300
16.	Reserves excluding revaluation reserves
17.	Analytical Ratios
(i)	Percentage of shares held by Government of India	Nil	Nil	Nil
(ii)	Capital Adequacy Ratio (%)
	Basel II	13.64	14.42	13.64
	Basel III	14.58	14.85	14.58
(iii)	Earnings per share - (Basic and Diluted) (Rs.)
a)	Basic EPS before / after Extraordinary items (not annualized)	6.30	6.41	12.71
b)	Diluted EPS before / after Extraordinary items (not annualized)	6.19	6.29	12.48
(iv)	NPA Ratios
a)	Gross NPA	5463.900	5052.300	5463.900
	Net NPA	1092.400	1013.600	1092.400
b)	Gross NPA (%)	1.11	1.06	1.11
	Net NPA (%)	0.22	0.21	0.22
c)	Return on Assets (%) (annualized)	1.74	1.83	1.78
18.	Public Shareholding
	- No. of Shares	444240045	443350471	444240045
	- Percentage of Shareholding	84.76	84.73	84.76
19.	Promoters and Promoter Group Shareholding
a)	Pledged / Encumbered
	- Number of Shares	Nil	Nil	Nil
	- Percentage of Shares (as a % of the total shareholding of promoter and promoter group)	Nil	Nil	Nil
	- Percentage of Shares (as a % of total share capital)	Nil	Nil	Nil
b)	Non-encumbered
	- Number of Shares	79899984	79899984	79899984
	- Percentage of Shares (as a % of the total shareholding of promoter and promoter group)	100.00	100.00	100.00
	- Percentage of Shares (as a % of total share capital)	15.24	15.27	15.24
Note: There has been no material change in the accounting policies adopted during the quarter and half year ended September 30, 2013 as compared to those followed for the year ended March 31, 2013. The working results for the quarter and half year ended September 30, 2013 have been arrived at after considering provision for standard assets, non-performing assets (NPAs), depreciation on investments, income-tax and other usual and necessary provisions. The above financial results for the quarter and half year ended September 30, 2013 were subjected to a "Limited Review" by the Statutory Auditors of the Bank. A clean report has been issued by them thereon. These financial results were reviewed by the Audit Committee and subsequently have been taken on record and approved by the Board of Directors at its meeting held on October 14, 2013. In terms of RBI circular DBOD.BP.BC.No.41/21.04.141/2013-14 dated August 23, 2013 on “Investment portfolio of banks – Classification, Valuation and Provisioning”, the Bank has opted to amortise the depreciation on the Available For Sale (AFS) and Held For Trading (HFT) portfolios on each of the valuation dates in the current financial year in equal installments during the financial year 2013-2014. Accordingly, of the total depreciation of Rs. 1145.800 millions as at September 30, 2013, the Bank has recognized Rs. 163.700 millions in the profit and loss account of current quarter. In accordance with its accounting policy consistently adopted which is more conservative compared with RBI guidelines, the Bank continues to ignore appreciation on its AFS and HFT portfolio. The gross appreciation in the AFS & HFT portfolio amounted to Rs. 433.700 millions as at September 30, 2013. In line with the Policy approved by the Board of Directors, the Bank had created a floating provision for advances amounting to Rs.500.000 millions during the quarter ended June 30, 2013. This provision has been made without reference to any specific NPA and is in excess of the minimum requirements prescribed by RBI under Income Recognition and Asset Classification (IRAC) norms. The said floating provision has been considered while computing the position of net NPAs. In terms of RBI circular DBOD.No.BP.BC.88/21.06.201/2012-13 dated March 28, 2013, banks have been advised to disclose capital ratios computed under Basel III Capital Regulations from the quarter ended June 30, 2013. Accordingly, corresponding details for previous period / year are not applicable. In terms of RBI circular DBOD.No.BP.BC.2/21.06.201/2013-14 dated July 01, 2013 covering guidelines on Pillar 3 disclosures under Basel III capital requirements, banks are required to make first set of half yearly disclosures relating to the composition of capital with effect from September 30, 2013. Accordingly, Pillar 3 Disclosures under the Basel III Capital Regulations have been placed on the website of the Bank which can be accessed at the following link. During the quarter and half year ended September 30, 2013, the Bank allotted 8,89,574 shares and 14,62,323 shares respectively, pursuant to the exercise of stock options by certain employees. The position of investor complaints is as under: No. of complaints pending resolution at the beginning of the quarter 2 ; received during the quarter 30 ; resolved during the quarter 31 ; closing position 1. Previous period / year figures have been regrouped / reclassified, where necessary to conform to current period / year classification.

SUMMARISED BALANCE SHEET

(Rs. In Millions)

	As on 30.09.2013 (Unaudited)
CAPITAL AND LIABILITIES
Capital	5243.300
Employee Stock Options Outstanding	105.900
Reserves and Surplus	7789.100
Deposits	530577.300
Borrowings	139946.800
Other Liabilities and Provisions	20562.000
TOTAL	704224.400
ASSETS
Cash and Balances with Reserve Bank of India	28789.900
Balances with Banks and Money at Call and Short Notice	26869.300
Investments	194130.400
Advances	489680.600
Fixed Assets	7790.700
Other Assets	26963.500
TOTAL	774224.400

SEGMENT REPORTING FOR THE QUARTER ENDED SEPTEMBER 30, 2013

(Rs. In Millions)

Particulars	Quarter ended 30.09.2013 (Unaudited)	Quarter ended 30.06.2013 (Unaudited)	Half year 30.09.2013 (Unaudited)
(a) Segment Revenue
i) Treasury Operations	5310.100	6288.000	11598.100
ii) Corporate / Wholesale Banking	9468.300	9202.500	18670.800
iii) Retail Banking	13420.500	12026.700	25447.200
iv) Other banking Business	57.600	61.500	1.191
Total	28256.500	27578.700	55835.200
Less : Inter-segment Revenue	(3903.500)	(3750.600)	(7654.100)
Total Income	24353.000	23828.100	48181.100
(b) Segment Results
i) Treasury Operations	404.900	1365.700	17706.00
ii) Corporate / Wholesale Banking	1667.700	1637.600	3305.300
iii) Retail Banking	4022.300	3612.600	7634.900
iv) Other banking business	17.200	18.500	35.700
Total	6112.100	6634.400	12746.500
Unallocated Revenue	--	--	--
Unallocated Expenses	(232.900)	(2.184)	(451.300)
Operating Profit	5879.200	6416.000	12295.200
Less: Provisions & Contingencies	(888.600)	(1320.600)	(2209.200)
Net Profit before tax	4990.600	5095.400	10086.000
Taxes including deferred Taxes	(1688.300)	(1747.000)	(3435.300)
Extraordinary Profit / loss	--	--	--
Net Profit	3302.300	3348.400	6650.700
c) OTHER INFORMATION:
Segment Assets
I) Treasury Operations	215411.000	188154.800	215411.000
ii) Corporate / Wholesale Banking	175584.000	174401.500	175584.000
iii) Retail Banking	353544.800	351172.100	353544.800
iv) Other banking business	--	--	--
Unallocated assets	29684.600	23582.000	39684.600
Total Assets	774224.400	737310.000	774224.400
Segment Liabilities
I) Treasury Operations	141662.800	78918.100	141662.800
ii) Corporate / Wholesale Banking	335302.700	356305.700	335302.700
iii) Retail Banking	201781.600	208691.300	201781.600
iv) Other banking business	--	--	--
Unallocated liabilities	12339.000	13694.000	12339.000
Capital & Other Reserves	83138.300	79701.300	83138.300
Total Liabilities	774224.400	737310.400	774224.400

PRESS RELEASE:

INDUSIND BANK Q2 NET PROFIT UP BY 32% TO 3302.300 MILLIONS CORE FEE INCOME INCREASES BY 32%; NII UP BY 37%

Highlights Q2 FY 2014

I. Operating Profit up by 40%

II. Non Interest Income up by 30 %

III. Return on Assets at 1.74%

IV. Provision Coverage Ratio at 80.01%

Mumbai, October 14, 2013: The Board of Directors of IndusInd Bank Ltd., today approved and adopted its Unaudited Financial Results for the second quarter and first half-year ended September 30, 2013.

Key Financials:

Particulars (Rs Millions )	Ql FY 14	Q1 FY 13	YoY growth (%)	Hl FY 14	H1 FY 13	YoY growth (%)
Net Profit	330.23	250.25	32%	665.07	486.51	37%
Operating Profit	587.92	419.82	40%	1229.52	823.85	49%
Net Interest Income	699.94	509.74	37%	1379.42	993.84	39%
Core Fee Income	389.48	296.10	32%	741.05	565.14	31%
Non Interest Income	416.73	320.49	30%	887.34	639.27	39%

Key Ratios:

Particulars (in %)	Q1 FY 14	Q1 FY13
Net Interest Margin	3.65	3.25
Return on Assets	16.66	20.45
Return on Equity	1.74	1.56
Capital Adequacy Ratio(CAR)- with Accrued Profit	80.01	72.09
Net NPA (%)	0.22	0.29

Performance highlights for the quarter ended September 30, 2013:

·

· Net Profit for the quarter was Rs.3302.300 millions as against Rs.2502.500 millions in the corresponding quarter of the previous year, showing a growth of 32%.

· Operating Profit for the quarter was Rs.5879.200 millions as against Rs.4198.200 millions in the corresponding quarter of the previous year, showing a spectacular growth of 40%.

· Net Interest Income (NII) was Rs.6999.400 millions as compared to Rs.5097.400 millions in the corresponding quarter of the previous year, registering robust growth of 37 %.

· Core Fee Income for the quarter was Rs.3894.800 millions as against Rs.2961.000 millions in the corresponding quarter of the previous year, showing a consistent growth of 32 %.

· Non Interest Income for the quarter was Rs.4167.300 millions as against Rs.3204.900 millions in the corresponding quarter of the previous year, showing a growth of 30%.

· Net Interest Margin (NIM) for the current quarter was 3.65 % as against 3.25% in the corresponding quarter of the previous year.

Performance highlights for the 6-month period ended September 30, 2013:

· Net Profit for the half-year ended September 30, 2013 was Rs.6650.700 millions as against Rs.4865.100 millions in the corresponding period of previous year, up 37%.

· Operating Profit for the half-year ended September 30, 2013 was Rs.12295.200 millions as against Rs. 8238.500 millions in the corresponding period of the previous year, up 49 %.

· Net Interest Income (NII) was Rs.13794.200 millions as compared to Rs.9938.400 millions in the corresponding period of the previous year, up 39%.

· Core Fee Income was Rs.7410.500 millions as against Rs.5651.400 millions in the corresponding period of the previous year, showing a consistent growth of 31 %.

· Non Interest Income was Rs.8873.400 millions as against Rs.6392.700 millions in the corresponding period of the previous year, up by 39 %.

· The CASA (Current Accounts-Savings Accounts) ratio improved to 31.76% against 27.98%.

· Gross NPA in current Q2 is at 1.11 % as against 1.03% in the previous year Q2. The net NPA has fallen to 0.22% in current Q2 as against 0.29% in the previous Q2.

· Increase in branch network from 441 Branches and 796 ATMs the previous year to 560 branches and 1025 ATMs this year as on 30^th September, 2013.

· Total Advances as on September 30, 2013 were at Rs.489680.000 millions as compared to Rs.394270.000 millions in the corresponding period of the previous year, recording a growth of 24 %

· Total deposits as on September 30, 2013 were at Rs.530580.000 millions as compared to Rs. 477650.000 millions in the corresponding period of the previous year, up by 11%.

· Capital Adequacy Ratio (as per BASEL III Capital regulations) as on September 30, 2013 was 14.58 % as against 11.76% (as per BASEL II Capital regulations) at the end of September 30, 2012.

INDUSIND BANK OPENS TWO NEW BRANCHES AT VADODARA - PLANS TO EXPAND REACH ACROSS GUJARAT

IndusInd Bank, one of the fastest growing new-generation private sector banks in the country has opened two new branches in the Gotri Main Road and Nizampura area of Vadodara. With the inauguration of two new branches in Vadodara, IndusInd Bank now has five branches in Vadodara and overall thirty six branches in the state of Gujarat. The bank also announced its plans to further strengthen its presence and customer reach in Gujarat.

The new branches were inaugurated by Shri Bharatbhai Patel (Mayor- Baroda) and Shri Jitendra Bhai Sukhadia (MLA- Baroda). The opening of new branches in Vadodara will thus extend the bank's reach in this region. The Bank perceives the state of Gujarat as an important market in the overall growth plans of the Bank.

Mr. Soumitra Sen, Head Branch Banking, IndusInd Bank said, "Opening branches in Vadodara is a step ahead in our strategy to extend the Bank's reach and offer world-class consumer banking experience across India. Considering the vast potential of banking requirements yet to be explored, IndusInd Bank has planned further branch expansion in Gujarat. IndusInd Bank intends to open four more branches in Vadodara. The new branches in the Vadodara aim at helping customers manage and grow their wealth while availing the responsive and innovative products and services of the bank."

Other than Vadodara, IndusInd Bank is focusing on expanding its reach across promising regions which include Patna, Lucknow, Gurgaon, Nagpur and Noida. The new branches will allow the customers to avail IndusInd Bank's unique customer propositions along with full range of services ranging from Saving & Current Accounts, Loan products to Wealth Management and Credit cards. Innovative facilities such as "My Account, My Number", "Choice Money ATM' and 'Cash on Mobile' among others would be available to the customers from day one.

INDUSIND BANK MAY SLIP TO RS 426: SP TULSIAN

SP Tulsian of sptulsian.com told CNBC-TV18, "November series has started on a subdued note for the private sector banks; if you see for the movement for three days; the entire focus has shifted on the public sector undertaking (PSU) banks. the large investors are maintaining negative views in the PSU banks and rightly so because if the PSU banks are earnings Rs 1,000 crore as interest and Rs 500 crore plus is the provision while in case of the private sector banks it is less than 20 percent. So, you cannot allow 50 percent of the interest income having earned whether in a quarter or in a year to allow to go for the provisions."

"If you take a call on all five stocks, the private sector banks; HDFC Bank, Axis Bank, ICICI Bank, YES Bank and IndusInd Bank then IndusInd is definitely the most expensive amongst all exclude HDFC Bank. But if you take on a price to book or maybe on a price to earnings (PE) multiple, it is at 15-16 times price to book at 2.75 but apart from that the technical call is that because none participation or lack of interest is seen on the private sector banking stocks and even the profit booking is likely to come at these levels, you look to enter again at lower level," he added.

"For IndusInd Bank I have given a target of Rs 426 and again at that point of time as a technical trader you again look to re-enter but right now I will be keeping my negative stance on all private sector banks including Axis Bank, ICICI Bank or IndusInd Bank and YES Bank."

INDEX OF CHARGES: NO CHARGES EXIST FOR THE COMPANY

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 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.61.96
UK Pound	1	Rs.101.14
Euro	1	Rs.85.33

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		63

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.