Performance ReviewH1-2000-2001

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Snapshot Retail Banking Corporate Banking Performance Indicators US GAAP

Contents

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H1-2000 Snapshot

Net Profit up 59% YoY

Net interest income up 154%

Cost of deposit < 8%

Core Fee income doubles

Customer accounts reach 1.2 mn (0.65 mn)

NRI accounts cross 40,000 (23,400)

ATMs cross 310 (175)

(Figures in brackets are as of 31st March 2000))

Infinity accounts reach 2,66,000 (1,10,000)

PPA relationships increase to 2500 (950)

No. of credit cards reach 69000 (10,656)

Corporate assets relationships reach 968 (852)

CMS relationships reach 282 (254)

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H1- 2000 Snapshot (contd.)

Higher infrastructure and new products

expenditure for retail business

Decline in Trading Income

Cost to Income Ratio increases to 52%

Adverse Mark-to-market impact

Higher loan loss provisioning

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Business LevelsRs. million

Savings deposits up by 207% Composition of demand deposits increases due to retail

thrust Retail deposits constitute 48% of total deposits Customer accounts increases to 1.26 mn from 0.65 mn in

March 2000

30-Sep-00 30-Sep-99 Growth 30-J un-00 31-Mar-00

Deposits 97,280 65,800 48% 8,740 98,660

- SB 8,430 2,750 207% 6,720 5,330

- Avg demand dep 20.60% 13.99% 20.26% 17.90%

Advances including credit substitutes 63,240 34,150 85% 53,620 51,020SLR & other Investments 32,150 20,770 55% 32,670 30,670

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Summary Ratios (Indian GAAP)

H1:FY00-01

H1:FY99-00

FY2000

Fully Diluted EPS (Rs.) 3.57* 2.67* 6.38

Return on Assets (%) 1.29 1.17 1.31

Return on Net Worth (%) 11.85 25.03 30.14

*: Not annualised

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Snapshot Retail Banking Corporate Banking Performance Indicators US GAAP

Contents

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Growth in Customer accounts

637,000 1,245,000

31.3..2000 30.09.200095% growth

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Growth in Retail deposits

Rs. 30,570 mn

Rs. 46,840 mn

31.3.2000 30.9.2000

53% growth

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As on 31 March 2000

31%69%

Share of Retail deposits in Total deposits

As on 30th September 2000

48%52%

Retail

Corporate

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Channel Growth

Call Centre

ATMs

Branches

31.03.00 30.09.00 Variation

81+16=97 86+16=102 5

175 311 136

3 10 7

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Growth in Registration for channels

Telephone banking

31.03.00 30.09.00 Variance

15,000 95,000 80,000

110,000 275,000 165,000

- 1,332 1,332

Mobile Banking

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New Product Launches

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NRI Services

1,600 Money2India remittances received for total value of USD 6.50 million

8,000 On line accounts opened

Total NRI depositsRs. 5,380 mn31.03.2000 30.09.2000

Rs.8,020 mn

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Other initiatives

B2C initiatives 24 billers registered till date across 11

cities Tie up with 10 shopping malls

Third party distribution 9% GOI Relief Bonds Mutual Funds on the Net - Tie up with 6 Mutual

Funds

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Snapshot Retail Banking Corporate Banking Performance Indicators US GAAP

Contents

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Initiatives taken Revised Loan Policy put in place. 90 % of Incremental Assets rated A & above. Rating Exercise:

All new accounts approved only after rating. 80% of asset Exposure re-rated under new rating model. Entire CMS & Corporate treasury instruments relationships rated.

Bankers to NSE. Capital Market Segment Launched. Institutional Group, SBG, and ABG created. Risk participation in L/Cs. Entry into all major oil refinery accounts

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Initiatives taken (contd.)

Dividend warrant business added to suite of CMS services - 79 issues , value Rs.12,011 mn, average float Rs. 300 mn

Roll out of Corporate related agricultural funding products - 4 corporates, 5000 borrowers, Rs. 550 mn exposure approved.

Corporate Vendor/ Dealer funding products with 12 corporates, 215 dealers, Rs. 130 crores exposures approved.

Tie-up with 5 Vortals for B2B services.

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Incremental Market share in Assets

0.25%

2.16%

4.80%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

30.09.1999 31.03.2000 30.09.2000

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Rs. millionCore Fee Income

670

280

560

0 200 400 600 800

Rs mn

31-3-2000 30-6-2000 30-9-2000

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Assets: Industry-wise - Top 10: Sept 30, 2000

Telecom(3.83%)

Textiles(3.82%)

Chemicals(6.68%)

Infrastructure (7.42%)

Petroleum(10.89%)

All Engineering

(9.73%)

Agri + SSI(2.75%)

Automobiles including

trucks(2.72%)

Housing(3.41%)

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Snapshot Retail Banking Corporate Banking Performance Indicators US GAAP

Contents

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Balance Sheet: Liabilities

Sept 30,2000

Sept 30, 99 Mar 31, 2000

Capital 1,968 1,650 1,968

Reserves & Surplus 10,229 1,874 9,527

Net worth 12,197 3,524 11,495

Deposits 97,283 65,797 98,660

Borrowings 6,222 2,712 4,915

Other liab. & prov. 4,927 3,550 5,656

Total liabilities 120,629 75,583 120,726

Rs. million

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Balance Sheet: Assets

Sept 30,2000

Sept 30, 99 Mar 31, 2000

Cash and RBI bal. 7,163 5,960 7,219

Bal. With banks 11,983 10,450 26,933

Investments 47,300 32,512 44,167

Advances 47,768 22,410 36,573

Fixed assets 2,429 2,010 2,221

Other assets 3,985 2,240 3,613

Total assets 120,629 75,583 120,726

Rs. million

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H1 Operating Profit

H1 01 H1 00 Growth Q1 01 Q2 01Interest income 5,709 3,876 47% 2,836 2,873Interest exp. 3,896 3,161 23% 1,982 1,914Net int income 1,814 715 154% 854 960Core Fee income 559 279 101% 255 305Treasury Income 94 271 -65% 57 37Operating exp 1,263 524 141% 547 716Operating Profit 1,204 741 62% 619 585

Net interest income up by 155% (YoY) Core Fee income doubles Operating Profit up by 62%

Rs million

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H1 Profit Statement

Net profit up by 59% Operating Profit up by 62% YoY

H1 01 H1 00 Q1 01 Q2 01Operating Profit 1,204 741 619 585Less :Provision for Income Tax 135 103 76 60Provision for Wealth Tax 2 0 1 1Bad Debts Provision 219 201 101 118Depreciation on Investments 91 -30 35 56Provision for Operational Risk 6 .. 4 2Others 50 26 1 49Net Profit 702 441 401 301

Rs. million

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Q2 Operating Profit

Q2 01 Q2 00 GrowthInterest income 2,873 1,887 52%Interest exp. 1,914 1,553 23%Net interest income 960 334 187%Core Fee income 305 152 101%Treasury Income 37 165 -78%Operating exp 716 272 163%Operating Profit 585 379 54%

Rs. million

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Q2 Profit Statement

Q2 01 Q2 00Operating Profit 585 379Less :Provision for Income Tax 60 101Provision for Wealth Tax 1 0Bad Debts Provision 118 96Depreciation on Investments 56 -69Provision for Operational Risk 2 0Others 49 12Net Profit 301 239

Rs. million

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Interest SpreadH1 01 H1 00 FY 00

Yield on advances 13.04% 14.16% 14.06%Yield on investments 11.20% 11.94% 11.52%Cost of deposits 7.99% 9.49% 8.72%Interest rate spread 2.72% 1.88% 2.30%Earning assets (average) to total assets 95.78% 94.72% 93.91%

On advances Increasing exposures to higher rated corporates Increase in short-term loans based on tenor based PLR Increase in exposure under Multi Currency Credit Reduction in yield due to interest derecognition

On deposits Increase in demand deposit composition

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Snapshot Retail Banking Corporate Banking Performance Indicators US GAAP

Contents

31

Income Statement: US GAAP

Net income down due to MTM losses on Trading

H1 01 H1 00 Growth Q1 01 Q2 01Interest revenue 5,684 3,821 49% 2,893 2,791Interest expense 3,899 3,152 24% 1,986 1,913Net interest revenue 1,785 669 167% 907 878Provision for credit losses 280 110 155% 130 150Non interest revenue 367 688 -47% 327 40Non interest expense 1,222 525 133% 547 675Income before taxes 650 722 -10% 557 93Income tax expense 43 96 111 -68Net income 607 626 -3% 446 161

Rs. million

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Reconciliation of net income - US GAAP

Rs. million

H1:2000-01 H1:99-00

Net income under US GAAP 607 626

Reconciliation between US GAAP and Accounting Standards followed in India

Profit under Indian GAAP 702 441

Deferred taxation 184 51

Loan impairment (66) 82

Mark to Market impact on investments (283) 114

ADR Issue expenditure charged to P & L A/c 54 -

Others 16 (62)

Profit under US GAAP 607 626

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Thank You