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Tracking the India Growth Story Meeting Diverse Customers’ Needs Unique Franchise in the Indian Banking Sector Key Business Initiatives Financial Highlights Value Proposition

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Tracking the India Growth Story `.Rupees 2 . Tn 100 90 India GDP* 80 70 60 50 40 Private Consumption • Strong distribution network and retail customer franchise • Equally well positioned in urban and rural markets • Leading player across retail loan categories 30 20 10 0 Government • Large tax collector for the Government of India • Significant provider of cash management services for public sector and semi government undertakings FY 2010 FY 2011 FY 2012 Private consumption Government Investment Investment • Leading working capital banker to capital goods manufacturers • Term Loans for capex and brown field expansion • Project financing to strong and established players • Debt syndication team in place *Source CSO – GDP at Market Prices at current prices FY – Fiscal year ended March 31 ` .

Contents Tracking the India Growth Story Meeting Diverse Customers’ Needs Unique Franchise in the Indian Banking Sector Key Business Initiatives Financial Highlights Value Proposition 3 .

Wide Range of Products and Customer Segments Loan Products: Auto Loans Retail Business Banking Personal Loans Credit Cards 2-Wheeler Loans Commercial Vehicles Finance Construction Equipment Finance Home Loans / Mortgages Loans against Securities Tractor and Agri loans Education Loans Gold Loans Commercial Banking: Deposit Products: Savings Accounts Current Accounts Fixed / Recurring Deposits Corporate Salary Accounts Other Products / Services: Depository Accounts Mutual Fund Sales Private Banking Insurance Sales (Life. General) NRI Services Bill Payment Services POS Terminals Debit Cards Gold Sales Foreign Exchange Services Broking (HDFC Securities Ltd) Retail Banking Transactional Banking: Cash Management Custodial Services Clearing Bank Services Correspondent Banking Tax Collections Banker to Public Issues Key Segments: Large Corporate Emerging Corporates Financial Institutions Government / PSUs Supply Chain (Suppliers and dealers) Agriculture Commodities Wholesale Banking Working Capital Term Loans Bill Collection Forex & Derivatives Wholesale Deposits Letters of Credit Guarantees Products / Segments Other Functions: Asset Liability Management Statutory Reserve Management Treasury Foreign Exchange Debt Securities Derivatives Equities Complete Suite of Products to Meet Diverse Customers’ Needs 4 .

main drivers of net revenues Well balanced loan mix between wholesale and retail segments • • Higher retail revenues partly offset by higher operating and credit costs Equally well positioned to grow both segments Indian GAAP figures.000 `.Business Mix Total Deposits `. Third Party Product sales etc.Rupees Gross advances and Profit Before Taxes classified as per RBI guidelines for segmental reporting (Basel II). Fiscal Year ended 31 st March. Bn 100 Profit Before Tax 1. Bn 3.500 Gross Advances `. “Other Banking Operations Segment” (which includes Credit Cards.250 50 0 2010 2011 2012 0 2010 2011 2012 0 2010 2011 2012 Retail Wholesale Retail Wholesale Retail Wholesale • • Customer segments .500 1. ` . Bn 2.) has been added to the Retail Segment 5 .

Contents Tracking the India Growth Story Meeting Diverse Customers’ Needs Unique Franchise in the Indian Banking Sector Key Business Initiatives Financial Highlights Value Proposition 6 .

Anyhow” banking  75% branches outside the top 9 cities  Customer base of 26 million 7 .986 2. Anywhere.Strong National Network Mar ‘09 Mar ‘10 Mar ‘11 Mar ‘12 Cities 528 779 996 1399 Branches ATMs 1412 1.232 5.544 8.913 3295 classification 4.725 1.471 Branch Mar '09 Semi Urban 22% Rural 8% Metro 36% Urban 27% Metro 28% Mar '12 Semi Urban 36% Rural 9% Urban 34%  All branches linked online. real time  “Anytime.

000 0 2010 2011 2012 0% 2010 2011 2012 0 2010 2011 2012 Time Savings Current • • • • • Healthy proportion of CASA (current & savings) deposits Floats from multiple transactional banking franchises Continued growth in new customer acquisitions Provides customer base for ongoing cross-sell through branches Quality growth rather than mere numbers Indian GAAP figures.000 1500 26% 25.Rupees 8 . 52% 50. Fiscal year ended 31st March Core CASA ratio based on daily average balances for the year ` .High Quality Deposit Franchise Total Deposits `. Bn 3000 Core CASA Ratio Average Saving Balance per Account `.

50% 4.22% 4.00% 5. Fiscal year ended 31st March 9 .25% 4.Low Funding Costs – Healthy Margins Cost of Deposits 7.00% 2010 2011 2012 0.30% 2.35% 4.72% 4.00% 2010 2011 2012 • • • Amongst the lowest deposit costs in the industry Healthy margins – relatively stable over rising & declining interest rates Average yields supported by higher proportion & product mix of retail loans Indian GAAP figures.66% 3.00% Net Interest Margin 5.50% 0.

& includes miscellaneous income ` . FY .000 Multiple sources of fees & commissions: P/L on Investments* 27.000 FX & Derivatives Fees & Commission -2.Strong Non-Funded Revenues `. FX and Derivatives Revenues 22%.000 2010 2011 2012 Banking charges (Retail & Wholesale) Retail Asset Fees Credit card Fees Third party product sales Cash management Trade Finance Depositary charges Bullion sales Custody • • Other Income (non-funded revenues) at 30% of Net Revenues in FY 2012 Composition of Other Income in FY 2012: • • • Fees and commissions 82%.Rupees 10 .Fiscal Year ended 31st March. Mn 56. Loss on sale of Investments (3%) Indian GAAP figures. Fiscal year ended 31 st March. * Profit / (loss) on sale and revaluation (mark to market) of the Government Bond portfolio etc.

11 . and (c) transactions by holders of other banks‟ cardholders have therefore been excluded. Cross-sell Innovative Technology Application Provide New or Superior Products The charts above cover only transactions initiated by our own customers and which could have been transacted at the Bank‟s br anches. Analytics Improve Sales & Credit Efficiencies. CRM. (b) point of sale (POS) transactions. Transactions such as (a) SMS alerts sent to customers.Leveraging Technology Multiple Delivery Channels 2001 Branches 43% Phone Banking 14% Internet 2% Mobile 1% Greater Choice and Convenience for Our Retail Customers 2012 Internet Phone Banking 12% 38% ATMs 40% Mobile 2% Branches 18% ATMs 30% % Customer Initiated Transactions by Channel Regionalized Processing Units Derive Economies of Scale Electronic Straight Through Processing Reduce Transaction Costs and Error Rates Data Warehousing.

4% of the Bank's gross advances as on March 31. policies.Rupees 12 .05% 1% 1.43% 1. technical or otherwise) at 82% of NPAs. 2012 Indian GAAP figures. total provision coverage of over 100% • Restructured loans formed 0. Fiscal year ended 31 st March. Net Non Performing Assets (NPA) = Gross NPA less specific loan loss provisions ` .19% 0.Healthy Asset Quality NPA% to Advances `.02% 14 0. Bn 2% 28 Loan Loss Provisions 1.18% 0 2010 2011 2012 2010 2011 2012 Gross NPA % Net NPA % Gross NPAs Specific Provision General Provision • • • Amongst the best portfolio quality (wholesale & retail) in the industry Strong credit culture. processes Specific provision cover (excluding write-offs.31% 0% 0.

58% 25 22. Mn 52.0 13.53% 1% 1.1 17.000 Net Profit 26. 2% 1. Fiscal year ended 31st March * 10 year Compounded Annual Growth Rate EPS for the year 2010 & 2011 has been recomputed to give effect of the share split from ` 10 to ` 2 13 1 .Consistent Financial Performance `.5 13 0% 2010 2011 2012 0 2010 2011 2012 Indian GAAP figures.77% EPS 1.000 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 ROA `.

Contents Tracking the India Growth Story Meeting Diverse Customers’ Needs Unique Franchise in the Indian Banking Sector Key Business Initiatives Financial Highlights Value Proposition 14 .

000 Others CV / CE Business Banking FIG Wholesale Advances • • Leveraging relationships with large & emerging corporates for multiple revenue streams Focus on house banking • • 500 Emerging Corporate Corporate Balanced mix between working capital financing. term loans and transactional banking Well diversified loan portfolio across major industry segments 0 2010 2011 2012 Dealers Vendors Corporate Distributors OEM Customers • • Leading provider of electronic banking services for supply chain management (SCM) Structured cash management-cum-vendor/distributor finance Indian GAAP figures. CV/CE – Large ticket commercial vehicle and construction equipment loan ` . 50 million. FIG – Financial Institutions and Government group. Fiscal year ended 31st March. „Others‟ includes Capital markets and commodity finance.Rupees 15 1 . Bn 1. and other consumer loans over `.Accessing Multiple Segments `. Total wholesale advances are as per the RBI guidelines for segmental reporting (Basel II).

Bn 28. * Gross Cash Management Volumes adjusted for collections on account of IPOs ` . Primary Settlements Accounts (Stock Exchanges) 1.Focus on Transactional Banking Opportunities `.000 850 0 2010 2011 2012 0 2010 2011 2012 • • Clear market leader : cash settlements on stock & commodities exchanges Leading provider of cash management solutions • • • Large corporates and SME Financial Institutions Government (including tax collections) For the Fiscal year ended 31st March.Rupees 16 1 .000 Gross Cash Management Volumes * Nos.700 14.

Fiscal year ended 31st March. BB – Business Banking. low reliance on trading revenue Treasury advisory services Plain vanilla FX offerings to retail and business banking segments FX and derivatives product sales to corporate and institutional customers Indian GAAP figures.Rupees Corp – Corporate.000 FX & Derivatives Revenues Customer Revenues Mix FIG 4% Others 8% BB 6% Corp 18% ECG 10% 6. Mn 12.000 0 2010 2011 2012 Retail 54% • • • • Revenues – Largely customer driven. ECG – Emerging Corporate Group.Customer Focused Treasury Products `. ` . FIG – Financial Institutions & Government Group. „Others‟ includes Capital Markets and Commodity Finance 17 1 .

Others‟ includes Tractor Loans. In arrangement with HDFC Ltd. Retail loans are classified as per RBI guidelines for segmental reporting (Basel II). Fiscal year ended 31st March.Rupees 18 1 . ` .200 Two Wheelers Gold Loans • • • Well diversified product mix Balancing volumes and market share with margins and risk Credit Cards Others Home Loans Personal Loans Commercial Vehicles Home Loans* (Mortgage) offering – origination (loan sanctions) now around ` 8 Bn per month 600 • Loan losses within product pricing parameters Business Banking Auto Loans 0 2010 2011 2012 Retail loans are net of loans sold and include loan assignments. etc Indian GAAP figures. Loans against Se curities.Retail Loans – Profitable Growth `.. Bn 1. Retail overdrafts. Loans to Self Help Group.

Cards – Achieving Scale Number of Cards Mn 22 `. well within the range priced in Merchant acquiring – over 180.Bn 500 Acquiring Thruputs 11 35 250 0 0 0 2010 2011 2012 2010 2011 2012 2010 2011 2012 Debit cards Credit cards • • • • Market leader in credit card (5. Fiscal year ended 31 st March.Bn 70 Credit Cards Receivables `. 44% growth in thru-puts Indian GAAP figures. ` .000 POS terminals.6 mn cards as of Mar ’12) Around 70% of new credit cards issued to internal customers Loss rates at cyclical lows in FY2012.Rupees FY 2012 – Fiscal year ended 31st March 2012 POS – Point of Sale 19 1 .

Bn Insurance Premium 26 600 13 0 2010 2011 2012 0 2010 Life 2011 General 2012 • • • • ` .Distribution of Third Party Products `.Rupees Steady performance in a challenging. volatile environment New regulation and change in product mix adversely impacted fees Relationship managers for private banking and high net worth segments Branch sales process to drive distribution of third party products Indian GAAP figures.Bn 1. Fiscal year ended 31st March 20 .200 Mutual Fund Sales `.

Banking on Rural India Banking Services for the rural eco-system through customised loan and deposit products whilst maintaining credit standards Local Government Loan Products Pre and Post Harvest Credit Tractor Loans Kisan Cards Small Working Capital Loan Sustainable Livelihood Banking Liability Products Individuals Food Processors Self Help Groups Regular / No frills savings accounts Term / Micro deposits Other banking products Intermediaries (Arhatiyas. traders) Farmers Life and General Insurance Payment ecosystem 21 .

Net Profit : ` 541 million HDB Financial Services • • NBFC catering to certain customer segments not served by the Bank Inherently lower cost structure • • Network size of 180 branches FY 2012 .Subsidiary Companies HDFC Securities Limited • • • • Amongst the top retail equity brokerages in the country Over 180 branches and 1.641 million.Rupees FY 2012 – Fiscal year ended March 31.Loan book : ` 39. 2012 22 .4 million customers Revenues from brokerage as well as distribution of financial products FY 2012 . Net Profit : ` 511 million ` .

Contents Tracking the India Growth Story Meeting Diverse Customers’ Needs Unique Franchise in the Indian Banking Sector Key Business Initiatives Financial Highlights Value Proposition 23 .

230 11.123 10.Key Financials `.5% 33.276 3.544 8.461 51.3% -29.656 Change Nine Months Ended Dec 12 110.988 14.7% 38.977 25.191 14.072 8.104 156.706) 175.6% 1.372 23.671 *On sale and revaluation (mark to market) of investments & includes miscellaneous income 24 .382 8. Quarter Ended Dec 2011 31.5% 30.160 11.087 Nine Months Ended Dec 11 89.390 55.7% 30.3% -6.591 (732) 45.4% 19.573 18.881 75.741 3.084 30.297 23.6% -0.580 3.7% -4. In million Quarter Ended Dec 2012 Net Interest Income Fees & Commissions FX & Derivatives Profit / (loss) on Investments* Net Revenues Operating Costs Provisions & Contingencies Tax Profit After Tax Indian GAAP figures (` Mn) .Rupees.019 2.9% 24.901 14.137 Change Year Ended Mar 2012 122.001) 126.520 48.755 11.140 23.4% 23.580 21.602 61. ` .874 22.843 37.2% (1.968 42.146 37.364 (1.9% 22.292 6.360 21.0% 1.388 37.405 85.389 16.6% 23.

1% Gross NPA / gross advances at 1.841 Bn CASA ratio at 45.4% Net Interest Margin at 4. 2011 25 .432 Bn • • • • • • • Deposits up by 22.6 Bn Gross advances increased by 24.Quarter ended December 2012 • • Net profit up by 30.0% Net NPA / net advances at 0.1% Core Cost-to-income ratio at 47.0% to ` 18. ` .total 17.2% Capital adequacy ratio (CAR) .0% of which tier I at 10.2% to ` 2.2% to ` 2.9% Indian GAAP figures (Bn =Billion).Financial Highlights .Rupees Net NPA = Gross NPA less specific loan loss provisions Comparisons are with respect to corresponding figures for the quarter ended December 31.

Contents Tracking the India Growth Story Meeting Diverse Customers’ Needs Unique Franchise in the Indian Banking Sector Key Business Initiatives Financial Highlights Value Proposition 26 .

Value Proposition – Healthy Growth. Data Mining & CRM. focus on asset quality Proven ability to generate Shareholder Value 27 . with expanding semi urban and rural footprint Wide Product range and multiple customer segment Branch Sales Process. Low Risk Growing economy / banking industry. geared for Cross sell Leveraging organic and inorganic growth opportunities Leading (Top 3) player across multiple products Strong Risk management. Gaining market share Healthy balance sheet and revenue growth Disciplined margin and capital management with a focus on ROA/ROE Nationwide network.

our ability to roll over our shortterm funding sources and our exposure to market and operational risks. but are not limited to: general economic and political conditions. such as “will”. tensions between India and Pakistan related to the Kashmir region. including tax. In addition. foreign exchange rates. volatility in investment income. unanticipated turbulence in interest rates. equity prices or other rates or prices. military armament or social unrest in any part of India. our growth and expansion. actual future gains. “anticipate”. anti-terrorist or other attacks by the United States. “intend”. “plan”.Certain statements are included in this release which contain words or phrases. that are “forward-looking statements”. tax or regulatory proceedings in India and in other jurisdictions we are or become a party to. and similar expressions or variations of these expressions. inflation. “expect”. our ability to market new products. accounting and banking regulations. “future”. “project”. changes in competition and the pricing environment in India. “will continue”. the adequacy of our allowance for credit and investment losses. a United States-led coalition or any other country. to update or revise any forward looking statements to reflect events or circumstances after the date in the statement. By their nature. the market acceptance of and demand for various banking services. “estimate”. the impact of changes in banking regulations and other regulatory changes in India and other jurisdictions on us. “should”. even if our expectations or any related events or circumstances change. losses or impact on net income could materially differ from those that have been estimated. . the United States or elsewhere. other factors that could cause actual results to differ materially from those estimated by the forward-looking statements contained in this document include. and we do not intend. the monetary and interest rate policies of the government of India. our ability to pay dividends. “aim”. the outcome of any legal. cash flow projections. the performance of the financial markets in India and globally. Our forward looking statements speak only as of the date on which they are made and we do not undertake any obligation. technological changes. terrorist attacks in India. but not limited to. certain of the market risk disclosures are only estimates and could be materially different from what may actually occur in the future. deflation. natural calamities. As a result. Actual results may differ materially from those suggested by the forward-looking statements due to certain risks or uncertainties associated with our expectations with respect to. “believe”. “objective”. our ability to implement our strategy successfully. the future impact of new accounting standards. instability or uncertainty in India and other countries which have an impact on our business activities or investments caused by any factor including the global financial crisis and problems in the Eurozone countries. and regional or general changes in asset valuations. changes in Indian and foreign laws and regulations. future levels of our non-performing loans.

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