A REPORT ON

“IndusInd Bank; Methods Products and Services, Customer’s Expectations”

Submitted in June 2010

COMPANY

IndusInd Bank

SUBMITTED BY

Pammi Kumari

2010

Human Resource

Global School of Management Science, Pushp Vihar, NBCC Plaza, Saket

New Delhi
 TABLE OF CONTENTS

Topics
Page No

Certificate of Originality
3

Declaration
4

Acknowledgements
5

Introduction and Company Profile

6

Findings and Conclusion 75

Executive Summary 76
 CERTIFICATE

This is to certify that Mr/Ms Pammi Kumari

student of SECOND YEAR- Semester II has satisfactorily completed her project on
“IndusInd Bank, methods, products and services”, under my guidance in partial
fulfillment of the requirement of M.M.S. Semester II Examination of Gauhati University
during academic year 2009-10.

Date: June, 8. 2010 Guide: Miss Rajni

Place: Patna, Bihar

DECLARATION

I, Pammi Kumari, a student of MBA program (2nd semester) of 2009-11

batch, at the Global School of Management Science, New Delhi, do here by
declare that this project report entitled “[IndusInd Bank; Methods,
Products and Services”, under my guidance in partial fulfillment of the
have been carried out by me during SUMMER INTERNSHIP under the guidance
of Mr. Deepak Kumar as per the norms prescribed by the University of
Gauhati.
 ACKNOWLEDGEMENT

I would consider it my privilege to express my gratitude and respect to all those who have
guided me in the completion of this project IndusInd Bank; Methods,Proucts and,
Services”.

I take pride in offering my sincere gratitude to my project guide Miss Rajni for her
valuable suggestions, excellent guidance and motivation to me, throughout the course of
the project.

I am also thankful to Mr. A. Basu, Director(Global School of Management Studies).

I take pride in offering my sincere gratitude to IndusInd Bank & my summer guide as
well as Miss Rajni, HR for her valuable support, excellent guidance and motivation to
me, throughout the course of the project Infallibly, I would want to mention the constant
motivation I got from my friends for completion of the project.

IndusInd
Bank
1.1 Introduction and Company Profile: A
Financial Institution is a place from where financial help can be obtained. Banks have been
such biggest financial institutions. Any nation would ever depend upon such banks for its
holistic development. At IndusInd bank this idea has been given preference, and the
responsibilities have been involuntarily taken up.

The project deals with the kind of products that we presently have at the IndusInd, and those
that we should keep in mind for the future. The great methodology that was adapted to, here at
the bank IndusInd – that, no sooner it had started its journey than, climbing all the ladders it
had set foot on the way to become a bank that was growing with the speed of light. A place
where people looked for honest dealings and businessmen came looking for lucrative offers.

The later part of the report deals with people expectations; again a very interesting and deep
rooted question, as we also understand that people’s expectations vary depending upon the
nature of organization. Private Banks are expected to perform in a somewhat different way.

Credit Cards have been discussed in detail. Worldwide acceptance of these plastic cards have
made them so popular amongst the shoppers, and savers alike, that we expect a day when one
wouldn’t need to carry any money with himself. General face of the credit cards has been
presented in a nice manner.

Most importantly our aim has been to assess the moves of IndusInd Bank, for a critical study;
that has been backed with the relevant reports from the internet and the company’s website.
The data can be validated through active clickable links, which has been provided, where-ever
felt necessary.

As for the people’s expectation, a large portion deals with the facts and general notion. The
data gathered has also been consolidated.

Early History and Career: The idea behind IndusInd Bank, named after the Indus Valley
civilization, was conceived by Mr. Srichand P. Hinduja, the head of the Hinduja Group. One of
the first new-generation private banks in India, IndusInd Bank was inaugurated in April 1994, by
Dr. Manmohan Singh, the present Prime Minister of India, who was then the Finance Minister of
the country. It was established with the help of collective contributions from the NRI
community, towards the economic and social development of India.

The operations of IndusInd Bank were started with a capital base of Rs. 1,000 million. Of the
total 1,000 million, Rs. 600 million was raised through private placements by Indian Residents
and Rs. 400 million was contributed by Non-Resident Indians (NRIs). A decade after its
establishment i.e. in June 2004, IndusInd Bank was merged with Ashok Leyland Finance Ltd,
which was one of the largest leasing finance and hire purchase companies in India, at that time.
With this, the bank increased its customer base and geographical penetration.

Branches & ATMs

Within a few years of its foundation, IndusInd Bank started climbing the ladder of success and
became one of the fastest-growing banks in the Indian banking sector. By 2006, it had
expanded its branch network, from 61 in 2004, to 137. Apart from setting up 150 ATM centers
of its own, the bank also concluded multilateral arrangements with other banks, taking the total
number of authorized ATM outlets to 15,000. All the branches as well as ATMs of IndusInd Bank
are connected to its central database, via a satellite that operates on the latest version of IBM’s
AS400-720 hardware & Midas Kapiti (now Misys) software.

Businesses
IndusInd Bank operates in a diverse range of businesses, which include Corporate Banking,
Retail Banking, Treasury and Foreign Exchange, Investment Banking, Capital Markets, Non-
Resident Indian (NRI) / High Networth Individual (HNI) Banking and Information Technology
(through a subsidiary). It also claims the distinction of being the first bank in India that received
ISO 9001:2000 certification for its Corporate Office and its entire network of branches.

For success of any bank its services and products are the sole ways to judge and further
develop it. IndusInd has been progressive in this regard, and within merely a few years of its
operation has become India’s one of the foremost institution providing financial help. Let us
analyze these products and services, and then draw out the chart of other successful private
banks in India. Yes, it’s true! IndusInd has yet to be seen topping all the charts in terms of
excellence, and bringing its services to the world class level. It won’t be enough just to copy the
actions taken by these great Financial giants like, the HDFC and ICICI etc. Here, we will take up
a look at the services provided by the IndusInd, closely comparing it with the other giants. First
of all we will try to dig our head into the facts and figures regarding ventral success.

1.2 Objectives & Limitations OF THIS PROJECT:

To assess the moves made by IndusInd Bank in order to become fastest growing
company in India. The kind of services and products that are being offered presently
here. A comparison has also been made and among the three giants of India;
namely- ICICI, HDFC and the IndusInd Bank. Their success rates have been higher,
and our study would critically observe the deviations from the rules that were
adopted by IndusInd and their services.

Methods of Delivering Best Services: IndusInd Bank Ltd., a new-generation private-sector

bank, commenced operations in 1994 and has a net worth of Rs. 829 crores as of March 31,
2005. Driven by technology, it has taken steps to establish and upgrade its support systems for
the introduction of retail banking products and alternative delivery channels, while continuing
to expand its network of branches. In its eleven years of existence, the Bank has displayed its
commitment to global benchmarks in retail banking by proactively adopting the requirements
of ISO 9001:2000 quality certification for its entire network of branches. It was one of the first
banks to go live on the RTGS platform and enjoys clearing bank status for BSE, NSE, MCX and
NCDEX. It also offers DP facilities for the stock and commodity segments.

Since the merger of Ashok Leyland Finance in June 2004, the Bank has expanded its retail
portfolio. It is a large player in the financing of commercial vehicles, utility vehicles, 2/3-
wheelers and construction equipment. The Bank has been given the highest P1+ rating for its
FDs by CRISIL, who have also assigned the highest safety ratings to the Bank’s Pass Through
Certificates. It has also been given the highest rating of F1+ for its Certificates of Deposit by
Fitch Ratings India. The Bank’s Tier-II Bonds have been rated as LA+ by ICRA and as A+ (ind)
by Fitch.

1.3 THE METHODOLOGY:

Today IndusInd is one of the best banks where investors can safely invest their
money for higher returns. To build up such a relationship with its customers the
bank has constantly vied to deliver the best services. Its products are the result of
several research and studies done through advanced techniques. The products have
gone through tough tests. We will look at the prospectus of these products and
services.

INTRODUCTION:

SUMMARY OF BUSINESS

Overview

It is a private sector bank in India and provides a wide range of banking and financial products and services
to individuals, large companies and small businesses. Its activities are organized into the
following business units:

 Consumer Banking;
 Corporate and Commercial Banking;
 Global Markets; and
 Transaction Banking.

It had total assets of approximately Rs. 278 billion as of June 30, 2009, compared with approximately Rs.
276 billion as of March 31, 2009 and approximately Rs. 233 billion as of March 31, 2008. Its net profit for
the year ended March 31, 2009 was Rs. 1,483.39 million, compared with Rs. 750.54 million and Rs. 672.22
million for the years ended March 31, 2008 and March 31 months ended June 30, 2008. As of June 30,
2009, our paid-up capital was Rs. 3.55 billion and our authorized capital was Rs. 5 billion.

As of June 30, 2009, it had a customer base of approximately 2.02 million customers, compared with
approximately 1.80 million as of March 31, 2008. As of the same date, it had a presence in 147 locations
spread across India, including 180 branches and 378 ATMs, of which 198 were off-site ATMs. In addition,
we have representative offices in Dubai and London and correspondent banking relationships with various
banks worldwide. We also have arrangements with certain banks in the Middle East and the United States
and certain exchange houses in the Middle East, Singapore and Hong Kong to enhance our capability in
providing international remittance services.

As of June 30, 2009, our benchmark prime lending rate was 16.75%. Our debt is rated investment-grade by
ICRA and the Indian subsidiaries of S&P and Fitch. The ratings are as follows: P1+ by CRISIL (a
subsidiary of S&P) for our certificate of deposit program, LA and LA+ by ICRA for our Upper Tier II bond
program and Lower Tier II bond program, respectively, and A (ind) and BBB+(ind) by the Indian subsidiary
of Fitch for our Lower Tier II subordinate debt program and Upper Tier II bond program, respectively.

Our registered office is located at 2401 Gen. Thimmayya Road (Cantonment), Pune 411001, India. Our
corporate office is located at 701 Solitaire Corporate Park, 167 Guru Hargovindji Marg, Andheri Kurla
Road, Chakala, Andheri (East), Mumbai 400 093, India. Our telephone number is +91 22 6641 2200.

It was established in 1994 as part of the group of nine "New Private Sector Banks" licensed by the
Government of India as part of its economic liberalization program. As of March 31, 2009, it was one of
seven "New Private Sector Banks" operating in India.

Its promoters are IndusInd International Holdings Ltd. And its wholly owned subsidiaries De Five
(Mauritius) Holdings Ltd. and IndusInd Ltd. All its promoters are organized in Mauritius.

Equity Shares have been listed on the Bombay Stock Exchange and the National Stock Exchange of India
since its initial public offering in 1998. In 2003, IndusInd Enterprise & Finance Limited, a non- banking
financial company and one of its promoters, merged with them. In 2004, Ashok Leyland Finance Limited,
one of the largest non-banking financial companies in India and which was controlled by the Hinduja
Group, merged with us. Such mergers served to expand our capital base. In addition, as a result of the merger
with ALFL, it was able to more than double our branch network following completion of the merger.

In March 2007, issued 29,490,300 Equity Shares in connection with the issuance and listing of global
depository receipts, each representing one Equity Share, at an offer price of US$ 1.147 per global
depositary receipt, aggregating approximately US$33.83 million in proceeds. In June 2008, issued
35,192,064 Equity Shares in connection with the issuance and listing of global depositary receipts, each
representing one Equity Share, at an offer price of US$ 1.47 per global depositary receipt, aggregating
approximately US$51.73 million in proceeds. All such global depositary receipts representing our Equity
Shares are listed on the Luxembourg Stock Exchange.

As of June 30, 2009, we had one wholly owned subsidiary, ALF Insurance Services Private Limited, which
is yet to commence operations as certain regulatory approvals applied for, which are required for its
proposed insurance broking operations, are pending. Accordingly, its financial results are not consolidated
into our financial statements. The members of its board of directors are C.M. Sambasivam and S.T.
Krishnekumaar.

The various products launched by the company has contributed to success in this highly competitive world. The choice of
these products were based on research and it had a solid foundation of values established by its promoters.

Here, we should present the complete result of these operations; paying special attention to its unique products and services,
one by one. Be it the internet banking of today’s tech- savvy world, or any other means of communication through which a
range of customers can be contacted, the bank boasts of a complete networking system, established to gain the loyalty and
goodwill of its customers. Mobile phones have reached the common man and it is no exception to the areas through which a
customer could be contacted, and hence IndusInd has adopted that as well for keeping the bankers informed.

he complete data regarding the results of these operations have been presented; keeping in mind what it requires to account for
these services.
Insurance Service:
The following table sets forth certain summary financial information of ALF Insurance Services Private
Limited.
As of March 31,
2009 2008 2007

(Rs. Millions, except for earnings per share and net

asset value per share)

Share capital .................................................................................................. 5.00 5.00 5.00

Reserve and surplus (excluding revaluation reserves) ................................. 1.17 0.84 0.51 0.32
Income/sales .................................................................................................. Profit (Loss) 0.55 0.56 0.18 0.37
after tax .................................................................................... Earnings per 0.33 0.33 11.02
share ......................................................................................... Net asset value per 0.65 0.67
share............................................................................... 12.34 11.69

In February 2008, we inducted several new members of our senior management team, including our
Managing Director & Chief Executive Officer and other members who joined us from a competitor foreign
bank in India. The team formulated new strategy, that involved restructuring of its balance sheet and
business mix, improving operating efficiency, leveraging our distribution network and resources, deepening
existing customer relationships, increasing our hiring of employees to support our strategy and expansion
and improving our brand.

Competitive Strengths

We believe that the following strengths distinguish us in a competitive Indian financial services market:

Wide distribution network - We are able to provide access to banking and financial products and services,
both offered by us and by third parties, through our sizeable distribution infrastructure consisting of 180
fully networked branches in 147 locations spread across India, 378 ATMs (including 198 off-site ATMs)
and 410 marketing outlets that primarily originate vehicle loans and are operated by our associate company,
IndusInd Marketing and Financial Services. Our non-branch delivery channels, such as the Internet, our
telephone contact centre and short message service (SMS) on mobile phones, also provide access to our
retail banking products and services. We have a telephone contact centre for account enquiries and
feedback. We have arrangements with certain banks in the Middle East and the United States, and
exchange houses in the Middle East, Singapore and Hong Kong, which enable us to source customers and
share revenues from international transactions, as well as extensive correspondent banking relationships
with banks worldwide.

Customer base - We have a customer base of approximately 2.02 million customers as of June 30, 2009,
which provides promising opportunities to cross-sell not only our products and services, but also third party
products that we distribute.

Advanced and stringent risk management systems - We have established integrated enterprise-wide risk
management systems encompassing credit risk, market risk and operational risk, and believe we were one
of the first banks in India to do so. We have progressively adopted best international practices and are
compliant with Basel II capital adequacy norms as applicable to banks in India. We have robust market risk
management systems, which manage our market risk through tools such as mark-to-market, duration
analysis, value-at-risk and operational limits such as stop-loss limits, exposure limits, deal size limits and
maturity ladders.

Well-developed and robust information technology infrastructure - We strongly emphasize technology in

our business, with consistent investment towards maintaining a centralized and modern technology
platform for our internal systems and front-end customer services. We have advanced technology solutions
for our global markets and transaction banking products and services, as well as for management and
information systems and analytics and our disaster recovery platform. We believe that we are well placed
to quickly adapt to any technological advances in banking services. We have offered Internet banking in
India since 1996 and account enquiry services via SMS since 2006. We have a sophisticated disaster
recovery system located in Chennai that backs up all transaction data on a real time basis.
Leadership in vehicle financing - We have a strong leadership position in financing purchases of
commercial vehicles. Our business has been built over two decades through an efficient operation aided by
advanced processing and analytical capabilities and a vast distribution infrastructure. Our business model
focuses primarily on vehicle financing for retail customers, including small road transport operators, and
covers urban areas as well as smaller centres and semi-urban areas in India, which have a strong customer
base and provide opportunities for cross-selling products and services provided by us and third parties.
Moreover, there are entry barriers in this business because of high levels of customer loyalty and high
distribution infrastructure and technology requirements arising from small loan sizes, large volumes and
diverse locations. We have significant leverage in our relationships with vehicle manufacturers arising from
our financing of their vehicles, which provides us with additional opportunities to lend and provide banking
products and services to their dealers and suppliers.

Unique positioning in capital and commodity markets - We are one of the few banks that have been
appointed by, and act as, clearing and settlement banks to the major capital, commodity and currency
exchanges in India, including the NSE, the BSE, the NCDEX, the MCX, the NMCE, the NCDEX and four
tea exchanges. In addition, as a result of such appointments, we are also well placed to provide banking
products and services, such as guarantees and depository participant accounts, to members of these
exchanges, brokers and investors such as mutual funds.

Full-service provider to small and medium-sized companies - We provide a one-stop solution to small and
medium-sized companies, delivering all required banking and financial services across the entire value
chain, including cash management, trade services, foreign exchange services, loans for employees and
investment banking advice. This strategy is designed to understand and address all the needs of these
customers, and helps monitor their business risk efficiently.

Full-service provider to cooperative banks - We have a dedicated relationship team to cover the co-
operative banking sector in India and provide various products and services, including cash management,
clearing, trade services, foreign exchange services and money market services, which also allow our co-
operative bank customers to offer such services to their own customers. As the customers in this segment
are money-market participants, we are able to source funds from these customers in a cost-effective
manner.

Strong position in remittance services - As a result of our efficient and seamless technology platform for
remittances and our arrangements with certain banks in the Middle East and the United States and major
exchange houses in the Middle East, Singapore and Hong Kong, we have a strong position in the expanding
remittance market - both inbound and outbound. Growing international remittance volumes increases our
fee income.

Its Strategy

We aim to be a top performer among "New Private Sector Banks" by concentrating on improving our
profitability, productivity and efficiency, while growing our market share and the size of our balance sheet.
Our key strategies to achieve these goals are set out below:

To restructure our organization to create a more enhanced customer focus and optimize our balance sheet
and business mix to improve profitability - We restructured our organization to create stronger customer-
and product-based business units and enhanced customer segmentation in order to emphasize greater
customer focus. We seek to create new multiple and significant revenue streams, such as increasing fee
income by offering global markets and transaction banking services to corporate customers as well as
consumers and by offering wealth management, third party products and transaction banking services to
retail customers and small and. medium-sized enterprises. We also seek to optimize our balance sheet by
right-pricing assets while optimally hedging with a mixture of fixed and floating rate loans and by
managing our asset-liability maturity gap. We also seek to improve the ratio of our current and savings
account deposits to total deposits (or CASA ratio) by attracting additional current and savings account
deposits, thereby reducing the cost of deposits and reducing our reliance on bulk deposits. We also seek to
increase our net interest income by increasing our proportion of high interest-bearing assets.
To deepen and leverage existing customer relationships - We seek to deepen relationships with existing
customers by continually augmenting our range of banking and finance products and services, which now
includes specialized offerings such as supply chain finance, commodity finance, retail bullion sales,
bancassurance and mid-market investment banking. We provide access to, and cross-sell, our products and
services through our branch and non-branch delivery channels and across customer segments. We
effectively use technology to provide our customers easy access to our products and services, to analyze the
penetration of our products and services and to determine the potential needs of our customers. We also
leverage our relationships with existing customers to obtain new customers. For example, we provide
financing to suppliers of vehicle manufacturers as a result of our leadership position in vehicle financing
and we provide guarantees and depository account services to brokers and capital market investors as a
result of our appointments as clearing and settlement bankers to various exchanges.

To leverage our delivery channels - We aim to increase and diversify our customer base by optimally using
our delivery channels and our technology infrastructure, including our branch network, marketing outlets,
outbound sales team, telephone sales representatives, contact centre and Internet and mobile phone
channels, to reach a wider target audience of potential customers. We seek to develop innovative products
and services that are market competitive and market leading, designed specifically for each group of
customers. We also strive to offer products and services to large, mid-market and small corporate
customers, such as our Internet-based interactive offering for supply chain participants.

To improve operating efficiencies - We continually seek to raise our yield on investment through operating
efficiencies and reduction of operating costs. We seek to use a variety of methods, such as centralizing our
processing (including with respect to retail branch processing, cheque clearing, depository, trade finance,
taxation-related activities and procurement), rationalizing infrastructure and technology expenditure,
tracking and improving cost efficiency, streamlining documentation and workflow through technology and
right-skilling our workforce through optimal recruitment and training. We also use technology to analyze
our performance through various metrics and to track customer feedback.

To engage and retain employees - We seek to attract and retain qualified, talented and experienced
management and operations personnel sourced from other banks and financial institutions. We empower
our employees and obtain accountability for performance by giving them ownership over customers and
products. We seek to maintain a performance culture in our workforce and benchmark compensation,
including stock option incentives and variable pay, to the market.

To improve our brand equity - We seek to improve our reach and visibility by expanding our branch and
ATM network, including in relatively under-banked areas, and by optimizing our customer-facing
technology platforms for ease of use.
SUMMARY FINANCIAL INFORMATION

The following tables present selected financial and other data regarding our business and should be read
together with "Management's Discussion and Analysis of Financial Condition and Results of Operations" and
our financial statements and the related notes included elsewhere in this Preliminary Placement
Document. The financial statements have been presented in Indian Rupees and are presented on a
consolidated basis.

Solely for the convenience of the reader, the selected data set out below are presented in a format different
from our audited and unaudited financial statements. Neither the information set forth below nor the
format in which it is presented should be viewed as comparable to information prepared in accordance
with Indian GAAP, U.S. GAAP, IFRS or other accounting principles.

Summary income statement information

Year ended March 31, Three months ended June 30,

2007 2008 2009 2008 2009

(Rs. millions) (Rs. millions)

Profit and Loss Account
Income
Interest earned 15,002.51 18,806.61 23,094.74 5,183.25 6,288.25

(1) (
Other income 2,441.32 2,975.77 (1) 4,562.54 649.11 1,727.52
1

Total 17,443.83 21,782.38 27,657.28 5,832.36 8,015.77

Expenditure
Interest expended 12,288.47 15,798.60 18,504.41 4,253.82 4,614.60
Operating expenses 3,439.56 4,021.93 5,470.34 1,119.77 1,658.11
Provision and contingencies 1,033.63 1,211.32 2,199.14 267.75 878.10
Total 16,761.66 21,031.85 26,173.89 5,641.34 7,150.81
Profit 682.17 750.54 1,483.39 191.02 864.96
Add: Profit brought forward from previous year 1,858.93 2,113.91 2,429.91 0.00 0.00

Net profit 2,541.10 2,864.45 3,913.30 191.02 864.96

Less: Tax adjustments of previous years 9.95 0.00 0.00 0.00 0.00

Amount available for appropriation 2,531.15 2,864.45 3,913.30 191.02 864.96

Appropriations
Transfer to
a) Statutory Reserve 170.54 187.64 370.85 0.0 0.0
b) Capital Reserve 22.20 22.41 534.03 0.0 0.0
c) Investment Fluctuation Reserve 0.00 0.00 15.32 0.0 0.0
d) Dividend (proposed) 191.89 191.89 447.11 0.0 0.0
e) Corporate dividend tax 32.61 32.61 75.99
417.24 434.54 1,443.30 0.0 0.0
Balance transferred to balance sheet 2113.91 2,429.91 2,469.99 191.02 864.96
Total 2,531.15 2,864.45 3,913.30 191.02 864.96
Earnings per share (basic and diluted) (Rupees) 2.31 2.35 4.28 0.59 2.44

(1) Amortization amount in respect of investments has been adjusted as per revised RBI guidelines issued in June 2008.
Summary balance sheet information

Year ended March 31, Three months ended June 30,

2007 2008 2009 2008 2009

(Rs. millions) (Rs. millions)

Balance sheet
Capital and liabilities
Capital 3,200.00 3,200.00 3,551.92 3,551.92 3,551.92
Employee sock options outstanding 0.00 5.06 11.51 36.84 15.59 Reserves and surplus 7,367.88
10,292.07 13,080.51 12,257.13 13,936.11 Deposits 176,448.05
190,374.23 221,102.53 181,160.03 216,387.79 Borrowings
5,925.08 10,954.35 18,564.55 29,133.53 23,413.06
Other liabilities and provisions 16,330.40 17,793.11 19,835.81 17,501.18 20,667.17
Total 209,271.41 232,618.82 276,146.83 243,640.63 277,971.64

Assets
Cash and balances with the Reserve Bank of 10,211.69 15,262.61 11,907.90 16,295.40 14,023.51
India

Balances with banks and money at call and short 15,742.28 6,517.72 7,329.05 5,160.34 6,218.34
Notice

Investments 58,916.55 66,296.96 80,834.06 72,704.44 75,844.85

Advances 110,842.00 127,953.08 157,706.36 132,682.40 164,515.72
Fixed assets 3,695.70 6,251.48 6,231.93 6,280.03 6,213.03
Other assets 9,863.19 10,336.97 12,137.53 10,518.02 11,156.19
Total 209,271.41 232,618.82 276,146.83 243,640.63 277,971.64

Contingent liabilities 207,617.37 309,819.31 442,991.73 409,809.91 375,027.11

Bills for collection 14,613.63 17,612.06 29,377.34 20,355.89 32,531.25

Summary cash flow information

Year ended March 31,

2007 2008 2009

(Rs. millions)
Cash flow from operating (used in) activities 8,840.10 (3,271.10) (3,898.50)
Cash flow from investing (used in) activities (646.89) 2,955.70 (412.30) (489.90)
Cash flow from financing activities 25,954.00 (490.30) 1,845.00
Cash and cash equivalents at the end of the year 21,780.30 19,236.90

The bank needs cash primarily to finance new borrowers and meet working capital requirements. We fund
these requirements through a variety of sources, including deposits, cash from interest income, short-term
borrowings and long-term borrowings such as debentures, refinancing from financial institutions and banks
and securitization transactions.
RISK FACTORS

Investing in the Equity Shares offered in this Issue involves a high degree of risk. Before investing in
Equity Shares, one has to carefully consider all the information in this Preliminary Placement Document,
including the risks and uncertainties described below and in the sections "Business" and "Management's
Discussion and Analysis of Financial Condition and Results of Operations", as well as the consolidated
financial statements and related notes beginning on page F-1 of this Preliminary Placement Document. If
any of the following risks, or other risks that are not currently known or are now deemed immaterial,
actually occur, our business and financial results could be materially and adversely affected, the trading
price of the Equity Shares could decline significantly and you may lose all or part of your investment.

In particular, you should note that we are governed in India by a legal and regulatory environment which, in
some material respects, may be different from that which prevails in the United States and other countries.

Risk Factors Related to IndusInd

IndusInd is highly dependent on its senior management to manage its current operations and meet future
business challenges.

Its future success is highly dependent on its senior management to maintain its strategic direction, manage
our current operations and meet future business challenges. We do not maintain key man insurance and the
loss of, or inability to attract or retain, such persons could adversely affect our business and results of
operations. In particular, the expertise, experience and services of Romesh Sobti, our Managing Director
& Chief Executive Officer, and other members of our senior management team who joined us in February
2008 and are executing our growth strategy, have been integral to our business. Our employment
agreements with these personnel do not obligate them to work for us for any specified period, and do not
contain non-compete or non-solicitation clauses in the event of termination of employment. If one or more
of these key personnel are unwilling or unable to continue in their present positions, we may not be able to
replace them with persons of comparable skill and expertise promptly or at all, which could have a material
adverse effect on our business, operations and financial results.

Our results of operations depend to a significant extent on net interest income.

Our results of operations depend to a great extent on our net interest income. Net interest income
represents the excess of interest earned from interest-bearing assets (performing loans and investments)
over the interest paid on customer deposits and borrowings. Changes in interest rates could affect the
interest rates we charge on our interest-earning assets in a manner different from the interest rates we pay
on our interest-bearing liabilities because of the different maturity periods applying to our assets and
liabilities and also because liabilities generally reprice faster than assets. The difference could result in an
increase in interest expense relative to interest income leading to a reduction in our net interest income,
which could materially and adversely affect our results of operations. Interest rates are highly sensitive to
many external factors beyond our control, including growth rates in the economy, inflation, money supply,
the RBI's monetary policies, deregulation of the financial sector in India, domestic and international
economic and political conditions and other factors. Any volatility or increase in interest rates or other
market conditions may also adversely affect the rate of growth of certain sectors of the Indian economy and
the value of our marked-to-market fixed-income securities portfolio, which may adversely impact our
business and financial results.

We face maturity and interest rate mismatches between our assets and liabilities. Our depositors may
not roll over term deposits on maturity and we may be otherwise unable to increase our term deposits.

We meet our funding requirements through short- and long-term deposits from retail and large corporate
depositors as well as wholesale interbank deposits. However, a significant portion of our assets (such as
loans) have maturities with longer terms than our liabilities (such as deposits). As of June 19, 2009, which
was the last statutory reporting Friday in the three months ended June 30, 2009, we had a negative liquidity
gap extending over one year and up to three years amounting to Rs. 29,615.98 million and over three years
and up to five years amounting to Rs. 17,140.44 million (in each case inclusive of swaps).

If a substantial number of our depositors do not roll over their funds upon maturity, our liquidity position
could be adversely affected and we may be required to pay higher interest rates in order to attract and/or
retain further deposits, which could have a material adverse effect on our business, financial results and the
price of the Equity Shares.

In addition, increases in interest rates applicable to our liabilities, in particular our inter-bank wholesale
funding, without concurrent corresponding increases in interest rates applicable to our interest-bearing
assets, may result in a decline in net interest income, which could materially and adversely affect our
business and financial results.

We may not be able to effectively manage increases in our asset portfolio and our NPA levels arising
from our growth.

Our net NPAs were Rs. 2,910.2 million, Rs. 1,791.3 million and Rs. 1,665.5 million as of March 31, 2008,
March 31, 2009 and June 30, 2009, respectively, while our gross NPAs were Rs. 3,923.1 million, Rs.
2,550.2 million and Rs. 2,410.9 million, respectively, for the same periods. Our net NPA ratio was 2.27%,
1.14% and 1.01% as of March 31, 2008, March 31, 2009 and June 30, 2009, respectively, while our gross
NPA ratio was 3.04%, 1.61% and 1.46% as of the same dates. While as of June 30, 2009, we had already
made provisions with respect to 60.78% of our corporate NPAs and 21.79% of our retail NPAs, we may
need to make further provisions if recoveries with respect to such corporate NPAs do not materialize in
time or at all. Any increase in NPAs will reduce the net interest-earning asset base and increase
provisioning requirements, thereby adversely affecting our financial condition and results of operations. A
significant factor in the recent reduction in gross NPA ratio from the fiscal year ended March 31, 2008 to
the fiscal year ended March 31, 2009 was the result of recovery from a large delinquent corporate account.
Our ability to continue to reduce or contain the level of our gross and net NPA ratios may be affected by a
number of factors beyond our control, such as increased competition, depressed economic conditions,
including with respect to specific industries to which we are exposed, decreases in agricultural production,
decline in commodity prices, adverse fluctuations in interest and exchange rates or adverse changes in
Indian policies, laws or regulations.

In addition, our growth-oriented strategy will involve a significant increase in our asset portfolio, especially
retail loans, which will require further equity capital to strengthen our capital base. If such capital is
unavailable, our results of operations may be adversely affected. Further, such an increase in our asset
portfolio may cause the level of our NPAs to increase. In particular, retail loans may carry a higher risk for
delinquency if there is an increase in unemployment, prolonged recessionary conditions or a sharp rise in
interest rates. If we are not able to control and reduce our NPAs, our business and financial performance
could be materially and adversely affected.

See the section "Management's Discussion and Analysis of Financial Condition and Results of Operations".

We may fail to manage our growth effectively.

In the past, we have witnessed significant growth in both our business and our infrastructure. Our ability to
sustain growth depends primarily upon our ability to manage key issues such as selecting and retaining
skilled personnel, maintaining an effective technology platform that can be continually upgraded,
developing a knowledge base to face emerging challenges, and ensuring a high standard of customer
service. Sustained growth also puts pressure on our ability to effectively manage and control historical and
emerging risks. Our inability to effectively manage any of these issues may adversely affect our business
growth and, as a result, impact our businesses, prospects, financial condition and results of operations, as
well as the market price of our Equity Shares.
We may be unable to sustain the growth rate of our retail banking services.

As of June 30, 2009, retail loans represented 44.24% of our total advances. This compares with 45.20%,
56.80% and 58.50% of our advances as of March 31, 2009, March 31, 2008 and March 31, 2007,
respectively. Our current strategic plan focuses on further growth in this sector through offering new
products and services and cross selling products and services to increase market share. However, our retail
portfolio may not continue to grow at the rates we anticipate, which could materially and adversely affect
our business and financial results.

We face significant challenges in our new businesses.

As part of our growth strategy, we have been diversifying and expanding our products and services,
including retail and small and medium company banking products and services such as debit cards, sweep
facilities, bancassurance, retail bullion sales and the distribution of mutual funds, as well as the expansion
of our branch network into semi-urban and rural areas. Such new initiatives and products and services
entail a number of risks and challenges, such as start-up expenditure and other risks and costs associated
with the respective businesses, including the following:

 the knowledge and expertise applicable to the new businesses may differ from those applied in our
current operations, including management skills, risk management procedures, guidelines and systems,
credit appraisal, monitoring and recovery systems;

 higher marketing and compliance costs than our traditional services focused on Indian companies;

 additional approvals and licences from regulators, including the RBI;

 lower growth or profitability potential than we anticipate;

 failure to identify new segments and offer attractive new products and services in a timely fashion,
putting us at a disadvantage to our competitors;

 the inability to attract customers from our competitors in our new businesses, as they may have
substantially greater experience and resources in such businesses;

 higher wage costs to attract and retain personnel who are able to implement, supervise and conduct the
new businesses activities;

 higher technology costs to enhance the capabilities of our information technology systems to support a
broader range of activities, a higher scale of operations and an increased retail customer base; and

 economic conditions such as rising interest rates, decline in private consumption trends or housing
prices, thereby hindering expansion in the credit card, personal loan and mortgage businesses.

In particular, we have increased lending to small businesses and retail customers, which may result in
increased lending to customers that do not already have an established credit history with us and may
thereby require us to invest substantial resources to manage inherent risks. Small businesses generally have
limited capital and liability management experience and such businesses and retail customers are more
sensitive to economic downturns. As a result, these customers may be more likely to default on their loans
and we may be required to increase our loan impairment provisions.

If we are unable to successfully diversify our products and services while managing the attendant risks and
challenges, returns on such products and services may be less than anticipated, which could have a material
adverse effect on our business and financial results.
We have substantial exposure to certain sectors and borrowers and our business could be materially and
adversely affected by difficulties experienced in these sectors or by such borrowers.

We monitor concentration of exposures to sectors and borrowers. We calculate customer and sector
exposure, as required by the RBI, by aggregating the higher of the outstanding balances of, or limits on,
funded and non-funded exposures. Funded exposures include loans and investments (excluding
investments in government securities, units of mutual funds, deposit certificates issued by banks and equity
shares).

As of June 30, 2009, our largest sector concentrations, in each case as a percentage of our advances, were
as follows: construction (4.30%), gems and jewellery (3.70%), iron and steel (3.70%), non-banking
financial companies (other than housing finance companies) (3.00)% and wholesale trading (2.90%). In
addition, we have substantial exposure to the automobile and transport sectors as a result of our vehicle
financing business. As of June 30, 2009, consumer financing advances aggregated approximately 44.24%
of our advances. Furthermore, we have substantial exposure to agriculture and small-scale industries, which
the Government of India categorizes as "priority sectors". As of June 30, 2009, priority sector advances
aggregated approximately Rs. 62,571 million and represented 40.18% of our adjusted net bank credit. Any
significant difficulty in a particular sector, driven by events not within our control, such as regulatory action
or policy announcements by government authorities or natural disasters, would adversely impact the ability
of borrowers in that industry to service their debt obligations to us. In particular, given the importance of
retail loans to our business, any slowdown in sectors such as automobiles, transport and agriculture could
adversely impact our performance. As a result, we would experience an increased level of NPAs, which
may adversely impact our business, our financial performance and the price of our Equity Shares.

The directed lending norms of the RBI require that every bank should extend an aggregate of 40% of its net
bank credit to certain eligible priority sectors, such as agriculture, small-scale industries and housing
finance. In addition, we are required to extend at least 18% of the adjusted net bank credit to the
agriculture sector and in the case of any shortfall, we would be required to place the difference between the
required lending level and our actual agriculture sector lending in an account with the National Bank for
Agriculture and Rural Development under the Rural Infrastructure Development Fund Scheme, from which
we would earn lower levels of interest as compared to loans made to the agriculture sector. In such
circumstance, our financial condition and results of operations could be materially and adversely impacted.

As of June 30, 2009, our largest single customer exposure as of that date was Rs. 3,500.00 million,
representing approximately 14.96% of our capital funds, and our 20 largest customer exposures totalled
approximately Rs. 28,218 million, representing approximately 120.59% of our capital funds, in each case
comprising Tier I and Tier II capital and according to RBI guidelines. None of our 20 largest customer
exposures were classified as non-performing as of June 30, 2009. If any of our 20 largest customer
exposures were to become non-performing, the quality of our portfolio and our business and financial
results could be adversely affected.

We are exposed to risks relating to the materialization of any of our contingent liabilities.

As of June 30, 2009, we had total contingent liabilities of approximately Rs. 375.03 billion. Contingent
liabilities arising out of the ordinary course of business include liability on account of outstanding forward
exchange contracts of Rs. 239.48 billion, liabilities on account of outstanding derivative contracts of
approximately Rs. 101.90 billion, guarantees given on behalf of constituents in and outside India
aggregating approximately Rs. 20.56 billion and acceptances, endorsements and other obligations of
approximately Rs. 10.60 billion. In addition, we have claims against us not acknowledged as debts of
approximately Rs. 2.48 billion. If any of these contingent liabilities materialize, fully or partially, our
financial results could be materially and adversely affected.
We have benefited from mergers and other significant transactions with entities that are controlled by or
affiliated with our Promoters or our Promoter Group. Such opportunities may not be available to us in
the future.

In the past, our financial condition and results of operations have benefited from mergers and other
significant transactions with entities that are controlled by or affiliated with our largest shareholder,
IndusInd International Holdings Limited, including our merger with IndusInd Enterprise & Finance
Limited in 2003 and our merger with Ashok Leyland Finance Limited in 2004, which eventually resulted in
more than doubling the number of our retail banking branches and strengthened our capital base following
completion of the merger. We may not have opportunities to consummate such transactions in the future.
None of our Promoters or the affiliates of our Promoters is obligated to direct any opportunities in the
banking and financial services industry to us.

Our Promoters will continue to hold a significant percentage of the Equity Shares outstanding after the
Issue and exercise influence over board decisions and any shareholder voting.

After the completion of the Issue, our Promoters will own or control approximately []% of our Equity
Shares and will be entitled to nominate one director on our board of directors. As such, our Promoters will
exercise influence over most matters affecting us or subject to a shareholder vote, including the
appointment and removal of our officers, our business strategy and policies, any determinations with
respect to mergers, business combinations and acquisitions or dispositions of assets, our dividend policy
and our capital structure and financing, subject to the RBI's restriction that a maximum of 10% of the votes
cast at any meeting of shareholders of any Indian bank may be cast by a single shareholder, irrespective of
the percentage of the shares held by such shareholder. See the section "Regulations and Policies". Further, the
extent of our Promoters' shareholding in us may result in the delay or prevention of a change of
management or control, even if such a transaction may be beneficial to our other shareholders.

Restrictions on ownership in private sector banks by the RBI could discourage or prevent a change of
control or other business combination involving us, or could compel our Promoters to divest a
significant portion of their existing shareholding.

The RBI has issued guidelines restricting ownership in private sector banks in India to not more than 10%
of the paid-up share capital, directly or indirectly, for any entity or group of related entities. The guidelines
state that no entity or group of related entities will be permitted to own or control, directly or indirectly,
more than 10% of the paid up capital of a private sector bank without RBI approval. The implementation of
such a restriction will discourage or prevent a change in control, merger, consolidation, takeover or other
business combination involving us which might be beneficial to our shareholders. Further RBI approval is
required before we can register the transfer of 5% or more of our shares (paid up capital) to an individual or
group.

The RBI guidelines may require our Promoters, who currently hold 25.63% of our Equity Shares, or any
other major shareholders to divest a significant portion of their existing shareholding. In particular, in the
course of ongoing discussions and correspondence with us, the RBI has stated that our Promoters will need
to reduce their shareholding to less than 10% of our total outstanding Equity Shares by the end of the
current fiscal year. Any such divestment could adversely affect the price of our Equity Shares.

We face greater credit risks than banks in developed economies.

Our principal activity is providing financing to borrowers, almost all of whom are based in India. The credit
risk of our borrowers, including small and middle market companies, is higher than in typical developed
economies due to the higher uncertainty in our regulatory, political and economic environment and the
inability of our borrowers to adapt to global technological advances. Several of our corporate borrowers
suffered from low profitability because of increased competition as a result of economic liberalization
policies, a sharp decline in commodity prices, a high debt burden and high interest rates in the Indian economy
at the time of their financing and other factors.
In addition, India's system for gathering and publishing statistical information relating to the Indian
economy generally or specific economic sectors within it or corporate or financial information relating to
companies or other economic enterprises is not as comprehensive as those of several countries with
established market economies. The absence of such reliable and comprehensive statistical, corporate and
financial information, including audited financial statements and recognized debt rating reports, relating to
our present and prospective corporate borrowers or other customers makes the assessment of credit risk,
including the valuation of collateral, more difficult. A nationwide credit bureau has become operational in
India only recently, and it may be some time before comprehensive credit information as to the credit
history of our borrowers, especially individuals and small businesses, is available to us. The difficulties
associated with the inability to accurately assess the value of collateral and to enforce rights in respect of
collateral, along with the absence of such accurate statistical, corporate and financial information, may
decrease the accuracy of our assessments of credit risk, thereby increasing the likelihood of borrower
default on our loan and decreasing the likelihood that we would be able to enforce any security in respect of
such a loan or that the relevant collateral will have a value commensurate to such a loan. Moreover, the
availability of accurate and comprehensive credit information on retail customers and small businesses in
India is more limited than for larger corporate customers, which reduces our ability to accurately assess the
credit risk associated with such lending.

Such difficulties in assessing credit risks associated with our day-to-day lending operations and risks
associated with the business environment in India may lead to an increase in the level of our non-
performing and restructured assets, which could materially and adversely affect our business, financial
results, shareholders' equity and the price of the Equity Shares.

We face strong competition from banks and financial institutions that are much larger than we are and
are present all over India.

The Indian banking industry is highly competitive. We face strong competition in all lines of our business,
and many of our competitors are much larger than we are. We compete directly with large government-
controlled public sector banks, which generally have much larger customer and deposit bases, larger branch
networks and more capital than we do. On the same bases, many of the major private sector banks in India
are also much larger than we are. We also compete with foreign banks with operations in India, including
some of the largest multinational banks and financial institutions in the world, and, for certain products,
non-banking financial institutions. The Government of India has recently announced that it will permit
foreign banks to establish wholly-owned subsidiaries in India and has raised the limit on foreign direct
investments in private sector banks to 74%. Such measures may increase competition from such foreign
banks. Any such competitors could have a substantial advantage over us in enabling economies of scale,
such as in purchasing technology and other capabilities, improving organizational efficiencies, marketing
and promotion and pricing. Consolidation in the Indian banking industry could make our competitors even
larger than they are currently. Due to such intense competition, we may be unable to successfully execute
our growth strategy successfully and offer competitive products and services that generate reasonable
returns, reduce our currently high operating costs and retain our competitive advantage, which could
negatively impact our profit margins and materially and adversely affect our business and financial results.

We may fail to maintain the minimum capital adequacy requirements stipulated by the RBI or minimum
capital adequacy levels required to support our growth.

We are required by the RBI to maintain a minimum capital adequacy ratio of 9% in relation to our total
risk-weighted assets. We must maintain this minimum capital adequacy level to support our growth. Our
capital adequacy ratio was 12.14% as of June 30, 2009. Although we currently meet or exceed the
applicable capital adequacy requirements, certain adverse developments could affect our ability to continue
to satisfy the capital adequacy requirements, including deterioration in our asset quality, declines in the
values of our investments and changes in the minimum capital adequacy requirements. Furthermore, our
ability to support and grow our business could be limited by a declining capital adequacy ratio if we are
unable to access or have difficulty accessing the capital markets or have difficulty obtaining capital in any
other manner. We cannot assure you that we will be able to obtain additional capital on commercially
reasonable terms in a timely manner, or at all. If we fail to meet capital adequacy requirements, the RBI
may take certain actions, including restricting our lending and investment activities, and the payment of
dividends by us. These actions could materially and adversely affect our reputation and financial results.

We are required to maintain certain minimum cash reserve and statutory liquidity ratios and increases
in these requirements could materially and adversely affect our business.

As a result of the statutory reserve requirements stipulated by the RBI, we may be more exposed
structurally to interest rate risk than banks in other countries. RBI regulations regarding the cash reserve
ratio require us to keep 5% of our net demands and time liabilities in a current account with the RBI. The
RBI may increase the cash reserve ratio requirement to a significantly higher proportion than at present as a
monetary policy measure. We do not earn any interest on our entire cash reserve. In addition, under RBI
regulations regarding the statutory liquidity ratio, 24% of our demand and time liabilities must be invested
in Government securities, state government securities and other approved securities, which would earn
lower levels of interest as compared to advances to customers or investments made in other securities.
Increases in cash reserve ratio and statutory liquidity ratio requirements would reduce the amount of cash
that we would use to lend and otherwise deploy in our business, which could materially and adversely
affect our business and financial results.

We may undertake mergers or acquisitions in the future, which may pose management and integration
challenges and we may not achieve the synergies and other benefits we expect from such transactions.

We consider inorganic growth opportunities from time to time to expand our customer base, acquire new
service or product offerings or enhance our technical capabilities. If we succeed in consummating a merger
or acquisition, we may not be able to integrate effectively the acquired business into our operations and
may not obtain the expected profitability, synergies or other benefits in the short or long term from such
transactions. Any such transactions may also result in high levels of indebtedness or contingent liabilities.
Our senior management team's attention may also be diverted by any such transactions. Any of the above
factors may have a material adverse effect on our business, results of operation and financial condition.

We may continue to incur substantial expenditure as a result of recent significant increases in hiring to
support our growth strategy.

In the fiscal year ended March 31, 2009, our headcount increased by 48.17%, or 1,382 employees, over the
prior fiscal year, mainly due to increased hiring to support our growth strategy. In the same period, our
payments to and provisions for employees, which include certain retirement benefits, increased by 53.53% to
Rs. 1.87 billion. Our planned growth will require us to continue to significantly increase headcount at
various levels and implement or improve effective training programs. Such activities and investments in
our employees will require substantial management effort and attention. If we are unable to manage our
employee levels effectively, our operating expenses could increase disproportionately, which could
adversely affect our profitability.

We are exposed to fluctuations in foreign exchange rates.

We are exposed to fluctuation in foreign currency rates on our limited unhedged exposure, which may
directly affect non-interest income and thereby, our financial results. Such fluctuations could also affect our
treasury revenue adversely. Movements in foreign exchange rates may also adversely affect our borrowers
and this may, in turn, affect the quality of our exposure to these borrowers.

We are vulnerable to failures of our information technology systems. We also need to incur expenditure
to regularly upgrade our information technology systems.

Our information technology systems are a critical part of our business and help us manage, among other
things, our risk management, deposit servicing and loan origination functions, as well as our increasing
portfolio of products and services in our consumer banking, global markets and transactional banking
business units. Any technical failures associated with our information technology systems or network
infrastructure, including those caused by power failures and breaches in security caused by computer
viruses and other unauthorized tampering, may cause interruptions or delays in our ability to provide
services to our customers on a timely basis or at all, and may also result in costs for information retrieval
and verification. Corruption of certain information could also lead to errors when we provide services to
our customers. In addition, we may be subject to liability as the result of any theft or misuse of personal
information stored on our systems. Any of these outcomes could adversely affect our business, our
reputation and the quality of our customer service.

We may need to regularly upgrade our information technology systems, including our software, back-up
systems and disaster recovery operations, at substantial cost so that we remain competitive, which may
adversely affect our profitability.

Our banking business entails operational risks, including fraud.

We are exposed to operational risk arising from inadequacy or failure of internal processes or systems or
from fraud. We are susceptible to, and have experienced in the past, fraud or misconduct by employees or
outsiders, unauthorized transactions by employees and operational errors, including clerical or record
keeping errors. Given our high volume of transactions, errors may be repeated or compounded before they
are discovered and rectified. In addition, certain banking processes are carried out manually, which may
increase the risk that human error, tampering or manipulation will result in losses that may be difficult to
detect. As a result, we may suffer monetary losses, which may not be covered by our insurance and may
thereby adversely affect our profitability and results of operations. Such a result may also adversely affect
our reputation.

Our measures to prevent money laundering may not be completely effective.

Our implementation of anti-money laundering measures required by the RBI, including Know Your
Customer policies and the adoption of anti-money laundering and compliance procedures in all our
branches, may not be effective. There can be no assurance that attempts to launder money using us as a
vehicle will not be made. If we were associated with money laundering, our reputation may be adversely
affected.

We may not be able to renew or maintain our statutory and regulatory permits and approvals required to
operate our business.

We have a licence from the RBI for all of our banking and other operations. Failure to obtain, renew or
maintain any required approvals, permits or licences may result in the interruption of all or some of our
operations and could materially and adversely affect our business and financial results.

During the course of periodic reviews, the RBI has indicated that we are less than fully compliant with
certain RBI requirements; although we believe that such non-compliance is with respect to matters that are
not material, there can be no assurance that our business will not be affected in future by any RBI actions,
including by the loss of a licence, or that the RBI or any other regulator will issue any approvals in the
time-frame required by us for our operations or at all.

For further information on Indian banking regulations, see the section "Regulations and Policies".

Any downgrade of our debt ratings or of India's sovereign debt rating could adversely affect our
business.

Our debt is currently rated investment-grade by ICRA and the Indian subsidiaries of S&P and Fitch, as
follows: P1+ by CRISIL (a subsidiary of S&P) for our certificate of deposit program, LA and LA+ by
ICRA for our Upper Tier II bond program and Lower Tier II bond program, respectively, and A(ind) and
BBB+(ind) by the Indian subsidiary of Fitch for our Lower Tier II subordinate debt program and Upper
Tier II bond program, respectively. Any downgrade in our credit ratings may increase interest rates on our
outstanding debt, increase interest rates for refinancing our outstanding debt, which would increase our
financing costs, and adversely affect our ability to raise new capital on a competitive basis, which may
adversely affect our profitability and future growth.

In addition, any adverse revisions to India's credit ratings for domestic and international debt by
international rating agencies may adversely impact our ability to raise additional financing and the interest
rates and other commercial terms at which such financing is available. This could have an adverse effect on
our business and future financial performance and our ability to fund our growth.

We are involved in certain legal proceedings.

We are contesting certain legal proceedings in various courts, including certain criminal cases that have
been filed against us and our officers, including some past Managing Directors in their official capacities,
in respect of actions taken by us and/or our officers during the ordinary course of our business. Any
adverse decision in any of these cases may adversely affect our reputation.

We are also involved in disputes with respect to income tax assessments for various years, for which no
provisions have been made in our financial statements. If any such dispute results in an adverse
determination, we will be required to provide for the resulting liability as a charge in our income statement,
which may adversely affect our profitability.

For further information, see the section "Legal Proceedings".

If more stringent labour laws become applicable to us or if our employees unionize, our profitability may
be adversely affected.

India has stringent labour legislation that protects employee interests, including legislation that sets forth
detailed procedures for dispute resolution and employee removal and legislation that imposes financial
obligations on employers upon retrenchment. If these labour laws become applicable to our employees or if
our employees unionize, it may become difficult for us to maintain flexible human resource policies and
attract and employ the numbers of sufficiently qualified candidates that we need or discharge employees
and we may be required to raise wage levels or grant other benefits that could result in a significant
increase in our operating expenses, in which case our profitability may be adversely affected.

Risk Factors Related to Banks and Other Financial Institutions in India Generally

Indian banking regulation is extensive, and changes in such regulation could materially affect our
business.

The banking and financial sector in India is highly regulated and extensively supervised, including by the
RBI. Our business could be directly affected by any changes in laws, regulations and policies for banks,
including if we are compelled to increase lending to certain sectors or increase our reserves. Such changes
may also affect our scope in specific businesses or foreign investment limits in the banking industry. Any
such changes may require us to modify our business, which may adversely affect our financial results. RBI
guidelines and provisions of the Banking Regulation Act also restrict our ability to pay dividends. The RBI
also requires banks to maintain certain cash reserve and statutory liquidity ratios, and increases in such
requirements could affect our ability to expand credit. Any RBI requirements specifying changes in risk
weighting and capital adequacy may adversely affect our financial condition. In addition, any action by any
regulator to curb inflows into India could negatively affect our business. The RBI also requires that every
bank extend an aggregate of 40% of our net bank credit to certain eligible "priority" sectors, such as
agriculture, small-scale industries and housing finance, and also places restrictions on building overseas
asset portfolios.

Our business may also be adversely affected by changes in other laws, governmental policies, enforcement
decisions, income tax laws, foreign investment rules and accounting principles.
You will not be able to acquire or transfer Equity Shares if such acquisition or transfer would result in
an individual or group holding 5% or more of our share capital without prior written acknowledgement
by the RBI.

Pursuant to the Guidelines for Acknowledgement of Shares in Private Banks dated February 3, 2004 (the
"Acknowledgement Guidelines"), any acquisition or transfer of shares in a private sector bank, directly or
indirectly, beneficial or otherwise, which will take the aggregate holding of an individual or a group to 5% or
more of the paid-up capital of the private bank requires the prior written acknowledgement of the RBI.
Shareholders in a private bank require the prior permission of the RBI in order to acquire shares. The term
"holding" refers to both direct and indirect holdings, beneficial or otherwise and is computed with
reference to the holding of the applicant, relatives (where the applicant is a natural person) and associated
enterprises. "Relative" has the meaning under Section 6 of the Companies Act, and "associated
enterprises" has the meaning under Section 92A of the Income Tax Act. In considering whether the RBI
will grant an acknowledgement to any application for an acquisition or transfer resulting in a holding of 5%
or more of the paid-up capital of a private bank, the RBI examines whether the proposed acquirer and all
entities connected with the acquirer meet certain fitness and propriety tests. The RBI will apply additional
criteria if the acquisition or transfer will take the aggregate shareholding of the applicant or proposed
acquirer to 10% or more or 30% or more of the paid-up capital of the private bank. The RBI may require
the applicant or proposed acquirer to seek further RBI approval for subsequent acquisitions at any higher
threshold specified by the RBI.

We may be unable to foreclose on, or experience delays in enforcing, collateral when borrowers default
on their obligations.

We may be unable to foreclose on collateral when borrowers default on their obligations to us, which may
result in failure to recover the expected value of such collateral security.

A substantial portion of our loans to retail and corporate customers is secured by tangible collateral,
predominantly vehicles, property and equipment financed by us. A portion of our loans to corporate
customers is secured by assets, including property, plant and equipment. Our loans to corporate customers
also include working capital credit facilities that are typically secured by a first lien or charge on inventory,
receivables and other current assets. In some cases, we may have taken further security of a first or second
lien or charge on fixed assets, a pledge of financial assets (such as marketable securities), corporate
guarantees and personal guarantees. As of June 30, 2009, the ratio of secured to unsecured funded lending
by us was approximately 92:8.

Although there has been recent legislation strengthening the rights of creditors and which may lead to faster
realization of collateral in the event of default, there can be no assurance that such legislation will have a
favourable impact on our efforts to reduce our levels of NPAs and we may not be able to realize the full
value of our collateral, due to, among other things, delays in foreclosure proceedings, defects in the
perfection of collateral, fraudulent transfers by borrowers and decreases in the values of collateral.

In addition, the RBI's guidelines on corporate debt restructuring specify that for debt amounts of Rs. 100
million and above, 60% of the creditors by number and 75% of creditors by value can decide to restructure
the debt and that such a decision would be binding on the remaining creditors. If we own 25% or less of the
debt of a borrower, we could be forced to agree to an extended restructuring of debt which may not be in
our interests.

Such difficulties in realizing our collateral fully or at all, including if we are instead compelled to
restructure our loans, could adversely affect our business and financial results.

Risk Factors Related to Investments in Indian Companies

A deterioration of general economic conditions, including a slowdown in economic growth in India,

could have an adverse effect on our business.
Our performance is highly correlated to general economic conditions in India, which are in turn influenced
by global economic factors. Any event or trend resulting in a deterioration in whole or part of the Indian or
global economy may directly or indirectly affect our performance, including the quality and growth of our
assets. Any volatility in global commodity prices, in particular oil and steel prices, could adversely affect
our borrowers and contractual counterparties.

A significant change in economic liberalization and deregulation policies in India could disrupt our
business.

All, or substantially all, of our assets and customers are located in India. The Government of India has
traditionally exercised and continues to exercise a dominant influence over many aspects of the economy.
Its economic policies have had and could continue to have a significant effect on the banking and financial
sector, including on us, and on market conditions and prices of Indian securities, including securities issued
by us. Any significant shift in the Government's economic liberalization policies could adversely affect
business and economic conditions in India and could also adversely affect our business and financial results
and the trading price of the Equity Shares.

Continuing financial instability in other countries could disrupt our business and cause the trading price
of the Equity Shares to decrease.

Since mid-2007, and particularly during the second half of 2008, the global banking and financial services
industry and the securities markets generally were materially and adversely affected by significant declines
in the values of nearly all asset classes, including mortgages, real estate assets, leveraged bank loans and
equities, and by a serious lack of liquidity. Business activity across a wide range of industries and regions
was greatly reduced and local governments and many companies were in serious difficulty due to the lack
of consumer spending and the lack of liquidity in the credit markets. Unemployment has increased
significantly in many countries. The Indian economy is influenced by economic and market conditions in
other parts of the world. Although economic conditions are different in each country, investors' reactions to
developments in one country can have adverse effects on the securities of companies in other countries,
including India. A loss of investor confidence in other financial systems may cause volatility in Indian
financial markets, including with respect to the movement of exchange rates and interest rates in India, and,
indirectly, in the Indian economy in general. Any such continuing or other significant financial disruption
could have an adverse effect on our business, financial results and the trading price of the Equity Shares.

Terrorist attacks and other acts of violence in India could adversely affect our operations.

Terrorist attacks, such as the attacks in November 2008 in the city of Mumbai, where our corporate office is
located, and other acts of violence or war may adversely affect worldwide financial markets and could
potentially lead to economic recession, which could adversely affect our business and financial results.
These events also pose significant risks to our employees and operations. Southern Asia has, from time to
time, experienced instances of civil unrest and political tensions and hostilities among neighbouring
countries. Political tensions could create a perception that there is a risk of disruption of operations, which
could have an adverse effect on the market for our services. We generally do not have insurance for
monetary losses and interruptions caused by terrorist attacks, military conflicts and wars. Additionally, any
of these events could lower confidence in India's economy and create a perception that investments in
companies with Indian operations involve a high degree of risk, which could have a material adverse effect
on the price of our Equity Shares.

Natural disasters and other disruptions could adversely affect the Indian economy and could cause our
business and operations to suffer and the trading price of the Shares to decrease.

Our operations, including our branch network, may be damaged or disrupted as a result of natural disasters
such as earthquakes, floods, heavy rainfall, epidemics, tsunamis and cyclones and other events such as
protests, riots and labour unrest. Such events may lead to the disruption of information systems and
telecommunication services for sustained periods. They also may make it difficult or impossible for
employees to reach our business locations. Damage or destruction that interrupts our provision of services
could adversely affect our reputation, our relationships with our customers, our senior management team's
ability to administer and supervise our business or it may cause us to incur substantial additional
expenditure to repair or replace damaged equipment or rebuild parts of our branch network. We may also
be liable to our customers for disruption in services resulting from such damage or destruction. Our
banker's indemnity insurance coverage for such liability may not be sufficient. Any of the above factors
may adversely affect our business and financial results, the quality of our customer service and the price of
our Equity Shares.

Investors in our Equity Shares may not be able to enforce a judgment of a foreign court against us, our
directors or our executive officers.

All of our directors and executive officers and some of the experts named herein are residents of India and
all of our assets and the assets of our directors and executive persons are located in India. As a result, it
may not be possible for investors to:

 effect service of process upon us, our directors, our executive officers or such experts in countries
outside India, including the United States, or

 enforce, in Indian courts, judgments obtained in foreign courts, against us or such persons or entities.

For more information on the enforcement of civil liabilities in India, see "Enforcement of Civil Liabilities".

Risk Factors Related to the Equity Shares

Significant differences exist between Indian GAAP and accounting principles generally accepted in
certain other countries, including U.S. GAAP and IFRS, which may be material to investors'
assessments of our historical financial results and future financial results upon adoption of any such
accounting principles other than Indian GAAP.

We have prepared our financial statements and other financial information contained in this Preliminary
Placement Document in accordance with Indian GAAP and RBI guidelines, as applicable. Indian GAAP, as
supplemented by RBI guidelines where applicable, differs in certain respects from accounting principles
generally accepted in certain other countries, including, IFRS and U.S. GAAP. Investors should review the
accounting policies applied in the preparation of our financial statements and consult their professional
advisors for an understanding of the differences between Indian GAAP, IFRS and U.S. GAAP and how
they might affect the financial information contained in this Preliminary Placement Document. The
principal accounting policies applied in the preparation of our financial statements are set forth in the
section "Financial Statements". We have not presented a reconciliation of our financial statements to IFRS or
U.S. GAAP in this Preliminary Placement Document, and do not intend to reconcile future financial
statements to IFRS or U.S. GAAP. Accordingly, the extent to which such financial statements will provide
meaningful information to you is dependent on your level of familiarity with Indian GAAP and RBI
guidelines. Had our financial statements and the other financial information contained in this Preliminary
Placement Document been prepared in accordance with U.S. GAAP or IFRS, our financial results may
have been materially different. Furthermore, we have made no attempt to quantify or identify the impact of
the differences between Indian GAAP and IFRS or between Indian GAAP and U.S. GAAP as applied to
our financial statements, and neither Indian GAAP nor the RBI guidelines require such quantification or
identification. Any such differences could be material in the context of the financial statements and other
financial information contained in the Preliminary Placement Document. As there are differences between
Indian GAAP and IFRS and between Indian GAAP and U.S. GAAP, there might be substantial differences
in our financial results if we were to prepare our financial statements in accordance with IFRS or U.S.
GAAP instead of Indian GAAP.

Holders of Equity Shares could be restricted in their ability to exercise pre-emptive rights under Indian
law and could thereby suffer future dilution of their ownership position.
Under the Companies Act, 1956, any company incorporated in India must offer its holders of equity shares
pre-emptive rights to subscribe and pay for a proportionate number of shares to maintain their existing
ownership percentages prior to the issuance of any new equity shares, unless the pre-emptive rights have
been waived by the adoption of a special resolution by holders of three-fourths of the shares voted on such
resolution, unless the company has obtained Government approval to issue without such rights. However, if
the law of the jurisdiction that you are in does not permit the exercise of such preemptive rights without us
filing an offering document or registration statement with the applicable authority in such jurisdiction, you
will be unable to exercise such preemptive rights unless we make such a filing. We may elect not to file a
registration statement in relation to preemptive rights otherwise available by Indian law to you. To the
extent that you are unable to exercise preemptive rights granted in respect of the Equity Shares, your
proportional interests in us would be reduced.

There may be less information available about entities listed on Indian stock exchanges than entities
listed on stock markets in other countries.

The Equity Shares will be publicly listed on the Stock Exchanges and will not be listed on any stock
exchange in any other country other than India. While the SEBI has issued regulations and guidelines on
disclosure requirements, insider trading and other matters, there may be less publicly available information
about Indian entities than is regularly made available by public entities in many other countries. As a result,
you may have access to less information about our business, result of operations and financial condition,
and those of our competitors listed on Indian stock exchanges, on an ongoing basis, than entities subject to
the reporting requirements of other countries.

Conditions in Indian stock exchanges may affect the price or liquidity of our Equity Shares

Indian stock exchanges have in the past experienced substantial fluctuations in the prices of listed securities
and other problems that have affected the market price and liquidity of the securities of Indian entities.
These problems have included temporary closure of the Stock Exchanges to manage extreme market
volatility, broker defaults, settlement delays and strikes by brokers. In addition, the governing bodies of the
Indian stock exchanges have from time to time restricted securities from trading, limited price movements
and imposed margin requirements. If similar problems occur in the future, the market price and liquidity of
our Equity Shares could be adversely affected. For more information on the securities market in India, see
the section "Indian Securities Market".

Currency exchange rate fluctuations may affect the value of the Equity Shares.

The exchange rate between the Rupee and other foreign currencies, including the U.S. Dollar, the British
Pound, the Euro, the Emirati Dirham, the Hong Kong Dollar, the Singapore Dollar and the Japanese Yen,
has changed substantially in recent years and may fluctuate substantially in the future. If you purchase
Rupees to purchase our Equity Shares, fluctuations in the exchange rate between the Rupee and the foreign
currency with which you purchased the Rupees may affect the value of your investment in our Equity
Shares, including, specifically, such foreign currency equivalent of:

 the Rupee trading price of our Equity Shares in India;

 the proceeds that you would receive upon the sale in India of any of our Equity Shares; and
 cash dividends, if any, on our Equity Shares, which will be paid only in Rupees.

For information on certain historical exchange rates between the Rupee and the U.S. Dollar, see the section
"Certain Conventions, Presentation of Financial, Industry and Market Data, Currency of Presentation and
Exchange Rates - Exchange Rates".

Future issuances or sales of the Equity Shares could significantly affect the trading price of the Equity
Shares.

The future issuance of Equity Shares by us, including pursuant to the ESOP 2007, or the disposal of Equity
Shares by any of our major shareholders or the perception that such issuance or sales may occur may
significantly affect the trading price of the Equity Shares. Except for the restrictions described in
"Placement", "Description of the Shares" and "Regulations and Policies", there is no restriction on our ability
to issue Equity Shares or the ability of any of our shareholders to dispose of, pledge or otherwise encumber
their Equity Shares, and there can be no assurance that we will not issue Equity Shares or that our
shareholders will not dispose of, pledge or otherwise encumber their Equity Shares. For further
information with respect to the ESOP 2007, see the section "Board of Directors and Management".

Our business and activities will be regulated by the Competition Act, 2002 as and when it is notified.

The Indian Parliament has enacted the Competition Act, 2002 (the "Competition Act") for the purpose of
preventing business practices having an adverse effect on competition under the auspices of the
Competition Commission of India, which (save for certain provisions) has recently come into force. Under
the Competition Act, any arrangement, understanding or action, whether or not formal or informal, which
causes or is likely to cause an appreciable adverse effect on competition is void and attracts substantial
penalties. Any agreement which directly or indirectly determines purchase or sale prices, limits or controls
production, shares the market by way of geographical area or market or number of customers in the market is
presumed to have an appreciable adverse effect on competition. It is unclear as to how the Competition Act
and the Competition Commission of India will affect industries in India.

An investor will not be able to sell any of our Equity Shares purchased in the Issue other than on a
recognized Indian stock exchange for a period of one year from the date of issue of such Equity Shares.

Pursuant to the SEBI Guidelines, for a period of one year from the date of the issue of our Equity Shares in
the Issue, investors purchasing our Equity Shares in the Issue may only sell their shares on the NSE or the
BSE and may not enter into any off-market trading in respect of their Equity Shares. We cannot assure that
these restrictions will not have an impact on the market price of any Equity Shares purchased by you.

Investors may be subject to Indian taxes arising out of capital gains on the sale of our Equity Shares.

Capital gains arising from the sale of our Equity Shares are generally taxable in India. Any gain realized on
the sale of our Equity Shares on a stock exchange held for more than 12 months will not be subject to
capital gains tax in India if the securities transaction tax, or STT, has been paid on the transaction. The STT
will be levied on and collected by an Indian stock exchange on which our Equity Shares are sold. Any gain
realized on the sale of our Equity Shares held for more than 12 months to an Indian resident, which are sold
other than on a recognized stock exchange and as a result of which no STT has been paid, will be subject to
capital gains tax in India. Further, any gain realized on the sale of our Equity Shares held for a period of 12
months or less will be subject to capital gains tax in India. Capital gains arising from the sale of our Equity
Shares will be exempt from taxation in India in cases where an exemption is provided under a treaty between
India and the country of which the seller is a resident. Generally, Indian tax treaties do not limit India's
ability to impose tax on capital gains. As a result, residents of other countries may be liable for tax in India
as well as in their own jurisdictions on gains arising from a sale of Equity Shares. For more information, see
the section "Taxation".

Your ability to sell your Equity Shares to a resident of India may be subject to delays if RBI approval is
required.

Under current Indian regulations and practice, RBI approval is required for the sale of Equity Shares by a
non-resident to a resident of India, unless the sale is made on a stock exchange in India through a stock
broker or a merchant banker registered with SEBI, at the market price. RBI approval may not be obtained
on terms favourable to a non-resident investor, in a timely manner or at all. Because of possible delays in
obtaining requisite approvals, investors in the Equity Shares may be prevented from realizing gains during
periods of price increases or limiting losses during periods of price declines.

Certain approvals required for the listing of the Equity Shares to be issued pursuant to the Issue may not
be obtained in a timely manner or at all, in which event you may not be able to obtain ownership over
any Equity Shares allotted to you.
In accordance with applicable Indian laws and regulations and the requirements of the Stock Exchanges, in-
principle and final approvals for the listing and trading of the Equity Shares to be issued pursuant to the
Issue will not be applied for by us or granted by the Stock Exchanges until after such Equity Shares have
been issued and allotted by us on the Closing Date. If there is a failure or a delay in obtaining such
approvals, we may not be able to credit Equity Shares allotted to you to your Depository Participant
account or assure ownership of such Equity Shares by you in any manner promptly after the Closing Date
or at all. In any such event, your ownership over Equity Shares allotted to you and your ability to dispose of
any such Equity Shares may be restricted. For further information on issue procedure, see the section "Issue
Procedure".
 MARKET PRICE INFORMATION

The Equity Shares are listed and traded on the BSE and the NSE. The stock market data presented below is
given for BSE and the NSE separately.

(i) The following tables set forth the reported high and low closing prices of the Equity Shares and the
total trading volume on the BSE and the NSE during the fiscal years ended March 31, 2007,
March 31, 2008 and March 31, 2009:

BSE

Volume on

Year Volume on date date of low Average ending of high

(Number (Number of price for March of Equity Low
Equity the year
31 High (Rs.) Date of High Shares) (Rs.) Date of Low Shares) (Rs.)

2007 61.60 February 7, 3,342,838 27.90 14/06/2006 711,268 45.13

2007
2008 131.40 December 10, 1,417,533 38.30 02/04/2007 576,624 75.36
2007
2009 102.25 May 2, 2008 2,563,174 27.35 05/03/2009 54,630 52.93
Source: www.bseindia.com

NSE

Year Volume on
ending Volume on date of date of low Average price
March High high (Number of Low (Number of for the year
31 (Rs.) Date of High Equity Shares) (Rs.) Date of Low Equity Shares) (Rs.)

2007 61.75 February 7, 7,578,442 27.90 June 14, 2006 1,609,872 45.14
2007
2008 131.70 December 27, 2,970,732 38.30 April 2, 2007 1,455,423 75.37
2007
2009 102.35 May 2, 2008 5,501,823 27.40 March 5, 2009 118,511 52.92
Source: www.nseindia.com

(ii) The following tables set forth the reported high and low closing prices of the Equity Shares and
the total trading volume on the BSE and the NSE during the last six months:

BSE

Volume on
date of low

Volume on date of (Number of Average price

Month, Date of high (Number of Low Equity for the month
Year High (Rs.) High Equity Shares) (Rs.) Date of Low Shares) (Rs.)

February 35.00 February 11, 66,808 30.10 February 26, 70528 32.47
2009 2009 2009
March 34.20 March 27, 451,682 27.35 March 5, /2009 54630 30.24
2009 2009
43.85 April 21, 622,561 33.15 April 1, 2009 201158 40.06
April 2009 2009
71.05 May 29, 2,974,885 42.15 May 15, 2009 599538 51.57
May 2009 2009
91.05 June 29, 3,833,594 69.55 June 8, 2009 521637 79.32
June 2009 2009
July 2009 94.80 July 20, 1,818,667 75.35 July 6, 2009 2343013 85.87
(upto 2009
29/07)
Source: www.bseindia.com
 NSE

Volume on Volume on
date of high date of low Average
(Number of (Number of price for
Month, Equity Low Equity the month
Year High (Rs.) Date of High Shares) (Rs.) Date of Low Shares) (Rs.)

February 35.05 February 11, 2009 211,307 30.05 February 26, 2009 418,478 32.45
2009
March 34.35 March 27, 2009 1,163,937 27.40 March 5, 2009 118,511 30.22
2009
April 2009 43.85 April 24, 2009 605,882 33.25 April 1, 2009 380,108 40.06
May 2009 71.45 May 29, 2009 6,155,480 42.15 May 15, 2009 2,372,249 51.61
June 2009 91.40 June 29, 2009 7,066,239 69.35 June 8, 2009 1,923,086 79.34
July 2009 94.85 July 20, 2009 4,239,039 75.15 July 6, 2009 4,039,382 85.87
Source: www.nseindia.com

(iii) The following tables set forth the details of the number of Equity Shares and the volume of
business transacted during the last six months and the fiscal years ended March 31, 2007, March
31, 2008 and March 31, 2009 on the Stock Exchanges:

Number of Equity Shares

Period BSE NSE

February 2009 1,465,638 5,198,483

March 2009 April 2009 4,472,530 9,216,170
May 2009 June 2009 6,260,801 16,932,438
July 2009 21,415,557 53,279,027
Year ended March 31, 2007 Year 33,075,471 90,177,613
ended March 31, 2008 Year ended 26,990,400 65,818,953
March 31, 2009 122,014,064 319,195,401
(Source: www.bseindia.com, www.nseindia.com) 210,890,459 453,674,381
79,080,145 151,647,093
Volume of business
(Rs. millions)
Period BSE NSE

February 2009 47.52 170.79

March 2009 143.75 293.75
April 2009 254.83 685.71
May 2009 1,240.67 3,031.70
June 2009 2,734.50 7,344.89
July 2009 2,305.64 5,600.72
Year ended March 31, 2007 5,837.43 15,273.24
Year ended March 31, 2008 17,944.17 38,032.45
Year ended March 31, 2009 4,837.90 9,455.21
(Source: www.bseindia.com, www.nseindia.com)

(iv) The following table sets forth the market price on the Stock Exchanges on July 6, 2009, the first
working day following the approval of the Board of Directors for the Issue:
Date BSE NSE
July 6, 2009 Open High Low Close Open High Low Close

Price of the Equity Shares (Rs.) 85.90 90.00 73.20 75.35 85.80 90.00 73.35 75.00

Volume on the Date (number of 2,343,013 4,039,382

Equity Shares)
__________
(Source: www.bseindia.com, www.nseindia.com)
Notes:
1) High, low and average prices are of the daily closing prices.
2) In case of two days with the same closing price, the date with higher volume has been considered.
 USE OF PROCEEDS

The net proceeds from the issue and sale of [●] new Equity Shares by us as described in this Preliminary
Placement Document are estimated to be approximately Rs. [●] million. We will apply the net proceeds
primarily to enhance our capital adequacy ratio and increase our capacity to lend and for general corporate
purposes.
 CAPITALIZATION AND INDEBTEDNESS

The following table shows, as of June 30, 2009:

 our actual capitalization and indebtedness on a consolidated basis; and

 our capitalization on a consolidated basis as adjusted for the Issue.

This table should be read in conjunction with the section "Management's Discussion and Analysis of
Financial Condition and Results of Operations" and our financial statements and the related notes thereto
contained elsewhere in this Preliminary Placement Document.

As of June 30, 2009

Actual As adjusted for the Issue

(unaudited)
(Rs. millions)
Shareholders' funds
Capital 3,551.92 [●] [●] [●]
Employee stock options outstanding 15.59
Reserves and surplus 13,936.11 [●]

Total shareholders' funds 17,503.62

[●] [●] [●]
Loan funds
Deposits 216,387.79 [●]
Subordinated debt 8,940.00
Other borrowings/liabilities (unsecured) 23,413.06 [●]

Total debt 248,740.85

Total capitalization 266,244.47

We had no secured borrowings as of June 30, 2009.

 DIVIDEND POLICY

We generally declare and pay dividends in the fiscal year following the year as to which they relate. Under
the Companies Act, an Indian company may pay dividends only upon a recommendation by its board of
directors and approval by a majority of its shareholders at the annual general meeting. Shareholders may
decrease, but not increase the amount of dividend recommended by the board of directors. Under the
Companies Act, a company may pay dividends only out of its profits in the year in which the dividend is
declared or out of the undistributed profits or reserves of prior fiscal years or out of both.

Payment of dividends is also subject to restrictions under the Banking Regulation Act. Section 15(1) of the
Banking Regulation Act states that no banking company may pay any dividend on its shares until all its
capitalized expenses (including preliminary expenses, organization expenses, share-selling commissions,
brokerage, amounts of losses incurred and any other item of expenditure not represented by tangible assets)
have been completely written off. In addition, Section 17(1) of the Banking Regulation Act requires every
banking company to create a reserve fund and, out of the balance of the profit of each year as disclosed in
the profit and loss account, transfer a sum equivalent to not less than 20% of such profit to the reserve fund
before declaring any dividend.

The RBI has also placed certain restrictions on the payment of dividends by banks which are summarized
as follows:

a) Only banks with a CAR of 9% in each of the prior three years and NPAs of less than 7% are eligible to
declare a dividend.

b) Any dividend can only be paid out of our profit in the year in which the dividend is to be paid.

c) The maximum permissible dividend payout ratio is 40% of our net profit in the year in which the
dividend is to be paid.

d) The dividend payout is linked to a matrix of our CAR and NPA ratios as follows:

Net NPA Ratio

More than
zero but less From 3% to From 5% to
Zero than 3% less than 5% less than 7%
Range of Dividend Payout Ratio
Category CAR (of the current year's net profit)

A 11% or more for each of the last 3 years up to 40 up to 35 up to 25 up to 15

B 10% or more for each of the last 3 years up to 35 up to 30 up to 20 up to 10
C 9% or more for each of the last 3 years up to 30 up to 25 up to 15 up to 5
D 9% or more in the current year up to 10 up to 5 Nil

Note:

Banks should have a CAR of at least 9% for the preceding two completed years and the accounting year for
which it proposes to declare a dividend and net NPAs of less than 7% to be eligible to declare dividends. In
the event that any bank does not meet the above CAR requirement, but has a CAR of at least 9% for the
accounting year for which it proposes to declare dividend and a net NPA ratio of less than 5%, it would be
eligible to declare a dividend.

The table below sets forth the details of the dividends declared by us on our Equity Shares during the last
three fiscal years:
 No. of Shares entitled to Dividend per Equity Total Amount of
Fiscal Year dividends Share Dividend
( Paid (Rs. in
2009 355000000 R millions)
2008 319807936 s
2007 319807936 . 4
) 4
7.
1
1 1
. 1
2 9
0 1.
8
0 8
. 1
6 9
0 1.
8
0 8
.
6
0

The amounts paid as dividends in the past are not necessarily indicative of our dividend policy or dividend
amounts, if any, in the future. The form, frequency and amount of future dividends will depend on our
revenues, cash flows, financial condition (including capital position) and other factors and shall be at the
discretion of our Board and subject to the approval of our shareholders.

For a summary of certain Indian and United States federal tax consequences of dividend distributions to
shareholders, see the section "Taxation". For a description of our regulation of dividends, see the section
"Description of the Shares - Dividends".
 SELECTED STATISTICAL INFORMATION

The following unaudited information should be read together with our financial statements included in this
Placement Document and the section "Management's Discussion and Analysis of Financial Condition and
Results of Operations". All amounts presented in this section have been prepared in accordance with Indian
GAAP. Footnotes appear at the end of each related section of tables. Unless otherwise stated, amounts are
not on a consolidated basis.

Average Balance Sheet

The table below presents the average balances for interest-earning assets and interest-bearing liabilities
together with the related interest revenue and expense amounts, resulting in the presentation of the average
yields and cost for each period. The average balance is the average of monthly balances outstanding. The
average yield on average interest-earning assets is the ratio of interest revenue to average interest-earning
assets. The average cost on average interest-bearing liabilities is the ratio of interest expense to average
interest-bearing liabilities. The average balances of loans include NPAs and are net of allowances for credit
losses. We have not recalculated tax exempt income on a tax equivalent basis.

Year ended March 31,

2007 2008 2009
Interest Average Interest Average Interest Average
Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/
Balance Expense Cost (%) Balance Expense Cost (%) Balance Expense Cost (%)

(in Rs. millions, except percentages)

Interest-earning assets:

Advances .......................... 107,724.99 10,446.00 9.70% 121,135.20 14,253.29 11.77% 136,239.52 17,933.11 13.16%
Investments....................... 56,770.94 3,518.30 6.20% 64,143.31 4,034.70 6.29% 75,815.74 4,832.40 6.37%
Others(1)............................. 4,351.56 556.62 12.79% 3,600.30 518.61 14.40% 3,306.19 329.23 9.96%
Total interest-earning
assets .......................... 168,847.49 14,520.92 8.60% 188,878.80 18,806.60 9.96% 215,361.45 23,094.74 10.72%

Non-interest earning
assets

Fixed assets....................... Other 3,477.62 4375.53 6,261.93

assets(2).................... 25,779.91 80.4 29,809.27 32,405.74
Total assets 198,105.02 14,601.32(3) 7.37% 223,063.61 18,806.60(3) 8.43% 254,029.12 2,3094.7 9.09%
Interest-bearing 4
liabilities:
Deposits ............................ 159,417.60 10,598.94 6.65% 180,338.98 14,011.54 7.77% 194,426.41 8.11%
Borrowings(4) .................... 21,446.98 1,689.53 7.88% 20,453.87 1,787.05 8.74% 32,258.18 15,759.6 8.51%
9
Total interest-bearing 2,744.7
liabilities .................... 180,864.57 12,288.47 6.79% 200,792.85 15,798.59 7.87% 226,684.58 2 8.16%

18,504.4
1
Non-interest bearing

liabilities .....................
Capital and reserves.......... Other 9,152.80 11,608.64 16,091.96
liabilities(5) ............. 8,087.65 10,662.12 11,252.58
Total non-interest
bearing liabilities ...... 17,240.45 22,270.76 27,344.54
Total liabilities ................ 198,105.02 12,288.47 6.20% 223,063.61 15,798.59 7.08% 254,029.12 18,504.41 7.28%

_______________

(1) Excludes balances with RBI held for CRR, which do not carry interest.
(2) Includes balances with RBI held for CRR, which do not carry interest with effect from April 01, 2007.
(3) Amortization amount in respect of investments has been adjusted as per revised RBI guidelines issued in June 2008. Includes
(4) subordinate debt in nature of Tier II bonds and Upper Tier II bonds issued. Excludes subordinate debt in nature of Tier II bonds
(5) and Upper Tier II bonds.
 Three months ended June 30, 2009
Average Balance Interest Income/ Expense Average Yield/Cost(1) (%)

(in Rs. millions, except percentages)

Interest-earning assets:
Advances ......................................... 149,12 4,916.68 13.19%
Investments...................................... 5.51 1,315.40 6.11%
Others(1)...................................... 86,16 56.16 5.94%
Total interest-earning assets......... 7.34 6,288.24 10.52%
3,78
Non-interest earning assets: 4.23
Fixed assets...................................... Other - -
239,07
assets(2)................................... - -
7.08
Total Assets 6,288.24 9.22%
Interest-bearing liabilities:
Deposits ........................................... 6,22 3,987.67 7.60%
0.96 626.93 7.90%
Borrowings(3) .............................
27,65
Total interest-bearing liabilities 8.94 4,614.40 7.64%
Non-interest bearing liabilities ........ 272,95
Capital and reserves......................... Other 6.98 - -
liabilities(4) ...................... - -
209,89
8.69
31,72
5.65
241,62
4.34

17,81
4.49
13,51
8.14
Total non-interest bearing

liabilities ................................... 31,332.64 - -

Total liabilities ............................... 272,956.98 4,61 6.76%
4.60
_______________

(1) Excludes balances with RBI held for CRR which do not carry interest. (2)
Includes balances with RBI held for CRR which do not carry interest.
(3) Includes subordinate debt in nature of Tier II bonds and Upper Tier II bonds issued.
(4) Excludes subordinate debt in the nature of Tier II bonds and Upper Tier II bonds.

Analysis of Changes in Interest Income and Interest Expense by Volume and Rate

The following tables set forth, for the periods indicated, the allocation of the changes in our interest income
and interest expense between average volume and changes in average rates.

Year ended March 31, 2008 vs. year ended Year ended March 31, 2009 vs. year ended
March 31, 2007 March 31, 2008
Increase (Decrease)(1) due to Increase (Decrease)(1) due to
Change in Change in Change in Change in
Average Average Average Average
Net Change Volume Rate Net Change Volume Rate

(in Rs. millions, except percentages)

Interest income:

Advances ................................... 3,807.29 1,300.38 2,506.91 3679.82 1,777.2

Investments................................ 516.40 456.89 59.51 797.70 4 2,125.87
Others......................................... (38.01) (96.09) 58.08 (189.38) 734.2 343.21
Total interest-earning assets... 4,285.68 1,661.17 2,624.51 4288.14 1
(42.37
Interest expenses: )
Deposits ..................................... 3,412.60 1,390.97 2,021.63 1,748.15
2,469.0
Borrowings, as adjusted ............ 97.52 (78.23) 175.75 957.69
Total interest-bearing 9
liabilities ............................. Net 3,510.12 1,312.73 2197.39 2,705.84
interest revenue................. 775.56 1,582.30 1,094.5
348.44 427.12
3
1,031.3
4
 1,902.58 1,819.0 (73.65)
1,239.09
63.49 653.62
5 579.97
(147.01)
_______________

(1) The changes in net interest revenue between periods have been reflected as attributed either to volume or rate changes. For
purposes of this table, changes which are due to both volume and rate have been allocated solely to changes in rate.

Yields, Spreads and Margins

The following table sets forth, for the periods indicated, the yields, spreads and interest margins on our
interest-earning assets.
 Year ended March 31,
2007 2008 2009

(in Rs. millions, except percentages)

Average interest-earning assets............................ Average interest- 168,847.4 188,878.80 215,361.45 226,684.58

bearing liabilities ...................... Average total 9 200,792.85 254,029.12
assets .............................................. 180,864.5 223,063.61
Average interest-earning assets as a percentage of 7 84.78%
average total assets (%) ........................................ 198,105.0 84.67%
Average interest-bearing liabilities as a 2 89.24%
percentage of average total assets (%) ................. 90.02%
Average interest-earning assets as a percentage of 85.23 95.00% 10.72% 8.16%
average interest-bearing liabilities (%) ................ Yield % 94.07% 2.56% 1.96%
(%) ............................................................. Cost of Funds 9.96% 7.87%
(%)................................................. Spread (%) 91.30 2.09% 1.53%
%
(1) .........................................................
Net interest margin (%)(2) ..................................
93.36
%
8.60%
6.79%
1.81%
1.37%
_______________

(1) Spread is the difference between yield on average interest-earning assets and cost of average interest bearing liabilities. Yield on average
interest-earning assets is the ratio of interest income to average interest-earning assets. Cost of funds is the ratio of interest expense to
average interest-bearing liabilities.
(2) NIM is calculated based on average figures computed from the monthly return submitted to the RBI. Interest income has been grossed up to
the amount amortised for HTM Investments.

Three months ended

June 30, 2009(3)

Average interest-earning assets.............................................................................................................. Average 239,077.08 241,624.34

interest-bearing liabilities ........................................................................................................ Average total 272,956.98
assets ................................................................................................................................ Average interest-earning 87.59% 88.52%
assets as a percentage of average total assets (%)......................................... Average interest-bearing liabilities as a 98.95% 10.52%
percentage of average total assets (%) ................................... Average interest-earning assets as a percentage of 7.64% 2.88% 2.60%
average interest-bearing liabilities (%)................. Yield
(%) ............................................................................................................................................... Cost of Funds
(%)................................................................................................................................... Spread (%)
(1) ........................................................................................................................................... Net interest margin(%)(2)

.....................................................................................................................
_______________

(1) Spread is the difference between yield on average interest-earning assets and cost of average interest bearing liabilities. Yield on average
interest-earning assets is the ratio of interest income to average interest-earning assets. Cost of funds is the ratio of interest expense to
average interest-bearing liabilities.
(2) NIM is calculated based on average figures computed from the monthly return submitted to the RBI. Interest figures are grossed up by the
amortized amount pertaining to HTM investments. Ratios are annualized.
(3)

Return on Equity and Assets

The following table presents selected financial ratios for the periods indicated.

Three months
Year ended March 31, ended June 30,
2007 2008 2009 2009(1)
(in Rs. millions, except percentages)
Interest income:
Average total assets ......................................................................... 198,105.02 223,063.61 254,029.12 272,956.98
Average shareholders' equity.......................................................... 9,152.80 11,009.11 13,735.64 15,467.53

(2)
ROE(Net profit to average shareholders' equity) (%)................. 7.45% 0.34% 6.82% 0.34% 10.8% 0.58% 22.37%
ROA(Net profit to average total assets) (2) (%) 1.27%
Average shareholders' equity as a percentage of average total
assets (2) (%) ..................................................................................... 4.62% 4.94% 5.41% 5.67%
_______________
(1) Ratios are annualized.
(2) Average total assets have been calculated as per our monthly returns (Form X) filed with the RBI.
Investment Portfolio

The following tables set forth, as of the dates indicated, information related to our investments.

As of March 31, 2009 As of March 31, 2008 As of March 31, 2007

Held Held
Held To Available Held For Held To Available For Held To Available For
Maturity For Sale Trading Maturity For Sale Trading Maturity For Sale Trading

(Rs. millions)
Government securities 54,939.5 8,004.1 0.0 46,778.8 5,793.9 1,784.4 37,190.9 10,807.2 495.1
Other approved securities........ 0.0 37.5 0.0 0.0 37.6 0.0 15.5 36.8 0.0
Shares ...................................... 53.5 303.7 0.0 53.5 337.1 0.0 53.5 160.5 0.0
Debentures and bonds ............. 0.0 142.5 0.0 0.0 402.1 0.0 0.0 503.4 0.0

Subsidiaries and joint 5.0 0.0 0.0 5.0 0.0 0.0 5.0 0.0 0.0
ventures ...................................

Others, including deposits under Rural

Infrastructure
Development Scheme with 16,567.0 781.3 0.0 11,025.2 79.4 0.0 8,970.7 678.0 0.0
NABARD, security receipts
and pass through certificates ...
Total ........................................ 71,565.0 9,269.1 0.0 57,862.5 6,650.1 1,784.4 46,235.6 12,185.9 495.1
 As of June 30, 2009

Held To Available For Held For

Maturity Sale Trading
(Rs. millions)

Government securities ………… 52,957.4 6,276.8 0.0 0.0 0.0 0.0

Other approved securities............................................................ 37.4 58.5 0.0 0.0
Shares .......................................................................................... 0.0 305.5 138.1
Debentures and bonds ................................................................. 0.0 0.0 0.0

Subsidiaries and joint ventures ...................................................

15,815.6 255.5
Others, including deposits under Rural Infrastructure Development 0.0
Scheme with NABARD, security receipts and
pass through certificates.............................................................. 68,868.9 6,975.9
Total............................................................................................

Total Deposits

The following table sets forth, for the dates indicated, our outstanding deposits and the percentage composition by each
category of deposits.

As of March 31, As of June 30,

2007 2008 2009 2009
% of
Amount % of Total Amount % of Total Amount Total Amount % of Total

(in Rs. millions, except percentages)

CASA ............... 26,327.03 14.92 29,883.21 15.70 42,549.01 19.24 43,708.95 20.20
Term deposits... 150,121.02 85.08 160,491.02 84.30 178,553.52 80.76 172,678.84 79.80
Total................. 176,448.05 100.00 190,374.23 100.00 221,102.53 100.00 216,387.79 100.00
_______________

(1) Includes current and savings accounts and excludes cash floats from transactional services.

Borrowings

The following table sets forth, for the periods indicated, information related to our borrowings, which are comprised
primarily of money-market borrowings and refinances, mainly from NABARD and SIDBI. Borrowings exclude deposits and
securities sold under repurchase agreements.

Years ended March 31, Three months ended June 30,

2009
2007 2008 2009
(in Rs. Millions, except percentages)

Period end balance.................................................... 5,925.08 10,954.35 18,564.55 23,413.06

Average balance during the period(1)........................ 14,550.81 11,743.87 23,792.49 22,120.65
Maximum outstanding ............................................. 25,212.74 19,131.23 27,904.46 23,705.73
Interest paid during the year 1,111.50 1,021.21 1,972.05 410.73
Average interest rate during the period(2) (%) ................. 7.64 8.70 8.29 7.43
Average interest rate at period end(3) (%)............................ 18.76 9.32 10.62 7.02
_______________

(1 ) Average is based on Form X as of last Friday of each month, and as of the last day of March in each fiscal year, submitted to the RBI.
(2) Represents the ratio of interest expense on borrowings to the average balances of borrowings.
(3) Represents the average rate of borrowings outstanding as of March 31, 2007, March 31, 2008 and March 31, 2009 and June 30, 2009.

Subordinated Debt

We obtain funds from the issuance of unsecured non-convertible subordinated debt securities, which qualify as Tier II capital
under RBI guidelines for assessing capital adequacy. As of March 31, 2009 and June 30, 2009, our outstanding subordinated
debt aggregated Rs. 6,516.00 million and Rs. 5,851.00 million, respectively.

The following table sets forth information with respect to subordinated debt issued by us, as of July 31, 2009:
 (in Rs. millions)
Date of Allotment Rate of Interest Date of Redemption Amount

June 30, 2004 6.80% April 30, 2010 480.00

June 30, 2004 7.00% April 30, 2014 500.00
March 31, 2005 8.10% June 30, 2010 820.00
March 31, 2005 8.50% June 30, 2014 751.00

March 31, 2005 190bps over 1 yr G-sec(INBMK) June 150.00

December 30, 2005 8.40% 30, 1,150.00
March 30, 2007 10.00% 10.35% 2010 500.00 500.00
September 29, 2007 10.50% May 1,000.00
March 31, 2009 30,
2015
June
Upper Tier II Capital 29,
2012
April
29,
2013
June
30,
2014

We have issued Upper Tier II instruments qualifying for Tier II capital to increase our capital adequacy ratio and fund our
growing operations. As of June 30, 2009, we had Rs. 3,089.00 million of aggregate amounts of Upper Tier II instruments
outstanding which qualified as Tier II capital.

The following table sets forth information with respect to Upper Tier II instruments issued by us, as of July 31, 2009:

(in Rs. millions)

Number of
Date of Allotment Debentures Rate of Interest Date of Redemption Amount

March 31, 2006 1,000.00 9.60% p.a upto first 10 years and 10% p.a from 11th year March 30, 2021 1,000.00
September 29, 2006 802.00 10.25% p.a upto first 10 years and 10.75% p.a from 11th year September 28, 2021 802.00
December 23, 2006 1,287 9.75% p.a upto first 10 years and 10.25% p.a from 11th year December 12, 2021 1,287.00
Asset Liability Gap

The following table sets forth our asset-liability gap position as of June 19, 2009, which was the last statutory reporting Friday in the three
months ended June 30, 2009:

Over 3 Over 6
15 days 29 days months months Over 1 year Over 3
2 days to 8 days to to 28 and up to & up to 6 & up to 1 & up to 3 years & up Over 5
OUT FLOWS Next Day 7 days 14 days days 3 months months year years to 5 years years Total
(in Rs. millions)
Capital ....................... - - - - - - - - - 3,551.92 3,551.92
Reserves & Surplus - - - - - - - - - 14,860.31 14,860.31
Deposits ..................... 553.09 4,047.44 4,845.67 3,684.40 25,863.02 17,152.04 29,771.24 75,694.89 26,373.16 26,275.35 214,260.30
Borrowings ................ 1,032.09 5,258.87 14.25 80.10 42.75 520.00 3,505.30 711.90 7,589.60 556.40 19,311.26
Other Liabilities ........ 1,170.04 9,033.44 25,503.73 4,142.49 28,498.41 38,773.22 33,310.24 3,645.58 4,200.01 6,139.82 154,416.98
A. TOTAL
OUTFLOWS............ 2,755.22 18,339.75 30,363.65 7,906.99 54,404.18 56,445.26 66,586.78 80,052.37 38,162.77 51,383.81 406,400.78

Over 3 Over 6
15 days 29 days months months Over 1 year Over 3
2 days to 8 days to to 28 and up to & up to 6 & up to 1 & up to 3 years & up Over 5
IN FLOWS Next Day 7 days 14 days days 3 months months year years to 5 years years Total
Cash ........................... 1,743.54 - - - - - - - - - 1,743.54
Balances with RBI..... - - - 290.94 727.36 436.42 436.42 3,927.74 2,473.02 6,255.30 14,547.20
Balances with other
Banks ......................... 1,957.52 190.40 401.85 951.75 1,673.80 - - 79.90 - - 5,255.22 Investments................ - 11,559.20 - 249.42 -
21.59 7,845.83 8,326.86 10,327.11 43,855.91 82,185.92 Advances ................... 4,946.72 4,549.55 7,022.06 7,594.45
24,931.58 17,610.16 37,794.60 36,325.29 7,109.30 1,792.50 149,676.21 Fixed Assets .............. - - -- - --- -
6,227.50 6,227.50 Other Assets .............. 3,205.69 8,213.83 24,876.76 960.02 24,053.67 37,237.14 30,262.51 1,776.60
1,112.90 6,715.15 138,414.27
B. TOTAL
INFLOWS ................ 11,853.46 24,512.98 32,300.67 10,046.59 51,386.41 55,305.30 76,339.35 50,436.39 21,022.34 64,846.36 398,049.85
C - GAP (B-A)......... 9,098.24 6,173.23 1,937.02 2,139.60 (3,017.77) (1,139.96) 9,752.58 (29,615.98) (17,140.43) 13,462.55 (8,350.93)
 Loan Portfolio

As of March 31, 2009 and June 30, 2009, our gross loan portfolio was Rs. 158.47 billion and Rs. 165.26 billion,
respectively. As of each date, almost all our gross loans are to borrowers in India and are denominated in Indian Rupees. For
a description of our corporate and retail loan products, see "Our Business".

The following table sets forth, for the periods indicated, our net loan portfolio classified by product groups:

As of March 31,

Classification of Loans and Advances 2 2008 2009

0
0 (in Rs. millions)
Cash credits, overdrafts and loans repayable on demand ........................... 7 37,099.86 50,894.83
Term loans ................................................................................................... 86,393.16 92,952.71
Bills purchased and discounted................................................................... 29,520 4,460.06 13,858.82
Loans and advances..................................................................................... .04 127,953.08 157,706.36
Total ............................................................................................................ 77,279 127,953.08 157,706.36
.37
4,042
As of June 30,
.59
110,842
.00
110,842
.00

As of March
31,
Classification of Loans and Advances 2007 2008 2009 2009
(in Rs. millions)

Consumer finance advances (Gross)....................... 65,226.26 73,066.87 71,694.08 73,189.52

Corporate, SME and other loans (Gross) ................ 46,305.54 55,899.15 86,771.25 92,071.70
Gross loans .............................................................. 111,531.80 128,966.02 158,465.33 165,261.22
Gross loans and loan substitutes ............................. 111,531.80 128,966.02 158,465.33 165,261.22

Maturity and Interest Rate Sensitivity of Loans

The following table sets forth, for the periods indicated, the interest rate sensitivity of our loans:

Three months ended June 30, 2009

Due in one year Due in one year to
or less five years Due after five years Total
(in Rs. millions)
Interest rate classification of loans by maturity:
Variable rates ...................................................... 65,849 8,368 1,413 75,629
Fixed rates........................................................... 42,120 36,180 1,430 79,730
Total.......................................................................... 107,969 44,548 2,843 155,539

Concentration of Loans

Our total loan portfolio consists of two broad segments: corporate loans, including loans to small and medium enterprises,
or SMEs, and consumer finance loans, including vehicle financing loans. Year-wise distribution of the
loans according to the above segments is as follows:

As of March 31, As of June 30,

2007 2008 2009 2009
% of % of % of % of
Loans Total Loans Total Loans Total Loans Total
(in Rs. millions, except percentages)
Consumer finance advances........... 64,834.26 58.50 72,619.69 56.75 71,274.00 45.19 72,786.92 44.24
Corporate, SME and other loans.... 46,007.74 41.50 55,333.39 43.25 86,432.36 54.81 91,728.80 55.76
Total Outstanding Net Loans ..... 110,842.00 100.00 127,953.08 100.00 157,706.36 100.00 164,515.72 100.00
The following table sets forth, at the dates indicated, our fund-based loans outstanding categorized by activity.
As of March 31, As of June 30,
Customers 2007 2008 2009 2009
% of % of % of % of
Loans Total Loans Total Loans Total Loans Total

Commercial vehicles .............. 40,133.10 36.21 43,280.70 33.83 41,638.60 26.40 42,844.40 26.04
Multi Utility vehicles .............. 2,679.64 2.42 3,290.45 2.57 4,286.99 2.72 4,840.38 2.94
Construction equipment .......... 8,079.65 7.29 10,592.56 8.28 10,055.05 6.38 10,166.01 6.18
Cars ......................................... 6,603.39 5.96 6,038.00 4.72 5,107.74 3.24 5,161.22 3.14
Two wheelers .......................... 6,543.90 5.90 7,861.78 6.14 8,637.48 5.48 8,355.82 5.08
Infrastructure........................... 2,543.40 2.29 3,446.40 2.69 5,951.00 3.77 6,540.70 3.98
Construction ............................ 413.80 0.37 1,791.10 1.40 1,801.40 1.14 3,108.90 1.89
Chemicals................................ 1,433.10 1.29 1,946.50 1.52 4,543.30 2.88 5,381.60 3.27
Textiles.................................... 3,547.00 3.20 5,376.20 4.20 4,106.00 2.60 3,629.40 2.21
Sugar, tea, food processing .... 595.90 0.54 1,598.20 1.25 720.00 0.46 682.70 0.41
Others ...................................... 38,269.12 34.53 42,731.18 33.40 70,858.81 44.93 73,804.58 44.86
Total loans outstanding ........ 110,841.98 127,953.08 157,706.36 164,515.72
_______________

As of June 30, 2009, the aggregate borrowings of our twenty largest borrowers amounted to Rs. 28.22 billion, representing
approximately 120.59% of our total capital funds, which comprises Tier I and Tier II capital. Our single largest borrower on
such date had an outstanding balance of Rs. 3.5 million, representing 14.96% of our capital. See "Risk Factors - We have
substantial exposure to certain sectors and borrowers and our business could be materially and adversely affected by
difficulties experienced in these sectors or by such borrowers".

Priority Sector Lending

As stipulated by the RBI, commercial banks in India are required to lend 40% of their net bank credit to specified sectors
known as "priority sectors", subject to certain exemptions permitted by RBI from time to time. Priority sector advances
include loans to agriculture, small-scale industry and services and loans to weaker section, housing and education finance up
to certain ceilings, lending for specific infrastructure projects and also investments in instruments issued by notified
institutions. We are required to comply with the priority sector lending requirements as of the last reporting Friday of March
in each fiscal year. Any shortfall in the amount required to be lent to the agricultural sector may be required to be deposited
with government sponsored Indian developmental banks such as the NABARD.

These deposits have a maturity of up to seven years and carry interest rates lower than market rates. A breakdown of our
priority sector lending position as of the last reporting Friday over the last three years and over the three months
ended June 30, 2009 is as follows:

As of the last reporting Friday of

March 2007 March 2008 March 2009 June 2009
% of total % of total % of total
Amount advances Amount advances Amount advances
(in Rs. millions, except percentages)

Agriculture advances ............. 14,917 13.46 14,556 11.38 26,152 16.58 26,607
Small scale industry and 25.00
services and others................. 27,706 43,912 34.32 36,836 23.36 35,964
Total ...................................... 42,623 38.46 58,468 45.69 62,988 39.94 62,571
Non-Performing Assets

As of June 30, 2009, gross NPAs as a proportion of gross loans were 1.46% and net NPAs as a proportion of net loans were
1.01%. We had, as of June 30, 2009, effected a provision cover of 31% of our gross NPAs.

The following table sets forth, for the periods indicated, information about our NPA portfolio:

As of or for the
three months ended
As of or for the year ended March 31 June 30,
2007 2008 2009 2009
(in Rs. millions, except percentages)

Opening balance at the beginning of the period.............. 2,688 3,427 3,923 2,550
Additions during the period............................................. 2,375 1,554 2,190 483
Less: Reductions during the period on account of
recovery and write-offs ............................................. 1,636 1,058 3,563 622
Gross NPAs at the close of the period ......................... 3,427 3,923 2,550 2,411
Corporate NPAs............................................................... 1,898 2,234 755 564
CFD NPAs ....................................................................... 1,529 1,689 1,795 1,847
Gross NPAs ..................................................................... 3,427 3,923 2,550 2,411

Net NPAs ......................................................................... 2,737.5 2,910.2 1,791.3 1,665.5

Gross loans....................................................................... 111,531.81 128,966.00 158,465.30 165,261.20
Net loans .......................................................................... 110,842.00 127,953.00 157,706.40 164,516.1
Gross NPAs/Gross loans (%)........................................ 3.07 3.04 1.61 1.46
Net NPAs/Net Loans (%) .............................................. 2.47 2.27 1.14 1.01
Total provisions as a percentage of gross NPAs (%) 20.13 25.82 29.76 30.92

Recognition of Non-Performing Assets

As a commercial bank operating in India, we recognize NPAs strictly in accordance with the RBI's guidelines. The
guidelines require Indian banks to classify their NPAs into three categories, as described below, based on the period for which
the asset has remained non-performing and the estimated realization of amounts due in relation to such asset. Further, the
NPA classification is at the borrower level, rather than at the facility level, and, accordingly, if one of the loans granted to a
borrower becomes non-performing, such borrower is classified as non-performing and all loans due from it are so classified.

Substandard Assets

An asset becomes non-performing if interest and/or instalment of principal in relation thereto remain overdue for more than 90
days (an exception to this rule is that loans to agricultural borrowers are classified as non-performing only if the loan
remains overdue for more than two harvest seasons). With effect from March 31, 2005, and in accordance
with RBI guidelines, a substandard asset is an asset that has remained non-performing for a period of up to 12 months.

Doubtful Assets

With effect from March 31, 2005, and in accordance with RBI guidelines, a doubtful asset is an asset that has remained non-
performing for a period exceeding one year. Further, with effect from March 31, 2005, doubtful assets are to be classified
further into Doubtful-I, Doubtful-II and Doubtful-III, depending on the period such assets have been
classified as doubtful, in the following manner:

(a) If the asset has remained in the doubtful category for a period of up to one year, it is classified as a Doubtful-I
asset;
(b) If the asset has remained in the doubtful category for a period of more than one year but less than three years,
it is classified as a Doubtful-II asset; and
(c) If the asset has remained in the doubtful category for a period of more than three years, it is classified as a
Doubtful-III asset.

Loss Assets

In accordance with the RBI guidelines, a loss asset is an asset that is considered irrecoverable with little or no salvage value.

In cases of serious credit impairment, an asset is required to be immediately classified as doubtful or as a loss asset, as
appropriate. Further, erosion in the value of the security provided may also be considered significant when the realizable
value of the security is less than 50% of the value as assessed by us or as accepted by the RBI at the time of
the last inspection of the security, as the case may be. In such a case, the assets secured by such impaired security may
immediately be classified as doubtful. If the realizable value of the security, as assessed by our appraisers or by the RBI, is
less than 10% of the amount outstanding from the borrower providing such security, the value of the security is ignored and
the asset is immediately classified as a loss, which is either written off or fully provided for.

The table below sets forth our NPA position as of the dates specified.

As of March 31, As of June 30,

2007 2008 2009 2009

(in Rs. millions, except percentages)

Sub-standard loans:
Amount.................................... 1,997.95 1,043.6 1,371.65 1,158.93
As a percentage of total NPAs 58.29 26.60 53.78 48.07
Doubtful loans:
Amount........................................ 1,429.41 2,729.70 1,176.50 1,252.02
As a percentage of total NPAs 41.71 69.58 46.14 51.93
Loss loans:
Amount........................................ 0.00 149.80 2.10 0.00
As a percentage of total NPAs .... 0.00 3.82 0.08 0.00
Gross NPAs....................................... 3,427.36 3,923.10 2,550.20 2,410.95

The decrease in gross NPAs from Rs. 2,550.20 million as of March 31, 2009 to Rs. 2,410.95 million as of June 30, 2009,
which was a decrease of 5.46%, was primarily due to effective recovery.

As of March 31, As of June 30,

Category of Advance 2007 2008 2009 2009

(in Rs. millions)

Gross advances............................................
111,531.8 128,966.02 73,066.87 158,465.30 165,261.20 73,189.50
Consumer finance advances ........................
1 55,899.15 71,694.08 92,071.70
Corporate, SME and other loans .................
65,226.2 3,923.16 86,771.22 2,410.95
6 2,550.23
Gross NPAs....................................... 46,305.5
5 2,910.20 1,665.49
Net NPAs........................................... 1,791.30
3,427.3
6

2,737.5
5

Non Accrual Policy

When an asset is classified as non-performing, interest accrual thereon is stopped and the unrealized interest is reversed by a
debit to our profit and loss account. In accordance with RBI guidelines, interest realized on NPAs may be credited as income,
provided that the interest does not relate to additional credit facilities sanctioned to the borrower. The RBI has also
stipulated that in the absence of a clear agreement between us and the borrower for the purpose of appropriating recoveries
in NPAs (i.e. towards principal or interest due), banks should adopt an accounting principle and exercise the right of
appropriation of recoveries in a uniform and consistent manner. In the case of NPAs where recoveries are effected, our policy
is to appropriate the same against interest. If any of a borrower's loans are classified as an NPA, all loans to such borrower are
classified as NPAs.

For more information on the recognition and provisioning of NPAs, see "Management's Discussion and Analysis of
Financial Condition and Results of Operations - Critical Accounting Policies - Advances".

Policy for making Provisions for Non-Performing Assets

The RBI policy on provisioning for NPAs is described below.

Substandard assets...................................... 10% of the amount outstanding

Doubtful assets ........................................... Doubtful-I — 100% of the unsecured portion and 20% of the secured portion
Doubtful-II — 100% of the unsecured portion and 30% of the secured portion
Doubtful-III — 100% of the unsecured portion and 100% of the secured portion
Loss assets .................................................. 100% to be provided or written-off.

We follow the policy on NPA provisioning prescribed by the RBI.

Floating provisions

We do not carry any floating provision in our books.

Provisions on standard loans

In accordance with the RBI guidelines, the general provision on standard assets has been made at 0.40% of the outstanding
amount on a portfolio basis except in the case of direct advances to agriculture and SME sectors, where the provision has been
made at 0.25% of the outstanding amount.

NPA Strategy

We have utilized the SARFAESI Act to enforce our security charged to us in case of defaulting borrowers as well to take
appropriate portfolio intervention such as the sale of non-performing loans to specialized asset reconstruction companies. We
have also restructured loans to customers who have faced cash flow problems causing delay or default in servicing their loan
obligations.

Analysis of Non-Performing Loans by Industry Sector

As of March 31,

2008 2009

(in Rs. millions, except percentages)

% of
Gross
NPA to % of Gross
Gross NPA to Gross

Gross Loans NPA Advance Gross Loans NPA Advance

Agriculture................................................ 10,434 304.4 2.92 23,216.00 336.70 1.45

SSI............................................................. 2,840 31.8 1.12 2,758.70 7.20 0.26
Other Priority Sector................................. 36,570 300.20 0.82 29,713.20 642.30 2.16
Total Priority Sector............................... 49,845 636.4 1.28 55,687.90 986.20 1.77

Large Industries ........................................ 22,586 1,542.6 6.83 32,173.50 250.00 0.78

Medium Industries.................................... 2,199 8.4 0.38 1,653.80 93.70 5.67
Trade and Others ..................................... 52,543 1,735.7 3.30 68,950.10 1,220.30 1.77
Total Non-Priority Sector ...................... 77,328 3,286.7 4.25 102,777.40 1,564.00 1.52

NPAs Among Public Sector ................... 1,793 0.00 0.00 0.00 0.00 0.00
Grand Total............................................. 128,966.00 393.1 3.04 158,465.30 2,550.20 1.61

Restructuring of Debt

In case of restructured or rescheduled accounts we make provisions for the sacrifice against erosion diminution in fair value
of restructured loans, in accordance with the general framework of restructuring of advances issued by the RBI
pursuant to its circular dated August 27, 2008 and subsequently modified pursuant to its circular dated April 9, 2009.

The erosion in fair value of advances is computed as difference between the fair values of the loan before and after
restructuring.

The fair value of the loan before restructuring is computed as the present value of cash flows representing the interest at the
existing rate charged on the advance before restructuring and the principal, discounted at a rate equal to our BPLR as on the
date of restructuring plus the appropriate term premium and credit risk premium for the borrower category on the date of
restructuring.

The fair value of the loan after restructuring is computed as the present value of cash flows representing the interest at the
rate charged on the advance on restructuring and the principal, discounted at a rate equal to our BPLR as of the date of
restructuring plus the appropriate term premium and credit risk premium for the borrower category on the date of
restructuring.

The restructured accounts have been treated as standard where restructuring has been implemented during the year.
 As on March 31, 2009 As on June 30, 2009
Particulars No. No.

(in Rs. millions, except percentages)

Restructured Loans (Net)...................................... 126 382.4 129 757.2

Advances ............................................................... 157,706.4 164,515.7
% Restructured Loans ........................................... 0.24% 0.46%

Provisions for NPAs

The following table sets forth, for the periods indicated, movements in our provisions against NPAs:

For the three months

For the year ended March 31, ended June 30,
Particulars 2007 2008 2009 2009

(in Rs. millions, except percentages)

Consumer finance credit ....................................... 64,834.26 72,619.69 71,274.00 72,786.92

Corporate credit..................................................... 46,007.74 55,333.38 86,432.36 91,728.80
NPA Provisions:
Total NPA provisions at the beginning of the 738.6 689.8 1,012.9 759
period.....................................................................

Additions during the period .................................. 477.2 530.4 1,379.6 172.1

Reductions during the period on account of 526.0 207.3 1,633.6 185.6
recovery and write-offs .........................................

Total NPA provisions at the end of the period. 689.8 1,012.9 759 745.5

The following table sets forth, for the periods indicated, the allocation of the total provisions held by us.

As of March 31, As of June 30,

Particulars 2007 2008 2009 2009

(in Rs. millions)

Consumer finance credit.................... 392.0 447.18 420.08 402.57
Corporate credit ................................. 297.8 565.76 338.89 342.88
Total provisions ............................... 689.8 1012.94 758.97 745.45
 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS

You should read the following discussion of our financial condition and results of operations together with the financial
statements included elsewhere in this Preliminary Placement Document, along with the section "Selected Statistical
Information", which presents important statistical information about our business. Our actual results and the timing of
selected events could differ materially from those anticipated in forward-looking statements contained in this discussion as a
result of various factors, including those set forth under "Risk Factors" and elsewhere in this Preliminary Placement
Document. See the section "Forward Looking Statements". The following discussion is based on our financial statements,
which have been prepared in accordance with Indian GAAP and RBI guidelines. Indian GAAP differs in certain significant
respects from U.S. GAAP and IFRS.

Our fiscal year ends on March 31 of each year, so all references to a particular "fiscal year" are to the 12-month period
ended March 31 of that fiscal year. For a description of our business, see the section "Our Business".

Overview

We are a private sector bank in India and provide a wide range of banking and financial products and services to
individuals, large companies and small businesses. Our activities are organized into the following business units:
 Consumer Banking;
 Corporate and Commercial Banking;
 Global Markets; and 
Transaction Banking.

We seek to provide a wide range of products and services aimed at different kinds of consumers and companies. We serve
certain under-served groups, such as small to medium-sized companies and co-operative banks and offer fee- based products
and services, such as remittance services, to consumers. In addition, we seek to obtain new customer relationships through
our existing customers or our position as market participants. Our leadership position in vehicle financing allows us to
provide financing to dealers and suppliers of vehicle manufacturers and our appointments as clearing and settlement bankers
to various exchanges allows us to provide guarantees and depository account services to brokers and capital market
investors. Our emphasis remains on enhancing our consumer banking franchise, including retail banking and vehicle
financing, while we continue to grow our global markets and transaction banking business units.

We were established in 1994 as part of the select group of nine "New Private Sector Banks" licensed by the Government of
India as part of its programme of economic liberalization. As of March 31, 2009, we were one of seven "New Private Sector
Banks" operating in India.

Ashok Leyland Finance Limited, a subsidiary of Ashok Leyland Limited, which is part of the Hinduja Group, merged with
us on June 11, 2004, effective retrospectively from April 1, 2003 and, following the merger, our net worth increased from
Rs. 6,022.61 million as of March 31, 2003 to Rs. 8,004.13 million as of March 31, 2004. The merger gave us a much larger
branch network with wider geographic coverage and changed our asset portfolio with the addition of higher volumes of
relatively high-yielding retail loan assets (principally vehicle loans). In addition, we also gained a pool of experienced and
skilled staff, as well as the information technology and other systems and infrastructure to enable us to handle high volumes
of smaller sized loan assets. Previously, IndusInd Enterprise & Finance Limited, a non-banking finance company and one of
our promoters, merged with us on June 5, 2003, effective retrospectively from April 1, 2002, increasing our capital base by Rs.
602.44 million.

In February 2008, we inducted several new members of our senior management team, including our Managing Director &
Chief Executive Officer and other members who joined us from a competitor foreign bank in India. The team formulated our
new strategy, which emphasized restructuring our balance sheet and business mix, improving operating efficiency, leveraging
our distribution network and resources, deepening existing customer relationships, increasing our hiring of employees to
support our strategy and expansion and improving our brand. To achieve these goals, the
following measures were initiated:
 A thrust on fee income, including a focus on wealth management and third party product distribution, on our
banking services to small and medium enterprises and on schematic lending and our transaction banking business
unit.
 Restructuring of our business units into corporate and commercial banking, consumer banking, global markets
and transaction banking in order to achieve a customer and product focus. Our business units are supported by
operations units and support services functions.
 A strong initiative to mobilize NRI business flows, especially in wealth management products, by leveraging
our alliances with certain banks in the Middle East and the United States and exchange houses in the Middle East,
Singapore and Hong Kong.
Revenue

Our revenue, which is referred to herein and in our financial statements as total income, consists of interest earned and other
income.

Interest earned includes interest on advances, income on investments and interest on balances with the RBI and other inter-
bank funds. Income on investments consists of interest from securities and our other investments. We also earn interest
income from deposits that we keep with other banks. Our investment portfolio consists primarily of Government and state
government securities. We meet SLR requirements through investments in these and other approved securities. We also hold
equity shares, debentures and bonds issued by public sector undertakings and government-controlled companies, commercial
paper and mutual fund units. Our holdings in our subsidiary and our deposits under the Rural Infrastructure Development
Fund scheme are also included under our investments. Our interest income is affected by fluctuations in interest rates as well
as the volume of the activity. Interest rates are highly sensitive to many external factors beyond our control, including growth
rates in the economy, inflation, money supply, the RBI's monetary policies, deregulation of the financial sector in India,
domestic and international economic and political conditions and other factors.

Our other income consists principally of fee-based income, such as commissions, foreign exchange and brokerage income,
net profit on the sale of investments and derivatives, profits or losses on the sale of land, buildings and other assets, net profit
on exchange transactions, income earned from dividends from companies in India and miscellaneous income, which includes
recovery from written-off accounts and incidental charges such as account keeping fees and sundry charges. Fee-based
income includes fees and charges for services in our transactional banking business unit, such as cash management services,
remittance services, documentary credits, letters of credit and issuance of guarantees and service charges and processing
fees on customer accounts. It also includes income from our global markets activities, commissions on sales of products, such
as insurance and mutual funds and commissions on the sale of gold bullion.

Expenditure

Our expenditure consists of interest expended, operating expenses and provisions and contingencies.

Our interest expended consists of the interest paid on deposits and borrowings. Our interest expended is affected by
fluctuations in interest rates, our deposit mix and business volumes. Our non-interest expenditure consists principally of
operating expenses, including expenses for wages and employee benefits, lease rentals and related expenses such as electricity
charges paid on premises, depreciation on fixed assets, insurance, repairs and maintenance, printing and stationery,
advertising and publicity, directors' and professional fees and expenses, postage and telecommunications and other expenses.
Our provisioning for non-performing assets, depreciation and provision on investments and income tax and other taxes are
included in provisions and contingencies.

Financial Performance Indicators

Besides our financial statements, we use a variety of indicators to measure our financial performance. These indicators are
presented in tables in the section "Selected Statistical Information". Our net interest income represents our total interest
income over total interest expense. Net interest margin for any given period represents the ratio of net interest income to the
average of total assets. We calculate (1) the yield on the average of advances, (2) the yield on the average of investments, (3)
the cost of the average of deposits and (4) the cost of the average of borrowings. Our cost of funds is our interest expended
divided by our average interest bearing liabilities, expressed as a percentage. For the purposes of these averages and ratios
alone, the interest cost of the unsecured subordinated bonds that we issued for Tier II capital adequacy purposes is included
in our cost of interest bearing liabilities. In our financial statements, these bonds are disclosed as "other liabilities and
provisions" in the balance sheet and their interest cost is included under "Interest - others including interest on subordinate debts
and Upper Tier II bonds" in the profit and loss account.

Factors affecting our Financial Results

The majority of our income comprises interest earned on loans to large companies, mid-market companies and small
businesses, as well as consumer finance loans, primarily for the purchase of vehicles in India. Our major expenses comprise
interest expense on deposits and short-term borrowings and loans from banks and financial institutions.

Our financial results will be influenced by macroeconomic factors, including growth in the Indian economy, and, in
particular, the continued growth of the transportation sector. We are also vulnerable to interest rate volatility and changes in
banking regulation. Our business is subject to various other risks and uncertainties, including those discussed in the section
"Risk Factors".
The following is a discussion of certain factors that have had, and we expect will continue to have, a significant effect
on our financial results.

Availability of cost-effective funding sources

The ratio of our current and savings account deposits to total deposits, expressed as a percentage, (or CASA percentage) for
the fiscal years ended March 31, 2007, March 31, 2008 and March 31, 2009 were 14.92%, 15.70% and 19.24%, respectively.
According to a 2008 RBI report entitled "Report on Trend and Progress of Banking in India", the average CASA percentage for
the New Private Sector Banks for the fiscal years ended March 31, 2006, March 31, 2007 and March 31, 2008 was 33.55%,
30.19% and 34.24%, respectively. We are relatively dependent on corporate term deposits and inter-bank funding.

Our ability to meet demand for new loans will depend on our ability to broadbase our deposit profile and our continued access
to term deposits from the retail, corporate and inter-bank market. Our debt service costs and cost of funds depend on many
external factors, including developments in the Indian credit markets and, in particular, interest rate movements and the
existence of adequate liquidity in the inter-bank markets. Internal factors that will impact our cost of funds include changes
in our credit ratings, available credit limits and our ability to mobilize low-cost deposits.

Impact of interest rate volatility

Our results of operations depend to a great extent on our net interest income. Net interest income represents the excess of
interest earned from interest-bearing assets (performing loans and investments) over the interest paid on customer deposits
and borrowings. Changes in interest rates affect the interest rates we charge on our interest-earning assets and that we pay on
our interest-bearing liabilities. Since the maturities of our loans and investments tend to be more long- term than our
deposits, such interest rates may change differently and decrease our net interest income. Interest rates are highly sensitive to
many external factors beyond our control, including growth rates in the economy, inflation, money supply, the RBI's
monetary policies, deregulation of the financial sector in India, domestic and international economic and political conditions
and other factors. For further information, see the section "Selected Statistical Information - Asset Liability Gap".

Ability to achieve operating efficiencies

We use several methods to achieve operating efficiencies, such as centralizing our processing (including with respect to retail
branch processing, cheque clearing, depository, trade finance, taxation-related activities and procurement), rationalizing
infrastructure and technology expenditure, tracking and improving cost efficiency, streamlining documentation and
workflow through technology and right-skilling our workforce through optimal recruitment and training. On the other hand,
our operating costs continue to rise owing to our growth strategy as we widen our branch network and hire more employees.
Our ability to sustain our growth strategy and increase the yield on our investments will depend on our continued success at
achieving reducing these costs and achieving operating efficiencies.

Ability to manage NPAs and risk

Our net NPAs were Rs. 2,910.2 million, Rs. 1,791.3 million and Rs. 1,665.5 million as of March 31, 2008, March 31, 2009
and June 30, 2009, respectively, while our gross NPAs were Rs. 3,923.1 million, Rs. 2,550.2 million and Rs. 2,410.9
million, respectively, for the same periods. Our net NPA ratio was 2.27%, 1.14% and 1.01% as of March 31, 2008, March
31, 2009 and June 30, 2009, respectively, while our gross NPA ratio was 3.04%, 1.61% and 1.46% as of the same dates.
Such decreases have significantly improved our financial performance over the aforementioned periods. A significant factor
in the recent reduction in the gross NPA ratio for the fiscal year ended March 31, 2009 compared with the fiscal year ended
March 31, 2008 was the result of recovery from a large delinquent corporate account. We have enterprise-wide risk
management systems to manage credit risk, market risk and operational risk. We monitor credit risk at the transaction level as
well as the portfolio level.

Our ability to continue to reduce or contain the level of our gross and net NPA ratios depend on a number of factors beyond
our control, such as increased competition, depressed economic conditions, including with respect to specific industries to
which we are exposed, decreases in agricultural production, decline in commodity prices, adverse fluctuations in interest
and exchange rates or adverse changes in Indian policies, laws or regulations and also on our ability to manage our risk.

Economic growth in India and its impact on our business

Our financial condition and results of operations are influenced by the general economic conditions prevailing in India. GDP
growth (at factor cost) in India was 9.7%, 9.0% and 6.7% for the years ended March 31, 2007, March 31, 2008 and March
31, 2009, respectively, according to the Central Statistical Organisation.
In its Annual Policy Statement for the Year 2009-10 dated as of April 21, 2009, the RBI stated that the Indian economy
experienced a significant slowdown in the fiscal year ended March 31, 2009 in comparison with the robust growth
performance in the preceding three years, largely due to the effects of the global financial crisis. The RBI also stated that the
equity markets weakened due to, among other factors, the slowdown in industrial growth, the decline in corporate
profitability and diminished expectations for the economy and markets going forward and noted that the financial sector
remained healthy, having had limited exposure to tainted assets and limited off-balance sheet activities.

The growth prospects of our business, including the quality of our assets and our ability to grow our asset portfolio and
implement our strategy, are influenced by the growth rate of the economy as a whole. The level of credit disbursed, recovery
of loans and demand for vehicles are all affected by these factors. Any slowdown in the growth of the economy, coupled with
inflationary pressures, could adversely impact our business.

Regulatory policies for Indian banks

Our operations are regulated by the RBI. The Government, through the RBI, is actively involved in the management of the
Indian economy and in implementing their social policies. Accordingly, we are subject to changes in reserve requirements
(designed to maintain the strength of the Indian banking sector but also to reduce liquidity and therefore the availability of
credit) and requirements to lend to certain priority sectors and requirements discouraging lending in certain specified sectors,
such as real estate, commodities and capital markets. See the section "Supervision, Regulation and Government Approvals".

RBI cash and liquidity requirements

Commercial banks in India have been subject to two kinds of statutory reserve requirements: Cash Reserve Ratio ("CRR")
and Statutory Liquidity Ratio ("SLR"). Under these requirements, all banks are required to maintain a certain stipulated
proportion of their net demand and time liabilities ("NDTL") in the form of cash, gold, balances with RBI, current account
balances with other banks and unencumbered Government and/or other approved securities. The basic objective of the CRR
and the SLR requirements is to ensure that banks hold sufficient liquid resources to meet any unexpected contingencies.
Currently, the RBI requires a CRR of 5% of our NDTL. Pursuant to a recent amendment to the RBI Act, 1934, the RBI is
vested with the power to prescribe CRR without any ceiling limits. In addition, the RBI is no longer obliged to pay interest
on CRR. These recent amendments on the prescription of CRR have adversely impacted our profitability.

The RBI is empowered to increase the SLR up to 40% of a bank's NDTL, and has the discretion to fix the floor and ceiling
levels of the SLR. Currently, the RBI requires an SLR of 24%. Although the SLR is intended as a measure to maintain the
liquidity of banks, it has adverse implications for the banks' ability to expand credit. Changes in interest rates also impact the
valuation of our SLR portfolio and thereby affect our profitability.

RBI norms relating to general provisioning

The RBI sets prudential norms in respect of income recognition, asset classification and provisioning. The general
provisioning requirements for standard assets have currently been stipulated at 0.40%, except for advances to the agricultural
sector and the small and medium enterprises sector, which are to be provisioned at 0.25%. Any changes in the regulatory
framework regarding provisioning for NPAs could adversely affect our profitability and consequently our net worth.

Critical Accounting Policies

Our financial statements are prepared in accordance with Indian GAAP, and by following the going concern concept on a
historical cost convention and conforming to the statutory provisions and practices within the banking industry in India. The
presentation of financial statements in conformity with Indian GAAP requires estimates and assumptions to be made that
affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of
revenues and expenses during the years ended on the date of the financial statements. Differences between the actual results
and estimates are recognized in the year in which the results are known or have materialized. Our significant accounting
policies are more fully described under the notes to our financial statements in the section
"Financial Statements". The following are our critical accounting policies, in accordance with RBI guidelines:

Investments

In accordance with RBI guidelines, we classify our investment portfolio into the following three categories, at the time
of acquisition:

 "Held to maturity" - Securities acquired with the intention to hold till maturity.
 "Held for trading" - Securities acquired with the intention to trade.
  "Available for sale" - Securities which do not fall within the above two categories are classified as available
for sale.

Groups of investments:

In our balance sheet, we divide our investments into six groups: Government securities, other approved securities, shares,
debentures and bonds, investments in subsidiaries/joint ventures and other investments.

Valuation of investments:

 "Held to maturity" - These investments are carried at their acquisition cost. The amortized amount is deducted
from interest earned under the category "income on investments". The amortized amount is deducted from "interest
earned - income on investments." The book value of the investment is reduced to the extent of the amount amortized
during the relevant accounting period. Diminution other than temporary, if any, in the value of such investments is
determined and provided for on each investment individually.

 "Held for trading" - Each investment in this category is revalued at the market price or fair value (marked-to-
market) and the resultant depreciation of each investment in this category is recognized in our profit and loss
account. Appreciation, if any, is ignored. The market value of government securities is determined on the basis of
the prices or yield-to-maturity published by RBI or the prices or yield-to-maturity periodically declared by Primary
Dealers Association of India jointly with Fixed Income Money Market and Derivatives Association (the
"FIMMDA") for valuation at year-end. In the case of unquoted government securities, the market price or fair value
is determined according to the rates published by the FIMMDA.

 "Available for sale'" - Each investment in this category is revalued at the market price or fair value and the
resultant depreciation of each investment in this category is recognized in our profit and loss account.
Appreciation, if any, is ignored.

 The market value of government securities (excluding treasury bills) is determined on the basis of the price
list published by the RBI or the prices periodically declared by the Primary Dealers Association of India jointly
with the FIMMDA for valuation at year-end. In the case of unquoted government securities, the market price or fair
value is determined as per the rates published by the FIMMDA.

 The market value of other debt securities is determined based on the yield curve and spreads provided by the
FIMMDA.

 Equity shares are valued at cost or the closing quotes on a recognized stock exchange, whichever is lower.

 Treasury bills are valued at carrying cost, which includes a discount amortized over the period to maturity.

 Units of mutual funds are valued at the lower of cost and net asset value provided by the respective mutual
funds.

 Investments in equity shares originally held as long-term investments by IndusInd Enterprise & Finance
Limited and Ashok Leyland Finance Limited prior to their mergers with us are valued at cost. Provisions towards
diminution in the value of such long term investments are made only if the diminution in value is not temporary in
the opinion of management.

 Broken period interest on debt instruments is treated as a revenue item. Brokerage, commission and any other
costs pertaining to investments paid at the time of acquisition are charged to revenue.

 Repurchase ("repo") and reverse repurchase ("reverse repo") transactions are considered and accounted for on
an outright sale and purchase basis. Repo interest or expenditure is accounted for based on RBI guidelines.
However, depreciation in the value of the securities, if any, compared to their original book value in the case of
reverse repo transactions is recognized in the profit and loss account.

 Security receipts are valued at the lower of redemption value of the security or the net asset value obtained
from the securitization or reconstruction company.

 If provisions created on account of depreciation in the "available for sale" or "held for trading" categories are
found to be in excess of the required amount in any year, the excess is credited to the profit and loss account and an
equivalent amount (net of taxes, if any, and net of transfer to statutory reserves as applicable to such excess) is
appropriated to the investment reserve account in Schedule II - Reserves & Surplus under the head
 "Revenue & Other Reserves". The balance in the investment reserve account is included under Tier II Capital
within the overall ceiling of 1.25% of total risk weighted assets prescribed for general provisions and loss reserves
by the RBI. The balance in the investment reserve account is used to meet provisions on account of depreciation in
the "available for sale" and "held for trading" categories by transferring an equivalent amount to the profit and loss
account as and when required.

Derivatives

Derivatives contracts are designated as hedging and trading and accounted for as follows:

 The hedging contracts comprise interest rate swaps and currency options undertaken to hedge interest rate risk
on certain assets and liabilities. The net interest receivable /payable is accounted on an accrual basis over the
life of the swaps. However, where the hedge is designated with an asset or liability that is carried at market value or
the lower of cost or market value in the financial statements, then the hedging is also marked-to- market with the
resulting gain or loss recorded as an adjustment to the market value of designated assets or liabilities.

 The trading contracts comprise proprietary interest rate swaps. The gain/loss arising on unwinding or
termination of the contracts is accounted for in our profit and loss account. Trading contracts outstanding as of date
of the balance sheet are valued at their fair value and resulting gains /losses are recognized in the profit and loss
account.

 Any premium paid and received on any currency option is accounted for up-front in the profit and loss
account, as all options are undertaken on a back-to-back basis.

 Provisioning of overdue customer receivables on derivative contracts, if any, are made according to RBI
guidelines.

Advances

According to RBI guidelines, advances are classified into standard, sub-standard, doubtful and loss assets after considering
subsequent recoveries to date.

 Provisioning for NPAs is made in conformity with the RBI guidelines.

 In accordance with RBI guidelines, the general provisioning on standard assets is set at 0.40% of the
outstanding amount on a portfolio basis, except for direct advances to agriculture and small and medium
enterprises, where the general provisioning is set at 0.25% of the outstanding amount.

 Advances are disclosed in the balance sheet, net of provisions and interest suspended for non-performing
advances. Provision made against standard assets is included in "Other Liabilities and Provisions".

 Advances include our participation in and contributions to pass through certificates and the asset-backed
assignment of loan assets of other banks/financial institutions where we have participated on a risk-sharing basis.

 Advances exclude derecognized securitized advances, inter-bank participation and bills rediscounted.

 Amounts recovered against bad debts written off in earlier years and provisions no longer considered
necessary in the context of changes in the status of the borrower are written back or recognized in the profit
and loss account to the extent that such write-offs or provisions were charged to the profit and loss account.

Restructured or rescheduled accounts

For restructured accounts, provisions are made for the sacrifice against erosion or diminution in the fair value of the
restructured loans, in accordance with the general framework of restructuring of advances issued by RBI by its circular dated
August 27, 2008 and subsequently modified by its circular dated April 9, 2009.

The erosion in fair value of the advances is computed as the difference between the fair value of the loan before and after
restructuring.

The fair value of the loan before restructuring is computed as the present value of cash flows representing the interest at the
existing rate charged on the advance before restructuring and the principal, discounted at a rate equal to our
benchmark prime lending rate as of the date of restructuring plus the appropriate term premium and credit risk
premium for the borrower category on the date of restructuring.

The fair value of the loan after restructuring is computed as the present value of cash flows representing the interest at the
rate charged on the advance on restructuring and the principal, discounted at a rate equal to our benchmark prime lending
rate as of the date of restructuring plus the appropriate term premium and credit risk premium for the borrower category on the
date of restructuring.

The restructured accounts have been treated as standard where the restructuring package has been implemented during the
year.

Fixed assets

Fixed assets (including assets given on operating leases) have been stated at cost less accumulated depreciation and
impairment, if any, except in the case of premises, which are based on the values determined by approved valuers. Cost
includes incidental expenditure incurred on the assets before they are ready for intended use. The carrying amount of fixed
assets is reviewed at each balance sheet date if there are any indications of impairment based on internal /external factors.

Any appreciation on revaluation is credited to the revaluation reserve. Any depreciation on revaluation is adjusted against the
revaluation reserve.

Depreciation has been provided for pro rata for the period of use, using the straight line method and the rates prescribed under
Schedule XIV to the Companies Act, 1956, except in respect of computers, which are depreciated at the rate of 33.33%.
These rates are reflective of our management's estimate of the useful life of the relevant fixed assets.

Revenue recognition

 Income by way of interest and discount on performing assets is recognized on an accrual basis, and for NPAs,
is accounted for on realization.

 Interest on Government securities, debentures and other fixed-income securities is recognized on an accrual
basis.

 Income on discounted instruments is recognized over the tenure of the instrument on a straight-line basis.

 Dividend income is accounted for on an actual basis when the right to receive payment is established.

 Commissions (except for commissions on deferred payment guarantees and insurance commissions, which are
recognized on an accrual basis), exchange and brokerage are recognized on realization.

 Lease income and service charges earned by our consumer finance division are recognized on an accrual
basis.

 Income from the distribution of life insurance products is recognized, proportionately, on the basis of the
business booked.

Summary of Our Financial Results

The following sets forth a summary of our financial results containing significant items of our income and expenditure based
on our audited unconsolidated financial results annexed to the auditors' report as of and for the fiscal years ended March 31,
2007, March 31, 2008 and March 31, 2009 and the unaudited unconsolidated financial results for the three
months ended June 30, 2009 and for the three months ended June 30, 2008 as set out in "Financial Statements":
Statement of Profits and Losses

Fiscal year ended March 31, Three months ended June 30,
2007 2008 2009 2008 2009

(Rs. millions)
Income
Interest earned ........................................... 14,601.32 18,806.61 23,094.74 5,183.25 6,288.25
Other income ............................................. 2,842.51 2,975.78 4,562.54 649.11 1,727.52
Total income............................................. 17,443.83 21,782.39 27,657.28 5,832.36 8,015.77
Expenditure
Interest expended....................................... 12,288.47 15,798.60 18,504.41 4,253.82 4,614.60
Operating expenses (excluding
depreciation) .............................................. 3,098.64 3,620.34 5,028.66 1,013.46 1,549.23
Depreciation on our property .................... 340.92 401.59 441.68 106.31 108.88
Provisions and contingencies (excluding
provision for tax) ....................................... 642.0 819.1 1,407.6 153.9 343.3
Tax provision (income tax/wealth
tax/deferred tax) ........................................ 391.5 392.3 791.5 113.8 534.8
Total expenditure .................................... 16,761.66 21,031.85 26,173.89 5,641.34 7,150.81
Net profit .................................................. 682.17 750.54 1,483.39 191.02 864.96

Three months ended June 30, 2009 compared to the three months ended June 30, 2008

Income

Our total income increased by 37.44% from Rs. 5,832.36 million to Rs. 8,015.77 million. The most significant item of our
income is total income from loans and advances. In the current period, our net interest margin (annualized) increased from
1.68% to 2.60%, in each case after adjusting amortization for "held to maturity" investments.

Interest earned

Three months ended June 30,

2008 20
09
(Rs.
Interest/discount on advances/bills ........................................................................... 3,920.33 millio
Income on investments.............................................................................................. 1,203.11 ns) 4,916.
Income on balances with RBI and other inter-bank funds ....................................... 20.30 68
Others ........................................................................................................................ 39.52 1,315.
Total .......................................................................................................................... 5,183.25 40
32
.0
5
24
.1
1
6,288.
24

Our interest income increased by 21.32% from Rs. 5,183.25 million to Rs. 6,288.24 million, primarily due to a 23.99%
increase in loan assets. This was because of an increase in our business volumes as a result of an increase in demand for our
vehicle loans and loans to corporate customers and implementation of our growth strategy.

Our income on investments increased due to an increase in the volume of investments and yield.

Income on balances with the RBI and other inter-bank funds increased by 57.88% from Rs. 20.30 million to Rs. 32.05 million
as a result of an increase in funds placed with other banks.

Other income

Our other income increased by 166.14% from Rs. 649.11 million to Rs. 1,727.52 million. The components of our other
income are:

Commissions, exchange and brokerage

Income from commissions and exchange and brokerage fees increased by 23.92% from Rs. 297.56 million to Rs. 368.74
million primarily due to an increase in income from distribution of third party products, and an increase in bank account
service charges.
Profit on sales of investments

Profit on sales of investments (net)/derivatives increased from Rs. (50.99) million to Rs. 867.93 million, as a result of
favourable market conditions for certain investments that we held.
Profit on exchange transactions

Profit on exchange transactions (net) increased by 45.53% from Rs. 119.46 million to Rs. 173.85 million due to higher volumes.

Miscellaneous and other income

Miscellaneous income and dividend income increased by 16.39% from Rs. 345.96 million to Rs. 402.65 million. Miscellaneous
income included processing fees and other service charges which increased from Rs. 218.0 million to Rs. 335.5 million.

Expenditure

Interest expense

Our interest expended increased by 8.48% from Rs. 4,253.82 million to Rs. 4,614.60 million. This increase was due to an increase
in our total deposits and borrowings from approximately Rs. 210.29 billion to approximately Rs. 239.80 billion, reflecting
increased deposits and borrowings to fund the growth of our business. In addition, this increase also reflected an increase in
interest rates in India.

Interest on deposits

Interest on deposits has increased by 10.53% from Rs. 3,607.49 million to Rs. 3,987.67 million. This increase was due to an
increase in our deposits base from approximately Rs. 181.16 billion to Rs. 216.39 billion. The increase was also partially due to a
rise in interest rates in India.

IndusInd Products & Services, defining their meanings-

IndusInd Bank provides multi-channel facilities, which comprise of ATMs, Net Banking, Mobile Banking,
Phone Banking, Multi-city Banking and International Debit Cards. It is also credited for being one of the
first banks to become a part of RBI’s Real Time Gross Settlement (RTGS) system. Enlisting the help of
KPMG, IndusInd Bank has adopted an enterprise-wide risk management system, including global best
practices in the area of Risk Management.
Success cannot be achieved easily in this ever changing and highly competitive world. Latest
technology has to be adopted and made a very good use of- if one would like to survive through ages,
and not just for a few seconds. Internet banking, sometimes called online banking, is an outgrowth
of PC banking. Internet banking uses the Internet as the delivery channel by which to conduct banking
activity, for example, transferring funds, paying bills, viewing checking and savings account balances,
paying mortgages, and purchasing financial instruments and certificates of deposit. An Internet
banking customer accesses his or her accounts from a browser— software that runs Internet banking
programs resident on the bank’s World Wide Web server, not on the user’s PC. NetBanker defines a “
true Internet bank” as one that provides account balances and some transactional capabilities to retail
customers over the World Wide Web. Internet banks are also known as virtual, cyber, net, interactive,
or web banks.

To date, more banks have established an advertising presence on the Internet— primarily in the form
of informational or interactive web sites—than have created transactional web sites. However, a
number of Banks that do not yet offer transactional Internet banking services have indicated on their
web sites that
Although Internet banks offer many of the same services as do traditional brick-and-mortar Banks,
analysts view Internet banking as a means of retaining increasingly sophisticated customers, of
developing a new customer base, and of capturing a greater share of depositor assets. A typical
Internet bank site specifies the types of transactions offered and provides information about account
security.

Because Internet banks generally have lower operational and transactional costs than do traditional
brick-and-mortar banks, they are often able to offer low-cost checking and high-yield Certificates of
deposit. Internet banking is not limited to a physical site;
some Internet banks exist without physical branches, for example, Telebank (Arlington, Virginia) and
Banknet (UK). Further, in some cases, web banks are not restricted to conducting transactions within
national borders and have the ability to make transactions involving large amounts of assets
instantaneously. According to industry analysts, electronic banking provides a variety of attractive
possibilities for remote account access, including:
• Availability of inquiry and transaction services around the clock;
• worldwide connectivity;
• Easy access to transaction data, both recent and historical; and
• “ Direct customer control of international movement of funds without intermediation of
financial institutions in
• customer’s jurisdiction.
Now opening up of a new account is as easy as pressing a few digits on the keyboard of your
computer. On the similar plane Mobile Phone has also been taken up for providing easy access to the
bank. Mobile banking is not an exceptional case, as other sources of communication have also been
made use of to the greatest extent. Telephone banking is one such elective for you. It may depend
upon a person where he spends his most time in, and that maybe easily turned into a way out to keep
in touch with the bank. At IndusInd it is believed that by providing world class and honest service it
would not be unwise to expect surging number of loyal customers.

Mobile banking can offer services such as the following:

Account Information

1. Mini-statements and checking of account history

2. Alerts on account activity or passing of set thresholds

3. Monitoring of term deposits

4. Access to loan statements

5. Access to card statements

6. Mutual Funds / equity statements

7. Insurance policy management

8. Pension plan management

9. Status on cheque, stop payment on cheque

10. Ordering check books

11. Balance checking in the account

12. Recent transactions

13. Due date of payment (functionality for stop, change and deleting of payments)

14. PIN provision, Change of PIN and reminder over the Internet

15. Blocking of (lost, stolen) cards

Payments, Deposits, Withdrawals, and Transfers.

A credit/Debit/Master card is part of a system of payments named after the small plastic card

issued to users of the system. It is a card entitling its holder to buy goods and services based on the

holder's promise to pay for these goods and services. The issuer of the card grants a line of credit to

the consumer (or the user) from which the user can borrow money for payment to a merchant or as

a cash advance to the user. Usage of the term "credit card" to imply a credit card account is

a metonym.

A credit card is different from a charge card, where a charge card requires the balance to be paid in

full each month. In contrast, credit cards allow the consumers to 'revolve' their balance, at the cost of

having interest charged. Most credit cards are issued by local banks or credit unions, and are the

shape and size specified by the ISO/IEC 7810 standard as ID-1. This is defined as 85.60 × 53.98 mm

(33/8 × 21/8 in) in size.

The other products and services offered by the IndusInd bank include:

Personal Banking
• Accounts: An option to opening up an account in the bank, with customer’s own ideas and
preferences. Several savings schemes are being run and several options are currently being
provided. It would completely depend upon a customer what he/she wants from the bank.
• Deposits:

Depository Services:

In line with its commitment of providing highly evolved products and prompt services, the Bank
provides depository services to its clients. IndusInd Bank is one of the first banks to offer
depository products to its customers, which commenced with the enactment of Depositories Act
1996, in India. The Bank got registered as a Depository Participant (DP) of National Securities
Depository Limited and started offering a range of Depository Services since January, 1997.

IndusInd Bank offers the following depository products/ services

Basic Services
> Demat accounts
> Dematerialization
> Rematerialization
> Transfer of securities
> Pledge services
Internet Based Services
> On-line instructions through SPEED-e
> Statement through e-mail
> Freezing of accounts
IndusInd Bank depository services provides you a secure and convenient alternative for holding
your securities. The depository operations enable you to convert your physical securities to
electronic format. When you choose this option, you retain control of the securities but eliminate
problems like loss of certificate, mutilation, forgery and postal delays.
IndusInd Bank as a DP shall provide you one stop electronic age solution to your Capital Market
Instruments thereby making your capital investment a lot easier and convenient. For this you just
need to open a depository account with any of the branches of IndusInd Bank and thereafter you
may operate your account and receive / give delivery for all buy / sell transactions done, merely
by giving instructions to IndusInd Bank accordingly.
Indus Collect

Indus Collect suite is an exclusive cash management offering for IndusInd Bank customers.
Bank’s extended reach and technology will help one to make realisation of collections
faster, swifter and economical.

Bank offers collection of customer’s cheques at over 1000 locations through IndusInd Bank
and Partner banks.

The offer is backed up with strong service, technology and centralised query handling desk.

Indus Direct
Indus Direct is a local cheque collection facility for cheques deposited at “payable at”
location, whether deposited for payments at IndusInd Bank or our partner bank location. The
facility covers 250 locations for collection, including IndusInd Bank locations.

Indus Direct gives an option to directly deposit cheques at the branch in case of IndusInd
Bank location payable cheque or get it picked up in case of partner bank location.

Advantages
• Realisation of cheques within 3 working days whether deposited on IndusInd Bank or
partner bank location
• Reach of 250 locations, including IndusInd Bank locations
• Guaranteed credit, allows you flexibility of planning for the fund utilisation
• Control over transactions, email based reports with complete information on the
collections
• Customised deposit slips to capture transaction information, as required by you
• Option of cheque pick up at IndusInd Bank locations

Indus Express
Indus Express, gives access to outstation cheque collection for cheques deposited at
IndusInd Bank locations, but not payable at the same IndusInd Bank locations.

The offer provides you an option of either depositing cheques directly at the branch counter
or get it picked up from your address.

Advantages
• Realization of outstation cheques within 6 working days, if deposited on any
IndusInd Bank location
• Faster credit within 5 working days, on collection between metro locations and state
capitals
• Reach of 136 IndusInd Bank locations
• Guaranteed credit, allows you flexibility of planning for the fund utilisation
• Control over transactions, email based reports with complete information on the
 collections
• No collection charge, only nominal courier cost is charged
Cheques picked up for collection at non IndusInd Bank location but payable at IndusInd Bank
location will be treated as Indus Express, from the date of processing at the IndusInd Bank
processing centre.

Indus Prompt
Indus Prompt is an outstation cheque collection offer for cheques deposited at IndusInd
Bank locations but payable at any of our partner bank location.

Advantages
• Realization of outstation cheques within 8 to 15 working days, if deposited on any
IndusInd Bank location
• Faster credit on collections at specified locations
• Collection reach, at over 1000 specified locations including IndusInd Bank locations
• Guaranteed credit, allows you flexibility of planning for the fund utilization
• Control over transactions, email based reports with complete information on the
collections
• Nominal collection charge

Cheques picked up at non IndusInd Bank location but payable at other non IndusInd Bank
location will be treated as either Indus Prompt or Indus Anywhere, depending on “payable
at” location.

Indus Anywhere

Indus Anywhere is an outstation cheque collection facility for cheques deposited at IndusInd
Bank location but payable at locations not covered in Indus Prompt or Indus Express.

Advantages
• Active tracking of instruments sent for collection
• Control over transactions, email based reports with complete information on the
collections
• Nominal collection charge
• Cheques deposited at non IndusInd Bank location but not payable at any of the
locations covered by Indus Prompt and Indus Express, will be treated as Indus
Anywhere.

In addition several other such excellent options exists at the bank. Other schemes are:

• Loans: IndusInd Bank offers a range of loan schemes for all your special needs that require
finance.

Features:

> Simple Paperwork

 > Fast Processing

> Calculate your monthly installment on EMI Calculator.

Different kind of loans could be availed upon fulfilling the requisite conditions. Home Loans,
Small business loan, commercial vehicle loan, car loan, two wheeler loan, construction
equipment loan, loan against shares, loan against property, loan against rent receivables, loan
against mutual funds, credit against specific securities etc.
• Cards - Debit Card, Credit Card, Gold Debit Card, Indus Money
• Indus Protect:

IndusInd Bank is offering its Fixed Deposit customers a Health Insurance Cover - Indus Protect.
This is a value added unique facility to all our existing and prospective term deposit holders in the age
group of 90 days to 70 years, to get Health Insurance coverage, without a medical check-up to the
tune of Rs.1 lakh, under Group Health Insurance cover for Term Depositors of our Bank, at
concessional rate.
Benefits:
• Medical Health check exempted /No prior medical reports will be required
• Insurance premium payable under the scheme is at a concession
• Health Insurance coverage is available up to 70 years (Age limit at the time of application is 69)
• Senior Citizens are included
• Paramount Healthcare Management (the most experienced health services provider) or any other
TPA (Third Party Administrator) of choice
• Cash free hospitalization services in over 1400 hospitals across 250+ cities in the country
• Hospitals are included in the network based on stringent evaluation on quality of services and
treatment facilities
• TPA will provide identity cards for customers (to be displayed for getting admitted)
• Simple documentation
• Master Policy with Individual certificates will be provided to customers through IndusInd Bank

Features:

• Hospitalization (Due to Illness or accidental Injury)

• Room and board
• Doctor’s fees
• Intensive Care Unit
• Nursing expenses
• Surgical fees, operating theatre, anesthesia and oxygen and their administration
• Physical therapy
• Drugs and medicines consumed on the premises
• Hospital miscellaneous services (such as laboratory, x-ray, diagnostic tests)
• Dressing, ordinary splints and plaster casts
• Costs of prosthetic devices if implanted during a surgical procedure
• Organ transplantation including the treatment costs of the donor but excluding the costs of the
organ

Post-hospitalization Expenses: up to 60 days. Immediately following the Insured’s discharge when he

requires further medical treatment directly related to the same condition for which the Insured was
hospitalized.

Pre-hospitalization Expenses: up to 30 days. If the Insured is diagnosed with an Illness which results in
his Hospitalization and for which the Insurer accepts a claim under hospitalization benefit. (Provided
that those 60 days start & end within the policy period.

Day Care Expenses: for hospitalization even less than 24 hours. Close to 150 minor surgeries will be
covered under this benefit that require more than 2 hours, but less than 24 hours.

Local Ambulance Services: in event of emergency. Emergency ambulance road transportation by a

licensed ambulance service to the nearest Hospital where Emergency Health Services can be
rendered. Coverage is only provided in the event of an Emergency up to the limits given in Schedule of
Benefits.
Wealth Management Services
• Portfolio Management: IndusInd Bank (IBL) has tied up with one of India’s leading financial
service providers- Religare, to offer Portfolio Management Services (PMS). IBL customers can
now avail of PMS to get the best out of equity markets.

• Religare is a decade old company, promoted, controlled and managed by the promoters of
Ranbaxy Ltd. The Portfolio Management team at Religare has 52 man years of experience in
the equity market. The process-driven approach to wealth management aims to safeguard
your interests, while leveraging risk to your advantage. You can choose among different
portfolios according to your investment objectives and your risk-return profile.
• Investments: IndusInd Bank offers you personalised investment options to help achieve your
financial objectives. Solutions are tailor-made to suit each individual's requirements. We offer
a host of financial instruments that includes Fixed Deposits, Mutual Funds, Bonds and
Insurance products.
Insurance: IndusInd Bank offers customized insurance solutions which offer comprehensive product
portfolio meeting all customer life cycle needs of Child planning, Savings, Retirement Planning and
Protection in association with Aviva Life Insurance. Aviva Life Insurance India is a joint venture
between one of the country’s oldest and largest groups, Dabur, and Aviva plc, the world's fifth largest
and the UK's largest insurance group, whose association with India dates back to 1834.
With a strong sales force of over 30,000 Financial Planning Advisers (FPAs), Aviva has initiated and
pioneered many innovative sales approaches, including the concept of Bancassurance and Financial
Health Check services.
A seasoned team of fund managers make our fund management are one of the key differentiators with
Aviva. Keeping with Aviva’s commitment of social responsibility, Aviva has been successful in reaching
out to the underprivileged strata through their Microinsurance initiatives.

Aviva brings to you, not just a robust product portfolio meeting all your lifecycle needs related to –
Savings, Retirement, Investments and Protection but right investment strategies that will help you plan
for a secured future.

Product Portfolio
Child Plans: A comprehensive plan to help realize your child’s dreams.
Savings: A simple plan to take care of 100% of your protection and saving needs.
Retirement Plans: A plan that ensures that you don't wait till 60 to follow your heart.
Protection Plan: A pure risk coverage plan that provides Financial protection against unforeseen risks
•
Corporate Banking
• Fund Based Facilities: Working capital finance, short term finance, term loans, bills finance-
supply/purchase bills, Asset securitization, line of credit, asset based financing.
• Non Fund Based Facilities: It includes letters of credit and bank guarantees.
• Value Added Facilities: Associate financing, cost management services, corporate salary
accounts, investment avenues for cash surplus etc. Official website maybe visited for further
information.
• Supply Chain Management:

It has products for suppliers and customers of our corporate clients. In order to facilitate completion of
supply chain management of our large corporate customers, we extend credit facilities for covering
the transactions keeping in mind the requirements of their business associates to minimize their
borrowing costs. This ensures minimum paper work and quick transaction delivery.
International Banking
• Correspondent Banking: Our Bank has a full-fledged Correspondent Banking Dept.. Bank has
correspondent banking relationships with over 232 banks spread across the globe to facilitate
cross-border trade and payment related services. The services offered include a wide variety
of fee-based corporate products and services like documentary credits, stand by letter of
credit, guarantees, remittances, acceptance of collections etc. The Bank takes care of
specialized project/activity funding in foreign currency.
• SWIFT: Society for Worldwide Interbank Financial Telecommunication (SWIFT) is a highly
secured mechanism to transfer funds. The users of SWIFT are a closed group, consisting of
member banks, securities houses, financial institutions, etc. In order to become a member of
the SWIFT network and use SWIFT communications facilities, a bank has to become a
shareholder of SWIFT.

SWIFT has standard message formats which is defined for all kind of messages, hence all
messages sent and received have a standard SWIFT format for Customer to Customer, Bank to
Bank, Statements, Foreign Exchange, Precious Metals deals, Cash Management, Letters of
Credit and Trade Finance etc. are few among them.

All the 40 branches of IndusInd are connected with Swift directly which helps speedy
transmission and delivery of messages. Messages sent through SWIFT are cost effective
against messages sent through telex or any other mode of communication. It has 391 banks
network across the world with whom SWIFT BKEs are exchanged.
• Rupee Drawing Arrangement R
• Advisory Services A
• Facilities to Exporters
• Trade Finance
• RFC Account for Residents R
• Gold Banking
• Remittance Services
• Suvarna Mudra
Others
• Investment Banking
• Treasury
• NRI Services
• Online Banking
• RTGS/ NEFT
Let us compare these indigenous services with two biggest giants in the banking
sector in India.

Amalgamations
In 2002, HDFC Bank witnessed its merger with Times Bank Limited (a private sector bank promoted by
Bennett, Coleman & Co. / Times Group). With this, HDFC and Times became the first two private banks
in the New Generation Private Sector Banks to have gone through a merger. In 2008, RBI approved the
amalgamation of Centurion Bank of Punjab with HDFC Bank. With this, the Deposits of the merged
entity became Rs. 1,22,000 crore, while the Advances were Rs. 89,000 crore and Balance Sheet size
was Rs. 1,63,000 crore.
Tech-Savvy
HDFC Bank has always prided itself on a highly automated environment, be it in terms of information
technology or communication systems. All the branches of the bank boast of online connectivity with
the other, ensuring speedy funds transfer for the clients. At the same time, the bank's branch network
and Automated Teller Machines (ATMs) allow multi-branch access to retail clients. The bank makes use
of its up-to-date technology, along with market position and expertise, to create a competitive
advantage and build market share.

Capital Structure
At present, HDFC Bank boasts of an authorized capital of Rs 550 crore (Rs5.5 billion), of this the paid-
up amount is Rs 424.6 crore (Rs.4.2 billion). In terms of equity share, the HDFC Group holds 19.4%.
Foreign Institutional Investors (FIIs) have around 28% of the equity and about 17.6% is held by the
ADS Depository (in respect of the bank's American Depository Shares (ADS) Issue). The bank has about
570,000 shareholders. Its shares find a listing on the Stock Exchange, Mumbai and National Stock
Exchange, while its American Depository Shares are listed on the New York Stock Exchange (NYSE),
under the symbol 'HDB'.

Apart from all this HDFC’s real strength comes from the vast range of products and services that it
offers to its customers. In comparison we may say that IndussInd is a young and developing venture.

Products & Services

Personal Banking
• Savings Accounts
• Salary Accounts
• Current Accounts
• Fixed Deposits
• Demat Account
• Safe Deposit Lockers
• Loans
• Credit Cards
• Debit Cards
• Prepaid Cards
• Investments & Insurance
• Forex Services
• Payment Services
• NetBanking
• InstaAlerts
• MobileBanking
• InstaQuery
• ATM
• PhoneBanking
NRI Banking
• Rupee Savings Accounts
• Rupee Current Accounts
• Rupee Fixed Deposits
• Foreign Currency Deposits
• Accounts for Returning Indians
• Quickremit (North America, UK, Europe, Southeast Asia)
 • IndiaLink (Middle East, Africa)
• Cheque LockBox
• Telegraphic / Wire Transfer
• Funds Transfer through Cheques / DDs / TCs
• Mutual Funds
• Private Banking
• Portfolio Investment Schemes
• Loans
• Payment Services
• NetBanking
• InstaAlerts
• MobileBanking
• InstaQuery
• ATM
• PhoneBanking
• This is, precisely what is being offered at the HDFC Bank. Notice its giant areas of operations
and the wide range of services that it is presently providing. To meet with the challenges of
survival a financial institution has to match up to the standard as set up by such giants. We
have another such giant to consider further-

ICICI Bank

What all worked at the ICICI Bank:

We will start with a bit of history and background of the bank, and focus on the range of services provided by
these successful banks. It had all started well, when the financial help was needed in the world of the
menkind. When we look at the ICICI Bank and it’s way to progress several new ways and methodologies
comes to mind. We’ll shortly discuss the company profile and try to delve deeper into its strategies. Starting
with a bit of history, it started as a wholly owned subsidiary of ICICI Limited, an Indian financial institution, in
1994. Four years later, when the company offered ICICI Bank's shares to the public, ICICI's shareholding was
reduced to 46%. In the year 2000, ICICI Bank offered made an equity offering in the form of ADRs on the New
York Stock Exchange (NYSE), thereby becoming the first Indian company and the first bank or financial
institution from non-Japan Asia to be listed on the NYSE. In the next year, it acquired the Bank of Madura
Limited in an all-stock amalgamation. Later in the year and the next fiscal year, the bank made secondary
market sales to institutional investors.

With a change in the corporate structure and the budding competition in the Indian Banking industry, the
management of both ICICI and ICICI Bank were of the opinion that a merger between the two entities would
prove to be an essential step. It was in 2001 that the Boards of Directors of ICICI and ICICI Bank sanctioned
the amalgamation of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial
Services Limited and ICICI Capital Services Limited, with ICICI Bank. In the following year, the merger was
approved by its shareholders, the High Court of Gujarat at Ahmedabad as well as the High Court of Judicature
at Mumbai and the Reserve Bank of India.

Present Scenario
ICICI Bank has its equity shares listed in India on Bombay Stock Exchange and the National Stock Exchange of
India Limited. Overseas, its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange
(NYSE). As of December 31, 2008, ICICI is India's second-largest bank, boasting an asset value of Rs. 3,744.10
billion and profit after tax Rs. 30.14 billion, for the nine months, that ended on December 31, 2008.

Branches & ATMs

ICICI Bank has a wide network both in Indian and abroad. In India alone, the bank has 1,420 branches and
about 4,644 ATMs. Talking about foreign countries, ICICI Bank has made its presence felt in 18 countries -
United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and
representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and
Indonesia. The Bank proudly holds its subsidiaries in the United Kingdom, Russia and Canada out of which, the
UK subsidiary has established branches in Belgium and Germany.

Products & Services

Personal Banking
• Deposits
• Loans
• Cards
• Investments
• Insurance
• Demat Services
• Wealth Management
NRI Banking
• Money Transfer
• Bank Accounts
• Investments
• Property Solutions
• Insurance
• Loans
Business Banking
• Corporate Net Banking
• Cash Management
• Trade Services
• FXOnline
• SME Services
• Online Taxes
• Custodial Services
A strategy that revolutionized the way people bank today and, outlook of people towards ICICI.

Doubtlessly, ICICI has been one of the best banks that the world has seen. It’s way of working and taking
things into consideration has helped it gain such a good customer base. We’re talking of it’s KM strategy. Any
progressive bank should try to analyze the steps take by it and develop/modify its own strategies accordingly.

ICICI also implemented some research methods for gaining good customer base and repute.

It is often researched and tried to be answered as what made the ventures at different institutions of repute
successful. ICICI had recently launched a strategy that dramatically revolutionized the way people banked
with them. It has now grown six-fold and is continuously developing.

ICICI Bank has grown six-fold since its KM strategy was established in 2000, making it the second
biggest in India today. But that strategy has been robust enough to grow with it. Central to ICICI
Bank’s success has been its flexible, innovative methods, and a plethora of KM tools that were
cannily marketed to staff from the very start.
ICICI was founded in the mid-1950s at the behest of the World Bank, the Indian government and
various ‘captains of industry’ in India. Its purpose back then was to provide medium and long-term
development finance for Indian business.
In the mid-1990s its business strategy shifted to take advantage of the opening up of the Indian
economy. The idea? To create a diversified financial-services supplier offering a range of products,
instead of concentrating purely on project finance. ICICI Bank was, therefore, established in 1994 to
provide retail banking facilities across India.
1. How to connect this vast new pool of employees with each other;
2. How to share business-related information about clients, deals and ideas;
3. How to manage staff through the change process via communication, messages, channels and
so on;
4. How to overcome the problems caused by staff turnover;
5. How to ensure that every person in the company is adequately equipped with the skills and
training required for their jobs and for lifelong learning and development.
The deeper question was, quite simply, how do we create a hunger among staff to acquire and share
knowledge? That is to say, how do we create the culture? The aim was to ensure that employees
stayed permanently aware of the external competitive challenges of the business, and to persuade
them to remain constantly open to new thoughts, ideas and ways of working.
Satisfied users
In our view, employee satisfaction drives usage and we wanted to use this as the delivery vehicle to
support three major information-handling behaviours: sharing, collaboration and self-help. In
essence, the workplace is no longer just a physical location. It has become a blend of physical and
virtual spaces in which work is undertaken.
The KM programme is now deeply embedded in the bank, but not as a result of any directive from
top management. Employees work with the KMprogramme because they see its benefits
and realise the value it brings to them on a day-to-day basis. This is what makes it vibrant and
engaging.
It is significant that a small project originally designed for about 1,200 employees in few locations
has been flexible and scalable enough to cater for more than 30,000 employees in more than 600
locations, most of whom are customer-facing staff.
Everything they need should be at their fingertips, whether getting an answer to a problem,
checking a policy or accessing standard templates and formats such as letters, agreements or
guidelines.
The importance of scalability cannot be underestimated. In 2005, usage increased more than six
times compared to the year before and the portal marked a record one-million logins in November
2004 after the site was redesigned. The number of staff using the KM portal doubled in the same
period.
On average today, about 6,000 users visit the site daily, of which 95 per cent come from ICICI Bank’s
retail branches. And more than 40 business divisions actively participate in the KM effort to
contribute and publish content. Today, there are more than 14,000 individual items, about 1,000
daily searches for information and more than 16,000 interactive postings.
The WiseGuy KM portal also encompasses a variety of sections including: document management;
news inside and outside the organisation; digital resources such as trade and news journals,
research reports, maps, directories, currency and time calculators; information on the various
business groups and group companies, complete employee information; and, interactive sections
such as discussion forums, query boards, book reviews, online quizzes, the rewards and recognition
scheme, and so on.
Wise Wednesdays
Early on, we realised that several senior people were reluctant to type and post submissions to the
portal. So we invited them to share their tacit knowledge in an informal manner and
the WiseGuy Knowledge Leader Series (KLS) was born.
Guest speakers included experts on various topics, such as advanced finance, and internal business
heads who were delighted to be invited and were willing to give it a try. KLS evolved to include even
chief the financial officers and CEOs of renowned companies in India, who have spoken on the topics
of leadership and strategy.
Called ‘Wise Wednesdays’, we have conducted more than 60 KLS in various formats over a period of
three years from 2001 to 2004. It contributed immensely to our WiseGuy brand and really helped to
build the popularity of KM in ICICI Bank and, overall, gave our KM efforts huge visibility.
In another experiment, we set aside some time once a week for a knowledge café in the canteen of
our Mumbai headquarters. Similarly, we tried a variety of other formats, including informal ‘brown
bag’ concepts, in which staff would be invited to bring their lunch along to a presentation on a
particular subject by a notable individual, to web conferences and live webcasts, so that any user in
any location could participate. KLS encouraged face-to-face, live interaction and KM was therefore
not seen purely as a portal activity.
Not all of these were successful. For example, our knowledge cafes had to be abandoned because
the noise in the canteen proved too distracting, while some of our speakers for the brown-bag
presentations felt offended that staff were tucking into their lunches while they were presenting
about weighty topics.
Corporate learning
The ability to learn across the group and from team mates is a very powerful tool. We aim to build a
learning environment by encouraging collaboration and push mechanisms, including a webzine e-
mail to every employee before 9.30am. The Daily Dose, as it is called, is a summary of what is new
in the outside world and on the portal. It features headlines, opinions, polls, happenings, customer
appreciations, newsletters and other regular updates.
Again, one of the main benefits of the Daily Dose is the high profile it lends to our various KM
initiatives. When we polled staff, almost 97 per cent said that The Daily Dose represents an
important part of their working day. By delivering it direct to their mailbox, it helps the KM team to
capture the ‘mind space’ of employees as soon as they sit down to work in the morning.
Other tools we use include Newsroom, a space on the intranet where daily news headlines are
published. Here, staff can look up all the newsletters published by internal business groups, media
releases, as well as tracking what our competitors are up to. Then there are ‘K-mailers’, which are
short, one-page reviews on any one of 33 topics in six categories; internal newsletters from various
domain specialists; online quizzes; ‘word power’ articles or glossaries; training modules; and, a
whole library of online research tools.
Query Board, a central, interactive frequently asked questions repository by and for staff, is where
they can post any work-related queries, such as the number of cheques that can be deposited at any
one time, customer credit questions, cheque returns and so on.
Indeed, anything work-related that demands authoritative responses from colleagues and in-house
experts. It serves as the fastest and most reliable source for feedback on queries or doubts related
to workplace rules, policies and procedures, technical know-how and much more. Remarkably, the
average response time to a query ranges from five to 15 minutes, but never more than one day from
the time the query was posted.
In addition to Query Board, we also offer a more general discussion forum on the intranet where
staff can talk about finance, business and economy-related topics. Discussions on our forum revolve
around topics highly relevant to the work in the bank, such as the automatic cheque book re-
order system and solutions for detecting fake bank notes.
Managing documents on WiseGuy
The digital assets on WiseGuy represent a vital element of our KMprogramme. WiseGuy’s document-
management system offers a managed view into otherwise overwhelming enterprise content and
provides users access to personalised content with team-specific interfaces to improve collaboration.
Centralised and distributed publishing capabilities mean that users are empowered and can
contribute their own documents, define them, schedule updates and so on. Furthermore, the portal
manager enables business groups to generate their own template-based, database-driven mini-
websites using an extremely flexible front end, point-and-click tool.
The content is classified and organised by use of a simple tree view for easy navigation,
supplemented by a search tool for easy retrieval. Information can be located within two or three
clicks, or less than a minute of searching. Other key features include easy identification of
documents by author, date, posted comments and even queries.
The system helps to preserve the organisation’s intellectual capital, as it is able to capture
information so that it is not lost even when a person leaves the organisation. To encourage
participation, ‘sticky’ features on the portal include opinion polls, cartoons, tips, word of the day and
tools available to business teams to conduct surveys and online quizzes.
Technology platforms
Much of what is deployed to support our various KM initiatives is custom-developed, but the tools
are supported on a variety of standard hardware and software platforms, particularly Microsoft
Windows, Linux, Microsoft Office, OpenOffice (the open-source alternative to Microsoft Office), and a
host of other off-the-shelf and custom applications.
Implementation was eased by the fact that it was not one single mega project, but a combination of
many experiments and modular launches. This means that we nurtured what worked and discarded
along the way any elements that plainly did not work.
One early project was a ‘Yellow Pages’-style directory for the entire corporate group. These, of
course, are quite common KM tools, helping put staff in direct contact with one another. The
result, Peoplefinder, is the experts’ directory that employees use to locate others and update their
own profile with interests, areas of expertise where they can help colleagues and other relevant
information. Creating it was like opening the doors and windows in a dusty house shut for many
months as people who did not even know who was sitting on the same floor as them suddenly got
‘connected’ and it continues to be one of the most-used sections.
Many implementations began as line-of-business pilots. ‘At your Service’ is one such example in
which employees who are also customers of the bank can talk directly with the product and process
teams for personal banking issues. With a back-end plug-in to the call centre it serves the dual
purpose of learning while solving problems. It was so effective that it was replicated for other teams
too.
Compliance, quality and customer service
In 2002, the bank launched its quality programme to achieve the relevant certification levels
throughout the organisation. Naturally, KM’s role was to support the quality team and we did this by
building a KM mini-portal on quality. This quality ‘portlet’ maintains the background material,
documents on Six Sigma methodology, international quality standards, certifications and everything
else that relates to the organisation’s endeavours in maintaining quality levels. Staff can also post
and respond to queries and interact with the quality experts.
KM tools and techniques are also deployed so that customer-service teams and those staff who deal
directly with the public can share almost everything related to customer complaints and service
quality issues, from branch and customer satisfaction with cash machines, to standard templates,
letters, tools, to recognising and celebrating customer satisfaction benchmarks and people who have
achieved it. The various activities, contributions and postings help spread the good practices
throughout the bank.
Of course, banks today have to deal with growing regulatory demands, including circulars and
notices from the regulatory authorities that must be followed to the letter. We therefore created E-
Circulars to inform and educate staff on regulatory and compliance matters. It is used by designated
senior managers who have a duty to inform employees on guidelines issued by various regulatory
authorities as they affect the bank’s policies, products and processes. It is not all one-way.
Recipients can also be tested with four or five key questions to ensure that they broadly understand
the content.
Beyond the surface to the soul
This is a phrase from a very useful book on the topic. It states that KM is not just a set of techniques
or practices. If that were so, it would not have been difficult for other manufacturers to copy the
Toyota Production System, for example, even though the details have been relayed in books
and Toyotaeven gives tours of its manufacturing facilities – it is no secret. The difference is in its
philosophy and perspective about such things as people, processes, quality, continuous
improvement and other factors that represents not just the surface – what you can see – but the
inner soul.
This has become increasingly relevant with the realisation that few jobs are well structured or well
defined. Instead, knowledge work is defined at the point of need by the issues, problems or
opportunities that arise. Researchers and authors Pfeffer and Sutton asked why it was that with so
much education and research, management consulting, books and articles, that the little change
that does occur often happens with such great difficulty. They concluded it was because knowledge
of what needs to be done frequently fails to result in action or behaviour consistent with that
knowledge.
This is what they called the ‘knowing-doing gap’. Their study analysed how some organisations are
consistently able to turn knowledge into action while others fail. Their findings suggest that it is
management practices that either create or reduce the knowing-doing gap. In our work, the KM
team used their insights as a guiding philosophy.
Rather than waiting for culture to change, we banked on change impacting the culture. We tried to
make it fun and prestigious and persuaded leaders to champion our KM efforts. In experimenting
with so many new things and new ways of doing old things, risk taking was encouraged and
mistakes were not considered fatal.
Marketing, it is frequently said, is absolutely key to encouraging the use of KM systems. At ICICI
Bank, employees are encouraged to participate and contribute by way of rewards and recognition.
First, the very fact that contributions are published on the portal along with ownership details gives
employees a sense of recognition for everything they do.
Every contributor earns ‘K-Points’ for contributing anything from an article to documents, queries,
responses to queries, initiating a discussion and even just rating discussions. A separate section on
the intranet is dedicated to the ‘knowledge champions’, displaying the top contributors based on
their ‘knowledge quotient’. This KQ is also prominently displayed on their home page next to
a personalised welcome message. ‘K-Cash’, an earlier version of the rewards scheme, enabled
employees to redeem gift vouchers online for the points they earned. And knowledge leaders who
spoke in the Knowledge Leader Series, as well as knowledge champions, were given certificates
signed by the managing director and CEO of the bank.
Marketing KM, we found, is all about making connections, so we didn’t hold back. Early on, we
moved to win over senior management to help usevangelise our work. Then there were mailers,
posters, group presentations, off-site meetings, open house sessions on KM, regular publishing on
the portal, surveys, a KM newsletter, even bare-faced gimmicks. When, for
instance, WiseGuy completed its first year, employees who logged on to their machines in the
morning were surprised by a short 40-second video embedded in an e-mail with bank
director Chanda Kochar delivering
Finally, it is about speed, about the youth and their energy, about collaboration and co-operation.
WiseGuy has assisted the organisation in a number of ways. It has helped:
 In the creation of a common storehouse of knowledge;
 Staff identify sources of in-house expertise;
 In the development of a sense of ‘belonging’ among staff;
 Save the bank money;
 Improve our employee’s decision-making ability;
 Empower staff;
 Provide a means for staff to upgrade their skills;
 Staff to plan their career movements;
 Provide a platform for recognition of contributions made to the bank.
What works
What really continues to work in favour of WiseGuy is the way that it helps to engage employees.
This is the result of the philosophy and management practices and small decisions taken on a day-
to-day, case-by-case basis. Some insights may be capsulated as follows:
 Listen, listen, listen. Then listen some more;
 Speed is of the essence – lead, don’t follow;
 Maintain the intrinsic organic nature and growth versus design and diktat;
 Don’t kill any idea – however small;
 Tap the collective energy;
 Compassion and caring – most employees are struggling with personal issues of work-life
 balance and stress. If KM helps decrease this, you have a convert;
 Sensing underlying concerns;
 Team work, every time.
Working on the similar plane we believe that excellence can be gained and large customer base can also be
gained. Customers would ever look at the IndusInd bank for excellence in services and quicker reactions
towards solution of problems. Weownload WePDF

Nevertheless, IndusInd bank continues to strive deeper and penetrate to reach more horizons. Citrix Solutions
has also been a base for it. We’ll look at some excerpts.

IndusInd Bank Enhances Business Growth with Centralized IT Management

“Citrix has enabled us to streamline mission-critical business functions and ensure better application
performance for the users.”
According to Pattabhi Raman G., Assistant Vice President, IndusInd Bank

Key Beneits

Corporate expansion through faster opening of branches

Faster delivery of core applications for greater productivity

Enhanced IT efficiency

Single-point interface between different systems

Applications Delivered

Trade Finance (a customized application)’

TDS (Income Tax Deduction at source) application suite

Networking Environment

IndusInd Bank has become one of the fastest-growing banks in the Indian banking sector today. Its broad lines
of business include corporate and retail banking, Treasury and Foreign Exchange, investment banking and
capital markets. IndusInd Bank’s branch network expanded from 61 in March 2004 to 137 two years later,
reflecting an increase in excess of 125 percent. The bank has approximately 150 ATMs of its own, and has
concluded multilateral arrangements with other banks with a total network of 15,000 ATM outlets. All the
outlets of IndusInd Bank, including its branches and ATMs, are connected via leased lines/satellite to the core
banking system (Equation 3.42 from Misys) and its central database that operates on the latest version of
IBM’s AS400-870 iSeries hardware.

The Challenge: Information Access and Efficient Business Operating Environment

One of the new-generation private-sector banks formed in the mid-nineties in India, IndusInd Bank Limited is
today acknowledged as one of the top 10 banks in the country. Its transition to retail banking, expanded
branch network and overseas strategic alliances are all aspects of its mission to emerge as an international
bank and acquire global capabilities. To support this mission, a new IT vision took shape in 2003. In response
to changing business needs, a decision was made to centralize some critical business applications and move
away from a distributed computing environment.

Elaborated Pattabhiraman G., assistant vice president, IndusInd Bank, “The existing DOS-based system
hosting our Trade Finance application was causing management problems due to a lack of centralized controls
and poor application performance. MIS report generation was not timely and reconciliation with the Core
Banking System (CBS) was a major problem. Our main objective was getting control of the business
processes, improving information flow and accelerating critical accounting processes.”

IndusInd Bank sought a solution that would help in delivering its customized Trade Finance application,
interfaced with the core banking system, to 40 of the most important branches in terms of size and business
prospects. Subsequent to that, the bank wanted to deliver SWIFT, an application that all financial institutions
use for effecting trade and foreign currency remittances, across these branches. All these applications were
on different platforms; they needed to be centrally managed and available to users from a single point.
Further, the solution had to work on a WAN network with optimum utilization of bandwidth.

Implementing Citrix Presentation Server for Centralized Application Management

IndusInd Bank partnered with HCL initially and then S. K. International, a Citrix® Solution Advisor, to
implement a Citrix application virtualization solution for the initial group of 40 branches. IndusInd Bank
upgraded to Citrix Presentation Server with Microsoft Windows 2000 Server running on three HP ProLiant
Blade servers. Now, around 150 concurrent users in about 80 branches are accessing a host of virtualized
applications including Trade Finance, SWIFT, FXDEAL system (an application for seeking exchange rates), TDS
(Income Tax Deduction at Source) application suite and four ancillary applications. Users include a number of
pre-defined front-office and back-office staff at various branches; managers and other top management
professionals at the corporate office for MIS; treasury users and credit managers. All users access the solution
through leased lines.
Centralized Management Enhances Business Productivity
Users have experienced high satisfaction levels from working with the centralized system. Said Raman, “Due
to the Citrix technology, we have achieved the benefits of centralization without compromising the benefits of
decentralized processing, such as ownership and accountability. The solution works on the existing WAN with
optimum utilization of bandwidth. All branches now have equal access to core applications. MIS is helping us
to target our business goals. In effect, the bank is able to get more business from the same customers
because of a wide-angle view of business operations, primarily due to centralization.”

Raman also noted that Citrix Presentation Server has certainly helped IndusInd to deliver applications to newly
opened branches faster and at no extra cost.

Centralized Management Enhances Performance and Manageability of Applications

With the powerful centralized management capabilities of Citrix Presentation Server, better application
administration and efficient user support have been assured. Raman pointed out that the Citrix solution
provides centralized control of virtualized applications. “MIS, auditing and credit control are now centralized.
More importantly, there is a single-point delivery of applications and updates, which otherwise would have
taken months. Now it takes just a few hours. Time and money are saved through online training and guidance
provided using the session-shadowing capability. The load-balancing feature helps in optimum utilization of
server resources and also in deciding application isolation in case of need.”

Raman also remarked that IndusInd Bank has significantly lowered IT costs due to the Citrix implementation.
He said, “IT management has become very simple. We are saving a great deal in terms of manpower because
local IT skills and labor are not needed at the branches. The troubleshooting, if any, is done centrally.
Providing access to new users at new branch locations is done in minutes, and online guidance is provided
through session shadowing. Single-point delivery enables the fast rollout of new applications for launching
new banking products and enhancement of existing applications with new features.”

Generation of Accurate and Faster MIS Reports

Generation of MIS reports is now a pleasure and done in a matter of minutes because of centralization. Earlier,
reports used to be physically compiled at the branches. After being e-mailed to the central office, these
reports had to be re-compiled and cross-checked for accuracy, which used to take a number of days. Raman
added that the reports are timely and much more accurate now, which is helping tremendously in business
decisions, audit and overall banking operations.

Being a Citrix Subscription Advantage™ member gives IndusInd a convenient way to budget for Citrix
upgrades annually, without having to anticipate variable costs throughout the year. In addition, IndusInd gets
priority access to important Citrix technology information and related customer-centric information all year
long.

“IT management has become very simple. We are saving a great deal in terms of manpower because local IT
skills and labor are not needed at the branches. The troubleshooting, if any, is done centrally. Providing access
to new users at new branch locations is done in minutes, and online guidance is provided through session
shadowing. Single-point delivery enables the fast rollout of new applications for launching new banking
products, and enhancement of existing applications with new features.”

Customer’s Expectations
Prompt and efficient Customer Service is the key to success of any service organization. For a continuous and
sustained business growth, it is necessary not only to widen the customer base but also to retain the existing
Customers. The staff at bank’s branches not only aims to satisfy the Customers but to delight them with our
services. However, some instances of complaint still arise. The policy has been designed to deal with all such
matters.

Objective
The policy document aims to minimize the instances of Customer complaints through proper service delivery
and review mechanism and to ensure prompt redressal of Customer’s grievances. The review mechanism
would help in identifying shortcomings in product features and service delivery.

Banking Sector is the backbone of any financial system and economy. Commercial banks play an important
role in the development of underdeveloped/developing economies by mobilization of resources and their
better allocation.

Principles of the policy

The Bank’s policy on grievance redressal follows the under noted principles:

1. Customers be treated fairly at all times

2. Complaints raised by Customers are dealt with courtesy and on time
3. Customers are fully informed of avenues to escalate their complaints/grievances within the
organization and their rights to alternative remedy, if they are not fully satisfied with the response of
the bank to their complaints.
4. Bank will treat all complaints efficiently and fairly.
5. The bank employees must work in good faith and without prejudice to the interests of the Customer.

Bank has structured a meaningful and effective mechanism for redressal of complaints and same has been
put in place. It ensures that the redressal is just and fair and complaint is redressed within the given frame-
work of rules and regulation. The policy document is available at all branches and the employees are aware
about the complaint handling process. The policy is also hosted on our website

1. The Customer complaint arises due to;

a. The attitudinal aspects in dealing with Customers

b. Inadequacy of the functions/arrangements made available to the Customers or gaps in standards
of services expected and actual services rendered.

The Customer has full right to register his complaint if he/she is not satisfied with the services provided by the
bank. He/She can give his/her complaint in writing, orally or over telephone. If Customer’s complaint is not
resolved within the given time or if he/she is not satisfied with the solution provided by the bank, he/she can
approach Banking Ombudsman with his/her complaint or other legal avenues available for grievance
redressal.

2. Internal Machinery to handle Customer complaints/ grievances

Customer Service Committee of the Board

The Customer Service Committee of the Board is responsible for the rendering of Customer Service to the
individual, both as a depositor and also as a borrower. This Sub-Committee of the Board has already
formulated a Comprehensive Deposit Policy incorporating the issues such as the treatment of death of a
depositor for operations of his/her account, the product approval process, etc. The Committee proposes
annual survey of depositor satisfaction and the tri-enniel audit of such services. The Committee also examines
any other issues having a bearing on the quality of Customer Service rendered. This Committee also reviews
the functioning of Standing Committee on Customer Service.

2.2 Standing Committee on Customer Service

We have set up a Committee on Procedures & Performance Audit of Public Services (CPPAPS). Our Customer
Service Committee of the Board evaluates the performance of this committee. CPPAPS is chaired by our
Managing Director, and besides Joint Managing Director and other Senior Functional Heads of the Bank, the
committee also has some eminent non-executives drawn from the public as members

The functions of the committee are as follows:

• Evaluate feed-back on quality of Customer Service received from various quarters. The committee
reviews comments/feed-back on Customer Service and implementation of commitments in the Code
of Bank’s Commitments to Customers received from BCSBI.
• The Committee ensures that all regulatory instructions regarding Customer Service are followed by
the bank. Towards this, the committee obtains necessary feed-back from Cluster Heads/Branch
Heads/Functional heads.
• The Committee also considers unresolved complaints/grievances referred to it by Functional Heads
responsible for redressal and offer their advice.
• The committee submits report on its performance to the Customer Service Committee of the Board at
quarterly intervals.

It would be good to consider the expectations as set by the Indian customers. Today people have so many
options, and they’re looking at various institutions for investment purposes. People’s money needs to be
multipled. As we know at any institution it is the foremost aim to multiply gains and increase the wealth of the
shareholders. Customers would continue to bank on your name if you consistently delivered results and
continued to impress the shareholders.

Mutual Funds and other such schemes are the sole ways through which wealth can be maximized at any
institution of financial nature. Financial Services are an area that needs continuous checks and upgrades.
IndusInd realizes that if it could build strong relationship with the customers then they would continue to bank
with them.

The Indian banking system has changed a lot over the last five decades especially in the last 15 years with
India taking to the path of free market economy and globalization with clear commitments under WTO (World
Trade Organization) regime. A journey from private ownership and control of commercial banks to government
ownership and control by way of nationalization, has come in full circle in the wake of liberalization and
introduction of new players in the shape of Private Sector Banks and Foreign Banks. Fresh induction of public
stake and corporate governance in government owned banks has brought the element of stiff competition in
the environment with greater adoption of the new technologies and ideas, renewed perception of service
quality along with the high degree of professional management and marketing concepts in the Indian Banking
system. Currently there are twenty eight public sector banks which account for 87% of the total bank
branches (and 74% of deposits), twenty four private sector banks which account for 12% of the total bank
branches (and 20% of deposits) and twenty nine foreign banks accounting for 0.45% of the branches (and
5.5% of deposits) (Indian Banks' Association, 2007). The entry of foreign/private banks and various financial
sector reforms like deregulation of interest rates, new norms on asset classification and provisioning, adoption
of Basle Accord on capital adequacy coupled with other policy measures aimed at adopting best global
practices has revolutionized the banking industry in India. The Public Sector Banks, which still account for the
major part of the Indian Banking Industry in terms of size and reach are facing stiff competition from Private
and Foreign Banks as also from the Non-Banking Financial Institutions. The Foreign Banks which form only
0.26 % of the total number of branches in India still manage to gather 5% of the total deposits.

• Customers are the core focus of any organization and thus of prime importance to the marketers. It is
important for the service providers to know the level of customer expectations so that they can meet
and even exceed them to gain maximum customer satisfaction. Hence understanding customer
expectations is a prerequisite for delivering superior service (Parasuraman et al., 1991). Customers'
perception of service quality influences the consumer behaviour (Bitner, 1990) and intention
(Henning-Thurau and Klee, 1997). Organizations can provide the best services to their utmost
 capabilities but if the customer does not perceive them to be of quality, all is in vain. Thus it is very
essential for the service provider to understand how customers can perceive the service as quality
service and carry a euphoric feeling. It is the task of the marketing people to understand the factors
affecting customer perception, elements of service quality and satisfaction to have a competitive
edge and to create a perceptual difference. If all these are considered and then the service provider
targets the customers with a total service experience, the customer perceives the service as quality
service and spreads positive word of mouth. Thus perception is one of the factors affecting customer
satisfaction. (Zeithaml and Bitner, 2003; Zeithaml, 1988)
• Services are a series of activities and as the "product" is "missing" (Gronroos, 1998) the service
quality forms an important aspect in the perception of services as it has both marketing and
operations orientations (Fitzsimmons and Fitzsimmons, 2001). It can be used as a tool for
differentiation and can provide a competitive edge. Service quality is also crucial for developing loyal
customers and is hence responsible for the success of any service organization (Kandampully, 1998;
2000). The customers at the time of service delivery interact closely with the service providers and
get an inside knowledge of the service organization. This knowledge gives them an opportunity to
critically assess the service provided and the service provider. Thus service quality plays an important
role in adding value to the overall service experience. Also customers seek organizations that are
service loyal i.e. aim to provide consistent and superior quality of service for present and long term
and organizations aiming for this are bound to get customers' loyalty.
• Public Sector Banks
• As analyzed before (Customer expectation vs perception of service quality - public sector banks) there
is a considerable difference between the customer expectations and perceptions regarding service
quality of public sector banks. Our null hypothesis is rejected and the alternate hypothesis i.e. there is
a significant difference between the customer expectations and customer perception of private banks
regarding service quality is accepted as in the comparison of the mean score values there is a
significant gap (perception - expectations) in case of Empathy followed by Reliability, Tangibles and
Assurance (see Table 5: Mean and Standard Deviation for Public, Private and Foreign Banks). The
standard deviation in the customer expectations is moderate but in case of perception the value of
standard deviations is significantly high which shows customers have different perceptions regarding
services offered by the banks.
• Private Sector Banks
• Public sector banks also exhibit difference between the customer expectations and perceptions
regarding service quality, Customer expectation vs perception of service quality - private sector
banks). Even though the gap is less in comparison to public sector banks but difference is between
empathy followed by assurance, reliability and then tangibles (see Table 8). Thus our second null
hypothesis is rejected and the alternate hypothesis i.e. there is a significant difference between the
customer expectations and customer perception of public banks regarding service quality is accepted.
The standard deviation for the customer expectations is again low but the same for customer
perception is high yet lower in comparison to the public sector banks. This shows that the customers
have similar perception with regards to services offered by the private banks.
• Return on assets: Average return on assets in case of Public sector banks is the lowest among the
three groups with Private banks doing better then Public sector banks, but the same is highest in the
case of foreign banks, which is 2 to 2.5 times higher than Public sector banks.
• Business per employee: Average business per employee of Private banks is about 1.5 times that of
Public sector banks, where as Foreign banks have more than double of business per employee in
comparison to Public sector banks.
• Profit per employee: Average profit per employee is highest in case of Foreign banks followed by
Private Sector banks. It is lowest in case of Public Sector Banks.
• Non Interest Income on services other than lending is highest in the case of Foreign Banks followed by
Private Sector Banks. It is lowest in the case of Public Sector Banks.
•
• CONCLUSIONS AND RECOMMENDATIONS
• The statistical analysis through factor analysis and Cronbach's Alpha shows that there exists a gap
 between the customer expectations and perceptions in the Banking sector. The expectations of bank
customers is higher than their perceptions as suggested by Parasuraman et al. (1988). This gap varies
across the banking sector with public sector banks showing the widest gap and Foreign banks
showing a narrow gap. Factor analysis showed that tangible, assurance, empathy and reliability
dimensions are the explanatory variables predicting customer satisfaction in India. Tangibles have the
highest impact on overall customer satisfaction. The largest discrepancy between the customer
expectations and perceptions is in terms of empathy which includes Bank locations and ATM
machines in convenient places and telebanking and internet banking facility. This is the major source
of concern for Indian banking industry as a huge service quality gap exists for all the banks in this
category. The findings from the statistical analysis show that customers of public sector banks neither
agree nor disagee i.e. are neutral about the service quality offered by the banks. Apart from empathy
they need to focus on reliability and tangibles as customers today are looking for tele-banking and
internet banking facilities and aesthetics is also a key determinant of service quality.
• So, we will conclude here, and put forward the idea of continuous effort towards developing of
institutions, which is, as commonly understood, a team work. Any venture is as successful as much
efforts has been put into its development. IndusInd needs to analyze the steps taken by other
successful banks and develop a way for itself. It won’t be enough to just copy their methods, as time
is ever changing and newer methods has to be applied.

1.4 FINDINGS AND CONCLUSION:

INTRODUCTION:

We have tried to analyze, to the best of its extremities, the products and services that are being offered at the
bank at the present and the ones that can be planned to be launched in the future. With their effectiveness
comes responsibilities; and the products have a cycle to go through in which they are constantly changed
suiting to the needs of the consumers.

The products launched by IndusInd are super fine and attuned to technology and mindset of the new
generation, and highly categorized i.e., suiting to the needs of most individuals. Yet, it has been observed that
people prefer to bank with a few names that have established itself well in the past. As compared to the
giants in the banking sector HDFC and ICICI are offering a lot more than what is being offered at the bank
under scrutiny i.e., The IndusInd Bank. But, still the continuous efforts towards building a better relationship
with the consumers, and its strategic moves we hope soon it would leave its predecessors way behind itself.

We conclude with the fact that success of an institution is in delivering the best and customized services to its
customers. People’s expectations are different from different kind of institutions. Private sectors are
distinguished from the public ones, in a sense that the whole outlook of the people has altogether a different
notion while dealing with either one. People expect finer and quicker solutions to their general problems of
investment, something that would work magically. To cater to their demands constant update of the
methodology itself is needed. The whole process has to be analyzed and correct methods should be
employed. New and Customized products should be presented to the customers and for that products need
constant updating too.
EXECUTIVE SUMMARY

I had the opportunity to take up the summer Internship Project at IndusInd Patna, The
internship was from April-8, 2010 till June 8, 2010.

The objective of my internship was to have the first hand experience in the field of Human
Resource. The objective has been amply fulfilled at the end of my tenure at IndusInd
Bank. I experienced and in sighted into the Products and Services.

Objective:

 To Study the Methods adopted by IndusInd Bank for delivering the best
results; Its Products and Services.
 To study the results of these research based methods.
 To study the various aspects of the business, and the needs to be fulfilled by
the institution.
 Analysis of past performance in market relative to market movement &
returns earn.

I had taken up a study on methods adopted by IndusInd Bank for giving the best to its
customers. The products and services carried out by the company to gain best
competitive edge over the rest of the market.

While analyzing the services both qualitative and quantitative aspects have to be
considered. The quantitative measures of risk and risk-adjusted performance have been
assessed through the business models. However, other factors determining the
performance of Products which has been taken in to consideration are; asset allocation of
funds, percentage of specific sector investments, fund manager’s background, experience
and his style also hold importance in deciding a performance of a fund.

Limiting factors have been that the individual banks are expected to perform in a certain
specific ways. Customer’s expectations vary from an institution to institution; of public
and private in nature. The customers also starts to expect something “New” from a new
eruption of the same kind of institution. When IndusInd bank came into existence it had to
consider all these facts, precisely what we discovered through this project report.

•
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Bibliography
http://www.iloveindia.com/finance/bank/private-banks/icici-bank.html
http://www.iloveindia.com/finance/bank/private-banks/hdfc-bank.html
http://www.iloveindia.com/finance/bank/private-banks/indusind-bank.html
http://www.wikipedia.org/indusind/
http://www.indusind.com/
http://findarticles.com/p/articles/mi_7629/is_200904/ai_n32327240/pg_8/?tag=content;col1