9th Annual India Unlimited Investor Conference_website

8/9/2019 9th Annual India Unlimited Investor Conference_website

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page 3.jpgpage 1.jpg


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page 3.jpgpage 2.jpg9thAnnual India Unlimited. InvestorConference

Mr. Bipin Kabra

March 9, 2010


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page 3.jpgpage 3.jpgOrigin

Capital of

11,000

7 employees

Nov 14, 1927

Trichur


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page 3.jpgpage 3.jpgMilestones

Incorp.

1927

1stBranch

Br. o/sKerala

SCBstatus

100

branches

Publicissue

1stATM

Rightsissue

1937

1975

1977

1980

1996

2000

2002


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page 3.jpgpage 3.jpgThe distant past

Dependency in KeralaBanking business

InfrastructureEmployees

Bulk of the business from the SME segmentHigh NPA levelLow employee base and Higher age of employees207 branches and 72 ATMs


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page 3.jpgThe Turning Point

As per RBI guidelinesNet worth of Rs. 300 croresNo single shareholder with control in excess of 10%

Decline in holding by the largest shareholder from 37% to10%Change in Board of Directors with induction of highly reputedprofessionalsRights issue made in April, 2008 at a price of Rs. 62 per shareRevamp in the top and senior management with emphasis on

proven industry credentials and execution capabilities


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page 3.jpgVision

Large Profitable A Rated Bank

Large

Profitable

A Rating

To be amongst the top 5 Private Sector BanksBalance sheet sizeAsset QualityProfitsBranch network


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page 3.jpgC:\Documents and Settings\Administrator\Desktop\New Folder\dILIP.JPEGMission

There is nothing in a caterpillarthat tells you it.s going to be a

butterfly.

E:\sameer on 172.19.122.188\PPG\Financials\budget-11\39928[1].jpg


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page 3.jpgpage 3.jpgGrowth phases

Change is the deviation from one condition to another condition, one processto another process, one stage to another stage, one phase to another phase

Past

Capacity

Productivity

OptimisationC:\Documents and Settings\Administrator\Desktop\New Folder\dILIP.JPEGC:\Documents and Settings\Administrator\Desktop\New Folder\747400-k57182[1].jpgC:\Documents and Settings\Administrator\Desktop\New Folder\UA%20747-422%20TPE%20Departure[1].jpg

C:\Documents and Settings\Administrator\Desktop\Bkup\Desktop\New Folder\New pho\Boeing_Hangs_GEnx-2B_Engines_747-8_Freighter[1].jpg


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page 3.jpgCapacity

BrandingTreasury & Fee Income

Operation and Technology

Business Mix

Human Resources

Liabilities

ChannelsProduct Suite

C:\Documents and Settings\Administrator\Desktop\Bkup\Desktop\New Folder\New pho\

Boeing_Hangs_GEnx-2B_Engines_747-8_Freighter[1].jpg


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page 3.jpgContinuous progression in strategy

Capacity

Productivity

C:\Documents and Settings\Administrator\Desktop\New Folder\747400-k57182[1].jpgC:\Documents and Settings\Administrator\Desktop\Bkup\Desktop\New Folder\New pho\Boeing_Hangs_GEnx-2B_Engines_747-8_Freighter[1].jpg


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page 3.jpgFive speed transmission

.Balanced Scorecard

.Retail Assets

.Capital Raising Plan

.Fee income -New products

.Strengthening Channels

C:\Documents and Settings\Administrator\Desktop\New Folder\747400-k57182[1].jpg


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page 3.jpgOther Initiatives

.Wealth Management

.Mutual Fund

.BPO

C:\Documents and Settings\Administrator\Desktop\New Folder\747400-k57182[1].jpg


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page 3.jpgIndia.s Fastest Growing Mid-size Bank byon the basis of a KPMG surveyAwarded Best bank in the private sector by the StateForum of Bankers. Clubs at their Banking ExcellenceAwards

Accolades Last 12 monthsBT_logo copy.jpg


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page 3.jpgName

Age

Total Work Experience

Mr. G.N. Bajpai

Chairman

66

HehashadadistinguishedcareerintheIndianfinancialsectorandiscurrentlyDirectorofFutureGeneraliLifeInsurance,FutureGeneraliInsurance,InventARCPrivateLimited,InformericsValuationandRatingPrivateLimited.Heistheex-chairmanofLifeInsuranceCorporation&SecuritiesExchangeBoardofIndia(SEBI)

Mr. AmitabhChaturvedi

MD & CEO

41

ACharteredAccountantbyqualificationhavingexperienceofover18yearsintheareasofBanking,AssetManagement,InvestmentBanking.LifeInsurance,GeneralInsurance,Broking&Distribution.HewastheGroupPresidentofRelianceCapitalLimitedandwasinchargeoffinancialservicesarmofRelianceADAgroup.PriortotheRelianceGroup,hewasinchargeoftheRetailBankinggroupatICICI.Mr.ChaturvediwasappointedontheBoardoftheBankonOctober10,2008.

Mr. ShaileshHaribhakti

53

ACharteredAccountantbyqualification,heistheonlyIndianMemberontheStandardsAdvisorycounciloftheInternationalAccountingStandardsBoard(IASB).HeistheChairmanofFPSB,India.HeisaCommitteememberofFutures&OptionssegmentofNSE,SEBICommitteeonDisclosureandAccountingStandards,ManagingCommitteesofASSOCHAMandIMC,andCorporateGovernanceCommitteesofASSOCHAMandCII.HehasbeenawardedTheBestNonExecutiveIndependentDirectorAward-2007bytheAsianCentreforCorporateGovernanceandIMCinJanuary2008.

Board of Directors


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page 3.jpgBoard of Directors (contd.)

Name

Age

Total Work Experience

Mr. S.Santhanakrishnan

64

RetiredasDeputyManagingDirectorofSBIafterservingthem36years.AnindependentDirectoronBoard.HewasalsotheexecutiveChairmanofCreditInformationBureau(India)Limited(CIBIL).

Mr. K. S. Reddy

56

HehasbeeninIndianCivilServicesforover16yearsandworkedinMinistriesofPlanningandProgrammeImplementation,FoodProcessingIndustries,Defense,Communications,WelfareandTourismandCivilAviation.

Mr. VidyadharaRaoChalasani

64

Anadditional/independentdirectoronboard.Hehasoverthreedecadesexperienceinfinanci

alservices.Currently,heistheDirectorofAdviceAmerica(California,USA).During1987-2000,hewasthechiefinvestmentstrategistofWachoviaSecurities.

Mr. GhanshyamDass

57

HewastheManagingDirectorofNASDAQQMXforAsiaPacificuntilFebruary2009.HewasalsotheCEOofBritishBankofMiddleEastinIndia&MajanInternationalBankintheSultanateofOman.Currently,heistheSeniorAdvisorofKPMGandAdvisor,IntelCapital.

Mr. SateeshKumarAndra

41

Heisontheboardofstart-upslikeMetromelaInternetServicesPrivateLimited,GingerSoftMediaPrivateLimited,PressmartIndiaLimitedandMetrikusIndiaPrivateLimited,startedbyyoungandfirstgenerationentrepreneurs.HewasthePromoterandCEOofEUCLIDsoftware,aleadingproviderofBusinessIntelligenceforIT.HeisengagedasventurepartnerwithDFJ(DraperFisherJurvetson)India,whichlendssupporttoenterprisingentrepreneurs.


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page 3.jpgpage 3.jpgShareholding Pattern as on Dec 31, 2009

Stakeholders

December 31, 2009

September 30, 2009

Shares inmillion

%

Shares inmillion

%

Resident Individuals

30.0

46.86

27.9

43.55

Foreign Institutional Investors

14.8

23.15

14.9

23.30

Corporate Bodies

14.3

22.24

15.0

23.34

Non Resident Indians

3.6

5.63

3.5

5.46


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Banks / Financial Institutions

0.2

0.39

0.7

1.06

Others *

1.1

1.74

2.1

3.29

Total

64.1

100.00

64.1

100.00

* Includes insurance companies, Mutual funds, Trusts and Clearing members


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page 3.jpgFinancial Overview


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page 3.jpgpage 3.jpgBalance SheetRs. in crores

Particulars

Dec 31,2009

Sept 30,2009

June 30,2009

Mar 31,2009

Dec 31,2008

Y-O-Ygrowth

Capital

64

64

64

64

64

-

Reserves

378

377

371

360

346

9.3%

Deposits

6,002

5,629

5,070


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4,969

4,615

30.1%

Borrowings

299

140

38

-

-

-

Other Liabilities

406

407

249

250

232

75.1%

Total

7,149

6,618

5,792

5,643

5,256

36.0%

Cash & bankbalance

546

678

589

686


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965

(43.4)%

Investments

1,940

1,698

1,523

1,567

1,170

65.8%

Advances

4,391

4,002

3,489

3,196

2,939

49.4%

Fixed assets

55

48

46

46

44

24.9%

Other Assets

217

192

145

147

138

57.8%


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Total

7,149

6,618

5,792

5,643

5,256

36.0%


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page 3.jpgpage 3.jpgProfit and loss statement

ParticularsQ3 -

FY2010

Q3 -FY2009

Y-O-Ygrowth

9m -FY2010

9m -FY2009

Y-O-Ygrowth

Interest income

139.8

111.8

25.0%

384.1

293.5

30.9%

Interest expenses

100.6

74.4

35.2%

287.4

200.1

43.6%

Net interest income

39.2

37.4

4.8%

96.7


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93.4

3.5%

Non Interest income

16.6

12.1

37.2%

59.1

38.4

53.9%

Operating expenses

53.0

29.2

81.5%

128.8

81.9

57.3%

-Staffcost

30.2

16.6

81.9%

74.4

45.8

62.4%

Provisions

2.7

(4.0)

-

7.0

(1.3)

-


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Profit before tax

0.1

24.3

(99.6)%

20.0

51.2

(60.9)%

Provision for tax

(1.2)

7.4

-

2.3

16.0

(85.6)%

Profit after tax

1.3

16.9

(92.3)%

17.7

35.2

(49.7)%

Rs. in crores

Non interest income driven by an increased focus on fee based business


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page 3.jpgpage 3.jpgNet Interest Income

Rs. in croresParticulars

Q3 -FY2010

Q3 -FY2009

Y-O-Ygrowth

9m -FY2010

9m -FY2009

Y-O-Ygrowth

Interest Income

139.8

111.8

25%

384.1

293.5

31%

-from Advances

108.0

78.8

37%

304.0

204.0

49%

-from Investments

30.8

21.4


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44%

73.6

60.3

22%

-from balances withRBI / other banks

0.6

11.6

(95)%

4.5

29.2

(85)%

-Others

0.4

-

-

2.0

-

-

Interest Expenses

100.7

74.4

35%

287.4

200.1

44%

Net Interest Income

39.2

37.4

5%


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96.7

93.4

4%


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page 3.jpgpage 3.jpgTrend in Net Interest Margin

Margins improved on a sequential basis due to higher growth in low costdeposits from the new branches and renewed thrust on the SME segment2.38%

1.91%

2.52%

1.4%

1.6%1.8%

2.0%

2.2%

2.4%

2.6%

2.8%3.0%

Q1-2010Q2-2010Q3-2010


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page 3.jpgpage 3.jpgTrend in Operating expenses

13

16

17

171826

3012

1213

14

14

18

23

2528

29

31

32

44530

1020

3040

50

60

Q1-09

Q2-09

Q3-09Q4-09

Q1-10

Q2-10

Q3-10


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Rs. in croresOthersStaff cost


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page 3.jpgpage 3.jpgKey Ratios (%)

ParticularsQ3 -

FY2010

Q2 -FY2010Q1 -FY20109m -FY2010

9m -FY2009

Yield on Advances

10.41

10.55

11.46

10.81

12.04

Cost of Funds

6.36

6.86

7.22

6.78

7.06

Net Interest Margin

2.52

1.91

2.38

2.35

3.29

Cost / Income ratio

94.94

79.71


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71.15

82.67

62.14

Credit -Deposit ratio

75.31

74.17

71.04

75.31

69.52

Return on Equity

1.19

5.70

9.31

5.32

11.45

Return on Assets

0.07

0.50

0.71

0.37

1.07


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page 3.jpgpage 3.jpgKey Ratios (contd.)

Particulars

Dec 31,2009

Sept 30,2009

June 30,2009

Mar 31,2009

Dec 31,2008

Capital Adequacy Ratio

Basel I (%)

13.36

14.93

13.38

14.44

14.33

-Tier I

9.14

10.16

11.97

12.90

12.82

Basel II (%)

14.29

15.90

14.14

15.38

-


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-Tier I

9.78

10.81

12.65

13.75

-

Gross NPA ratio (%)

1.76

1.73

1.92

1.99

2.27

Net NPA ratio (%)

0.89

0.86

0.96

0.88

0.89

Gross NPAs (Rs. in crores)

77.88

70.26

67.96

64.43

67.76

Net NPAs (Rs. in crores)

39.14

34.43

33.70

28.24

26.12


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page 3.jpgpage 3.jpgParticulars

Dec 31,2009

Sept 30,2009

June 30,2009

Mar 31,2009

Dec 31,2008

Y-O-Ygrowth

CASA

1,323.6

1,244.9

1,126.0

1,207.6

1,166.3

13.5%

CASA (%)

22%

22%

22%

24%

25%

-

Term Deposits

4,678.5

4,384.6

3,944.6

3,761.1


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3,448.4

35.7%

Total Deposits

6,002.1

5,629.4

5,070.6

4,968.8

4,614.7

30.1%

Net Advances

4,390.6

4,001.8

3,488.6

3,196.1

2,938.8

49.4%

Rs. in crores

Credit -Deposit Growth

GrowthindepositsandadvancescontinuetobehigherthantheindustryaverageDepositsgrewby30%ascomparedtoindustrygrowthof18%Advancesroseby49%vis--vis14%increaseintheindustry


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page 3.jpgThank You


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page 3.jpgAppendix


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page 3.jpgPayment Services -Bill pay, Moneytransfer, charity,Religiousofferings, etc.

BillDiscounting, BGs,LCs, Workingcapitalfinance, Termloan, projectfinance etc.Retail Loans -Mortgages, Vehicle, Gold, Shares,Property etc.Credit / Debit

Card

Investment Banking

Third PartyProducts -MF, Insurance, Gold, Forex, Depositoryetc.

Liabilities -Current, Saving,Term, Recurring,Roaming account

etc.

LiabilityProducts

Loan Products

Transactionproducts

Product Suite


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page 3.jpg.Branch

.ATM

.Internet

Channel Development

Total touch points will increase to 726 as at March2010 from 279 as at March 2009


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page 3.jpgRegional Bank

All India BankPresence in 600locationsBranch network increased from 207 to 273

140 Locations covered


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page 3.jpgBranches -Old look

C:\Documents and Settings\Administrator\Desktop\New Folder\New pho\dlb existinginfra\chirakadavu br\140920091087.jpgC:\Documents and Settings\Administrator\Desktop\New Folder\New pho\dlb existing

infra\chirakadavu br\140920091085.jpgC:\Documents and Settings\Administrator\Desktop\New Folder\New pho\dlb existinginfra\chirakadavu br\140920091082.jpgPicture 007E:\sameer on 172.19.122.188\PPG\Financials\budget-11\dlb existing infra\chirakadavu br\080920091070.jpg


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page 3.jpgBranches -New look

2


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page 3.jpgEuronet

New Operational ATM

Proposed ATM

.Increasefrom73to453

.Paypertransaction

.No.oftransactionsrosefrom1.7lakhsp.m.to3.2lakhsp.m.

ATMs


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page 3.jpgOld Web sitesite1.gif


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page 3.jpgNew Web sitedhanbank.comInternet banking hits increased from 7 lakhs to 34 lakhsp.m.


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page 3.jpgBusiness Mix

Micro/Agri11%

TAG14%

WBG62%

Retail13%

High volume, lessmargin, less risky


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page 3.jpgBusiness Mix -Geographical44%

30%

56%

70%20%30%

40%50%60%

70%80%

31/03/2009

15/02/2010KeralaNon Kerala


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page 3.jpg.Change of culture at Branches from Lending to Liabilities.Dedicated sales team of 1,000 people.Focus on CASA -Average CASA deposits increased from Rs.1,054 crores (March 2009) to Rs. 1,275 crores (Feb 2010).30 to 1,000 new accounts per day

.Tapped deposits from new geographies / new clients

.Cross selling started

.Commenced Door step banking

Liabilities


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page 3.jpgEvolution into a contemporary and modernbrand identity

dhanalaksmi final logo copydlb logo

Dhanalakshmi_logodhanalakshmidhanalaksmi final logo copypage 3.jpg


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page 3.jpgUnveiling the new identity


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page 3.jpgPan India Signage and communicationunder new identitySTA60127.JPG100_3845101_1801STA60054.JPG


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page 3.jpgUnified CommunicationC:\Documents and Settings\Abid_Ansari\Desktop\Dhanlaxmi Bank\SDC16827.JPGC:\Documents and Settings\Abid_Ansari\Desktop\Dhanlaxmi Bank\IMG_0033.JPGC:\Documents and Settings\Abid_Ansari\Desktop\Dhanlaxmi Bank\IMG_0042.JPG


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page 3.jpgUnified Communication (contd.)VISITING CARD

LETTERHEAD


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page 3.jpgRecruited over 2,500 employeesIntroduction of ESOPsAverage employee age reduced to 34 years (Dec 2009)from 48 years (Sept 2008)Senior management team

Recruited senior management from IndustryFormed core team of existing and new members

Human Resources


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page 3.jpgAwards won at the World HRD CongressContinuous Innovation in HR Strategy at WorkMost Innovative Recruiting and Staffing Program / Initiative andRecruiting & Staffing Industry Leader of the YearOur Chairman Mr. G.N. Bajpaiwas honouredwith the Lifetime

Achievement Award under the Global HR Excellence Award categoryAwarded Best Employer Brand among private

sector banks by the Employer Branding Institute

in Southern Region

Human Resources (contd.)


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page 3.jpgSenior Management

Name

Designation

Qualification

Previous Org.

Exp.

Mr. Amitabh Chaturvedi

MD & CEO

CA

Reliance Capital, ICICI

18

Mr. Bipin Kabra

Chief Financial Officer

ICWAI, CA

Reliance Capital, ICICI,SBI

17

Mr. Manish Kumar

Head -HR & CSR

PGDPM

IDFC, Reliance, ICICI

15

Mr. Rajeev Deoras

Head -Wholesale Banking

B.E., CAIIB

KotakMahindra Bank,ICICI, SBI

25

Ms. SheranMehra

Head -Marketing


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MBA

Barclays, HSBC

11

Mr. SalilDatar

Head -Branch Banking

MMS

ICICI

19

Mr. Deepak Singh

Head -Insurance

PGBM

HDFC Sales

14

Ms. Jaya Janardanan

Head -Operations

M.Com, MFM

Brics Online Services,ICICI

14

Mr. S. Balasubramanian

Head -Trade & Advances

CA

Kotak Mahindra Bank

23

Mr. Manish Sarraf

Head -Treasury

MBA

Siemens, Citibank

17

Mr. AnandKumar Gupta

Head -Alternate Channels


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B.E.

ICICI

13

Mr. RajrishiSinghal

Head -Policy & Research

M.A.

Economic Times

24


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page 3.jpgSenior Management (contd.)

Name

Designation

Qualification

Previous Org.

Exp.

Mr. SachinSikka

AGM -New Delhi

BA, MBA

ICICI Bank

10

Mr. K.V. Ajay Kumar

AGM -Karnataka

B.Com.

Kotak Mahindra Bank

15

Mr. ParagKothari

Head -Investment Banking

B.E., MFM

CholamandalamDBS

19

Mr. V. VenkatKrishnan

AGM -IT Projects

MCA

HSBC, ICICI

14

Mr. SachinSaraf

AGM -Infrastructure

Diploma in Int.Designing and


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Decoration

HSBC

12

Mr. DilipJanardhanan

AGM -Regional Head, T.N.

MBA, AMFI, IRDA

Kotak Mahindra Bank

11

Mr. P Balachendil

AGM -Regional Head, Mumbai

B.E., CFA, PGDBA

Tata AIG GeneralInsurance

10

Mr. P. S. Sankaran

Dy. Zonal Head, Kerala

MBA, CAIIB

IndusIndBank

23

Mr. Venugopal

AGM -HR

MBA, MHRM,PGDCA

Reliance Capital

19

Mr. Raj Gaurav

AGM -HR

PGDM

CanaraHSBC LifeInsurance

10

Mr. J. Renganathan


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DGM -Credit

MLS

SBI

24


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page 3.jpgName

Designation

Qualification

Previous Org.

Exp.

Mr. LalitGupta

AGM -Corporate Banking

MIB

GE Capital

12

Mr. Rajesh Rajah

AGM -NRI

PGDM

ICICI Bank

14

Mr. VishalKukreja

AGM -HR

MBA

IDFC

7

Mr. Sureshkumar

AGM -HR

MSW

HDFC

11

Ms. Jayachandran

Zonal Head -Kerala

B.Com

HDFC Bank


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9

Mr. P.J. Manjunaath

AGM -Credit

CAIIB,DBF

IndusIndBank

30

Mr. KiranDeshwal

AGM -Corporate Banking

M.Sc., PG Dipl. inAgri. Business Mgmt.,CAIIB

BNP Paribas

7

Mr. Ashok Gupta

Zonal Head -West & East Zone

MMS,CAIIB

State Bank of India

27

Mr. NeerajMadhekar

Zonal Head -TAG, Rest of Mah.

MBA, CAIIB

ICICI Bank, Axis Bank

14

Mr. D. A. Dhananjaya

Head -Broking & Distribution

B.Com

Reliance Money

11

Mr. M. Guruvayurappan

Regional Head -Corporate

Banking

MBA


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ICICI Bank

17

Mr. M. Muralidharan

Senior Advisor to MD & CEO

M.A., CAIIB

BRICS Online Services,ICICI, SBI

24

Senior Management (contd.)


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page 3.jpgIMG00012datacenterOld order change yielding place to newcollage1ITPL Datacenter

New Managed Datacenter

ChemburChembur Branch IT New Infrastructure Setup


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page 3.jpgFreeing up Branch -62%38%55%

7%

BRANCH

CENTRALISATION

OUTSOURCED

CMSDP and TradingTrade FinanceCredit card operationsAccount openingLoan set upLogisticsClearingFD processingOutstation chequesECSCorporate salaryService deskCredit process

Branch Activities Vs. DCS / RPC CentralisedActivities


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page 3.jpgOperations and TechnologyMoving to a Managed Data centre modelEnd-to-end online tracking system for account opening formsBank carried out successful rollout ofLoan Flow software

Treasury Dealer Board and Core Treasury SolutionNew accounting system (Oracle Financial)Risk Management software

Upgrade to the latest version of Flex Cube in process


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page 3.jpgTreasury & Fee Income

TreasuryLeverage our Multichannel distribution networkInsurance distribution tie up with Bajaj Allianz

Mutual FundsBullion, IPO.s, D.mat, G-sec, E-broking, etc.

Online trading platform with DestimoneyLocker charges, LC / BG incomeCMS facilityTargets 35% of the revenue from fee income


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page 3.jpgTreasury

.Gilts trading business rose from nil to about 50-60 crores per day

.Fx volumes (interbank side) touched $300 million per month

.Two way Quote (market maker) from plain price taker

.New Fx customers added: Cooperative Banks, travel agencies, etc.

.Increase in Bank limits

.Selective rise in non-SLR business

.No equity investment during the year


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page 3.jpgTie up with five Mutual Funds.

.

.

.


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page 3.jpgOnline Trading

Competition.ICICI Direct with 19 lakhcustomers.Reliance Securities with 10 lakhcustomers

.India Infolinewith 3 lakhcustomersUniqueness of our offering

.Funds lying in the Bank account need not be segregatedUnique proposition in the industryBenefits to the Bank

.Increase in Savings account balance

.Customer stickiness increases

.Fee income arising out of service charges and broking income

C:\Documents and Settings\com111\Desktop\ICICIDirect-logo[1].gifC:\Documents and Settings\com111\Desktop\India-Infoline1[1].jpg

C:\Documents and Settings\com111\Desktop\reliance_securities_logo[1].jpg


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page 3.jpg


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page 3.jpgWhat is a Balanced Scorecard?At the highest level, the BalancedScorecard is a frameworkthat helpsorganizations translate strategyintooperational objectivesthat drive both

behavior and performance


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page 3.jpgpage 3.jpgTranslate the strategy to operational termsMeasurement is thelanguage that givesclarity to vague

conceptsMeasurement is usedto communicate, not tocontrolStrategy can bedescribed as a series ofcause and effectrelationship

The Strategy

Financial Perspective

"If we succeed, how will welook to our shareholders?"

Customer Perspective

"To achieve my vision, howmust I look to my customers?"

Organization Learning

"To achieve my vision, how mustmy organization learn &improve?"

Internal Perspective"To satisfy my customer, at whichprocess must I excel?"


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page 3.jpgThe ConclusionMeasurement must be linked to strategy

StrategyBalancedScorecard

Measurement to Communicate, not to ControlMeasurement communicates Values,Priorities and DirectionThe Premise

Premise behind the BSC


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page 3.jpgChanging Consumer DemographicsConsumerDemographics ofIndia

Increasingly affluent, with a bulging middleclassThe youngest population in the world65% of population below 35 years of ageRising savings rate >30%Increasing literacy levelsHigher adaptability to technologyUrbanization is a continuing trendIncreasing "consumption" mindset in India


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page 3.jpgGrowing Per capita GDPConsuming classpopulationestimated atabout 260 mn*Consuming

class populationestimated atabout 350 mn*2000: Per capita GDP$5002007: Per capita GDP$1,00035%growthConsuming classpopulationestimated atabout 600 mn*

2015: Per capita GDP$1,50070%growth

Per capita GDP to rise from $1,000 to $1,500: consumingpopulation to grow manifoldHowever, retail credit / GDP is at low at 10% as compared to37% in Malaysia and 59% in the TaiwanLow penetration leaves tremendous growth opportunity

* Estimates based on NCAER data. Consuming class comprises middle and high income households


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page 3.jpgRetail Products

MortgagesHome Loan, Commercial PropertyLAP, LRD

VehiclesCommercial vehiclesDealer fundingAuto loan

Construction EquipmentLoan against Gold / Securities


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page 3.jpgCapital raisingOverall requirement of Rs. 3,000 crores next 5 yearsTo raise Rs. 200 crores of Tier II capital by March 2010No capital dilution till September 2010

Issued Tier II capital of Rs. 150 crores to high net worth NRIsCARE and ICRA upgraded rating for Tier II capital by twonotches to A (minus)Higher Investment limits for FIIs/NRIsfrom 24% to 49% for FIIs and 10% to 24% for NRIs


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page 3.jpgFee Income -New productsE:\sameer on 172.19.122.188\PPG\Financials\budget-11\photo\gold-coins-images[1].jpgGold coinE:\sameer on 172.19.122.188\PPG\Financials\budget-11\photo\easy-forex-trading-online2[1].jpgForex / TCs / Fx Card


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page 3.jpgChannel Initiatives proposed for FY 2011Addition of about 500 ATMsFully functional Corporate Internet BankingRetail Internet Banking -enhancementsE-tax payments

Two factor authenticationVerified by VISA

Fully functional Customer Contact Center withIVR, Voice, Email, Chat

Launch of Mobile Banking


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