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HISTORY OF INDUSIND BANK INDUSIND BANK LTD was incorporated in August 1994 in the name of 'INDUSIND Bank Limited

',with its registered office in Mumbai, India. INDUSIND Bank commenced operations as a Scheduled Commercial Bank in January 1995. If ever there was a man with a mission it was Hasmukhbhai Parekh, Founder and ChairmanEmeritus, of INDUSIND Group. INDUSIND BANK LTD was amongst the first to set up a bank in the private sector. The bank was incorporated on 30th August 1994 in the name of „INDUSIND Bank Limited‟, with its registered office in Mumbai.It commenced operations as a Scheduled Commercial Bank on 16th January 1995. The bank has grown consistently and is now amongst the leading players in the industry . INDUSIND is India's premier housing finance company and enjoys an impeccable track record inIndia as well as in international markets. Since its inception in 1977, the Corporation hasmaintained a consistent and healthy growth in its operations to remain the market leader inmortgages. Its outstanding loan portfolio covers well over a million dwelling units. INDUSIND has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities. With its experience in the financial markets, a strong market reputation, large shareholder base and unique consumer franchise, INDUSIND was ideally positioned to promote a bank in the Indian environment In a milestone transaction in the Indian banking industry, Times Bank was merged with INDUSIND Bank Ltd., effective February 26, 2000.

MISSION I. World Class Indian Bank II. Benchmarking against international standards. III. To build sound customer franchises across distinct businesses IV. Best practices in terms of product offerings, technology, service levels, risk management and audit & compliance VISION STATEMENT OF INDUSIND BANK The INDUSIND Bank is committed to maintain the highest level of ethical standards, professional integrity and regulatory compliance. INDUSIND Bank‟s business philosophy is based on four core values such as:1. Operational excellence. 2. Customer Focus. 3. Product leadership. 4. People. The objective of the INDUSIND Bank is to provide its target market customers a full range of financial products and banking services, giving the customer a one-step window for all his/her requirements. The INDUSIND Bank plus and the investment advisory services programs have been designed keeping in mind needs of customers who seeks distinct financial solutions, information and advice on various investment avenues. BUSINESS STRATEGY I. Increasing market share in India‟s expanding banking II. Delivering high quality customer service III. Maintaining current high standards for asset quality through disciplined credit risk management IV. Develop innovative products and services that attract targeted customers and address inefficiencies in the Indian financial sector.

Positioning Strategy “Positioning is the act of designing the company‟s offering and image to occupy a distinctive place in the target market‟s mind. Positioning starts with a product. A piece of merchandise, a service, a company, an institution, or even a person. But positioning is not what you do to a product. Positioning is what you do the mind of the prospect. That is, you position the product in the mind of prospect. A company‟s differentiating and positioning strategy must change as the product, market, and competitors change over time. Once the company has developed a clear positioning strategy, it must

communicate that positioning effectively. INDUSIND bank have positioning strategy of “Continuing a Tradition of Trust”. It is accurate positioning strategy because it signifies a trust with its clients. Here is special Relationship Manager dedicated towards customer service and satisfaction and give them guidance about various schemes which helps them to get right scheme which suit their needs. In this way it continues to maintain a trust with its clients.

INTRODUCTION The INDUSIND was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of 'INDUSIND Bank Limited', with its registered office in Mumbai, India. INDUSIND Bank commenced operations as a Scheduled Commercial Bank in January 1995. INDUSIND is India's premier housing finance company and enjoys an impeccable track record in India as well as in international markets. Since its inception in 1977, the Corporation has maintained a consistent and healthy growth in its operations to remain the market leader in mortgages. Its outstanding loan portfolio covers well over a million dwelling units.INDUSIND has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities.With its experience in the financial markets, a strong market reputation, large shareholder base and unique consumer franchise, INDUSIND was ideally positioned to promote a bank in the Indian environment. INDUSIND Bank began operations in 1995 with a simple mission : to be a “ World Class Indian Bank.” We realized that only a single minded focus on product quality and service excellence would help us get there. Today, we are proud to say that we are well on our way towards that goal. INDUSIND Bank Limited (the Bank) is an India-based banking company engaged in providing a range of banking and financial services, including commercial banking and treasury operations. The Bank has a network of 1412 branches and 3295 automated teller machines (ATMs) in 528 cities and total employees is 52687.

1. 2009 pŸŸProvisioning Coverage Ratio against NPAs at 60.41 crores pŸŸCore Fee Income up by 44% to Rs 432.33% pŸŸReturn on Assets at 1. 1.20 per share last year.14% as on March 31.01 from Rs 4.14% as against 29.50 % as compared to 1. 1 for „Credit Quality‟ amongst all banks in India by Financial Express and Ernst & Young study pŸŸReceived the prestigious ISO 27001 certification for IT operations which conform to the Information Management System Standard – ISO/IEC 27001 Ratings pŸŸHighest P1+ rating for its Fixed Deposits and Certificates of Deposit (up to 1 year contracted maturity) by CRISIL pŸŸLower Tier II bonds have been rated „CARE AA-‟ by CARE pŸŸBank‟s Lower Tier II bonds rating has been upgraded to „A+(ind)‟ and Upper Tier II bonds rating upgraded to „A-(ind)‟ by Fitch Ratings pŸŸRating of „LA+‟ to Lower Tier II bonds and „LA‟ to Upper Tier II bonds by ICRA . up from Rs.27 crores pŸŸCapital Adequacy Ratio (Basel II) at 15.14% as against 0.58% pŸŸNet NPA at 0.Key Business Highlights pŸŸTotal business crossed Rs 47000 crores pŸŸNet worth moved to Rs 2166 crores pŸŸNet Profit up by 136% to Rs 350. Accolades The Bank received recognition for excellence and technology from various forums. as the second best new generation bank in Kerala pŸŸRanked No.31 crores pŸŸNet Interest Income up by 93% to Rs 886. Kerala. pŸŸReceived the prestigious „Technology Bank of the Year-2009‟ award in the private and foreign bank category from the Indian Banks‟ Association (IBA) pŸŸThe State Forum of Bankers‟ Clubs.80 per share. bestowed on the Bank the „Excellence Award‟.28 pŸŸDividend declared: Rs.76% pŸŸRaised Maiden QIP issue for Rs 480 crores with an overwhelming response from the investor community pŸŸNetwork increased to 210 branches and 497 ATMs spread over 168 geographical locations in 28 States and Union Territories across the country pŸŸEarning Per Share (Basic) increased to Rs 9.

DIRECTORS‟ REPORT: 2009-10 .

abilities and opportunities. it helps you carve a sustainable niche in your market. Used in a business context. SWOT ANALAYSIS OF INDUSIND BANK STRENGTH -term career in the field. it helps you develop your career in a way that takes best advantage of your talents. and for looking at the Opportunities and Threats you face. WEAKNESSES OPPORTUNITIES Could extend to overseas broadly.SWOT ANALYSIS SWOT Analysis is a powerful technique for understanding your Strengths and Weaknesses. . Used in a personal context.

THREATS could constrain investment. and the Opportunities and Threats you face. This helps you to focus on your strengths. minimize threats.-track career development opportunities on an industry-wide basis. . to provide added-value services. KEY POINT SWOT Analysis is a simple but powerful framework for analyzing company's Strengths and Weaknesses. and take the greatest possible advantage of opportunities available to you.

Maharashtra IndusInd Bank Ltd. of employees Change. Private Sector Banking 1... To position IndusInd Bank limited as a Top 3 performer in the new private bank space in 3 years measured by the 3 parameters of Profitability. Productivity and Efficiency.. .CSR CSR 2009 Details of IndusInd Bank Ltd. Pune. Banking and FInancial Services 4251 Other locations of Corporate office in Mumbai 180 branches across Mumbai factories / offices Financial result for time April 2008 . . Crores .March 2009 period -Sales Rs. 2766 Crores -Profit before tax Rs.Corporate Social Responsibility Activities are as follows Company Profile Company's Slogan Company's Vision Company's Mission Special Notes Company Type Industry Sector Products / Services No.

Energy 2. 32 of Annual Report Corporate Social Responsibility (CSR) CSR has always been close to your Bank‟s business strategy.23% of your Bank‟s Net Bank Credit (NBC).6298.67.38% of your Bank‟s NBC at the end of March 2009. Environment 3.-Net profit after tax -CSR Budget Rs.2039. Rural Development 1. compared with 35. Rural Development 2. 148 Crores Not Disclosed CSR Activities Trust / Foundation for CSR CSR Areas No 1. Your Bank took the opportunity of launching the Green Banking project. Other priority sector advances such as fi nance to small enterprises represented 25. and through this awareness. During the year. 2008” by .86 crores representing 9.31% at the end of March 2008. 18 of Annual Report Priority Sector Lending Your Bank has earned the distinction of achieving the RBIprescribed target as well as sub-targets for Priority Sector Advances. Priority Sector Advances aggregated Rs. ------------Pg.79 crores at the end of March 2009 and represented 49.94% of your Bank‟s NBC at the end of March 2009 compared with 9.70% at the end of March 2008. As a part of this project. your Bank‟s fi nance to „Weaker Sections‟ stood at Rs. Energy No No Three main CSR activities Publish Sustainability Report Member of Global Compact CSR activities in brief Pg. your Bank fi nanced over 2. compared with 52. a campaign “Hum aur Hariyali” has been launched to increase awareness about environmental issues.96% of your Bank‟s NBC at the end of March 2009 compared to 0.75% at the end of March 2008.44 crores representing 15. achieve the goal of Sustainable Development during the year which was declared as the “International Year of Planet Earth. Environment 3.56% at the end of March 2008.1274. During the year.668 agriculturists and the aggregate Direct Agricultural Advances stood at Rs.

based on risk sensitivity of respective assets. Market Risk and Operational Risk. which facilitates identifi cation and measurement of other material risks (other than the risks covered under Pillar I). The Bank has implemented a highly sophisticated system to enable automated computation of capital requirements under Basel II. whilst maintaining credit quality within the defi ned risk appetite. Through this campaign.the UN General Assembly. the Bank has been undertaking computation of capital requirement under Basel II since June 2006 under a parallel run. 2009 for measurement and maintenance of capital adequacy. Various measures adopted by the Bank for managing credit risk are as under: . encouraging them to make sustainable choices and changes. your Bank endeavours to „green‟ the offi ce spaces. minimize carbon footprint and support environmental initiatives. As a part of the New Capital Adequacy framework. The New Capital Adequacy framework has enabled the Bank to allocate capital. The key objective of credit risk management is to achieve appropriate reward in relation to risks assumed. reduce resource consumption. Credit Risk Management Credit Risk is managed both at Transaction level and at Portfolio level. the Bank has implemented policy on Internal Capital Adequacy Assessment Process (ICAAP). As a prudent measure. The system also supports adoption of advanced approaches under New Capital Adequacy framework for computation of capital charge towards Credit Risk. Reinforcement of Risk Management – Adoption of Basel II The Bank has adopted New Capital Adequacy framework under Basel II with effect from March 31. your Bank has delved into different aspects of Green Banking and has reached out to both staff and customers. Through the “Hum aur Hariyali” campaign.

• Stress testing of credit portfolios to measure its shock-absorbing capacity and its impact on profi tability and capital adequacy. • Credit Portfolio Management analysis to monitor credit quality. . Deal-size limits and various operational limits. industries. Value-at-Risk (VaR) limits for Forex. • Monitoring of prescribed portfolio level limits regularly.• Gauging credit risk at the time of credit approval by means of risk-rating models implemented for different segments of obligors. The framework includes monitoring of PV01 limits. exchange rates. • Management of Bank Risk and Country Risk by setting exposure limits on the basis of risk profi le. sectors. Medium and High) and also assessing the direction of risks and controls (Increasing. • Prudential internal limits for assuming exposures on counterparties. The Bank manages market risk in trading portfolios using a robust market risk management framework prescribed in its Market Risk Management policy. and • Assessing regularly the risks and controls at three different levels (Low. Market Risk Management Market Risk arises from changes in interest rates. Equity and Derivatives Portfolios. equity prices and risk-related factors such as market volatilities. etc. • Measurement and monitoring of credit quality regularly by means of Weighted Average Credit Rating (WACR) of the portfolios. Investments.. Exposure limits. composition of its portfolios and concentration risk. Market Risk is proactively managed and aligned with the Bank’s risk appetite. besides Stop-Loss limits. Stable and Decreasing).

(ii) Optionality. foreign exchange currencies and derivative fi nancial instruments (forwards. the Bank also takes positions for proprietary activities. monitoring. The prime objective of the Bank’s trading activities is client facilitation and providing products / services at competitive prices.). Further. and (iv) Yield Curve Risk. equities. (iii) Basis Risk. From an economic perspective. Financial instruments held in the Bank’s trading portfolios include debt securities. measurement. (i) Repricing Risk. analysis and reporting of the market risks arising out of various trading portfolios. The Bank’s Assets and Liabilities Management Policy has laid down limits. viz. and is responsible for: • Creation and updating of comprehensive policies framework and implementation of methodologies for measurement and monitoring the market risks. swaps and options.The Bank’s Market Risk Management Group functions independent of the Treasury function. and • Ensuring compliance with Bank’s Market Risk Management Policy and monitoring market risk exposures in line with risk limits set by the Board of Directors. . • Identifi cation. it is the Bank’s policy to minimise the sensitivity to changes in interest rates on assets and liabilities. Interest rate risk is calculated on the basis of its repricing behaviour of each asset. Interest Rate Risk in the Banking Book (IRRBB) Interest Rate Risk in the Banking Book arises from Bank’s non-trading activities in four principal forms.. on the impact on NII for a change in interest rate. etc. liability and off balance sheet products. as per its risk appetite.

technology. Loss Data Analysis. The Bank seeks to ensure that key operational risks are managed in a timely and effective manner through a framework of policies. if they arise. The Operational Risk Framework comprises of policy guidelines. Key Risk Indicators (KRIs) and Risk Profi ling of branches.Stress Testing – Liquidity Risk The Bank performs stress tests regularly to simulate as to how the stressed events may impact its funding and liquidity position. frauds. monitor. improper behaviour or external events. Risk & Control Self Assessment (RCSA). Operational Risk Management Operational Risk is the potential for incurring loss due to failure of employees. The contingency funding plan covers available sources for contingent funding to supplement cash fl ow shortages. including legal and regulatory risk. disasters. failed processes. procedures and tools to identify. Operational Risk occurs on account of fraud. The stress tests help the Bank to be better equipped to meet the stressed situations. the roles and responsibilities of those involved in the contingency plans and the contingency triggers. inadequate systems. assess. damage to physical assets. control and report such inherent risks in the Bank’s business. human error. systems or processes. . projects. external factors. The Bank’s Risk Management Department provides necessary direction and undertakes meaningful initiatives for implementation of Operational Risk Management framework. Contingency Planning Contingency funding plans have been developed to anticipate and respond swiftly to approaching or actual material deterioration in market conditions. and to overcome them so that they do not pose a serious threat. The Bank reviews its contingency plans in the light of evolving market conditions. etc.

IT Security framework. • Liquidity Risk is managed through Structural Liquidity Gaps. Systems Risk The Bank has taken various initiatives such as establishment of Disaster Recovery Site. wherein analytical presentations were made providing detailed analysis of liquidity position. The Bank has implemented a comprehensive Bank-wide Business Continuity Plan to ensure continuity of its critical functions during disruption / disaster situations. • Interest Rate Risk on Investment portfolios is monitored through Modifi ed Duration on a daily basis. Optimum risk is assumed through duration. business growth v/s budgets. covering 100% of its assets and liabilities. to balance between risk containment and profi t generation from market movements. interest rate outlook. Behavioral Analysis of liabilities and assets and prudential limits for negative gaps in various time buckets. which identifi es the risks inherent in the products / processes and prescribes controls to mitigate such risks. interest rate risks. towards mitigation of systems risks. In-house Data Centre. which helped to review the business strategies regularly and undertake new initiatives. Asset Liability Management (ALM) The Bank’s ALM system supports effective management of liquidity risk and interest rate risk. Liquidity Ratios analysis. • Interest Rate Sensitivity is monitored through prudential limits for Rate Sensitive Gaps and other risk parameters. Interest . Meetings of the Asset Liability Management Committee (ALCO) were convened frequently during the year.Products launched by the Bank are vetted by the Operational Risk Management Committee (ORMC). Dynamic Liquidity position monitoring. Business Continuity Plan. product mix. etc.

. . It has also taken initiative to improve the overall health and wellbeing of the employees by providing continual inputs on staying fi t. The Bank has helped in promoting Indian art and culture by patronising eminent musicians and dancers from across India. working to help specialneed and underprivileged children. including Whole-time Directors. The ALCO meets at frequent intervals. The other members of the Committee are the Chief Operating Offi cer. Chief Risk Offi cer. In order to adopt more advanced and sophisticated techniques of assets-liabilities management. CFO. and Other cause-related activities: The Bank has also been extensively associated with cause-related socially responsible activities. Heads of Business Units and Functional Heads. etc. Other such activities which the Bank was associated with were employees’ participation in marathons. introduction of payroll scheme by contributing a part of employees’ salaries.rate outlook projected in ALCO meetings have largely been in line with the actual interest rate trends.g. e. the Bank has implemented a state-of-the-art ALM system. Employees Stock Option Scheme The Bank had instituted an Employees Stock Option Scheme (ESOS) to enable its employees. Meetings of ALCO are Chaired by the Managing Director & CEO.

Under the Scheme.69. options which upon exercise or conversion could give rise to the issue of a number of shares not exceeding in the aggregate 7% of the issued equity capital of the Bank from time to time can be granted.02. Productivity and Effi ciency. An aggregate of 1. The Bank’s corporate ambition is to reposition itself as a ‘Top 3’ performer among new generation private sector banks in three years. However. The Employees Stock Option Scheme (ESOS) is in accordance with the Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines.000 options have been granted under the Scheme.to participate in the future growth of the Bank. a six-pronged strategy was spelt out at the commencement of 2008-09. it was necessary to move beyond this. Other Initiatives underway Quality Quality is a critical differentiator in a service industry. . with passage of time. measured by Profi tability. and the Bank has had the unique distinction of having had its entire branch network certifi ed as compliant with ISO 9001:2000. and to meet this challenge. and to embed quality in every aspect of the Bank’s activities. 1999. Statutory disclosures as required by the revised SEBI Guidelines on ESOS are given in the Annexure to the Directors’ Report.This calls for tripling of revenues in three years. it was decided to concentrate efforts initially on enhancing quality in a few select areas. In tune with this strategy. The eligibility and number of options to be granted to an employee is determined on the basis of criteria laid down in the Scheme and is approved by the Compensation Committee of the Board of Directors.

Teams with relevant skills have been working on each such project under the leadership of a Top Executive. etc. steps have been taken to obtain contact details such as e-mail IDs. Bangalore. new activities will be taken up as possibilities and ‘payoffs’ from actions underway are exhausted. and practised converting quality concepts into defi nite action steps for regular implementation. people. apart from frequent interaction by the Bank with the Registrar & Transfer Agent. this movement shall continue to cover all aspects of the Bank’s operations. Press. communication with the external environment. This initiative was kicked off with a series of workshops facilitated by CII-IQ faculty across the country. cell phone numbers and telephone numbers of all shareholders so as to communicate to shareholders information about developments in the Bank. The Bank has tied up with the Confederation of Indian Industry (CII)’s Institute of Quality. Each team is working on specifi c actions within its project brief. the way of relating by employees with clients and colleagues. and progressively. Going forward. the Bank’s shareholders shall receive best-of-class shareholder services and be the best informed about developments in the Bank. for the implementation of a Quality Management Program. etc. products. and over time. where managers were sensitized to the need for quality. This direct communication would be in addition to the regular dissemination of information through usual channels such as the Stock Exchanges. Shareholder satisfaction With a view to promoting transparency and promoting shareholder satisfaction. Information Technology .

The Bank has always been at the forefront in deploying the latest. Contact Centre. state-of-the-art technology. Sunday Banking. innovation. VISA Gold Card. . 8to-8 banking. comprehensive and robust Disaster Recovery Site (near Chennai) for Core Banking (running Mimix solution for on-line replication) and ATM Switch with annual drills. Value addition to customers and effi cient customer service have to be ensured at all times for customer acquisition and retention.Information Technology has been an integral part of the Bank’s growth strategy since inception. The Bank leverages Information Technology for differentiation. etc. In recognition of this strategy. SMS-based Mobile Banking. process improvement and productivity. As part of IT Security governance. the Bank has been awarded the prestigious ‘Technology Bank of the Year-2009’ Award instituted by the Indian Banks Association. Information Technology plays a major role in realizing of this goal. the Bank has enhanced its security infrastructure and has been certifi ed for ISO 27001 (Information Security Management System) from BSI during the year. STP for RTGS and NEFT. Earlier initiatives which are running smoothly include the robust infrastructure with fall-back communications links. Server and Storage Consolidation on AS/400 machine with Multiple Operating System deployment to reap benefi ts of Virtualization and On-Demand Technologies. critical systems hosted at a certifi ed data centre at Mumbai. Gift Card.

Clubs and NGOs. The accounts are designed for Trusts.government and society. Unlimited Fund Transfer Free Demand Drafts Avail Electronic Banking for your convenience Get your money organized through Indus Collect Avail Free Collection Services Get account statement on your email daily FCRA Account benefits with this account .1 lac Free Anywhere Banking Free Multi-City Cheque (At Par) Facility Unlimited Transactions.5% pa for Daily Balances upto Rs. and liberate you from worrying about the financial transactions in your work. We believe that corporate social responsibility is not only about direct action. Societies.These interest groups consist of owners. We have specially designed our products to provide you hassle free banking. Associations. Societies. Trade & Professional Associations. Clubs and NGOs.000/Savings interest rate of 5.1 lac. and are of four types : Indus LBO Indus TASC Indus TASC Prime Indus FCRA o o o o Government & Specialized Accounts     Indus TASC Indus Prime Indus LBO Indus Escrow Indus TASC o o o o o o o o o o o The exclusive Indus TASC Account is a specially designed value-added Savings Account for non-profit organisations like Trusts. suppliers. and 6% pa for Daily Balances above Rs. which may be called as various interest groups. investors. The offer also covers Educational Institutions. but also by facilitating others who are carrying out this task. The social responsibility of business has to manifest not only in specific CSR initiatives.Government & Specialized Accounts Every business is a part of society and the business is responsible towards every element of the society. 10. Associations. competitors. who are doing a commendable job in their own field. Charitable Hospitals and NGOs Features: Average quarterly balance of Rs. with a higher degree of focus and specialization. but also in the normal course of routine business functioning. customers. We extend our core competence and expertise in providing financial management solutions. employees. to the non-profit organizations.

for organizations approved by Ministry of Home Affairs. . ATM usage. activity. Associations. for individuals and businesses. Free RTGS/ NEFT/ ECS facilities. Concessions in transaction and service charges. a society. POS transactions (Debit card swipe) Issuance of annual TDS certificates. Competitive rates on G-Sec transactions. Branch transactions. which can be done from your desk. FCRA accounts for receipt of foreign contributions. or purpose in common. Charitable Hospitals and NGOs. with our payment gateways.o o Special features: Investment opportunities like never before Multiply your returns by earning FD interest. Free online RTGS. Constituent Subsidiary General Ledger ( CSGL accounts ). Payment of utility bills. for trading in G-Secs. Demand drafts on branches drawn on our centers. Overdraft against fixed deposits. in the administration of trust funds. Other benefits : Competitive rates on conversion of foreign currency. Trade and Professional Associations. A dedicated relationship manager Web-based facilities for remittance of funds. Society : The offer also covers Educational Institutions. Contact center Balance enquiry through ATM. Facilities offeredDocumentation Facilities offered Who can open accounts under TASC ( Trusts. Mobile alerts. Investment advice. estates and custodial arrangements. Our investment councilors will help you select the best mutual fund according to your needs. Replacement charges for ATM/ Debit cards. Society : An extended social group having a distinctive cultural and economic organization Club:A formal association of people with similar interests. Demat accounts for trading in the stock market. trustee or agent. which acts as a fiduciary. Free services offered by us : Collection of cheques drawn on centers where we have branches. o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o Facilities offered by us : Savings/ current accounts and term deposits. Web-based facilities for receipt of donations online. Personalized service. Association : An organized body of people who have an interest. Internet banking Quarterly statements Email statements One free chequebook per quarter. Societies and Clubs) category ? Trusts : Organization.

: We have examined the compliance of conditions of Corporate Governance by INDUSIND BANK LTD. we certify that the Bank has complied with the conditions of Corporate Governance as stipulated in the above-mentioned Listing Agreement. Our examination was limited to procedures and implementation thereof adopted by the Bank for ensuring compliance with the conditions of Corporate Governance. For Bhandari & Associates Company Secretaries S. It is neither an audit nor an expression of opinion on the fi nancial statements of the Bank. 366 Certifi cation by the Chief Financial Offi cer and the Managing Director In terms of the revised Clause 49 of the Listing Agreement. In our opinion and to the best of our information and according to the explanations given to us. 2010 C. (“the Bank”) for the year ended on 31st March 2010 as stipulated in Clause 49 of the Listing Agreement of the said Bank with the Stock Exchanges. The compliance of conditions of Corporate Governance is the responsibility of the Management. P. May 10. Bhandari Proprietor Mumbai.CORPORATE GOVERNANCE Certifi cate on Compliance with the conditions of Corporate Governance under Clause 49 of the Listing Agreement To the members of IndusInd Bank Ltd. the Certifi cation by the Managing Director & CEO and the Chief . N. We further state that such compliance is neither an assurance as to the future viability of the Bank nor the effi ciency or effectiveness with which the management has conducted the affairs of the Bank.

This Code attempts to set forth the guiding principles on which the Bank shall operate and co nduct its daily business with its multitudinous stakeholders. transparent and responsive to its stakeholders. government and regulatory agencies. The Committees meet regularly to achieve their specifi c objectives. • The Bank is committed to operate on commercial principles ensuring. To maintain high standards of good Corporate Governance. the need to remain accountable. The Directors have formed various Committees of the Board. on the fi nancial statements and the internal controls relating to fi nancial reporting has been obtained and submitted to the Board. whilst remaining with the framework of effective accountability and regulatory compliances. at the same time. • The management structure and systems which have been evolved. and anyone else with whom it is connected. The Directors have adopted a ‘Code of Conduct’ for Directors and Senior Management. media. allow suffi cient freedom to the Board and the Management to make decisions and take actions in pursuit of the growth objectives of the Bank. Code of Conduct for Directors and Senior Management The Board of Directors has laid down a Code of Conduct for all Board Members and Senior Management 1 . In this context.Financial Offi cer of the Bank. • The Bank acknowledges the need to uphold the integrity of every transaction it enters into and believes that honesty and integrity in its internal conduct would be judged by its external behaviour. The Bank’s Philosophy on the Code of Corporate Governance • The Bank believes that consistent implementation of good Corporate Governance practices contributes towards sustaining and developing the the business of the Bank.

indusind. 2010 and no violation of the ‘Code of Conduct’ has been reported during the year. The said code has been uploaded on the Bank’s website (www. This comprises members of management who are of the level of functional heads. CSR INITIATIVES . excluding Board of Directors. Declaration by the Managing Director: All members of the Board and Senior Management have affi rmed to the Board. the term ‘Senior Management’ means personnel of the Bank who are members of its Core Management Team.of the Bank. 1 For this purpose.com) under the head ‘Investor Relations’ – ‘Code of Conduct’. of having complied with the ‘Code of Conduct’ during the year ended March 31.

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thin computing. e-learning. paperless fax. e-archiving. December 18. 2009: IndusInd Bank Ltd inaugurated Mumbai’s first solar-powered ATM as part of its Green Office Project campaign ‘Hum aur Hariyali’. prepared in association with the Centre for Environmental Research and Education (CERE). e-waste management. IndusInd Bank has a comprehensive plan to reduce its carbon footprint. energy conservation.Mumbai. CNG cars and also supporting finance programs with . Some of the initiatives being undertaken under this plan are solar-powered ATMs. It also unveiled a ‘Green Office Manual A Guide to Sustainable Practices’.

” IndusInd’s new Solar ATM replaces the use of conventional energy for 8 hours per day with eco friendly and renewable solar energy. ‘Green Banking’ is our mission today and we have diligently worked towards spreading the word in our office corridors and in the corridors of finance. Mr. The uniqueness of this solar ATM is the ability to store and transmit power on demand (incase of power failure) or need (time basis). MD & CEO of IndusInd Bank said. the savings will be substantial. approximately Rs. Rashneh Pardiwala. 20. we believe that corporate success is intrinsically linked with the environment. says. “This is a unique model where innovation in science and technology is being encouraged by a large corporation to help environmental organisations address the challenges posed by Climate Change and spread awareness about sustainable development. social responsibility and climate change are fast becoming part of the corporate vocabulary and IndusInd is at the forefront of this change in the Indian banking sector. Explaining the rationale behind the ‘Hum aur Hariyali’ campaign.200 every year.incentives to go green. Director and Founder of CERE.000 per year in case of a commercial user with grid power supply. In terms of costs. Subjects like sustainable development. And in areas with erratic power supply the solar will replace diesel generators and translate into savings as high as Rs. . The energy saved will be 1980 kW hrs every year and will be accompanied by a simultaneous reduction in CO2 emissions by 1942 Kgs. Dr. “At IndusInd. 40. Romesh Sobti.

As part of the project. the Bank had launched “Hum aur Hariyali” campaign under which a number of green initiatives . while protecting the environment for future generations.Green Initiatives The goal of the Green Banking Project is to promote sustainable business practices to offset the effects of climate change through energy and resource conservation.

scrutinizes them and proceeds . reduces energy consumption. Introduction of Paperless Fax – A shift has been made to receive faxes as soft copies instead of on paper. and is far better for the environment. This initiative has been introduced in many departments and has reduced usage by 50.A comprehensive document management and workflow system branded IworkS has been introduced through adoption of Business Process Management (BPM) tools and techniques. Thin Computing delivers the productivity people need. all without compromising on security or manageability. at a lower cost than traditional methods. In this system the documents are scanned at the branch or hub itself.have been taken: Key Initiatives at IndusInd to reduce Carbon Footprint Thin computing at Karapakkam – PCs are replaced using diskless workstations resulting in power savings of over 60%. all the while improving on the security. Document Management System and Workflow . reliability. The central processing unit then works on the scanned copy of the documents.000 sheets of paper over a period of 6 months only in the Corporate office which has resulted in substantial savings in both paper usage and energy consumption. and availability of PCs. dramatically lowers IT costs. Yet Thin Computing still provides the access to applications and data that people need in order to move the business forward. Analysts agree that this approach improves the reliability and security of information.

000 sheets for photocopying . This has resulted in savings of 60 % of the costs on premises besides improving efficiency as lesser time is spent in finding and retrieving documents.Timer Based (switch to solar UPS on timer operation) and Trigger based (in case of power failure the system will switch to UPS).to open the accounts. The energy saved will be 1980 KW hrs per annum and will result in the reduction of . Apart from improved efficiency. better process control and improved customer service.000 sheets for Checklist besides the toner cost associated with it. Solar ATM: With the commencement of the Green Banking Initiative in the Bank.4 watts. The Solar UPS generate approx 5926. The system operates on real time and has two levels of operation.30. one of the key deliverables was enabling the ATM and signages with Solar energy. This has also lead to an increase in printer life and has resulted in substantial costs in physical storage as well. Autonic’s Solar UPS replaces the conventional use of fossil fuel in the form of diesel generators with eco friendly and renewable solar energy. The introduction of IWorkS application has saved approximately 13.60. The system will also have alarms or alerts to indicate when the battery is low and a signal indicating the start of the Generator and the ability to start the generator using AMF or similar devices. the original documents can be stored at low cost locations. The Solar ATM at Opera House uses photovoltaic cells mounted on the roof of the building. IndusInd’s new Solar ATM at Opera house is a first of its kind in India and a revolutionary concept in Green Banking. IWorkS eliminates the need to keep photocopies of various documents. 2. These cells convert sunlight into electricity and this clean and renewable form of energy is used to power the ATM. or 6 units of power.

The Green Banking Project was spear headed by a group of “Green Champions” who were chosen from among the employees. achieve the goal of Sustainable Development.00/day in case of a commercial user with grid power supply and Rs.00 savings per annum using grid or Rs. Employee Awareness/ Outreach programmes The aim of the Green Banking project is primarily to increase awareness about environmental issues for the staff and through this awareness. In terms of costs.CO2 by 1942 Kgs per year.20100. The “Green Champions” were first empowered through a series of workshops and then they became the drivers of the Green Banking Project .120.” The on-going awareness initiatives in terms of workshops.40.60.The premise of the initiative was that “Going green is not only about protecting trees but about altering behaviour. the Savings will be approximately be Rs.00 in case of solar energy substituting diesel generator. film screenings and field trips have encouraged the employees to put in practice various initiatives in terms of resource reduction. IndusInd goes green: saves water.00 for diesel generators.200. observes Earth Hour . energy conservation and waste management and they have set a standard for Green Banking across the country. This will translate to Rs.

IndusInd Bank disseminated a series of informative EDMs to all IndusIndians to create awareness on the perils of depletion of safe potable water on the occasion of World Water Day.As part of its Corporate Social Responsibility (CSR) initiatives. March 21. 2012 .

Signages were switched off for an hour between 8. Employees were also encouraged to commute by public transport and practical energy tips were shared across all IndusIndians .IndusInd Bank associated with he World Wildlife Fund (WWF) and observed Earth Hour on March 31.30 pm till 9. 2012 across all its branches.30 pm.

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Shortly it will be rolled out to other locations. • All the premises are now shifted to using CFL bulbs.Other Key Initiatives • Green data centre at Indiabulls • Replacement of CRT monitors with LCD which results in 50% power savings. most of the new buys are CNG enabled vehicles. Moreover. The target is 500 monitors this year • Desktops PCs configured in standby mode during periods of inactivity.In virtualisation a single server can host multiple applications instead of the usual 1 server per applications. • Desktop video conferencing – using this top management can hold virtual meeting instead of physical meetings reducing travel considerably. Also the trainees can undergo the courses at their time and convenience • Server virtualisation . A consolidation ratio of 6:1 is targeted and power savings both for operating and cooling of over 75% • Switched over to cleaner fuels like CNG /LPG factory fitted Cars. • Disposal of computer hardware after contents are destroyed (technically called degaussing) to agencies which recycle the plastic recovered from the tapes • Commenced the usage of A4 bagasse paper at all our Mumbai branches and Corporate Office. paper and travel. vehicles over 4 years approximately 30% of our owned vehicles will be changed to CNG/ LPG this year. . Advantage economical in terms of costings over normal paper and it is eco-friendly • E-learning – this will replace classroom learning avoiding the need for physical presence of the participants. This way the Bank is making an impact on optimum utilisation of resources relating to energy. Over a period of 6 months.