ORGANIZATION PROFILE FORMATION OF THE COMPANY The Housing Development Finance Corporation Limited (HDFC) was amongst the

e first to receive an 'in principle' approval from the Reserve an! of "ndia (R ") to set up a #an! in the private sector$ as part of the R "'s li#erali%ation of the "ndian an!ing "ndustr& in '(()* The #an! was incorporated in +ugust '(() in the name of 'HDFC an! Limited'$ with its registered office in ,um#ai$ "ndia* HDFC an! commenced operations as a -cheduled Commercial an! in .anuar& '((/* PROMOTER HDFC is "ndia's premier housing finance compan& and en0o&s an impecca#le trac! record in "ndia as well as in international mar!ets* -ince its inception in '(11$ the Corporation has maintained a consistent and health& growth in its operations to remain the mar!et leader in mortgages* "ts outstanding loan portfolio covers well over a million dwelling units* HDFC has developed significant e2pertise in retail mortgage loans to different mar!et segments and also has a large corporate client #ase for its housing related credit facilities* 3ith its e2perience in the financial mar!ets$ a strong mar!et reputation$ large shareholder #ase and uni4ue consumer franchise$ HDFC was ideall& positioned to promote a #an! in the "ndian environment* BUSINESS FOCUS HDFC an!'s mission is to #e a 3orld5Class "ndian an!* The o#0ective is to #uild sound customer franchises across distinct #usinesses so as to #e the preferred provider of #an!ing services for target retail and wholesale customer segments$ and to achieve health& growth in profita#ilit&$ consistent with the #an!'s ris! appetite* The #an! is committed to maintain the highest level of ethical standards$ professional integrit&$ corporate governance and

regulator& compliance* HDFC an!'s #usiness philosoph& is #ased on four core values 6 7perational 82cellence$ Customer Focus$ 9roduct Leadership and 9eople* CAPITAL STRUCTURE The authori%ed capital of HDFC an! is Rs//: crore (Rs/*/ #illion)* The paid5up capital is Rs);)*< crore (Rs*)*; #illion)* The HDFC =roup holds '(*)> of the #an!'s e4uit& and a#out '1*<> of the e4uit& is held #& the +DDepositor& (in respect of the #an!'s +merican Depositor& -hares (+D-) "ssue)* Roughl& ;?> of the e4uit& is held #& Foreign "nstitutional "nvestors (F""s) and the #an! has a#out /1:$::: shareholders* The shares are listed on the -toc! 82change$ ,um#ai and the @ational -toc! 82change* The #an!'s +merican Depositor& -hares are listed on the @ew Aor! -toc! 82change (@A-8) under the s&m#ol 'HD '* TIMES BANK AMALGAMATION "n a milestone transaction in the "ndian #an!ing industr&$ Times an! Limited (another new private sector #an! promoted #& ennett$ Coleman B Co*CTimes =roup) was merged with HDFC an! Ltd*$ effective Fe#ruar& ;<$ ;:::* +s per the scheme of amalgamation approved #& the shareholders of #oth #an!s and the Reserve an! of "ndia$ shareholders of Times an! received ' share of HDFC an! for ever& /*1/ shares of Times an!* The ac4uisition added significant value to HDFC an! in terms of increased #ranch networ!$ e2panded geographic reach$ enhanced customer #ase$ s!illed manpower and the opportunit& to cross5sell and leverage alternative deliver& channels* DISTRIBUTION NETWORK HDFC an! is head4uartered in ,um#ai* The an! at present has an envia#le networ! of over ';;( #ranches spread over ))) cities across "ndia* +ll #ranches are lin!ed on an online real5time #asis* Customers in over ';: locations are also serviced through Telephone an!ing* The an!'s e2pansion plans ta!e into account the need to have a presence in all ma0or industrial and commercial centers where its corporate customers are located as well as the need to #uild a strong retail customer #ase for #oth deposits and loan products* eing a clearingCsettlement #an! to various leading stoc! e2changes$ the an! has #ranches in the centers where the @-8C -8 has a strong and active mem#er #ase* The an! also has a networ! of a#out over

;/;< networ!ed +T,s across these cities* ,oreover$ HDFC an!'s +T, networ! can #e accessed #& all domestic and international DisaC,asterCard$ Disa 8lectronC,aestro$ 9lusCCirrus and +merican 82press CreditCCharge cardholders* TECHNOLOGY HDFC an! operates in a highl& automated environment in terms of information technolog& and communication s&stems* +ll the #an!'s #ranches have online connectivit&$ which ena#les the #an! to offer speed& funds transfer facilities to its customers* ,ulti5#ranch access is also provided to retail customers through the #ranch networ! and +utomated Teller ,achines (+T,s)* The an! has made su#stantial efforts and investments in ac4uiring the #est technolog& availa#le internationall&$ to #uild the infrastructure for a world class #an!* The an!'s #usiness is supported #& scala#le and ro#ust s&stems which ensure that our clients alwa&s get the finest services we offer* The an! has prioriti%ed its engagement in technolog& and the internet as one of its !e& goals and has alread& made significant progress in we#5ena#ling its core #usinesses* "n each of its #usinesses$ the an! has succeeded in leveraging its mar!et position$ e2pertise and technolog& to create a competitive advantage and #uild mar!et share* BUSINESS FOCUS HDFC an!'s mission is to #e a 3orld5Class "ndian an!* The o#0ective is to #uild sound customer franchises across distinct #usinesses so as to #e the preferred provider of #an!ing services for target retail and wholesale customer segments$ and to achieve health& growth in profita#ilit&$ consistent with the #an!'s ris! appetite* The #an! is committed to maintain the highest level of ethical standards$ professional integrit&$ corporate governance and regulator& compliance* HDFC an!'s #usiness philosoph& is #ased on four core values5 7perational 82cellence$ Customer Focus$ 9roduct Leadership and 9eople* EFPRODUCT SCOPE: HDFC an! offers a #unch of products and services to meet the ever& need of the people* The compan& cares for #oth$ individuals as well as corporate

and small and medium enterprises* For individuals$ the compan& has a range accounts$ investment$ and pension scheme$ different t&pes of loans and cards that assist the customers* The customers can choose the suita#le one from a range of products which will suit their lifestage and needs* For organi%ations the compan& has a host of customi%ed solutions that range from Funded services$ @on5funded services$ Dalue addition services$ ,utual fund etc* These afforda#le plans apart from providing long term value to the emplo&ees help in enhancing goodwill of the compan&* The products of the compan& are categori%ed into various sections which are as followsG +ccounts and deposits* Loans* "nvestments and "nsurance* Fore2 and pa&ment services* Cards* Customer center* PRODUCTS AND SERVICES AT A GLANCE 1. PERSONAL BANKING A. Accoun ! " D#$o!% ! 5 Regular -avings +ccount 5 -avings 9lus +ccount 5 -avings,a2 +ccount 5 -enior Citi%ens +ccount 5 @o Frills +ccount 5 "nstitutional -avings +ccount 5 9a&roll -alar& +ccount 5 Classic -alar& +ccount 5 Regular -alar& +ccount 5 9remium -alar& +ccount 5 Defence -alar& +ccount 5 Hid's +dvantage +ccount 5 9ension -aving an! +ccount 5 Famil& -avings +ccount 5 Hisan @o Frills -avings +ccount 5 Hisan Clu# -avings +ccount 5 9lus Current +ccount

5 Trade Current +ccount 5 9remium Current +ccount 5 Regular Current +ccount 5 +pe2 Current +ccount 5 ,a2 Current +ccount 5 Reim#ursement Current +ccount 5 RFC 5 Domestic +ccount 5 Regular Fi2ed Deposit 5 -uper -aver +ccount 5 -weep5in +ccount 5 HDFC an! 9referred 5 9rivate an!ing B. Lo&n! 5 9ersonal Loans 5 Home Loans 5 Two 3heeler Loans 5 @ew Car Loans 5 Ised Car Loans 5 7verdraft against Car 5 82press Loans 5 Loan against -ecurities 5 Loan against 9ropert& 5 Commercial Dehicle Finance 5 3or!ing Capital Finance 5 Construction 84uipment Finance 5 7ffers B Deals 5 Customer Center C. In'#! (#n ! " In!u)&nc# 5 ,utual Funds 5 "nsurance 5 onds 5 Financial 9lanning 5 Hnowledge Centre 5 84uities B Derivatives 5 ,udra =old ar D. Fo)#* S#)'%c#! 5 Trade Finance

5 TravelersJ Che4ues 5 Foreign Currenc& Cash 5 Foreign Currenc& Drafts 5 Foreign Currenc& Che4ue Deposits 5 Foreign Currenc& Remittances 5 Cash To ,aster 5 Fore29lus Card E. P&+(#n S#)'%c#! 5 @et -afe 5 9repaid Refill 5 ill 9a& 5 Direct 9a& 5 Disa ,one& Transfer 5 85,onies 8lectronic Funds Transfer 5 82cise B -ervice Ta2 9a&ment F. Acc#!! You) B&n, 5 7ne Diew 5 "nsta +lerts 5 ,o#ile an!ing 5 +T, 5 9hone an!ing 5 ranch @etwor! G. C&)-! 5 -ilver Credit Card 5 =old Credit Card 5 3oman's =old Credit Card 5 9latinum plus Credit Card 5 Titanium Credit Card 5 Dalue plus Credit Card 5 Health plus Credit Card 5 HDFC an! "dea -ilver Card 5 HDFC an! "dea =old Card 5 Compare Cards 5 Transfer B -afe 5 Trac! &our Credit Card H. G# Mo)# .)o( You) C&)-

5 7ffers B -avings 5 ,& Rewards 5 "nsta 3onder% 5 +dd57n Cards 5 Credit Card Isage =uide 5 8as& 8," 5 @et safe 5 -mart 9a& 5 -ecure 9lus 5 ,& Cit& enefit Card 5 De#it Cards 5 8as& -hop"nternational De#it Card 5 8as& -hop =old De#it Card 5 8as& -hop"nternational usiness De#it Card 5 8as& -hop3oman's +dvantage De#it Card 5 9repaid Cards 5 Fore2 9lus Card 5 Hisan Card I. Cu! o(#) C#n )# 5 7ffers B Deals 5 3inners of Contests B 9romotions /. W0o1#!&1# B&n,%n2 A. Co)$o)& # Funded -ervices @on Funded -ervices Dalue +dded -ervices "nternet an!ing B. S(&11 " M#-%u( En #)$)%!#! Funded -ervices @on5Funded -ervices -peciali%ed -ervices "nternet an!ing C. F%n&nc%&1 In! % u %on! " T)u! ! an!s Financial "nstitutions ,utual Funds -toc! ro!ers

MILESTONES IN THE HISTORY HDFC an! #egan its operations in '((/ with a simple missionG to #e a K3orld5class "ndian an!K* The& reali%ed that onl& a single5minded focus on product 4ualit& and service e2cellence would help us get there* Toda&$ the& are proud to sa& that the& are well on our wa& towards that goal* "t is e2tremel& gratif&ing that their efforts towards providing customer convenience have #een appreciated #oth nationall& and internationall&* AWARDS " ACHIEVEMENTS o. HDFC BANK
Bu!%n#!! To-&+3Mon% o) G)ou$ !u)'#+ F%n&nc%&1 E*$)#!!3E)n! " Youn2 A4&)T0# A!%&n B&n,#) E*c#11#nc# %n R# &%1 F%n&nc%&1 S#)'%c#! A4&)-! A!%&n B&n,#) Ou 1oo, Mon#+ " NDTV P)o.% One of India's "Most Innovative Companies". Best Bank Award in the Private Sector category Best etai! Bank in India. Managing "irector Aditya P#ri won the $eadership achievement Award for India Best Bank Award in the Private sector category

MERGER HDFC an! and Centurion an! of 9un0a# merger at share swap ratio of 'G;(*The oards of HDFC an! and Centurion an! of 9un0a# met on ;/ Fe#ruar&$ ;::? and approved$ su#0ect to due diligence$ the share swap ratio for the proposed merger of Centurion an! of 9un0a# with HDFC an!* The -cheme of +malgamation envisages a share e2change ratio of one share of HDFC an! for twent& nine shares of Centurion an! of 9un0a#* The com#ined entit& would have a nationwide networ! of '$')? #ranches (the largest amongst private sector an!s) a strong deposit #ase of around Rs* '$;:: #illion and net advances of around Rs* ?/:#illion* The #alance sheet si%e of the com#ined entit& would #e over Rs* '$/:: #illion* M). S0&%1#n-)& B0&n-&)%5 M&n&2%n2 D%)#c o) &n- CEO5 C#n u)%on B&n, o. Pun6&7

said$ L3e are e2tremel& pleased to receive the go ahead from our #oard to pursue this opportunit&* + merger #etween the #an!s provides significant s&nergies to the com#ined entit&* The proposed merger would further improve the franchise and customer proposition offered #& the individual #an!s*M
SUGGESTIONS:

Finall& some recommendations for the compan& are as followsG5 To ma!e people aware a#out the #enefit of #ecoming HDFC an!Js -ales 82ecutive$ following activities of advertisement should #e done through '* 9rint ,edia* ;* Hoarding B anners* N* -talls in Trade Fares )* Distri#ution of leaflets containing details information* The #an! should provide life time valid +T, card to all its customers* ,inimum #alance for savings account should #e reduced from Rs /::: to Rs ':::$ so that people who are not financiall& strong enough can maintain their account properl&* The compan& should provide a pass #oo! to all its customers ,a!e people understand a#out the various #enefits of its products* Compan& should organi%e the program in the societ&$ so that people will #e aware a#out the compan& and different products of the #an! Compan& should open more #ranches in different cities*

PUN8AB NATIONAL BANK ORIGIN 9un0a# national #an! was esta#lished in '?(/ at Lahore$ undivided "ndia$ 9un0a# @ational an! (9@ ) has the distinction of #eing the first "ndian #an! to have #een started solel& with "ndian capital* The #an! was nationali%ed in .ul& '(<( along with 'N other #an!s* From its modest #eginning$ the #an! has grown in si%e and stature to #ecome a front5line #an!ing institution in "ndia at present* PROFILE 3ith its presence virtuall& in all the important centers of the countr&$ 9un0a# @ational an! offers a wide variet& of #an!ing services which include corporate and personal #an!ing$ industrial finance$ agricultural finance$ financing of trade and international #an!ing* +mong the clients of the an! are "ndian conglomerates$ medium and small industrial units$ e2porters$ non5 resident "ndians and multinational companies* The large presence and vast resource #ase have helped the an! to #uild strong lin!s with trade and industr&* 9un0a# @ational an! is serving over N*/ crore customers through )/): 7ffices including );' e2tension counters 5 largest amongst @ationali%ed an!s* 9un0a# @ational an! with ''; &ear tradition of sound and prudent #an!ing is one among N:: glo#al companies and seven "ndian companies which are e2pected to emerge as challengers to 3orldJs leading #lue chip companies* 3hile among top '::: world #an!s$ LThe an!erM$ the leading maga%ine in London$ has placed 9@ at the ;)?th position$ the #an! features at 'N:?th position among For#eJs =lo#al ;::: list of glo#al giants and fast growing companies* +t the same time$ the #an! has #een conscious of its social responsi#ilities #& financing agriculture and allied activities and small scale industries (--")* Considering the importance of small scale industries #an! has esta#lished N' specialised #ranches to finance e2clusivel& such industries* -trong correspondent #an!ing relationship which 9un0a# @ational an! maintains with over ;:: leading international #an!s all over the world enhances its capa#ilities to handle

transactions world5wide* esides$ #an! has Rupee Drawing +rrangements with '/ e2change companies in the =ulf and one in -ingapore* an! is a mem#er of the -3"FT and over '/: #ranches of the #an! are connected through its computer5#ased terminal at ,um#ai* 3ith its state5of5art dealing rooms and well5trained dealers$ the #an! offers efficient fore2 dealing operations in "ndia* The #an! has #een focusing on e2panding its operations outside "ndia and has identified some of the emerging economies which offer large #usiness potential* an! has set up representative offices at +lmat&G Ha%a!histan$ -hanghaiG China and in London* esides$ an! has opened a full& fledged ranch in Ha#ul$ +fghanistan* Heeping in tune with changing times and to provide its customers more efficient and speed& service$ the an! has ta!en ma0or initiative in the field of computeri%ation* +ll the ranches of the an! have #een computeri%ed* The an! has also launched aggressivel& the concept of K+n& Time$ +n& 3here an!ingK through the introduction of Centrali%ed an!ing -olution (C -) and over ;):( offices have alread& #een #rought under its am#it* 9@ also offers "nternet an!ing services in the countr& for Corporates as well as individuals* "nternet an!ing services are availa#le through all ranches of the an! networ!ed under C -* 9roviding ;) hours$ N</ da&s #an!ing right from the 9C of the user$ "nternet an!ing offers world class #an!ing facilities li!e an&time$ an&where access to account$ complete details of transactions$ and statement of account$ online information of deposits$ loans overdraft account etc* 9@ has recentl& introduced 7nline 9a&ment Facilit& for railwa& reservation through "RCTC 9a&ment =atewa& 9ro0ect and 7nline Itilit& ill 9a&ment -ervices which allows "nternet an!ing account holders to pa& their telephone$ mo#ile$ electricit&$ insurance and other #ills an&time from an&where from their des!top* +nother step ta!en #& 9@ in meeting the changing aspirations of its clientele is the launch of its De#it card$ which is also an +T, card* "t ena#les the card holder to #u& goods and services at over ((;1: merchant esta#lishments across the countr&* esides$ the card can #e used to withdraw cash at more than ;/::: +T,s$ where the ',aestro' logo is displa&ed$ apart from the 9@ 's over ':() +T,s and tie up arrangements with other an!s* VISION AND MISSION VISION LTo evolve and position the an! as a world class progressive cost effective and customer friendl& institution providing comprehensive financial and related servicesO integrating frontiers of technolog& and serving various segments of societ& especiall& the wea!er sectionO committed to e2cellence

in serving the pu#lic and also e2cellence in serving the pu#lic and also e2celling in corporate values*M MISSION LTo provide e2cellent professional services and improve its position as a leader in the field of financial and related servicesO #uild and maintain a team of motivated and committed wor!force with high wor! ethosO use latest technolog& aimed at customer satisfaction and act as an effective catal&st for socio5economic developmentM A WARDS " ACHIEVEMENTS o. PUN8AB NATIONAL BANK
"Best I% %eam of the &ear Award" Best I% 'ser in Banking ( )inancia! Services Ind#stry * +,,.o!den Peacock Award /ationa! Award for 01ce!!ence in SSI $ending Money O#t!ook Award 2 +,,On# o. In-%&9! :Mo! Inno'& %'# Co($&n%#!:. 7+ NASSCOM %n $&) n#)!0%$ 4% 0 Econo(%c T%(#! .o) E*c#11#nc# %n Co)$o)& # Go'#)n&nc# 3/;;< 7+ In! % u # o. D%)#c o)! R&n,#- /n- .o) = con!#cu %'# +#&)! 3 /;;/5/;;>5 /;;= " /;;< Runn#) u$ %n 9B#! B&n, ?$u71%c S#c o)@ o. 0# +#&) A4&)-9 3/;;<

PNB`S KEY COMMITMENTS We promise to: 1@ Ac .&%)1+ &n- )#&!on&71+ %n &11 ou) -#&1%n2! 4% 0 +ou 7+: meeting the commitments and standards in this Code$ for the products and services we offer$ and in the procedures and practices our staff follow P ma!ing sure our products and services meet relevant laws and regulations P our dealings with &ou will rest on ethical principles of integrit& and transparenc&* /@ H#1$ +ou o un-#)! &n- 0o4 ou) .%n&nc%&1 $)o-uc ! &n- !#)'%c#! 4o), 7+: giving &ou information a#out them in plain Hindi andCor 8nglish andCor the local language P e2plaining their financial implications and

P helping &ou chooses the one that meets &our needs* >@ D#&1 Au%c,1+ &n- !+($& 0# %c&11+ 4% 0 0%n2! 0& 2o 4)on2 7+: correcting mista!es 4uic!l& P handling &our complaints 4uic!l& P telling &ou how to ta!e &our complaint forward if &ou are still not satisfied and P reversing an& #an! charges that we appl& due to our mista!e* =@ Pu71%c%!# 0%! Co-#5 $u % on ou) 4#7!% # &n- 0&'# co$%#! &'&%1&71# .o) +ou on )#Au#! . SWOT ANALYSIS STRENGTHS: -trong growth in #usiness =ood #ranch networ! FHighest C+-+ among 9-I Highest @",s compared to peers FFine growth in fee income last &ear FDe5ris!ed investment portfolio F+de4uate Capital F9roactive on technolog& front* WEAKNESS: Higher Delin4uencies FHigher provisions deterring growth in net profits F@o development on insurance venture F-lower growth on international front F-low5down in treasur& profits F"ts su#sidiaries 9@ Housing Finance B 9@ =ilts are not impressive OPPORTUNITIES: 82pansion on international front F+mple opportunit& to e2pand #usiness$ as the econom& is doing well* F=rowth in "nsurance and ,utual Fund #usiness THREATS: 8ntr& of foreign #an!s F-harp rise in interest rates can hamper economic growth FRegulator& amendments F"mplementation of asel "" re4uires higher capital FDownturn in +griculture growth

PRODUCTS AND SERVICES: PRODUCTS: 9ersonal #an!ing Corporate #an!ing Home loans +#out loan +T,CD8 "T cards Deposit interest rates SERVICES Loc!er facilities Depositor& services -enior citi%en scheme RT=-C@8FTC-F,-G9@ ,erchant #an!ing 7nline ta2 accounting s&stem 8lectronic fund transfer 8lectronic clearing service 7ffshore #an!ing '; hours #an!ing