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<TITLE>HDFC BANK LIMITED</TITLE>
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
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<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>






<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 20-F</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(Mark One)

</DIV>
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<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" style="font-size: 12pt">
<TR style="font-size: 6pt">
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
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<TR valign="top">
    <TD align="center"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><B>REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g)&nbsp;OF THE
SECURITIES EXCHANGE ACT OF 1934</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>OR</B></DIV>

<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" style="font-size: 12pt">
<TR style="font-size: 6pt">
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD align="center"><FONT face="Wingdings">&#254;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><B>ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 12%"><B><B>For the fiscal year ended March&nbsp;31, 2006</B>
</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>OR</B></DIV>

<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" style="font-size: 12pt">
<TR style="font-size: 6pt">
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD align="center"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><B>TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>OR</B></DIV>

<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" style="font-size: 12pt">
<TR style="font-size: 6pt">
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD align="center"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><B>SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 12%"><B><B>Date of event requiring this shell company report </B><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 12%"><B><B>For the transition period from <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> to </B><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Commission file number 001-15216</B></DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>HDFC BANK LIMITED</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact name of registrant as specified in its charter)</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 12pt">Not Applicable<BR>
(Translation of Registrant&#146;s name into English)</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>India</B><BR>
(Jurisdiction of incorporation or organization)</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>HDFC Bank House,<BR>
Senapati Bapat Marg, Lower Parel, Mumbai- 400 013, India</B><BR>
(Address of principal executive offices)</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">Securities registered or to be registered pursuant to Section&nbsp;12(b) of the Act.</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
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<TR valign="bottom">
    <TD align="center" valign="top">Title of each class<BR>
<B>American Depositary Shares</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Name of each exchange on which registered<BR>
<B>The New York Stock Exchange</B></TD>
</TR>
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</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each representing three equity shares, par value Rs. 10 per share</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities registered pursuant to Section&nbsp;12(g) of the Act.<BR>
Not Applicable<BR>
(Title of Class)</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities for which there is a reporting obligation pursuant to Section&nbsp;15(d) of the Act.<BR>
Not Applicable<BR>
(Title of Class)</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate the number of outstanding shares of each of the issuer&#146;s classes of capital or
common stock as of the close of the period covered by the annual report.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>313,142,408 Equity Shares</B></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in
Rule&nbsp;405 of the Securities Act.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 10pt"><FONT face="Wingdings">&#254;</FONT> Yes <FONT face="Wingdings">&#111;</FONT> No
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If this report is an annual or transition report, indicate by check mark if the
registrant is not required to file reports pursuant to
Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 10pt"><FONT face="Wingdings">&#111;</FONT> Yes <FONT face="Wingdings">&#254;</FONT> No
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Note &#150; Checking the box above will not relieve any registrant required to file reports
pursuant to Section&nbsp;13 or 15(d) of the
Securities Exchange Act of 1934 from their obligations under those Sections.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark whether the registrant (1)&nbsp;has filed all reports required to be filed by
Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12&nbsp;months (or
for such shorter period that the registrant was required to file such reports), and (2)&nbsp;has
been subject to such filing requirements for the past 90&nbsp;days.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 0pt"><FONT face="Wingdings">&#254;</FONT>
Yes <FONT face="Wingdings">&#111;</FONT> No
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, or a non-accelerated filer. See
definition of &#147;accelerated filer and large accelerated filer&#148; in Rule&nbsp;12b-2 of the Exchange
Act. (Check one):
</DIV>

<DIV align="center" style="font-size: 10pt">Large accelerated filer <FONT face="Wingdings">&#254;</FONT> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accelerated filer <FONT face="Wingdings">&#111;</FONT> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-accelerated filer <FONT face="Wingdings">&#111;</FONT></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark which financial statement item the registrant has elected to
follow.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 0pt"><FONT face="Wingdings">&#111;</FONT> Item&nbsp;17 <FONT face="Wingdings">&#254;</FONT> Item&nbsp;18
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If this is an annual report, indicate by check mark whether the registrant is a shell
company (as defined in Rule&nbsp;12b-2 of the Exchange Act).
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 0pt"><FONT face="Wingdings">&#111;</FONT>
Yes <FONT face="Wingdings">&#254;</FONT> No
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">September&nbsp;29, 2006
</DIV>


<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>






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<A name="tocpage"></A>
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt">&nbsp; 2
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>TABLE OF CONTENTS</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
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<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#101"><B>CROSS REFERENCE SHEET</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#102"><B>EXCHANGE RATES</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>5</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#103"><B>FORWARD LOOKING STATEMENTS</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>7</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#104"><B>BUSINESS</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>8</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#105"><B>RISK FACTORS</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>29</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#106"><B>PRICE RANGE OF OUR AMERICAN DEPOSITARY SHARES AND EQUITY SHARES</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>39</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#107"><B>DESCRIPTION OF EQUITY SHARES</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>41</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#108"><B>DIVIDEND POLICY</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>42</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#109"><B>SELECTED FINANCIAL AND OTHER DATA</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>43</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#110"><B>SELECTED STATISTICAL INFORMATION</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>47</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#111"><B>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>62</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#112"><B>MANAGEMENT</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>82</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#113"><B>PRINCIPAL SHAREHOLDERS</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>97</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#114"><B>RELATED PARTY TRANSACTIONS</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>98</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#115"><B>TAXATION</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>101</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#116"><B>SUPERVISION AND REGULATION</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>108</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#117"><B>EXCHANGE CONTROLS</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>122</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#118"><B>RESTRICTIONS ON FOREIGN OWNERSHIP OF INDIAN SECURITIES</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>123</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#119"><B>ADDITIONAL INFORMATION</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>124</B></TD>
    <TD>&nbsp;</TD>
</TR>
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<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h00772exv12w1.htm">EX-12.1 CERTIFICATION BY MD UNDER SECTION 302</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h00772exv12w2.htm">EX-12.2 CERTIFICATION OF CFO UNDER SECTION 302</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h00772exv13.htm">EX-13 CERTIFICATION OF MD & CFO UNDER SECTION 906</A></FONT></TD></TR>
</TABLE>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
<DIV align="left">
<A name="101"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CROSS REFERENCE SHEET</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="39%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="39%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">1</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Form 20-F Item</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Item Caption</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Location</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3" style="border-bottom: 1px solid #000000"><B>Page</B></TD>
</TR>

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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Part I</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Item&nbsp;1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Identity of Directors, Senior
Management and Advisors
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Not Applicable</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Item&nbsp;2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Offer Statistics and Expected Timetable
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Not Applicable</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Item&nbsp;3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Key Information
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exchange Rates
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">5</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Risk Factors
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">29</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Selected Financial and Other Data
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">43</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Item&nbsp;4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Information on the Company
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Business
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">8</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Selected Statistical Information
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">47</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Management&#146;s Discussion and Analysis
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">62</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Principal Shareholders
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">97</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Related Party Transactions
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">98</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Supervision and Regulation
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">108</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Item&nbsp;5
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Operating and Financial Review and
Prospects
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Management&#146;s Discussion and Analysis
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">62</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Item&nbsp;6
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">Directors, Senior Management and Employees
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Business &#150; Employees
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">27</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Management
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">82</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Principal Shareholders
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">97</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Item&nbsp;7
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">Major Shareholders and Related
Party Transactions
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Principal Shareholders
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">97</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Related Party Transactions
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">98</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Item&nbsp;8
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Financial Information
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Financial Statements
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">F-1</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Item&nbsp;9
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Offer and Listing
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Price Range of Our American
Depositary Share and Equity Shares
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">39</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Item&nbsp;10
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Additional Information
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Management
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">82</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Description of Equity Shares
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">41</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Taxation
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">101</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Supervision and Regulation
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">108</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exchange Controls
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">122</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">Restrictions on Foreign Ownership
of Indian Securities
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">123</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Additional Information</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">124</TD>
    <TD valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Item&nbsp;11
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">Quantitative and Qualitative Disclosures About Market Risk
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Business &#151; Risk Management
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">21</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Selected Statistical Information
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">47</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Notes to Financial Statements
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">F-7</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Item&nbsp;12
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Description of Securities Other than
Equity Securities
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Not Applicable</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="39%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="39%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">1</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Form 20-F Item</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Item Caption</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Location</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3" style="border-bottom: 1px solid #000000"><B>Page</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Part II</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Item&nbsp;13
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Defaults, Dividend Arrearages and
Delinquencies
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Not Applicable</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Item&nbsp;14
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Material Modifications to the Rights
of Security Holders and Use of
Proceeds
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Not Applicable</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Item&nbsp;15
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Controls and Procedures
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Management&#151; Controls and Procedures
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">91</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Item&nbsp;16A
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Audit Committee Financial Expert
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Management&#151;Audit Committee Financial
Expert
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">92</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Item&nbsp;16B
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Code of Ethics
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Management&#151; Code of Ethics
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">92</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Item&nbsp;16C
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Principal Accountant Fees and Services
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Management&#151;
Principal Accountant Fees and Services
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">92</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Part III</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Item&nbsp;18
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Financial Statements
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Financial Statements
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">F-1</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Report of Independent Auditors
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">F-2</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Item&nbsp;19
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exhibits
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exhibits</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->5<!-- /Folio -->
<DIV align="left">
<A name="102"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXCHANGE RATES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In this document, all references to &#147;we,&#148; &#147;us,&#148; &#147;our,&#148; &#147;HDFC Bank&#148; or &#147;the Bank&#148; shall mean
HDFC Bank Limited or where the context requires also to its
subsidiaries whose financials are consolidated for accounting
purposes. References to the &#147;U.S.&#148; or
&#147;United States&#148; are to the United States of America, its territories and its possessions.
References to &#147;India&#148; are to the Republic of India. References to &#147;$&#148; or &#147;US$&#148; or &#147;dollars&#148; or
U.S. dollars&#148; are to the legal currency of the United States and
references to &#147;Rs.&#148; or &#147;rupees&#148; or
&#147;Indian rupees&#148; are to the legal currency of India.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our financial statements are presented in Indian rupees and in some cases translated into U.S.
dollars. The financial statements and all other financial data included in this statement are
prepared in accordance with United States generally accepted accounting principles, or U.S. GAAP.
References to a particular &#147;fiscal&#148; year are to our fiscal year ended March&nbsp;31 of such year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fluctuations in the exchange rate between the Indian rupee and the U.S. dollar will affect the U.S.
dollar equivalent of the Indian rupee price of the equity shares on the Indian stock exchanges and,
as a result, will affect the market price of our American Depositary Shares (&#147;ADSs&#148;) in the United
States. These fluctuations will also affect the conversion into U.S. dollars by the depositary of
any cash dividends paid in Indian rupees on the equity shares represented by ADSs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From 1980 until fiscal 2002, the rupee consistently depreciated against the dollar. In fiscal 2004
and 2005 the Indian rupee appreciated compared to fiscal 2003. The rupee&#146;s appreciation was due to
remittances from exporters and non-resident Indians, foreign direct investment and foreign
institutional investor inflows, along with the weakening of the U.S. dollar against major
currencies. However in 2006 the rupee has again shown a tendency to depreciate against the US
dollar. This is mainly due to higher crude prices and increase of interest rates in the U.S.
market.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth, for the periods indicated, information concerning the exchange
rates between Indian rupees and U.S. dollars based on the noon buying rate in the city of New York
for cable transfers of Indian rupees as certified for customs purposes by the Federal Reserve Bank
of New York:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Fiscal Year</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Period End</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Average</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(1)(2)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>High</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Low</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2002</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48.83</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47.81</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48.91</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46.58</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2003</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47.53</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48.36</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49.07</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47.53</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2004</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43.40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45.78</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47.46</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43.40</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2005</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43.62</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44.87</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46.45</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43.27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2006</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44.48</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44.17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46.26</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43.05</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>The noon buying rate at each period end and the average rate for each period
differed from the exchange rates used in the preparation of our financial statements.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents the average of the noon buying rate for all days during the period.</TD>
</TR>

</TABLE>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->6<!-- /Folio -->




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the high and low noon buying rate for the Indian rupee for each of
the previous six months:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Month</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Period End</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>High</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Low</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">March</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44.48</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44.34</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44.58</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44.09</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">April</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44.86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44.82</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45.09</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44.39</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">May</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46.22</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45.20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46.22</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44.69</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">June</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45.87</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45.89</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45.50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">July</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46.52</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46.37</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46.83</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45.84</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46.43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46.45</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46.61</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46.32</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although we have translated selected Indian rupee amounts in this document into U.S. dollars
for convenience, this does not mean that the Indian rupee amounts referred to could have been, or
could be, converted to U.S. dollars at any particular rate, the rates stated above, or at all. All
translations from Indian rupees to U.S. dollars are based on the noon buying rate in the City of
New York for cable transfers in Indian rupees at US$ 1.00 = Rs. 44.48 on March&nbsp;31, 2006. The Federal
Reserve Bank of New York certifies this rate for customs purposes on each date the rate is given.
The noon buying rate on September&nbsp;29, 2006 was Rs. 45.95 per US$ 1.00.
</DIV>

</DIV>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->7<!-- /Folio -->


<DIV align="left">
<A name="103"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>FORWARD LOOKING STATEMENTS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have included statements in this report which contain words or phrases such as &#147;will,&#148;
&#147;aim,&#148; &#147;will likely result,&#148; &#147;believe,&#148; &#147;expect,&#148; &#147;will continue,&#148; &#147;anticipate,&#148; &#147;estimate,&#148;
&#147;intend,&#148; &#147;plan,&#148; &#147;contemplate,&#148; &#147;seek to,&#148; &#147;future,&#148; &#147;objective,&#148; &#147;goal,&#148; &#147;project,&#148; &#147;should,&#148;
&#147;will pursue&#148; and similar expressions or variations of these expressions, that are &#147;forward-looking
statements&#148;. Actual results may differ materially from those suggested by the forward-looking
statements due to certain risks or uncertainties associated with our expectations with respect to,
but not limited to, our ability to implement our strategy successfully, the market acceptance of
and demand for various banking services, future levels of our non-performing loans, our growth and
expansion, the adequacy of our allowance for credit and investment losses, technological changes,
volatility in investment income, cash flow projections and our exposure to market and operational
risks. By their nature, certain of the market risk disclosures are only estimates and could be
materially different from what may actually occur in the future. As a result, actual future gains,
losses or impact on net income could materially differ from those that have been estimated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, other factors that could cause actual results to differ materially from those
estimated by the forward-looking statements contained in this document include, but are not limited
to: general economic and political conditions in India and the other countries which have an impact
on our business activities or investments; the monetary and interest rate policies of the
government of India; inflation, deflation, unanticipated turbulence in interest rates, foreign
exchange rates, equity prices or other rates or prices; the performance of the financial markets in
India and globally; changes in Indian and foreign laws and regulations, including tax, accounting
and banking regulations; changes in competition and the pricing environment in India; and regional
or general changes in asset valuations. For further discussion on the factors that could cause
actual results to differ, see &#147;Risk Factors&#148;.
</DIV>

</DIV>
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<DIV align="left">
<A name="104"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>BUSINESS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Overview</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are a leading private sector bank and financial services company in India. Our goal is to
be the preferred provider of financial services to upper and middle income individuals and leading
corporations in India. Our strategy is to provide a comprehensive range of financial products and
services for our customers through multiple distribution channels, with high quality service and
superior execution. We have three principal business activities: retail banking, wholesale banking
and treasury operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have grown rapidly since commencing operations in January&nbsp;1995. In the five years ended March
31, 2006, we expanded our operations from 131 branches and 207 ATMs in 53 cities to 535 branches
and 1323 ATMs in 228 cities. During the same five years, our customer base grew from 0.9&nbsp;million
customers to 9.6&nbsp;million customers. As our geographical reach and market penetration have expanded,
so too have our assets, which grew from Rs. 161.1&nbsp;billion as of
March&nbsp;31, 2001 to Rs. 791.0&nbsp;billion
as of March&nbsp;31, 2006. Our net income has increased from Rs. 2.1&nbsp;billion for fiscal 2001 to Rs. 9.2
billion for fiscal 2006 at a compounded annual growth rate of 33.9%.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding our pace of growth, we have maintained a strong balance sheet and a low cost of
funds. As of March&nbsp;31, 2006, net non-performing customer assets (which consist of loans and credit
substitutes) constituted 0.4% of net customer assets. In addition, our net customer assets
represented 72.7% of our deposits and customer deposits represented
70.5% of our total liabilities
and shareholders equity. The average non-interest bearing current accounts and low-interest savings
accounts represented 57.0% of total deposits for the year ended March&nbsp;31, 2006. These low-cost
deposits, which include the cash float associated with our transactional services, led to an
average cost of funds excluding equity for the fiscal year ended March&nbsp;31, 2006 of 3.4%, which we
believe is one of the lowest of all banks in India.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are part of the HDFC group of companies founded by our parent, Housing Development Finance
Corporation Limited (&#147;HDFC Limited&#148;), a public limited company established under the laws of India.
HDFC Limited and its subsidiaries owned approximately 22.0% of our outstanding equity shares as of
March&nbsp;31, 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our principal corporate and registered office is located at HDFC Bank House, Senapati Bapat Marg,
Lower Parel, Mumbai 400 013, India. Our telephone number is 91-22-6652-1000. Our agent in the
United States is CT Corporation System, 111, 8<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> Avenue, New York, NY 10011
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Our Competitive Strengths</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We attribute our growth and continuing success to the following competitive strengths:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>We are a leader among Indian banks in our use of technology</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Since our inception, we have made substantial investments in our technology platform and systems.
We have built multiple distribution channels, including an electronically linked branch network,
automated telephone banking, internet banking and banking by mobile phone, to offer customers
convenient access to our products. Our technology platform has also driven the development of
innovative products and reduced our operating costs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>We deliver high quality service with superior execution</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Through intensive staff training and the use of our technology platform, we deliver efficient
service with rapid response time. Our focus on knowledgeable and personalized service draws
customers to our products and increases the loyalty of the existing customers.
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>We offer a wide range of products to our clients in order to service their banking needs.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Whether in retail or wholesale banking, we consider ourselves a &#147;one-stop shop&#148; for our customers&#146;
banking needs. Our broad array of products creates multiple cross-selling opportunities for us and
improves our customer retention rates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>We have an experienced management team.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Most of the members of our senior management team have been with us since inception. They have
substantial experience in multinational banking and share our common vision of excellence in
execution. We believe this team is well suited to leverage the competitive strengths we have
already developed as well as to create new opportunities for our business.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Our Business Strategy</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our business strategy emphasizes the following elements:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Increase our market share in India&#146;s expanding banking and financial services industry</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to benefiting from the overall growth in India&#146;s economy and financial services
industry, we believe we can increase our market share by continuing to focus on our competitive
strengths. We also aim to increase geographical and market penetration by expanding our branch and
ATM network and increasing our efforts to cross-sell our products.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Maintain our current high standards for asset quality through disciplined credit risk
management</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have maintained high quality loan and investment portfolios through careful targeting of our
customer base, a comprehensive risk assessment process and diligent risk monitoring and remediation
procedures. Our ratio of gross non-performing assets to customer assets was 1.2% as of March&nbsp;31,
2006 and our net non-performing assets amounted to 0.4% of net customer assets. We believe we can
maintain our asset quality while still achieving growth.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Maintain a low cost of funds</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of March&nbsp;31, 2006, our average cost of funds excluding equity was 3.4%. We believe we can
maintain this low-cost funding base by expanding our base of retail savings and current deposits
and increasing the free float generated by transaction services such as cash management and stock
exchange clearing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Focus on high earnings growth with low volatility</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our aggregate earnings have grown at a compound average rate of 33.9% per year during the five-year
period ending March&nbsp;31, 2006 and our basic earnings per share grew from Rs. 22.78 for fiscal 2005
to Rs. 29.45 for fiscal 2006. We intend to maintain our focus on earnings growth with low volatility
through conservative risk management techniques and low cost funding. In addition, we intend not to
rely heavily on revenue derived from trading so as to limit volatility.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Our Principal Business Activities</I></B>
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our principal banking activities consist of retail banking, wholesale banking and treasury
operations. The following table sets forth our net revenues attributable to each area for the last
three years.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="16" style="border-bottom: 1px solid #ffffff"><B>Year ended March 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2" style="border-bottom: 1px solid #ffffff"><B>2004</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2" style="border-bottom: 1px solid #ffffff"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2" style="border-bottom: 1px solid #ffffff"><B>2006</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2" style="border-bottom: 1px solid #ffffff"><B>2006</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14">(In millions, except percentage)</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 0px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Retail banking</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">8,847.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">13,037.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">23,293.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">75.1</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wholesale banking</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,653.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,192.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,256.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">26.6</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Treasury operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,461.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">919.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(527.1</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1.7</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net revenue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">14,962.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">21,149.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">31,022.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Retail Banking</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Overview</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We consider ourselves a one-stop shop for the financial needs of upper and middle-income
individuals. We provide a comprehensive range of financial products including deposit products,
loans, credit cards, debit cards, third-party mutual funds and insurance products, investment
advice, bill payment services and other services. We offer high quality service and greater
convenience by leveraging our technology platforms and multiple distribution channels. Our goal is
to provide banking and financial services to our retail customers on an &#147;any time, any where, any
how&#148; basis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We market our services aggressively through our branches and direct sales associates, as well as
through our relationships with automobile dealers and corporate clients. We seek to establish a
relationship with a retail customer and then expand it by offering more products and expanding our
distribution channels so as to make it easier for the customer to do business with us. We believe
this strategy, together with the general growth of the Indian economy and the Indian upper and
middle classes, affords us significant opportunities for growth. We consider upper and
middle-income individuals to be those with Rs. 100,000 or more per year in income.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of March&nbsp;31, 2006, we had 535 branches, including 23 extension counters, and 1,323 ATMs in 228
cities. We also provide telephone banking in 189 cities as well as internet and mobile banking. We
plan to continue to expand our branch and ATM network as well as our other distribution channels.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Retail Loans and Other Asset Products</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We offer a wide range of retail loans, including loans for the purchase of automobiles, two
wheelers and commercial vehicles, personal loans, loans against securities, and credit cards. Our
retail loans were 57.2% of our gross loans as of March&nbsp;31, 2006. Apart from our branches we use our
ATM screens and the internet to promote our loan products and we employ additional sales methods
depending on the type of products. Because there is no well-established credit bureau in India, we
perform our own credit analyses of the borrowers and the value of the collateral. See &#147;&#151; Risk
Management &#151; Credit Risk &#151; Retail Credit Risk&#148;. We also buy mortgage and other asset backed
securities and invest in retail loan portfolios through assignments. In addition to taking
collateral in many cases, we generally obtain post-dated checks covering all payments at the time a
retail loan is made. It is a criminal offense in India to issue a bad check. We also sometimes
obtain irrevocable instructions to debit the customer&#146;s account directly for the making of
payments.
</DIV>

</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table shows the value and share of our retail credit products:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>As of March 31, 2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>% of Total</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>No. of Loans</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>Value</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Value</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>(In thousands)</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>(In millions)</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Retail Loans:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Auto loan.<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">117</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">51,184.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">1,150.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">18.7</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Commercial vehicles and construction
equipment finance.<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP> </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">64</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,613.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">980.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Personal loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">282</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,775.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,074.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Loans against securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,669.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">397.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Two wheeler loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">651</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,661.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">442.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Retail business banking</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,291.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">658.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Credit cards.<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,417</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,758.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">309.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other retail loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">149</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,347.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">142.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total retail loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,720</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">229,301.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,155.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">83.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage backed securities (home loans)<SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,054.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">383.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Asset backed securities <SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,126.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">609.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000; border-top: 0px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total retail assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">273,482.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">6,148.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000; border-top: 0px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Net of receivables securitized.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Number of cards in force.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Reflected at fair value.</TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Auto Loans</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We offer secured loans at fixed interest rates for financing new and used automobile purchases. In
addition to our general marketing efforts for retail loans, we market this product through
relationships with car dealers, corporate packages and joint promotion programs with automobile
manufacturers in more than 1,000 locations across India.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Commercial Vehicles and Construction Equipment Finance</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We provide secured financing for commercial vehicles and provide working capital, bank guarantees
and trade advances to customers who are transportation operators. In addition to the funding of
domestic assets, we also finance imported assets for which we open foreign letters of credit and
offer treasury services such as forward exchange cover. We coordinate with manufacturers to jointly
promote our financing options to their clients. Prior to fiscal 2004, these loans were classified
as part of our wholesale banking division.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Personal Loans</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We offer unsecured personal loans at fixed rates to specific customer segments, including salaried
individuals and self-employed professionals.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Loans against Securities</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We offer loans against equity shares, mutual fund units, bonds issued by the Reserve Bank of India
(&#147;RBI&#148;) and other securities that are on our approved list. We limit our loans against equity
shares to Rs. 2.0&nbsp;million per retail customer in line with regulatory guidelines and limit the
amount of our total exposure secured by particular securities. We lend only against shares in
book-entry (dematerialized)&nbsp;form, which ensures that
</DIV>




</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->12<!-- /Folio -->


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">we obtain perfected and first priority
security interests. The minimum margin for lending against shares is prescribed by the RBI.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Two Wheeler Loans</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We offer loans for financing the purchase of new scooters or motorcycles. We market this product in
ways similar to auto loans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Retail Business Banking</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We offer business loans, which we consider a retail product, to address the borrowing needs of
the community of small businessmen near our bank branches by offering facilities such as credit
lines, term loans for expansion/addition of facilities, discounting of credit card receivables,
letters of credit, guarantees and other basic trade finance products and cash management services
for their businesses. The lending is typically secured with current assets as well as immovable
property and fixed assets in some cases.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Credit Cards</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have
offered titanium gold and silver VISA and MasterCard credit cards since December&nbsp;2001 and have
approximately 2.4&nbsp;million cards in force as of March&nbsp;31, 2006 as against 1.3&nbsp;million as of March
31, 2005. This increase was possible due to focused and stepped up marketing efforts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Other Retail Loans</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Such loans primarily include overdrafts against time deposits.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Mortgage- Backed Securities (Home Loans</I></B><I>)</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In fiscal 2003 we entered the home loan business through an arrangement with HDFC Limited. Under
this arrangement, we sell home loans provided by HDFC Limited, which approves and disburses the
loans. The loans are booked in the books of HDFC Limited, and we are paid a sourcing fee. Under the
arrangement, HDFC Limited offers us up to 70% of the fully disbursed home loans sourced under the
arrangement through the issue of mortgage-backed pass-through certificates (&#147;PTCs&#148;). We purchase
the mortgage backed PTCs at the underlying home loan yields less a fee paid to HDFC Limited for
administration and servicing of the loans. A part of the home loans also qualifies for our directed
lending requirement. We also invest in mortgage-backed securities of other originators. Most of
these securities also qualify toward our directed lending obligations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Asset-Backed Securities</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We invest in auto, two wheeler, commercial vehicle and other asset backed securities, represented
by PTCs. These securities are normally credit enhanced and sometimes qualify for our directed
lending requirements.
</DIV>


</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->13<!-- /Folio -->


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Sale/Transfer of Receivables</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The bank from time to time securitizes out its receivables to special purpose vehicles. In respect
of certain transactions, we provide credit enhancements generally in the form of cash
collaterals/guarantees/interest spreads and/or by subordination of cash flows to senior PTCs (Pass
Through Certificates). The Bank also enters into sale transactions, which are similar to asset backed securitization transactions through the SPE route, except that such portfolios of receivables are assigned directly to the purchaser and are not represented by pass-through certificates. During fiscal 2005 and 2006, we securitized loans with carrying values of
Rs. 48.0&nbsp;billion and Rs. 19.9&nbsp;billion, respectively. In respect of some of the PTCs, we provide
options to the investors to sell them to us at predetermined dates and these options are
exercisable at par. Principal outstanding on the puttable PTCs as of
March&nbsp;31, 2006 was Rs. 108.6
million. All such puttable PTCs are exercisable within a year and Rs. 21.2&nbsp;million within two years.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Retail Deposit Products</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retail deposits provide us with a low cost, stable funding base and have been a key focus area for
us since commencing operations. Retail deposits represented 62.3% of our total deposits as of March
31, 2006. The following chart shows the number of accounts and value of our retail deposits by our
various deposit products:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19" style="border-bottom: 1px solid #ffffff"><B>At March 31, 2006</B></TD>
</TR>

<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="19" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>% of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>No of accounts</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #ffffff"><B>Value ( in millions )</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #ffffff"><B>total</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #ffffff"><B>( in thousands )</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #ffffff"><B>% of total</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="19" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Savings </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">153,072.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">3,441.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">44.1</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,480.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">78.7</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Current </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70,781.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,591.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">558.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Time </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">123,489.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,776.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">651.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="19" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">347,343.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">7,809.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,691.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="19" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our individual retail account holders avail the benefits of a wide range of direct banking
services, including debit and ATM cards, access to our growing branch and ATM network, access to
our other distribution channels and eligibility for utility bill payments and other services. Our
retail deposit products include the following:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">

<TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&nbsp;&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Savings accounts, which are demand deposits in checking accounts designed primarily for individuals and trusts. These
accrue interest at a fixed rate set by the RBI (currently 3.5% per annum).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&nbsp;&#167;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Current accounts, which are non-interest-bearing checking accounts designed primarily for small businesses. Customers
have a choice of regular and premium product offerings with different minimum average quarterly account balance
requirements.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&nbsp;&#167;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Time deposits, which pay a fixed return over a predetermined time period.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We also offer special value-added accounts, which offer our customers added value and convenience.
These include a time deposit account that allows for automatic transfers from a time deposit
account to a savings account, as well as a time deposit account with an automatic overdraft
facility of up to 90% of the balance in the account. E-Broking accounts are offered as current
accounts to customers of stock brokers where all transactions are routed electronically between the
broker and beneficiaries.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Debit Cards</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our international debit card allows our customers to purchase goods and make ATM transactions in
India as well as abroad. Our debit cards may be used with more than 310,000 merchants and over
18,000 ATMs in India and more than 23&nbsp;million merchants and 1.15&nbsp;million ATMs worldwide. We were
the first in India to issue international Visa Electron debit cards on a nationwide basis and
currently issue both Visa Electron and MasterCard Maestro cards.
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->14<!-- /Folio -->


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Individual Depositary Accounts</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We provide depositary accounts to individual retail customers for holding debt and equity
instruments. Securities traded on the Indian exchanges are generally not held through a broker&#146;s
account or in street name. Instead, an individual will have his own account with a depositary
participant for the particular exchange. Depositary participants, including us, provide services
through the major depositaries established by two major stock exchanges. Depositary participants
record ownership details and effectuate transfers in book-entry form on behalf of the buyers and
sellers of securities. We provide a complete package of services, including account opening,
registration of transfers and other transactions and information reporting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Mutual Fund Sales</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We offer our retail customers units in most of the large and reputable mutual funds in India. We
earn front-end commissions for new sales and in some cases additional fees in subsequent years. We
distribute mutual fund products primarily through our branches and our private banking advisors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Insurance</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have arranged with HDFC Standard Life Insurance Company and HDFC Chubb Limited to distribute
their life insurance products and general insurance products to our customers. We earn upfront
commissions on new premiums collected as well as some trailing income in subsequent years while the
policy is still in force.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Investment Advice</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We offer our customers a broad range of investment advice including advice regarding the purchase
of Indian debt, equity shares, and mutual funds. We provide our high net worth private banking
customers with a personal investment advisor to consult them on their individual investment needs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Bill Payment Services</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We offer our customers utility bill payment services for more than 77 leading utility companies
including electricity, telephone, mobile phone and leading internet service providers. Customers
can also review and access their bill details through our direct banking channels. This service is
valuable to customers because utility bills must otherwise be paid in person in India. Although
other banks offer this service, we believe we are one of the few banks to offer it through multiple
distribution channels &#151; ATMs, telephone banking, internet banking and mobile telephone banking.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Corporate Salary Accounts</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We offer Corporate Salary Accounts, which allow employers to make salary payments to a group of
employees with a single transfer. We then transfer the funds into the employees&#146; individual
accounts, and offer them preferred services, such as preferential loan rates, and in some cases
lower minimum balance requirements. As of March&nbsp;31, 2006, these accounts constituted approximately
48% of our total savings accounts by number and approximately 34% of our retail savings deposits by
value.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Non-Resident Indian Services</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-resident Indians are an important target market segment for us given their relative affluence
and strong ties with family members in India. Our non-resident deposits amounted to Rs. 37.2
billion as of March&nbsp;31, 2006,
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->15<!-- /Folio -->


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Customers and Marketing</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our target market for our retail services comprises upper and middle-income persons and high net
worth customers. We also target small businesses, trusts and non-profit corporations. As of March
31, 2006, 3.5% of our retail customers contributed approximately 44% of our retail deposits. We
market our products through our branches, telemarketing and a dedicated sales staff for niche
market segments. We also use third-party agents and direct sales associates to market certain
products and to identify prospective new customers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additionally, we obtain new customers through joint marketing efforts with our wholesale banking
department, such as our Corporate Salary Account package, and by cross-selling our retail products
to customers we obtain through our capital markets transactional services. We also market our auto
loan and two wheeler loan products through joint efforts with relevant manufacturers and
distributors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have programs that target other particular segments of the retail market. For example, our
private and preferred banking programs provide customized financial planning to high net worth
individuals in order to preserve and enhance their wealth. Private banking customers receive a
personal investment advisor who serves as their single-point HDFC Bank contact, and who compiles
personalized portfolio tracking products, including mutual fund and equity tracking statements. Our
private banking program also offers equity investment advisory products. While not as service
intensive as our private banking program, preferred banking offers similar services to a slightly
broader target segment. Top revenue-generating customers of our preferred banking program are
channeled into our private banking program.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Wholesale Banking</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Overview</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We provide our corporate and institutional clients a wide array of commercial banking products and
transactional services with an emphasis on high quality customer service and relationship
management.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our principal commercial banking products include a range of financing products, documentary
credits (primarily letters of credit) and bank guarantees, foreign exchange and derivative products
and corporate deposit products. Our financing products include loans, bill discounting and credit
substitutes, such as commercial paper, debentures and other funded products. Our foreign exchange
and derivatives products assist corporations in managing their currency and interest rate
exposures.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For our commercial banking products, we generally target the top end of the Indian corporate
sector, including companies that are part of the large private sector business houses, large public
sector enterprises and multinational corporations, as well as leading small and mid-sized
businesses. We also target suppliers and distributors of top-end corporations as part of a supply
chain initiative for both our commercial banking products and transactional services whereby we
provide credit facilities to these suppliers and distributors and thereby establish relationships
with them. We aim to provide our corporate customers with high quality customized service. We have
relationship managers who focus on particular clients and who work with teams that specialize in
providing specific products and services, such as cash management and treasury advisory services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our principal transactional services include cash management services, capital markets
transactional services and correspondent banking services. We provide physical and electronic
payment and collection mechanisms to a range of corporations, financial institutions and government
entities. Our capital markets transactional services include custodial services for mutual funds
and clearing bank services for the major Indian stock exchanges and the newly created commodity
exchanges. In addition, we provide correspondent banking services, including cash management
services and funds transfers, to foreign banks and cooperative banks.
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->16<!-- /Folio -->



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Commercial Banking Products</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Commercial Loan Products and Credit Substitutes</I></B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our principal financing products are working capital facilities and term loans. Working capital
facilities consist of cash credit facilities and bill discounting. Cash credit facilities are
revolving credits provided to our customers that are secured by working capital such as inventory
and accounts receivable. Bill discounting consists of short term loans which are secured by bills
of exchange that have been accepted by our customers or drawn on another bank. In many cases, we
provide a package of working capital financing that may consist of loans and a cash credit facility
as well as documentary credits or bank guarantees. Term loans consist of short and medium term
loans. More than 90% of our loans are denominated in rupees with the balance being denominated in
various foreign currencies, principally the U.S. dollar. All of our commercial loans have been made
to customers in India.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We also purchase credit substitutes, which are typically comprised of commercial paper, short-term
debentures and preference shares issued by the same customers with whom we have a lending
relationship in our wholesale banking business. Investment decisions for credit substitute
securities are subject to the same credit approval processes as loans, and we bear the same
customer risk as we do for loans extended to these customers. Additionally, the yield and maturity
terms are generally directly negotiated by us with the issuer. Our credit substitutes have declined
over the last three years primarily as a result of new RBI and Securities and Exchange Board of
India (&#147;SEBI&#148;) regulations that require the listing and rating of corporate paper, securities and
limit our investments in unlisted credit substitutes, making loans more attractive for our
corporate customers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the asset allocation of our commercial loans and financing products
by asset type. For accounting purposes, we classify cash credit facilities and bill discounting as
working capital loans, and commercial paper, debentures and preference shares as credit substitutes
(which in turn are classified as investments).
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>As of March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #ffffff"><B>2004</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #ffffff"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #ffffff"><B>2006</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #ffffff"><B>2006</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>(In millions)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross commercial loans:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Working capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">54,104.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">72,397.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">78,693.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">1,769.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Term
loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53,819.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">76,861.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">92,932.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,089.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total commercial
loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">107,923.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">149,259.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD nowrap align="right">171,626.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">3,858.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Credit substitutes:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Commercial
paper</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">906.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">1,297.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="0" align="center">US$&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>

</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Non-convertible
debentures</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,852.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,018.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,308.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">209.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Preference
shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">799.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">564.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">443.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total credit
substitutes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">16,557.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">13,880.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">9,751.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">219.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Customer assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">124,481.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">163,140.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">181,377.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">4,077.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While we generally lend on a cash-flow basis, we also require collateral from the majority of
our borrowers. All borrowers must meet our internal credit assessment procedures, regardless of
whether the loan is secured. See &#147;&#151; Risk Management &#151; Credit Risk &#151; Wholesale Credit Risk&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We price our loans based on a combination of our own cost of funds, market rates and our rating of
the customer. An individual loan is priced on a fixed or floating rate based on a margin that
depends on the credit assessment of the borrower.
</DIV>


</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->17<!-- /Folio -->


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The RBI requires banks to lend to specific sectors of the economy. For a detailed discussion of
these requirements, see &#147;Supervision and Regulation &#151; Regulations Relating to Making Loans &#151;
Directed Lending&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Bill Collection, Documentary Credits and Guarantees</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We provide bill collection, documentary credit facilities and bank guarantees for our corporate
customers. Documentary credits and bank guarantees are typically provided on a revolving basis. The
following table sets forth, for the periods indicated, the value of transactions processed of our
bill collection, documentary credits and bank guarantees:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>As of March 31,</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>As of March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

<TD nowrap align="center" colspan="15" style="border-bottom: 0px solid #ffffff"><B>(In millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 0px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bill
collection</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">172,623.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">359,609.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">381,657.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">8,580.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Documentary
credits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,030.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56,702.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46,106.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,036.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bank guarantees
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,197.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,518.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,949.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">493.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">231,850.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">430,830.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">449,713.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">10,110.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Bill collection. </I>We provide bill collection services for our corporate clients in which we
collect bills on behalf of a corporate client from the bank of our client&#146;s customer. We do not
advance funds to our client until receipt of payment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Documentary credits</I>. We issue documentary credit facilities on behalf of our customers for trade
financing, sourcing of raw materials and capital equipment purchases.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Bank guarantees. </I>We provide bank guarantees on behalf of our customers to guarantee their payment
or performance obligations. A large part of our guarantee portfolio consists of margin guarantees
to brokers issued in favor of stock exchanges.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Foreign Exchange and Derivatives</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We offer our corporate customers foreign exchange and derivative products including spot and
forward foreign exchange contracts, interest rate swaps, currency swaps, currency options and other
derivatives. We are a leading participant in many of these markets in India and believe we are one
of the few Indian banks with significant expertise in derivatives, a market currently dominated by
the foreign banks.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Precious Metals</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are in the business of importing gold and silver bullion to leverage our distribution and
servicing strengths and cater to the domestic bullion trader segment. We generally import bullion
on a consignment basis so as to minimize price risk.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Wholesale Deposit Products</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of March&nbsp;31, 2006, we had wholesale deposits totaling Rs. 210.0&nbsp;billion, which represented 37.7%
of our total deposits and 26.5% of our total liabilities, including shareholders&#146; equity. We offer
both non-interest-bearing current accounts and time deposits. As per RBI regulations, we cannot pay
interest for periods of less than seven days. We are allowed to vary the interest rates on our
wholesale deposits based
on the size of the deposit (for deposits greater than Rs. 1.5&nbsp;million) so long as the rates booked
on a day are the same for all customers of that deposit size for that maturity. See &#147;Selected
Statistical Information&#148; for further information about our total deposits.
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Transactional Services</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Cash Management Services</I></B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are a leading provider of cash management services in India. Our services make it easier for our
corporate customers to expedite inter-city check collections, make payments to their suppliers more
efficiently, optimize liquidity and reduce interest costs. In addition to benefiting from the cash
float, which reduces our overall cost of funds, we also earn commissions for these services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our primary cash management service is check collection and payment. Through our electronically
linked branch network, correspondent bank arrangements and centralized processing, we can
effectively provide nationwide collection and disbursement systems for our corporate clients. This
is especially important because there is no nationwide payment system in India, and checks must
generally be returned to the city from which written in order to be cleared. Because of mail
delivery delays and the variations in city-based inter-bank clearing practices, check collections
can be slow and unpredictable, and can lead to uncertainty and inefficiencies in cash management.
We believe we have a strong position in this area relative to most other participants in this
market. Although the public sector banks have extensive branch networks, most of their branches
typically are still not electronically linked. The foreign banks are also restricted in their
ability to expand their branch network.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of March&nbsp;31, 2006 over 5,000 wholesale banking clients used our cash management services. These
clients include leading Indian private sector companies, public sector undertakings and
multinational companies. We also provide these services to most Indian insurance companies, many
mutual funds, brokers, financial institutions and various government entities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have also implemented a straight through processing solution to link our wholesale banking and
retail banking systems. This has led to reduced manual intervention in transferring funds between
the corporate accounts which are in the wholesale banking system and beneficiary accounts residing
in retail banking systems. This new initiative will help in reducing transaction costs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have a large number of commercial clients using our corporate internet banking for financial
transactions with their vendors, dealers and employees who bank with us.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The RBI has introduced a new inter-bank settlement system called the Real Time Gross
Settlement (&#147;RTGS&#148;) system. The system facilitates real time settlements primarily between banks,
initially in select locations. This system is currently not fully operational. See &#147;Risk Factors &#151;
Risks Relating to Our Business &#151; We could be adversely affected by the development of a nationwide
inter-bank settlement system&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Clearing Bank Services for Stock and Commodity Exchanges</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We serve as a cash-clearing bank for major stock exchanges in India, including the National
Stock Exchange and The Stock Exchange, Mumbai. As a clearing bank, we provide the exchanges or
their clearing corporations with a means for collecting cash payments due to them from their
members or custodians and to make payments to these institutions. We make payments once the broker
or custodian deposits the funds with us. In addition to benefiting from the cash float, which
enables us to reduce our cost of funds, in certain cases we also earn commission on such services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Custodial Services</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We provide custodial services principally to Indian mutual funds, as well as to domestic and
international financial institutions. These services include safekeeping of securities and
collection of dividend and interest payments on securities. Most of the securities under our
custody are in book-entry
</DIV>

</DIV>
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<P align="right" style="font-size: 10pt"><!-- Folio -->19<!-- /Folio -->


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(dematerialized)&nbsp;form, although we provide custody for securities in physical form as well for our
wholesale banking clients. We earn revenue from these services based on the value of assets under
safekeeping and the value of transactions handled.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Correspondent Banking Services</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We act as a correspondent bank for cooperative banks, cooperative society and foreign banks. We
provide cash management services, funds transfers and services such as letters of credit, foreign
exchange transactions and foreign check collection. We earn revenue on a fee-for-service basis and
benefit from the cash float, which enables us to reduce our cost of funds.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are well positioned to offer this service to cooperative banks and foreign banks in light of the
structure of the Indian banking industry and our position within it. Cooperative banks are
generally restricted to a particular state, and foreign banks have limited branch networks. The
customers of these banks frequently need services in other areas of the country that their own
banks cannot provide. Because of our technology platforms, geographical reach and the electronic
connectivity of our branch network, we can provide these banks with the ability to provide such
services to their customers. By contrast, although the public sector banks have extensive branch
networks and also provide correspondent banking services, most of them have not yet created
electronically connected networks and their branches typically operate independently of one
another.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Tax Collections</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In April&nbsp;2001, we were the first private sector bank to be appointed by the
government of India to collect direct taxes. In fiscal 2006, we collected more than Rs. 234&nbsp;billion
of direct taxes for the government of India. We have also been appointed to collect sales, excise
and other indirect taxes within certain jurisdictions in India. In fiscal 2006 we
collected more than Rs. 24&nbsp;billion of indirect taxes for the government of India. We earn a fee
from each tax collection and benefit from the cash float. We hope to expand our range of
transactional services by providing more services to government entities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Treasury</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Treasury Group manages our balance sheet, including our maintenance of reserve requirements and
our management of market and liquidity risk. Our Treasury Group also provides advice and execution
services to our corporate and institutional customers with respect to their foreign exchange and
derivatives transactions. In addition, our Treasury Group seeks to optimize profits from our
proprietary trading, which is principally concentrated on Indian government securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our client-based activities consist primarily of advising corporate and institutional customers and
transacting spot and forward foreign exchange contracts and derivatives. Our primary customers are
multinational corporations, large and medium-sized domestic corporations, financial institutions,
banks and public sector undertakings. We also advise and enter into foreign exchange contracts with
some small companies and non-resident Indians.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following describes our activities in the foreign exchange and derivatives markets, domestic
money markets and equities market. See also &#147;&#151; Risk Management&#148; for a discussion of our management
of market risk including liquidity risk, interest rate risk and foreign exchange risk.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Foreign Exchange</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We trade spot and forward foreign exchange contracts, primarily with maturities of up to three
years with our customers. To support our clients&#146; activities, we are an active participant in the
Indian inter-bank foreign exchange market. We also trade, to a more limited extent, for our own
account. We believe we are a
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">market maker in the dollar-rupee segments. Although spreads are very narrow, our total volume of
trading is significant with US$ 142.9&nbsp;billion in foreign exchange traded in fiscal 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Derivatives</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We believe we are one of the few Indian banks that is a significant participant in the derivatives
market, which is dominated by foreign banks. We offer rupee-based interest rate swaps,
cross-currency swaps, forward rate agreements, options and other products. We also engage in
proprietary trades of rupee-based interest rate swaps and use them as part of our asset liability
management.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Domestic Money Market and Debt Securities Desk</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our principal activity in the domestic money market and debt securities market is to ensure that we
comply with our reserve requirements. These consist of a cash reserve ratio, which we meet by
maintaining balances with the RBI, and a statutory liquidity ratio, which we meet by purchasing
Indian government securities. See also &#147;Supervision and Regulation &#151; Legal Reserve Requirements&#148;.
Our local currency desk primarily trades Indian government securities for our own account. We also
participate in the inter-bank call deposit market and engage in limited trading of other debt
instruments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Equities Market</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We trade a limited amount of equities of Indian companies for our own account. As of March&nbsp;31,
2006, we had an internal approved limit of Rs. 300&nbsp;million for
secondary market purchases and Rs. 100
million for primary purchases of equity investments for proprietary trading. Our exposure as of
March&nbsp;31, 2006 was approximately Rs. 120&nbsp;million. We set limits on the amount invested in any
individual company as well as stop-loss limits.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Distribution Channels</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We deliver our products and services through a variety of distribution channels, including
branches, ATMs, telephone and mobile telephone banking and internet banking.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Branch Network</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of March&nbsp;31, 2006, we had an aggregate of 535 branches, including 23 extension counters. Our
branch network covers 228 cities in India, with 171 branches concentrated in the four largest
cities, Mumbai, Delhi, Chennai and Kolkata (Calcutta). We centralize our processing of transactions
and back office operations in Mumbai and Chennai. This structure enables the branch staff to focus
on customer service and selling our products. All of our branches are electronically linked so that
our customers can access their accounts from any branch regardless of where they have their
accounts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Almost all of our branches focus exclusively on providing retail services and products, though a
few also provide wholesale services. The range of products and services available at each branch
depends in part on the size and location of the branch. Our extension counters are small offices,
primarily within office buildings, that provide specific commercial and retail banking services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Automated Teller Machines</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of March&nbsp;31, 2006, we had a total of 1,323 ATMs, of which 651 were located at our branches or
extension counters and 672 were located off-site, including at large residential developments, or
on major roads in metropolitan areas.
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Customers can use our ATMs for a variety of functions including withdrawing cash, monitoring bank
balances and, at most of our ATMs, ordering demand drafts and paying utility bills. Customers can
access their accounts from any of our ATMs. Our ATM cards cannot be used in non-HDFC Bank ATMs,
although our debit cards can be. ATM cards issued by other banks in the Plus, Cirrus and Amex
networks can be used in our ATMs and we receive a fee for each transaction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Telephone Banking Call Centers</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We provide telephone banking services to our customers in 189 cities. Customers can access their
accounts over the phone through our 24-hour automated voice response system and can order check
books, inquire as to balances and order stop payments. In select cities, customers can also engage
in financial transactions (such as cash transfers, opening deposits and ordering demand drafts). In
certain cities, we also have staff available during select hours to assist customers who want to
speak directly to one of our telephone bankers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Internet Banking</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Through our &#147;Net Banking&#148; channel, customers can access account information, track transactions,
transfer funds between accounts and to third parties who maintain accounts with us, make fixed
deposits, pay bills, request stop payments and make demand draft requests. We encourage use of our
internet banking service by offering some key services for free or at a lower cost.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Mobile Telephone Banking</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We launched mobile telephone banking services in January&nbsp;2000, making us the first bank to do so in
India. Customers in over a 150 locations are eligible to sign up for mobile telephone banking,
which allows them to access their accounts on their mobile telephone screens and to conduct a
variety of banking transactions including balance inquiries, stop payment orders and utility bill
payments.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Risk Management</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk is inherent in our business and sound risk management is critical to our success. The
major types of risk we face are credit risk, market risk (which includes liquidity risk and price
risk) and operational risk. We have developed and implemented comprehensive policies and procedures
to identify, monitor and manage risk throughout the Bank.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Credit Risk</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Credit risk is the possibility of loss due to the failure of any counterparty to abide by the terms
and conditions of any financial contract with us. We identify and manage this risk through (a)&nbsp;our
target market definitions, (b)&nbsp;our credit approval process, (c)&nbsp;our post-disbursement monitoring
and (d)&nbsp;our remedial management procedures.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Wholesale Credit Risk</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For our commercial banking products, we generally target the top end of the Indian corporate
sector, including companies that are part of the large private sector business houses, large public
sector enterprises, and multinational corporations and leading small and mid-sized businesses. As a
result, our wholesale lending is generally concentrated among highly rated customers. In addition
to market targeting, the principal means of managing credit risk is the credit approval process. We
have policies and procedures to evaluate the potential credit risk of a particular counterparty or
transaction and to approve the transaction. For our wholesale clients, we have a risk grading
system that is applied to each corporate counterparty on an annual basis and in some cases
quarterly, basis. We also have limits for funded exposure to individual
</DIV>

</div>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">industries. In addition, we have limits for exposure to borrowers and groups of borrowers for
funded and non-funded exposures. Our credit risk policies for loans also apply to credit
substitutes. We also have a review process that ensures the proper level of review and approval
depending on the size of the facility and risk grading of the credit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our risk grading system is based on a combination of quantitative, qualitative and capitalization
measures. We assign each customer or counterparty a numerical grade, based on an analysis of key
ratios such as interest coverage, debt coverage, profit margin and leverage, as well as
capitalization or tangible net worth. We also consider qualitative variables such as industry risk,
market position, management competence and other factors. This grade may be modified depending on
the maturity of the facility being considered.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are subject to RBI policies that limit our exposure to particular counter-parties and with
respect to particular instruments. The RBI provides that without prior approval not more than 15%
of our capital funds (as defined by RBI and calculated under Indian GAAP) may be extended as credit
exposure to an individual borrower, and not more than 40% of our capital funds may be extended as
credit exposure to a group of companies under the same management. In the case of infrastructure
projects, such as power, telecommunications, road and port projects, an additional exposure of up
to 5% of capital funds is allowed in respect of individual borrowers and 10% in respect of group
borrowers. The RBI has stated that banks may, in exceptional circumstances and with the approval of
their boards of directors, consider enhancement of the exposure to a borrower by a further 5% of
the capital funds. See &#147;Supervision and Regulation &#151; Credit Exposure Limits&#148;. During the fiscal
2006, the bank&#146;s credit exposures to single borrowers and group borrowers were within the limits
prescribed by Reserve Bank of India except in case of National Bank for Agricultural and Rural
Development (&#147;NABARD&#148;), where the single borrower limits were exceeded. The Board of Directors of
the Bank approved the excess over the prudential limits subject to a ceiling of 20% of capital
funds. At March&nbsp;31, 2006, the book value of outstanding exposure to NABARD was within the board
approved limit of 20% of capital funds.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The RBI prohibits loans to companies with which we have any directors in common. The RBI also
requires that a portion of our lending activities be &#147;directed&#148; to specific priority sectors. See
&#147;Supervision and Regulation &#151; Regulations Relating to Making Loans &#151; Directed Lending&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We follow a policy of portfolio diversification by industry. As of March&nbsp;31, 2006, our funded
exposures in any single industry did not exceed 12% of our total funded exposures.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While we make our lending decisions largely on a cash-flow basis, we also take collateral for a
large number of our loans. Our short and medium-term loans are typically secured by a first charge
over inventory and receivables, and in some cases are further supported by a second charge over
fixed assets. Longer term loans are usually secured by a charge over fixed assets. For some loans,
we also require guarantees or letters of support from corporate parents. We generally do not make
project loans or loans to property developers, although we may take a charge over real property as
part of the security for a loan to a corporate borrower. Although we take collateral, we may not
always be able to realize its value in a default situation. See &#147;Risk Factors &#151; Risks Relating to
Our Business &#151; We may be unable to foreclose on our collateral when borrowers default on their
obligations to us which may result in failure to recover the expected value of collateral
security&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our credit approval process for wholesale loans requires three officers to approve the credit.
Although the particular level of approval varies depending on the size of the loan and the borrower
risk grading, no wholesale loan can be made without all three approvals. All working capital loans
are subject to review at annual or shorter intervals.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Once a loan is made, we undertake ongoing credit analysis and monitoring at several levels. Our
policies are designed to promote early detection of exposures that require special monitoring. If a
borrower wishes to renew or roll over the loan, we apply substantially the same standards as we
would to granting a new loan except that we do not usually perform an entirely new credit review.
Typically, we perform an annual
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">credit review of each loan customer and update the review during the course of the year as
circumstances warrant. We generally rely on such review in connection with a rollover or renewal.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See &#147;Selected Statistical Information&#148; for a discussion of our policies regarding classification of
loans and advances as non-performing (and certain differences between our policies and the
practices of U.S. banks), our policies regarding provisioning for loans and information concerning
our non-performing assets and allowance for credit losses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Retail Credit Risk</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our retail credit policy and approval process are designed for the fact that we have high volumes
of relatively homogeneous, small value transactions in each retail loan category. Because of the
nature of retail banking, our credit policies are based primarily on statistical analyses of risks
with respect to different products and types of customers. We monitor our own and industry
experience to determine and periodically revise product terms and desired customer profiles. We
then verify that an individual customer meets our lending criteria. Our retail loans are generally
either secured or made against direct debit instructions or delivery of post-dated checks to cover
all payments. It is a criminal offense in India to issue a bad check. In the case of most
automobile and other vehicle loans as well as unsecured personal loans, we require that the
borrower provide post-dated checks for a certain number of payments on the loan at the time the
loan is made. Automobile and commercial vehicle loans, two wheeler loans and other vehicle loans,
as well as loans against securities are all secured loans. We will generally lend up to 60% of the
market value of securities in the case of loans against equity shares, 90% of the value of the
automobile in case of automobile loans and 85% of the value of the two-wheeler in the case of
two-wheeler loans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Foreign Exchange, Derivatives and Trading Activities</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The credit risk of our foreign exchange and derivative transactions is managed the same way as we
manage our wholesale lending risk. We apply our risk grading system to our corporate counterparties
and set individual counterparty limits. With respect to debt securities, we primarily trade
government of India securities for our own account.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Market Risk</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Market risk refers to potential losses arising from volatility in interest rates, foreign exchange
rates, equity prices and commodity prices. Market risk arises with respect to all market risk
sensitive financial instruments, including securities, foreign exchange contracts, equity
instruments and derivative instruments, as well as from balance sheet gaps. The objective of market
risk management is to avoid excessive exposure of our earnings and equity to loss and to reduce our
exposure to the volatility inherent in financial instruments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Board of Directors reviews and approves the policies for the management of market risks and
dealing authorities and limits. The Risk Management Committee of the Board of Directors monitors
market risk policies and procedures and reviews market risk limits. The Board of Directors has
delegated the responsibility for ongoing general market risk management to the Asset Liability
Committee. This committee, which is chaired by the Managing Director and includes the heads of our
business groups, meets every alternate week and more often when conditions require. The Asset
Liability Committee reviews our product pricing for deposits and assets as well as the maturity
profile and mix of our assets and liabilities. It articulates our interest rate view and decides on
future business strategy with respect to interest rates. It reviews and sets funding policy and
also reviews developments in the markets and the economy and their impact on our balance sheet and
business. Finally, it ensures adherence to market risk limits and decides on our inter-segment
transfer pricing policy. The Market Risk Department specifies risk valuation methodology of various
treasury products, formulates procedures for portfolio risk valuation, assesses market risk factors
and assists in monitoring market risks for various treasury desks. Our treasury back-office is
responsible for reporting market risks of the treasury desks.
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Financial Control Department is responsible for collecting data, preparing regulatory and
analytical reports and monitoring whether the interest rate and other policies and limits
established by the Asset Liability Committee are being observed. Our Treasury Group also assists in
implementing asset liability strategy and in providing information to the Asset Liability
Committee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following briefly describes our policies and procedures with respect to asset liability
management, liquidity risk, price risk and other risks such as foreign exchange and equities risks.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Asset Liability Management</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We generally fund our core customer assets, consisting of loans and credit substitutes, with our
core customer liabilities, consisting principally of deposits. We also borrow in the short-term
inter-bank market. We use the majority of our funds to make loans or purchase securities. Most of
our liabilities and assets are short and medium term.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We maintain a substantial portfolio of liquid, high-quality Indian government securities. We
prepare regular maturity gap analyses to review our liquidity position, and must submit a monthly
analysis to the RBI.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We measure our exposure to fluctuations in interest rates primarily by way of a gap analysis. We
classify all rate sensitive assets and liabilities into various time period categories according to
contracted residual maturities or anticipated repricing dates, whichever is earlier. The difference
in the amount of assets and liabilities maturing or being repriced in any time period category
gives us an indication of the extent to which we are exposed to the risk of potential changes in
the margins on new or repriced assets and liabilities. We place limits on the gap between the
assets and liabilities that may be reset in any particular period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Asset Liability Committee addresses the two principal aspects of our asset liability management
program as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;First, the Asset Liability Committee monitors the liquidity gap and, at the corporate level,
recommends appropriate financing or asset deployment strategies depending on whether the gap is a
net asset position or a net liability position, respectively. Operationally, in the short term, our
Treasury Group implements these recommendations through market borrowings or placements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Second, the Asset Liability Committee monitors our interest rate gap and, at the corporate level,
recommends re-pricing of our asset or liability portfolios. Operationally, in the short term, our
Treasury Group implements these recommendations by entering into interest rate swaps.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the longer term, our wholesale banking and retail banking groups implement these recommendations
through changes in the interest rates offered by us for different time period categories to either
attract or discourage deposits and loans in those time period categories.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See &#147;Selected Statistical Information&#148; for information on our asset-liability gap and the
sensitivity of our assets and liabilities to changes in interest rates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Liquidity Risk</I></B>
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The purpose of liquidity management is to ensure sufficient cash flow to meet all financial
commitments and to capitalize on opportunities for business expansion. This includes our ability to
meet deposit withdrawals either on demand or at contractual maturity, to repay borrowings as they
mature and to make new loans and investments as opportunities arise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liquidity is managed on a daily basis by the Treasury Group under the direction of the Asset
Liability Committee. The Treasury Group is responsible for ensuring that we have adequate
liquidity, ensuring that our funding mix is appropriate so as to avoid maturity mismatches and
price and reinvestment rate risk in case of a maturity gap, and monitoring local markets for the
adequacy of funding liquidity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Price Risk</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Price risk is the risk arising from price fluctuations due to market factors, such as changes in
interest rates and exchange rates. Our Treasury Group is responsible for implementing the price
risk management process within the limits approved by the Board of Directors. These limits are
independently monitored by the treasury operations group. We measure price risk through a two-stage
process, the first part of which is to assess the sensitivity of the value of a position to changes
in market factors to which our business is exposed. We then assess the probability of these changes
or the volatility of market factors. We manage price risk principally by establishing limits for
our money market activities and foreign exchange activities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We monitor and manage our exchange rate risk through a variety of limits on our foreign exchange
activities. The RBI also limits the extent to which we can deviate from a &#147;near square&#148; position at
the end of the day (where sales and purchases of each currency are matched). Our own policies set
limits on maximum open positions in any currency during the course of the day as well as on
overnight positions. We also have gap limits that address the matching of forward positions in
various maturities and for different currencies. In addition, the RBI approves the aggregate gap
limit for us. This limit is applied to all currencies. We also have stop-loss limits that require
our traders to realize and restrict losses. We evaluate our risk on foreign exchange gap positions
on a daily basis using a Value at Risk model applied to all of our outstanding foreign exchange
instruments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We impose position limits on our trading portfolio of marketable securities. These limits, which
vary by tenor, restrict the holding of marketable securities of all kinds depending on our
expectations about the yield curve. We also impose trading limits such as stop-loss limits and
aggregate contract limits, which require that trading losses be kept below prescribed limits and as
a result may require the realization of losses and elimination of positions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Treasury Operations Department monitors actual positions against the required limits. The
treasury operations department is independent of the treasury department and has a separate
reporting line to the Managing Director through the head of operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our derivatives risk is managed by the fact that we do not enter into or maintain unmatched
positions with respect to non-rupee-based derivatives. Our proprietary derivatives&#146; trading is
primarily limited to rupee-based interest rate swaps and rupee currency options.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Operational Risk</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operational risks are risks arising from matters such as non-adherence to systems and procedures or
from frauds resulting in financial or reputation loss. Our Internal Audit and Compliance Department
plays an essential role in monitoring and limiting our operational risk. The primary focus of the
Audit Department is:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&nbsp;&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to independently evaluate the adequacy of all internal controls;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&nbsp;&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to ensure adherence to the operating guidelines, including regulatory and legal requirements; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&nbsp;&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to recommend operation process improvements.</TD>
</TR>


</TABLE>
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</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Department also performs special investigations and ad hoc reviews. In addition, our internal
audit and compliance department liaises with statutory auditors, central bank authorities and other
regulatory bodies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In order to ensure total independence, the internal audit and compliance department reports
directly to the Chairman of the Board of Directors and the Audit and Compliance Committee of the
Board of Directors as well as indirectly to the Managing Director. The Audit and Compliance
Committee meets at least once per quarter to review all procedures, the effectiveness of the
controls and compliance with RBI regulations. In addition, the Committee conducts a semiannual
review of the performance of the Department itself.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to RBI guidelines, some activities are required to be audited continuously. More than half
of our business, measured by transaction volume, is subject to concurrent auditing, including
foreign exchange, derivatives, equities, securities transactions, depositary services, retail
liability operations, reversals to the profit and loss account and monitoring of inter-branch
routing accounts. All other lines of business, our information technology department, branches,
services and products are audited on a set schedule, which is usually quarterly or half-yearly. Our
information technology is also subject to audit review and certification of all software, including
application software and system controls.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are also subject to inspections conducted by the RBI under the Indian Banking Regulation&nbsp;Act.
The RBI has adopted the global practice of subjecting banks to examination on the basis of the
CAMELS model, a model that assigns confidential ratings to banks based on their capital adequacy,
asset quality, management, earnings, liquidity and systems.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the year, the Reserve Bank of India (RBI) had undertaken
special scrutiny of certain customer accounts based on which it imposed
penalties on the Bank aggregating to Rs. 3.0 million under the provisions of the
Banking Regulation Act, 1949. The said penalties were imposed mainly for not displaying
prudence in the opening and monitoring operations of certain deposit and depositary accounts
in relation to know your customer (KYC) and certain other extant guidelines of the Reserve Bank
of India. We submit that we had followed documentation and related requirements as specified in
guidelines issued by RBI from time to time in opening and monitoring the operations of the accounts.
It appears that the in the said cases the customers planned and executed an ingenious way to beat the
system for personal gains resulting in the Bank failing to meet the spirit of the KYC guidelines. Although
our processes/systems did throw up these deviant transactions, they passed through because of lack of prudence
and negligence on the part of certain employees managing these processes. We have taken stern action against these
employees. In the light of the aforesaid experiences, we have further tightened certain internal control processes and
have instituted additional measures to ensure strict adherence to Know Your Customer / Anti Money Laundering norms.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Competition</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We face strong competition in all of our principal lines of business. Our primary competitors are
large public sector banks, other private sector banks, foreign banks and, in some product areas,
non-banking financial institutions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Retail Banking</I></B>
</DIV>


</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In retail banking, our principal competitors are the large public sector banks, which have much
larger deposit bases and branch networks, other new private sector banks and foreign banks in the
case of retail loan products. The retail deposit share of the foreign banks is quite small by
comparison to the public sector banks, and has also declined in the last five years, which we
attribute principally to competition from new private sector banks. However, some of the foreign
banks have a significant presence among non-resident Indians and also compete for non-branch-based
products such as auto loans and credit cards.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We face significant competition primarily from foreign banks in the debit and credit card segment.
In mutual fund sales and other investment related products, our principal competitors are brokers,
foreign banks and new private sector banks.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Wholesale Banking</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our principal competitors in wholesale banking are public and new private sector banks as well
as foreign banks. The large public sector banks have traditionally been the market leaders in
commercial lending. Foreign banks have focused primarily on serving the needs of multinational
companies and Indian corporations with cross-border financing requirements including trade and
transactional services, foreign exchange products and derivatives, while the large public sector
banks have extensive branch networks and large local currency funding capabilities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Treasury</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In our treasury advisory services for corporate clients, we compete principally with foreign banks
in foreign exchange and derivatives, as well as public sector banks in the foreign exchange and
money markets business.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Employees</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our number of employees increased from 9,030 as of March&nbsp;31, 2005 to 14,878 as of March&nbsp;31, 2006,
primarily as a result of the expansion of our branch network, an increase in the territories we
cover and substantial growth in our retail business, particularly in the credit card market. Almost
all our employees are located in India. Approximately 9.8% of our employees were managers or senior
managers, and 2.2% were assistant vice presidents, vice presidents or group heads. More than 99% of
our employees have university degrees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We consider our relations with our employees to be good. Our employees do not belong to any union.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We use incentives in structuring compensation packages and have established a performance-based
bonus scheme under which permanent employees have a variable pay component of their salary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to basic compensation, employees are eligible to participate in our provident fund and
other employee benefit plans. The provident fund, to which both we and our employees contribute, is
a savings scheme, required by government regulation, under which the fund is required to pay to
employees a minimum annual return, which at present is 8.5%. If the return is not generated
internally by the fund, we are liable for the difference. Our provident fund has generated
sufficient funds internally to meet the annual return requirement since inception of the fund. We
have also set up a superannuation fund to which we contribute defined amounts. In addition, we
contribute specified amounts to a gratuity fund set up pursuant to Indian statutory requirements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We focus on training our employees on a continuous basis. We have a training center in Mumbai,
where we conduct regular training programs for our employees. Management and executive trainees
generally
undergo an 8-12&nbsp;week training module covering every aspect of banking. We offer courses conducted
by
</DIV>


</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">both internal and external faculty. In addition to ongoing on-the-job training, we provide
employees courses in specific areas or specialized operations on an as-needed basis.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Properties</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our registered office and corporate headquarters is located at HDFC Bank House, Senapati Bapat
Marg, Lower Parel, Mumbai 400 013, India. These premises were established during the third quarter
of fiscal 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Close to the corporate headquarters is the administrative center at Kamala Mills Compound in Lower
Parel, Mumbai. We own our 120,000 square foot operations, training and information technology
centers in Chandivili, Mumbai. As of March&nbsp;31,2006, we had a network consisting of 535 branches,
including 23 extension counters, and 1,323 ATMs, including 672 at non-branch locations. These
facilities are located throughout India. Nineteen of these branches are located on properties owned
by us; the remaining facilities are located on leased properties. The net book value of all our
owned properties, including branches, administrative offices and residential premises as of March
31, 2006 was Rs. 2.6&nbsp;billion.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Legal Proceedings</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are involved in a number of legal proceedings in the ordinary course of our business. However,
we are currently not a party to any proceedings which, if adversely determined, might have a
material adverse effect on our financial condition or results of operations.
</DIV>

</DIV>
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<DIV align="left">
<A name="105"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>RISK FACTORS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ADS holder should carefully consider the following risk factors as well as the other
information contained in this report in evaluating us and our business.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Risks Relating to Our Business</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>If we are unable to manage our rapid growth, our business could be adversely affected.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our asset growth rate has been significantly higher than the Indian GDP growth rate as well as the
growth rate in the Indian banking industry over the last five fiscal years. For example, our total
assets in the three year period ended March&nbsp;31, 2006 grew at a compounded annual growth rate of
36.4%. Our rapid growth has placed, and if it continues will place, significant demands on our
operational, credit, financial and other internal risk controls such as,
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="font-family: Wingdings">&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>recruiting, training and retaining sufficient skilled personnel;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="font-family: Wingdings">&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>upgrading and expanding our technology platform;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="font-family: Wingdings">&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>developing and improving our products and delivery channels;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="font-family: Wingdings">&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>preserving our asset quality as our geographical presence
increases and customer profile changes; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="font-family: Wingdings">&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>maintaining high levels of customer satisfaction.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An inability to manage our growth effectively could have a material adverse effect on our business
and our future financial performance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Our business is vulnerable to volatility in interest rates.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our results of operations depend to a great extent on our net interest revenue. During the fiscal
year ended March&nbsp;31, 2006, net interest revenue after allowances for credit losses represented
60.8% of our net revenue. Changes in market interest rates could affect the interest rates charged
on our interest-earning assets differently from the interest rates paid on our interest-bearing
liabilities and also affect investment values. This difference could result in an increase in
interest expense relative to interest revenue, leading to a reduction in our net interest revenue
and net interest margin. In addition, a rise in interest rates could negatively affect demand for
our retail loans and other products.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rates are highly sensitive to many factors beyond our control, including the monetary
policies of the RBI, deregulation of the financial sector in India, domestic and international
economic and political conditions and other factors. Any volatility in interest rates could
adversely affect our business, our future financial performance and the price of our equity shares
and ADSs. Yields on the Indian government&#146;s ten-year bonds were 5.2%, 6.7% and 7.5% as of March&nbsp;31,
2004, March&nbsp;31, 2005 and March&nbsp;31, 2006, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>If the level of non-performing loans in our portfolio increases, then our business could suffer.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our gross non-performing loans and impaired credit substitutes represented 1.2% of our gross
customer assets as of March&nbsp;31, 2006. Our non-performing loans and impaired credit substitutes net
of specific loan loss provisions represented 0.4% of our net customer assets portfolio as of March
31, 2006. As of March&nbsp;31, 2006, we had provided for 118.2% of our total non-performing loans. We
cannot assure ADS holder that our provisions will be adequate to cover any further increase in the
amount of non-performing loans or any further deterioration in our non-performing loan portfolio.
In addition, we are a relatively young bank and we have not experienced a significant and prolonged
downturn in the economy.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A number of factors outside of our control could affect our ability to control and reduce
non-performing loans. These factors include developments in the Indian economy, movements in global
commodity
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">markets, global competition, changes in interest rates and exchange rates and changes in
regulations, including with respect to regulations requiring us to lend to certain sectors
identified by the RBI or the Indian government. In addition, the expansion of our business may
cause our non-performing loans to increase and the overall quality of our loan portfolio to
deteriorate. If our non-performing loans increase, we may be required to increase our provisions,
which may affect our earnings and may result in us being unable to execute our business plan as
expected, which could adversely affect the price of our equity shares and ADSs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>We have high concentrations of customer exposures to certain customers and sectors and if any of
these exposures were to become non-performing, the quality of our portfolio could be adversely
affected.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We calculate customer and industry exposure in accordance with the policies established by Indian
GAAP and the RBI. In the case of customer exposures, we aggregate 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 and equity
shares). As of March&nbsp;31, 2006, our ten largest customer
exposures totaled approximately Rs. 53.37
billion, representing approximately 78% of our capital funds valuation as per RBI guidelines based
on Indian GAAP figures, and none of these were classified as non-performing. Our largest single
customer exposure as of that date was Rs. 11.99&nbsp;billion, representing approximately 17.4% of the
capital funds as on March&nbsp;31, 2006 based on Indian GAAP figures. However, if any of our ten largest
customer exposures of the bank were to become non-performing, the quality of our portfolio and our
business could be adversely affected.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We monitor concentration of exposures to individual industries as a proportion of funded exposures.
As of March&nbsp;31, 2006, our largest industry concentrations were as follows: automotive manufacturing
(8.8%), transportation (8.0%), housing finance (3.8%), retail traders (3.1%) and engineering
(2.8%). In addition, as of that date, approximately 39.0% of the concentration of our exposure was
retail (except where otherwise included in the above classification). As of that date, our total
non-performing loans and investments were concentrated in the following industries: automobiles
(19.6%), transportation (7.1%), textiles (6.4%) and electronics (4.6%).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition we have funded exposures to several state sponsored financial institutions primarily to
meet directed lending requirements as of March&nbsp;31, 2006. This exposure represented 6.5% of our
total funded exposures. If these institutions experienced financial difficulties, as a result of
difficulties in the sectors to which they lend (such as agriculture) or otherwise, our business
could also be adversely affected.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>We face greater credit risks than banks in more developed countries</I></B><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;One of our principal activities is providing financing to our customers, almost all of whom are
based in India. We are subject to the credit risk that our borrowers may not pay us in a timely
fashion or at all. The credit risk of all our borrowers is higher than in other developed countries
due to the higher uncertainty in our regulatory, political and economic environment. In addition,
unlike several developed countries, India does not have a well-established nationwide credit
bureau, which may affect the quality of information available to us about the credit history of our
borrowers, especially individuals and small businesses. Higher credit risk may expose us to greater
potential losses, which would adversely affect our business, our future financial performance and
the price of our equity shares and ADSs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>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 collateral security</I></B><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although we typically lend on a cash-flow basis, we take collateral for a large proportion of our
loans, consisting of liens on inventory, receivables and other current assets, and in some cases,
charges on fixed assets, such as real property, movable assets, such as vehicles, and financial
assets, such as marketable securities.
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although there has been recent legislation which may strengthen the rights of creditors and lead to
faster realization of collateral in the event of default, we cannot guarantee that we will be able
to realize the full value of our collateral, due to, among other things, delays on our part in
taking immediate action, delays in bankruptcy foreclosure proceedings, stock market downturns,
defects in the perfection of collateral and fraudulent transfers by borrowers. In the event a
specialized regulatory agency gains jurisdiction over the borrower, creditor actions can be further
delayed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, the RBI has set forth guidelines on corporate debt restructuring. The guidelines
envisage that for debt amounts of Rs. 100&nbsp;million and above, 60%
of the creditors by number in
addition to support of 75% of creditors by value, can decide to restructure the debt and such a
decision would be binding on the remaining creditors. In situations where we own 25% or less of the
debt of a borrower, we could be forced to agree to a long-drawn restructuring of debt, in
preference to foreclosure of security or a one-time settlement, which has generally been our
practice.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Our success depends in large part upon our management team and skilled personnel and our ability to
attract and retain such persons.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are highly dependent on our management team, including the continued efforts of our Chairman,
our Managing Director, and other executive officers. Our future performance will be affected by the
continued service of these persons. We also face a continuing challenge to recruit and retain a
sufficient number of skilled personnel, particularly if we continue to grow. Competition for
management and other skilled personnel in our industry is intense, and we may not be able to
attract and retain the personnel we need in the future. The loss of key personnel may have a
material adverse effect on our business, results of operations, financial condition and ability to
grow.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>In order to sustain our growth, we will need to maintain a minimum capital adequacy ratio. There is
no assurance that we will be able to access the capital markets when necessary to do so.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The RBI requires a minimum capital adequacy ratio of 9% to our total risk-weighted assets. We must
maintain this minimum capital adequacy level to support our continuous growth. Our capital adequacy
ratio was 11.4% on March&nbsp;31, 2006. The implementation of the Basel II capital adequacy standards
could also result in a decline in our capital adequacy ratio. Our ability to support and grow our
business could be limited by a declining capital adequacy ratio if we are unable to or have
difficulty accessing the capital markets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Material changes in Indian banking regulations could harm our business.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We operate in a highly regulated environment in which the RBI extensively supervises and regulates
all banks. Our business could be directly affected by any changes in policies for banks in respect
of directed lending, reserve requirements and other areas. For example, the RBI could change its
methods of enforcing directed lending standards so as to require more lending to certain sectors,
which could require us to change certain aspects of our business. In addition, we could be subject
to other changes in laws and regulations such as those affecting the extent to which we can engage
in specific businesses or those affecting foreign investment in the banking industry, as well as
changes in other governmental policies and enforcement decisions, income tax laws, foreign
investment laws and accounting principles. We cannot assure ADS
holders that laws and regulations
governing the banking sector will not change in the future or that any changes will not adversely
affect our business, our future financial performance and the price of our equity shares and ADSs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>We compete directly with banks that are much larger than we are.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We face strong competition in all areas of our business, and many of our competitors are much
larger than we are. We compete directly with the large public sector banks, which generally have
much larger customer and deposit bases, larger branch networks and more capital than we do. These
banks will become
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">more competitive as they improve their customer services and technology. Some of the other private
sector banks in India are also larger than we are, based on such measurements. In addition, we
compete directly with foreign banks, some of which are part of the largest multinational financial
companies in the world. Due to competitive pressures, we may be unable to execute our growth
strategy successfully and offer products and services that generate reasonable returns, which may
impact our business and our future financial performance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Consolidation in the banking industry could adversely affect us.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Indian banking industry may experience greater consolidation. Recently, the government has
indicated its desire to consolidate certain public sector banks. In addition, there may be mergers
and consolidations among private banks. We may face more competition from larger banks as a result
of any such consolidation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Our funding is primarily short and medium-term and if depositors do not roll over deposited funds
upon maturity, our business could be adversely affected.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Most of our funding requirements are met through short-term and medium-term funding sources,
primarily in the form of retail deposits. However, a portion of our assets have long-term
maturities, creating a potential for funding mismatches. In our experience, a substantial portion
of our customer deposits has been rolled over upon maturity and has been, over time, a stable
source of funding. However, if a substantial number of our depositors do not roll over deposited
funds upon maturity, our liquidity position could be adversely affected and we may be required to
seek more expensive sources of funding to finance our operations, which could have a material
adverse effect on our business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>We could be subject to volatility in revenue from our treasury operations</I></B><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasury revenue is vulnerable to volatility in the market caused by changes in interest rates,
exchange rates, equity prices, commodity prices and other factors. Any increase in interest rates
would have an adverse effect on the value of our fixed income securities portfolio and may have an
adverse effect on our net revenue. Any decrease in our income due to volatility in revenue from
these activities could have a material adverse effect on the price of our equity shares and ADSs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>We could be adversely affected by the development of a nationwide inter-bank settlement system.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currently, there is no nationwide payment system in India, and checks must generally be returned to
the city from which written in order to be cleared. Because of mail delivery delays and the
variation in city-based inter-bank clearing practices, check collections can be slow and
unpredictable. Through our electronically linked branch network, correspondent bank arrangements
and centralized processing, we effectively provide a nationwide collection and disbursement system
for our corporate clients. We enjoy cash float and earn fees from these services. The RBI has
recently introduced a new inter-bank settlement system called the Real Time Gross Settlement
(&#147;RTGS&#148;) system. The system facilitates real time settlements primarily between banks, in
select locations. This system is currently not fully operational. Once fully operational, this
system could have an adverse impact on the cash float and fees we have enjoyed from some of our
cash management services and therefore could adversely affect our future financial performance and
the price of our equity shares and ADSs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Because of our many transactions with stock market participants, our business could suffer if there
is a prolonged or significant downturn on the Indian stock exchanges.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We provide a variety of services and products to participants involved with the Indian stock
exchanges. These include working capital funding and margin guarantees to share brokers, personal
loans secured by shares and initial public offering finance for retail customers, stock exchange
clearing services and depositary accounts. As of March&nbsp;31, 2006, our capital market exposure was
Rs. 15.9&nbsp;billion that primarily
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">included investments in equity shares, loans to share brokers and financial guarantees issued to
stock exchanges on behalf of share brokers. At 6.12% of advances (computed as per the RBI norms)
this was within the ceiling approved by the RBI. As a result of our exposure to this industry, a
significant or prolonged downturn on the Indian stock exchanges could have a material adverse
effect on our business and cause the price of equity shares and ADSs to go down. Our capital market
exposure including that of our subsidiaries whose financials we have
consolidated is Rs. 16.3 billion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Significant fraud, system failure or calamities could adversely impact our business.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We seek to protect our computer systems and network infrastructure from physical break-ins as well
as fraud and system failures. Computer break-ins and power and communication disruptions could
affect the security of information stored in and transmitted through our computer systems and
network infrastructure. We employ security systems, including firewalls and password encryption,
designed to minimize the risk of security breaches. Although we intend to continue to implement
security technology and establish operational procedures to prevent fraud, break-ins, damage and
failures, there can be no assurance that these security measures will be adequate. A significant
failure of security measures or operational procedures could have a material adverse effect on our
business and our future financial performance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, both our centralized data center and our back-up systems are separately located in the
greater Mumbai area. In the event of a regional disaster such as an earthquake, it is possible that
both systems could be simultaneously damaged or destroyed. Although we have established a remote
disaster recovery site at Bangalore that replicates our network and certain applications currently
based in Mumbai, and believe that we will be able to retrieve critical applications within an
optimal time frame, it would still take some time to make the system fully operational.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>HDFC Limited controls a significant percentage of our share capital and exercises substantial
influence over board decisions.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Housing Development Finance Corporation Limited (&#147;HDFC Limited&#148;) and its subsidiaries owned 22.0%
of our equity as of March&nbsp;31, 2006. So long as HDFC Limited and its subsidiaries hold at least a
20.0% equity stake in us, HDFC Limited is entitled to nominate the two directors who are not
required to retire by rotation to our board, including the Chairman and our Managing Director,
subject to RBI approval. Accordingly, HDFC Limited may be able to exercise substantial control over
our board and over matters subject to a shareholder vote.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>We may face potential conflicts of interest relating to our principal shareholder, HDFC Limited</I></B><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although we currently have no agreements with HDFC Limited or any other HDFC group companies that
restrict us from offering products and services that are offered by them, our relationship with
these companies may cause us not to offer products and services that are already offered by other
HDFC group companies or may effectively prevent us from taking advantage of business opportunities.
As a result, any conflicts of interest between HDFC Limited and us or any other HDFC group
companies and us could adversely affect our business and the price of our equity shares and ADSs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>RBI guidelines relating to ownership in private banks could discourage or prevent a change of
control or other business combination involving us and could require HDFC Limited to reduce
substantially its equity interest in us.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The RBI has issued guidelines concerning ownership in private sector banks. 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
stockholders. Further RBI&#146;s approval is required before we can register the transfer of 5% or more
of our shares (paid up capital) to an individual or group.
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We believe that the new rules will not be applied to the equity interest in us held by HDFC Limited
and its subsidiaries.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>We may face increased competition as a result of recently revised guidelines that relax
restrictions on the presence of foreign banks in India.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In March&nbsp;2004, the Ministry of Commerce and Industry of India revised guidelines on foreign
investors in the Indian banking sector. The revised guidelines permit up to 74% of the paid-up
capital of a bank to be held by foreign investors and allow foreign banks to operate in India
through branches, wholly-owned subsidiaries or subsidiaries that hold an aggregate foreign
investment of up to 74% in a private bank. Implementation of the revised guidelines will take place
in two phases. From March&nbsp;2005 to March&nbsp;2009, foreign banks will be permitted to establish a
presence in India only through wholly-owned subsidiaries that meet certain criteria, and the
acquisition of holdings in private sector Indian banks will be permitted only with respect to banks
identified by the RBI for restructuring. The second phase of implementation of the revised
guidelines will commence in April&nbsp;2009 after a review of the first phase. Any growth in the
presence of foreign banks or in foreign investments in Indian banks may increase the competition
that we face and could have a material adverse effect on our business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>If we fail to comply with Section&nbsp;404 of the Sarbanes-Oxley Act of 2002, our reputation and
the value of our securities may be adversely affected.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;404 of the Sarbanes Oxley Act of 2002 (&#147;Section&nbsp;404&#148;) requires us to include in our Annual
Report on Form 20-F management&#146;s assessment of the effectiveness of our internal controls over
financial reporting, together with an attestation report from our auditors. Section&nbsp;404 applies to
us as of March&nbsp;31, 2007. We have recently begun a formal process for the purposes of compliance
with Section&nbsp;404 and although we expect to complete this in a
timely manner, there is no assurance we will be able to do so.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>A change in U.S. GAAP accounting standards for employee stock options is likely to have an adverse
impact on our net income.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In December&nbsp;2004, the Financial Accounting Standards Board issued Statement of Financial Accounting
Standards No.&nbsp;123(R), Share-Based Payment, which eliminates the ability to account for share-based
compensation transactions using the intrinsic value approach, which we currently use, and requires
instead that such transactions be accounted for using a fair-value based method. Application of
SFAS 123(R) is likely to reduce our net income from what we would otherwise report using the
intrinsic value approach. We are required to apply SFAS 123(R) to all awards granted, modified or
settled in our first reporting period under U.S. GAAP after June&nbsp;15, 2006. In applying the
standard, we can elect to follow either a prospective method or a retrospective method under which
we would restate our previously issued financial statements. We have
since elected to follow prospective method in implementing SFAS 123(R). If we were to adopt the standard using the retrospective
method, our net income would have been Rs. 900.9&nbsp;million less than reported in the year ended March
31, 2005 and Rs. 1,229.9&nbsp;million less than reported in the year ended March&nbsp;31,2006. See also
&#147;Management&#146;s Discussion and Analysis &#151; New Accounting Pronouncements &#151; Share-Based Payments&#148; and
Note 2(q) to our audited financial statements included elsewhere herein.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Risks Relating to Investments in Indian Companies</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>A slowdown in economic growth in India could cause our business to suffer</I></B><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our performance and the quality and growth of our assets are necessarily dependent on the health of
the overall Indian economy. A slowdown in the Indian economy could adversely affect our business,
including our ability to grow our asset portfolio, the quality of our assets, and our ability to
implement our strategy. In particular, because India depends significantly on imported oil for its
energy needs, the Indian economy could be adversely affected by the continuing high oil prices.
India&#146;s economy could also be adversely
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">affected by a general rise in interest rates, weather conditions adversely affecting agriculture or
other factors. In addition, the Indian economy is in a state of transition. The share of the
services sector of the economy is rising while that of the industrial, manufacturing and
agricultural sectors is declining. It is difficult to gauge the impact of these fundamental
economic changes on our business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Political instability or changes in the government in India could delay the liberalization of the
Indian economy and adversely affect economic conditions in India generally, which could impact our
financial results and prospects.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Since 1991, successive Indian governments have pursued policies of economic liberalization,
including significantly relaxing restrictions on the private sector. Nevertheless, the role of the
Indian central and state governments in the Indian economy as producers, consumers and regulators
has remained significant. The leadership of India has changed many times since 1996. The current
coalition-led central government, which came to power in May&nbsp;2004, has announced policies and taken
initiatives that support the economic liberalization policies that have been pursued by previous
central governments. However, we cannot assure ADS holder that these liberalization policies will
continue in the future. The rate of economic liberalization could change, and specific laws and
policies affecting banking and finance companies, foreign investment, currency exchange and other
matters affecting investment in our securities could change as well. Any significant change in
India&#146;s economic liberalization and deregulation policies could adversely affect business and
economic conditions in India generally and our business in particular.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Terrorist attacks, civil unrest and other acts of violence or war involving India and other
countries could adversely affect the financial markets and our business</I></B><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Terrorist attacks and other acts of violence or war may negatively affect the Indian markets on
which our equity shares trade and also adversely affect the worldwide financial markets. These acts
may also result in a loss of business confidence, make travel and other services more difficult and
ultimately adversely affect our business. In addition, any deterioration in relations between India
and Pakistan might result in investor concern about stability in the region, which could adversely
affect the price of our equity shares and ADSs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;India has also witnessed civil disturbances in recent years and it is possible that future civil
unrest as well as other adverse social, economic and political events in India could have an
adverse impact on us. Such incidents could also create a greater perception that investment in
Indian companies involves a higher degree of risk and could have an adverse impact on our business
and the price of our equity shares and ADSs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Natural calamities could have a negative impact on the Indian economy and cause our business to
suffer.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;India has experienced natural calamities such as earthquakes, a tsunami, floods and drought in the
past few years. The extent and severity of these natural disasters determines their impact on the
Indian economy. For example, as a result of drought conditions in the country during fiscal 2003,
the agricultural sector recorded a negative growth of 5.2%. Further prolonged spells of below
normal rainfall or other natural calamities could have a negative impact on the Indian economy,
adversely affecting our business and the price of our equity shares and ADSs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Any downgrading of India&#146;s debt rating by an international rating agency could have a negative
impact on our business.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any adverse revisions to India&#146;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 additional financing is available. This
could have an adverse effect on our business and future financial performance and our ability to
obtain financing and fund our growth.
</DIV>




<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>We need to take prior RBI approval for opening new branches to increase our infrastructure and
expand our reach into different geographical segments. Delay in getting
approval for branches could have a negative impact on our future
financial performance.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The RBI
introduced a liberalized branch licensing policy in September&nbsp;2005. We have applied
for branches under the said policy. Till date we have not received any approvals for the same.
However, RBI has advised us that the same is under review. Any prolonged delay on the receipt of
such documents could adversely affect our future financial performance.
</DIV>



</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Risks Relating to the ADSs and Equity Shares</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Historically, our ADSs have traded at a significant premium to the trading prices of our underlying
equity shares, a situation which may not continue.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Historically, our ADSs have traded on the New York Stock Exchange at a substantial premium to the
trading prices of our underlying equity shares on the Indian stock exchanges. Please see &#147;Price
Range of Our American Depositary Shares and Equity Shares&#148; for the underlying data. We believe that
this price premium has resulted from the relatively small portion of our market capitalization
previously represented by ADSs, restrictions imposed by Indian law on the conversion of equity
shares into ADSs, and an apparent preference for investors to trade dollar-denominated securities.
Over time some of the restrictions on issuance of ADSs imposed by Indian law have been relaxed
and we expect that other restrictions may be relaxed in the future. No assurances can be made that
the historical premium enjoyed by ADSs compared to equity shares will not be reduced or eliminated.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>ADS holder will not be able to vote.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investors in ADSs will have no voting rights, unlike holders of the equity shares. Under the
deposit agreement, the depositary will abstain from voting the equity shares represented by the
ADSs. If ADS holders wish, they may withdraw the equity shares underlying the ADSs and seek to vote
(subject to Indian restrictions on foreign ownership) the equity shares they obtain upon
withdrawal. However, this withdrawal process may be subject to delays and ADS holder may not be
able to redeposit the equity shares. For a discussion of the legal restrictions triggered by a
withdrawal of the equity shares from the depositary facility upon surrender of ADSs, see
&#147;Restrictions on Foreign Ownership of Indian Securities&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>ADS holder&#146;s ability to withdraw equity shares from the depositary facility is uncertain and may be
subject to delays.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;India&#146;s restrictions on foreign ownership of Indian companies limit the number of equity shares
that may be owned by foreign investors and generally require government approval for foreign
investments. Investors who withdraw equity shares from the ADS depositary facility for the purpose
of selling such equity shares will be subject to Indian regulatory restrictions on foreign
ownership upon withdrawal. It is possible that this withdrawal process may be subject to delays.
For a discussion of the legal restrictions triggered by a withdrawal of equity shares from the
depositary facility upon surrender of ADSs, see &#147;Restrictions on Foreign Ownership of Indian
Securities&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>There is a limited market for the ADSs.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although our ADSs are listed and traded on the New York Stock Exchange, we cannot be certain that
any trading market for our ADSs will be sustained, or that the present price will correspond to the
future price at which our ADSs will trade in the public market. Indian legal restrictions may also
limit the supply of ADSs. The only way to add to the supply of ADSs would be through an additional
issuance. We cannot guarantee that a market for the ADSs will continue.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Conditions in the Indian securities market may affect the price or liquidity of our equity
shares and ADSs.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Indian securities markets are smaller and more volatile than securities markets in more
developed economies. The Indian stock exchanges have in the past experienced substantial
fluctuations in the prices
</DIV>

</DIV>
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</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">of listed securities. The BSE Sensex, which is an index composed of 30 of the largest and most
actively traded stocks on the Bombay Stock Exchange has been very volatile for the last few months.
The governing bodies of the Indian stock exchanges have from time to time imposed restrictions on
trading in certain securities, limitations on price movements and margin requirements. Although the
price of our stock has not been as volatile as the markets generally, future fluctuations could
have a material adverse affect on the price of our equity shares and ADSs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Settlement of trades of equity shares on Indian stock exchanges may be subject to delays</I></B><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The equity shares represented by our ADSs are listed on the National Stock Exchange and The Stock
Exchange, Mumbai. Settlement on these stock exchanges may be subject to delays and an investor in
equity shares withdrawn from the depositary facility upon surrender of ADSs may not be able to
settle trades on these stock exchanges in a timely manner.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>ADS holder may be unable to exercise preemptive rights available to other shareholders.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A company incorporated in India must offer its holders of equity shares preemptive 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 these rights have been waived by
at least 75% of the company&#146;s shareholders present and voting at a shareholders&#146; general meeting.
U.S. investors in our ADSs may be unable to exercise preemptive rights for our equity shares
underlying our ADSs unless a registration statement under the Securities Act is effective with
respect to those rights or an exemption from the registration requirements of the Securities Act is
available. Our decision to file a registration statement will depend on the costs and potential
liabilities associated with any registration statement as well as the perceived benefits of
enabling U.S. investors in our ADSs to exercise their preemptive rights and any other factors we
consider appropriate at the time. We do not commit to filing a registration statement under those
circumstances. If we issue any securities in the future, these securities may be issued to the
depositary, which may sell these securities in the securities markets in India for the benefit of
the investors in our ADSs. There can be no assurance as to the value, if any, the depositary would
receive upon the sale of these securities. To the extent that investors in our ADSs are unable to
exercise preemptive rights, their proportional interests in us would be reduced.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Because the equity shares underlying our ADSs are quoted in rupees in India, ADS holder may be
subject to potential losses arising out of exchange rate risk on the Indian rupee and risks
associated with the conversion of rupee proceeds into foreign currency.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fluctuations in the exchange rate between the U.S. dollar and the Indian rupee may affect the value
of ADS holder&#146;s investment in our ADSs. Specifically, if the relative value of the Indian rupee to
the U.S. dollar declines, as it generally has over the past several years, each of the following
values will also decline:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="font-family: Wingdings">&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the U.S. dollar equivalent of the Indian rupee trading price of
our equity shares in India and, indirectly, the U.S. dollar
trading price of our ADSs in the United States;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="font-family: Wingdings">&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the U.S. dollar equivalent of the proceeds that ADS holder would
receive upon the sale in India of any equity shares that ADS
holder withdraw from the depositary; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="font-family: Wingdings">&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the U.S. dollar equivalent of cash dividends, if any, paid in
Indian rupees on the equity shares represented by our ADSs.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Financial instability in other countries, particularly emerging market countries, could disrupt our
business and affect the price of our equity shares and ADSs.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although economic conditions are different in each country, investors&#146; 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 the financial systems of other emerging markets may cause
increased volatility in Indian financial markets and indirectly in the Indian economy in general.
Any worldwide financial
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">instability could also have a negative impact on the Indian economy, including the movement of
exchange rates and interest rates in India, which could adversely affect the Indian financial
sector, including us. Any financial disruption could have an adverse effect on our business, our
future financial performance, our shareholders&#146; equity and the price of our equity shares and ADSs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>ADS holder may not be able to enforce a judgment of a foreign court against us.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are a limited liability company incorporated under the laws of India. All but one of our
directors and executive officers and some of the experts named in this report are residents of
India and almost all of our assets and the assets of these persons are located in India. It may not
be possible for investors in our ADSs to effect service of process outside India upon us or our
directors and executive officers and experts named in the report that are residents of India or to
enforce judgments obtained against us or these persons in foreign courts predicated upon the
liability provisions of foreign countries, including the civil liability provisions of the federal
securities laws of the United States. Moreover, it is unlikely that a court in India would award
damages on the same basis as a foreign court if an action were brought in India or that an Indian
court would enforce foreign judgments if it viewed the amount of damages as excessive or
inconsistent with Indian practice.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>There may be less company information available on Indian securities markets than securities
markets in developed countries</I></B><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There is a difference between the level of regulation and monitoring of the Indian securities
markets and the activities of investors, brokers and other participants and that of markets in the
United States and other developed economies. SEBI and the stock exchanges are responsible for
improving disclosure and other regulatory standards for the Indian securities markets. SEBI has
issued regulations and guidelines on disclosure requirements, insider trading and other matters.
There may, however, be less publicly available information about Indian companies than is regularly
made available by public companies in developed economies.
</DIV>

</DIV>
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<DIV align="left">
<A name="106"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>PRICE RANGE OF OUR AMERICAN DEPOSITARY SHARES AND EQUITY SHARES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our ADSs, each representing three equity shares, par value Indian Rs. 10 per share, are listed
on the New York Stock Exchange under the symbol &#147;HDB&#148;. Our equity shares, including those
underlying the ADSs, are listed on the National Stock Exchange under the symbol HDFCBANK and The
Stock Exchange, Mumbai under the code 500180. Our fiscal quarters end on June&nbsp;30 of each year for
the first quarter, September&nbsp;30 for the second quarter, December&nbsp;31 for the third quarter and March
31 for the fourth quarter.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Trading Prices of Our ADSs on the New York Stock Exchange</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table shows:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="font-family: Wingdings">&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the reported high and low prices for our ADSs in U.S. dollars on the New York Stock Exchange; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="font-family: Wingdings">&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the average daily trading volume for our ADSs on the New York Stock Exchange.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Average daily ADS</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #ffffff"><B>Price per ADS</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #ffffff"><B>trading volume</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>High</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Low</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>(Number of ADSs)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Fiscal</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>2003</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">16.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">11.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42,778</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>2004</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">68,228</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>2005</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">First Quarter </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">103,313</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Second Quarter </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,966</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Third Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">88,325</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Fourth Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">194,834</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>2006</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">First Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">127,761</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Second Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">142,473</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Third Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">205,373</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Fourth Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">193,353</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Most Recent Six Months</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">March&nbsp;2006 </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">170,182</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">April&nbsp;2006</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">221,937</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">May&nbsp;2006 </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">247,445</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">June&nbsp;2006 </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">368,386</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">July&nbsp;2006 </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">206,525</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;2006 </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">123,052</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->40<!-- /Folio -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Trading Prices of Our Equity Shares on the National Stock Exchange</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table shows:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="font-family: Wingdings">&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the reported high and low market prices for our equity shares in rupees on the National Stock
Exchange;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="font-family: Wingdings">&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the imputed high and low closing sales prices for our equity shares translated into U.S. dollars; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="font-family: Wingdings">&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the average daily trading volume for our equity shares on the National Stock Exchange.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Price per</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Price per</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average daily</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>equity share</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>equity share</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>equity share</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>High</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Low</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>High</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Low</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>trading volume</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="19" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Fiscal Year</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>2002 </B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">255.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">184.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">US$&nbsp;</TD>
    <TD align="right">5.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">US$&nbsp;</TD>
    <TD align="right">4.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">85,109</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>2003 </B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">256.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">186.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">94,016</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>2004 </B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">406.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">231.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">294,090</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>2005 </B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">First Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">400.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">256.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250,044</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Second Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">416.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">341.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">338,098</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Third Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">530.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">396.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">346,242</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Fourth Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">628.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">475.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">366,794</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>2006</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">First Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">643.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">448.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">262,870</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Second Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">765.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">537.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">438,678</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Third Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">748.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">603.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">465,565</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Fourth Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">812.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">680.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">526,244</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Most Recent Six Months</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">March</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">812.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">721.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">542,918</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">April</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">865.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">740.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">555,505</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">May</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">895.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">710.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">571,663</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">June</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">814.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">615.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">481,029</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">July</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">816.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">680.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">388,205</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">870.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">764.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">278,540</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The closing
price for our equity shares on the National Stock Exchange was Rs.
925.4 (US$ 20.8) per share on September&nbsp;29, 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of March&nbsp;31, 2006 there were 184,168 holders of record of our equity shares, excluding ADSs, of
which 44 had registered addresses in the United States and held an aggregate of 37,097 of our equity
shares.
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->41<!-- /Folio -->


<DIV align="left">
<A name="107"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>DESCRIPTION OF EQUITY SHARES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We incorporate by reference the information disclosed under &#147;Description of Equity Shares&#148; in
our registration statement on Form F-3 filed on January&nbsp;21, 2005 (File No 333-121096).
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->42<!-- /Folio -->


<DIV align="left">
<A name="108"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>DIVIDEND POLICY</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have paid dividends every year since fiscal 1997. The following table sets forth, for the
periods indicated, the dividend per equity share and the total amount of dividends paid on the
equity shares, both exclusive of dividend tax. All dividends were paid in rupees.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>Dividend per equity share</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>Total amount of dividends paid(1)</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>(in millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Relating to Fiscal Year</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2002</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">2.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">0.056</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">703.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">15.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2003</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.067</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">850.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2004</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.079</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2005</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.101</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,400.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2006</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.124</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,722.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38.7</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes dividends paid on shares held by the Employees
Welfare Trust.</TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our dividends are generally declared and paid in the fiscal year following the year as to which
they relate. Under Indian law, a company pays dividends upon a recommendation by its board of
directors and approval by a majority of the shareholders at the annual general meeting of
shareholders held within six months of the end of each fiscal year. The shareholders have the right
to decrease but not to increase the dividend amount recommended by the board of directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currently, we pay a 12.5% direct tax, a 10% surcharge and a 2% of add on tax in respect of
dividends paid by us. These are direct taxes paid by us; these taxes are not payable by
shareholders and are not withheld or deducted from the dividend payments set forth above. The tax
rates imposed on us in respect of dividends paid in prior periods varied, and in fiscal 2003, tax
on dividend was payable by shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Future dividends will depend on our revenues, cash flows, financial condition (including capital
position) and other factors. ADS holders will be entitled to receive dividends payable in respect
of the equity shares represented by ADSs. Cash dividends in respect of the equity shares
represented by ADSs will be paid to the depositary in Indian rupees and, except in certain
instances will be converted by the depositary into U.S. dollars. The depositary will distribute
these proceeds to ADS holders. The equity shares represented by ADSs will rank equally with all
other equity shares in respect of dividends.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For a description of regulation of dividends, see &#147;Supervision and Regulation &#151; Requirements of the
Banking Regulation&nbsp;Act &#151; Restrictions on Payment of
Dividends&#148;.
</DIV>

</DIV>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->43<!-- /Folio -->


<DIV align="left">
<A name="109"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>SELECTED FINANCIAL AND OTHER DATA</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth our selected financial and operating data. Our selected income
statement data for the fiscal years ended March&nbsp;31, 2004, 2005 and 2006 and the selected balance
sheet data as of March&nbsp;31, 2005 and 2006 are derived from our audited financial statements included
in this report together with the report of Deloitte Haskins &#038; Sells, independent registered public
accounting firm. Our selected balance sheet data as of March&nbsp;31, 2002, March&nbsp;31, 2003, March&nbsp;31,
2004 and selected income data for the year ended March&nbsp;31, 2002 and March&nbsp;31, 2003 are derived from
our audited financial statements not included in this report. For the convenience of the reader,
the selected financial data as of and for the year ended March&nbsp;31, 2006 have been translated into
U.S. dollars at the rate on such date of Rs.&nbsp;44.48 per US$ 1.00.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You should read the following data with the more detailed information contained in &#147;Management&#146;s
Discussion and Analysis of Financial Condition and Results of Operations&#148; and our financial
statements. Footnotes to the following data appear below the final table.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="23" style="border-bottom: 1px solid #000000"><B>Years ended March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 0px solid #000000"><B>2002</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 0px solid #000000"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 0px solid #000000"><B>2004</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 0px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 0px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 0px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="23" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="23"><B>(In millions, except per equity share data)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Selected income statement data:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest and dividend revenue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">16,448.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">19,424.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">24,591.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">29,209.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">43,528.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">978.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest expense </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,762.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,779.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,983.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,223.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,621.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">441.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="23" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net interest revenue </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,685.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,645.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,608.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,985.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,906.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">537.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Allowance for credit losses, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">451.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">741.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,343.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,048.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,032.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">113.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="23" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net interest revenue after allowance for
credit losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,233.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,904.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,265.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,937.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,874.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">424.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-interest revenue, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,215.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,397.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,697.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,211.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,147.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">273.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="23" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net revenue </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,449.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,301.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,962.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,149.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,022.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">697.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-interest expense </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,196.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,057.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,369.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,413.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,846.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">401.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="23" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income before income taxes </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,253.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,243.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,593.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,735.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,175.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">296.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income tax expense </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,294.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,729.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,838.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,125.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,965.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">89.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="23" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net income before minority interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">2,958.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">3,513.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">4,754.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">6,609.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">9,209.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">207.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="23" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Minority interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="23" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">2,958.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">3,513.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">4,754.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">6,609.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">9,187.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">206.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="23" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Per equity share data:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Earnings per share, basic</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">11.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">12.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">16.87</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">22.78</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">29.45</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$</TD>
    <TD align="right">0.66</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Earnings per share, diluted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.04</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.51</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22.60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">29.08</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">0.65</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dividends per share </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">5.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">0.12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Book value(1) </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">79.06</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">93.36</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">110.36</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">159.22</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">176.49</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.97</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Equity share data:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Equity shares outstanding at end of period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">279.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">279.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">282.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">309.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">313.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">313.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Weighted average equity shares outstanding
&#151; basic</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">266.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">279.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">281.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">290.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">311.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">311.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Weighted average equity shares outstanding
&#151; diluted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">267.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">281.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">284.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">292.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">315.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">315.9</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->44<!-- /Folio -->
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="23" style="border-bottom: 1px solid #000000"><B>Years ended March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2002</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2003</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="23"><B>(In millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Selected balance sheet data:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">243,032.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">311,840.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">426,835.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">535,544.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">790,969.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$</TD>
    <TD align="right">&nbsp;17,782.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash and cash equivalents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,590.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,944.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33,010.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,575.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61,194.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,375.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Term placements (2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,747.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,565.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,699.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,243.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">230.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Loans, net of allowance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71,528.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118,299.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">177,681.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">256,486.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">395,274.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,886.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Of which:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:75px; text-indent:-15px">Non-performing loans, net of
specific allowances</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">536.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">683.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">269.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">591.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,578.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investments:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Investments held for trading </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,837.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,976.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,233.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,278.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,945.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">66.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Investments available for sale </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">80,320.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">98,929.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">133,274.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">204,292.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">273,457.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,147.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD nowrap><DIV style="margin-left:45px; text-indent:-15px">Investments held to maturity(3) </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,429.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,426.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36,368.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">119,588.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">141,332.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">175,876.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">205,571.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">276,402.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,214.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Of which:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Credit substitutes(4)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,126.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,752.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,557.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,880.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,751.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">219.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">220,971.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">285,727.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">395,619.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">486,206.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">735,476.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,535.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Long-term debt </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,157.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,116.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,086.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,028.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,028.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">382.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Short-term borrowings </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,600.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,579.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,064.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62,079.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75,676.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,701.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total deposits </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">176,538.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">223,760.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">304,062.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">363,542.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">557,305.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,529.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Minority Interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">225.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shareholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,060.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,113.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,215.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49,338.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55,267.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,242.6</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="22" style="border-bottom: 1px solid #000000"><B>Years ended March 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2002</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
   <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>

    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2003</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="22"><B>(In millions)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Period average(5)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total assets </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">202,013.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">257,020.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">357,123.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">448,029.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">621,249.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">US$&nbsp;</TD>
    <TD align="right">13,966.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest-earning assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">183,488.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">230,451.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">327,523.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">424,620.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">589,311.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,248.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Loans, net of allowance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59,374.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">82,461.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">136,527.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">204,919.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">323,709.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,277.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">185,512.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">232,933.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">328,458.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">407,265.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">572,893.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,879.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest-bearing liabilities </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">137,681.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">175,598.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">236,551.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">298,276.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">419,000.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,420.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Long-term debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,159.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,280.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,605.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,371.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,345.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">165.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Short-term borrowings </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,105.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,362.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33,040.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42,594.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">73,569.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,654.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total deposits </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">142,854.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">186,847.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">262,707.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">342,693.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">463,701.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,425.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Of which:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest-bearing deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">117,415.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">157,955.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">200,904.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250,310.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">338,085.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,600.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shareholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,500.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,087.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,664.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40,764.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48,355.80</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,087.1</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->45<!-- /Folio -->




<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19" style="border-bottom: 1px solid #000000"><B>As of or for the years ended March 31,</B></TD>
</TR>

<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2002</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2003</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19"><B>(In percentage)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Profitability:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net income (after minority interest) as a percentage of:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Average total assets </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Average shareholders&#146; equity </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dividend payout ratio(6)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Spread(7)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net interest margin(8) </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cost-to-net revenue ratio(9) </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cost-to-average assets ratio(10) </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Capital:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total capital adequacy ratio(11) </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tier 1 capital adequacy ratio(11)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tier 2 capital adequacy ratio(11)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average shareholders&#146; equity as a percentage of average total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Asset quality:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross non-performing loans as a percentage of gross loans </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross non-performing customer assets as a percentage of gross customer assets(12)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net non-performing loans as a percentage of net loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net non-performing customer assets as a percentage of net customer assets(12)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net non-performing loans as a percentage of total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Specific allowance for credit losses as a percentage of gross non-performing loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">72.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">91.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">85.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">67.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total allowance for credit losses as a percentage of gross non-performing loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">81.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">78.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">116.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">133.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Allowance for credit losses as a percentage of gross total loans </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.4</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents the difference between total assets and total liabilities, divided by the
number of shares outstanding at the end of each reporting period.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes placements with banks and financial institutions with original maturities
of greater than three months.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>During the year ended March&nbsp;31, 2005 we transferred certain securities classified as
held to maturity to the available for sale category for reasons not permitted under U.S. GAAP.
As a result we were required to transfer all remaining securities to the available for sale
category and we are prevented from establishing a held to maturity portfolio until after March
31, 2007. See &#147;Management&#146;s Discussion and Analysis of Financial Condition and Results of
Operations&#148;.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Credit substitutes consist of investments in commercial paper, debentures and
preference shares issued by our corporate customers. See &#147;Business &#151; Commercial Banking
Products &#151; Commercial Loan Products and Credit Substitutes&#148;.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>Average balances are the average of daily outstanding amounts. Average figures are
unaudited.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(6)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents the ratio of total dividends payable on equity shares relating to each
fiscal year, excluding the dividend distribution tax, as a percentage of net income of that
year. Dividends of each year are typically paid in the following fiscal year. See &#147;Dividend
Policy&#148;.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(7)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents 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 revenue to average interest-earning assets. Cost of average interest-bearing
liabilities is the ratio of interest expense to average interest-bearing liabilities. For
purposes of calculating spread, interest bearing liabilities include non-interest bearing
current accounts and cash floats from transactional services.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(8)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents the ratio of net interest revenue to average interest-earning assets. The
difference in net interest margin and spread arises due to the difference in the amount of
average interest-earning assets</TD>
</TR>

</TABLE>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->46<!-- /Folio -->




<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>and average interest bearing liabilities. If average
interest-earning assets exceed average interest-bearing liabilities, net interest margin is
greater than spread. If average interest-bearing liabilities exceed average interest-earning
assets, net interest margin is less than spread.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(9)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents the ratio of non-interest expense to the sum of net interest revenue and
non-interest revenue.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(10)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents the ratio of non-interest expense to average total assets.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(11)</TD>
    <TD>&nbsp;</TD>
    <TD>Tier 1 and Tier 2 capital adequacy ratios are computed in accordance with the
guidelines of the Reserve Bank of India, based on financial statements prepared in accordance
with Indian GAAP. See &#147;Supervision and Regulation&#148;.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(12)</TD>
    <TD>&nbsp;</TD>
    <TD>Customer assets consist of loans and credit substitutes.</TD>
</TR>

</TABLE>




<P align="right" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">47
</DIV>

<DIV align="left">
<A name="110"></A>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SELECTED STATISTICAL INFORMATION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following information should be read together with our financial statements included in
this report as well as &#147;Management&#146;s Discussion and Analysis of Financial Condition and Results of
Operations&#148;. All amounts presented in this section are in accordance with U.S. GAAP, other than
capital adequacy ratios, and are audited, except for average amounts. Footnotes appear at the end
of each related section of tables.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Average Balance Sheet</B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 daily
average of 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 non-performing loans and are net of allowance
for credit losses. We have not recalculated tax-exempt income on a tax-equivalent basis.
</DIV>

<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="19%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 6pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="35" style="border-bottom: 1px solid #000000"><B>Years ended March 31,</B></TD>
</TR>
<TR style="font-size: 6pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 6pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Interest</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Interest</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Interest</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Average</B></TD>
</TR>
<TR style="font-size: 6pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Average</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>revenue/</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>yield/</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Average</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>revenue/</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>yield/</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Average</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>revenue/</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Yield/</B></TD>
</TR>
<TR style="font-size: 6pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Balance</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>expense</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>cost</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Balance</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>expense</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>cost</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>balance</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>expense</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>cost</B></TD>
</TR>
<TR style="font-size: 6pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="35"><B>(in millions, except percentages)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Assets:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest-earning assets:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash equivalents </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">24,370.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">856.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3.5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">30,541.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">835.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.7</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">36,720.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">860.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.3</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Term placements </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,104.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">252.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">5.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,132.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">398.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">6.5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,471.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">648.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">6.9</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investments available for sale:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Tax free(1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,286.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,475.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">5.8</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,486.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">926.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">4.8</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,856.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">598.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">5.5</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Taxable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">99,107.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,129.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">7.2</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">151,689.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,678.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">6.4</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">205,220.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,371.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">6.0</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investments held to maturity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,576.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,882.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">9.1</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,001.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">793.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">7.9</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investments held for trading</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,551.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">289.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">5.2</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,850.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">144.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">7.8</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,332.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">195.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">5.9</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Loans, net:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Retail loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,903.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,829.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">9.1</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">94,398.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,304.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">8.8</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">157,272.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,864.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">9.5</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wholesale loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">83,623.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,875.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">8.2</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">110,520.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,126.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">7.4</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">166,437.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,989.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">8.4</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="35" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total interest-earning assets:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">327,523.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">24,591.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">7.5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">424,620.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">29,209.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">6.9</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">589,311.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD colspan="2" align="center">43,528.0</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">7.4</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="35" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-interest-earning assets:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,631.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,732.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,116.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Property and equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,424.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,251.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,416.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,544.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,425.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,405.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>

    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>

    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>

    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total non-interest earning assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,600.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,409.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,938.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">357,123.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">24,591.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">6.9</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">448,029.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">29,209.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">6.5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">621,249.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">43,528.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">7.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="35" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Liabilities:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest-bearing liabilities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Savings account deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">61,535.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">1,633.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.7</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">97,026.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">2,539.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.6</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">138,850.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">3,731.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.7</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Time deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">139,368.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,645.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">6.2</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">153,284.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,534.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">5.6</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">199,235.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,858.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">6.0</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Short-term borrowings(2) </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33,040.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,435.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">4.3</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42,594.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,759.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">4.1</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">73,569.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,497.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">4.8</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Long-term debt </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,605.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">268.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">10.3</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,371.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">390.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">7.3</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,345.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">534.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">7.3</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="35" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total interest-bearing liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">236,551.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,983.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">5.1</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">298,276.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">13,223.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">4.4</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">419,000.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">19,621.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">4.7</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="35" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-interest-bearing liabilities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap><DIV style="margin-left:15px; text-indent:-15px">Non-interest-bearing deposits (3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61,803.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">92,382.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">125,616.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,104.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,606.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,276.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total non-interest-bearing
liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">91,907.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">108,988.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">153,893.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="35" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">328,458.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">11,983.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3.6</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">407,265.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">13,223.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3.2</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">572,893.7</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD colspan="2" align="center">19,621.8</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3.4</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="35" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shareholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,664.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40,764.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48,355.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="35" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total liabilities and shareholders&#146;
equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">357,123.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">11,983.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3.4</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">448,029.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">13,223.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">621,249.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">19,621.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3.2</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="35" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Yields on tax free securities are not on a tax equivalent basis.<BR></TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes securities sold under repurchase agreements.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes current accounts and cash floats from transactional services.</TD>
</TR>

</TABLE>


</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->48<!-- /Folio -->

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Analysis of Changes in Interest Revenue and Interest Expense Volume and Rate</B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth, for the periods indicated, the allocation of the changes in our
interest revenue and interest expense between average volume and changes in average rates.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>Fiscal 2005 vs. Fiscal 2004</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>Fiscal 2006 vs. Fiscal 2005</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>Increase (decrease)<SUP style="font-size: 85%; vertical-align: text-top">(1)</sup> due to</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>Increase (decrease)<SUP style="font-size: 85%; vertical-align: text-top">(1)</sup> due to</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Change in</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Change In</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Net</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>average</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Change in</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Net</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Average</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Change in</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Change</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>volume</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Average rate</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>change</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Volume</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Average rate</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="23"><B>(in millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest revenue:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash equivalents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.</TD>
    <TD align="right">(20.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.</TD>
    <TD align="right">216.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.</TD>
    <TD align="right">(237.8</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.</TD>
    <TD align="right">19.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.</TD>
    <TD align="right">169.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.</TD>
    <TD align="right">(149.5</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Term placements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">145.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">94.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">254.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">217.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investments available for sale:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Tax free</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(548.7</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(338.4</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(210.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(328.5</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(410.5</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">82.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Taxable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,549.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,782.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,232.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,692.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,415.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(723.1</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investments held to maturity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(2,089.1</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,969.5</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(119.6</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(793.4</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(793.4</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investments held for trading</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(145.2</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(193.1</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">115.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(64.5</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Loans, net:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Retail loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,474.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,788.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(313.4</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,559.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,531.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,028.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wholesale loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,251.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,211.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(959.8</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,862.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,111.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,751.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="23" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total interest-earning assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.</TD>
    <TD align="right">4,617.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.</TD>
    <TD align="right">7,548.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.</TD>
    <TD align="right">&nbsp;(2,931.0</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.</TD>
    <TD align="right">&nbsp;14,318.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">12,356.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.</TD>
    <TD align="right">1962.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="23" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest expense:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Savings account deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.</TD>
    <TD align="right">905.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.</TD>
    <TD align="right">942.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.</TD>
    <TD align="right">(37.0</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.</TD>
    <TD align="right">1,192.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.</TD>
    <TD align="right">1,094.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.</TD>
    <TD align="right">97.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Time deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(110.4</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">863.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(973.6</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,323.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,558.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">765.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Short-term borrowings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">323.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">415.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(91.7</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">143.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">143.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Long-term debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">122.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">284.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(162.2</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,738.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,279.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">458.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="23" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total interest-bearing liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.</TD>
    <TD align="right">1,240.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.</TD>
    <TD align="right">2,505.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.</TD>
    <TD align="right">(1,264.5</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.</TD>
    <TD align="right">6,398.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.</TD>
    <TD align="right">5,075.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.</TD>
    <TD align="right">&nbsp;1,322.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="23" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net interest revenue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.</TD>
    <TD align="right">3,377.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.</TD>
    <TD align="right">5,043.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.</TD>
    <TD align="right">(1,666.5</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.</TD>
    <TD align="right">7,920.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.</TD>
    <TD align="right">7280.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.</TD>
    <TD align="right">639.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="23" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>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.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Yields, Spreads and Margins</B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth, for the periods indicated, the yields, spreads and interest margins
on our interest-earning assets.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>Years ended March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11"><B>(in millions, except percentages)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest revenue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.</TD>
    <TD align="right">24,591.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.</TD>
    <TD align="right">29,209.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.</TD>
    <TD align="right">43,528.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average interest-earning assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;&nbsp;327,523.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;&nbsp;424,620.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;&nbsp;589,311.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,983.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,223.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,621.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average interest-bearing liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">236,551.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">298,276.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">419,000.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">357,123.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">448,029.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">621,249.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average interest-earning assets as a percentage of average total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">91.7</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">94.8</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">94.9</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average interest-bearing liabilities as a percentage of average total
assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">66.2</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">66.6</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">67.4</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average interest-earning assets as a percentage of average
interest-bearing liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">138.5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">142.4</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">140.6</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Yield </DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">7.5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">6.9</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">7.4</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cost of funds <SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3.6</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3.2</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3.4</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Spread <SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP> </DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3.5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3.5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3.8</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net interest margin <SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP> </DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3.8</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3.8</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">4.1</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Excludes shareholder&#146;s equity.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents 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 revenue to average interest-earning assets. Cost of average interest-bearing
liabilities is the ratio of interest expense to</TD>
</TR>

</TABLE>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>



<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->49<!-- /Folio -->




<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>average interest-bearing liabilities. For purposes of calculating spread,
interest-bearing liabilities include non-interest bearing current accounts and
cash floats from transactional services.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Net interest margin is the ratio of net interest revenue to average interest-earning
assets. The difference in net interest margin and spread arises due to the difference in
amount of average interest-earning assets and average interest-bearing liabilities. If average
interest-earning assets exceed average interest-bearing liabilities, net interest margin is
greater than spread. If average interest-bearing liabilities exceed average interest-earning
assets, net interest margin is less than spread.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Returns on Equity and Assets</B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table presents selected financial ratios for the periods indicated.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>Years ended March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11"><B>(in millions, except percentages)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">4,754.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">6,609.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">9,187.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">357,123.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">448,029.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">621,249.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average shareholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,664.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40,764.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48,355.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net income as a percentage of average total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.3</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.5</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net income as a percentage of average shareholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">16.6</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">16.2</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">19.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average shareholders&#146; equity as a percentage of average total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">8.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">9.1</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">7.8</TD>
    <TD nowrap>%</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dividend
payout ratio</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">21.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">21.2</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">18.7</TD>
    <TD nowrap>%</TD>
</TR>


<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Investment Portfolio</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Available for Sale Investments</I></B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following tables set forth, as of the dates indicated, information related to our investments
available for sale.
</DIV>

<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="16%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 6pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="47" style="border-bottom: 1px solid #000000"><B>At March 31,</B></TD>
</TR>
<TR style="font-size: 6pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 6pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 6pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Amortized</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Fair</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Amortized</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Fair</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Amortized</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Fair</B></TD>
</TR>
<TR style="font-size: 6pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Cost</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>gain</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>loss</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>value</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>cost</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>gain</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>loss</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>value</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>cost</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>gain</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Loss</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Value</B></TD>
</TR>
<TR style="font-size: 6pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="47"><B>(in millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Government securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">63,535.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">1,426.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">37.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">64,924.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">111,482.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">1,017.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">672.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">111,827.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">189,660.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">405.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">1,957.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">188,108.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other debt securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,554.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,106.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">101.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,560.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39,320.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,171.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">181.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40,310.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,862.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">282.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">496.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,648.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="47" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total debt securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">94,089.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,533.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">138.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">97,484.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150,802.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,188.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">853.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">152,138.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">227,523.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">687.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,454.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">225,756.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="47" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-debt securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,083.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">907.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">201.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,789.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51,930.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">506.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">281.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,154.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,959.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">186.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">445.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,700.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="47" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">129,173.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">4,441.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">339.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">133,274.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">202,733.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">2,694.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">1,135.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">204,292.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">275,482.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">873.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">2,899.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">273,457.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="47" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Held to Maturity Investments</I></B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth, as of the dates indicated, information related to our investments
held to maturity:</DIV>


<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="16%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 6pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="47" style="border-bottom: 1px solid #000000"><B>At March 31,</B></TD>
</TR>
<TR style="font-size: 6pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 6pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 6pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan="3"><b>Amortized</b></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan="3"><b>Amortized</b></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan="3"><b>Amortized</b></TD>
</TR>
<TR style="font-size: 6pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Fair Value</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>gain</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>loss</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Cost</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Fair Value</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>gain</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>loss</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Cost</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Fair Value</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>gain</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>loss</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Cost</B></TD>
</TR>
<TR style="font-size: 6pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="47"><B>(in millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Government securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD>28,424.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD>1,180.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">1.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD>27,245.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other debt securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,633.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">511.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,123.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="47" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total debt securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>38,057.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>1,691.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36,368.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="47" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-debt securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="47" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD>38,057.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD>1,691.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">2.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD>36,368.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="47" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of March&nbsp;31, 2005 and March&nbsp;31, 2006, we had no investments held to maturity.
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->50<!-- /Folio -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Held for Trading Investments</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table sets forth, as of the dates indicated, information related to our investments
held for trading:
</DIV>

<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="16%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 6pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="47" style="border-bottom: 1px solid #000000"><B>At March 31,</B></TD>
</TR>
<TR style="font-size: 6pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 6pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 6pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Amortized</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Fair</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Amortized</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Fair</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Amortized</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Fair</B></TD>
</TR>
<TR style="font-size: 6pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>cost</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>gain</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>loss</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>value</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>cost</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>gain</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>loss</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>value</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Cost</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>gain</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>loss</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Value</B></TD>
</TR>
<TR style="font-size: 6pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="47"><B>(in millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Government
securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">4,244.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">25.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">4,269.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">1,278.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">1,278.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">2,948.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">6.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">8.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">2,945.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other debt
Securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,986.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,964.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="47" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total debt
securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,230.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,233.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,278.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,278.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,948.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">6.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">8.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">2,945.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="47" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-debt
Securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="47" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">6,230.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">26.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">23.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">6,233.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">1,278.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">1,278.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">2,948.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">6.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">8.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">2,945.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="47" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Residual Maturity Profile</I></B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth, for the periods indicated, an analysis of the residual maturity
profile of our investments in government and corporate debt securities classified as available for
sale securities and their market yields.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="30" style="border-bottom: 1px solid #000000"><B>At March 31, 2006</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Up to one year</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>One to five years</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Five to ten years</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>More than ten years&nbsp;</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Yield</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Yield</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Yield</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Yield</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="30"><B>(in millions, except percentages)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Government securities </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">31,097.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.85</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.</TD>
    <TD align="right">80,546.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.83</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">51,190.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.80</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">25,272.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.78</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other debt securities </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,755.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.79</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,869.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.86</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,025.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">8.07</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total debt securities, fair value </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33,853.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.01</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">108,415.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.10</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58,216.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.96</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,272.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.78</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total amortized cost </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">33,839.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">109,395.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">58,688.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">25,598.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Funding</I></B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our funding operations are designed to ensure stability, low cost of funding and effective
liquidity management. The primary source of funding is deposits raised from retail customers, which
were 69.2% and 62.3% of total deposits as of March&nbsp;31, 2005 and March&nbsp;31, 2006, respectively.
Wholesale banking deposits represented 30.8% and 37.7% of total deposits as of March&nbsp;31, 2005 and
March&nbsp;31, 2006, respectively.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Total Deposits</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth, for the periods indicated, our average outstanding deposits and the
percentage composition by each category of deposits. The average cost (interest expense divided by
the average of daily balance for the relevant period) of savings deposits was 2.7% in fiscal 2004,
2.6% in fiscal 2005 and 2.7% in fiscal 2006. The average cost of time deposits was 6.2% in fiscal
2004, 5.6% in fiscal 2005 and 6.0% in fiscal 2006. The average deposits for the periods set forth
are as follows:
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->51<!-- /Folio -->
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="23" style="border-bottom: 1px solid #000000"><B>Years ended March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>% of total</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>% of total</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>% of total</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="23"><B>(in millions, except percentages)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Current
deposits<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">61,803.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">23.5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">92,382.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">27.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">125,616.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">27.1</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Savings deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61,535.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">97,026.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">138,850.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Time deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">139,368.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">153,284.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">199,235.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="23" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">262,707.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">342,693.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">463,701.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="23" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes current accounts and cash floats from transactional services.</TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of March&nbsp;31, 2006, individual time deposits in excess of Rs. 0.1&nbsp;million have a balance to
maturity profile as follows-
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>At March 31, 2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Up to 3</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>More than 1</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Months</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>3 to 6 months</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>6 to 12 Months</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Year</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15"><B>(In millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance to
maturity for
deposits exceeding
Rs. 0.1&nbsp;million
each </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">73,162.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">39,403.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">75,861.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">38,301.9</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Short-term Borrowings</I></B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth, for the periods indicated, information related to our short-term
borrowings, which are comprised primarily of money-market borrowings. Short term borrowings exclude
deposits and securities sold under repurchase agreements.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

<TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>Years ended March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11"><B>(in millions, except percentages)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Period end balance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">24,064.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">62,079.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">75,676.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average balance during the period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">33,040.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">42,594.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">73,569.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Maximum outstanding</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">52,274.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">62,079.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">100,008.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average interest rate during the period (1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">4.3</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">4.1</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">4.8</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average interest rate at period end(2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">4.1</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">4.3</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">6.4</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents the ratio of interest expense on short-term borrowings to the average of
daily balances of short-term borrowings.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents the weighted average rate of short-term borrowings outstanding as of
March&nbsp;31, 2004, 2005 and 2006.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Subordinated Debt</I></B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We also obtain funds from the issuance of unsecured non-convertible subordinated debt securities,
which qualify as Tier 2 risk-based capital under the RBI&#146;s guidelines for assessing capital
adequacy. We issued three tranches of subordinated debt securities during calendar years 1998, 1999
and 2001 at coupon rates of 13.00%, 13.75% and 11.00% respectively. The 1998 tranche was repaid at
maturity in fiscal 2004. The 1999 and 2001 tranches are repayable in
fiscal 2007. During fiscal 2004, we issued subordinated debt securities aggregating Rs. 4.0&nbsp;billion, of which Rs. 3.95&nbsp;billion
carries a coupon rate of 5.90% and matures in May&nbsp;2013 and Rs. 50&nbsp;million carries a coupon rate of
6.0% and matures in May&nbsp;2016. During the year the Bank raised Rs. 12.02&nbsp;billion subordinated debt
at an annualized coupon between 7.5% to 8.6% and having a maturity
ranging from 9 to 10&nbsp;years. As of March 31, 2006  Rs. 17.0&nbsp;billion aggregate principal amount of subordinated debt was outstanding, of
which Rs. 94.12% qualified as Tier 2 capital.
</DIV>


</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->52<!-- /Folio -->

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">
<B><I>Asset Liability Gap and Interest Sensitivity Data</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth, for the periods indicated, our asset-liability gap position:
</DIV>



<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="19%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>As of March 31, 2006</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Total within</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Over 1 year</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Over 3 years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>0-28 Days</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>29-90 days</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>91-180 days</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>6-12 months</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>one year</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>to 3 years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>to 5 years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Over 5 years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash and cash equivalents(2)(3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.</TD>
    <TD align="right">30,222.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.</TD>
    <TD align="right">5,318.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.</TD>
    <TD align="right">2,824.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.</TD>
    <TD align="right">3,047.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.</TD>
    <TD align="right">41,412.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.</TD>
    <TD align="right">17,073.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.</TD>
    <TD align="right">2,370.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.</TD>
    <TD align="right">338.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.</TD>
    <TD align="right">61,194.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Term placements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">185.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">518.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,104.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,041.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,850.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,229.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">562.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,600.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,243.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investments held for trading(4)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,945.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,945.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,945.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investments available for sale (5)(6)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,163.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,144.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,130.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,483.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,921.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63,130.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69,165.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">103,240.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">273,457.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities purchased under agreement to resell</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,200.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,200.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,200.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Loans, net (7) (8)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51,222.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57,688.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,045.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46,344.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">186,301.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">159,487.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,151.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,333.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">395,274.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accrued interest receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,662.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,662.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,662.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,865.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,865.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,412.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,277.2</TD>
    <TD>&nbsp;</TD>
</TR>


<TR style="font-size: 6pt"><TD>&nbsp;</TD></TR>



<TR style="font-size: 1px">
    <TD style="border-top: 1px solid #000000"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total financial assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.</TD>
    <TD align="right">125,467.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.</TD>
    <TD align="right">66,669.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.</TD>
    <TD align="right">47,104.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.</TD>
    <TD align="right">70,916.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.</TD>
    <TD align="right">310,158.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.</TD>
    <TD align="right">245,332.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.</TD>
    <TD align="right">97,250.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.</TD>
    <TD align="right">129,513.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.</TD>
    <TD align="right">782,254.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD style="border-top: 1px solid #000000"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deposits (9)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,415.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41,390.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,784.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58,676.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">190,266.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">326,889.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,361.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,787.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">557,305.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Debt (10)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,074.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46,588.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75,813.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">525.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">345.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,020.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">92,705.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other Liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">85,465.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">85,465.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">85,465.9</TD>
    <TD>&nbsp;</TD>
</TR>


<TR style="font-size: 6pt"><TD>&nbsp;</TD></TR>


<TR style="font-size: 1px">
    <TD style="border-top: 1px solid #000000"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total financial liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.</TD>
    <TD align="right">166,955.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.</TD>
    <TD align="right">87,979.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.</TD>
    <TD align="right">37,934.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.</TD>
    <TD align="right">58,676.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.</TD>
    <TD align="right">351,545.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.</TD>
    <TD align="right">327,415.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.</TD>
    <TD align="right">37,707.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.</TD>
    <TD align="right">18,808.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.</TD>
    <TD align="right">735,476.6</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD style="border-top: 1px solid #000000"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>


<TR style="font-size: 6pt"><TD>&nbsp;</TD></TR>


<TR style="font-size: 1px">
    <TD style="border-top: 1px solid #000000"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Asset/Liability Gap</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.</TD>
    <TD align="right">(41,488.1</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.</TD>
    <TD align="right">(21,309.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.</TD>
    <TD align="right">9,170.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.</TD>
    <TD align="right">12,239.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.</TD>
    <TD align="right">(41,387.4</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.</TD>
    <TD align="right">(82,082.5</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.</TD>
    <TD align="right">59,542.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.</TD>
    <TD align="right">110,704.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.</TD>
    <TD align="right">46,778.1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD style="border-top: 1px solid #000000"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cumulative gap</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.</TD>
    <TD align="right">(41,488.1</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.</TD>
    <TD align="right">(62,797.4</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.</TD>
    <TD align="right">(53,627.1</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.</TD>
    <TD align="right">(41,387.4</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.</TD>
    <TD align="right">(41,387.4</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.</TD>
    <TD align="right">(123,469.8</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.</TD>
    <TD align="right">(63,926.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.</TD>
    <TD align="right">46,778.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.</TD>
    <TD align="right">46,778.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cumulative gap as a percentage of total
financial assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD nowrap align="right">(33.1</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD nowrap align="right">(94.2</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD nowrap align="right">(113.8</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD nowrap align="right">(58.4</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD nowrap align="right">(13.3</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD nowrap align="right">(50.3</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD nowrap align="right">(65.7</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">36.1</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.0</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Assets and liabilities are classified into the applicable maturity categories based
on residual maturity unless specifically mentioned.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Cash on hand is classified in the &#147;0-28&#148; days category.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Cash and cash equivalents include balances with the RBI to satisfy its cash reserve
ratio requirements. These balances are held in the form of overnight cash deposits but we
classify these balances to the applicable maturity categories on a basis proportionate to the
classification of related deposits.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Securities in the trading book are classified in the &#147;0-28&#148; days or &#147;29-90&#148; days
categories based on the expected time of realization for such investments.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>Securities held towards satisfying the statutory liquidity requirement (&#147;SLR&#148;)
prescribed by the RBI are classified based on the applicable maturity categories on a basis
proportionate to the classification of related deposits.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(6)</TD>
    <TD>&nbsp;</TD>
    <TD>Shares are classified in the &#147;greater than five years&#148; category and units of open
ended mutual fund are classified in the &#147;0-28&#148; days category.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(7)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes net non-performing loans which are classified in the &#147;greater than five
years&#148; category.</TD>
</TR>

</TABLE>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->53<!-- /Folio -->




<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(8)</TD>
    <TD>&nbsp;</TD>
    <TD>Ambiguous maturity overdrafts are classified under various maturity categories based
on historical behavioral analyses that we have performed to determine the appropriate maturity
categorization of such advances.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(9)</TD>
    <TD>&nbsp;</TD>
    <TD>Non-maturity deposits are classified under various maturity categories based on the
historical behavioral analysis that we have performed to determine the appropriate maturity
categorization of such deposits.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(10)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes short-term borrowings and long-term debt.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(11)</TD>
    <TD>&nbsp;</TD>
    <TD>For further information on how we manage our asset liability risk, see
&#147;Business &#151; Market Risk&#148;.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Loan Portfolio and Credit Substitutes</I></B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of March&nbsp;31, 2006, our gross loan portfolio was Rs. 400.9&nbsp;billion and represented approximately
2.5&nbsp;million contracts outstanding. As of that date, our gross credit substitutes outstanding were
Rs. 9.8&nbsp;billion and represented approximately 29 credit substitutes outstanding. Almost all of our
gross loans and credit substitutes are to borrowers in India and over 90% are denominated in
rupees. For a description of our retail and wholesale loan products, see &#147;Business &#151; Retail Banking
&#151; Retail Loan Products&#148; and &#147;Business &#151; Wholesale Banking &#151; Commercial Banking Products &#151;
Commercial Loan Products and Credit Substitutes&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth, for the periods indicated, our gross loan portfolio classified by
product group:
</DIV>

<DIV align="center">
<TABLE style="font-size: 9pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19" style="border-bottom: 1px solid #000000"><B>At March 31,</B></TD>
</TR>
<TR style="font-size: 7pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2002</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2003</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 7pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19"><B>(in millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Retail loans </DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">14,301.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">34,414.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">73,251.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">112,666.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">229,301.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wholesale loans </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58,833.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">85,752.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">107,923.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">149,259.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">171,626.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="19" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross loans </DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">73,134.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">120,166.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">181,175.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">261,925.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">400,927.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="19" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Credit substitutes (at fair value)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,329.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,255.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,041.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,880.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,751.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="19" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross loans plus credit substitutes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">108,464.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">150,422.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">198,216.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">275,806.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">410,678.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="19" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Maturity and Interest Rate Sensitivity of Loans and Credit Substitutes</I></B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following tables set forth, for the periods indicated, the maturity and interest rate
sensitivity of our loans and credit substitutes (at fair value):
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>At March 31, 2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Due in one</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Due in one</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Due after</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>year or less</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>to five years</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>five years</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11"><B>(in millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Retail loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">88,119.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">134,689.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">6,492.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wholesale loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">98,181.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,244.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,200.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">186,301.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">186,933.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">27,692.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Credit Substitutes </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,971.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,225.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,554.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross Loans plus credit substitutes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">188,272.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">191,158.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">31,247.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>At March 31, 2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Due in one</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Due in one</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Due after</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>year or less</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>to five years</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>five years</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11"><B>(in millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest rate classification of loans by maturity:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Variable rates</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">1,556.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">7,957.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">20,480.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Fixed rates </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">184,744.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">178,975.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,212.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">186,301.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">186,933.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">27,692.8</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->54<!-- /Folio -->
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="62%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;&nbsp;&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>At March 31, 2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Due in one</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Due in one</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Due after</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>year or less</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>to five years</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>five years</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11"><B>(in millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest rate classification of credit substitutes by maturity:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Variable rates</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Fixed rates </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">1,971.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">4,225.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">3,554.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-bottom:1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross credit substitutes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">1,971.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">4,225.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">3,554.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-bottom:1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest rate classification of loans and credit substitutes
by maturity:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Variable rates</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">1,556.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">7,957.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">20,480.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Fixed rates </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">186,716.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">183,201.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">10,767.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-bottom:1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross loans and credit substitutes </DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">188,272.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">191,158.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">31,247.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-bottom:1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Concentration of Loans and Credit Substitutes</I></B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the guidelines of the RBI, our exposure to individual borrowers is limited to 15% of
our capital funds (as defined by RBI and calculated under Indian GAAP), and to 40% of our capital
funds to a group of companies under the same management. In the case of infrastructure projects,
such as power, telecommunications, road and port projects, an additional exposure of up to 5% of
capital funds is allowed in respect of individual borrowers and up to10 % in respect of group
borrowers. We may, in exceptional circumstances, with the approval of our board of directors,
consider enhancement of exposure to a borrower by a further 5% of capital funds. See &#147;Supervision
and Regulation &#151; Credit Exposure Limits&#148;. During the fiscal 2006, the Bank&#146;s credit exposures to
single borrowers and group borrowers were within the limits prescribed by Reserve Bank of India
except in case of National Bank for Agricultural and Rural Development (&#147;NABARD&#148;), where the single
borrower limits were exceeded. The Board of Directors of the Bank approved the excess over the
prudential limits subject to a ceiling of 20% of capital funds. As at March&nbsp;31, 2006, the book
value of outstanding exposure to NABARD was within the Board approved limit of 20% of capital funds
as on that date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth, for the periods indicated, our gross loans and fair value of credit
substitutes outstanding by the borrower&#146;s industry or economic activity and as a percentage of our
gross loans and fair value of credit substitutes (where such percentage exceeds 2.0% of the total).
We do not consider reil loans a specific industry for this purpose. However, retail business
banking loans are classified in the appropriate categories below and loans to commercial vehicle
operators are included in land transport below.
</DIV>

<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="39" style="border-bottom: 1px solid #000000"><B>At March 31,</B></TD>
</TR>
<TR style="font-size: 7pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

<TD nowrap align="center" colspan="1" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="1" style="border-bottom: 1px solid #000000"><B>2002</B></TD>

<TD nowrap align="center" colspan="5" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="1" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="1" style="border-bottom: 1px solid #000000"><B>2003</B></TD>

<TD nowrap align="center" colspan="5" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="1" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="1" style="border-bottom: 1px solid #000000"><B>2004</B></TD>

<TD nowrap align="center" colspan="5" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="1" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="1" style="border-bottom: 1px solid #000000"><B>2005</B></TD>

<TD nowrap align="center" colspan="5" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>

    <TD nowrap align="center" colspan="1" style="border-bottom: 1px solid #000000">&nbsp;</TD>
<TD nowrap align="center" colspan="1" style="border-bottom: 1px solid #000000"><B>2006</B></TD>

<TD nowrap align="center" colspan="5" style="border-bottom: 1px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="39"><B>(in millions, except percentages)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Automotive
manufacturers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">9,999.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">9.2</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">13,393.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">8.9</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">19,370.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">9.8</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">26,100.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">9.5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">41,008.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">10.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Land transport</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,298.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,202.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,396.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,860.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36,841.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Retail Traders</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">316.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,734.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,379.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,857.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,396.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Activities allied to agriculture</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">115.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">216.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,778.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,501.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,559.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Heavy Engineering</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,903.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,846.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,631.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,862.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,963.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">NBFC / Investment Companies</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,649.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,227.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,359.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,051.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,777.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Telecommunications</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,490.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">921.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,054.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,586.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,888.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Others (including unclassified retail) </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">80,692.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">74.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">110,880.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">73.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">134,248.20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">67.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">179,986.60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">65.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">276,243.40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">67.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="39" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">108,464.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">150,422.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">198,216.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">275,806.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">410,678.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="39" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of March&nbsp;31, 2006, our ten largest exposures totaled approximately Rs. 53.4&nbsp;billion and
represented approximately 77.7% of our capital funds as per Indian GAAP. The largest group of
companies under the same management control accounted for approximately 21% of our capital funds as
on March&nbsp;31, 2006 as per Indian GAAP.
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->55<!-- /Folio -->

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Directed Lending</I></B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The RBI has established guidelines requiring Indian banks to lend 40% of their net bank credit to
certain sectors called &#147;priority sectors&#148;. Priority sectors include small-scale industries,
agricultural and agriculture based sectors, food, housing, small business enterprises and certain
other priority sectors deemed &#147;weaker&#148; by the RBI. See &#147;Supervision and Regulation&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are required to comply with the priority sector lending requirements as of the last
reporting Friday of each fiscal year, a date specified by the RBI for reporting. Apart from our
loans to the sectors outlined above, we may invest in bonds of specified institutions and
mortgage-backed securitized paper to meet our mandated lending requirements. Any shortfall in the
amount required to be lent to the priority sectors may be required to be deposited with Indian
development banks like the National Bank for Agriculture and Rural Development and the Small
Industries Development Bank of India. These deposits have a maturity of up to seven years and carry
interest rates lower than market rates. With a view to rationalizing the Banks&#146; investments under
priority sector lending and encouraging banks to increasingly lend directly to the farmers/other
priority sector borrowers, the RBI has stipulated that the investments by banks in specified
institutions shall not be eligible for classification under priority sector lending. However this
would be implemented in a phased manner effective April&nbsp;1, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth, for the periods indicated, our directed lending broken down by
sector:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19" style="border-bottom: 1px solid #000000"><B>At March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2002</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2003</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19"><B>(in millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Directed lending:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Agriculture </DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">1,493.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">8,858.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">13,220.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">20,641.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">42,747.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Small scale industries</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,730.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,949.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,370.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,013.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,968.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,509.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,372.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,633.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,519.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59,468.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="19" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total directed lending</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">7,733.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">14,181.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">25,224.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">57,174.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">109,184.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="19" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Non-Performing Loans</I></B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following discussion of non-performing loans is based on U.S. GAAP. For classification of
non-performing loans under Indian regulatory requirements, see &#147;Supervision and Regulation&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Indian economy has expanded steadily during the past three years with GDP growth of 8.1% in
fiscal 2004, 6.9% in fiscal 2005 and 8.4% in fiscal 2006. Since 1991, the government of India has
pursued a policy of gradual liberalization and deregulation. Indian corporations have had to
respond to these pressures through a process of restructuring and repositioning. This restructuring
process is taking place in several industries, primarily in sectors where many small, unprofitable
manufacturing facilities have existed, such as the iron and steel and textiles industries. This led
to a decline in the operating performance of some Indian corporations and the impairment of related
loan assets in the financial system, including some of our assets. The decline in certain sectors
of the Indian economy has been offset by growth in segments such as financial services and
information technology.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of March&nbsp;31, 2006, our gross non-performing loans as a percentage of gross loan assets was 1.2%
and our gross non-performing loans net of specific valuation allowances as a percentage of net loan
assets was 0.4%. We have made total specific valuation allowances for 66.99% of gross
non-performing loans. These allowances are based on the expected realization of cash flows from
these assets and from the underlying collateral. All of our non-performing loans are
rupee-denominated. Non-performing loans to the directed lending
sector were 0.3% of gross loans.
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->56<!-- /Folio -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth, for the periods indicated, information about our gross
non-performing loan portfolio:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19" style="border-bottom: 1px solid #000000"><B>As of March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2002</B></TD>
    <TD style="border-bottom: 0px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2003</B></TD>
    <TD style="border-bottom: 0px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2004</B></TD>
    <TD style="border-bottom: 0px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2005</B></TD>
    <TD style="border-bottom: 0px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2006</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="19" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Non-performing loans:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-0px">Retail loans </DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">140.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">74.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">403.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">1,663.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">3,193.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-0px">Wholesale loans </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,819.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,292.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,589.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,420.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,590.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="19" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Gross non-performing loans </DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">1,959.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">2,367.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">2,992.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">4,084.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">4,783.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="19" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Specific valuation allowances </DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">1,423.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">1,684.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">2,722.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">3,492.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">3,204.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Unallocated valuation allowances</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">182.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">182.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">771.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,945.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,448.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Non-performing loans net of specific valuation allowance </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">536.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">683.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">269.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">591.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,578.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Gross loan assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">73,134.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">120,166.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">181,175.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">261,925.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">400,927.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Net loan assets </DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">71,528.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">118,229.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">177,681.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">256,486.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">395,274.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Gross non-performing loans as a percentage of gross loans </DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.68</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.97</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.65</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.56</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.19</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Non-performing loans net of specific valuation allowance as
a percentage of net loan assets </DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.74</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.58</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.15</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.23</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.40</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Specific valuation allowance as a percentage of gross
non-performing loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">72.63</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">71.14</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">90.98</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">85.52</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">66.99</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Total valuation allowance as a percentage of gross
non-performing loans </DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">81.94</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">78.84</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">116.76</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">133.16</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">118.18</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Recognition of Non-Performing Loans</I></B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We classify our loan portfolio into loans that are performing and loans that are non-performing or
impaired.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We consider a loan to be performing when no principal or interest payment is one quarter or more
past due and where we expect to recover all amounts due to us. Prior to April&nbsp;1, 2003, we
considered a loan to be performing when no principal or interest was two or more quarters past due
and where we expected to recover all amounts due to us. We have not restated figures from periods
prior to April&nbsp;1, 2003 to reflect the change.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have analyzed our gross loans into their performance status as follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18" style="border-bottom: 1px solid #000000"><B>At March 31,</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2002</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2003</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18"><B>(in millions)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Performing </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">71,174.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">117,799.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">178,182.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">257,841.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">396,144.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-performing or impaired:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">On accrual status </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">On non-accrual status</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,898.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,315.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,992.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,084.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,783.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="19" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total non-performing or impaired</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,959.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,367.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,992.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,084.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,783.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="19" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">73,134.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">120,166.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">181,175.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">261,925.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">400,927.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="19" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-performing or impaired loans consist of loans that are on accrual status as well as loans
that have been placed on non-accrual status.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We place loans on non-accrual status when interest or principal payments are one quarter past due,
at which time no further interest is accrued and overdue interest not collected is reversed. We
make specific allowances for all loans on non-accrual status based on the loss we expect to incur
for each such loan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the case of wholesale loans, we also identify loans as non-performing or impaired even when
principal or interest payments are less than one quarter past due but where we believe recovery of
all principal and interest amounts is doubtful. We make specific and unallocated allowances for
these loans based on our estimate of losses inherent in the loan portfolio.
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->57<!-- /Folio -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our methodology for determining specific and unallocated allowances is discussed separately below
for each category of loans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Retail Loans</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank establishes a specific allowance on the retail loan portfolio based factors such as the
nature of the product, delinquency levels or the number of days the loan is past due, the nature of
the security available and loan to value ratios. The loans are charged off against allowances at
defined delinquency levels.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank also makes unallocated allowances for its retail loans by product type. The Bank&#146;s retail
loan portfolio comprises groups of large numbers of small value homogeneous loans. The Bank
establishes an unallocated allowance for loans in each product group based on its estimate of the
expected amount of losses inherent in such product. In making such estimates, among other factors
considered, the Bank stratifies such loans based on the number of days past due and takes into
account historical losses for such product, the nature of security available and loan to value
ratios.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Wholesale Loans</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We make specific allowances for credit losses for all wholesale loans on non-accrual status. We
also make specific allowances for wholesale loans that are on accrual status when we consider these
loans to be impaired despite being less than one quarter past due.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We identify wholesale loans on accrual status as being impaired based on our assessment of each
wholesale banking customer, taking into account quantitative and qualitative factors such as
payment status, adverse situations that may affect the borrower&#146;s ability to repay, the value of
any collateral held, our view of the industry and general economic conditions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment is measured for each non-performing wholesale banking customer for the aggregate of all
wholesale loans made to that customer. We establish a specific allowance for the difference between
the carrying value of the loan and the present value of expected future cash flows including the
net realizable value of any collateral, discounted at the loan&#146;s effective interest rate. We do not
establish a specific allowance for loans where the fair value of any collateral we hold exceeds the
outstanding loan balance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wholesale loans that experience insignificant payment delays and payment shortfalls are generally
not classified as impaired but are placed on a surveillance watch list and closely monitored for
deterioration. We determine the significance of payment delays and payment shortfalls on a
case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the
borrower, including the length of the delay, the reasons for the delay, the borrower&#146;s prior
payment record and the amount of the shortfall in relation to the principal and interest owed.
Beginning April&nbsp;1, 2003, we also established an unallocated allowance for performing loans, based
on the overall portfolio quality, asset growth, economic conditions and other risk factors
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Analysis of Non-Performing Loans by Industry Sector</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth, for the periods indicated, our non-performing loans by borrowers&#146;
industry or economic activity and as a percentage of our loans in the respective industry or
economic activity sector. These figures do not include credit substitutes, which we include for
purposes of calculating our industry concentration for RBI reporting. See &#147;Risk Factors &#151; We have
high concentrations of customer exposures to certain customers and sectors and if any of
these exposures were to become non-performing, the quality of our portfolio could be adversely
affected&#148;.
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->58<!-- /Folio -->
<DIV align="center">
<TABLE style="font-size: 6pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 5pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="58" style="border-bottom: 1px solid #000000">As of March 31</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 5pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000">2002</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000">2003</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000">2004</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000">2005</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000">2006</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 5pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Non</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Non</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Non</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Non</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Non</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 5pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Gross</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">performing</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">% of loans</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Gross</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">performing</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">% of loans</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Gross</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">performing</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">% of loans</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Gross</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">performing</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">% of loans</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Gross</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">performing</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">% of loans</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 5pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Loans</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">loans</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">in industry</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Loans</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">loans</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">in industry</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Loans</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">loans</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">in industry</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Loans</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">loans</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">in industry</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Loans</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">loans</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">in industry</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 5pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="61">(Rupees in millions, except percentages)</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Consumer electronics</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">960.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">23.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">2.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">1,754.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">207.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">11.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">2,261.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">639.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">28.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">3,452.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">679.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">19.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">2,199.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">129.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">5.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Diamond, gems and jewelry exports</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,029.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">131.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,343.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">130.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,473.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">129.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,401.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">129.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,559.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">129.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Textiles</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">457.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">396.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">86.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">698.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">372.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,327.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">356.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,483.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">303.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,291.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">313.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Automobiles</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,856.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,096.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">642.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,541.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">653.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,667.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">913.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40,970.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">954.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
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</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Iron and steel </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">937.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">440.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,141.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">437.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,616.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">440.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,840.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">201.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,641.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.1</TD>
    <TD>&nbsp;</TD>
</TR>
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    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
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</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Electricity generation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">486.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,577.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">759.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,620.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,599.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
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</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Retail advances not otherwise
classified </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,273.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">134.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,848.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">74.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63,207.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">382.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">103,681.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,134.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">175,780.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,534.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Engineering</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,640.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">147.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,581.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,050.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,862.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10659.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other wholesale trade</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,174.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,882.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,526.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,465.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,155.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Land transport </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,396.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,860.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">269.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36,841.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">347.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Drugs and pharmaceuticals</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,442.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">133.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,039.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,917.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,834.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Fertilizers </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,706.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">72.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,760.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,974.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,882.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">122.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,450.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Miscellaneous industries </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">675.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,221.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,824.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Food processing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,344.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Traders </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,484.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">200.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,738.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,357.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Electrical machinery </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,853.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">66.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,430.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">76.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,376.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">76.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,428.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">66.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.8</TD>
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    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
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    <TD align="right">&#151;</TD>
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</TR>
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    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
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</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Construction</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">67.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">207.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">79.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">385.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
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    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
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    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
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    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
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</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Glass and glass products </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">135.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">419.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">814.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
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    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
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</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Paper and paper products </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">806.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,701.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
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</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Activities allied to dairying</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,091.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,144.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,946.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
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    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
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</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Manufacture of metal products </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">897.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
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    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
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</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Share brokers </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">639.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">823.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
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    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investment and finance and leasing </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">79.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other chemicals</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">455.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">469.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Activities allied to agriculture </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">216.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Plastic and plastic products</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Distilleries </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">147.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">147.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">191.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">142.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">74.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">1,959.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">2,367.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">2,992.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">4,084.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">4,783.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Specific allowance for credit losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">1,423.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">1,684.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">2,722.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">3,492.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">3,204.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-performing loans, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">536.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">683.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">269.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">591.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">1,578.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of March&nbsp;31, 2006, our gross non-performing loans as a percentage of gross loans in the
respective industries was the highest in the consumer electronics, diamonds, gems and jewelry
exports and textile industries.
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->59<!-- /Folio -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Consumer electronics</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The consumer electronics industry has been exposed to severe competition during the last few years
due to an increase in foreign competition. Competition intensified the pressure on profit margins
and inflated selling and distribution costs. This resulted in marginalization of the weaker players
and consolidation of the stronger ones.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Diamonds, Gems and Jewelry exports</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Indian diamond industry continues to maintain its world leadership in export of cut and
polished diamonds. Slow demand in certain western markets has been offset by increased off-take in
Asian markets including India.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our non-performing loan in this industry was caused mainly by borrower specific internal
organization problems.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Textiles</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The textile industry had a good year in fiscal 2006 due to soft cotton prices and the lifting of
restrictions on export of cotton garments. The Indian government has also given certain fiscal
incentives in recent years to assist the industry.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our non-performing loans in this sector primarily relate to a period when the industry was going
through a cyclical downturn.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Top Ten Non-Performing Loans</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of March&nbsp;31, 2006, we had 27 wholesale non-performing loans outstanding, of which the top ten
represented 28.4% of our gross non-performing loans and 0.3% of our gross loan portfolio.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth information regarding our ten largest non-performing loans. The
table also sets forth the value (as set forth on the borrower&#146;s books) of collateral securing the
loan. However, the net realizable value of such collateral may be substantially less, if anything.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="24%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="18%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="13" style="border-bottom: 1px solid #000000"><B>At March 31, 2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Principal</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>outstanding</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>net</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Currently</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Type of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>of allowance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>servicing</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>banking</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>principal</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>for credit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Collateral-</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>all interest</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Industry</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>arrangement</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>outstanding</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>losses</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>our share</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>payments</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="13"><B>(in millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Borrower 1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Automobiles
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Sole
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">Rs.</TD>
    <TD align="right" valign="top">642.9</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">Rs.&#151;
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">Rs.&#151;
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">No</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Borrower 2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Gems and Jewellery
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consortium
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">129.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&#151;
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&#151;
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">No</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Borrower 3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Textiles
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consortium
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">120.8</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&#151;
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&#151;
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">No</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Borrower 4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Iron and Steel
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consortium
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">108.9</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&#151;
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&#151;
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">No</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Borrower 5
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Textiles
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consortium
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">74.2</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&#151;
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&#151;
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">No</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Borrower 6
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Textiles
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Multiple
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">73.0</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&#151;
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&#151;
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">No</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Borrower 7
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consumer Electronics
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consortium
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">72.5</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&#151;
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&#151;
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">No</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Borrower 8
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Media- Manufacturing
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Sole
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">49.5</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&#151;
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&#151;
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">No</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Borrower 9
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Engineering
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Multiple
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">45.2</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&#151;
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&#151;
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">No</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Borrower 10
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Engineering
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consortium
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">40.3</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&#151;
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&#151;
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">No</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="9" nowrap valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">Rs.</TD>
    <TD align="right" valign="top">1,356.4</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">Rs.&#151;
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">Rs.&#151;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="9" nowrap valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->60<!-- /Folio -->

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Interest Foregone</I></B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest foregone is the interest due on non-performing loans that has not been accrued in our
books of accounts. The following table sets forth the outstanding amount of interest foregone on
existing non-performing loans as of the respective dates.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Interest foregone</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>(in millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">March&nbsp;31, 2004</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.</TD>
    <TD align="right">274.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">March&nbsp;31, 2005</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">216.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">March&nbsp;31, 2006</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">208.5</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Restructuring of Non-Performing Loans</I></B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our non-performing loans are restructured on a case-by-case basis after our management has
determined that restructuring is the best means of maximizing realization of the loan. These loans
continue to be on a non-accrual basis and are reclassified as performing loans only after sustained
performance under the loan&#146;s renegotiated terms for a period of at least one year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to recently enacted regulations creating a system of &#147;Corporate Debt Restructuring,&#148; we
may also be involuntarily required to restructure loans if decided by lenders holding 75% of the
debt in a consortium in which we participate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth, as of the dates indicated, our non-performing loans that have been
restructured through rescheduling of principal repayments and deferral or waiver of interest:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19" style="border-bottom: 1px solid #000000"><B>At March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2002</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2003</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19"><B>(in millions, except percentages)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross restructured loans </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.</TD>
    <TD align="right">172.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.</TD>
    <TD align="right">2.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.</TD>
    <TD align="right">100.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.</TD>
    <TD align="right">167.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Allowance for credit losses </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">119.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">167.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="19" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net restructured loans </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.</TD>
    <TD align="right">52.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.</TD>
    <TD align="right">64.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="19" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross restructured loans as a
percentage of gross
non-performing loans </DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">8.8</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.1</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3.5</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net restructured loans as a
percentage of net
non-performing loans </DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.7</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">10.9</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If there is a failure to meet payment or other terms of a restructured loan, it may be
considered a failed restructuring, in which case it is no longer classified as a restructured loan.
Our restructured loans declined from March&nbsp;31, 2002 until March&nbsp;31, 2004 principally due to failed
restructurings.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Non-Performing Loan Strategy</I></B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our non-performing loan strategy is focused on early problem recognition and active remedial
management efforts. Because we are involved primarily in working capital finance with respect to
wholesale loans, we track our borrowers&#146; performance and liquidity on an ongoing basis. This
enables us to define remedial strategies proactively and manage our exposures to industries or
customers that we believe are displaying deteriorating credit trends. Relationship managers drive
the recovery effort together with strong support from the credit group in the corporate office in
Mumbai. Recovery is pursued vigorously through the legal process, enforcement of collateral,
negotiated one-time settlements and other similar strategies. The particular strategy pursued
depends upon the level of cooperation of the borrower and on our assessment of the borrower&#146;s
management integrity and long-term viability.
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->61<!-- /Folio -->

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Allowance for Credit Losses on Loans</I></B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth, for the periods indicated, movements in our allowance for credit
losses:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19" style="border-bottom: 1px solid #000000"><B>For the years ended March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2002</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2003</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19"><B>(in millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Specific allowance for credit losses at the beginning of the period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">1,010.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">1,423.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">1,684.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">2,722.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">3,492.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Additions to allowance for credit losses for the period :</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Retail</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">366.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">156.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">775.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,433.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,762.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Wholesale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">253.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">786.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,278.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">221.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less allowances no longer required on account of recoveries</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(207.6</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(201.6</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(300.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(781.7</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(275.1</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net expense for additions to specific allowance for credit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">412.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">741.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,754.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,874.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,529.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Allowance no longer required on account of write offs </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(480.7</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(715.8</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,104.0</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(4,817.2</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Specific allowance for credit losses at the end of period </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">1,423.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">1,684.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">2,722.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">3,492.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">3,204.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="19" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unallocated allowance for credit losses at the beginning of the period
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">143.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">182.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">182.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">771.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">1,945.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Additions during the period </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">589.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,174.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">503.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="19" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unallocated allowance for credit losses at the end of the period </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">182.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">182.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">771.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">1,945.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">2,448.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="19" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total allowance for credit losses at the beginning of the period </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">1,154.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">1,605.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">1,866.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">3,494.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">5,438.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Allowance no longer required on account of write-offs </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(480.7</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(715.8</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,104.0</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(4,817.2</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net addition to total allowance for the period charged to expense </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">451.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">741.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,343.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,048.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,032.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="19" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total allowance for credit losses at the end of the period </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">1,605.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">1,866.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">3,494.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">5,438.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">5,653.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="19" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth, for the periods indicated, the allocation of the total
allowance for credit losses:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19" style="border-bottom: 1px solid #000000"><B>As of March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2002</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2004</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2006</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="19" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Wholesale</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Allocated</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD colspan="2" align="center">1,289.7</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">1,609.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">2,379.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">2,285.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">1,543.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Unallocated </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">269.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">400.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">703.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="19" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Subtotal</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,289.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,609.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,649.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,686.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,246.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="19" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Retail</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Allocated</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">133.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">74.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">342.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,207.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,661.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Unallocated </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">182.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">182.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">501.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,544.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,745.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="19" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Subtotal</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">316.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">257.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">844.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,751.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,407.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="19" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Allowance for credit losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">1,605.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">1,866.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">3,494.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">5,438.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">5,653.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="19" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->62<!-- /Folio -->
<DIV align="left">
<A name="111"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL<BR>
CONDITION AND RESULTS OF OPERATIONS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>You should read the following discussion and analysis of our financial condition and
results of operations together with our audited financial statements included in this report. The
following discussion is based on our audited financial statements, which have been prepared in
accordance with U.S. GAAP, and on information publicly available from the RBI and other sources.</I>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Introduction</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Overview</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are a leading private sector bank and financial services company in India. Our principal
business activities are retail banking, wholesale banking and treasury operations. Our retail
banking division provides a variety of deposit products as well as loans, credit cards, debit
cards, third party mutual funds and insurance, investment advisory services and depositary
services. Through our wholesale banking operations we provide loans, deposit products, documentary
credits, guarantees, bullion trading and foreign exchange and derivative products. We also provide
cash management services, clearing and settlement services for stock exchanges, tax and other
collections for the government, custody services for mutual funds and correspondent banking
services. Our Treasury Group manages our balance sheet and our foreign exchange and derivative
products.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Since fiscal 2001,
we have experienced significant growth in our customer and geographical base,
expanding from 0.9&nbsp;million customers in 53 cities as of
March&nbsp;31, 2001 to 9.6&nbsp;million customers in
228 cities as of March&nbsp;31, 2006. In addition, we have changed
our focus and business mix so that
retail banking rather than wholesale banking is our more significant
area, as net revenue from retail products has grown
 from 45.3% of total revenue for the fiscal year ended March&nbsp;31,
2002, to 75.1% of total revenue for the fiscal year ended
March&nbsp;31, 2006.
The higher proportion
of retail loans in our portfolio allowed us to maintain our net
interest margins in the 2001-2004
period when market yields in the overall economy were falling. However, with this increase in
retail loans, we have increased our unallocated and specific loan loss provisions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our revenue consists of interest and dividend revenue as well as non-interest revenue. Our interest
and dividend revenue is primarily generated by interest on loans, dividends from securities and
other activities. We offer a wide range of loans to retail customers and offer primarily working
capital loans to corporate customers. The primary components of our securities portfolio are
statutory liquidity ratio investments, credit substitutes and other investments. Statutory
liquidity ratio investments principally consist of government of India treasury securities. Credit
substitutes, principally consisting of our investments in commercial paper, debentures and
preference shares issued by corporations, are part of the financing products we provide to our
customers. Other investments include investment grade bonds issued by public sector undertakings
and public financial institutions principally to meet RBI directed lending requirements, asset
backed securities, mortgage-backed securities as well as equity securities and mutual funds.
Interest revenue from other activities consists primarily of interest from inter-bank loans and
interest paid by the RBI on cash deposits to meet our statutory cash reserve ratio requirements.
Effective June, 2006 the RBI has discontinued the practice of paying interest on cash reserve
ratio.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Two important measures of our results of operations are net interest revenue, which is equal to our
interest and dividend revenue net of interest expense, and net interest revenue after allowance for
credit losses. Interest expense includes interest on deposits as well as on borrowings. Our
interest revenue and expense are affected by fluctuations in interest rates as well as volume of
activity. Our interest expense is also
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">affected by the extent to which we fund our activities with
low-interest or non-interest bearing deposits (including the float on transactional services), and
the extent to which we rely on borrowings. Our allowance for credit losses includes our loan loss
provision. Impairments of credit substitutes are not included in our loan-loss provision, but are
included as realized losses on securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We also use net interest margin and spread to measure our results. Net interest margin represents
the ratio of net interest revenue to average interest-earning assets. Spread represents the
difference between yield on average interest-earning assets and cost of average interest-bearing
liabilities including current accounts which are non-interest bearing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our non-interest revenue includes fee and commission income, realized gains and losses on sales of
securities and spread from foreign exchange and derivative transactions. Our principal sources of
fee and commission revenue are retail banking services, cash management services, documentary
credits and bank guarantees, distribution of third party mutual funds and insurance products and
capital market services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our non-interest expense includes expenses for salaries and staff benefits, premises and equipment,
depreciation and amortization, and administrative and other expenses. The costs of outsourcing back
office and other functions are included in administrative and other expenses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our financial condition and results of operations are affected by general economic conditions
prevailing in India. The Indian economy has grown steadily over the past three years. GDP growth
was, 8.1% in fiscal 2004, 6.9% in fiscal 2005 and 8.4% in fiscal 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, interest rates have generally been rising during the last two years in line with
global trends. During fiscal 2006 RBI increased the benchmark reverse repo rates upwards by 25
basis points on three occasions, in April&nbsp;2005, October&nbsp;2005 and January&nbsp;2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Critical Accounting Policies</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have set forth below some of our critical accounting policies under U.S. GAAP. Readers should
keep in mind that we prepare our general purpose financial statements in accordance with Indian
GAAP and also report to the RBI and the Indian stock exchanges in accordance with Indian GAAP. In
certain circumstances, as discussed under &#147;Financial Condition &#151; Transfers within Investment
Portfolio&#148; below, we may take action that is required or permitted by Indian banking regulations
which may have different consequences under Indian and U.S. GAAP.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Allowance for loan losses</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our allowance for credit losses is based on our best estimate of losses inherent in our loan
portfolio and consists of our allowances for retail loans and wholesale loans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Retail Loans</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We establish
specific and unallocated allowances for our retail loans.
The Bank establishes a specific allowance on the retail loan portfolio based
on factors such as the nature of the product, delinquency levels or the number
of days the loan is past due, the nature of the security available and loan
to value ratios. The loans are charged off against allowances at defined delinquency levels.
 We also establish unallocated allowances for each of our retail loan products. See &#147;Selected
Statistical Information &#151; Investment Portfolio &#151; Retail Loans&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Wholesale</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We establish specific allowances for our wholesale loans.
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We evaluate our wholesale loan portfolio on a periodic basis and grade our accounts considering
both qualitative and quantitative criteria. Although we believe our grading and surveillance
process is comprehensive, it is inherently subjective as it is based on information we have
available and requires us to
exercise judgment in determining a borrower&#146;s grading and therefore may not be correct in all
cases. Our grading is subject to revision as more information becomes available.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We consider wholesale loans to be impaired when it is probable that we will be unable to collect
scheduled payments of principal or interest when due. In arriving at our estimate, we consider the
borrower&#146;s payment status, financial condition and the value of collateral we hold.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We establish specific allowances for our wholesale loans for each non-performing wholesale loan
customer in the aggregate for all funded exposures. This allowance is based on either the present
value of expected future cash flows discounted at the loan&#146;s effective interest rate or the net
realizable value of any collateral we hold. Our estimate of future cash flows from a borrower is
inherently subjective as it is based on our expectations of the probability and timing of default.
Our estimate of the net realizable value of any collateral we hold is also subjective, as the
collateral we hold is generally working capital such as book debt or inventory.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With effect from April&nbsp;1, 2003, in light of the significant growth in the size and diversity of our
wholesale loan portfolio, we established an unallocated allowance for wholesale loans based on an
internal credit slippage matrix, which measures our historic losses for our standard loan
portfolio.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For more information on the methodologies we have used to establish our allowance for credit
losses, see &#147;Selected Statistical Information &#151; Non-Performing Loans &#151; Recognition of
Non-Performing Loans&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Interest Accrual and Revenue Recognition</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income from loans is recognized on an accrual basis when earned except with respect to
loans placed on non-accrual status, for which interest income is recognized when received.
Beginning in fiscal 2004, loans have been placed on non-accrual status when they are past due for
more than one quarter. Prior to that time, loans were generally placed on non-accrual status when
they were past due for more than two quarters. We generally do not charge up-front loan origination
fees. Nominal application fees are charged, which offset the related costs incurred.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fees and commissions from guarantees issued are amortized over the contractual period of the
commitment, provided the amounts are collectible.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends from investments are recognized when declared.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized gains and losses on sales of securities are recorded on the trade date and are determined
using the weighted average cost method.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other fees and income are recognized when earned, which is when the service that results in
the income has been provided.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Valuation of Investments</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments consist of securities purchased as part of our treasury operations, such as government
securities and other debt and equity securities, investments purchased as part of our wholesale
banking operations, such as credit substitute securities issued by our wholesale banking customers,
which include commercial paper, short term debentures and preference shares and asset and mortgage
backed securities.
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities that are held principally for resale in the near term are classified as held for trading
(&#147;HFT&#148;), with changes in fair value recorded in earnings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt securities that management has the positive intent and ability to hold to maturity are
classified as held to maturity (&#147;HTM&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities with fair values that are not classified as held to maturity or held for trading are
classified as available for sale (&#147;AFS&#148;). Unrealized gains and losses on such securities, net of
applicable taxes, are reported in accumulated other comprehensive income (loss), a separate
component of shareholders&#146; equity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We generally report our investments in debt and equity securities at fair value, except for debt
securities classified as HTM securities, which are reported at amortized cost. Fair values are
based on market quotations where a market quotation is available and otherwise based on present
values at current interest rates for such investments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For HTM and AFS securities, other than temporary declines in fair values that are below cost will
be reflected in earnings as realized losses. We identify other than temporary declines based on an
evaluation of all significant factors, including the length of time and extent to which fair value
is less than cost and the financial condition and economic prospects of the issuer. We do not
recognize an impairment for debt securities if the cause of the decline is related solely to
interest rate increases and where we have the ability and intent to hold the security until the
fair value is recovered. Estimates of any other than temporary declines in the fair values of
credit substitute securities are measured on a case by case basis together with loans under the
overall exposure to those customers and recognized as realized losses. As our exposures in respect
of such securities are similar to our exposures on the borrower&#146;s loan portfolio, additional
disclosures have been provided on impairment status in Note 8 and on concentrations of credit risk
in Note 12 of the Financial Statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>New Accounting Pronouncements</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Other-Than-Temporary Impairment and Its Application to Certain Investments</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In November&nbsp;2003, the Financial Accounting Standards Board (&#147;FASB&#148;) ratified a consensus on the
disclosure provisions of Emerging Issues Task Force (&#147;EITF&#148;) Issue 03-1, &#147;The Meaning of
Other-Than-Temporary Impairment and Its Application to Certain Investments.&#148; In March&nbsp;2004, the
FASB reached a consensus regarding the application of a three-step impairment model to determine
whether investments accounted for in accordance with SFAS No.&nbsp;115, &#147;Accounting for Certain
Investments in Debt and Equity Securities,&#148; and other cost method investments are
other-than-temporarily impaired. However, with the issuance of FASB Staff Position EITF 03-1-1, the
provisions of the consensus relating to the measurement and recognition of other-than-temporary
impairments have been deferred pending reassessment by the FASB. The remaining provisions of this
standard, which primarily relate to disclosure, are required to be applied prospectively to all
current and future investments accounted for in accordance with SFAS No.&nbsp;115 and other cost method
investments. We have complied with the disclosure provisions of this
pronouncement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Share based payment</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In December&nbsp;2004, the FASB issued SFAS No.&nbsp;123(R), Share-Based Payment, which establishes
accounting standards for all transactions in which an entity exchanges its equity instruments for
goods and services. SFAS No.&nbsp;123(R) focuses primarily on accounting for transactions with
employees, and carries forward without change prior guidance for share-based payments for
transactions with non employees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SFAS No.&nbsp;123(R) eliminates the intrinsic value alternative in APB Opinion 25 and generally requires
us to measure the cost of employee services received in exchange for an award of equity
instruments based on the fair value of the award on the date of the grant. The standard requires
grant date fair value to be estimated using either an option-pricing model which is consistent with
the terms of the award or a market observed price, if such a price exists. Such cost must be
recognized over the period during which an employee is required to provide service in exchange for
the award &#151; the requisite service period (which is usually the vesting period). The standard also
requires us to estimate the number of instruments that will ultimately be issued, rather than
accounting for forfeitures as they occur.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are required to apply SFAS No.&nbsp;123(R) to all awards granted, modified or settled in our
first reporting period under U.S. GAAP after June&nbsp;15, 2006. We
are also required to use either
the &#147;modified prospective method&#148; or the &#147;modified retrospective method.&#148; Under the modified
prospective method, we must recognize compensation cost for all
awards after we adopt the standard and for the unvested portion of previously granted awards that are outstanding on that
date.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the
modified retrospective method, we must restate our previously issued financial
statements to recognize the amounts we previously calculated and reported on a pro forma
basis, as if the prior standard had been adopted. See note 2(v) to
our audited financial statements included elsewhere in this report.
</DIV>






</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under both methods, we are permitted to use either a straight line or an accelerated method to
amortize the cost as an expense. The standard permits and encourages early adoption.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We intend
to follow the prospective method. If we were to adopt SFAS No.&nbsp;123(R) using the
modified retrospective method, our net income would have been Rs. 900.9&nbsp;million less than reported
in the year ended March&nbsp;31,2005 and Rs. 1,229.9&nbsp;million less than reported in the fiscal year ended
March&nbsp;31, 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Other- than- temporary impairments of securities</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FASB Statement No.&nbsp;154, Accounting Changes and Error Corrections<I>, </I>a replacement of APB Opinion No.
20 and FASB Statement No.&nbsp;3, requires retrospective application to prior periods&#146; financial
statements of changes in accounting principle, unless it is impracticable to determine either the
period-specific effects or the cumulative effect of the change. FASB Statement No.&nbsp;154, Accounting
Changes and Error Corrections<I>, </I>will not have a material effect
on our financial position or
results of operation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Accounting for Certain Hybrid Instruments</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In February&nbsp;2006, the FASB issued SFAS No.&nbsp;155 &#147;Accounting for Certain Hybrid Instruments&#148;
which permits, but does not require, fair value accounting for any hybrid financial instrument that
contains an embedded derivative and would otherwise require bifurcation in accordance with SFAS
No. 133. The statement is effective as of April&nbsp;1, 2007. We are
currently evaluating this standard to determine whether it will have a
material effect on the Bank&#146;s future financial position or
results of operation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Accounting for Servicing of Financial Assets</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In March&nbsp;2006, the FASB issued SFAS No.156, &#147;Accounting for Servicing of Financial Assets, an
amendment to FASB Statement No.&nbsp;140&#148;, which permits but does not require an entity to account for
one or more classes of servicing rights at fair value, with changes
in fair value recorded in Consolidated Statement of Income. The
statement is effective April&nbsp;1, 2007. We are currently evaluating this standard to determine whether it will have a material effect on
the bank&#146;s future financial position or results of operation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Fair Value Measurements</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In September&nbsp;2006, the FASB issued SFAS No.157, &#147;Fair Value Measurements&#148;. This statement defines
fair value, establishes a framework for measuring fair value in generally accepted accounting
principles (GAAP), and expands disclosures about fair value measurements. This statement applies
under other accounting pronouncements that require or permit fair value measurements. The statement
is effective November&nbsp;2007. We are currently evaluating this standard to determine whether it
will have a material effect on the bank&#146;s future financial position or results of operation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Accounting for uncertainty in Income Taxes</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In June&nbsp;2006, the FASB issued FIN No.&nbsp;48, &#147;Accounting for uncertainty in Income Taxes- an
interpretation of FASB statement No.&nbsp;109&#148;. This Interpretation clarifies the accounting for
uncertainty in income taxes recognized in accordance with FASB Statement No.&nbsp;109, Accounting for
Income Taxes. This Interpretation prescribes a recognition threshold and measurement attribute for
the financial statement recognition and measurement of a tax position taken or expected to be taken
in a tax return besides it also provides guidance on several other similar issues. This
interpretation is effective December&nbsp;2006. We are
currently evaluating this standard to determine whether it will have a
material effect on the Bank&#146;s future financial position or
results of operation.
</DIV>



</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Fiscal Year Ended March&nbsp;31, 2006 Compared to Fiscal Year Ended March&nbsp;31, 2005</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Net Interest Revenue after Allowance for Credit Losses</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our net interest revenue after allowances for credit losses increased by 45.9% from Rs. 12.9
billion in fiscal 2005 to Rs. 18.9&nbsp;billion in fiscal 2006. Our net interest margin increased from
3.9% in fiscal 2005 to 4.0% in fiscal 2006. The following table sets out the components of net
interest revenue after allowance for credit losses:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>Year ended March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Increase/</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>% Increase/</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>(decrease)</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>(decrease)</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15"><B>(in millions, except percentages)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest on loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">16,431.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">28,853.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">12,422.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">75.6</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest on securities, including dividends </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,543.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,165.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,621.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">14.1</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other interest revenue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,234.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,509.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">274.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">22.2</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total interest and dividend revenue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,209.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,528.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,318.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">49.0</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest on deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,074.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,590.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,516.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">40.8</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest on short term borrowings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,759.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,497.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,738.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">98.8</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest on long term debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">390.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">534.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">143.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">36.8</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total interest expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,223.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,621.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,398.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">48.4</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" nowrap align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net interest revenue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,985.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,906.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,920.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">49.6</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Allowance for credit losses
Retail</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,925.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,956.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,030.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">69.4</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wholesale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">122.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">76.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">(46.7</TD>
    <TD>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD nowrap align="right">(38.1</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,048.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,032.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,983.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">65.1</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net interest revenue after
allowance for credit losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">12,937.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">18,874.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">5,936.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">45.9</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Interest and Dividend Revenue</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest revenue from loans increased as average volume of loans increased by 58.0% from Rs. 204.9
billion in fiscal 2005 to Rs. 323.7&nbsp;billion in fiscal 2006. Our average volume of retail loans
increased by 66.6% from Rs. 94.4&nbsp;billion in fiscal 2005 to Rs. 157.3&nbsp;billion in fiscal 2006
primarily due to higher penetration of our retail loan products in existing markets and our
expansion into new geographical areas. Our average volume of wholesale loans increased by 50.6% from
Rs. 110.5&nbsp;billion in fiscal 2005 to
Rs. 166.4&nbsp;billion in fiscal 2006 due to increased lending to existing customers as well as new
customer acquisitions. These volume increases were also matched by a corresponding increase in
yields. Yields on our loans increased from an average of 8.0% in fiscal 2005 to 8.9% in fiscal
2006. Loan yields increased as a result of the general increase in the interest rates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Despite a drop
in yields in overall investments, interest and dividend from securities
increased by 14.1%. This was primarily due to an increase in statutory
liquidity ratio securities, and higher receipts on dividends on mutual fund units.</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->68<!-- /Folio -->

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other interest revenue increased by 22.2% for fiscal 2006 compared to fiscal 2005 mainly due to an
increase in earnings from inter bank and term placements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Interest Expense</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
interest expense on deposits increased by 40.8% from Rs. 11.1&nbsp;billion in fiscal 2005 to Rs. 15.6
billion in fiscal 2006. Our average cost of deposits increased from 3.2% in fiscal 2005 to 3.4% in
fiscal 2006 primarily as a result of an increase in the average cost of time deposits from 5.6% in
fiscal 2005 to 6.0% in fiscal 2006. The proportion of savings account balances to average total
deposits increased from 55.3% to 57.0%. Our interest expense on short-term borrowings increased by
98.8% as a result of an increase in borrowing in inter bank call money market. Our average cost of
borrowing also increased from 4.1% in fiscal 2005 to 4.8% in fiscal 2006. Our interest expense on
long-term debt increased by 36.8% primarily due to Rs. 12.0&nbsp;billion of subordinated debt issued in
the fiscal 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Allowance for Credit Losses</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allowances
for credit losses increased by 65.1% for fiscal 2006 compared to fiscal 2005. During the same
period, allowances for credit losses for retail loans increased by 69.4% from Rs. 2,925.5&nbsp;million,
to Rs. 4,956.0&nbsp;million, at a lower rate than our retail loan
book which grew by 104.0% from Rs. 112.7&nbsp;billion to Rs. 229.3&nbsp;billion. The retail loans increased due to an increase in our loan book
consisting of credit cards and personal loans and expansion into new territories. The Bank
establishes a specific allowance on the retail loan portfolio based on factors such as the nature
of the product, delinquency levels or the number of days the loan is past due, the nature of the
security available and loan to value ratios. The loans are charged off against allowances at
defined delinquency levels. The credit losses for the wholesale segment
decreased by 38.1%, primarily
due to large recoveries in NPL loans during the year ended March&nbsp;31, 2006 compared to the year
ended March&nbsp;31, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Non- Interest revenue</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our non-interest revenue increased by 47.9% from Rs. 8.2&nbsp;billion in fiscal 2005 to Rs. 12.1&nbsp;billion
in fiscal 2006. The following table sets forth the components of our non-interest revenue:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>Year ended March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Increase/</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>% Increase/</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>(decrease)</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>(decrease)</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15"><B>(in millions, except percentages)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Fees and commissions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">6,124.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">10,949.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">4,825.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">78.8</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Realized gains (losses)&nbsp;on
sales of AFS securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">194.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">420.3</TD>
    <TD nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">226.0</TD>
    <TD nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">116.3</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Realized gains (losses)&nbsp;on
sales of HFT securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(39.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">(44.8</TD>
    <TD>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">(5.5</TD>
    <TD nowrap>)&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(14.0</TD>
    <TD nowrap>)&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Foreign exchange</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">911.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">994.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">82.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">9.0</TD>
    <TD nowrap></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Derivative transactions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">204.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(402.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(606.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(297.5</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">816.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">231.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(584.7</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(71.6</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total non-interest revenue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">8,211.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">12,147.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">3,936.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">47.9</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="right" style="font-size: 10pt"><!-- Folio -->69<!-- /Folio -->

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fees and commissions increased primarily because of growth in service and processing fee
income related to retail banking services, which was due largely to an increased volume of ATM,
credit card and debit card transactions, third party distribution earnings and other retail loans,
and an increase in the standard rates for fees on retail transactions. In addition, our fees from
the distribution of third party mutual funds and insurance increased considerably.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenue from foreign exchange increased primarily due to an increase in the volume of foreign
exchange transactions with retail and wholesale customers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenue from derivatives declined primarily due to lower customer volumes on derivatives as well as
a decline in fair values on interest rate swaps due to changes in interest rates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The decrease in other non-interest revenue resulted from a decline in sales of portfolios of
automobile loans, commercial vehicle loans and personal loans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Non- Interest expense</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our non-interest expense was comprised of the following:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="23" style="border-bottom: 1px solid #000000"><B>Year ended March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Increase/</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>% Increase/</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2005 % of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2006 % of</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>(decrease)</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>(decrease)</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>net revenues</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>net revenues</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="23"><B>(in millions except percentages)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Salaries and staff benefits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">3,249.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">5,420.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">2,171.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">66.8</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">15.4</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">17.5</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Premises and equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,260.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,125.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">865.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">38.3</TD>
    <TD nowrap></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">10.7</TD>
    <TD nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">10.1</TD>
    <TD nowrap></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Depreciation and amortization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,440.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,812.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">371.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">25.8</TD>
    <TD nowrap></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">6.8</TD>
    <TD nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">5.8</TD>
    <TD nowrap></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Administrative and other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,462.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,487.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,025.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">67.8</TD>
    <TD nowrap></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">21.1</TD>
    <TD nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">24.1</TD>
    <TD nowrap></TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="23" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total non-interest expense </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">11,413.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">17,846.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">6,432.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">56.4</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">54.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">57.5</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="23" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
non-interest expense increased by 56.4% from Rs. 11.4&nbsp;billion in fiscal 2005 to Rs. 17.8
billion in fiscal 2006. This was primarily due to increased infrastructure costs related to the
expansion of our branch and ATM networks and geographical coverage and higher volumes for our
retail loan products. As a percentage of our net revenues, non-interest expense increased to 57.5%
in fiscal 2006 compared to 54.0% in fiscal 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Salaries and staff benefits rose in absolute terms and as a percentage of revenue principally due
to increased headcount to support our future growth. Our headcount increased from 9,030 employees
as of March&nbsp;31, 2005 to 14,878 employees as of March&nbsp;31, 2006. Our premises and equipment expense
increased because we expanded our distribution network from 467 branches and 1,147 ATMs as of March&nbsp;31, 2005 to 535
branches and 1,323 ATMs as of March&nbsp;31, 2006. In addition there
are over 120 branches which are awaiting RBI approval to commence
business. Depreciation and amortization and administrative and
other expenses increased primarily due to an expansion of our branch and ATM networks and higher
spending on technology and infrastructure to support growth in our retail loans and credit card
business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Income Tax</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our income
tax expense increased by 26.9% from Rs. 3.1&nbsp;billion in fiscal 2005 to Rs. 4.0&nbsp;billion in
fiscal 2006. Our effective tax rate decreased from 32.1% in fiscal 2005 to 30.1% in fiscal 2006,
principally due to higher tax-exempt income in the year ended March&nbsp;31, 2006. Tax-exempt income
consists principally of
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="right" style="font-size: 10pt"><!-- Folio -->70<!-- /Folio -->

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">dividends and investment income from tax-exempt investments such as
preference shares, mutual fund units and infrastructure bonds.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Net Income</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a result of the foregoing factors, our net income after taxes increased by 39.3% from Rs. 6.6
billion in fiscal 2005 to Rs. 9.2&nbsp;billion in fiscal 2006.
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->71<!-- /Folio -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Fiscal Year Ended March&nbsp;31, 2005 Compared to Fiscal Year Ended March&nbsp;31, 2004</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Net Interest Revenue After Allowance For Credit Losses</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our net interest revenue after allowances for credit losses increased by 26.0% from Rs. 10.3
billion in fiscal 2004 to Rs. 12.9&nbsp;billion in fiscal 2005. Our net interest margin increased from
3.8% in fiscal 2004 to 3.9% in fiscal 2005. The following table sets out the components of net
interest revenue after allowance for credit losses:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt; font-weight: bold" Valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 1px solid #000000">Year ended March 31,</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt; font-weight: bold" Valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Increase/</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">% Increase/</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt; font-weight: bold" Valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2004</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2005</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">(decrease)</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">(decrease)</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14">(in millions, except percentages)</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest on loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">11,705.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">16,431.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.</TD>
    <TD align="right">&nbsp;4,726.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">40.4</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest on securities, including dividends</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,776.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,543.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(233.4</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2.0</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other interest revenue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,109.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,234.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">124.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">11.3</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total interest and dividend revenue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,591.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,209.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,617.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">18.8</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest on deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,279.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,074.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">794.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.7</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest on short term borrowings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,435.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,759.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">323.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">22.5</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest on long term debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">268.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">390.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">122.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">45.6</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total interest expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,983.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,223.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,240.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10.4</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net interest revenue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,608.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,985.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,377.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">26.8</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Allowance for credit losses </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Retail</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">918.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,925.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,007.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">218.5</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Wholesale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,424.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">122.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,302.2</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(91.4</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,343.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,048.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">704.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">30.1</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net interest revenue after
allowance for credit losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">10,265.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">12,937.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.</TD>
    <TD align="right">&nbsp;2,672.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">26.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Interest and Dividend Revenue</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest revenue from loans increased as average volume of loans increased 50.1% from Rs. 136.5
billion in fiscal 2004 to Rs. 204.9&nbsp;billion in fiscal 2005. Our average volume of retail loans
increased by 78.4% from Rs. 52.9&nbsp;billion in fiscal 2004 to Rs. 94.4&nbsp;billion in fiscal 2005,
primarily due to higher penetration of our
retail loan products in existing markets and our expansion into new geographical areas. Our average
volume of wholesale loans increased by 32.2% from Rs. 83.6&nbsp;billion in fiscal 2004 to Rs. 110.5
billion in fiscal 2005 due to increased lending to existing customers as well as new customer
acquisitions. However, these volume increases were partially offset by a reduction in yields.
Yields on our loans decreased from an average of 8.6% in the fiscal 2004 to 8.0% in fiscal 2005.
Loan yields declined as a result of the general decline in interest rates and increased
competition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest and dividend revenue from securities declined principally due to lower receipts of
dividends on mutual fund units in the fiscal year ended March&nbsp;31, 2005 as well as a decline in
yields. These decreases were partially offset by an increase in the volume of investments and
income from investments in government securities
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="right" style="font-size: 10pt"><!-- Folio -->72<!-- /Folio -->

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other interest revenue increased by 11.3% for fiscal 2005 compared to fiscal 2004 due to an
increase in earnings from balances maintained with the RBI. This increase in balances was on
account of higher statutory cash reserve maintenance requirements during the fiscal year ended
March&nbsp;31, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Interest Expense</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our interest expense on deposits increased by 7.7 % to Rs. 11.1&nbsp;billion due to an increase in
average volume of deposits of 30.4% from Rs. 262.7&nbsp;billion in fiscal 2004 to Rs. 342.7&nbsp;billion in
fiscal 2005 primarily as a result of our expanded retail branch network. Our average cost of
deposits decreased from 3.9% in fiscal 2004 to 3.2% in fiscal 2005 primarily as a result of a
decline in the average cost of time deposits from 6.2% to 5.6% and an increase in the proportion of
relatively lower cost average current accounts (which are non interest-bearing) and savings account
balances to average total deposits from 46.9% in fiscal 2004 to 55.3% in fiscal 2005
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our interest expense on short-term borrowings increased by 22.5% as a result of an increase in
borrowing in inter bank call money market partially offset by decrease in the average cost of
borrowing from 4.3 % as of March&nbsp;31, 2004 to 4.1% as of March&nbsp;31, 2005. Our interest expense on
long-term debt increased, primarily due to Rs. 4.0&nbsp;billion of subordinated debt issued in the last
quarter of fiscal 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Allowance for Credit Losses</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allowances for credit losses increased by 30.1% for fiscal 2005 compared to fiscal 2004. During the
same period, allowances for credit losses for retail loans increased by 218.5% from Rs. 918.5
million to Rs. 2,925.5million at a greater rate than our retail loan book which grew by 53.8% from
Rs. 73.3&nbsp;billion to Rs. 112.7&nbsp;billion, due to an increase in our unsecured loan book consisting of
credit cards and personal loans and expansion into new territories where there are higher rates of
delinquency compensated by higher yields. Allowances for credit losses for the wholesale segment
decreased by 91.4%, primarily due to a large number of recoveries during the year ended March&nbsp;31,
2005 compared to the year ended March&nbsp;31, 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Non
Interest revenue</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our non-interest revenue increased by 74.8% from Rs. 4.7&nbsp;billion in fiscal 2004 to Rs. 8.2&nbsp;billion
in fiscal 2005. The following table sets out the components of our non-interest revenue:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%"></TD>
    <TD width="5%"></TD>
    <TD width="1%"></TD>
    <TD width="5%"></TD>
    <TD width="1%"></TD>
    <TD width="5%"></TD>
    <TD width="1%"></TD>
    <TD width="5%"></TD>
    <TD width="1%"></TD>
    <TD width="5%"></TD>
    <TD width="1%"></TD>
    <TD width="5%"></TD>
    <TD width="1%"></TD>
    <TD width="5%"></TD>
    <TD width="1%"></TD>
    <TD width="5%"></TD>
    <TD width="1%"></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>Year ended March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Increase/</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>% Increase/</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>(decrease)</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>(decrease)</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15"><B>(in millions, except percentages)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Fees and commissions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">3,140.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">6,124.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">2,983.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">95.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Realized gains (losses)&nbsp;on sales of AFS securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(48.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">194.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">242.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(502.3</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Realized gains (losses)&nbsp;on sales of HFT securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">396.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(39.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(436.1</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(109.9</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Foreign exchange</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">740.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">911.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">171.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">23.2</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Derivative transactions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">443.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">204.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(239.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(54.0</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">816.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">791.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3,232.2</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total non-interest revenue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">4,697.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">8,211.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">3,513.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">74.8</TD>
    <TD nowrap>%&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="right" style="font-size: 10pt"><!-- Folio -->73<!-- /Folio -->

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fees and commissions increased primarily because of growth in service and processing fee
income related to retail banking services, which was due largely to an increased volume of ATM,
credit card and debit card transactions and other retail loans, and an increase in the standard
rates for fees on retail transactions. In addition our depository fees increased as a result of
increased stock market activity as did fees from the distribution of third party mutual funds and
insurance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues from foreign exchange increased primarily due to an increase in the volume of foreign
exchange transactions with retail and wholesale customers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues from derivatives declined primarily due to lower customer volumes on derivatives as well
as a decline in fair values on interest rate swaps due to changes in interest rates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Non-Interest Expense</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our non-interest expense comprised of the following:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="23" style="border-bottom: 1px solid #000000"><B>Year ended March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Increase/</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>% Increase/</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2004 % of net</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2005 % of net</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>(decrease)</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>(decrease)</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>revenues</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>revenues</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="23"><B>(in millions, except percentages)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Salaries and staff benefits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">2,154.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">3,249.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">1,095.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">50.9</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">14.4</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">15.4</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Premises and equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,828.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,260.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">432.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">23.6</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">12.2</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">10.7</TD>
    <TD nowrap align="right">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Depreciation and amortization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,254.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,440.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">185.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">14.8</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">8.4</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">6.8</TD>
    <TD nowrap align="right">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Administrative and other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,131.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,462.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,330.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">42.5</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">20.9</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">21.1</TD>
    <TD nowrap align="right">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="23" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total non-interest expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">8,369.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">11,413.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">3,044.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">36.4</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">55.9</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">54.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="23" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non interest expense increased by 36.4% from Rs.&nbsp;8.4&nbsp;billion in fiscal 2004 to Rs.&nbsp;11.4
billion in fiscal 2005. This was primarily due to an increase in infrastructure costs related to
the expansion of our branch and ATM networks and geographical coverage and higher volumes for our
retail loan products. As a percentage of our net revenues, non-interest expense decreased to 54.0%
in fiscal 2005 compared to 55.9% in fiscal 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Salaries and staff benefits rose in absolute terms and as a percentage of revenue principally due
to increased headcount to support our future growth. Our headcount increased from 5,673 employees
as of March&nbsp;31, 2004 to 9,030 employees as of March&nbsp;31, 2005. Salaries and staff benefits in the
year ended March&nbsp;31, 2005 also included a charge of Rs. 310.2&nbsp;million for compensation expense
arising out of options granted
compared to Rs.&nbsp;135.1&nbsp;million in the year ended March&nbsp;31, 2004. Our premises and equipment expense
increased because we expanded our distribution network from 312 branches and 910 ATMs as of March
31, 2004 to 467 branches and 1,147 ATMs as of March&nbsp;31, 2005. Depreciation and amortization expense
and administrative and other expenses increased primarily due to expansion of our branch and ATM
networks and higher spending on technology and infrastructure to support growth in our retail loans
and credit card business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Income Tax</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our income tax expense increased by 70.0% from Rs. 1.8&nbsp;billion in fiscal 2004 to Rs. 3.1&nbsp;billion in
fiscal 2005. Our effective rate of tax increased from 27.9% in fiscal 2004 to 32.1% in fiscal 2005,
principally due to an increase of 0.72% in the statutory income tax rate and higher permanent
differences in the form of stock based compensation and lower tax exempt income in the year ended
March&nbsp;31, 2005. Tax-exempt income consists principally of dividends and investment income from
tax-exempt investments such as preference shares, mutual fund units and infrastructure bonds.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Net Income</I></B>
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="right" style="font-size: 10pt"><!-- Folio -->74<!-- /Folio -->

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a result of the foregoing factors, our net income after taxes increased by 39.0% from Rs. 4.8
billion in fiscal 2004 to Rs. 6.6&nbsp;billion in fiscal 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Liquidity and Capital Resources</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our growth over the last three years has been financed by a combination of cash generated from
operations, increases in our customer deposits, borrowings and new issuances of equity capital.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth our cash flows from operating activities, investing activities and
financing activities in a condensed format. We have aggregated certain line items set forth in the
cash flow statement that is part of our financial statements included elsewhere in this report in
order to facilitate understanding of significant trends in our business.
</DIV>



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD  style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD  style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2"  style="border-bottom: 1px solid #000000"><B>Years ended March 31,</B></TD>
    <TD  style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD  style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2"  style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10"><B>(In millions)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Cash flows from operating activities:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="right">Rs.    4,754.5</TD>
    <TD>&nbsp;</TD>    <TD>&nbsp;</TD>
    <TD colspan="2" align="right">Rs.   6,609.7</TD>
    <TD>&nbsp;</TD>    <TD>&nbsp;</TD>
    <TD colspan="2" align="right">Rs. 9,187.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non cash adjustment to net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,520.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,021.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,144.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="10" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Subtotal</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,274.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,630.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,331.1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="10" align="right" style="border-top: 0px solid #000000">&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net change in other assets and liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,981.40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(9,886.2</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,285.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR><TD style="font-size: 10pt">&nbsp;</TD></TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="10" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net cash provided/(used) by operating activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40,255.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,744.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,616.1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="10" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Cash flows from investing activities:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net change in term placements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,182.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,134.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,544.2</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net change in Investment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(57,535.2</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(17,516.4</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(78,453.7</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Purchase of subsidiary</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Proceeds from loans securitized</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,917.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48,234.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,733.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Loans Purchased</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6,180.7</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(18,309.8</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8,952.3</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Collections from Loans Purchased</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,233.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,621.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,216.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Increase in loans originated, net of principal
collections</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(63,818.4</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(127,777.5</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(159,840.8</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Additions to property and equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,119.0</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,433.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,701.4</TD>
    <TD nowrap>)</TD>
</TR>
<TR><TD style="font-size: 10pt">&nbsp;</TD></TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="10" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net cash used in investing activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(117,320.4</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(106,315.5</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(227,387.3</TD>
    <TD nowrap>)</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="10" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Cash flows from financing activities:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net increase in deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">80,302.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59,480.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">193,762.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net increase/(decrease) in short-term borrowings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,484.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,014.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,597.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net increase/(decrease) in long-term debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,970.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,057.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,000.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Proceeds from issuance of equity shares for options exercised</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">203.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">659.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">625.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Proceeds from issuance of ADSs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,747.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Proceeds from applications received for shares pending allotment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">125.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">423.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Payment of dividends and dividend tax</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(955.7</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,131.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,597.1</TD>
    <TD nowrap>)</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="10" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net cash provided by financing activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">86,130.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">109,136.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">218,389.7</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="10" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net change in cash</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,065.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,565.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,618.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash and cash equivalents, beginning of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,944.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33,010.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,575.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="10" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Cash and cash equivalents, end of year</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="right" nowrap>Rs.  33,010.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="right" nowrap>Rs.  37,575.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="right" nowrap>Rs.  61,194.3</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="10" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="right" style="font-size: 10pt"><!-- Folio -->75<!-- /Folio -->

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Cash flows from operations</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our net
cash from operations reflects our net income, adjustments for tax and
non-cash charges such as depreciation and amortization, as well as
changes in other assets and liabilities. Our net income after
adjusting for tax and non-cash adjustments increased in the periods
shown. Movements in other assets and liabilities also had a
significant impact on the net cash flow from operations in fiscal
2006. This was primarily on account of the increase in cash floats
associated with our transactional services by over Rs. 9.0 billion
and bills payable by Rs. 5.2 billion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Cash flows from financing activities</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our primary sources of cash flows from financing activities are deposits and, to a lesser extent,
borrowings. Deposits have increased over time as our business has expanded. Our total deposits
increased by 53.3% from Rs. 363.5&nbsp;billion in fiscal 2005 to Rs. 557.3&nbsp;billion in fiscal 2006.
Savings account deposits at Rs. 161.9&nbsp;billion and current account
deposits at Rs. 147.1&nbsp;billion,
together accounted for approximately 55.4% of the total deposits as of March&nbsp;31, 2006. There has
been a 73.6% increase in our time deposits from Rs. 143.1&nbsp;billion in fiscal 2005 to Rs. 248.3
billion in fiscal 2006, which contributed to the significant overall increase in deposits.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The short-term borrowings are utilized for our Treasury Operations. In the fiscal 2006, our short
term borrowings increased by 21.9% to Rs. 75.7&nbsp;billion from Rs. 62.1&nbsp;billion in fiscal 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the year ended March&nbsp;31, 2006 we raised Rs. 12.0&nbsp;billion subordinated debt at an annualized
coupon between 7.5% to 8.6% and having maturity ranging from nine to
ten years. During the
year ended March 31, 2006 we raised Rs. 12.0 billion subordinated
debt at an annualized coupon between 7.5% to 8.6% and having maturity
ranging from nine to ten years. Subordinated debt qualifies for Tier
2 capital. Subsequent to March 31, 2006, we have raised debt
aggregating to Rs. 10.1 billion that qualifies for Tier 2 capital, at
an annualized coupon between 8.4% to 9.2% and having maturity ranging
from ten to fifteen years and perpetual debt aggregating to Rs. 2
billion that qualifies as Tier 1 capital, at a semi annualized coupon
of 9.9%.</div>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Cash flows from investing activities</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We used our cash from operations and financing activities primarily to invest in our retail loan
book. Our growth in investments reflected primarily an increase in statutory liquidity ratio
investments that was required as our business expanded. The net change in investment at March&nbsp;31,
2006 was Rs. 78.5&nbsp;billion. This increase was primarily due to
increase in investments required to meet our statutory liquidity ratio
during the year. These investments increased from Rs. 111.8 billion
in fiscal 2005 to Rs. 188.1 billion in fiscal 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The net change in loans (net of principal collections) increased from Rs. 129.5&nbsp;billion in fiscal
2005 to Rs. 163.6&nbsp;billion in fiscal 2006. This was mainly due to increase in Retail Loans, which
increased by 104.0 % in fiscal 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the fiscal year 2005-06, the RBI issued guidelines on securitization transactions vide its
circular dated February&nbsp;1, 2006. Prior to the issuance of the said guidelines any gain or loss from
the sale of
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="right" style="font-size: 10pt"><!-- Folio -->76<!-- /Folio -->

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">receivables was recognized in the period in which the sale occurred. Now with the new guidelines,
the Bank is required to amortize any profit or premium arising on account of sale of receivables
over the life of the securities sold out while any loss arising on account of sale is required to
be recognized in the profit/ loss account for the period in which the sale occurs. Also, credit
enhancements are now reduced from capital, and so is any securitization paper in excess of the
prescribed limits. The securitization market has thus slowed down, and the decline in sale of
receivables portfolio from Rs. 48.2&nbsp;billion in fiscal 2005 to Rs. 19.7&nbsp;billion in fiscal 2006 is
primarily because of the same.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Financial Condition</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Assets</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the principal components of our assets as of March&nbsp;31, 2005 and
March&nbsp;31, 2006:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
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    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>As of March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Increase/</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>% Increase/</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>(decrease)</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>(decrease)</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15"><B>(in millions except percentages)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash and cash equivalents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">37,575.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">61,194.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">23,618.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">62.9</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Term placements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,699.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,243.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,544.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investments held for trading</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,278.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,945.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,667.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">130.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investments available for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">204,292.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">273,457.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69,164.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investments held to maturity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities purchased under
agreements to resell</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,200.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,200.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Loans, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">256,486.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">395,274.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">138,787.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accrued interest receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,912.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,662.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,750.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">76.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Property and equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,083.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,714.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,631.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,215.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,277.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,061.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">72.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">535,544.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">790,969.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">255,425.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">47.7</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our total
assets increased by 47.7% to Rs. 791.0&nbsp;billion in fiscal 2006 from Rs. 535.5&nbsp;billion
in fiscal 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There was
a 33.9% increase in AFS securities primarily on account of a rise in
the bank&#146;s statutory liquidity ratio requirements during the year. Securities purchased under
agreements to resell represents the reverse repo transactions that
the bank had entered with the RBI on March 31, 2006.</div>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loans increased due to increases in both our retail and wholesale products. Our retail loan
volume increased by 104.0% from Rs. 112.7&nbsp;billion in fiscal 2005 to 229.3&nbsp;billion in fiscal 2006,
which reflected our increased focus on retail loans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our property and equipment increased as we expanded our distribution network from 467 branches and
1,147 ATMs as of March&nbsp;31, 2005 to 535 branches and 1,323 ATMs as of March&nbsp;31, 2006 and invested in
other infrastructure to support our growth. In addition there are
over 120 branches which are awaiting RBI approval for commencing business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Liabilities and Shareholders&#146; Equity</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the principal components of our liabilities and shareholders&#146; equity
as of March&nbsp;31, 2005 and March&nbsp;31, 2006:
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->77<!-- /Folio -->
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
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    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>As of March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Increase/</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>% Increase/</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>(decrease)</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>(decrease)</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15"><B>(in millions except percentages)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest bearing deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">257,237.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">410,181.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">152,943.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">59.5</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-interest bearing deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">106,304.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">147,124.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40,819.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">38.4</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">363,542.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">557,305.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">193,762.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">53.3</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Short-term borrowings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62,079.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75,676.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,597.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">21.9</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accrued interest payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,843.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,264.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,421.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">41.4</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Long-term debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,028.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,028.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,000.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">238.7</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accrued expenses and other liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49,713.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77,201.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,488.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">55.3</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">486,206.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">735,476.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">249,270.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">51.3</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Minority Interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">225.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">225.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shareholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49,338.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55,267.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,929.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">12.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total liabilities and shareholders&#146;
equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">535,544.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">790,969.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">255,425.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">47.7</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our total
liabilities increased by 51.3% from Rs. 486.2&nbsp;billion in fiscal
2005 to Rs. 735.5&nbsp;billion
in fiscal 2006. The increase in our interest bearing deposits was principally due to new customers
acquired as we expanded our branch network and achieved greater penetration of our customer base
through cross sales of our products. Of our total deposits as of March&nbsp;31, 2006 retail deposits
accounted for 62.3% amounting to Rs. 347.3&nbsp;billion and wholesale deposits accounted for the
balance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other liabilities increased principally because of an increase in bills
payable and remittances in transit as of March&nbsp;31, 2006 compared to March&nbsp;31, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Most of our funding requirements are met through short term and medium term funding sources. Of our
total non-equity sources of funding as of March&nbsp;31, 2006, deposits accounted for approximately
75.8% with short term borrowings accounting for approximately 10.3% and long-term debt accounting
for approximately 2.3%. In our experience, a substantial portion of our deposits are rolled over
upon maturity and are, over time, a stable source of funding. However, the continuation of our
deposit base could be adversely affected in the event of deterioration in the economy or if the
interest rates offered by us differ significantly from those offered by our competitors. Our
short-term borrowings, which are comprised primarily of money-market borrowings, increased by
21.9%. During the year the Bank also raised long term subordinated debt of Rs. 12.0&nbsp;billion at
an annualized coupon between 7.5% to 8.6% and having a maturity ranging from 9 to 10&nbsp;years.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shareholders&#146; equity increased primarily due to an increase in our retained earnings. As of March
31, 2006 our shareholders&#146; equity included Rs. 1.3&nbsp;billion of unrealized loss on available for sale
securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Capital</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are subject to the capital adequacy requirements of the RBI, which are primarily based on the
capital adequacy accord reached by the Basel Committee of the Bank of International Settlements in
1988. For a description of the RBI&#146;s capital adequacy guidelines, see &#147;Supervision and Regulation &#151;
Capital Adequacy Requirements&#148;. We are required to maintain a minimum ratio of total capital to
risk adjusted assets as determined by a specified formula of 9.0%, at least half of which must be
Tier 1 capital, which is generally shareholders&#146; equity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our regulatory capital and capital adequacy ratios as measured in accordance with Indian GAAP are
as follows:
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->78<!-- /Folio -->
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>As of March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>(in millions except percentages)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tier 1 capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">39,621.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">51,499.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tier 2 capital </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,547.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,207.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">50,168.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">68,706.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total risk weighted assets and contingents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">412,710.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">602,176.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Capital ratios</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tier 1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">9.60</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">8.55</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">12.16</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">11.41</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Minimum capital ratios required by the RBI:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tier 1 </DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">4.50</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">4.50</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">9.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">9.00</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As shown above, our Tier 1 capital ratio decreased to 8.55% and our total capital ratio
decreased to 11.46% as of March&nbsp;31, 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Indian GAAP financial statements include general provisions (unallocated allowances) of Rs. 1.5
billion and Rs. 1.9&nbsp;billion as of March&nbsp;31, 2005 and March&nbsp;31, 2006, respectively, which qualify
for Tier 2 capital subject to a ceiling of risk weighted assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the issuance of securitization guidelines by RBI, the Bank has
given the following treatment to credit enhancements provided to an
investor or a special purpose vehicle:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 20px; text-indent; -20px">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;50%
of each of the first and second loss credit enhancement * is reduced
from Tier 1 and Tier 2 capital respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 20px; text-indent; -20px">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Commitment to provide liquidity facility, to the extent not drawn, is
considered an off-balance sheet item and is given 100% credit
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;conversion factor as well as 100% risk weight.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>
(* For transactions prior to issuance of Draft Securitization
Guidelines, credit enhancements provided as cash collateral have been
reduced from Tier 1 and Tier 2 capital)</I>
</DIV>





<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The RBI Tier 1 capital and total capital ratios are expected to change with the implementation of
the Basel II standards by fiscal 2007. Under Basel II, there will be three methods for
determining the risk weighting of assets for purposes of calculating capital requirements for
credit risk, consisting of one &#147;standardized&#148; method in which external ratings are used and two
methods in which a bank&#146;s internal ratings are used. The RBI has said that Indian banks should use
the standardized method but it may later permit banks to migrate to the internal ratings based
approaches. We have been closely following the development of Basel II and have participated in
studies conducted by the RBI to analyze the effects of Basel II. Since the publication of the final
framework in June&nbsp;2004, we have been reviewing our systems and procedures, particularly in the
areas of credit rating, risk architecture, technology support and process documentation, to ensure
that we are in a position to implement the new framework and, in particular, to follow an internal
ratings based approach once that is permitted by the RBI. This will supplement the risk management
systems that we already have in place. Recent RBI guidelines require
banks to analyse their capital ratios under the current and the
proposed guidelines and report these to the board of directors of the
Bank at regular intervals. We are in a position to comply with this
requirement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Capital Expenditure</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our capital expenditures consist principally of branch network expansion, as well as investments in
our technology and communications infrastructure. We have current plans for aggregate capital
expenditures of approximately Rs. 2,036.6&nbsp;million in fiscal 2007, of which we intend to invest
approximately Rs. 151.3&nbsp;million to expand our branch, ATM and Electronic Data Capture terminal
networks and Rs. 1,885.2&nbsp;million
in other technological initiatives. As of March&nbsp;31, 2006, we had entered into capital commitments
of Rs.
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">79
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">946.8&nbsp;million which we plan to fund through internal accruals. However, we have no commitments
to make the balance of the planned capital expenditures and the foregoing amounts and purposes may
change depending on business conditions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Financial Instruments and Off-Balance Sheet Arrangements</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Foreign Exchange and Derivatives</I></B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We enter into foreign exchange and derivative transactions for our customers and for our own
account. Our foreign exchange contracts include forward exchange contracts, currency swaps and
currency options. Our derivative contracts include rupee-based interest rate swaps, forward rate
agreements and cross-currency derivatives primarily for corporate customers. We enter into
transactions with our customers and typically lay off exposures in the inter-bank market. We also
trade rupee-based interest rate swaps for our own account and enter into foreign exchange contracts
to cover our own exposures. We earn profit on customer transactions by way of a margin as a mark-up
over the inter-bank exchange or interest rate. We earn profit on inter-bank transactions by way of
a spread between the purchase rate and the sale rate. These profits are recorded as income from
foreign exchange and derivative transactions. The RBI imposes limits on our ability to hold
overnight positions in foreign exchange and derivatives. See &#147;Business &#151; Treasury &#151; Derivatives&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table presents the aggregate notional principal amounts of our outstanding foreign
exchange and derivative contracts as of March&nbsp;31, 2005 and March&nbsp;31, 2006, together with the
related fair value, which is the mark-to-market impact of the derivative and foreign exchange
products on the reporting date. We do not net exposures to the same counter party in calculating
these amounts.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>As of March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 0px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 0px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Notional</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Fair Value</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Notional</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Fair Value</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15"><B>(In millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Interest rate swaps
and forward rate
agreements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">780,211.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">(79.7</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">1,209,102.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">(593.1</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Forward exchange
contracts, currency
swaps and currency
options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">571,445.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">731.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">845,329.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">1,025.8</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our trading activities for the above derivative instruments are carried out in the inter-bank
market, which is a non-exchange informal market. However, these markets generally either provide
price discovery or sufficient data to reliably estimate fair values of financial instruments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Guarantees and Documentary Credits</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a part of our commercial banking activities, we issue documentary credits and guarantees.
Documentary credits, such as letters of credit, enhance the credit standing of our customers.
Guarantees generally represent irrevocable assurances that we will make payments in the event that
the customer fails to fulfill its financial or performance obligations. Financial guarantees are
obligations to pay a third party beneficiary where a customer fails to make payment toward a
specified financial obligation. Performance guarantees are obligations to pay a third party
beneficiary where a customer fails to perform a non-financial contractual obligation. The nominal
values of guarantees and documentary credits for the dates set forth below were as follows:
</DIV>
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->80<!-- /Folio -->


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>As of March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>(In millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bank guarantees:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Financial guarantees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">14,365.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">21,141.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Performance guarantees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,954.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,940.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Documentary credits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,930.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,103.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp; &nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">52,250.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">58,185.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp; &nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Guarantees and documentary credits outstanding increased by 11.4% to Rs. 58.2&nbsp;billion as of
March&nbsp;31, 2006, principally due to general growth in our wholesale banking business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Loan Sanction Letters</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In some cases we issue sanction letters to customers, indicating our intent to provide new loans.
The amount of loans referred to in these letters that have not yet been made increased from Rs.
65.2&nbsp;billion as of March&nbsp;31, 2005 to Rs. 110.8&nbsp;billion as of March&nbsp;31, 2006. If requested, we make
these loans subject to the customer&#146;s credit worthiness at that time and at interest rates in
effect on the date the loans are made. We are not obligated to make these loans, and the sanctions
are subject to periodic review. See also Note 23 to our Financial Statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Contractual Obligations and Commercial Commitments</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Contractual Obligations</I></B>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19" style="border-bottom: 1px solid #000000"><B>Payments due by period, as of March 31,2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Less than</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>After</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>1 year</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>1-3 years</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>3-5 years</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>5 years</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19"><B>(In millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Subordinated debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">17,020.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">1,000.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">16,020.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Other long term
debt<SUP style="font-size: 85%; vertical-align: text-top">(a)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Operating leases<SUP style="font-size: 85%; vertical-align: text-top">(b)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,001.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">397.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">322.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,137.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,144.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Unconditional purchase
obligations<SUP style="font-size: 85%; vertical-align: text-top">(c)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">946.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">946.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="19" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Total contractual cash obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">27,977.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">2,347.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">327.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">1,137.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">24,164.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="19" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>


<DIV style="margin-top: 0pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">a)</TD>
    <TD>&nbsp;</TD>
    <TD>Other long term debt consists of capital lease obligations of
Rs. 0.4&nbsp;million
pertaining to assets taken on leases, such as ATMs, VSATs and other equipment, and a
loan of Rs. 8.1&nbsp;million from the Indian Renewable Energy Development Authority used to
finance solar equipment.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">b)</TD>
    <TD>&nbsp;</TD>
    <TD>Operating leases are principally for the lease of office, branch and ATM
premises, and
residential premises for executives.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">c)</TD>
    <TD>&nbsp;</TD>
    <TD>Unconditional purchase obligations principally constitute the capital
expenditure commitments
made as of March&nbsp;31, 2006. See &#147;&#151; Capital
Expenditures&#148;.</TD>
</TR>

</TABLE>
</DIV>
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->81<!-- /Folio -->





<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Commercial Commitments</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our commercial commitments consist principally of letters of credit, guarantees, foreign exchange
contracts and derivative contracts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on historical trends, we have recognized a liability of Rs. 101.8&nbsp;million as required by
FASB Interpretation No.&nbsp;45, &#147;Guarantor&#146;s Accounting and Disclosure Requirements for Guarantees,&#148;
issued in November&nbsp;2002.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As part of our risk management activities, we continuously monitor the credit worthiness of
customers as well as guarantee exposures. However, if a customer fails to perform a specified
obligation to a beneficiary, the beneficiary may draw upon the guarantee by presenting documents
that are in compliance with the guarantee. In that event, we make payment to the beneficiary on
account of the indebtedness of the customer or make payment on account of the default by the
customer in the performance of an obligation, up to the full notional amount of the guarantee. The
customer is obligated to reimburse us for any such payment. If the customer fails to pay, we would,
as applicable, liquidate collateral and/or set off accounts. The residual maturities of the above
obligations as of March&nbsp;31, 2006 are set forth in the following table:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19" style="border-bottom: 1px solid #000000"><B>Amount of commitment expiration per period</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Total amounts</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Less than</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>committed</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>1 year</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>1-3 years</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>3-5 years</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Over 5 years</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19"><B>(in millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Documentary Credits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">24,103.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">21,618.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">2,246.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">213.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">24.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Guarantees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,081.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,065.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,921.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,439.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,656.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Forward exchange contracts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">734,733.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">657,150.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77,517.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">65.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Derivative contracts*</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,319,698.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">74,474.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">559,690.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">269,349.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">416,183.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="19" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total contractual cash obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">2,112,617.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">764,308.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">654,376.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">274,068.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">419,864.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="19" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>



<DIV style="margin-top: 0pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>Denotes notional principal amounts.</TD>
</TR>

</TABLE>
</DIV>
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->82<!-- /Folio -->




<DIV align="left">
<A name="112"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>MANAGEMENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Directors and Executive Officers</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Memorandum and Articles of Association (the &#147;Articles&#148;) provide that until otherwise
determined by a general meeting of shareholders, the number of our directors shall not be less than
three or more than fifteen directors, excluding directors appointed pursuant to the terms of issued
debt. Our Board of Directors consisted of nine members as of March&nbsp;31, 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As per the Indian Companies Act, 1956 (the &#147;Companies Act&#148;), at least two-thirds of our directors
are required to retire by rotation, with one third of these retiring at each annual general
meeting. As on March&nbsp;31, 2006, seven out of our nine directors retire by rotation. However, any
retiring director may be re-appointed by resolution of the shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the terms of our organizational documents, HDFC Limited has a right to nominate two
directors who are not required to retire by rotation, so long as HDFC Limited, its subsidiaries or
any other company promoted by HDFC Limited either singly or in the aggregate holds not less than
20% of our paid up equity share capital. The two directors so nominated by HDFC Limited are the
Chairman and the Managing Director. The Bennett Coleman Group has the right to appoint one director
so long as its equity holdings do not fall below 5%. Mr.&nbsp;Vineet Jain has been nominated by the
Bennett Coleman Group.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Banking Regulation&nbsp;Act requires that not less than 51% of the board members shall have special
knowledge or practical experience in one or more of the following areas: accounting, finance,
agriculture and rural economy, banking, co-operation, economics, law, small scale industry and any
other matter the RBI may specify. Out of these, not less than two directors shall have specialized
knowledge or practical experience in agriculture and rural economy, co-operation or small-scale
industry. Dr.&nbsp;Gadwal has specialized knowledge and experience in the agricultural sector. Mr.&nbsp;Ashim
Samanta has specialized knowledge and experience in small-scale industry.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interested directors may not vote at board proceedings, except where the interest is based solely
on a contract of indemnity for which the director is a surety, the interest is based on the
director&#146;s involvement as director of another company and holder of shares of that company, or
where a proper notification has been given under the Companies Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None of our directors or executive officers hold 1% or more of our shares.
</DIV>
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->83<!-- /Folio -->

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Board of Directors as of March&nbsp;31, 2006 was comprised of:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="41%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="46%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Position</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Age</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="7" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Mr. Jagdish Capoor
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chairman
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">67</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Mr. Aditya Puri
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Managing Director
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">55</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Dr. V. R. Gadwal
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Non-Executive Director
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">68</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Mr. Vineet Jain
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Non-Executive Director
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">40</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Mr. K. M. Mistry
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Non-Executive Director
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">52</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Mrs. Renu Karnad
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Non-Executive Director
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">54</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Mr. Arvind Pande
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Non-Executive Director
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">64</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Mr. Bobby Parikh
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Non-Executive Director
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">42</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Mr. Ashim Samanta
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Non-Executive Director
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">52</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Anil Ahuja resigned with effect from June&nbsp;17, 2005 and Mr.&nbsp;Ranjan Kapur resigned with
effect from March&nbsp;29, 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our executive officers as of March&nbsp;31, 2006 were as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="37%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="50%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Position</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Age</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="7" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Mr. Aditya Puri
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Managing Director
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">55</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Mr. Vinod G. Yennemadi
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Head, Finance, Administration,
Legal and Secretarial
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">64</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Mr. Samir Bhatia
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Head, Corporate Banking
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">42</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Mr. Harish Engineer
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Head, Wholesale Banking
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">57</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Mr. Sudhir Joshi
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Head, Treasury
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">59</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Mr. C. N. Ram
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Head, Information Technology
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">49</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Mr. Bharat Shah
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Head, Depositary Services and
Merchant Services
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">59</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Mr. G. Subramanian
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Head, Audit, Compliance,
Vigilance and Service Quality
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">58</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Mr. Paresh Sukthankar
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Head, Credit and Market Risk and
Human Resources
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">43</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Mr. A. Rajan
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Head, Operations
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">54</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Mr. Abhay Aima
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Head, Equities and Private Banking
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">43</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr Neeraj Swaroop resigned, as Head, Retail Banking with effect from August&nbsp;10, 2005. Mr.
Aditya Puri presently monitors the Retail Banking activities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Samir Bhatia resigned as Head, Corporate Banking with effect from July&nbsp;31, 2006. Mr.&nbsp;Harish
Engineer presently monitors the Corporate Banking activities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The business address for our directors and officers is &#145;HDFC Bank House&#146;, Senapati Bapat Marg,
Lower Parel (West), Mumbai &#151; 400 013, India.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following are brief biographies of our existing directors:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Mr.&nbsp;Jagdish Capoor </I>holds a Master of Commerce degree and is a Certified Associate of the Indian
Institute of Bankers. Mr.&nbsp;Capoor was appointed as part-time Chairman for a period of 3&nbsp;years with
effect from July&nbsp;6, 2001. At the Annual General Meeting held on May&nbsp;26, 2004, the shareholders
approved the re-appointment of Mr.&nbsp;Capoor as Chairman on a part-time basis for three years
beginning July&nbsp;6, 2004 upon revised terms and conditions. Prior to joining us, Mr.&nbsp;Capoor was a
Deputy Governor of the RBI. Mr.&nbsp;Capoor was Chairman of Deposit Insurance &#038; Credit Guarantee
Corporation of India and Bharatiya Reserve Bank Note Mudran Ltd. and served as a director on the
boards of Bank of Baroda, Export Import Bank of India, State Bank of India, the National Bank for
Agriculture and Rural Development and the
National Housing Bank. Presently, Mr.&nbsp;Capoor is a director of The Indian Hotels Co. Ltd. and Assets
Care
</DIV>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->84<!-- /Folio -->


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Enterprise Ltd. He is also a member of the Board of Governors of the Indian Institute of
Management, Indore and the Chairman of Bombay Stock Exchange Ltd. Mr.&nbsp;Capoor is a member of the
Audit Committee of Indian Hotels Co. Ltd. He is also a member of the Audit Committee of Assets Care
Enterprise Limited.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Mr.&nbsp;Aditya Puri </I>holds a Bachelor&#146;s degree in Commerce from Punjab University and is an associate
member of the Institute of Chartered Accountants of India. Mr.&nbsp;Puri has been our Managing Director
since September&nbsp;1994. Mr.&nbsp;Puri has over 32&nbsp;years of experience in both domestic and international
banking. Prior to joining us, Mr.&nbsp;Puri was the chief executive officer of Citibank, Malaysia from
1992 to 1994. At the Annual General Meeting held on May&nbsp;26, 2004, the shareholders approved,
subject to RBI approval, the re-appointment of Mr.&nbsp;Puri as Managing Director from September&nbsp;30,
2005 to March&nbsp;31, 2007 upon revised terms and conditions. The RBI has approved the Managing
Director&#146;s remuneration through March&nbsp;31, 2005. Further, at our 12th Annual General Meeting held on
May&nbsp;30, 2006, the shareholders also approved the reappointment of our Managing Director for a
three-year period, with effect from April&nbsp;1, 2007 upon revised terms and conditions, subject to RBI
approval. Mr.&nbsp;Puri has been appointed on the Board of SAMEA (South Asia, Middle East and
Africa-Region) Board of Master Card International.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Dr.&nbsp;V. R. Gadwal </I>holds a Bachelor and a Master of Science degree from Osmania University, Hyderabad
and a doctorate in agriculture from the Indian Agricultural Research Institute, New Delhi. He is
also a Fellow Member of the Botanical Society of India and the Indian Society of Genetics and Plant
Breeding. Dr.&nbsp;Gadwal has been one of our non-executive directors since March&nbsp;15, 1999. Dr.&nbsp;Gadwal
also serves as a consultant and advisor to agricultural research and development institutions such
as Maharashtra Hybrid Seeds Co. Ltd (MAHYCO)&nbsp;and MAHYCO Research Foundation. Presently, Dr.&nbsp;Gadwal
is the President of the Indian Society for Cotton Improvement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Mr.&nbsp;Vineet Jain </I>holds a Bachelor of Science degree and a degree in International Business
Administration &#151; Marketing. Mr.&nbsp;Jain has been our non-executive director since April&nbsp;14, 2001. He
also serves as the Managing Director of Bennett, Coleman &#038; Co. Ltd, and as the Chairman, <I>inter alia</I>
of Times Internet Ltd., Times of Money Ltd., Bharat Nidhi Ltd. Worldwide Media Ltd and Times Global
Broadcasting Co. Ltd. He is also on the boards of Times Infotainment Media Ltd., The Press Trust of
India Ltd., Times Journal India Private Ltd. and Times Centre for Media Studies. Mr.&nbsp;Jain is a
nominee of the Bennett Coleman Group.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Mr.&nbsp;Keki Mistry </I>holds a Bachelor of Commerce degree in Advanced Accountancy and Auditing and is
also a Chartered Accountant. He was actively involved in setting up several HDFC group companies,
including HDFC Bank. Mr.&nbsp;Mistry had been deputed on consultancy assignments for the Commonwealth
Development Corporation to Thailand, Mauritius, Caribbean Islands and Jamaica. He has also worked
as a consultant for the Mauritius Housing Company and for the Asian Development Bank. Mr.&nbsp;Mistry is
the Managing Director of HDFC Ltd. and the Chairman of GRUH Finance Ltd. and Intelenet Global
Services Private Ltd. He serves as director of, inter alia HDFC Developers Ltd., HDFC Chubb General
Insurance Company Ltd., HDFC Trustee Company Ltd., HDFC Standard Life Insurance Co. Ltd.,
Infrastructure Leasing &#038; Financial Services Ltd., Sun Pharmaceutical Industries Ltd., Mahindra
Holidays &#038; Resorts India Ltd., The Great Eastern Shipping Co. Ltd., NexGen Publishing Ltd., India
Value Fund Advisors Pvt. Ltd. Mr.&nbsp;Mistry is a member of the Investor Grievance Committee of HDFC
Limited and is a member of Share Transfer Committee of Infrastructure Leasing &#038; Financial Services
Limited. He is also a member of Audit Committee of HDFC Standard Life Insurance Company Limited,
HDFC Chubb General Insurance Company Limited (Chairman), HDFC Trustee Company Limited, GRUH Finance
Limited, Infrastructure Leasing &#038; Financial Services Limited, Sun Pharmaceutical Industries Limited
(Chairman).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Mrs.&nbsp;Renu Karnad </I>is a law graduate and also holds a Master&#146;s degree in Economics from Delhi
University. Mrs.&nbsp;Karnad is an executive director of HDFC Ltd. She is a director, inter alia of HDFC
Asset Management Co. Ltd, GRUH Finance Ltd, HDFC Realty Ltd, Credit Information Bureau (India) Ltd,
Feedback Ventures Ltd, HDFC Chubb General Insurance Company Ltd, Mother Dairy Fruits &#038; Vegetables
Ltd, Ascendas Pte Ltd, Singapore, ICI India Ltd, Home Loan Services India Private Limited, Egyptian
Housing Finance Company (EHFC)&nbsp;S.A.E. and Intelenet Global Services Private Limited. She is a
member of Compensation/Remuneration Committee of GRUH Finance Limited and Credit Information Bureau
(India)
</DIV>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->85<!-- /Folio -->


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Ltd. She is a member of Audit Committee of HDFC Chubb General Insurance Company Limited, Credit
Information Bureau (India) Ltd and ICI India Limited.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Mr.&nbsp;Arvind Pande </I>holds a Bachelor of Science degree from Allahabad University and a BA (Hons.) and
MA (Economics) degrees from Cambridge University, U.K. He started his career in Indian
Administrative Services and has held various positions in the government of India. He was a Joint
Secretary to the Prime Minister of India for Economics, Science and Technology issues. He was a
director of the department of Economic Affairs in the Ministry of Finance, Government of India and
has dealt with World Bank aided projects. He was the Chairman and Chief Executive Officer of The
Steel Authority of India Ltd. Mr.&nbsp;Pande is a director, inter alia of Sandhar Technologies Ltd,
IVRCL Infrastructure &#038; Projects Ltd, Visa Steel Ltd, Assets Care Enterprise Ltd and Era
Constructions (India) Ltd. Mr.&nbsp;Pande is Chairman of Audit Committee of IVRCL Infrastructure and
Projects Limited.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Mr.&nbsp;Bobby Parikh </I>is a Chartered Accountant and has specialized in the areas of Tax and Business
Advisory Services with extensive experience in advising clients across a range of industries. Mr.
Parikh is a member of various trade and business associations and their committees. He is also on
the advisory/executive boards of certain non-government and non-profit organizations. Mr.&nbsp;Parikh
was the Country Managing Partner of Arthur Anderson &#038; Co. and until recently, the Chief Executive
Officer of Ernst &#038; Young Private Ltd in India. He is currently the Managing Partner of M/s BMR &#038;
Associates. Mr.&nbsp;Bobby Parikh is an &#147;audit committee financial expert&#148; under U.S. regulations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Mr.&nbsp;Ashim Samanta </I>holds a Bachelor of Commerce degree from University of Bombay and has wide
experience in business for nearly 26&nbsp;years. He possesses vast experience in the field of bulk drugs
and pharmaceutical formulations. He is a director of Samanta Organics Private Limited for the last
16&nbsp;years. He is a partner of a firm which manages mid-sized poultry farms. Mr.&nbsp;Samanta has also
been engaged in setting up and running of film editing and dubbing studio.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following are brief biographies of our existing executive officers:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Mr.&nbsp;A. Rajan </I>holds a Bachelor of Science degree. He has over 26&nbsp;years of experience in various
aspects of operations in banking. He was part of the core management team that set up the bank, as
its Head of Operations, and was responsible for creating the Operations team and detailed Operating
Procedures. Afterwards, he was also the CEO of Flexcel International Private Ltd for three years.
He is now once again the Head &#151; Operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Mr.&nbsp;Abhay Aima </I>is a graduate of the National Defence Academy. Mr.&nbsp;Aima is currently our Head,
Equities, Private Banking and Third Party Products.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Mr.&nbsp;Bharat Shah </I>holds a Bachelor of Science degree from Bombay University and a Higher National
Diploma in Applied Chemistry from London University. He serves as our Head, Depositary Services and
Merchant Services. Mr.&nbsp;Shah also serves as a non-executive director of Computer Age Management
Services Private Ltd, HDFC Securities Ltd and Atlas Documentary Facilitators Company Private Ltd.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Mr.&nbsp;C. N. Ram </I>holds a Bachelor of Technology Degree in Electrical Engineering from the Indian
Institute of Technology and a Postgraduate Diploma in Management from the Indian Institute of
Management. Mr.&nbsp;Ram has served as Head, Information Technology since July&nbsp;1994. In addition, he
also serves as a director on the boards of a number of companies, including our affiliates,
SolutionNET India Private Ltd, Flexcel International Private Ltd, Softcell Technologies Ltd and
HDFC Securities Ltd.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Mr.&nbsp;G. Subramanian </I>holds a Bachelor of Science degree in Chemistry from Madras Christian College
and is a Certified Associate of the Indian Institute of Bankers. Mr.&nbsp;Subramanian has been the Head,
Audit, Compliance, Vigilance and Service Quality since January&nbsp;1995. Prior to that, Mr.&nbsp;Subramanian
was deputy General Manager of the RBI. Mr.&nbsp;Subramanian also serves as a director on the Board of
Directors of Computer Age Management Services Private Ltd.
</DIV>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->86<!-- /Folio -->

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Mr.&nbsp;Harish Engineer </I>holds a Bachelor of Science degree in Physics and Chemistry and a diploma in
Business Management. Since the resignation of Mr.&nbsp;Samir Bhatia, Mr.&nbsp;Engineer also monitors the
Corporate Banking activities. Mr.&nbsp;Engineer presently is the Head, Wholesale Banking.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Mr.&nbsp;Paresh Sukthankar </I>holds a Bachelor of Commerce degree and Master in Management Studies from
Bombay University. Mr.&nbsp;Sukthankar has held the position of Head, Credit and Market Risk since
September&nbsp;1994 and since December&nbsp;1999 also supervises the Human Resources function.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Mr.&nbsp;Samir Bhatia </I>holds a Bachelor of Commerce degree from the University of Bombay, a Cost
Accountancy Qualification from the Institute of Cost and Works Accountants of India and a Chartered
Accountancy Qualification from the Institute of Chartered Accountants of India. He most recently
served as our Head, Corporate Banking, and previously served as our Regional Head, Corporate
Banking in various regions of India since September&nbsp;1994. Mr Samir Bhatia resigned from the
services of the bank as of July&nbsp;31, 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Mr.&nbsp;Sudhir Joshi </I>holds a Bachelor of Science degree in Chemistry from the University of Pune and is
a Certified Associate of the Indian Institute of Bankers. Mr.&nbsp;Joshi has held the position of Head,
Treasury since April&nbsp;2000. He was Head, Financial Investment Group for a brief period between
February&nbsp;2000 and March&nbsp;2000. From June&nbsp;1995 until joining us, Mr.&nbsp;Joshi served as executive vice
president, treasury, of Times Bank Ltd. At present, he is the Chairman of the Fixed Income Money
Market and Derivatives Association of India and on the Board of the Clearing Corporation of India
Ltd.
</DIV>
 <DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Mr.&nbsp;Vinod G. Yennemadi </I>holds a Bachelor of Commerce degree and is also a Fellow of the Institute of
Chartered Accountants of India and an Associate of the Institute of Chartered Accountants in
England and Wales. Mr.&nbsp;Yennemadi has been the Head, Finance, Administration, Legal, and Secretarial
since April&nbsp;1994. In addition, Mr.&nbsp;Yennemadi serves as a director of Softcell Technologies Ltd,
HDFC Securities Ltd, SolutionNET India Private Ltd, Atlas Documentary Facilitators Company Private
Ltd and Flexcel International Private Ltd.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Corporate Governance</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Audit And Compliance Committee:</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Audit and Compliance Committee of the Bank is chaired by Mr.&nbsp;Bobby Parikh. The other members
of the Committee are, Mr.&nbsp;Arvind Pande, Dr.&nbsp;V. R. Gadwal and Mr.&nbsp;Ashim Samanta. All the members of
the Audit Committee are independent directors and Mr.&nbsp;Bobby Parikh is an Audit Committee financial
expert.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the year, the Committee held six meetings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The responsibilities of the Audit Committee are in accordance with clause 49 of the Listing
Agreement entered into with the Stock Exchanges in India as well as applicable U.S. law
requirements and inter alia includes the following:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right"><FONT style="font-family: Wingdings">&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Overseeing the Bank&#146;s financial reporting process and ensuring correct, adequate and credible disclosure of financial
information;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">

    <TD width="3%" nowrap align="right"><FONT style="font-family: Wingdings">&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Recommending appointment and removal of external auditors and fixing of their fees;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right"><FONT style="font-family: Wingdings">&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Reviewing with management the annual financial statements before submission to the Board with special emphasis on
accounting policies and practices, compliance with accounting standards and other legal requirements concerning
financial statements;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">

    <TD width="3%" nowrap align="right"><FONT style="font-family: Wingdings">&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Reviewing the adequacy of the Audit and Compliance function, including their policies, procedures, techniques and other
regulatory requirements. and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right"><FONT style="font-family: Wingdings">&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any other terms of reference as may be included from time to time in clause 49 of the listing agreement
</TD>
</TR>
</TABLE>
</DIV></DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->87<!-- /Folio -->
<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Anil Ahuja and Mr.&nbsp;Ranjan Kapur ceased to be members of the Committee with effect from June&nbsp;17,
2005 and March&nbsp;29, 2006 respectively. Mr.&nbsp;Ashim Samanta was inducted as a member of the Committee
with effect from July&nbsp;14, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Compensation Committee:</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Compensation Committee reviews the overall compensation structure and policies of the Bank with
a view to attract, retain and motivate employees, consider grant of stock options to employees,
reviewing compensation levels of the Bank&#146;s employees vis-a-vis other banks and industry in
general.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank&#146;s compensation policy is to provide a fair and consistent basis for motivating and
rewarding employees appropriately according to their job /role size, performance, contribution,
skill, and competence.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Committee consists of Mr.&nbsp;Jagdish Capoor, Mr.&nbsp;Bobby Parikh, and Dr.&nbsp;Venkat Rao Gadwal. Mr.&nbsp;Anil
Ahuja and Mr.&nbsp;Ranjan Kapur ceased to be members of the committee with effect from. June&nbsp;17, 2005
and March&nbsp;29, 2006 respectively. Mr.&nbsp;Bobby Parikh was inducted as a member of the Committee with
effect from July&nbsp;14, 2005. The Committee is chaired by Mr.&nbsp;Jagdish Capoor. All the members of the
Committee other than Mr.&nbsp;Capoor are independent directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the year the Committee held four meetings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Investors&#146; Grievance (Share) Committee:</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Investors&#146; Grievance (Share) Committee approves and monitors transfers, transmissions,
splitting and consolidation of shares and bonds issued by the Bank and allotment of shares to the
employees pursuant to Employees Stock Option Scheme. The Committee also monitors redressal of
complaints from shareholders relating to transfer of shares, non-receipt of Annual Reports,
dividends etc.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Committee consists of Mr.&nbsp;Jagdish Capoor and Mr.&nbsp;Aditya Puri.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Committee is chaired by Mr.&nbsp;Jagdish Capoor and met thirteen times during the year. The powers
to approve share transfers and dematerialisation requests have been delegated to executives of the
Bank to avoid delays that may arise due to non-availability of the members of the Committee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As on March&nbsp;31, 2006, 36 instruments of transfer of shares were pending and since then the same
have been processed. The details of the share transfers are reported to the Board of Directors from
time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the year, the Bank received 218 complaints from shareholders, which have been attended to.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Risk Monitoring Committee:</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Risk Monitoring Committee is formed as per the guidelines of the Reserve Bank of India on the
Asset Liability Management/Risk Management Systems. The Committee develops Bank&#146;s credit and market
risk polices and procedures, verifies adherence to various risk parameters and prudential limits
for treasury operations and reviews its risk monitoring system. The committee also ensures that the
Bank&#146;s credit exposure to any one group or industry does not exceed the internally set limits and
that the risk is prudentially diversified.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Committee consists of Mr.&nbsp;Bobby Parikh, Mr.&nbsp;Aditya Puri and Mrs.&nbsp;Renu Karnad and is chaired by
Mr.&nbsp;Bobby Parikh.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Committee met five times during the year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Anil Ahuja ceased to be the member of the Committee with effect from 17th June, 2005. Mr.&nbsp;Bobby
Parikh was inducted as a member of the Committee with effect from July&nbsp;14, 2005.
</DIV>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->88<!-- /Folio -->

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Credit Approval Committee:</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Credit Approval Committee approves credit exposures, which are beyond the powers delegated to
executives of the Bank. This facilitates quick response to the needs of the customers and speedy
disbursement of loans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Committee comprises Mr.&nbsp;Jagdish Capoor, Mr.&nbsp;Aditya Puri, Mr.&nbsp;Keki Mistry and Mr.&nbsp;Bobby Parikh.
The Committee is chaired by Mr.&nbsp;Jagdish Capoor and met three times during the year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Premises Committee:</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Premises Committee approves purchases and leasing of premises for the use of Bank&#146;s branches,
back offices, ATMs and residence of executives in accordance with the guidelines laid down by the
Board. The Committee consists of Dr.&nbsp;Venkat Rao Gadwal, Mr.&nbsp;Aditya Puri and Mr.&nbsp;Ashim Samanta. Mr.
Ranjan Kapur has resigned with effect from March&nbsp;29, 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Committee is chaired by Dr.&nbsp;V. R. Gadwal and met five times during the year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Nomination Committee:</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank has constituted a Nomination Committee for recommending the appointment of
independent/non-executive directors on the Board of the Bank. The Nomination Committee scrutinizes
the nominations for independent/non&#150;executive directors with reference to their qualifications and
experience. For identifying &#145;Fit and Proper&#146; persons, the Committee adopts the following criteria
to assess competency of the persons nominated: Academic qualifications, previous experience and
track record; and integrity of the candidates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For assessing the integrity and suitability, features like criminal records, financial position,
civil actions undertaken to pursue personal debts, refusal of admission to and expulsion from
professional bodies, sanctions applied by regulators or similar bodies and previous questionable
business practices are considered.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The members of the Committee are Mr.&nbsp;Arvind Pande, Dr.&nbsp;V. R. Gadwal and Mr.&nbsp;Ashim Samanta. All the
members of the Committee are independent directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Two meetings of the Committee were held during the year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Anil Ahuja and Mr.&nbsp;Ranjan Kapur have ceased to be the members of the Committee with effect from
June&nbsp;17, 2005 and March&nbsp;29, 2006 respecively. Mr.&nbsp;Ashim Samanta was inducted as a member of the
Committee with effect from July&nbsp;14, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Fraud Monitoring Committee:</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the directives of the RBI to all commercial banks, the Bank has constituted a Fraud
Monitoring Committee on April&nbsp;16, 2004, exclusively dedicated to the monitoring and following up of
cases of fraud involving amounts of Rs. 1 crore and more. The objective of this Committee is the
effective detection of frauds and immediate reporting thereof to regulatory and enforcement
agencies and actions taken against the perpetrators of frauds. The terms of reference of the
Committee are as under:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right"><FONT style="font-family: Wingdings">&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Identify the systems lacunae, if any, that facilitated perpetration of the fraud and put in place measures to plug the
same;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right"><FONT style="font-family: Wingdings">&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Identify the reasons for delay in detection, if any, reporting to top management of the Bank and RBI;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right"><FONT style="font-family: Wingdings">&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Monitor progress of CBI / police investigation and recovery position;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right"><FONT style="font-family: Wingdings">&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Ensure that staff accountability is examined at all levels in all the cases of frauds and staff side action, if
required, is completed quickly without loss of time;</TD>
</TR>

</TABLE>
</DIV></DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->89<!-- /Folio -->

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right"><FONT style="font-family: Wingdings">&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Review the efficacy of the remedial action taken to prevent recurrence of frauds, such as strengthening of internal
controls;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right"><FONT style="font-family: Wingdings">&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Put in place other measures as may be considered relevant to strengthen preventive measures against frauds.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The members of the Committee are Mr.&nbsp;Jagdish Capoor, Mr.&nbsp;Aditya Puri, Mr.&nbsp;Keki Mistry, Mr.&nbsp;Bobby
Parikh and Mr.&nbsp;Arvind Pande. The Committee is chaired by Mr.&nbsp;Jagdish Capoor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Four meetings of the Committee were held during the year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Customer Service Committee</I></B><I>:</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank has constituted a Customer Service Committee on October&nbsp;21, 2004 pursuant to the
guidelines issued by the RBI. The Committee monitors the quality of services rendered to the
customers and also ensures implementation of directives received from RBI in this regard. The
Committee would formulate a comprehensive deposit policy, incorporating the issues arising out of
death of a depositor for operations of his account, the product approval process, the annual survey
of depositor satisfaction and the triennial audit of such services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The members of the Committee are Mr.&nbsp;Keki Mistry, Dr.&nbsp;Venkat Rao Gadwal and Mr.&nbsp;Arvind Pande.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Four meetings of the Committee were held during the year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Committees of Executives</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have also constituted committees of executives that meet frequently to discuss and decide on
management of assets and liabilities, as well as matters including other operations and personnel,
and other operational issues.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Borrowing Powers of Directors</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The shareholders of the Bank, at the Annual General Meeting of the Bank held on May&nbsp;26, 2004 passed
a Special Resolution pursuant to Section&nbsp;293(1)(d) of the Companies Act, authorising the Board of
Directors of the Bank to borrow, for the purpose of business of the Bank, such sum or sums of
monies as they may deem necessary, notwithstanding the fact that the monies borrowed and the monies
to be borrowed from time to time (apart from acceptances of deposits of money from public repayable
on demand or otherwise and withdrawable by cheque, draft, order or otherwise and/or temporary loans
obtained in the ordinary course of business from banks, whether in India or outside India) will
exceed the aggregate of the paid up capital of the Bank and its free reserves (i.e. to say reserves
not set apart for any specific purpose), subject to the condition that the total outstanding amount
of such borrowings shall not exceed Rs. 50&nbsp;billion over and above the aggregate of the paid up
capital of the Bank and its free reserves at any time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The terms on which the Board of Directors may borrow funds may include the lender&#146;s right to
appoint directors, the allotment of shares to certain public financial institutions, and with prior
shareholder and regulatory approval the allotment of shares to other entities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Compensation of Directors and Executive Officers</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The compensation packages of our Chairman and Managing Director are approved by the
shareholders and the RBI on the recommendation of the Board of Directors. During fiscal 2006, our
Chairman received a salary of Rs. 900,000. Effective April&nbsp;1, 2004, our Managing
Director receives an annual salary of Rs. 7,200,000 and other allowances and emoluments as have
been approved by the shareholders and the RBI. At our 12th Annual General Meeting held on May&nbsp;30,
2006, the shareholders also approved the reappointment of our Managing Director for a further
three-year period, with effect from April&nbsp;1, 2007. Further, in the said annual general meeting the
shareholders have approved the revised salary/compensation
</DIV>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->90<!-- /Folio -->

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">and allowances of the Managing Director to Rs. 896,750 per month with effect from. April&nbsp;1, 2006,
Rs. 1,088,485 per month with effect from April&nbsp;1, 2007 and Rs. 1,280,085 per month with effect from
April&nbsp;1, 2008. For the fiscal year ended March&nbsp;31, 2006, the aggregate amount of compensation paid
to all of our executive officers was approximately Rs. 116.0&nbsp;million. For the fiscal year ended
March&nbsp;31, 2006, the aggregate amount accrued by us to provide pension, retirement or similar
benefits for our Managing Director and executive officers was approximately Rs. 7.0&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under our organizational documents, each director, except the Managing Director, is entitled to
sitting fees for attending each meeting of the Board of Directors or of a board committee. The
amount of sitting fees is set by the board from time to time in accordance with limitations
prescribed by the Companies Act or the government of India. At the board meeting held on January
10, 2006, it was decided that remuneration for attending board meetings and committee meetings
would be Rs. 20,000 per meeting, except in case of meetings of the Share Committee, for which the
remuneration is Rs. 5,000 per meeting. We reimburse directors for travel and related expenses in
connection with board and committee meetings and related matters.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other than our Chairman and Managing Director, none of our directors has a service contract with
us.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Loans to Executive Officers</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans to our executive officers are granted in the normal course within the Bank&#146;s scheme, as is
the case in respect of other employees of the Bank. This is within the provisions of the local
regulations.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Largest Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Interest rate</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Outstanding since</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Outstanding as of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>as of March</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>March 31, 2001</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>March 31, 2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>31, 2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Nature of Loan</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11"><B>(In Millions, expect percentages)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Abhay Aima</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.3</TD>
    <TD align="left" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" nowrap>Housing Loan</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" nowrap>  Personal Loan</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Aditya Puri</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">  Housing Loan</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">A. Rajan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">  Housing Loan</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">  Personal Loan</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bharat Shah</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">  Housing Loan</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">  Personal Loan</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">C. N. Ram</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">  Housing Loan</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">  Personal Loan</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">  Auto Loan</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em">
    <TD><DIV style="margin-left:15px; text-indent:-15px">G. Subramanian</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">  Housing Loan</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">  Personal Loan</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">H. Srikrishnan*</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">  Housing Loan</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">  Personal Loan</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Harish Engineer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">  Housing Loan</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">  Personal Loan</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Neeraj Swaroop*</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">  Housing Loan</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">  Personal Loan</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Paresh Sukthankar</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">  Housing Loan</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Samir Bhatia*</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">  Housing Loan</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">  Personal Loan</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Sudhir Joshi</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">  Housing Loan</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Uma Krishnan*</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">  Housing Loan</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->91<!-- /Folio -->
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Largest Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Interest rate</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Outstanding since</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Outstanding as of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>as of March</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>March 31, 2001</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>March 31, 2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>31, 2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Nature of Loan</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11"><B>(In Millions, expect percentages)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">  Personal Loan</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">  <FONT style="white-space: nowrap">Consumer Loan</FONT></TD>
</TR>
<TR valign="bottom" style="padding-top: 0em">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Vinod Yennemadi</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">  Housing Loan</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">  Personal Loan</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>63.6</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>35.8</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>




<DIV style="margin-top: 3pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>No longer an Executive Officer of the Bank.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Employees Stock Option Scheme</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our shareholders approved plan &#147;A-(year 2000)&#148; in January of 2000, plan &#147;B-(year 2003)&#148; in June of
2003 and plan &#147;C-(year 2005)&#148; in June of 2005 for the issuance of stock options to employees and to
the directors of the Bank. Under the plan &#147;A&#148;, the option price is set as the average of the daily
closing prices on Bombay Stock Exchange Ltd. during the 60&nbsp;days preceding the grant date. Under the
plan &#147;B&#148; and &#147;C&#148;, the option price is set as the closing prices on the business day preceding the
grant date on whichever stock exchange in India has the highest trading volume for our shares
during the two weeks preceding the date of grant. Our Compensation Committee has issued options
under these plans on seven separate occasions since January&nbsp;2000. The options granted on those
occasions vest at the rate of 30%, 30% and 40% on each of the three successive anniversaries
following the date of grant, subject to standard vesting conditions. In fiscal 2006, 3.27&nbsp;million
options were exercised, resulting in an increase in our paid-up capital of Rs. 32.7&nbsp;million and
share premium by Rs. 1,020.3&nbsp;million. As of March&nbsp;31, 2006, 13.6&nbsp;million options were outstanding.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Other Compensation</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All employees, including our Managing Director and officers, receive the benefit of our gratuity
and provident fund retirement schemes. Our superannuation fund covers all employees at manager
level or above, including our Managing Director. Our gratuity fund, required under Indian law, is a
defined benefit plan that, upon retirement, death while employed or termination of employment, pays
a lump sum equivalent to 15&nbsp;days&#146; salary for each completed year of service. The superannuation
fund is a retirement plan under which we annually contribute 13% (15% for the Managing Director) of
the eligible employee&#146;s annual salary to the administrator of the fund. Under the provident fund,
required by Indian law, both we and the employee contribute monthly at a determined rate (currently
12% of the employee&#146;s salary) to a fund set up by us, which is administered by a board of trustees.
For employees whose basic salary is less than Rs. 6,500 per month, a portion (currently 8.33% of
the employee&#146;s salary) of the employer&#146;s contribution is transferred to a fund administered by the
government in accordance with the Provident Fund Act. We retain liability for future payments under
the gratuity fund, but not under the superannuation or provident funds.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Controls and procedures</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Evaluation of disclosure controls and procedures</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of the end of the period covered by this report, our principal executive officer and principal
financial officer conducted an evaluation pursuant to Rule&nbsp;13a-15 promulgated under the Securities
Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;), of the effectiveness of the design and
operation of our disclosure controls and procedures. Based on this evaluation, our principal
executive officer and principal financial officer concluded that, as of the date of their
evaluation, such disclosure controls and procedures were effective to provide reasonable assurance
that information required to be disclosed by us in the reports we file or submit under the Exchange
Act is recorded, processed, summarized and reported within the time periods specified in the rules
and forms of the Securities and Exchange Commission.
</DIV>
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->92<!-- /Folio -->

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Changes in internal controls</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There were no significant changes in our internal controls or in other factors that could
materially or are reasonably likely to materially affect these controls subsequent to the date of
their evaluation. There were no significant deficiencies or material weaknesses, and therefore
there were no corrective actions taken.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Audit committee financial expert</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Bobby Parikh joined our Board of Directors on January&nbsp;9, 2004. On March&nbsp;26, 2004 Mr.&nbsp;Parikh was
inducted as a member of the audit committee. Our Board of Directors has determined Mr.&nbsp;Bobby Parikh
as an Audit Committee financial expert as defined in item 401(h) of Regulation&nbsp;S-K, and is
independent pursuant to applicable SEC rules.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Code of ethics</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On July&nbsp;14, 2004, our Audit Committee adopted a written code of ethics applicable to the Managing
Director (Chief Executive Officer), the Chief Financial Officer and Executive Officers of the Bank.
We believe the code constitutes a &#147;code of ethics&#148; as defined in Item&nbsp;16B of Form 20-F. We will
provide a copy of such code of ethics to any person without change upon request. Request may be
made by writing to investor.helpdesk@hdfcbank.com
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On July&nbsp;14, 2004, our Audit Committee also adopted a Whistle Blower Policy wherein it has
established procedures for receiving, retaining and treating complaints received, and procedures
for the confidential, anonymous submission by employees of complaints regarding questionable
accounting or auditing matters, conduct which results in a violation of law by HDFC Bank or in a
substantial mismanagement of Bank&#146;s resources. Under this policy our employees are encouraged to
report questionable accounting matters, any reporting of fraudulent financial information to our
shareholders, the government or the financial markets, or any conduct that results in a violation
of law by HDFC Bank to our management (on an anonymous basis, if employees so desire). Likewise,
under this policy, we have prohibited discrimination, retaliation or harassment of any kind against
any employee who, based on the employee&#146;s reasonable belief that such conduct or practices have
occurred or are occurring, reports that information or participates in an investigation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Principal Accountant Fees and Services</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth for the fiscal years indicated the fees paid to our principal
accountant and its associated entities for various services they provided us in these periods.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 0px solid #000000"><B>Fiscal year ended</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Type of Service</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>March 31, 2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>March 31, 2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Description of Services</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7">( in millions)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Audit services
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">Rs.&nbsp;</TD>
    <TD align="right" valign="top">3.9</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">Rs.&nbsp;</TD>
    <TD align="right" valign="top">12.0</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Audit of financial statements</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Audit-related
services
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5.2</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Services related to review of
financial statements and due
diligence</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Tax services
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&#151;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.5</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Tax audit, tax returns, tax
processing, tax filing and
advisory services</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Other services
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.2</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.9</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Statutory certifications,
quality registrar, work permit
related services and other
advisory services</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" nowrap valign="top" align="left" style="border-top: 1px solid #000000">&nbsp; &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">Rs.&nbsp;</TD>
    <TD align="right" valign="top">5.2</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">Rs.&nbsp;</TD>
    <TD align="right" valign="top">18.6</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" nowrap valign="top" align="left" style="border-top: 1px solid #000000">&nbsp; &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our audit committee charter requires us to take the prior approval of our Audit Committee on every
occasion we engage our principal accountants or their associated entities to provide us any
non-audit
</DIV>
</DIV>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->93<!-- /Folio -->

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">services. We disclose to our audit committee the nature of services that are provided and the fees
to be paid for the services. All of the non-audit services provided by our principal accountants or
their associated entities in the previous two fiscal years have been pre-approved by our Audit
Committee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Compliance with NYSE Listing Standards on Corporate Governance</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are incorporated under the Indian Companies Act, 1956, and our equity shares are listed on the
major stock exchanges in India. Our corporate governance framework is in compliance with the Indian
Companies Act, 1956, the regulations and guidelines of SEBI and the requirements of the listing
agreements entered into with the Indian stock exchanges. We also have ADSs listed on the New York
Stock Exchange (the &#147;NYSE&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On November&nbsp;4, 2003, the Securities and Exchange Commission (the &#147;SEC&#148;) approved new rules proposed
by the NYSE intended to strengthen corporate governance standards for listed companies. These new
corporate governance-listing standards supplement the corporate governance reforms already adopted
by the SEC pursuant to the Sarbanes-Oxley Act of 2002.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;303A.11 of the NYSE Corporate Governance Standards requires listed companies that are
foreign private issuers to disclose the significant ways in which their corporate governance
practices differ from those followed by U.S. companies under the NYSE Corporate Governance
Standards. The table below sets forth the differences between the rules applicable to U.S.
companies under the NYSE Corporate Governance Standards and HDFC Bank&#146;s practices under Indian law.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>NYSE rule applicable to</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>U.S. listed companies</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Indian law and HDFC Bank&#146;s practice</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Companies must have a majority
of independent directors.
(NYSE Corporate Governance
Standard 303A.01)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Under Indian law, if the chairman of the
Board of Directors is not an executive
officer of the company, at least one-third
of the directors should be independent. If
the chairman is an executive officer, at
least 50% of the company&#146;s directors
should be independent. The chairman of our
Board of Directors is not an executive
officer and 4 out of 9 members of the
board are independent.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Certain heightened standards
apply to &#147;independent
directors&#148; (NYSE Corporate
Governance Standard 303A.02)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Under Indian law, a director is
&#147;independent&#148; so long as he or she does
not have any material pecuniary
relationship or transactions (apart from
director&#146;s remuneration) with the company,
its promoters, its management or its
subsidiaries, which in the judgment of the
board may affect the independence or
judgment of the director. We apply the
Indian definition of &#147;independent&#148;.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Non-management directors must
meet at regularly scheduled
executive sessions without
management. (NYSE Corporate
Governance Standard 303A.03)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Under Indian law, there is no requirement
for such sessions. HDFC Bank does not
regularly hold such meetings.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Companies must have a
nominating/corporate
governance committee composed
entirely of independent
directors. (NYSE Corporate
Governance Standard 303A.04)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Under Indian law, a nominating/corporate
governance committee is not required.
However, HDFC Bank has a Nomination
Committee that is responsible for
recommending the appointment of
independent/non-</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->94<!-- /Folio -->
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>NYSE rule applicable to</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>U.S. listed companies</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Indian law and HDFC Bank&#146;s practice</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">executive directors to the Board of Directors. The Nomination
Committee during the year was composed of four non-executive directors, all of whom
were independent.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">The nominating/corporate
governance committee must have
a written charter that
addresses certain specific
committee purposes and
responsibilities and provides
for an annual performance
evaluation of the committee.
(NYSE Corporate Governance
Standard 303A.04)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Since Indian law does not require a
nominating/corporate governance committee,
it also does not require a charter for
such a committee. As a result, we have no
such charter.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Companies must have a
compensation committee
composed entirely of
independent directors. (NYSE
Corporate Governance Standard
303A.05)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Under Indian law, a company&#146;s Board of
Directors sets the compensation for
non-executive directors. Non-mandatory
Indian law recommends that companies
establish a remuneration committee
composed of non-executive directors and an
independent chairman to determine the
compensation of executive directors. The
Compensation Committee during the year was
composed of four non-executive directors,
all of whom were independent</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">The compensation committee
must have a written charter
that addresses certain
specific purposes and
responsibilities of the
committee and provides for an
annual performance evaluation
of the committee. (NYSE
Corporate Governance Standard
303A.05)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Indian law does not require that the
compensation committee have a charter.
HDFC Bank does not have such a charter.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Companies must have an audit
committee that satisfies the
independence requirements of
Rule&nbsp;10A-3 under the Exchange
Act and the requirements of
NYSE Corporate Governance
Standard 303A.02. (NYSE
Corporate Governance Standards
303A.06 and 303A.07)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">An audit committee is required under
Indian Law. The Audit Committee during the
year was composed of five non-executive
directors, all of whom were independent
</TD>
</TR>





<TR><TD style="font-size: 10pt">&nbsp;</TD></TR>


<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
The audit committee must have
a written charter that
addresses certain specific
purposes and responsibilities
of the committee, provides for
an annual performance
evaluation of the committee
and sets forth certain minimum
duties and responsibilities.
(NYSE Corporate Governance
Standard 303A.07)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
HDFC Bank has a written audit committee
charter that provides for specific
purposes and responsibilities.</TD>
</TR>








<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Companies must adopt and
disclose corporate governance
guidelines. (NYSE Corporate
Governance Standard 303A.09)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Indian law does not require the adoption
and disclosure of corporate governance
guidelines. However, information with
respect to corporate governance can be
found in our annual report for 2005-2006
under the heading &#147;Corporate Governance&#148;.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Companies must adopt and
disclose a code of
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">As required by SEBI regulations, HDFC Bank has</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

</DIV>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->95<!-- /Folio -->
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>NYSE rule applicable to</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>U.S. listed companies</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Indian law and HDFC Bank&#146;s practice</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">business
conduct and ethics for
directors, officers and
employees, and promptly
disclose any waivers of the
code for directors or
executive officers. (NYSE
Corporate Governance Standard
303A.10)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">adopted a code governing trading in
the company&#146;s securities by insiders. In
addition, HDFC Bank has adopted a Code of
Ethics for the Managing Director, CFO and
Senior Management of the company.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Memorandum and Articles of Association</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our main objects are to carry on banking activity and other related activities. Our objects and
purposes can be found in clauses A and B of the Articles.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the Articles, a director may not vote, participate in discussions or be counted for purposes
of a quorum with respect to any decision relating to whether we will enter into any contract or
arrangement if the director is directly or indirectly interested in such contract or arrangement.
The Board of Directors may not hold meetings in the absence of a quorum. Pursuant to the Companies
Act, our directors have the power to borrow money for business purposes only with the consent of
the shareholders (with certain limited exceptions).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sections&nbsp;172 through 187 of the Articles set forth certain rights and restrictions relating to
dividend distributions. One of these restrictions is that dividends may be approved only at a
general meeting of shareholders, but in no event in an amount greater than the amount recommended
by the Board of Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to the Companies Act, profits of a company are divisible among shareholders in proportion
to the amount of capital paid up on the shares held by them respectively. In the event of
liquidation, surplus will be distributed in proportion to the capital paid up or which ought to
have been paid up on the shares held by shareholders respectively at the time of commencement of
the winding up. The Board of Directors may make calls on shareholders in respect of all moneys
unpaid on the shares held by them and not by the conditions of allotment thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The rights and privileges of any class of shareholders may not be modified without the approval of
three-fourths of the issued shares of that class or the sanction of a special resolution passed at
a separate meeting of the holders of the issued shares of that class.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The annual general meeting shall be called for a time during business hours at our registered
office or at some other place within Mumbai as the Board of Directors may determine. The notice of
the meeting shall specify it as the annual general meeting. The board may also call an
extraordinary meeting, and if there is not a quorum of directors within India, any director or two
shareholders may call such a meeting. The
</DIV>
</DIV>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->96<!-- /Folio -->


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Board of Directors is required to call an extraordinary
meeting upon the requisition of a set number of shareholders, as set forth in the Companies Act.
</DIV>
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->97<!-- /Folio -->
<DIV align="left">
<A name="113"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PRINCIPAL SHAREHOLDERS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table contains information relating to the beneficial ownership of our equity
shares as of March&nbsp;31, 2006 by:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right"><FONT style="font-family: Wingdings">&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>each person or group of affiliated persons known by us to
beneficially own 5.0% or more of our equity shares; and</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right"><FONT style="font-family: Wingdings">&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our individual directors and officers</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beneficial ownership is determined in accordance with the rules of the SEC and includes voting and
investment power with respect to equity shares. Unless otherwise indicated, the persons in the
table have sole voting and sole investment control with respect to all equity shares beneficially
owned. All shares issued in India have the same voting rights. We have
not issued different class of securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We were founded by HDFC Limited, the leading housing finance company in India. As of March&nbsp;31,
2006, HDFC Limited, together with its subsidiaries, held an aggregate of 22.0% of our equity
shares. Under the Indian Banking Regulation&nbsp;Act, no person holding equity shares in a banking
company can vote more than 10.0% of the outstanding equity shares.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Percentage of</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Total Equity</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Number of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Shares</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Equity Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Outstanding</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">HDFC group</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">68,861,000</TD>
    <TD nowrap>(1)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">22.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bennett Coleman group</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">16,192,408</TD>
    <TD nowrap>(2)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">5.2</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Directors and executive
officers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><DIV align="left"><DIV style="font-size: 3pt; margin-top: 13pt; width: 18%; border-bottom: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>



<DIV style="margin-top: 3pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">1)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes: 38,860,000 equity shares held directly by HDFC Limited, 30,000,000 equity
shares held by HDFC Investments Limited and 1,000 equity shares held by HDFC Holdings
Limited. HDFC Investments Limited and HDFC Holdings Limited are
controlled by HDFC Limited.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">2)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes: 8,849,929 equity shares held by Bennett Coleman &#038; Company Limited,
2,486,956 equity shares held by Dharmayug Investments Limited and 4,855,523 equity shares
held by other Bennett Coleman group entities.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(*)</TD>
    <TD>&nbsp;</TD>
    <TD>None of our directors or executive officers individually holds 1% or more of our total equity
shares outstanding.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The ADS
are represented by underlying equity shares. As on March 31, 2006, 60,338,247
Indian equity shares are represented by ADSs and
constitute 19.3% of the Bank&#146;s capital. In our books only the
Depositary i.e. J.P. Morgan Chase Bank is the shareholder with respect to equity shares underlying ADSs. We are
unable to estimate the number of record holders of our shares in the United
States.</div>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->98<!-- /Folio -->




<DIV align="left">
<A name="114"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>RELATED PARTY TRANSACTIONS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a summary, for the period as stated, of transactions we have engaged in with
our promoter and principal shareholder, HDFC Limited and its subsidiaries and other related
parties, including those in which we or our management have a significant equity interest. Figures
herein reflecting our equity interests exclude shares held by our Employees Welfare Trust, an
independent trust established for the benefit of our employees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All transactions with HDFC group companies and the other related parties listed below are on terms
that we believe are as favorable to us as those that could be obtained from a non-affiliated third
party in an arm&#146;s-length transaction. In addition, our banking license from the RBI stipulates that
we can only transact business with HDFC Limited and its affiliates on an arm&#146;s-length basis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>HDFC Securities Ltd (&#147;HSL&#148;)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We acquired an equity stake in HSL, which provides brokering services through the internet and
other channels. On September&nbsp;28, 2005, we increased our stake in HSL from 29.5 % to 55% by paying
Rs. 191.3&nbsp;million to HDFC Ltd. (An independent professional accounting firm determined the
valuation for acquisition price). Consequently HSL has become our subsidiary since that date. As of
March&nbsp;31, 2006, the book value of our investment in HSL was Rs. 200.1&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HDFC group
companies (including us) own an aggregate of 67.2% of HSL. In fiscal 2006, we paid Rs. 0.2
million for sales assistance provided by HSL and received Rs. 5.1&nbsp;million as a reimbursement of
expenses incurred for HSL. In fiscal 2006, we earned Rs. 33.8 million
from HSL towards services rendered by us and as rent and maintenance
charges for the area sublet to HSL by us. An amount of Rs. 22.7&nbsp;million was receivable from HSL as of March&nbsp;31,
2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>HDFC Limited</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Housing Loans</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We participate in the home loan business by selling loans provided by HDFC Limited. Under this
arrangement HDFC Limited approves and disburses the loans, which are booked in the books of HDFC
Limited, and we are paid a sourcing fee. Under the arrangement, HDFC Limited offer us up to 70% of
the fully disbursed home loans sourced under the arrangement through the issue of mortgage-backed
PTCs; the balance is retained by HDFC Limited. We purchase the
mortgage-backed PTCs at the
underlying home loan yields less a fee paid to HDFC Limited for administration and servicing of the
loans. A portion of the home loans also qualifies for our directed lending requirement. We earned
Rs. 239.3&nbsp;million from HDFC Limited in fiscal 2006 as fees for selling these loans and other
services rendered. An amount of Rs. 29.2&nbsp;million was receivable from HDFC Limited as of March&nbsp;31,
2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Property</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have facilities located on five properties owned or leased by HDFC Limited. In fiscal 2006, we
paid an aggregate of Rs. 6.8&nbsp;million as rental fees, maintenance and service charges to HDFC
Limited for use of these properties. We believe that we pay market rates for these properties. As
of March&nbsp;31, 2006, HDFC Limited held a deposit of Rs. 0.2&nbsp;million that we have paid to secure these
leased properties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Capital Payments</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the
year we paid HDFC Ltd. Rs. 191.3&nbsp;million for the purchase of an additional 25.5% of the
shares of HSL.
</DIV>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="right" style="font-size: 10pt"><!-- Folio -->99<!-- /Folio -->

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>HDFC Standard Life Insurance Company Ltd (&#147;HDFC Standard Life&#148;)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In fiscal
2006, we contributed Rs. 21.8&nbsp;million to a defined benefit plan
managed by HDFC Standard Life to cover gratuity of our employees. In the same period, we received fees
and commissions from HDFC Standard Life aggregating Rs. 881.4&nbsp;million for the sale of insurance
policies and other services to our customers. As of March&nbsp;31,
2006, commission amounting to Rs. 29.2&nbsp;million was receivable from HDFC Standard Life.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>HDFC Asset Management Company Ltd (&#147;HDFC AMC&#148;)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We retained HDFC AMC to invest our funds primarily in debt instruments up to an amount
approved by our Board of Directors. This arrangement was up to June, 2006. In fiscal 2006, we
paid Rs. 3.3&nbsp;million as rent to HDFC AMC. We have placed a security deposit of Rs. 1.7&nbsp;million with
HDFC AMC to secure leased property. During fiscal 2006, we received Rs. 234.3&nbsp;million in fees from
HDFC AMC for distribution of units of mutual funds. The amount of our investment outstanding as of
March&nbsp;31, 2006 was Rs. 3.4&nbsp;billion. We paid Rs. 0.7&nbsp;million to HDFC AMC for professional fees
during fiscal 2006. As of March 31, 2006, commission amounting to Rs
22.8 million was receivable from HDFC AMC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>HDFC Chubb General Insurance Company Ltd (&#147;HDFC Chubb&#148;)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We paid Rs. 10.6&nbsp;million to HDFC Chubb towards insurance premiums in fiscal 2006. A deposit of Rs.
0.1&nbsp;million was kept with HDFC Chubb as of March&nbsp;31, 2006. We received fees and commissions from
HDFC Chubb aggregating Rs. 20.3&nbsp;million for sale of insurance policies to our customers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Atlas Documentary Facilitators Company Private Ltd (&#147;ADFC&#148;)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ADFC specializes in back-office processing. We regularly transact business with ADFC. In fiscal
2006, we paid ADFC Rs. 616.8&nbsp;million for back-office processing services. We earned Rs. 53.8
million from ADFC as rent for premises leased and towards other
services in fiscal 2006. As of March&nbsp;31, 2006, we had provided
a security deposit amounting to Rs. 40.0&nbsp;million to ADFC for the various services provided by ADFC
and an amount of Rs. 72.5&nbsp;million was payable for such services. As of that date, we retained an
equity investment of Rs. 0.2&nbsp;million in ADFC, which represents 29.0% of the share capital of ADFC.
Members of our management team as well as other employees own an
aggregate of 45.3% of the equity
shares of ADFC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>HBL Global Private Ltd (&#147;HBL Global&#148;)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HBL Global is a subsidiary of ADFC and provides us with direct sales support for certain of our
products. HBL Global was paid a net fee of Rs. 1,917.9&nbsp;million for the year ended March&nbsp;31, 2006.
As of March&nbsp;31, 2006 we had provided a security deposit of Rs. 90.1&nbsp;million for the services
provided by HBL Global. An amount of Rs. 33.7&nbsp;million was payable to HBL Global as of that date. As
of March&nbsp;31, 2006, an amount of Rs. 223.1&nbsp;million was outstanding as temporary advance paid in
respect of services to be provided by HBL Global. We earned Rs. 12.6&nbsp;million as rent for premises
occupied by HBL Global during fiscal 2006. We do not presently have any direct investment in HBL
Global.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Flexcel International Private Ltd (&#147;Flexcel&#148;)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Flexcel, a
company in which we have invested Rs. 15.3&nbsp;million, for a 29.5% equity stake, provides
application services to smaller banks. Because our share of total
accumulated losses incurred by Flexcel exceeds the investment value,
we have written off our investment. A loan amount of Rs. 0.5&nbsp;million was outstanding in our
books as of March&nbsp;31, 2006. Interest received on the same during the year was Rs. 0.1&nbsp;million.
During fiscal 2006 we received Rs. 0.05&nbsp;million as dividend from
Flexcel. The loan bears an interest rate of 9% per annum and the
maximum amount of loan outstanding during fiscal 2006 was Rs. 2.5
million.
</DIV>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->100<!-- /Folio -->

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Salisbury Investments Private Ltd</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have paid a security deposit of Rs. 35.0&nbsp;million and in fiscal 2006, we paid rent of Rs. 2.2
million for the residential accommodation of our Managing Director, to Salisbury Investments
Private Ltd, in which the relatives of the Managing Director hold a stake. The value of the
security deposit and rent is based on an independent assessment by a professional property
valuation expert.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Other Strategic Investments</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We frequently partner with other HDFC group companies when making strategic investments. We
currently have three strategic investments in which HDFC group companies are co-investors. Without
the prior approval of the RBI, we cannot hold more than a 30% equity stake in another company. The
following is a list of strategic investments made by us and HDFC group companies:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">HDFC Bank</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">HDFC Bank</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Total HDFC</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Company</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Type of Business</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Investment</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Ownership</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Group ownership</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan="3">(In millions)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Computer Age
Management Services
Private Limited
(&#147;CAMS&#148;)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Unit capital
accounting and
transfer agency
services
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">Rs.&nbsp;</TD>
    <TD align="right" valign="bottom">6.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="bottom">19.0</TD>
    <TD nowrap valign="bottom">%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="bottom">49.0</TD>
    <TD nowrap valign="bottom">%</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">SolutionNET India
Private
Limited
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Information
technology
consulting and
services
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="bottom">7.6</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="bottom">19.0</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="bottom">50.0</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Softcell
Technologies
Limited
(&#147;Softcell&#148;)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Business-to-business
software services
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">Rs.&nbsp;</TD>
    <TD align="right" valign="bottom">26.0</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="bottom">12.0</TD>
    <TD nowrap valign="bottom">%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="bottom">26.0</TD>
    <TD nowrap valign="bottom">%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We routinely conduct business with some of the companies in which we have made strategic
investments. In fiscal 2006, we paid CAMS Rs. 4.1&nbsp;million for
mutual fund back office processing services and Softcell Rs. 8.4&nbsp;million for
providing software-related services to us. During fiscal 2006, we received Rs. 5.7&nbsp;million from
CAMS and  Rs. 0.04&nbsp;million from SolutionNET as dividend. During fiscal 2006, we have paid Rs. 72.4
million toward the purchase of fixed assets and Rs. 2.0&nbsp;million as capital advance to Softcell.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have entered into normal banking transactions with some of the above parties and we believe all
such transactions to be at arm&#146;s length.
</DIV>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->101<!-- /Folio -->
<DIV align="left">
<A name="115"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TAXATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Indian Taxation of the ADSs</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a summary of the principal Indian tax consequences for non-resident investors of
the ADSs and the equity shares issuable on conversion of the ADSs. The summary is based on the
taxation law and practice in force and is subject to change. Further, it only addresses the tax
consequences for persons who are non-resident as defined in the Indian Income Tax Act, who acquire
ADSs or equity shares (upon conversion) and who hold such ADSs or equity shares (upon conversion)
as capital assets, and does not address the tax consequences which may be relevant to other classes
of non-resident investors, including dealers. The summary assumes that the person continues to
remain a non-resident when income by way of interest, dividends and capital gains is earned.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>EACH INVESTOR IS ADVISED TO CONSULT THEIR TAX ADVISOR ABOUT THE PARTICULAR TAX CONSEQUENCES
APPLICABLE ON INVESTMENTS IN THE ADSs.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following discussion describes the material Indian income tax and stamp duty consequences of
the purchase, ownership and disposal of the ADSs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This summary is based on the provisions of Section&nbsp;115AC and other applicable provisions of the
Income Tax Act, 1961 (43 of 1961) (the &#147;Indian Income Tax Act&#148;) and The Issue of Foreign Currency
Convertible Bonds and Ordinary Shares (through Depositary Receipt Mechanism) Scheme, 1993
promulgated by the government of India (the &#147;Depositary Receipt Scheme&#148;) (together the &#147;Section
115AC Regime&#148;). The offer is in accordance with the 115AC Regime, and non-resident investors of the
ADSs will therefore have the benefit of tax concessions available under the 115AC Regime subject to
the fulfillment of conditions of that section. This summary is not intended to constitute a
complete analysis of the tax consequences under Indian law of the acquisition, ownership and sale
of the ADSs (or shares upon conversion) by non-resident investors. Investors should therefore
consult their tax advisers about the tax consequences of such acquisition, ownership and sale
including, specifically, tax consequences under Indian law, the laws of the jurisdiction of their
residence, any tax treaty between India and their country of residence or the United States, the
country of residence of the overseas depositary bank (the &#147;Depositary&#148;), as applicable and, in
particular, the applicable provisions of the Income Tax Act and the Section&nbsp;115AC Regime. The
Indian Income Tax Act is amended every year by the Finance Act of the relevant year. Some or all of
the tax consequences of the 115AC Regime may be modified or amended by future amendments to the
Income Tax Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Taxation of Distributions</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon withdrawal of equity shares from the depositary facility, dividends paid to such non-resident
holder are not presently taxable. However, we must pay a &#147;dividend distribution tax&#148; at the rate of
12.5% (plus a surcharge of 10% and an add-on tax at the rate of 2% of the total dividend
distribution tax and surcharge) on the total amount distributed as dividend. In India, dividends
are not taxable in the hands of the recipient. Distribution to non-residents of bonus ADSs or bonus
shares or rights to subscribe for equity shares (for the purposes of this section, &#147;Rights&#148;) made
with respect to ADSs or shares are not subject to Indian tax.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Taxation on Acquisition of ADSs or Shares Upon Conversion or in Exchange for ADSs</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The acquisition of shares in exchange for ADSs does not constitute a taxable event for Indian
income tax purposes. Such exchange may, however, give rise to stamp duty as described below under
&#147;Stamp Duty&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Taxation of Capital Gains</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The transfer between non-resident investors outside India of ADSs falling within the purview of
Section&nbsp;115AC is not subject to income tax in India on capital gains therefrom. It is unclear
whether capital
</DIV>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->102<!-- /Folio -->


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">gains derived from the sale of rights by a non-resident investor to another non-resident investor
will be subject to tax liability in India. This would depend on the view taken by Indian tax
authorities with respect to the status of the rights being offered under the ADSs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital gains arising to a non-resident investor on the transfer of the equity shares received upon
conversion of the ADSs (whether in India or outside India to a non-resident investor) will be
subject to income tax under the provisions of the Indian Income Tax Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective October&nbsp;1, 2004, any gain realized on the sale of listed equity shares held for more than
12&nbsp;months to an Indian resident, or to a non-resident investor in India will not be subject to
Indian capital gains tax if the Securities Transaction Tax (&#147;STT&#148;) has been paid on the
transaction. The STT will be levied on and collected by a domestic stock exchange on which shares
are sold at the rate of 0.1% from the seller and at the rate of 0.1% from the purchaser on the
total price at which the equity shares are sold.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any gain realized on the sale of equity shares to an Indian resident whether in India or outside
India or to a non-resident in India on which no STT has been paid, will be subject to Indian
capital gains tax at the rate of 10% plus applicable surcharge on income tax and add-on tax at the
rate of 2% of the sale of shares. For the purpose of computing capital
gains tax on the sale of the equity shares under the Section&nbsp;115AC Regime, the cost of acquisition
of equity shares received in exchange for ADSs will be determined on the basis of the prevailing
price of the equity shares on The Stock Exchange, Mumbai or the National Stock Exchange as of the
date on which the depositary gives notice to its custodian for the delivery of such equity shares
upon redemption of the ADSs, while the cost of acquisition of shares directly converted from ADSs
will be determined on the basis of the price prevailing on The Stock Exchange, Mumbai or the
National Stock Exchange on the date of conversion into shares. A non-resident holder&#146;s holding
period (for purpose of determining the applicable Indian capital gains tax rate) in respect of
equity shares received in exchange for ADSs commences on the date of the advice of withdrawal of
such equity shares by the relevant Depositary to its custodian.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital gain realized in respect of equity shares held (calculated in the manner set forth in the
prior paragraph) for 12&nbsp;months or less (short-term gain) on which STT is paid in the manner and
rates set out above, is subject to tax at the rate of 10% plus applicable surcharge on income tax
and an add-on tax at the rate of 2%. In the event that no STT is paid, short-term gain is subject
to tax at variable rates with a maximum rate of 40% plus applicable surcharge on income tax and
add-on tax at the rate of 2%. The actual rate of tax on short-term gains depends on a number of
factors, including the legal status of the non-resident holder and the type of income chargeable in
India. The provisions of the Agreement for Avoidance of Double Taxation entered into by the
government of India with the country of residence of the non-resident investor will be applicable
to the extent they are more beneficial to the non-resident investor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Tax Deduction at Source</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax on long-term and short-term capital gains is to be deducted at source by the person paying for
equity shares, in accordance with the relevant provisions of the Indian Income Tax Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Capital Losses</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither Section&nbsp;115AC nor the Depositary Receipt Scheme deals with capital losses arising on a
transfer of equity shares in India. In general terms, losses arising from a transfer of a capital
asset in India can only be set off against capital gains on transfer of another capital asset.
Furthermore, a long-term capital loss can be set off only against a long-term capital gain. To the
extent that losses are not absorbed in the year of transfer, they may be carried forward for a
period of eight assessment years immediately succeeding the assessment year for which the loss was
first determined by the assessing authority and may be set off against the capital gains assessable
for such subsequent assessment years. In order to set off capital losses as above, the non-resident
investor would be required to file appropriate and timely tax returns in India and undergo the
customary assessment procedures. However, long-term capital loss on sale of equity shares
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">being chargeable to STT will not be allowed to set off or carried forward for set off against any
capital gains.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Tax Treaties</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividend income is currently not subject to tax in India in the hands of the holder of the equity
shares. If any equity shares are held by a non-resident investor following withdrawal thereof from
the depositary facility under the Deposit Agreement, the double taxation treaty, if any, entered
into by India with the country of residence of such non-resident investor will be applicable to
taxation with respect to any capital gain arising from transfer of such equity shares or the ADSs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;However, during the period of fiduciary ownership of equity shares in the hands of the Depositary,
the provisions of the Double Taxation Avoidance Agreement entered into by the government of India
with the United States will be applicable in the matter of taxation of capital gains, if any, on
ADSs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Stamp Duty</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There is no stamp duty on the sale or transfer of ADSs outside India.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The transfer of ordinary shares in physical form would be subject to Indian stamp duty at the rate
of 0.25% of the market value of the ordinary shares on the trade date, and such stamp duty
customarily is borne by the transferee, i.e. the purchaser. In order to register a transfer of
equity shares in physical form, it is necessary to present a stamped deed of transfer. However,
since our equity shares are compulsorily deliverable in dematerialized form (except for trades of
up to 500 equity shares which may be delivered in physical form) there would be no stamp duty
payable in India on transfer of these equity shares in dematerialized form.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Other Taxes</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At present, there is no wealth tax, gift tax or inheritance taxes, which may apply to the ADSs or
the underlying shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Service Tax</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Brokerage or commissions paid to stockbrokers in connection with the sale or purchase of shares
listed on a recognized stock exchange in India are subject to a service tax of 12% (plus add-on tax
at the rate of 2%) ad valorem. The stockbroker is responsible for collecting the service tax and
paying it to the relevant authority.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>United States Tax</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following summary describes the material United States federal income tax consequences relating
to an investment in our equity shares or ADSs in this offering as of the date hereof. This summary
is based on the Internal Revenue Code of 1986, as amended, its legislative history, existing final,
temporary and proposed Treasury Regulations, rulings and judicial decisions, all as currently in
effect and all of which are subject to prospective and retroactive rulings and changes. We will not
seek a ruling from the Internal Revenue Service with regard to the United States federal income tax
treatment relating to investment in our equity shares or ADSs and, therefore, there can be no
assurance that the IRS will agree with the conclusions set forth below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This summary does not purport to address all United States federal income tax consequences that may
be relevant to a particular investor and you are urged to consult your own tax advisor regarding
your specific tax situation. The summary applies only to holders who hold equity shares or ADSs as
&#147;capital assets&#148;
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(generally, property held for investment) under the United States Internal Revenue Code, and does
not address the tax consequences that may be relevant to investors in special tax situations
including, for example:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">

<TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&nbsp;&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>insurance companies;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">

    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&nbsp;&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>regulated investment companies and real estate investment trusts;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&nbsp;&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>tax-exempt organizations;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&nbsp;&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>broker-dealers;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&nbsp;&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>traders in securities that elect to mark-to-market;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&nbsp;&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>banks or other financial institutions;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&nbsp;&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>investors whose functional currency is not the United States dollar;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">

<TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&nbsp;&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>United States expatriates;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&nbsp;&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>investors that hold our equity shares or ADSs as part of a hedge, straddle or conversion transaction;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&nbsp;&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>holders that purchase or otherwise acquire equity shares or ADSs other than through this offering; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&nbsp;&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>holders that own, directly, indirectly or constructively 10.0% or more of our total combined voting stock.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Further, this summary does not address the alternative minimum tax consequences of an investment in
equity shares or ADSs or the indirect consequences to holders of equity interests in entities that
own our equity shares or ADSs. In addition, this summary does not address the state, local and
foreign tax consequences of an investment in our equity shares or ADSs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You should consult your own tax advisor regarding the United States federal, state, local and
foreign and other tax consequences of purchasing, owning and disposing of our equity shares or ADSs
in your particular circumstances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Taxation of U.S. Holders</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You are a &#147;U.S. Holder&#148; if you are a beneficial owner of equity shares or ADSs and you are for
United States federal income tax purposes:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&nbsp;&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a citizen or resident of the United States;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&nbsp;&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a corporation, or any other entity taxable as a corporation,
created or organized in or under the laws of the United States or
any state thereof, including the District of Columbia;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&nbsp;&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>an estate the income of which is subject to United States federal
income tax regardless of its source; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&nbsp;&#167;</FONT> </TD>
<td>&nbsp;</td>
    <TD>a trust if a court within the United States is able to exercise
primary supervision over its administration and one or more United
States persons have the authority to control all substantial
decisions of the trust, or if the trust has made a valid election
to be treated as a United States person.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a partnership holds equity shares or ADSs, the tax treatment of a partner will generally depend
upon the status of the partner and upon the activities of the partnership. Partners of partnerships
holding our equity shares or ADSs should consult their own tax advisors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A &#147;Non-U.S. Holder&#148; is a beneficial owner of equity shares or ADSs that is not a U.S. Holder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For United States federal income tax purposes, a U.S. Holder of an ADS will generally be treated as
the owner of the equity shares represented by the ADS. Accordingly, no gain or loss will be
recognized upon the exchange of an ADS for equity shares. A U.S. Holder&#146;s tax basis in the equity
shares will be the same as the tax basis in the ADS surrendered therefore, and the holding period
in the equity shares will include the period during which the holder held the surrendered ADS.
However, the United States Treasury has expressed concerns that parties to whom depositary shares
are pre-released may be taking actions that are inconsistent with the claiming of foreign tax
credits by the holders of ADSs. Accordingly, the analysis of the creditability of Indian taxes paid
with respect to the ADSs could be affected by future actions that may be taken by the United States
Treasury.
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Distributions on Equity Shares or ADSs</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash distributions made by us to a U.S. Holder with respect to equity shares or ADSs (including
amounts withheld in respect of any Indian withholding taxes) generally will be taxable to such U.S.
Holder as ordinary dividend income when such U.S. Holder receives the distribution, actually or
constructively, to the extent paid out of our current or accumulated earnings and profits (as
determined for United States federal income tax purposes). If these dividends constitute qualified
dividend income (&#147;QDI&#148;), individual U.S. Holders of our equity shares or ADSs will generally pay
tax on such dividends received before 2011 at a maximum rate of 15%, provided certain holding
period requirements and other conditions are satisfied. Assuming we are not a passive foreign
investment company (as discussed below), or foreign investment company, dividends paid by us will
be QDI if we are a qualified foreign corporation (&#147;QFC&#148;) at the time the dividends are paid. We
believe that we are currently, and will continue to be, a QFC so as to allow all dividends paid by
us to be QDI for United States federal income tax purposes. Distributions in excess of our current
or accumulated earnings and profits will be treated first as a non-taxable return of capital
reducing such U.S. Holder&#146;s tax basis in the equity shares or ADSs. Any distribution in excess of
such tax basis will be treated as capital gain and will be either long-term or short-term capital
gain depending upon whether the U.S. Holder held the equity shares or ADSs for more than one year.
Dividends paid by us generally will not be eligible for the dividends-received deduction available
to certain United States corporate shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to certain limitations, a U.S. Holder may be entitled to a credit or deduction against its
U.S. federal income taxes for the amount of any Indian taxes that are withheld from dividend
distributions made to such U.S. Holder. The decision to claim either a credit or deduction must be
made annually, and will apply to all foreign taxes paid by the U.S. Holder to any foreign country
or U.S. possession with respect to the applicable tax year. The limitation on foreign taxes
eligible for credit is calculated separately with respect to specific classes of income. For tax
years beginning before January&nbsp;1, 2007, income received with respect to the equity shares or ADSs
will be treated as foreign source income and generally will constitute &#147;passive income&#148; or, in the
case of certain holders, &#147;financial services income&#148; for United States foreign tax credit
limitation purposes, and for tax years beginning after December&nbsp;31, 2006, will be treated as
&#147;passive category income&#148; or &#147;general category income&#148; for United States foreign tax credit
limitation purposes. The rules regarding the availability of foreign tax credits are complex and
U.S. Holders may be subject to various limitations on the amount of foreign tax credits that are
available. We therefore urge you to consult your own tax advisor regarding the availability of the
foreign tax credit under your particular circumstances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The amount of any cash distribution paid in Indian rupees will equal the U.S. dollar value of the
distribution, calculated by reference to the exchange rate in effect at the time the distribution
is received by the depositary (in the case of ADSs) or by the U.S. Holder (in the case of equity
shares held directly by such U.S. Holder), regardless of whether the payment is in fact converted
to U.S. dollars at that time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Generally, a U.S. Holder should not recognize any foreign currency gain or loss if such Indian
rupees are converted into U.S. dollars on the date received. If the Indian rupees are not converted
into U.S. dollars on the date of receipt, however, gain or loss may be recognized upon a subsequent
sale or other disposition of the Indian rupees. Such foreign currency gain or loss, if any, will be
United States source ordinary income or loss.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Sale or Exchange of Equity Shares or ADSs</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A U.S. Holder will generally recognize capital gain or loss upon the sale, exchange or other
disposition of the equity shares or ADSs measured by the difference between the U.S. dollar value
of the amount received and the U.S. Holder&#146;s tax basis (determined in U.S. dollars) in the equity
shares or ADSs. Any gain or loss will be long-term capital gain or loss if the equity shares or
ADSs have been held for more than one year and will generally be United States source gain or loss.
Your ability to deduct capital losses is subject to limitations. Under certain circumstances
described under &#147;Indian Tax &#151; Taxation on Sale of Equity
Shares or ADSs&#148;, you may be subject to
Indian tax upon the disposition of equity shares or ADSs. In such circumstances and subject to
applicable limitations (and the relief provided by an applicable income tax
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">treaty), you may be
able to credit the Indian tax against your United States federal income tax liability. You should
consult your tax advisor regarding the availability of the foreign tax credit under your particular
circumstances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For cash-basis U.S. Holders who receive foreign currency in connection with a sale or other taxable
disposition of equity shares or ADSs, the amount realized will be based upon the United States
dollar value of the foreign currency received with respect to such equity shares or ADSs as
determined on the settlement date of such sale or other taxable disposition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrual-basis U.S. Holders may elect the same treatment required of cash-basis taxpayers with
respect to a sale or other taxable disposition of equity shares or ADSs, provided that the election
is applied consistently from year to year. Such election cannot be changed without the consent of
the United States Internal Revenue Service. Accrual-basis U.S. Holders that do not elect to be
treated as cash-basis taxpayers (pursuant to the Treasury Regulations applicable to foreign
currency transactions) for this purpose may have a foreign currency gain or loss for United States
federal income tax purposes because of differences between the United States dollar value of the
foreign currency received prevailing on the date of such sale or other taxable disposition and the
value prevailing on the date of payment. Any such currency gain or loss will generally be treated
as ordinary income or loss that is United States source, in addition to the gain or loss, if any,
recognized on the sale or other taxable disposition of equity shares or ADSs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Passive Foreign Investment Company Rules</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Holders generally will be subject to a special, adverse tax regime that would differ in
certain respects from the tax treatment described above if we are, or were to become, a passive
foreign investment company (&#147;PFIC&#148;) for United States federal income tax purposes. Although the
determination of whether a corporation is a PFIC is made annually and thus may be subject to
change, we do not believe that we are, nor do we expect to become, a PFIC for United States federal
income tax purposes. However, the matter is not free from doubt. We urge you to consult your own
tax advisor regarding the adverse tax consequences of owning the equity shares or ADSs of a PFIC
and making certain elections designed to lessen those adverse consequences.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Taxation of Non-U.S. Holders</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Distributions on Equity Shares or ADSs</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-U.S. Holders generally will not be subject to United States federal income or withholding tax
on dividends received from us with respect to equity shares or ADSs, unless such income is
considered effectively connected with the Non-U.S. Holder&#146;s conduct of a United States trade or
business (and, if required by an applicable income tax treaty, the income is attributable to a permanent
establishment maintained in the United States).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Sale or Exchange of Equity Shares or ADSs</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-U.S. Holders generally will not be subject to United States federal income tax on any gain
realized upon the sale, exchange or other disposition of equity shares or ADSs unless:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&nbsp;&nbsp;&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>such gain is considered effectively connected with the Non-U.S.
Holder&#146;s conduct of a United States trade or business (and, if
required by an applicable income tax treaty, the income is
attributable to a permanent establishment maintained in the United
States); or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&nbsp;&nbsp;&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if such Non-U.S. Holder is an individual that is present in the
United States for 183&nbsp;days or more during the taxable year of the
disposition and certain other conditions are met.</TD>
</TR>

</TABLE>
</DIV></DIV>
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<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, if you are a corporate Non-U.S. Holder, any effectively connected dividend income or
gain (subject to certain adjustments) may be subject to an additional branch profits tax at a rate
of 30% (or such lower rate as may be specified by an applicable income tax treaty).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Backup Withholding and Information Reporting</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In general, dividends on equity shares or ADSs, and payments of the proceeds of a sale, exchange or
other disposition of equity shares or ADSs, paid to a U.S. Holder within the United States or
through certain United States-related financial intermediaries are subject to information reporting
and may be subject to backup withholding at a rate currently equal to 28% unless the holder:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&nbsp;&nbsp;&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>is a corporation or other exempt recipient; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&nbsp;&nbsp;&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>provides an accurate taxpayer identification number and
certifies that no loss of exemption from backup withholding
has occurred.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-U.S. Holders generally are not subject to information reporting or backup withholding. However,
such holders may be required to provide a certification to establish its non-U.S. status in
connection with payments received within the United States or through certain U.S.-related
financial intermediaries.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You generally will be allowed a credit of the amount of any backup withholding against your United
States federal income tax liability or you may obtain a refund of any amounts withheld under the
backup withholding rules that exceed your income tax liability by filing a refund claim with the
United States Internal Revenue Service.
</DIV>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->108<!-- /Folio -->
<DIV align="left">
<A name="116"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SUPERVISION AND REGULATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The main legislation governing commercial banks in India is the Banking Regulation&nbsp;Act, 1949.
Other important legislation includes the Reserve Bank of India Act, the Negotiable Instruments Act,
the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act
(&#147;SARFESI&#148;) and the Banker&#146;s Books Evidence Act. Additionally, the RBI, from time to time, issues
guidelines to be followed by the banks, under the various provisions of the Banking Regulation&nbsp;Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>RBI Regulations</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The RBI is the central banking and monetary authority in India. Commercial banks in India are
required under the Banking Regulation&nbsp;Act to obtain a license from the RBI to carry on a banking
business in India. Before granting the license, the RBI must be satisfied that specific conditions
are complied with, including that (a)&nbsp;the bank has the ability to pay its present and future
depositors in full as their claims accrue; (b)&nbsp;the affairs of the bank will not be or are not
likely to be conducted in a manner detrimental to the interests of present or future depositors;
(c)&nbsp;the bank has adequate capital and earnings prospects; and (d)&nbsp;the public interest will be
served if the license is granted to the bank. The RBI can cancel the license if the bank fails to
meet the above conditions or if the bank ceases to carry on banking operations in India.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a licensed banking company, we are regulated and supervised by the RBI. The RBI requires us to
furnish statements and information relating to our business. It has issued guidelines for
commercial banks on recognition of income, classification of assets, maintenance of capital
adequacy and provisioning for non-performing assets. The RBI has set up a Board for Financial
Supervision, under the chairmanship of the Governor of the RBI. This Board is assisted by the
Department of Financial Supervision of the RBI in supervising commercial banks and financial
institutions. The appointment of the auditors of the banks is subject to the approval of the RBI.
The RBI can direct a special audit in the interest of the depositors or in the public interest.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Regulations Relating to the Opening of Branches</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The opening of new branches and shifting of existing branches of banks is governed by the
provisions of Section&nbsp;23 of the Banking Regulation&nbsp;Act, 1949. In terms of these provisions, banks
cannot, without the prior approval of the Reserve Bank of India (RBI), open a new place of business
in India or abroad or change, otherwise than within the same city, town or village, the location of
the existing place of business. Permission is granted based on factors such as the financial
condition and history of the company, its management, adequacy of capital and earning prospects and
the public interest. The RBI may cancel the license for violations of the conditions under which it
is granted. Under the banking license granted to us by the RBI, we are required to have at least
25% of our branches (excluding extension counters) located in rural/semi-urban areas. A rural area
is defined to have a population of less than 10,000. A semi-urban area is defined to have a
population of greater than 10,000 but less than 1,00,000. These population figures relate to the
latest census conducted by the Government of India at the time the branch is opened.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The former system of granting authorization for opening individual branches from time to time has
been replaced by a system of giving aggregated approvals, on an annual basis, through a
consultative and interactive process. Banks will discuss their medium-term expansion strategies and
plans with the RBI. The medium-term framework and the specific proposals would cover the opening,
closing and shifting of all categories of branches including the ATMs. Normally, the
authorizations/ approvals, given on an annual basis would be valid for one year, from the date of
communication.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With a need to induce enhanced competition in the banking sector at various locations, the RBI, in
its new framework, has identified the under-banked districts in various states. The RBI has
provided this list in order to facilitate banks to identify centers in the under-banked districts.
</DIV>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->109<!-- /Folio -->

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Capital Adequacy Requirements</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The RBI has promulgated minimum capital adequacy standards for banks based on the guidelines of the
Basel Committee on Banking Regulations and Supervisory Practices. Under these guidelines, we are
required to maintain a minimum ratio of capital to risk adjusted assets and off-balance sheet items
of 9.0%, at least half of which must be Tier 1 capital.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The capital funds of a bank are classified into Tier 1 and Tier 2 capital. Tier 1 capital, the core
capital, provides the most permanent and readily available support against unexpected losses. It
comprises paid-up capital and reserves consisting of any statutory reserves, free reserves and
capital reserve as defined in the Indian Income Tax Act, as reduced by items primarily comprising
equity investments in subsidiaries, intangible assets, deferred tax assets, gaps in provisioning
and losses in the current period and those brought forward from the previous period. Innovative
Perpetual Debt Instruments (IPDI)&nbsp;and Perpetual non-cumulative Preference shares have recently been
permitted by RBI for inclusion as Tier 1 capital.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tier 2 capital consists of undisclosed reserves, revaluation reserves (at a discount of 55%),
general provisions and loss reserves (allowed up to a maximum of 1.25% of weighted risk assets),
investment fluctuation reserve, hybrid debt capital instruments (which combine features of both
equity and debt securities), cumulative perpetual preference shares (which should be fully paid
up and should not contain clauses that permit redemption by the holder) and subordinated debt with
an initial maturity of not less than five years. Debt capital instruments (upper Tier 2 capital)
and redeemable cumulative preference shares have recently been permitted by RBI for inclusion as
Tier 2 capital. Any subordinated debt is subject to progressive discounts each year for
inclusion in Tier 2 capital and total subordinated debt considered Tier 2 capital cannot exceed 50%
of Tier 1 capital.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recently, RBI has issued detailed guidelines for securitization of standard assets, whereby credit
enhancements (comprising first loss and second loss facilities) given by an originator are required
to be deducted from its capital funds. The deduction from Tier 1 capital shall be capped at the
amount of capital that the bank would have been required to hold for the full value of the assets,
had they not been securitized. Securities issued by special purpose vehicles and
devolved / held by banks in excess of 10 per cent of the original amount of issue, including
secondary market purchases, are also required to be deducted from capital funds.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk adjusted assets and off-balance sheet items considered for determining the capital adequacy
ratio are the risk weighted total of certain funded and non-funded exposures. Degrees of credit
risk expressed as percentage weighting have been assigned to various balance sheet asset items and
conversion factors to off-balance sheet items. The value of each item is multiplied by the relevant
weight or conversion factor to produce risk-adjusted values of assets and off-balance-sheet items.
Financial guarantees are treated as similar to funded exposure and are subject to similar risk
weighting. The credit conversion factor for certain off-balance sheet items such as performance
bonds, bid bonds and standby letters of credit related to particular transactions is 50% while that
for short-term self liquidating trade-related contingencies such as documentary credits
collateralized by the underlying shipments is 20%. The risk weights have been increased by RBI in
the recent past in respect of certain items such as exposure to capital markets (125%), loans to
commercial real estate (125%), investment in mortgaged backed securities and other securitized
exposures to commercial real estate (150%), investment in venture capital funds (150%), consumer
credit including personal loans and credit cards (125%) and
investment in mortgage-backed
securities of residential assets of housing finance companies satisfying certain conditions (75%).
The aggregate risk weighted assets are taken into account for determining the capital adequacy
ratio. Banks are required to maintain capital charge for market risks on the trading books on the
lines of standardized duration method prescribed under the 1996 Amendment to the Capital Accord
issued by the Basel Committee on Banking Supervision.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The trading book for the purpose of these guidelines will include:
</DIV>


<P align="right" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">110
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&nbsp;&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>securities included under the HFT category;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&nbsp;&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>securities included under the AFS category;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&nbsp;&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>open positions in bullion;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&nbsp;&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>open foreign exchange position limits;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&nbsp;&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>trading positions in derivatives; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&nbsp;&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>derivatives entered into for hedging trading book exposures.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The RBI advised banks in its annual policy statement for 2004-2005 that banks should begin an
in-depth examination of the options that will be available under Basel II, draw a road map for
migration to Basel II and review the progress made thereof. The RBI has also issued draft
guidelines in February&nbsp;2005, for implementation of the new capital adequacy framework. In order to
maintain consistency and harmony with international standards, banks have been advised to adopt the
Standardized Approach for credit risk and Basic Indicator Approach for operational risk with effect
from March&nbsp;31, 2007. The Reserve Bank may consider allowing some banks to migrate to Internal
Rating Based (IRB)&nbsp;approach after developing adequate skills both in banks and at supervisory
levels.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Loan Loss Provisions and Non-Performing Assets</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The RBI has issued formal guidelines on recognition of income, classification of assets,
provisioning against assets and valuation of investments applicable to banks. These guidelines are
applied for the calculation of non-performing assets under Indian GAAP. The discussion of asset
quality in this document is generally under U.S. GAAP and the U.S. GAAP standards applied are set
forth in &#147;Selected Statistical Information&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The principal features of these RBI guidelines, which have been implemented with respect to our
loans, debentures, lease assets, bills and other credit substitutes, are set forth below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Non-Performing Assets</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A non-performing asset is an asset in respect of which any amount of interest or principal has
remained past due for more than one quarter, or in respect of which we believe that we will
otherwise not be able to collect such interest or principal.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Asset Classification</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assets are classified as described below:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&nbsp;&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Standard Assets. </I>Assets that do not have any problems or do not carry more than the normal risk attached
to the business</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&nbsp;&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Sub-Standard Assets. </I>Assets that are non-performing assets for a period not exceeding 12&nbsp;months</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&nbsp;&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Doubtful Assets. </I>Assets that are non-performing assets for 12&nbsp;months or more and have not been written
off, either wholly or partially</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&nbsp;&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Loss Assets. </I>Assets that are considered uncollectible and identified as a loss by us, the RBI or our
external auditors.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Renegotiated or rescheduled loans must have no past due amounts for one year after renegotiation or
rescheduling for the loan to be upgraded.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Provisioning and Write-Offs</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provisions are based on guidelines specific to the classification of the assets. The following
guidelines apply to the various asset classifications:
</DIV>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->111<!-- /Folio -->

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&nbsp;&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Standard Assets</I>. The RBI increased the general provisioning
requirement for standard advances from 0.25% to 0.40% in November
2005. Banks&#146; direct advances to agricultural and SME sectors have
been exempted from the additional provisioning requirement. This
is up to March&nbsp;2006.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&nbsp;&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Sub-Standard Assets</I>. A general provision of 10% on the total
outstanding is required without any allowance for ECGC guarantee
cover and securities available. The unsecured exposures, which are
identified as sub-standard, would attract an additional provision
of 10% i.e. a total of 20% on the outstanding balance.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&nbsp;&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Doubtful Assets</I>. A 100% specific provision is required to be taken
against the unsecured portion of the doubtful asset and charged
against income. The value assigned to the collateral securing a
loan is the amount reflected on the borrower&#146;s books or the
realizable value determined by third-party appraisers. In cases
where there is a secured portion of the asset, depending upon the
period for which the asset remains doubtful, an additional 20% to
50% provision of the loan outstanding is required to be made.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While the provisions as indicated above are mandatory, a higher provision in a loan account would
be required if the auditors considered it necessary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recently, the general provisioning required for personal loans, loans and advances qualifying as
capital market exposures, residential housing loans beyond Rs. 2&nbsp;million and commercial real estate
loans has been increased to 1.0% from the level of 0.40%. Also, provisions which are not made in
respect of specific non-performing assets or are made in excess of that required for standard
assets have been defined as floating provisions. The RBI has issued guidelines for creation and
utilization of the floating provisions. These provisions can be utilized only for contingencies
under extraordinary circumstances, as laid down by the Board of Directors, for making specific
provisions in impaired accounts after obtaining the board&#146;s approval and with the prior permission
of the RBI. Banks may also make specific provisions for advances higher than that required under
the current regulations, provided these are approved by the Board of Directors and consistently
adopted from year to year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Act Relating to Recovery of Non-Performing Assets</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a part of the financial sector reforms, the government of India promulgated SARFESI in 2002.
SARFESI provides banks and other lenders increased powers in the recovery of the collateral
underlying non-performing assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Guidelines on Purchase/Sale of Non-Performing Assets</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In order to increase the options available to banks for resolving their non- performing assets and
to develop a healthy secondary market for non-performing assets, where securitization companies and
reconstruction companies are not involved, the RBI has issued detailed guidelines in July&nbsp;2005 in
respect of procedures for purchase and sale of non-performing assets. The guidelines set forth
prudential norms that need to be complied with, in respect of valuation and pricing, asset
classification and provisioning, accounting of recoveries, norms on capital adequacy, exposure
norms and disclosure requirements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Guidelines on Securitization of Standard Assets</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The RBI has issued guidelines in February&nbsp;2006 on securitization of standard assets. The
regulatory framework provided in the guidelines, covers securitization of standard assets. The
guideline lists criteria for isolation of the assets sold as &#145;true sale&#146; for enabling the
transferred assets to be removed from the balance sheet of the seller in a securitization
structure. The guideline also set forth other regulatory norms relating to capital adequacy,
valuation, profit/loss on sale of assets, income recognition and provisioning as applicable to
originators and service providers like credit enhancers, liquidity support providers as well as
investors as also the accounting treatment for securitization transactions and disclosure norms
that are to be complied with. Some of these regulatory norms are given below:
</DIV>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->112<!-- /Folio -->

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><FONT style="font-family: Wingdings">&nbsp;&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Credit enhancements (comprising first loss and second loss facilities) given by an
originator are required to be deducted from its capital funds. The deduction from Tier 1
capital shall be capped at the amount of capital that the bank would have been required to
hold for the full value of the assets, had they not been securitized.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><FONT style="font-family: Wingdings">&nbsp;&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Securities issued by special purpose vehicles and devolved / held by banks in excess of
10 per cent of the original amount of issue, including secondary market purchases, are
also required to be deducted from capital funds.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><FONT style="font-family: Wingdings">&nbsp;&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Banks can sell assets to special purpose vehicles (SPVs) only on cash basis and the
sale consideration should be received not later than the transfer of the asset to the SPV.
Any profit or premium arising on account of sale should be amortised over the life
of the securities issued or to be issued by the SPV.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on sale needs to be accounted in the period in which the sale is effected. The securities
issued by the SPV shall not have any put options under the true sale criteria.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Regulations Relating to Making Loans</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The provisions of the Banking Regulation&nbsp;Act, 1949 govern making loans by banks in India. The RBI
issues directions covering the loan activities of banks. Some of the more important guidelines
include norms for bank lending to non-bank financial companies, guidelines on Banks benchmark
prime-lending rate (PLR), norms for loans against shares etc.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Directed Lending</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Priority Sector Lending</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The RBI has established guidelines requiring banks to lend a minimum of 40% of their net bank
credit (i.e. total domestic loans less marketable debt instruments and exemptions permitted by the
RBI from time to time) to specified sectors called priority sectors. Priority sectors include
small-scale industries, agricultural and agriculture-based sectors, food, housing, small business
enterprises and certain other priority sectors deemed &#147;weaker&#148; by the RBI.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&nbsp;&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The RBI also has set forth the minimum percentage of net bank credit that banks must direct
to specific priority sectors. The minimum percentage of net bank credit that banks must direct
to the agriculture sector is 18% and to weaker sectors is 10%.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any shortfall in the amount is required to be lent to the priority sectors may be required to be
deposited with developmental banks such as the National Bank for Agriculture and Rural Development
and the Small Industries Development Bank of India.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With a view to rationalizing the banks&#146; investments under priority sector lending and encouraging
banks to increasingly lend directly to the farmers/other priority sector borrowers, the RBI has
stipulated that the investments by banks in specified institutions shall not be eligible for
classification under priority sector lending. However this would be implemented in a phased manner
effective April&nbsp;1, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Export Credit</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The RBI also requires us to make loans to exporters at concessional rates of interest. This enables
exporters to have access to an internationally competitive financing option. Pursuant to existing
guidelines, 12% of our net bank credit is required to be in the form of export credit. We provide
export credit for pre-shipment and post-shipment requirements of exporter borrowers in rupees and
foreign currencies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Credit Exposure Limits</I>
</DIV>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->113<!-- /Folio -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a measure aimed at better risk management and avoidance of concentration of credit risk, the RBI
has prescribed credit exposure limits for banks in respect of their lending to individual borrowers
and borrower groups.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The RBI limits exposure to individual borrowers to not more than 15% of the capital funds of the
bank and limits exposure to a borrower group to not more than 40% of the capital funds of the bank.
In the case of infrastructure projects, such as power, telecommunications, road and port projects,
an additional exposure of up to 5% of capital funds is allowed in respect of individual borrowers
and up to 10 % in respect of group borrowers. Banks may, in exceptional circumstances, with the
approval of their boards of directors, consider enhancement of exposure to a borrower by further 5%
of capital funds. Banks would need to make appropriate disclosures in their annual financial
statements in respect of exposures where the banks had exceeded the prudential exposure limits
during the year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exposure is the aggregate of:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&nbsp;&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all approved fund-based limits or outstanding (whichever are higher);</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&nbsp;&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>approved non-fund-based limits, underwriting and similar commitments or outstanding, whichever is higher; and</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&nbsp;&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>foreign exchange and derivative contracts at their replacement cost value.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital funds for determining the exposure ceilings comprise both Tier 1 and Tier 2 capital.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To ensure that exposures are evenly spread, the RBI requires banks to fix internal limits of
exposure to specific sectors. These limits are subject to periodic review by the banks. We have
fixed a ceiling of 12% on our exposure to any one industry and monitor our exposures accordingly.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Regulation&nbsp;Relating to Country Risk Management</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The RBI has issued detailed guidelines on country risk management that cover banks&#146; exposures to
those countries to which they have a net funded exposure of 1% of their total assets as of March&nbsp;31
of the fiscal year. Banks are required to address the issues of identifying, measuring, monitoring
and controlling country exposure risks. Provisions are required to be maintained by banks on these
exposures on a graded scale ranging from 0.25% to 100% relating to the level of risk in respect of
such countries.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Regulation&nbsp;Relating to Capital Markets Exposure</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The RBI has issued guidelines on financing by banks of equities and investments in shares. These
guidelines place a ceiling on the overall exposure of a bank to the capital markets. The following
exposures are subject to the ceiling:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&nbsp;&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Direct investment by a bank in equity shares, convertible bonds and debentures and
units of equity-oriented mutual funds.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&nbsp;&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Advances against shares to individuals for investments in equity shares (including
initial public offerings), bonds and debentures, units of equity-oriented mutual funds and
similar securities.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&nbsp;&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Secured and unsecured advances to stockbrokers and guarantees issued on behalf of
stockbrokers and market makers.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exposures subject to the ceiling will not include collateral consisting of equity shares, bonds and
debentures pledged to a bank by a corporate customer, other than Non-Banking Financial Companies
(NBFC), to secure a loan for working capital or other productive purposes which do not involve
stock
</DIV>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->114<!-- /Folio -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">broking or investment in capital markets. Advances made by banks to individuals for personal
purposes like education, housing, consumption etc. will also be outside this ceiling.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Regulations Relating to Investments</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Exposure Limits</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Credit exposure limits specified by the RBI in respect of a bank&#146;s lending to individual borrowers
and borrower groups apply in respect of non-convertible debt instruments. Within the overall
capital market exposure ceiling a Bank&#146;s investments in equity securities, convertible bonds and
debentures and units of equity oriented mutual funds should not exceed 20% of its net worth. Banks&#146;
aggregate investment in bonds eligible for Tier 2 capital status issued by other banks/financial
institutions are restricted up to 10% of the investing bank&#146;s capital funds (Tier 1 plus Tier 2
capital). Investments in the instruments issued by banks/financial institutions that are eligible
for capital status will attract 100% risk weight for credit risk for capital adequacy purposes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In order to contain the risks arising out of investment by banks in non-statutory liquidity ratio
(&#147;non-SLR&#148;) securities, and in particular the risks arising out of investment in bonds through
private placement, the RBI has issued detailed guidelines. Banks have been advised to restrict
their new investments in unlisted securities to 10% of their total non-SLR investments as of March
31 of the previous year. Banks are permitted to invest in unlisted non-SLR securities within this
limit, provided that such securities comply with prescribed disclosure requirements for listed
companies. Investment in security receipts issued by securitization companies/reconstruction
companies registered with the RBI, and in asset backed securities/mortgage backed securities
carrying the minimum investment grade, are excluded from this limit. The guidelines do not cover
investments in venture capital funds, commercial paper, certificates of deposit and mutual fund
schemes where any part of the corpus can be invested in equity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Non-Performing Investments</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The RBI has defined non-performing investments as those where the principal/interest is unpaid for
more than 90&nbsp;days (until March&nbsp;31, 2004, it was 180&nbsp;days), including preference shares where the
fixed dividend is not paid. In the event of the non-availability of the latest balance sheet of a
company in which a bank has investment in equity shares, those equity shares would also be
classified as non-performing investments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Restrictions on Investments in a Single Company</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No bank may, without prior RBI approval, may hold shares in any company exceeding 30% of the paid
up share capital of that company or 30% of its own paid up share capital and reserves, whichever is
less.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Prohibition on Short Selling</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The RBI does not permit short selling of securities by banks, except intra-day short selling
subject to stipulated conditions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Valuation of Investments</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The RBI has issued guidelines for the valuation of investments. These guidelines require banks to
classify their entire portfolio of approved securities under three categories: &#147;held for trading&#148;,
&#147;available for sale&#148; and &#147;held to maturity&#148;. However, for disclosure and valuation purpose, the
investments are classified under six groups (hereafter called &#147;groups&#148;) &#150; government securities,
other approved securities, shares, debentures and bonds, investments in subsidiaries and joint
ventures and other investments.
</DIV>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->115<!-- /Folio -->

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There are guidelines for the quantum and nature of investments that can be made in the held to
maturity category. Securities in the &#147;held to maturity&#148; category would have to be valued at cost
and any premium paid over face value would be amortized over the period of maturity of the
instrument. Investment under held for trading category cannot be held for more than 90&nbsp;days.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments in the available for sale and held for trading categories are required to be marked to
market based on market quotes or on the basis of the yield curve provided by the Fixed Income Money
Market Dealers Association of India and Primary Dealers Association of India. Any net loss on the
revaluation of investments of each group in the &#147;held for trading&#148; and &#147;available for sale&#148;
category would have to be recognized in the income account. Net gain on revaluation of investments
shall not be recognized in the income account. Banks would be able to shift investments from one
category to another only with the approval of the board of directors/committee thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With a view to building up of adequate reserves to guard against any possible reversal of interest
rate environment in future due to unexpected developments, banks were advised by the RBI in January
2002, to build up Investment Fluctuation Reserve (IFR)&nbsp;of a minimum five per cent of the investment
portfolio within a period of five years. IFR is computed with reference to investments in two
categories, viz., &#147;held for trading&#148; and &#147;available for sale&#148;. RBI has recently advised the banks
which have maintained capital of at least nine per cent of the risk weighted assets for both credit
risk and market risks for specified items as on March 31, 2006 would be permitted to treat the
entire balance in the IFR as Tier 1 capital (instead of Tier 2 capital as hitherto) and for this
purpose, Banks may transfer the balance therein to specified accounts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Regulations Relating to Deposits</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The RBI has permitted banks to independently determine rates of interest offered on fixed deposits.
However, no bank is permitted to pay interest on current account deposits. Further, banks can pay
interest of up to 3.5% per annum on savings deposits. In respect of savings and time deposits
accepted from employees, we are permitted by the RBI to pay an additional interest of 1% over the
interest payable on deposits from the public.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Domestic time deposits can have a minimum maturity of seven days. Time deposits from non-resident
Indians denominated in foreign currency normally have a tenor of one year to three years.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The RBI has permitted banks the flexibility to offer varying rates of interest on domestic deposits
of the same maturity subject to the following conditions:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings"><DIV style="margin-left: 12pt">&#167;</DIV></FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Time deposits are of Rs. 1.5&nbsp;million and above; and</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><DIV style="margin-left: 12pt"><FONT style="font-family: Wingdings">&#167;</FONT></DIV> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Interest is paid in accordance with a schedule of interest rates
disclosed in advance by the bank and not pursuant to negotiation
between the depositor and the bank.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The RBI regulates the interest rates offered on deposits accepted from non-residents.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To achieve greater financial inclusion, banks have been advised by the Reserve Bank to make
available a basic banking &#145;no frills&#146; account either with &#145;nil&#146; or very low minimum balances as
well as charges that would make such accounts accessible to vast sections of population.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Insurance of Deposits</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Demand and time deposits of up to Rs. 100,000 accepted by banks licensed in India must be insured
with the Deposit Insurance and Credit Guarantee Corporation, a wholly owned subsidiary of the RBI.
Banks are required to pay the insurance premium for the eligible amount to the Deposit Insurance
and Credit
</DIV>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->116<!-- /Folio -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Guarantee Corporation on a semi-annual basis. The cost of the insurance premium cannot be passed on
to the customer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Regulations Relating to &#145;Know Your Customer&#146; (KYC)&nbsp;Guidelines Anti Money Laundering Standards&#146;</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The RBI has issued KYC guidelines and Anti Money Laundering Measures. Banks are advised to follow
certain customer identification procedures for opening of accounts and monitoring transactions of a
suspicious nature for the purpose of reporting it to appropriate authority. The objective of these
KYC guidelines is inter alia, to prevent banks from being used, intentionally or unintentionally,
by criminal elements for money laundering activities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These KYC guidelines mandate banks to frame their KYC policy incorporating the following four key
elements:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Customer Acceptance Policy (CAP)</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Banks are required to develop a clear CAP laying down the explicit criteria for acceptance of
customers. The CAP must ensure that explicit guidelines are in place on various specified aspects
of customer relationship in the bank, including but not limited to the following:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><FONT style="font-family: Wingdings">&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No account is opened in an anonymous or a fictitious name;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><FONT style="font-family: Wingdings">&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Parameters of risk perception are clearly defined in terms of the nature of, among the
other things, the nature of business activity, location of customer and his clients, mode
of payments, volume of turnover, social and financial status to enable categorization of
customers into low, medium and high risk;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><FONT style="font-family: Wingdings">&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Documentation requirements and other information to be collected in respect of
different categories of customers; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><FONT style="font-family: Wingdings">&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Application of appropriate customer-due-diligence measures.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Customer Identification Procedure (CIP)</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The KYC policy of banks should clearly state the CIP to be carried out at different stages of
banking relationship with a customer. Banks need to obtain sufficient information necessary to
establish the identity of each new customer, whether regular or occasional, and the purpose of the
intended nature of the banking relationship. Customer-due-diligence measures are required to be
observed for all customers (i.e. natural persons as well as legal persons).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Monitoring of Transactions</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ongoing monitoring is an essential element of effective KYC procedures. However the extent of
monitoring will depend upon the risk sensitivity of the account. Banks are required to pay special
attention to all complex, unusually large transactions and all unusual patterns which have no
apparent economic or lawful purpose. Banks may prescribe threshold limits for a particular category
of accounts and pay particular attention to transactions, which exceed these limits. High risk
accounts have to be subjected to intensified monitoring. Every bank should set key indicators for
such accounts, taking note of the background of the customer. Banks should ensure that its branches
continue to maintain appropriate records of all cash transactions (deposits and withdrawals) of Rs.
1million and above.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Risk Management</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors of banks are required to ensure that an effective KYC program covering
proper management oversight, systems and controls, segregation of duties, training and other
related matters are in
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">place. Banks, may in consultation with their board of directors, devise procedures for creating
risk profiles of their existing and new customers and apply various anti money laundering measures
keeping in view the risks involved in a transaction, account or banking / business relationship.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rules under Prevention of Money Laundering Act (2002)&nbsp;are applicable to Banks effective July&nbsp;2005.
Under these rules, Banks are required to furnish information to the Financial Intelligence Unit
(FIU)&nbsp;of the Government of India. The information to be furnished includes specified cash
transactions, forgery of valuable security or transactions of a suspicious nature.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Legal Reserve Requirements</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Cash Reserve Ratio</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each bank is required to maintain a specific percentage of its demand and time liabilities by way
of a balance in a current account with the RBI. This is to maintain the solvency of the banking
system. The cash reserve ratio is currently at 5%. For this purpose, the following liabilities are
not considered:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><DIV style="margin-left: 12pt"><FONT style="font-family: Wingdings">&#167;</FONT></DIV> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>inter-bank liabilities; and</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><DIV style="margin-left: 12pt"><FONT style="font-family: Wingdings">&#167;</FONT></DIV> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>refinancing from the RBI and other institutions permitted to offer refinancing to banks.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The RBI pays no interest on cash reserves of up to 3.0% of the demand and time liabilities and pays
interest at the rate of 3.5% per annum on the balance. Effective June 24, 2006 the Reserve Bank of
India has decided that the cash reserves will not be eligible for such interest.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The cash reserve ratio has to be maintained on an average basis for a two-week period and should
not fall below 70% of the required cash reserve ratio on any particular day.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Statutory Liquidity Ratio</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to the cash reserve ratio, each bank is required to maintain in India a specified
percentage of its total demand and time liabilities by way of liquid assets such as cash, gold or
approved securities, such as government of India securities and state government securities. This
is to maintain liquidity in the banking system. The percentage of this liquidity ratio is fixed by
the RBI from time to time. Currently, the RBI requires banks to maintain a liquidity ratio of 25%
on their total demand and time liabilities. For this purpose the following liabilities are not
considered:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><DIV style="margin-left: 12pt"><FONT style="font-family: Wingdings">&#167;</FONT></DIV> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any advance taken from the RBI or from certain other financial institutions; and</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><DIV style="margin-left: 12pt"><FONT style="font-family: Wingdings">&#167;</FONT></DIV> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>inter-bank liabilities to the extent of inter-bank assets.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Regulations for Asset Liability Management</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At present, RBI regulations for asset liability management require banks to draw up two types of
asset-liability gap statements separately for the rupee and for four major foreign currencies.
These gap statements are prepared by scheduling all assets and liabilities according to the stated
or anticipated re-pricing date, or maturity date. These statements have to be submitted to the RBI
on a quarterly basis. The RBI has announced that banks should actively monitor the difference in
the amount of assets and liabilities maturing or being re-priced in a particular period and place
internal prudential limits on the gaps in each time period, as a risk control mechanism.
Additionally, the RBI requires each bank to manage its asset-liability structure so that the
negative liquidity gap in the one to 14&nbsp;day and 15 to 28&nbsp;day time periods does not exceed 20% of
the cash outflows in those time periods.
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Foreign Currency Dealership</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The RBI has granted us a fully authorized dealers&#146; license to deal in foreign exchange through our
designated branches. Under this license, we have been granted permission to: engage in foreign
exchange transactions in all currencies; open and maintain foreign currency accounts abroad; raise
foreign currency and rupee-denominated deposits from non-resident Indians; grant foreign currency
loans to on-shore and off-shore corporations; open documentary credits; grant import and export
loans; handle collection of bills and funds transfer services; issue foreign currency guarantees;
and enter into derivative transactions and risk management activities that are incidental to our
normal functions authorized under our organizational documents.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our foreign exchange operations are subject to the guidelines specified by the RBI in its exchange
control manual. As an authorized dealer, we are required to enroll as a member of the Foreign
Exchange Dealers Association of India, which prescribes the ground rules relating to foreign
exchange business in India.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Authorized dealers are required to determine their limits on open positions and maturity gaps in
accordance with RBI guidelines and these limits are approved by the RBI. Further, we are permitted
to hedge foreign currency loan exposures of Indian corporations in the form of interest rate swaps,
currency swaps and forward rate agreements, subject to certain conditions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Statutes Governing Foreign Exchange and Cross Border Business Transactions</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The foreign exchange and cross border transactions undertaken by banks are subject to the
provisions of the Foreign Exchange Management Act, 1999 (the &#147;Foreign Exchange Management Act&#148;).
All branches should monitor all non-resident accounts to prevent money laundering. These
transactions are regulated by the Foreign Exchange Management Act and The Prevention of Money
Laundering Act, 2002.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Requirements of the Banking Regulation&nbsp;Act</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Reserve Fund</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any bank incorporated in India is required to create a reserve fund to which not less than 25% of
the profits of each year, before dividends, must be transferred. If there is an appropriation from
this account, the bank is required to report such an appropriation to the RBI within 21&nbsp;days,
explaining the circumstances leading to the appropriation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Restrictions on Payment of Dividends</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Banking Regulation&nbsp;Act requires that a bank pay dividends on its shares only after all of its
expenses capitalized under Indian GAAP (including preliminary expenses, organization expenses,
share selling commission, brokerage on public offerings, amounts of losses and any other items of
expenditure not represented by tangible assets) have been written off.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The government of India may, upon the recommendation of the RBI, exempt a bank from requirements
relating to its reserve fund and the restrictions on dividend payments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The RBI issued revised guidelines in May&nbsp;2005 regarding declaration and payment of dividends
(including interim dividends) by banks, with effect from fiscal 2005. Banks that comply with the
following prudential requirements are eligible to declare dividends:
</DIV>
</DIV>
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<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><DIV style="margin-left: 12pt"><FONT style="font-family: Wingdings">&#167;</FONT></DIV> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Capital adequacy ratio must be at least 9% for the preceding two completed years and the fiscal year for which the
bank proposes to declare a dividend;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><DIV style="margin-left: 12pt"><FONT style="font-family: Wingdings">&#167;</FONT></DIV> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Net non-performing assets must be less than 7% of advances (5% of advances where the capital adequacy ratio is
less than 9% for the preceding two completed years but at least 9% for the fiscal year for which the bank proposes
to declare a dividend);</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><DIV style="margin-left: 12pt"><FONT style="font-family: Wingdings">&#167;</FONT></DIV> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The bank has complied with the provisions of Sections&nbsp;15 and 17 of the Banking Regulation&nbsp;Act;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><DIV style="margin-left: 12pt"><FONT style="font-family: Wingdings">&#167;</FONT></DIV> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The bank has complied with the prevailing regulations/guidelines issued by the RBI, including creating adequate
provisions for impairment of assets and staff retirement benefits, transfer of profits to Statutory Reserves,
etc.;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><DIV style="margin-left: 12pt"><FONT style="font-family: Wingdings">&#167;</FONT></DIV> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The dividend should be payable out of the current year&#146;s profits; and</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><DIV style="margin-left: 12pt"><FONT style="font-family: Wingdings">&#167;</FONT></DIV> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The RBI has not placed any explicit restrictions on the bank
for declarations of dividends.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Banks, which comply with the above prudential requirements, can pay dividends subject to
compliance with the following conditions:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><DIV style="margin-left: 12pt"><FONT style="font-family: Wingdings">&#167;</FONT></DIV> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The dividend payout ratio (calculated as a percentage of
&#147;dividend payable in a year&#148; (excluding dividend tax) to &#147;net
profit during the year&#148;) should not exceed 40%. The RBI has
prescribed a matrix of criteria linked to the capital
adequacy ratio and the net non-performing assets ratio in
order to ascertain the maximum permissible range of dividend
payout ratio;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><DIV style="margin-left: 12pt"><FONT style="font-family: Wingdings">&#167;</FONT></DIV> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If the financial statements for which the dividend is
declared have any audit qualifications which have an adverse
bearing on the profits, the same should be adjusted while
calculating the dividend payout ratio.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Restriction on Voting Rights</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Banking Regulation&nbsp;Act specifies that no shareholder in a banking company can exercise voting
rights in excess of 10% of the total voting rights of all shareholders of the banking company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The RBI has also issued guidelines for ownership and governance in private sector banks. The
underlying thread of the guidelines is to ensure that the ultimate ownership and control of banks
is well diversified, banks are owned and managed by &#147;fit and proper&#148; persons/entities who are well
capitalized and that the processes are transparent and fair.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Restriction on Transfer of Shares</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RBI approval is required before a bank can register the transfer of shares to an individual or
group which acquires 5.0% or more of its total paid-up capital.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Regulatory Reporting and Examination Procedures</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The RBI is empowered under the Banking Regulation&nbsp;Act to inspect a bank. The RBI monitors
prudential parameters at regular intervals. The results of these inspections are provided to the
bank, but are required by law to be kept confidential. To this end and to enable off-site
monitoring and surveillance by the RBI, banks are required to report to the RBI on financial and
operating measures such as:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><DIV style="margin-left: 12pt"><FONT style="font-family: Wingdings">&#167;</FONT></DIV> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>assets, liabilities and off-balance sheet exposures;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><DIV style="margin-left: 12pt"><FONT style="font-family: Wingdings">&#167;</FONT></DIV> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the risk weighting of these exposures, the capital base and the capital adequacy ratio;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><DIV style="margin-left: 12pt"><FONT style="font-family: Wingdings">&#167;</FONT></DIV> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the unaudited balance sheet/statement of income;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><DIV style="margin-left: 12pt"><FONT style="font-family: Wingdings">&#167;</FONT></DIV> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>asset quality;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><DIV style="margin-left: 12pt"><FONT style="font-family: Wingdings">&#167;</FONT></DIV> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>concentration of exposures; and</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><DIV style="margin-left: 12pt"><FONT style="font-family: Wingdings">&#167;</FONT></DIV> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>other prudential parameters.</TD>
</TR>

</TABLE>
</DIV></DIV>
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<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The RBI also conducts periodic on-site inspections of matters relating to the bank&#146;s portfolio,
risk management systems, internal controls, credit allocation and regulatory compliance, at
intervals ranging from one to three years. We have been subject to on-site inspection by the RBI at
yearly intervals. The inspection report, along with the report on actions taken by us, has to be
placed before our Board of Directors. On approval by our Board of Directors, we are required to
submit the report on actions taken by us to the RBI. The RBI also discusses the report with our
management team, including our Managing Director.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The RBI also conducts on-site supervision of selected branches with respect to their general
operations and foreign exchange related transactions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Keeping in view the emerging scenario under the Basel II accord and the need to allocate
supervisory resources in accordance with the risk profile of banks, the RBI intends to switch over
from micro-regulation to Risk Based Supervision (&#147;RBS&#148;). The RBI has developed and circulated to
banks detailed standardized risk profile templates for different business areas to be used by banks
for undertaking self-assessment of the risks to which they are exposed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Penalties</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The RBI can impose penalties on banks and their employees in case of infringement of regulations
under the Banking Regulation&nbsp;Act. The penalty can be a fixed amount or can be related to the amount
involved in any contravention of the regulations. The penalty may also include imprisonment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Assets to be Maintained in India</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Every bank is required to ensure that its assets in India (including import-export bills drawn in
India and RBI approved securities, even if the bills and the securities are held outside India) are
not less than 75% of its demand and time liabilities in India.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Secrecy Obligations</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our obligations relating to maintaining secrecy arise out of common law principles governing our
relationship with our customers. We cannot disclose any information to third parties except under
certain limited and clearly defined circumstances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Guidelines for merger /amalgamation of private sector banks</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The RBI has issued detailed guidelines in May&nbsp;2005 for merger /amalgamation of private sector banks
and for amalgamation of a non-banking finance company (NBFC)&nbsp;with a banking company. The guidelines
lay down the process of merger proposal, determination of swap ratios, disclosures, the stages at
which the Board of Directors will get involved in the merger process and norms of buying and
selling of shares by the promoters before and during the process of merger.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Appointment and Remuneration of Our Chairman, Managing Director and Other Directors</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We require the prior approval of the RBI to appoint our Chairman and Managing Director and any
other directors and to fix their remuneration. The RBI is empowered to remove the appointee on the
grounds of the public interest or the interest of depositors or to ensure the proper management of
the Bank. Further, the RBI may order meetings of the Bank&#146;s board of directors to discuss any
matter in relation to the Bank,
</DIV>
</DIV>
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<P align="right" style="font-size: 10pt"><!-- Folio -->121<!-- /Folio -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">appoint observers to these meetings and in general may make changes to the management as it may
deem necessary and can also order the convening of a general meeting of the company to elect new
directors.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The RBI has issued guidelines relating to salary and other remuneration payable to the Chairman,
Managing Director and full-time directors of new private sector banks. Pursuant to the guidelines,
the RBI has permitted banks to fix the performance bonus payable to the managing director/whole
time directors on either of two criteria:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;up to a maximum of 25% of the salary; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;the average bonus paid to officers and employees. The average bonus paid to officers and
employees is calculated by dividing the total salary bill by the total bonus paid to them.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Securities and Exchange Board of India Regulations and Guidelines</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SEBI was established to protect the interests of public investors in securities and to promote the
development of, and to regulate, the Indian securities market. We are subject to SEBI regulations
in respect of certain of our activities, including acting as agent for collecting subscriptions to
public offerings of securities made by other companies. These regulations provide for registering
with SEBI the functions, responsibilities and the code of conduct applicable for each of these
activities.
</DIV>
</DIV>
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<A name="117"></A>
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXCHANGE CONTROLS</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Restrictions on Conversion of Rupees</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There are restrictions on the conversion of rupees into dollars. Before February&nbsp;29, 1992, the RBI
determined the official value of the rupee in relation to a weighted basket of currencies of
India&#146;s major trading partners. In the February&nbsp;1992 budget, a new dual exchange rate mechanism was
introduced by allowing conversion of 60% of the foreign exchange received on trade or current
account at a market-determined rate and the remaining 40% at the official rate. All importers were,
however, required to buy foreign exchange at the market rate except for certain priority imports.
In March&nbsp;1993, the exchange rate was unified and allowed to float. In February&nbsp;1994 and again in
August&nbsp;1994, the RBI announced relaxations in payment restrictions in the case of a number of
transactions. Since August&nbsp;1994, the government of India has substantially complied with its
obligations owed to the International Monetary Fund, under which India is committed to refrain from
using exchange restrictions on current international transactions as an instrument in managing the
balance of payments. Effective July&nbsp;1995, the process of current account convertibility was
advanced by relaxing restrictions on foreign exchange for various purposes, such as foreign travel
and medical treatment. The government has also, since 1999, relaxed restrictions on capital account
transactions by resident Indians. For example by circular dated March&nbsp;18, 2004, resident Indians
are now permitted to remit up to US$ 25,000 for any permissible current or capital account
transaction.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Restrictions on Sale of the Equity Shares Underlying the ADRs/ADSs and for Repatriation of Sale
Proceeds</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the laws of India, ADSs issued by Indian companies to non-residents have free transferability
outside of India. Similarly, under the recent amendments to Indian regulations, no approval of the
RBI is required for the sale of equity shares underlying ADSs by a non-resident of India to a
resident of India subject to reporting requirements and the applicable pricing formula in the case
of shares not sold on an exchange.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Ministry of Finance, Government of India, has granted general permission for the transfer of
ADRs outside India and also permitted non-resident holders of ADRs to surrender ADRs in exchange
for the underlying shares. Pursuant to the terms of the Deposit Agreement an investor who
surrenders ADRs and withdraws shares is permitted to re-deposit such shares subject to the total
issued ADRs and obtain ADRs at a later time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Fungibility of ADRs</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In March&nbsp;2001, the RBI has permitted the re-conversion of shares of Indian Companies into ADRs,
subject to the following conditions:
</DIV>







<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#149;</B> the Indian company has issued ADRs;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#149;</B> the shares of the Indian company are purchased by a registered stock broker in India in the name
of the Depository, on behalf of the non-resident investor who wishes to convert such shares into
ADRs;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#149;</B> shares are purchased on a recognized stock exchange;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#149;</B> the shares are purchased with the permission of the custodian of the ADRs of the Indian company
and are deposited with the custodian;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#149;</B> the issuer company has authorized the custodian to accept shares from non-resident investors for
re-issuance of ADRs;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#149;</B> the number of shares so purchased do not exceed the ADRs converted into underlying shares, and
are in compliance with the sectoral caps applicable under the Foreign Direct Investment regime; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#149;</B> the non-resident investor, broker, custodian and the overseas depository comply with the
provisions of the Depository Receipt Mechanism and the guidelines issued thereunder from time to
time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Also the RBI has prescribed that the domestic custodians are the entity required to ensure
compliance with the RBI guidelines and to file reports with the RBI from time to time, the domestic
custodian is also required to perform the following functions:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#149;</B> provide a certificate to the RBI and the SEBI stating that the sectoral caps for foreign
investment in the relevant company have not been breached;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#149;</B> monitor the total number of ADRs that have been converted into underlying shares by non-resident
investors;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#149;</B> liaise with the issuer company to ensure that the foreign investment restrictions, if any, are
not being breached; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#149;</B> file a monthly report about the ADR transactions under the two-way fungibility arrangement with
the RBI and the SEBI.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An investor who surrenders an ADS and withdraws equity shares may be entitled to redeposit those
equity shares in the depositary facility in exchange for ADSs and the depositary may accept
deposits of outstanding equity shares purchased by a non-resident on the local stock exchange and
issue ADSs representing those equity shares. However, in each case, the aggregate number of equity
shares re-deposited or deposited by such persons cannot exceed the number represented by ADSs
converted into underlying equity shares. The RBI has issued a notification inter alia permitting
Indian companies to sponsor ADR issues against shares held by their shareholders at a price to be
determined by the lead manager. Investors who seek to sell any equity shares in India withdrawn
from the depositary facility and to convert the rupee proceeds from the sale into foreign currency
and repatriate the foreign currency from India will, subject to the foregoing, not have to obtain
RBI approval for each transaction.
</DIV>





</DIV>
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<A name="118"></A>
</DIV>






<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>RESTRICTIONS ON FOREIGN OWNERSHIP OF INDIAN SECURITIES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The government of India regulates ownership of Indian companies by foreigners. Foreign
investment in Indian securities is generally regulated by the Foreign Exchange Management Act. The
Foreign Exchange Management Act, when read together with a series of regulations issued there under
by the RBI, permits transactions involving the inflow or outflow of foreign exchange and empowers
the RBI to prohibit or regulate such transactions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Foreign Exchange Management Act has eased restrictions on current account transactions.
However, the RBI continues to exercise control over capital account transactions (i.e., those that
alter the assets or liabilities, including contingent liabilities, of persons). The RBI has issued
regulations under the Foreign Exchange Management Act to regulate the various kinds of capital
account transactions, including certain aspects of the purchase and issuance of shares of Indian
companies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The RBI has issued a notification under the provisions of the Foreign Exchange Management Act
relaxing the requirement of prior approval for an Indian company making an ADS issue provided that
the issuer is eligible to issue ADSs pursuant to the relevant scheme or notification issued by the
Ministry of Finance or has the necessary approval from the Foreign Investment Promotion Board.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the foreign investment rules, the following restrictions are applicable to foreign ownership:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Foreign Direct Investment</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Government of India, pursuant to its liberalization policy, set up the Foreign Investment
Promotion Board, or the FIPB, to regulate all foreign direct investment into India. Foreign Direct
Investment, means investment by way of subscription and/or purchase of securities of an Indian
company by a non resident investor. FIPB approval is required for investment in some sectors,
including housing, petroleum (other than refining), defense and strategic industries. Also, the
following investments would require the prior permission of the FIPB:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#149;</B> investments , including a transfer of shares, in excess of specified sectoral caps;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#149;</B> investments by a foreign investor who has an existing joint venture or technology transfer/trade
mark agreement in the same field. However, prior FIPB approval will not be required in case of
investment made by a venture capital fund registered with SEBI or where the investment in the
existing joint venture is less than 3.0 per cent or where the existing joint venture is defunct or
sick
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#149;</B> investment being more than 24% in the equity capital of units manufacturing items reserved for
small scale industries;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#149;</B> investments by an unincorporated entity;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#149;</B> investment in industries for which industrial licensing is compulsory; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#149;</B> all proposals relating to acquisition of shares of an Indian company by a foreign investor
(including individuals of Indian nationality or origin residing outside India (a &#147;Non-Resident
Indian&#148;), the activities of which company are not under the &#147;automatic&#148; route under existing Indian
foreign investment policy or where the Indian company is engaged in the financial services sector
or where the acquisition of shares attracts the provisions of the Takeover Code. However, as per a
recent Press Note issued by the Government of India, the prior permission of the FIPB would not be
required for transfer of shares from residents to non-residents in the financial services sector or
where the provisions of the Takeover Code are attracted, in cases where approvals are required from
the RBI, under the Takeover Code or the Insurance Regulatory and Development Authority.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to certain exceptions, Foreign Direct Investment and investment by individuals of Indian
nationality or origin residing outside India, or Non-Resident Indians, in Indian companies does not
require the prior approval of the FIPB or the RBI. The Government has indicated that in all cases
where Foreign Direct Investment is allowed on an automatic basis without FIPB approval the RBI
would continue to be the primary agency for the purposes of monitoring and regulating foreign
investment. In cases where FIPB approval is obtained, no approval of the RBI is required, although
a declaration in the prescribed form, detailing the foreign investment, must be filed with the RBI
once the foreign investment is made in the Indian company. The foregoing description applies only
to an issuance of shares by, and not to a transfer of shares of, Indian companies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Government has set up the Foreign Investment Implementation Authority, or the FIIA in the
Ministry of Commerce and Industry. The FIIA has been mandated to (i)&nbsp;translate foreign direct
investment approvals into implementation, (ii)&nbsp;provide a proactive one-stop after-care service to
foreign investors by helping them obtain necessary approvals, (iii)&nbsp;sort out operational problems
and (iv)&nbsp;meet with various Government agencies to find solutions to foreign investment problems and
maximize opportunities through a co-operative approach.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><FONT style="font-family: Wingdings">&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Under the Issue of Foreign Currency Convertible Bonds and Equity Shares (through
Depositary Receipt Mechanism) Scheme, 1993, foreign investors may purchase ADSs subject to
the receipt of all necessary government approvals at the time the depositary receipt
program is set up. With a view to liberalizing the operational procedures, the government
of India&#146;s Ministry of Finance and the RBI have granted a general approval to ADS issues,
subject to certain restrictions; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><FONT style="font-family: Wingdings">&#167;</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Under the portfolio investment route, foreign institutional investors, subject to
registration with SEBI and the RBI, and non-resident Indians, subject to a resolution of
the board of directors and a special resolution of the shareholders, may be permitted to
own in the aggregate up to 49% of the total issued capital of the company that are not
represented by ADSs; no single foreign institutional investor may own more than 10% of the
total issued capital of the company; a corporate/individual sub-account of the foreign
institutional investor may not hold more than 5% of the total issued capital of a company;
a broad based sub-account may not hold more than 10% of the total issued capital of a
company and no single non-resident Indian may own more than 5% of the total issued capital
of the company.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As an investor in ADSs, you do not need to seek the specific approval from the government of India
to purchase, hold or dispose of your ADSs. In our ADS offering, we obtained the in-principle
approval of the relevant stock exchanges for listing of the equity shares underlying the ADSs. We
were not required to obtain the prior approval of the Foreign Investment Promotion Board or the
RBI. Notwithstanding the foregoing, if a foreign institutional investor, non-resident Indian or
overseas corporate body were to withdraw its equity shares from the ADS program, its investment in
the equity shares would be subject to the general restrictions on foreign ownership noted above and
may be subject to the portfolio investment restrictions, including the portfolio investment
limitations mentioned above. The implications of these limitations however, is not clear.
Secondary purchases of securities of Indian companies in India by foreign direct investors or
investments by non-resident Indians, persons of Indian origin, overseas corporate bodies and
foreign institutional investors above the ownership levels set forth above require the government
of India&#146;s approval on a case-by-case basis. Furthermore, if you withdraw your equity shares from
the ADS program and your direct or indirect holding in us is equal to or exceeds 15% of our total
equity, you may be required to make a public offer to the remaining shareholders under the Takeover
Code.
</DIV>




</DIV>
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<DIV align="left">
<A name="119"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ADDITIONAL INFORMATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It is
possible to read and copy documents referred to in this annual report on Form 20-F that
have been filed with the SEC at the SEC&#146;s public reference room located at 100F Street NE,
Washington, DC 20549. Please call the SEC at 1-800-SEC-0330 for further information on the public
reference rooms and the copy charges. The SEC filings are also available to the public from
commercial document retrieval services and at the internet website maintained by the SEC at
www.sec.gov.
</DIV>


<P align="right" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
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</DIV>
<DIV align="left">
<A name="tocpage"></A>
</DIV>



<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>INDEX TO FINANCIAL STATEMENTS</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Page</B></TD>
</TR>

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<!-- Begin Table Body -->
<TR valign="bottom">

<TD><DIV style="margin-left:15px; text-indent:-15px"><B>Consolidated
Financial Statements of HDFC Bank Limited:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#300">Report of independent registered public accounting firm </A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">F-2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#301">Consolidated
balance sheets as of March&nbsp;31, 2005 and 2006 </A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">F-3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#302">Consolidated
statements of income for the years ended March&nbsp;31, 2004, 2005 and 2006 </A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">F-4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#303">Consolidated
statements of cash flows for the years ended March&nbsp;31, 2004, 2005 and 2006</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">F-5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#304">Consolidated
statements of shareholders&#146; equity for the years ended March&nbsp;31, 2004, 2005 and 2006</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">F-6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#305">Notes
to consolidated financial statements </A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">F-7</TD>
    <TD>&nbsp;</TD>
</TR>
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<DIV align="left">
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<P align="center" style="font-size: 10pt"><!-- Folio -->F-1<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="300"></A>
</DIV>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">To The Board of Directors and Shareholders of<BR>
HDFC Bank Limited:

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have audited the accompanying consolidated balance sheets of HDFC Bank Limited (the &#147;Bank&#148;) as of March&nbsp;31, 2005 and 2006, and the related consolidated statements of income, cash
flows and shareholders&#146; equity for each of the years in the three year period ended March&nbsp;31, 2006.
These financial statements are the responsibility of the Bank&#146;s management. Our responsibility is
to express an opinion on these financial statements based on our audits.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We conducted our audits in accordance with the standards of the Public Company Accounting Oversight
Board (United States). Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement. The
Bank is not required to have, nor were we engaged to perform, an audit of its internal control over
financial reporting. Our audit included consideration of internal control over financial reporting
as a basis for designing audit procedures that are appropriate in the circumstances but not for the
purpose of expressing an opinion on the effectiveness of the Bank&#146;s internal control over financial
reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In our opinion, such consolidated financial statements present fairly, in all material respects,
the financial position of the Bank as of March&nbsp;31, 2005 and 2006, and the
results of their operations and their cash flows for each of the years in the three year period
ended March&nbsp;31, 2006, in conformity with accounting principles generally accepted in the United
States of America.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As described in Note 2 (b)&nbsp;to the consolidated financial statements, these consolidated financial
statements have been prepared in accordance with accounting principles generally accepted in the
United States of America, which differ in certain material respects from accounting principles
generally accepted for banks in India, which form the basis of the Bank&#146;s general purpose financial
statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our audits also comprehended the translation of India rupee amounts into U.S. dollar amounts and,
in our opinion, such translation has been made in conformity with the basis stated in Note 2 (w).
Such U.S. dollar amounts are presented solely for the convenience of readers in the United States
of America.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">/s/ DELOITTE HASKINS &#038; SELLS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Chartered Accountants

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mumbai, India

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">September&nbsp;25, 2006

</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>

</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>HDFC
BANK LIMITED</B>
</DIV>

<DIV align="left">
<A name="301"></A>
</DIV>
<DIV align="center" style="font-size: 10pt"><B>CONSOLIDATED BALANCE SHEETS</B></DIV>


<DIV align="center" style="font-size: 10pt"><B>As of March&nbsp;31, 2005 and 2006</B></DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>As of March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11"><B>(In millions except number of shares)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><B>ASSETS:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash and cash equivalents
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">37,575.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">61,194.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">1,375.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Term placements
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,699.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,243.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">230.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investments
held for trading, at fair value
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,278.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,945.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">66.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investments
available for sale, at fair value (includes restricted investments of Rs. 24,017.3
and Rs. 90,102.5 respectively)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">204,292.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">273,457.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,147.9</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities purchased under agreements to resell </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,200.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">94.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Loans (net
of allowance of Rs. 5,438.5 and Rs. 5,653.3 respectively) </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">256,486.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">395,274.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,886.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accrued interest receivable
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,912.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,662.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">194.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Property and equipment, net
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,083.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,714.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">195.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other assets
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,215.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,277.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">590.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total assets
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">535,544.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">790,969.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">17,782.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><B>LIABILITIES AND SHAREHOLDERS&#146; EQUITY:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Liabilities</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest-bearing deposits
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">257,237.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">410,181.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">9,221.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-interest-bearing deposits
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">106,304.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">147,124.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,307.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total deposits
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">363,542.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">557,305.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,529.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Short-term
borrowings
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62,079.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75,676.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,701.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accrued interest payable
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,843.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,264.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">185.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Long-term debt
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,028.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,028.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">382.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accrued expenses and other liabilities
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49,713.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77,201.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,735.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total liabilities
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">486,206.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">735,476.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,535.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Contingencies (See Note 26)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Minority interest</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">225.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Shareholders&#146; equity:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Equity
shares: par value&#151;Rs. 10 each;
authorized 450,000,000 shares; issued and
outstanding 309,875,308 shares and 313,142,408 shares, respectively
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,098.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,131.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Additional paid in capital
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,789.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,805.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">602.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Advance received pending allotment of shares
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">423.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Retained earnings
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,871.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,284.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">411.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Statutory reserve
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,187.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,364.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">188.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deferred stock-based compensation
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(66.1</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(19.5</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(0.4</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accumulated
other comprehensive income (loss)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,033.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,299.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(29.2</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total shareholders&#146; equity
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49,338.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55,267.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,242.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Total liabilities and shareholders&#146; equity </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">535,544.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">790,969.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">17,782.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">See accompanying notes to financial statements

</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->F-3<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>HDFC BANK LIMITED </B>
</DIV>

<DIV align="left">
<A name="302"></A>
</DIV>
<DIV align="center" style="font-size: 10pt"><B>CONSOLIDATED STATEMENTS OF INCOME</B></DIV>


<DIV align="center" style="font-size: 10pt"><B>For each of the years ended March&nbsp;31, 2004, 2005 and 2006</B></DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>Years ended March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15"><B>(In millions, except share and per share amounts)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest and dividend revenue:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Loans
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">11,705.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">16,431.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">28,853.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">648.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Trading securities
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">289.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">144.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">195.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Available for sale securities, including dividend
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,487.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,399.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,969.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">291.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Other
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,109.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,234.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,509.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:75px; text-indent:-15px">Total interest revenue
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,591.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,209.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,528.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">978.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest expense:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Deposits
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,279.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,074.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,590.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">350.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Short-term borrowings
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,435.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,759.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,497.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">78.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Debt
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">268.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">390.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">534.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:75px; text-indent:-15px">Total interest expense
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,983.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,223.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,621.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">441.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net interest revenue
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,608.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,985.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,906.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">537.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Provision for credit losses, net
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,343.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,048.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,032.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">113.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net interest revenue after provision for credit losses
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,265.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,937.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,874.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">424.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-interest revenue, net:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Fees and commissions
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,140.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,124.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,949.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">246.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Trading securities gains (losses), net
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">396.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(39.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(44.8</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1.0</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Realized gains (losses)&nbsp;on sales of available
for sale securities,
net
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(48.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">194.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">420.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Foreign exchange transaction gains
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">740.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">911.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">994.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Derivative
transaction gains (losses), net
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">443.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">204.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(402.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(9.1</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Other, net
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">816.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">231.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:75px; text-indent:-15px">Total non-interest revenue, net
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,697.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,211.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,147.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">273.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:90px; text-indent:-15px">Total revenue, net
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,962.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,149.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,022.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">697.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-interest expense:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Salaries and staff benefits
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,154.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,249.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,420.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">121.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Premises and equipment
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,828.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,260.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,125.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Depreciation and amortization
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,254.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,440.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,812.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Administrative and other
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,131.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,462.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,487.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">168.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Total non-interest expense
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,369.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,413.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,846.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">401.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income before income tax expense
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,593.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,735.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,175.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">296.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Income tax expense
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,838.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,125.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,965.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">89.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net income before minority interest
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">4,754.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">6,609.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">9,209.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">207.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Minority interest
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net income
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">4,754.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">6,609.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">9,187.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">206.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Per share information: (See Note: 29)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Earnings per equity share&#151;basic
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">16.87</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">22.78</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">29.45</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">0.66</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Earnings per equity share&#151;diluted
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">16.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">22.60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">29.08</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">0.65</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Per ADS
information (where 1 ADS represents 3 shares): (See Note:&nbsp;29)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Earnings per ADS&#151;basic
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">50.61</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">68.34</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">88.36</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">1.99</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Earnings per ADS&#151;diluted
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">50.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">67.80</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">87.24</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">1.96</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">See accompanying notes to financial statements
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-4<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>HDFC BANK LIMITED </B>
</DIV>

<DIV align="left">
<A name="303"></A>
</DIV>
<DIV align="center" style="font-size: 10pt"><B>CONSOLIDATED STATEMENTS OF CASH FLOWS</B></DIV>


<DIV align="center" style="font-size: 10pt"><B>For each of the years ended March&nbsp;31, 2004, 2005 and 2006</B></DIV>




<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 1px solid #000000"><B>Years ended March 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14"><B>(In millions)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Cash flows from operating activities:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net income
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.</TD>
    <TD align="center">4,754.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.</TD>
    <TD align="center">6,609.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.</TD>
    <TD align="center">9,187.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">US$</TD>
    <TD align="right">206.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Adjustment to reconcile net income to net cash provided by (used in)
operating activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Provision for credit losses
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,343.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,048.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,032.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">113.1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Depreciation and amortization
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,254.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,440.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,812.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Amortization of deferred stock based compensation
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">135.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">308.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Amortization of deferred acquisition costs
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(156.2</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(496.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,523.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Amortization of premium(discount) on investments
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,489.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,516.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,462.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Other than temporary impairment investment
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">714.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Provision for deferred income taxes
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(588.4</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(213.5</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">455.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Guarantee liabilities
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">112.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">(Gain) loss on securitization of loans
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(123.8</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(622.5</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Net realized (gain) loss on sale of available for sale securities
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(194.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(420.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(9.4</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Gain (loss) on disposal of property and equipment, net
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2.1</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2.7</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.1</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Accrued leave compensation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">186.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">329.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net change in:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Investments held for trading
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,257.7</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,955.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,667.1</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(37.5</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Accrued interest receivable
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,105.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(733.4</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,750.6</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(84.3</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Other assets
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,675.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,033.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(12,162.5</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(273.4</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Accrued interest payable
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,731.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,677.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,421.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Accrued expense and other liabilities
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,190.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(19,818.7</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,444.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">594.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR><TD align="left" valign="top">&nbsp;</TD></TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:90px; text-indent:-15px">Net cash provided by operating activities
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40,255.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,744.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,616.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">733.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD style="border-top: 3px double #000000">&nbsp;</TD>
    <TD style="border-top: 3px double #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD style="border-top: 3px double #000000">&nbsp;</TD>
    <TD style="border-top: 3px double #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD style="border-top: 3px double #000000">&nbsp;</TD>
    <TD style="border-top: 3px double #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Cash flows from investing activities:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net change in term placements
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,182.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,134.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,544.2</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(34.7</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Purchase of subsidiary
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Activity in available for sale securities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Purchases
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(265,970.2</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(153,898.8</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(170,373.4</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,830.3</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Proceeds from sales
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">209,229.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">96,986.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62,820.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,412.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Maturities, prepayments and calls
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,626.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,543.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33,299.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">748.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Activity in held to maturity securities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Purchases
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(78,592.0</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(11,888.8</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Maturities, prepayments and calls
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">79,721.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,792.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net change in repurchase option and reverse repurchase option
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(24,550.0</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,950.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4,200.0</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(94.4</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Proceeds from loans securitized
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,917.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48,234.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,733.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">443.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Loans purchased</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6,180.7</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(18,309.8</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8,952.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(201.3</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Repayments on loans purchased</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,233.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,621.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,216.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">117.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Increase in loans originated, net of principal collections
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(63,818.4</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(127,777.5</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(159,840.8</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,593.5</TD>
    <TD nowrap>)</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Additions to property and equipment
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,143.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,442.8</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,752.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(84.4</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Proceeds from sale or disposal of property and equipment
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Net cash used in investing activities
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(117,320.4</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(106,315.5</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(227,387.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,112.1</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD style="border-top: 3px double #000000">&nbsp;</TD>
    <TD style="border-top: 3px double #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD style="border-top: 3px double #000000">&nbsp;</TD>
    <TD style="border-top: 3px double #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD style="border-top: 3px double #000000">&nbsp;</TD>
    <TD style="border-top: 3px double #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Cash flows from financing activities:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Net increase in deposits
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">80,302.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59,480.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">193,762.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,356.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Net increase (decrease) in short-term borrowings
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,484.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,014.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,597.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">305.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Proceeds from issuance of debt
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,000.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,020.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">270.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Repayments of debt
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(30.0</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,057.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(19.5</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.4</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Proceeds from issuance of equity shares for options exercised
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">203.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">659.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">625.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Proceeds from issuance of shares
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,747.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Proceeds from applications received for shares pending allotment
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">125.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">423.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Payment of dividends and dividend tax
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(955.7</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,131.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,597.1</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(35.9</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Net cash provided by financing activities
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">86,130.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">109,136.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">218,389.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,909.9</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD style="border-top: 3px double #000000">&nbsp;</TD>
    <TD style="border-top: 3px double #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD style="border-top: 3px double #000000">&nbsp;</TD>
    <TD style="border-top: 3px double #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD style="border-top: 3px double #000000">&nbsp;</TD>
    <TD style="border-top: 3px double #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net change in cash
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,065.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,565.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,618.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">531.0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash and cash equivalents, beginning of year
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,944.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33,010.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,575.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">844.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Cash and cash equivalents, end of year</B></DIV></TD>

    <TD>&nbsp;</TD>
    <TD align="left">Rs.</TD>
    <TD align="right" nowrap> 33,010.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.</TD>
    <TD align="right" nowrap> 37,575.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.</TD>
    <TD align="right" nowrap> 61,194.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">US$</TD>
    <TD align="right">1,375.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD style="border-top: 3px double #000000">&nbsp;</TD>
    <TD style="border-top: 3px double #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD style="border-top: 3px double #000000">&nbsp;</TD>
    <TD style="border-top: 3px double #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD style="border-top: 3px double #000000">&nbsp;</TD>
    <TD style="border-top: 3px double #000000">&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Supplementary cash flow information:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest paid
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.</TD>
    <TD align="right" nowrap> 14,819.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.</TD>
    <TD align="center">11,543.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.</TD>
    <TD align="right" nowrap> 17,200.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">US$</TD>
    <TD align="right">386.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Income taxes paid
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.</TD>
    <TD align="right" nowrap>   2,843.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.</TD>
    <TD align="right" nowrap>  3,719.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.</TD>
    <TD align="right">5,421.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">US$</TD>
    <TD align="right">121.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR><TD align="left" valign="top">&nbsp;</TD></TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Supplementary information on non cash transactions:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investments transferred from held to maturity to available for sale category
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.</TD>
    <TD align="right" nowrap>4.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.</TD>
    <TD align="right" nowrap>37,005.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.</TD>
    <TD align="right" nowrap>         &#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">US$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="center" style="font-size: 10pt; margin-top: 18pt">See accompanying notes to financial statements
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->F-5<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<!-- LANDSCAPE -->





<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>HDFC BANK LIMITED
</B></DIV>

<DIV align="left">
<A name="304"></A>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 0pt"><B>CONSOLIDATED STATEMENTS OF SHAREHOLDERS&#146; EQUITY<BR>
For each of the years ended March&nbsp;31, 2004, 2005 and 2006</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="19%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Advance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>received</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Accumulated</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Additional paid</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>pending</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Deferred stock-</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>other</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Total</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Number of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Equity share</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>in</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>allotment of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Retained</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Statutory</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>based</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>comprehensive</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Shareholders&#146;</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Equity shares</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>capital</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>capital</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>shares</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Earnings</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>reserve</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>compensation</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>income (loss)</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>equity</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="35"><B>(In millions, except for equity shares)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Balance at March&nbsp;31, 2003</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">279,718,938</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">2,797.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">11,758.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">146.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">6,532.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">3,249.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">(60.2</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">1,688.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">26,113.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shares issued upon exercise of
options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,125,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">318.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(146.5</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">203.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stock options granted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">449.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(449.5</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dividends, including dividend
tax</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(955.7</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(955.7</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Advance received pending
allotment of shares
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">125.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">125.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Amortization of deferred stock
based compensation </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">135.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">135.1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Transfer to statutory reserve</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,273.8</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,273.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="37" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Sub Total
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">282,844,438</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,828.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,527.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">125.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,302.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,523.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(374.6</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,688.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,621.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="37" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,754.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,754.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unrealized loss reclassified
to earnings </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(582.2</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(582.2</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Change in the unrealized gain
on available for sale
securities, net
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,421.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,421.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="37" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Balance at March&nbsp;31, 2004</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">282,844,438</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">2,828.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">12,527.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">125.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">9,057.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">4,523.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">(374.6</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">2,528.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">31,215.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="37" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shares issued upon exercise of
options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,106,775</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">743.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(125.5</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">659.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shares issued in public
offering</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,924,095</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">229.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,518.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,747.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dividends, including dividend
tax </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,131.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,131.3</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Advance received pending
allotment of shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">423.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">423.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Amortization of deferred stock
based compensation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">308.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">308.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Transfer to statutory reserve
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,663.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,663.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="37" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Sub Total
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">309,875,308</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,098.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,789.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">423.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,261.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,187.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(66.1</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,528.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,223.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="37" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,609.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,609.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unrealized gains on securities
transferred from held to maturity to available for sale
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">558.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">558.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unrealized loss reclassified
to earnings </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(773.4</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(773.4</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Change in the unrealized gain
on available for sale
securities, net
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,280.2</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,280.2</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="37" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Balance at March&nbsp;31, 2005</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">309,875,308</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">3,098.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">25,789.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">423.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">12,871.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">6,187.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">(66.1</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">1,033.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">49,338.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="37" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shares issued upon exercise of
options </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,267,100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,016.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(423.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">625.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Dividends, including dividend
tax </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,597.1</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,597.1</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Amortization of deferred stock
based compensation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Transfer to statutory reserve
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(2,177.0</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,177.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="37" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Sub Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">313,142,408</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,131.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,805.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,097.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,364.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(19.5</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,033.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48,413.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="37" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,187.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,187.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unrealized gain reclassified
to earnings </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(80.6</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(80.6</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Change in the unrealized gain
on available for sale
securities, net
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(2,252.4</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(2,252.4</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="37" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Balance at March&nbsp;31, 2006</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">313,142,408</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">3,131.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">26,805.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">18,284.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">8,364.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">(19.5</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">(1,299.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">55,267.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="37" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Balance at March&nbsp;31, 2006</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$</TD>
    <TD align="right">70.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$</TD>
    <TD align="right">602.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$</TD>
    <TD align="right">411.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$</TD>
    <TD align="right">188.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">US$</TD>
    <TD align="right">(0.4</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">US$</TD>
    <TD align="right">(29.2</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$</TD>
    <TD align="right">1,242.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="37" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">See accompanying notes to financial statements
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-6<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="305"></A>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>1.&nbsp;The Bank</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HDFC Bank Limited (the &#145;&#145;Bank&#146;&#146;) was incorporated in August&nbsp;1994 with its registered office
in Mumbai, India. The Bank is a banking company governed by India&#146;s Banking Regulations Act,
1949. The Bank&#146;s shares are listed on the Bombay Stock Exchange
Ltd., The National Stock Exchange of
India Limited and its ADSs are listed on the New York Stock
Exchange.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank&#146;s largest shareholder is Housing Development Finance Corporation Limited (&#147;HDFC
Limited&#148;), which, along with its subsidiaries, controls 22.0%
(previous year 22.2%) of the Bank&#146;s equity. The balance
of the Bank&#146;s equity is widely held by the public and by foreign and Indian institutional
investors.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank&#146;s principal business activities are retail banking, wholesale banking and treasury
operations. The Bank&#146;s retail banking division provides a variety of deposit products as well as
loans, credit cards, debit cards, third party mutual funds and insurance, investment advisory
services and depositary services. Through its wholesale banking operations, the Bank provides
loans, deposit products, documentary credits, guarantees, bullion trading, foreign exchange,
and derivative products. It also provides cash management services, clearing and settlement
services for stock exchanges, tax and other collections for the government, custody services for
mutual funds and correspondent banking services. The Bank&#146;s treasury group manages its debt
securities and money market operations and its foreign exchange and derivative products.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>2.&nbsp;Summary of Significant Accounting Policies</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>a.&nbsp;Principles of Consolidation</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The consolidated financial statements include the accounts of HDFC Bank Limited and its
subsidiaries. The Bank consolidates subsidiaries in which, directly or indirectly, it holds more
than 50% of the voting rights or exercises control. Entities where the Bank holds 20% to
50% of the voting rights and/or has the ability to exercise significant influence are accounted
for under the equity method, and the pro rata share of their income (loss)&nbsp;is included in income.
Income from investments in less than 20% owned companies is recognized when dividends are
received. The Bank consolidates entities deemed to be Variable Interest Entities (VIEs) where
the Bank is determined to be the primary beneficiary under FASB Interpretation No.&nbsp;46,
&#147;Consolidation of Variable Interest Entities&#148; (FIN 46(R)). All significant inter-company accounts
and transactions are eliminated on consolidation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>b</I>.&nbsp;<I>Basis of presentation</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These financial statements have been prepared in accordance with accounting principles
generally accepted in the United States of America (&#145;&#145;US GAAP&#146;&#146;). US GAAP differs in certain
material respects from accounting principles generally accepted in India, the requirements of
India&#146;s Banking Regulations Act and related regulations issued by the Reserve Bank of India
(&#145;&#145;RBI&#146;&#146;) (collectively &#145;&#145;Indian
GAAP&#146;&#146;), which form the basis of the statutory general purpose
financial statements of the Bank in India. Principal differences insofar as they relate to the
Bank include: determination of the allowance for credit losses; classification and valuation of
investments; accounting for deferred income taxes, stock-based compensation, employee benefits,
loan origination fees and derivative financial instruments, and the presentation format and disclosures of
the financial statements and related notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>c</I>.&nbsp;<I>Use of Estimates</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The preparation of financial statements in conformity with US GAAP requires management to
make estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosures of contingent assets and liabilities at the date of these financial statements and
the reported amounts of revenues and expenses for the years presented. Actual results could
differ from these estimates. Material estimates included in these financial statements that are
susceptible to change include the allowance for credit losses and the valuation of unlisted
investments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>d</I>.&nbsp;<I>Cash and cash equivalents</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank considers all highly liquid financial instruments, which are readily convertible
into cash and have original
maturities of three months or less on the date of purchase, to be cash equivalents.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->F-7<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>e.&nbsp;Customer acquisition costs</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Customer acquisition costs principally consist of commissions paid to third party referral
agents who obtain retail loans and such costs are deferred and amortized as a yield adjustment
over the life of the loans. Advertising and marketing expenses incurred to solicit new business
are expensed as incurred.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>f</I>.&nbsp;<I>Investments in securities</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments consist of securities purchased as part of the Bank&#146;s treasury operations, such
as government securities and other debt and equity securities, and, investments purchased as part
of the Bank&#146;s wholesale banking operations, such as credit substitute securities issued by the
Bank&#146;s wholesale banking customers.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Credit substitute securities typically consist of commercial paper, short-term debentures
and preference shares issued by the same customers with whom the Bank has a lending relationship
in its wholesale banking business. Investment decisions for credit substitute securities are
subject to the same credit approval processes as for loans, and the Bank bears the same customer
credit risk as it does for loans extended to those customers. Additionally, the yield and
maturity terms are generally directly negotiated by the Bank with the issuer. As the Bank&#146;s
exposures to such securities are similar to its exposures on its loan portfolio, additional
disclosures have been provided on impairment status in Note 8 and on concentrations of credit
risk in Note 12.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All other securities including mortgage and asset-backed securities are actively managed as
a part of the Bank&#146;s treasury operations. The issuers of such securities are either the
government, public financial institutions or private issuers. These investments are typically
purchased from the market, and debt securities are generally publicly rated.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities that are held principally for resale in the near term are classified as held for
trading (&#147;HFT&#148;) and are carried at fair value, with changes in fair value recorded in earnings.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt securities that management has the positive intent and ability to hold
to maturity are classified as held to maturity (&#147;HTM&#148;) and are carried at amortized cost.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity securities with readily determinable fair values and all debt
securities that are not classified as HTM or HFT are classified as available for sale (&#147;AFS&#148;) and
are carried at fair value. Unrealized gains and losses on such securities, net of applicable
taxes, are reported in accumulated other comprehensive income (loss), a separate component of
shareholders&#146; equity.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fair values are based on market quotations where a market quotation is available or
otherwise based on present values at current interest rates for such investments.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Where management determines that an HTM security&#146;s credit rating has been irrevocably
downgraded, and continued holding to maturity is likely to result in increased losses, it
transfers the security to AFS or sells the security at the best available price.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transfers between categories are recorded at fair value on the date of the
transfer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>g. Impairment of securities</I>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left:2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Declines in the fair values of held to maturity and available for sale
securities below their cost that are other than temporary are reflected in earnings as realized
losses, based on management&#146;s best estimate of the fair value of the investment. The Bank
identifies other than temporary declines based on an evaluation of all significant factors,
including the length of time and extent to which fair value is less than cost and the financial
condition and economic prospects of the issuer. Estimates of any declines in the fair values of
credit substitute securities that are other than temporary are measured on a case-by-case basis
together with loans to those customers. The Bank does not recognize an impairment for debt
securities if the cause of the decline is related solely to interest rate increases and where the
Bank has the ability and intent to hold the security until the fair value recovers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left:2%"><I>h</I>.&nbsp;<I>Loans</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left:2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank grants retail and wholesale loans to customers.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->F-8<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans that management has the intent and ability to hold for the foreseeable
future or until maturity or payoff are reported at their outstanding unpaid principal balances
adjusted for an allowance for credit losses.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest is accrued on the unpaid principal balance and is included in
interest income. Loans are placed on &#147;non-accrual&#148; status when interest or principal payments are
past due for a specified period, at which time no further interest is accrued and overdue
interest is written off against interest income. Loans are returned to accrual status when all
principal and interest amounts contractually due are brought current and future payments are
reasonably assured. Loans are placed on &#147;non-accrual&#148; status when interest or
principal payments are one quarter past due in line with international practices.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>i</I>.&nbsp;<I>Allowance for credit losses</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank provides an allowance for credit losses based on management&#146;s best estimate of
losses inherent in the loan portfolio. The allowance for credit losses consists of allowances for
retail loans and wholesale loans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Retail</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank&#146;s retail loan loss allowance consists of specific and unallocated
allowances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank establishes a specific allowance on the retail loan portfolio based
on factors such as the nature of the product, delinquency levels or the number of days the loan is
past due, the nature of the security available and loan to value ratios. The loans are charged off
against allowances at defined delinquency levels.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank also makes unallocated allowances for its retail loans by product
type. The Bank&#146;s retail loan portfolio comprises groups of large numbers of small value homogeneous
loans. The Bank establishes an unallocated allowance for loans in each product group based on its
estimate of the expected amount of losses inherent in such product. In making such estimates, among
other factors considered, the Bank stratifies such loans based on the number of days past due and
takes into account historical losses for such product, the nature of security available and loan to
value ratios.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->F-9<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Wholesale</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The allowance for wholesale loans consists of specific and unallocated components. The
allowance for such credit losses is evaluated on a regular basis by management and is based upon
management&#146;s view of the probability of recovery of loans in light of historical experience, the
nature and volume of the loan portfolio, adverse situations that may affect the borrower&#146;s ability
to repay, the estimated value of any underlying collateral, factors affecting the industry which
the loan exposure relates to and prevailing economic conditions. This evaluation is inherently
subjective as it requires estimates that are susceptible to significant revision as more
information becomes available. Loans are charged off against the allowance when management believes
that the loan balance cannot be recovered. Subsequent recoveries, if any, are credited to the
provision.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank grades its wholesale loan accounts considering both qualitative and
quantitative criteria. Wholesale loans are considered impaired when, based on current information
and events, it is probable that the Bank will be unable to collect scheduled payments of principal
or interest when due according to the contractual terms of the loan agreement. Factors considered
by management in determining impairment include payment status, the financial condition of the
borrower, the value of collateral held, and the probability of collecting scheduled principal and
interest payments when due.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank establishes specific allowances for each impaired wholesale loan customer in the
aggregate for all facilities, including term loans, cash credits, bills discounted and lease
finance, based on either the present value of expected future cash flows discounted at the loan&#146;s
effective interest rate or the net realizable value of the collateral if the loan is collateral
dependent.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wholesale loans that experience insignificant payment delays and payment
shortfalls are generally not classified as impaired but are placed on a surveillance watch list and
closely monitored for deterioration. Management determines the significance of payment delays and
payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances
surrounding the loan and the borrower, including the length of the delay, the reasons for the
delay, the borrower&#146;s prior payment record, and the amount of the shortfall in relation to the
principal and interest owed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In light of the significant growth in the size
and diversity of its wholesale loan portfolio, the Bank has also established an unallocated allowance
for wholesale standard loans based on the overall portfolio quality, asset growth, economic
conditions and other risk factors. The Bank estimate its wholesale unallocated allowance based on
an internal credit slippage matrix, which measures the Bank&#146;s historic losses for its standard loan
portfolio.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>j. Sales/Transfer of Receivables</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank sells finance receivables to special purpose entities (&#147;SPEs&#148;) in securitization
transactions. Recourse is in the form of the Bank&#146;s investment in subordinated securities issued by
these SPEs and cash collateral. Securitized receivables are derecognized in the balance sheet when
they are sold and consideration has been received by the Bank. Sales and transfers that do not meet
the criteria for surrender of control are accounted for as secured
borrowings. The Bank also enters into securitization transactions,
which are similar to asset-backed securitization transactions through
the SPE route, except that such portfolios of receivables are
assigned directly to the purchaser and are not represented by
pass-through certificates.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gains or losses from the sale of receivables are recognized in the period the
sale occurs based on the relative fair value of the portion sold and the portion allocated to
retained interests, and are reported net of the estimated cost of servicing by the Bank.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fair values are determined based on the present value of expected future cash
flows, using best estimates for key assumptions, such as prepayment and discount rates,
commensurate with the risk involved.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->F-10<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">For further information, see note 11.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>k</I>. <I>Property and equipment</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property and equipment are stated at cost, less accumulated depreciation. Depreciation is
provided over the estimated useful lives of fixed assets on a straight-line basis at the
following rates:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Type of Asset</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Rate of depreciation</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Buildings
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.61</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Leasehold improvements
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="center">Lower of asset life or period of lease</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ATMs
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">12.50</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Very small aperture terminals (&#147;VSATs&#148;)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">10.00</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Office equipment
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">16.21</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Computer equipment
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">33.33</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Motor cars
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">25.00</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Software and system development expenditure
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">25.00</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Assets at the residence of executives of the
Bank </DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">25.00</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>l</I>. <I>Impairment or disposal of tangible long lived assets</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Whenever events or circumstances indicate that the carrying amount of tangible long lived
assets may not be recoverable, the Bank subjects such long lived assets to a test of
recoverability based on the undiscounted cash flows from use or disposition of the asset. Such
events or circumstances would include changes in the market, technology obsolescence, adverse
changes in profitability or regulation. If the asset is impaired, the Bank recognizes an
impairment loss estimated as the difference between carrying value and the net realizable value.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>m</I>. <I>Foreclosed or repossessed assets</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assets acquired through or in lieu of foreclosure or through repossession are generally held
for sale and initially recorded at fair value on the date of foreclosure or repossession. On
subsequent dates, such assets are periodically evaluated by management for changes in fair value,
and are carried at the lower of the fair value on the date of foreclosure or repossession and the
net realizable value on the balance sheet date. Net realizable value represents the anticipated
sale price less the estimated costs of disposal. Revenues and expenses from the operation of such
assets and changes in the fair value are included in earnings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>n</I>. <I>Income tax</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax consists of the current tax provision and the net change in the deferred
tax asset or liability in the year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax assets and liabilities are recognized for the future tax
consequences of temporary differences between the carrying values of assets and liabilities and
their respective tax bases and operating loss carry forwards. Deferred tax assets are recognized
subject to management&#146;s judgment that realization is more likely than not. Deferred tax assets
and liabilities are measured using enacted tax rates expected to apply to taxable income in the
years in which the temporary differences are expected to be received or settled. The effect on
deferred tax assets and liabilities of a change in tax rates is recognized in the income
statement in the period of enactment of the change.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>o</I>. <I>Revenue recognition</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income from loans and from investments in finance leases is recognized on an
accrual basis when earned except in respect of loans or finance leases placed on non-accrual
status, where it is recognized when received. The Bank generally does not charge upfront loan
origination fees. Nominal application fees are charged which offset the related costs incurred.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fees and commissions from guarantees issued are amortized over the contractual period of the
commitment, provided the
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->F-11<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">amounts are collectible.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends are recognized when declared.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized gains and losses on sales of securities are recorded on the trade date and are
determined using the weighted average cost method.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other fees and income are recognized when earned, which is when the service that results in
the income has been provided.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank amortizes annual fees on credit cards over the contractual period of the fees.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. Foreign currency transactions</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank&#146;s functional currency is the Indian rupee. Foreign currency transactions are
recorded at the exchange rate prevailing on the date of the transaction. Foreign currency
denominated monetary assets and liabilities are converted into Indian rupees using exchange rates
prevailing on the balance sheet dates. Gains and losses arising on conversion of foreign currency
denominated monetary assets and liabilities and on foreign currency transactions are included in
the determination of net income.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>q</I>. <I>Stock-Based Compensation</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank has elected to use the intrinsic value method to account for the compensation cost
of stock options and awards granted to employees of the Bank. The Bank uses the fair value
approach for any options that are granted to individuals who do not qualify as employees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Had compensation cost for the Bank&#146;s stock option plans been determined based on the fair
value approach, the Bank&#146;s net income and earnings per share would have been as per the pro forma
amounts indicated below:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="38%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>Years ended March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15"><B>(In millions, except per share amounts)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net Income: </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>As reported</I></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">4,754.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">6,609.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">9,187.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">206.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Add: Stock-based employee compensation expense included in
net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>As reported</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">135.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">308.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less: Stock-based compensation expense determined under
fair value based method : </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>Pro forma</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(293.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,209.4</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,276.5</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(28.7</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net Income:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>Pro forma</I></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">4,596.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">5,708.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">7,957.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">178.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Basic earnings per share
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>As reported</I></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">16.87</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">22.78</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">29.45</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">0.66</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>Pro forma</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16.31</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19.68</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25.51</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.57</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Diluted earnings per share
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>As reported</I></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">16.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">22.60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">29.08</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">0.65</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>Pro forma</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19.52</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25.19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.57</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Basic earnings per ADS
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>As reported</I></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">50.61</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">68.34</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">88.36</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">1.99</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>Pro forma</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48.93</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59.04</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">76.53</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.72</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Diluted earnings per ADS
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>As reported</I></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">50.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">67.80</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">87.24</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">1.96</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>Pro forma</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48.42</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58.56</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75.56</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.70</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-12<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The fair value of options used to compute <I>pro forma </I>net income and basic earnings per
equity share have been estimated on the dates of each grant using a binomial option pricing model
with the following assumptions:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>Years ended March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
    <TD>&nbsp;</TD>

<TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005*</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dividend yield </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.9</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.7</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Expected volatility </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">45.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">21.25</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Risk&#151;free interest rate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">ESOS Plan</DIV></TD>
    <TD>&nbsp;</TD>

<TD colspan="3" align="center"><FONT style="white-space: nowrap">4.4%
&#150; 4.5%</FONT></TD>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

<TD colspan="3" align="center"><FONT style="white-space: nowrap">6.1%
&#150; 6.6%</FONT></TD>

</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">EWT Plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">4.5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Expected lives:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">ESOS Plan </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">EWT Plan </DIV></TD>
    <TD>&nbsp;</TD>

<TD colspan="3" align="center"><FONT style="white-space: nowrap">7.1
years</FONT></TD>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

<TD colspan="3" align="center"><FONT style="white-space: nowrap">1
&#150; 7 years</FONT></TD>

</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center"><FONT style="white-space: nowrap">1.2 &#150; 2.2 years</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left" style="font-size: 8pt; margin-top: 1pt; margin-left:1%">*&nbsp;No
options were granted in the year 2005.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left:2%"><I>r</I>. <I>Debt issuance costs</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Issuance costs of long-term debt are amortized over the tenure of the debt.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left:2%"><I>s</I>. <I>Earnings per share</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic earnings per equity share has been computed by dividing net income by the weighted
average number of equity shares outstanding for the period. For the purpose of determining the
weighted average number of equity shares outstanding, the Bank treats advances received from
optionees who exercise their options as issued shares even if the administrative formalities of
allocating equity shares have not been completed. Diluted earnings per equity share has been
computed using the weighted average number of equity shares and dilutive potential equity shares
outstanding during the period, using the treasury stock method for options, except where the
result would be anti-dilutive. The Bank also reports basic and diluted earnings per ADS, where
each ADS represents three equity shares. Earnings per ADS has been computed as earnings per
equity share multiplied by the number of equity shares per ADS. A reconciliation of the number of shares used in computing earnings per share has been provided in Note 29.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left:2%"><I>t</I>. <I>Segment information</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank operates in three reportable segments, namely retail banking, wholesale banking and
treasury services. Segment-wise information has been provided in Note 25.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left:2%"><I>u</I>. <I>Derivative Financial Instruments</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank recognizes all derivative instruments, including certain derivative instruments
embedded in other contracts, as assets or liabilities in the balance sheet and measures them at
fair value, unless those instruments qualify to be accounted for as hedge contracts. For a
derivative not designated as a hedging instrument, changes in fair value are recognized in net
income in the period of change.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain forward exchange contracts and currency swaps qualify as hedges of the
foreign currency exposure of a foreign currency denominated transaction. The timing of the
recognition of the gain or loss on such hedge contracts matches the recognition of the changes in
the fair value of the item being hedged in net income.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank enters into forward exchange contracts, currency swaps and currency
options with its customers and typically lays off such customer exposures in the inter-bank foreign
exchange markets. The Bank also enters into such instruments to cover its own foreign exchange
exposures. All such instruments are carried at fair value, determined based on market quotations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank enters into rupee interest rate swaps for its own account. The Bank
also enters into interest rate currency swaps and cross currency interest rate swaps with its
customers and typically lays these off in the inter-bank market. Such contracts are carried on the
balance sheet at fair value, based on market quotations where available or priced using market
determined yield curves.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->F-13<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>v</I>. <I>New Accounting Pronouncements</I>
</DIV>





<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In November&nbsp;2003, the Financial Accounting Standards Board (&#147;FASB&#148;) ratified a consensus on the
disclosure provisions of Emerging Issues Task Force (&#147;EITF&#148;) Issue 03-1, &#147;The Meaning of
Other-Than-Temporary Impairment and Its Application to Certain Investments.&#148; In March&nbsp;2004, the
FASB reached a consensus regarding the application of a three-step impairment model to determine
whether investments accounted for in accordance with SFAS No.&nbsp;115, &#147;Accounting for Certain
Investments in Debt and Equity Securities,&#148; and other cost method investments are
other-than-temporarily impaired. However, with the issuance of FASB Staff Position EITF 03-1-1, the
provisions of the consensus relating to the measurement and recognition of other-than-temporary
impairments have been deferred pending reassessment by the FASB. The remaining provisions of this
standard, which primarily relate to disclosure, are required to be applied prospectively to all
current and future investments accounted for in accordance with SFAS No.&nbsp;115 and other cost method
investments. The Bank has complied with the disclosure provisions of this standard.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In December&nbsp;2004, the FASB issued SFAS No.&nbsp;123(R), Share-Based Payment, which establishes
accounting standards for all transactions in which an entity exchanges its equity instruments for
goods and services. SFAS No.&nbsp;123(R) focuses primarily on accounting for transactions with
employees, and carries forward without change prior guidance for share-based payments for
transactions with non-employees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SFAS No.&nbsp;123(R) eliminates the intrinsic value alternative in APB Opinion 25 and generally requires
the Bank to measure the cost of employee services received in exchange for an award of equity
instruments based on the fair value of the award on the date of the grant. The standard requires
grant date fair value to be estimated using either an option-pricing model, which is consistent
with the terms of the award, or a market observed price, if such a price exists. Such cost must be
recognized over the period during which an employee is required to provide service in exchange for
the award &#151; the requisite service period (which is usually the vesting period). The standard also
requires the Bank to estimate the number of instruments that will ultimately be issued, rather than
accounting for forfeitures as they occur.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank is required to apply SFAS No.&nbsp;123(R) to all awards granted, modified or settled in our
first reporting period under U.S. GAAP after June&nbsp;15, 2006. The Bank is also required to use either
the &#147;modified prospective method&#148; or the &#147;modified retrospective method.&#148; Under the modified
prospective method, the Bank must recognize compensation cost for all awards after the Bank adopts
the standard and for the unvested portion of previously granted awards that are outstanding on that
date.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the modified retrospective method, the Bank must restate its previously issued financial
statements to recognize the amounts the Bank previously calculated and reported on a pro forma
basis, as if the prior standard had been adopted.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under both methods, we are permitted to use either a straight line or an accelerated method to
amortize the cost as an expense. The standard permits and encourages early adoption.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank intends to follow prospective method. If the Bank were to adopt SFAS No.&nbsp;123(R) using the
modified retrospective method, its net income would have been Rs. 900.9&nbsp;million less than reported
in the year ended March&nbsp;31,2005 and Rs. 1,229.9&nbsp;million less than reported in the fiscal year ended
March&nbsp;31, 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FASB Statement No.&nbsp;154, Accounting Changes and Error Corrections<I>, </I>a replacement of APB Opinion No.
20 and FASB Statement No.&nbsp;3, requires retrospective application to prior periods&#146; financial
statements of changes in accounting principle, unless it is impracticable to determine either the
period-specific effects or the cumulative effect of the change. FASB Statement No.&nbsp;154, Accounting
Changes and Error Corrections<I>, </I>will not have a material effect on the Bank&#146;s financial position or
results of operation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In February&nbsp;2006, the FASB issued SFAS No.&nbsp;155 &#147;Accounting for Certain Hybrid Instruments&#148; which
permits, but does not require, fair value accounting for any hybrid financial instrument that
contains an embedded derivative and would otherwise require bifurcation in accordance with SFAS
133. The statement is effective as of April&nbsp;1, 2007. The adoption of SFAS no. 155 is not expected
to have a material impact on the future Consolidated Financial Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In March&nbsp;2006, the FASB issued SFAS No.156, &#147;Accounting for Servicing of Financial Assets, an
amendment to FASB Statement No.&nbsp;140&#148;, which permits but does not require an entity to account for
one or more classes of servicing rights at fair value, with changes in fair value recorded in
Consolidated Statement of Income. The statement is effective April&nbsp;1, 2007. The bank is currently
evaluating this standard to determine whether it will have a material effect on the bank&#146;s future
financial position or results of operation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In September&nbsp;2006, the FASB issued SFAS No.157, &#147;Fair Value Measurements&#148;. This statement
defines fair value, establishes a framework for measuring fair value in generally accepted
accounting principles (GAAP), and expands disclosures about fair value measurements. This statement
applies under other accounting pronouncements that require or permit fair value measurements. The
statement is effective November&nbsp;2007. The bank is currently evaluating this standard to determine
whether it will have a material effect on the bank&#146;s future financial position or results of
operation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In June&nbsp;2006, the FASB issued FIN No.&nbsp;48, &#147;Accounting for uncertainty in Income Taxes- an
interpretation of FASB statement No.&nbsp;109&#148;. This Interpretation clarifies the accounting for
uncertainty in income taxes recognized in accordance with FASB Statement No.&nbsp;109, Accounting for
Income Taxes. This Interpretation prescribes a recognition threshold and measurement attribute for
the financial statement recognition and measurement of a tax position taken or expected to be taken
in a tax return besides it also provides guidance on several other similar issues. This
interpretation is effective December&nbsp;2006. The bank is currently
evaluating this standard to determine whether it will have a material
effect on the bank&#146;s future financial position or result of its
operations.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>




<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>w</I>.&nbsp;<I>Convenience Translation</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
accompanying financial statements have been expressed in Indian rupees (&#147;Rs. &#148;), the Bank&#146;s
functional currency. For the convenience of the reader, the financial statements as of and for
the year ended March&nbsp;31, 2006 have been translated into U.S.
dollars at US$ 1.00 = Rs. 44.48
based on the noon buying rate for cable transfers on March&nbsp;31, 2006 as certified for customs
purposes by the Federal Reserve Bank of New York. Such translation should not be construed as a
representation that the rupee amounts have been or could be converted into United States dollars
at that or any other rate, or at all.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>x.&nbsp;&nbsp;Reclassifications</I></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain
amounts in fiscal 2004 and fiscal 2005 have been reclassified to
conform to the presentation in fiscal 2006. These reclassifications
have no effect on the stockholders&#146; equity or net income as
previously reported.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left:2%"><B>3.&nbsp;Cash and cash equivalents</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left:2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents as of March&nbsp;31, 2005 and 2006 include balances of Rs. 22,965.6
million, Rs. 27,989.0&nbsp;million respectively, maintained with the RBI to meet the Bank&#146;s cash
reserve ratio requirement. This balance is subject to withdrawal and usage restrictions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left:2%"><B>4.&nbsp;Term placements</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left:2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Term
placements consist of placements with banks and financial institutions in the ordinary
course of business. These placements have original maturities for periods between 3&nbsp;months and 7
years.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->F-14<!-- /Folio -->

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>5.&nbsp;Investments, held for trading</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The portfolio of trading securities at March&nbsp;31, 2005 and 2006 is as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>As of March 31, 2005</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Amortized</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Fair</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Cost</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>gains</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>

    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Losses</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Value</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15"><B>(In millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Government of India
securities
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">1,278.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">1,278.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">1,278.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">1,278.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>As of March 31, 2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Amortized</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Fair</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Cost</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>gains</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>losses</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Value</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15"><B>(In millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Government of India
securities
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">2,948.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">6.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">8.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">2,945.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">2,948.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">6.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">8.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">2,945.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>


<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">US$&nbsp;</TD>
    <TD align="right">66.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">US$&nbsp;</TD>
    <TD align="right">0.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">US$&nbsp;</TD>
    <TD align="right">0.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">US$&nbsp;</TD>
    <TD align="right">66.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>


<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>6. Investments, available for sale</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The portfolio of available for sale securities at March&nbsp;31, 2005 and 2006 is as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>As of March 31, 2005</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Amortized</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Fair</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>cost</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>gains</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>losses</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>value</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15"><B>(In millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Government of India
securities
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">110,997.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">1,015.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">657.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">111,355.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities issued
by Government of
India sponsored
institutions
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,010.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">592.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">134.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,468.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">State government
securities
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">484.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">472.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities issued
by state government
sponsored
institutions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">349.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">373.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Credit substitutes
(See Note 8)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,372.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">554.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,880.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate bonds
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">588.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">588.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Fixed
maturity
investments
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150,802.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,188.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">853.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">152,138.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage-backed
securities
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,441.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">111.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,481.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Asset-backed
securities
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,611.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">329.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">201.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,739.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Equity securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">291.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">338.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mutual fund units</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,586.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,595.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">202,733.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">2,694.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">1,135.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">204,292.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities with
gross unrealized
losses
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">103,551.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities with
gross unrealized
gains
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100,741.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">204,292.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->F-15<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>As of March 31, 2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Amortized</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Fair</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>cost</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>gains</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>losses</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>value</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15"><B>(In millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Government of India
securities
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.&nbsp;</TD>
    <TD align="right">189,200.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.&nbsp;</TD>
    <TD align="right">405.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.&nbsp;</TD>
    <TD align="right">1,945.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.&nbsp;</TD>
    <TD align="right">187,661.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities issued
by Government of
India sponsored
institutions
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,772.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">105.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">450.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,426.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">State government
securities
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">459.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">447.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities issued
by state government
sponsored
institutions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">315.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">321.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Credit substitutes
(See Note 8)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,625.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">170.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,751.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate bonds
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">149.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Fixed
maturity
investments
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">227,523.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">687.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,454.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">225,756.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage-backed
securities
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,158.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">90.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">194.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,054.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Asset-backed
securities
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,338.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">247.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,126.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Equity securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">275.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">325.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mutual fund units</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,187.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,193.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.&nbsp;</TD>
    <TD align="right">275,482.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.&nbsp;</TD>
    <TD align="right">873.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.&nbsp;</TD>
    <TD align="right">2,899.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.&nbsp;</TD>
    <TD align="right">273,457.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>


<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">TOTAL</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>US$&nbsp;</TD>
    <TD align="right">6,193.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>US$&nbsp;</TD>
    <TD align="right">19.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>US$&nbsp;</TD>
    <TD align="right">65.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>US$&nbsp;</TD>
    <TD align="right">6,147.9</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities with
gross unrealized
losses
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.&nbsp;</TD>
    <TD align="right">197,275.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities with
gross unrealized
gains</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">76,181.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.&nbsp;</TD>
    <TD align="right">273,457.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>US$</TD>
    <TD align="right">6,147.9</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments include Rs. 24,017.3 as of March&nbsp;31, 2005 and Rs. 90,102.5 as of March&nbsp;31, 2006
respectively, which have been kept as margins for clearing, collateral borrowing and lending
obligation (CBLO)&nbsp;and real time gross settlement (RTGS). These have been kept with the Clearing
Corporation of India Limited and RBI.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank conducts a review each year to identify and evaluate investments that have
indications of possible impairment. An investment in an equity or debt security is impaired if its
fair value falls below its cost and the decline is considered other than temporary. Factors
considered in determining whether a loss is temporary include length of time and extent to which
fair value has been below cost, the financial condition and near term prospects of the issuer, and
the Bank&#146;s ability and intent to hold the investment for a period sufficient to allow for any
anticipated recovery. The Bank evaluated the unrealized loss on its
investment and has fully recognized
an expense of Rs. 714.3&nbsp;million (previous year: nil) as other
than temporary impairment in fiscal 2006. The Bank believes that the
other unrealized losses on its investments in equity and debt securities as of March&nbsp;31, 2006 are
temporary in nature. The Bank&#146;s review of impairment generally entails:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>identification and evaluation of investments that have indications of possible impairment;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>analysis of individual investments that have fair values of
less than 95% of amortized cost, including consideration of the length of time the investment has
been in an unrealized loss position;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>analysis of evidential matter, including an evaluation of factors or triggers that would
or could cause individual investments to have other-than temporary impairment; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>documentation of the results of these analyses, as required under business policies.</TD>
</TR>

</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-16<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The gross unrealized losses and fair value of available for sale securities at March&nbsp;31,
2006 is as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>As of March 31, 2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 0px solid #000000"><B>Less Than 12 months</B></TD>
    <TD>&nbsp;</TD>

<TD nowrap align="center" colspan="7" style="border-bottom: 0px solid #000000"><B>12
months or greater</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Unrealized</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Fair Value</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Unrealized losses</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Fair Value</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>losses</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15"><B>(In millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 0px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Government of India securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.&nbsp;</TD>
    <TD align="right">134,447.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.&nbsp;</TD>
    <TD align="right">1,945.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities issued by Government
of India sponsored institutions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,926.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">450.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">State government securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">386.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities issued by state
government sponsored institutions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Credit substitutes (See Note 8)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,556.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Bonds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">149.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Fixed maturity investments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">159,469.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,454.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage-backed securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,147.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">194.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Asset-backed securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,227.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">247.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Equity securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mutual fund units</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">383.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.&nbsp;</TD>
    <TD align="right">197,275.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.&nbsp;</TD>
    <TD align="right">2,899.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>US$&nbsp;</TD>
    <TD align="right">4,435.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>US$&nbsp;</TD>
    <TD align="right">65.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>US$&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>US$&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The contractual residual maturity of fixed maturity available for sale securities as of
March&nbsp;31, 2006 is set out below:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>As of March 31, 2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Amortized cost</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Fair value</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Fair value</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11"><B>(In millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Within one year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">33,839.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">33,853.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">761.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Over one year through five years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">109,395.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">108,415.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,437.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Over five years through ten years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58,688.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58,216.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,308.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Over ten years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,598.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,272.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">568.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">227,523.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">225,756.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">5,075.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AFS
investments of Rs. 64,924.5&nbsp;million, Rs. 111,827.4&nbsp;million and Rs. 188,108.4
million as of March&nbsp;31, 2004, March&nbsp;31, 2005 and March&nbsp;31, 2006, respectively, are held to
meet the Bank&#146;s statutory liquidity ratio requirements. These balances are subject to
withdrawal and usage restrictions, but may be freely traded by the Bank within those
restrictions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest and dividends on available for sale securities and gross realized gains and
gross realized losses from sales of such securities are set out below:
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-17<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>Year ended March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15"><B>(In millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross realized gains on sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">710.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">1,349.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">694.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>US$&nbsp;</TD>
    <TD align="right">15.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross realized losses on sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(758.6</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,155.6</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(274.0</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(6.2</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Realized gains (losses), net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(48.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">194.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">420.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dividends and interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,604.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,605.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,969.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">291.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">8,556.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">10,800.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">13,389.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>US$&nbsp;</TD>
    <TD align="right">301.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>7.&nbsp;Investments, held to maturity</B>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There were no HTM securities as of March&nbsp;31, 2005 and March&nbsp;31, 2006.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest
on held to maturity securities is Rs.&nbsp;2,882.5&nbsp;million for
2004, Rs.&nbsp;793.4 million for 2005 and nil for 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the year ended March&nbsp;31, 2005, because interest rates were rising in the Indian market,
the Bank elected to transfer investments with a fair value of Rs. 11.2&nbsp;billion from its HTM
portfolio to its AFS portfolio because these investments were yielding higher than prevailing
market yields. This
transfer was permitted by RBI regulations. However, under U.S. GAAP, the Bank&#146;s HTM portfolio was deemed &#147;tainted&#148; and the Bank was
required to re-classify the remaining HTM portfolio as AFS. The Bank is not permitted to establish
a new HTM portfolio under U.S. GAAP until after March&nbsp;31, 2007 and, accordingly, the Bank&#146;s
investment classification under U.S. GAAP and Indian GAAP could vary materially in the future.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This reclassification resulted in an increase to shareholders&#146; equity of Rs. 1,222.2&nbsp;million
and had no impact on net income during the year ending March
31, 2005.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>8. Credit Substitutes</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Credit substitutes consist of securities that the Bank invests in as part of an overall
extension of credit to certain customers. Such securities share many of the risk and reward
characteristics of loans and are managed by the Bank together with other facilities extended to the
same customers. The fair values of credit substitutes by type of instrument as of March&nbsp;31, 2005,
March&nbsp;31, 2006 are as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>As of March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Amortized cost</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Fair value</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Amortized cost</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Fair value</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15"><B>(In millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Available for sale credit
substitute securities:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Debentures</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">11,508.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">12,018.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.&nbsp;</TD>
    <TD align="right">9,183.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.&nbsp;</TD>
    <TD align="right">9,308.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Preferred shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">566.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">564.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">442.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">443.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Commercial paper</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,297.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,297.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">13,372.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">13,880.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.&nbsp;</TD>
    <TD align="right">9,625.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>Rs.&nbsp;</TD>
    <TD align="right">9,751.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>


<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>US$&nbsp;</TD>
    <TD align="right">216.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap>US$&nbsp;</TD>
    <TD align="right">219.2</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->F-18<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
bank has no credit substitutes in the held to maturity
category.</div>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The fair values of credit substitutes have been analyzed as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>As of March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>

</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11"><B>(In millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Performing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">13,845.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">9,751.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">219.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Impaired&#151;gross balance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">89.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">95.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less amounts provided for other than
temporary impairments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(53.6</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(95.4</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">(2.1</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Impaired credit substitutes, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>

</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total credit substitutes, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">13,880.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">9,751.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">219.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->

</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-19<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impaired credit substitutes as of March&nbsp;31, 2005 and March&nbsp;31, 2006:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>As of March 31</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11"><B>(In millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 0px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross impaired credit substitutes:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&#151;on accrual status</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">US$&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&#151;on non-accrual status</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">89.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">95.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">89.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">95.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">US$&nbsp;</TD>
    <TD align="right">2.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross impaired credit substitutes by industry:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&#151;Electronics</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">95.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">US$&nbsp;</TD>
    <TD align="right">2.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&#151;Financial institution</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">89.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">89.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">95.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">US$&nbsp;</TD>
    <TD align="right">2.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average impaired credit substitutes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">139.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">92.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">US$&nbsp;</TD>
    <TD align="right">2.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest foregone on impaired credit substitutes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">US$&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest income recognized on impaired credit substitutes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">US$&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest income recognized on impaired credit
substitutes on a cash basis</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">US$&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of March&nbsp;31, 2006, the Bank has no additional funds committed to borrowers whose credit
substitutes were impaired.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>9. Securities purchased under resell agreements</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities purchased under agreements to resell are classified separately from
investments and generally mature within 14&nbsp;days of the transaction date. Such resell transactions
are recorded at the amount of cash advanced on the transaction. Resell transactions outstanding as
of March&nbsp;31, 2005 and March&nbsp;31, 2006 are Rs.&nbsp;Nil
and Rs.&nbsp;4,200.0&nbsp;million respectively.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->F-20<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>10. Loans</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loan
balances include Rs.&nbsp;14,190.0 and Rs.&nbsp;47,100.0 as of
March&nbsp;31, 2005 and March 31, 2006 for assets which have been pledged as collateral for borrowings and are therefor restricted.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans
by facility as of March&nbsp;31, 2005 and March&nbsp;31, 2006
are as follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>As of March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11"><B>(In millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 0px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Retail Loans:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Auto loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">21,055.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">51,184.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">1,150.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Commercial vehicle and construction equipment
finance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,924.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,613.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">980.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Personal loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,518.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,775.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,074.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Loans against securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,347.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,669.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">397.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Two-wheeler loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,418.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,661.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">442.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Retail business banking</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,050.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,291.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">658.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Credit cards</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,892.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,758.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">309.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other retail loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,459.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,347.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">142.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Subtotal</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">112,666.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">229,301.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,155.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wholesale loans:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Working capital finance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">72,397.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">78,693.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">1,769.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Term loans </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">76,861.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">92,932.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,089.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Sub total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">149,259.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">171,626.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">3,858.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">261,925.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">400,927.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,013.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less: Allowance for credit losses </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,438.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,653.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">127.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">256,486.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">395,274.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">8,886.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The contractual residual maturity of gross loans as of March&nbsp;31, 2006 is set out below:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>As of March 31, 2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Working</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Capital</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Term</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Retail</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Finance</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>loans</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>loans</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15"><B>(In millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 0px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Maturity profile of loans:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Within one year
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">Rs.&nbsp;</TD>
    <TD align="right">53,124.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">Rs.&nbsp;</TD>
    <TD align="right">45,057.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap align="left">Rs.&nbsp;</TD>
    <TD align="right">88,119.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">Rs.&nbsp;</TD>
    <TD align="right">186,301.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Over one year through
five years
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,568.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,675.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">134,689.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">186,933.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">After five years through
ten years
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,200.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,492.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,692.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total gross loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">Rs.&nbsp;</TD>
    <TD align="right">78,693.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">Rs.&nbsp;</TD>
    <TD align="right">92,932.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">Rs.&nbsp;</TD>
    <TD align="right">229,301.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">Rs.&nbsp;</TD>
    <TD align="right">400,927.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>


<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total gross loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">US$&nbsp;</TD>
    <TD align="right">1,769.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">US$&nbsp;</TD>
    <TD align="right">2,089.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">US$&nbsp;</TD>
    <TD align="right">5,155.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">US$&nbsp;</TD>
    <TD align="right">9,013.7</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-21<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross loans analyzed by performance are as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>As of March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11"><B>(In millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 0px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Performing
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">257,841.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">396,144.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>US$&nbsp;</TD>
    <TD align="right">8,906.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Impaired </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,084.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,783.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">107.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total
gross
loans </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">261,925.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">400,927.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>US$&nbsp;</TD>
    <TD align="right">9,013.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impaired loans as of March&nbsp;31, 2005 and 2006 by facility are as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>As of March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11"><B>(In millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 0px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Retail loans
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">1,663.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">3,193.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>US$&nbsp;</TD>
    <TD align="right">71.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wholesale loans </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,420.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,590.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Gross impaired loans </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,084.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,783.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">107.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less: Specific allowance for credit losses </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,492.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,204.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">72.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Impaired loans, net of specific allowance </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">591.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">1,578.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>US$&nbsp;</TD>
    <TD align="right">35.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 0px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross impaired loans:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&#151;without valuation allowance </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">591.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">1,578.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>US$&nbsp;</TD>
    <TD align="right">35.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&#151;with valuation allowance </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,492.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,204.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">72.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">4,084.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">4,783.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>US$&nbsp;</TD>
    <TD align="right">107.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 0px solid #000000">&nbsp;</TD>
</TR>


<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross impaired loans:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&#151;on accrual status </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>US$&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&#151;on non-accrual status </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,084.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,783.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">107.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">4,084.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">4,783.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>US$&nbsp;</TD>
    <TD align="right">107.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 0px solid #000000">&nbsp;</TD>
</TR>


<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross impaired loans by industry:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&#151;Automotive
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">913.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">954.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>US$&nbsp;</TD>
    <TD align="right">21.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&#151;Land transport </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">269.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">347.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&#151;Textiles </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">303.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">313.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&#151;Electronics</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">679.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">129.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&#151;Others (none &#062; than 5% of impaired loans) </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,918.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,038.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">68.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">4,084.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">4,783.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>US$&nbsp;</TD>
    <TD align="right">107.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Summary information relating to impaired loans as of March&nbsp;31, 2004, 2005 and 2006 is as
follows:
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->F-22<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>As of March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15"><B>(In millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average impaired
loans, net of
allowance </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">476.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">430.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">1,085.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;&nbsp;</TD>
    <TD align="right">24.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest
foregone on
impaired loans </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">274.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">216.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">208.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">4.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest
income recognized
on impaired loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">31.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">0.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">5.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">0.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest
income recognized
on impaired loans
on a cash basis
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">31.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">0.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">5.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;&nbsp;</TD>
    <TD align="right">0.1</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
of March&nbsp;31, 2006, the Bank had no additional funds committed to borrowers whose
loans were impaired.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in the allowance for credit losses are as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>As of March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11"><B>(In millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Specific allowance for credit
losses, beginning of period
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">2,722.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">3,492.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;&nbsp;</TD>
    <TD align="right">78.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross provision for credit losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,655.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,804.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">108.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Allowance no longer required due to:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cash recoveries
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(781.7</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(275.1</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(6.2</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Write-offs
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,104.0</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(4,817.2</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(108.3</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Specific allowance for credit
losses, end of period
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">3,492.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">3,204.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;&nbsp;</TD>
    <TD align="right">72.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unallocated allowance for credit
losses, beginning of period
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">771.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,945.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Additions during the period
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,174.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">503.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unallocated allowance for credit
losses, end of period
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,945.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,448.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total allowance for credit
losses, end of period
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">5,438.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">5,653.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;&nbsp;</TD>
    <TD align="right">127.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest and fees on loans  by facility are as follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>Years ended March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15"><B>(In millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wholesale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">6,875.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">8,126.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">13,989.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;&nbsp;</TD>
    <TD align="right">314.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Retail loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,829.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,304.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,864.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">334.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">11,705.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">16,431.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">28,853.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;&nbsp;</TD>
    <TD align="right">648.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-23<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">11. <B>Sales/Transfer of loans</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table summarizes pre-tax gains on securitizations and certain cash flows received from
customers and paid to SPEs for sales that were completed during the
years ended March&nbsp;31, 2004, March&nbsp;31, 2005
and March&nbsp;31, 2006:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 1px solid #000000"><B>Years ended March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

    <TD nowrap align="center" colspan="14"><B>(In millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="left" style="border-top: 0px solid #000000">&nbsp;</TD>
</TR>


<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Sale consideration
from new
securitizations/transfer
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">5,917.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">48,660.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">19,733.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;&nbsp;</TD>
    <TD align="right">443.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less: Book value of
finance receivables
derecognized
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,772.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48,022.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,752.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">444.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less: Estimated costs
of servicing
</DIV></TD>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Pre-tax gains on
securitizations
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">123.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">622.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">(31.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">US$&nbsp;&nbsp;</TD>
    <TD align="right">(0.7</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash flow information
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">
Collections against
securitized
receivables
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">682.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">12,635.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">28,902.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;&nbsp;</TD>
    <TD align="right">649.8</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Payments made to SPEs
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">264.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">10,666.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">28,861.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;&nbsp;</TD>
    <TD align="right">648.9</TD>
    <TD>&nbsp;</TD>
</TR>


<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash flows
on retained interests
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">21.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">328.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">304.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;&nbsp;</TD>
    <TD align="right">6.9</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Bank has relied upon
market information and its past experience for the purpose of determining the assumptions below. Key assumptions used in
measuring the retained interests in finance receivables of sales completed during the years ended
March&nbsp;31, 2005 and March&nbsp;31, 2006 as of the dates of such sales were as follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>For the year ended</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>For the year ended</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>March 31, 2005</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>March 31, 2006</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Key assumptions: (rates per
annum)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Annual prepayment rate </DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">6.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">6.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Expected credit losses
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.5</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Credit losses and prepayment losses as a percentage to the gross loans disbursed are
estimated on the basis of historical losses on a similar portfolio.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other key disclosures are as follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000">As of March 31,</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">2005</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">2006</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">2006</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11">(In millions)</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Finance
receivables held by
SPEs
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">60,263.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">40,593.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;&nbsp;</TD>
    <TD align="right">912.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Delinquencies</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">204.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">408.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Credit losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">162.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">183.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Retained
interest in sold
receivables,
consisting of
subordinated
securities
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">954.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">669.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.1</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table below outlines the economic assumptions and the sensitivity of the estimated
fair value of retained interests in finance receivables as of March
31, 2005 and March&nbsp;31, 2006, to immediate 10%
and 20% changes in those assumptions:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>As of March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11"><B>(In millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Carrying value/fair value of retained
interests</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Annual prepayment rate:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:25px; text-indent:-15px">Impact of 10% adverse change
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">4.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">0.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">0.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:25px; text-indent:-15px">Impact of 20% adverse change
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Expected credit losses:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:25px; text-indent:-15px">Impact of 10% adverse change
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:25px; text-indent:-15px">Impact of 20% adverse change
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.8</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-24<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The discount rate used for the valuation of retained interests is the rate of return to
the transferees of the various pools of securitized receivables and, therefore, is not subject to
change. Weighted average life in years of the securitized receivables is also not subject to
change except in case of a change in the prepayment rate assumption. Consequently, the above
sensitivity analysis does not include the impact on the estimated fair values of the retained
interests due to adverse change in the weighted average life in years and the discount rate.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These sensitivities are hypothetical and should be used with appropriate caution. A 10%
change in the assumptions may not result in lineally proportionate changes in the fair values of
retained interests. Adverse changes assumed in the above analysis and the resultant change in the
fair values of retained interests are calculated independent of each other. In reality, any
change in one factor may cause change in the other factors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>12. Concentrations of credit risk</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Concentrations of credit risk exist when changes in economic, industry or geographic factors
similarly affect groups of counterparties whose aggregate credit exposure is material in relation
to the Bank&#146;s total credit exposure. The Bank manages its credit risk collectively for its loan
portfolio and credit substitute securities as these instruments are invested in as part of an
overall lending program for corporate customers; accordingly, information on concentrations of
credit risk has been provided for these exposures together.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank&#146;s portfolio of loans and credit substitute securities is broadly diversified along
industry and product lines, and as of March&nbsp;31, 2005 and 2006 the exposures are as set forth
below. The Bank does not consider retail loans a specific industry for this purpose. However,
retail business banking loans are classified in the appropriate categories below and loans to
commercial vehicle operators are included in land transport below.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>As of March 31, 2005</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Fair values of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>credit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Loans</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>substitutes</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>%</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000"><B>Category</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15"><B>(In millions, except percentages)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Land transport
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">29,860.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">29,860.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">10.8</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Automotive
manufacturers
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,667.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">432.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,100.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Telecommunications</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,369.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,217.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,586.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Hire purchase and
finance
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,422.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,470.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,892.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Iron and steel
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,840.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">910.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,750.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Others (none &#062;
than 2%)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">190,765.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,849.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">197,615.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">261,925.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">13,880.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">275,806.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" nowrap align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>As of March 31, 2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>

</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Fair values of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Gross loans</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>credit substitutes</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>%</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000"><B>Category</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19"><B>(In millions, except percentages)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="19" align="left" style="border-top: 0px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Automotive manufacturers
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">40,970.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">38.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">41,008.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;&nbsp;</TD>
    <TD align="right">921.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">10.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Land Transport
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36,841.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36,841.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">828.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Retail Traders
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,357.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,396.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">323.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Activities allied to Agriculture
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,559.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,559.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">259.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Heavy Engineering
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,659.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">303.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,963.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">246.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">NBFC / Investment Companies </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,430.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">346.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,777.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">242.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Telecommunication
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,217.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,671.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,888.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">199.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Others (none &#062; than 2%) </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">270,891.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,351.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">276,243.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,210.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">67.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="19" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">400,927.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">9,751.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">410,678.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;&nbsp;</TD>
    <TD align="right">9,232.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="19" nowrap align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank has a geographic concentration of credit risk, with exposure to borrowers
based in Western India (including
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->F-25<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Mumbai), comprising 50.2% and 39.0% of the total loan and credit substitute security
portfolio as of March&nbsp;31, 2005 and March&nbsp;31, 2006 respectively. While such borrowers are based
in Western India they may use the funds provided by the Bank for a variety of uses that may or
may not be related to the economy in Western India.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loan and credit substitute exposures as of March&nbsp;31, 2005 and 2006 based on the region in
which the instruments are originated are as follows (which may be or may not be where funds are
used):
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>As of March 31, 2005</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Fair values of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>credit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Total</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>loans</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>substitutes</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>exposure</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>%</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000"><B>Region of origination</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15"><B>(In millions, except percentages)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mumbai
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">72,690.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">10,501.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">83,191.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">30.2</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Western region, other than
Mumbai
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53,321.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,795.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55,117.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Northern region
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">72,350.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,304.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">73,654.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Eastern region
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,732.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,732.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Southern region
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36,829.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">280.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,110.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">261,925.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">13,880.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">275,806.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" nowrap align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19" style="border-bottom: 1px solid #000000"><B>As of March 31, 2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Fair values of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>credit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Total</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Total</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>loans</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>substitutes</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>exposure</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>exposure</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>%</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000"><B>Region of origination</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19"><B>(In millions, except percentages)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mumbai
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">80,051.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">7,305.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">87,357.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;&nbsp;</TD>
    <TD align="right">1,964.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.3</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Western region, other than
Mumbai
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">72,151.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">482.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">72,634.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,633.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Northern region
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">97,010.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,664.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">98,674.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,218.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Eastern region
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,416.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,416.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">796.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Southern region
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">116,297.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">298.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">116,596.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,621.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="19" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">400,927.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">9,751.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">410,678.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;&nbsp;</TD>
    <TD align="right">9,232.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="19" nowrap align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-26<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank&#146;s exposures to its ten largest borrowers as of March&nbsp;31, 2006, computed as per
RBI guidelines, which include the aggregate of the higher of the outstanding balance or the limit
on loans, investments (including credit substitutes) and non-funded exposures, are as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

<TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000">March
31, 2005</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>

<TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000">March
31, 2006</TD>

</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Non-</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Funded</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Funded</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Total</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Funded</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Non- Funded</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Exposure</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Exposure</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Exposure</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Exposure</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Exposure</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Total Exposure</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Total Exposure</TD>
</TR>


<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="22">(In millions)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD>Borrower 1</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">10,646.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">10,646.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">11,991.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">11,991.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">US$&nbsp;</TD>
    <TD align="right">269.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Borrower 2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,698.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,698.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,520.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,520.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">146.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Borrower 3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,000.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,000.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">134.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Borrower 4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,527.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">940.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,467.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,500.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">361.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,861.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">109.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Borrower 5
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,297.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,357.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,845.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,845.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">108.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Borrower 6
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">743.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,074.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,817.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">113.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,600.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,714.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">106.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Borrower 7
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,181.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,181.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">94.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Borrower 8
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,500.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,500.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">78.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Borrower 9
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,266.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">110.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,376.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,266.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">202.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,468.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">78.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Borrower 10</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">36.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">3,250.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">3,286.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">36.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">3,250.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">3,286.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">US$&nbsp;</TD>
    <TD align="right">73.9</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information in respect of earlier years is not provided for the above borrowers if they
were then not among the top ten exposures.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>13.&nbsp;Property and equipment</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property and equipment by asset category is as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>As of March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>

<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11"><B>(In millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Land and premises
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">2,912.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">3,145.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">70.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Software and systems
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,586.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,155.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Equipment and furniture
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,968.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,472.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">235.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Property and
equipment, at cost
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,466.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,772.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">354.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less: Accumulated
depreciation </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,383.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,058.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">158.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Property and
equipment, net
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">7,083.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">8,714.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">195.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation charged for the years ended March&nbsp;31, 2004, 2005 and 2006 was Rs. 1,254.9
million, Rs. 1,440.7&nbsp;million and Rs. 1,812.1&nbsp;million, respectively.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->F-27<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>14. Other assets</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets include the following:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>As of March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11"><B>(In millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Checks in the
course of
collection</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">76.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">91.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;&nbsp;</TD>
    <TD align="right">2.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Security
deposits for leased
property
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">911.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,089.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Sundry
accounts receivable
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,979.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,763.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">84.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Advance tax
(net of provision
for taxes)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,672.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,487.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">78.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Advances
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">778.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">836.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Prepaid
expenses
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,360.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,336.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Restricted
cash/
securitization
margin for credit
enhancement and
securitized
transactions
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">845.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">443.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,592.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,227.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">297.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">15,215.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">26,277.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;&nbsp;</TD>
    <TD align="right">590.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>15. Deposits</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposits include demand deposits, which are non-interest-bearing, and savings and time
deposits, which are interest-bearing. Deposits as of March&nbsp;31, 2005 and 2006 are as follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>As of March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11"><B>(In millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest-bearing:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Savings deposits
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">114,183.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">161,857.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;&nbsp;</TD>
    <TD align="right">3,638.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Time deposits
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">143,054.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">248,323.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,582.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total
interest-bearing
deposits
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">257,237.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">410,181.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,221.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Non-interest
bearing deposits
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">106,304.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">147,124.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,307.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Total
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">363,542.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">557,305.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;&nbsp;</TD>
    <TD align="right">12,529.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of March&nbsp;31, 2005 and March&nbsp;31, 2006 time deposits of Rs. 107,111.0&nbsp;million
and Rs. 154,259.1&nbsp;million, respectively, have a residual maturity of less than one year. The
balance of the deposits, mature between one and five years.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of March&nbsp;31, 2005 and March&nbsp;31, 2006 time deposits in excess of Rs. 0.1&nbsp;million
aggregated Rs. 140,245.8&nbsp;million and <BR>
Rs. 226,729.8 million, respectively.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->F-28<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>16. Short-term borrowings</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term borrowings are mainly comprised of money market borrowings. These borrowings
are unsecured and are utilized by the Bank for its treasury operations. Short-term borrowings
as of March&nbsp;31, 2005 and March&nbsp;31, 2006 are comprised of the following:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>As of March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11"><B>(In millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Borrowed in the call market
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">33,215.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">12,725.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;&nbsp;</TD>
    <TD align="right">286.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Term borrowings from
institutions/banks
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,783.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,374.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Foreign currency borrowings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,890.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,477.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">325.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bills rediscounted
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,100.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">676.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interbank risk participation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,190.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,000.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">382.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">62,079.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">75,676.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;&nbsp;</TD>
    <TD align="right">1,701.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total borrowings outstanding:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Maximum amount
outstanding </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">62,079.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">100,008.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;&nbsp;</TD>
    <TD align="right">2,248.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Average amount
outstanding
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">42,594.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">73,569.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;&nbsp;</TD>
    <TD align="right">1,654.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Weighted average interest
rate
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">4.1</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">4.8</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">4.8</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" nowrap align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>17. Long-term debt</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term debt as of March&nbsp;31, 2005 and March&nbsp;31, 2006 is comprised of the following:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>As of March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11"><B>(In millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Subordinated debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">5,000.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">17,020.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;&nbsp;</TD>
    <TD align="right">382.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Others </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">5,028.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">17,028.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;&nbsp;</TD>
    <TD align="right">382.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The scheduled maturities of long-term debt are set out below:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>As of March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>(In millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Due in the fiscal year ending March&nbsp;31:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">1,003.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;&nbsp;</TD>
    <TD align="right">22.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Thereafter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,020.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">360.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">17,028.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;&nbsp;</TD>
    <TD align="right">382.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-29<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank issued unsecured non-convertible subordinated debt
securities, which qualify as Tier 2 risk-based capital under the RBI&#146;s guidelines for assessing
capital adequacy. The Bank issued three tranches of subordinated debt securities during calendar
years 1998, 1999 and 2001 at coupon rates of 13.0%, 13.75% and 11.00%, respectively. The 1998
tranche was repaid at maturity in fiscal 2004. The 1999 and 2001 tranches are repayable in fiscal
2007.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
fiscal 2004, the Bank issued unsecured subordinated debt securities
aggregating Rs. 4.0&nbsp;billion, of which Rs. 3.95&nbsp;billion carries a coupon rate of 5.90% and matures
in May&nbsp;2013 and Rs. 50&nbsp;million carries a coupon rate of 6.0% and matures in May&nbsp;2016.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During fiscal 2006 the Bank issued Rs. 12.02&nbsp;billion of unsecured subordinated debt at an
annualized coupon between 7.5% to 8.6% and having a maturity ranging from 9 to 10&nbsp;years.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on balance term to maturity as at March&nbsp;31, 2006, 94.12% of the book value of
subordinated debt is considered as Tier 2 capital for the purpose of capital adequacy computation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other long term debt consists of capital leases and a loan from the Indian
Renewable Energy Development Authority used to finance solar equipment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>18.&nbsp;Accrued expenses and other liabilities</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other liabilities include the amounts set forth below. The Bank acts as a
payment bank to corporations making initial public offerings, and bills payable include demand
drafts issued to persons whose subscriptions for shares have been rejected.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>As of March 31</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11"><B>(In millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bills payable
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">15,547.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">20,795.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;&nbsp;</TD>
    <TD align="right">467.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Remittances in
transit
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,266.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,206.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">634.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accrued expenses
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">485.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">987.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">New account
deposits
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,414.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,982.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">134.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accounts payable
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,786.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,640.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">194.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Others
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,214.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,588.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">283.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">49,713.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">77,201.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;&nbsp;</TD>
    <TD align="right">1,735.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>19.&nbsp;Income taxes</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The income tax expense comprises the following:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>Years ended March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15"><B>(In millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Current income
tax expense
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">2,427.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">3,338.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">3,622.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;&nbsp;</TD>
    <TD align="right">81.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deferred income tax
(benefit) expense
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(588.4</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(213.5</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">343.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Income tax
expense
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">1,838.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">3,125.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">3,965.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;&nbsp;</TD>
    <TD align="right">89.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-30<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is the reconciliation of estimated income taxes at the Indian statutory income
tax rate to income tax expense as reported:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>Years ended March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15"><B>(In millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net income before taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">6,593.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">9,735.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">13,175.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;&nbsp;</TD>
    <TD align="right">296.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Effective statutory income
tax rate
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">35.87</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">36.59</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">33.66</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">33.66</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Expected income tax expense
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,365.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,562.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,434.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">99.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Adjustments to reconcile
expected income tax to actual
tax expense:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Permanent differences:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Stock-based compensation
(net of forfeitures)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">113.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Income exempt from
taxes
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(529.4</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(504.7</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(531.2</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(11.9</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Other, net </DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(17.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(66.2</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.8</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Effect of change in
statutory tax rate
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(27.8</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income tax expense
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">1,838.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">3,125.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">3,965.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;&nbsp;</TD>
    <TD align="right">89.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The tax effects of significant temporary differences are as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>As of March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11"><B>(In millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tax Effect of:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deductible temporary differences:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Allowance for loan losses
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">1,951.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">1,696.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;&nbsp;</TD>
    <TD align="right">38.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Unrealized loss on securities
available for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">681.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">221.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">607.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Deferred tax asset
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,197.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,986.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">67.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Taxable temporary differences:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Property and equipment
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,070.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">822.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Unrealized gain on
securities available for sale
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">842.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">185.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Unrealized gain on
investments transferred to
held to maturity category
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Loan
origination cost
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">196.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">961.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Deferred
tax liability
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,109.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,969.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net deferred tax (asset) liability
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">(87.4</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">(1,017.1</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">US$&nbsp;&nbsp;</TD>
    <TD align="right">(22.8</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" nowrap align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management believes that the realization of the recognized deferred tax
assets is more likely than not based on expectations as to future taxable income.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
the years ended March&nbsp;31, 2005 and 2006 the Bank has recorded
income tax expense of Rs. 3,125.4&nbsp;million and Rs. 3,965.7&nbsp;million using an annual
effective tax rate of 32.1% and 30.1% respectively.
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->F-31<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>20. Stock-based Compensation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The stock-based compensation plans of the Bank are as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Employees Stock Option Scheme:</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The shareholders of the Bank approved in January&nbsp;2000 Plan &#147;A&#148;, June&nbsp;2003 Plan &#147;B&#148; Plan &#147;C&#148; in
June&nbsp;2005 of the Employees&#146; Stock Option Scheme (the &#147;Plan&#148;). Under the terms of each of these
Plans, the Bank may issue stock options to employees and directors of the Bank, each of which is
convertible into one equity share. The Bank reserved 10&nbsp;million equity shares, with an aggregate
nominal value of Rs. 100&nbsp;million, for issuance under each Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plan A provides for the issuance of options at the recommendation of the Compensation
Committee of the Board (the &#147;Compensation Committee&#148;) at an average of the daily closing prices on
the Mumbai Stock Exchange during the 60&nbsp;days preceding the date of grant of options, which was the
minimum prescribed option price under regulations then issued by the Securities and Exchange Board
of India (&#147;SEBI&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plan B &#038; Plan C provide for the issuance of options at the recommendation of the Compensation
Committee at the closing price on the working day immediately preceding the date when options are
granted on an Indian stock exchange with the highest trading volume during the preceding two weeks,
which was the minimum prescribed option price under SEBI regulations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Such options vest at the discretion of the Compensation Committee, subject to a maximum
vesting not exceeding five years, set forth at the time the grants are made. Such options are
exercisable for a period following vesting at the discretion of the Compensation Committee, subject
to a maximum of five years, as set forth at the time of the grant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Activity in the options available to be granted under the Employee Stock Option Scheme is as
follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11"><B>Options available to be granted</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>Years ending March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2004</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2006</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Options available to be
granted, beginning of year
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,048,300</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,585,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,432,200</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Equity shares allocated for
grant under the plan
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,000,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Options granted
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(10,993,000</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(8,097,300</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Forfeited/lapsed
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">530,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,846,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,542,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Options available to be
granted, end of year
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,585,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,432,200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,876,900</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Activity in the options outstanding under the Employee Stock Option Scheme is as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="22" style="border-bottom: 1px solid #000000"><B>Years ended March 31,</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Weighted</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Weighted</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Weighted</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>exercise</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>exercise</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Exercise</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Options</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>price</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Options</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>price</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Options</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Price</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="23" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Options
outstanding,
beginning of year
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,602,900</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">193.07</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,319,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">325.42</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,313,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">344.88</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Granted
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,993,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">360.98</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,097,300</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">630.60</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Exercised
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,746,000</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">163.90</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,159,500</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">215.73</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,267,100</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">321.19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Forfeited
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(530,500</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">251.07</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,846,400</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">345.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,542,000</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">499.10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Options
outstanding, end of
year </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,319,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">325.42</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,313,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">344.88</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,601,700</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">503.18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Weighted average
fair value of
options granted
during the year
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">374.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">630.60</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-32<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Employees
Welfare Trust</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank established an Employees Welfare Trust (the &#147;EWT&#148;) in 1994 for the benefit of
the Bank&#146;s employees. The EWT borrowed funds from third parties and subscribed to an aggregate of
10,000,000 equity shares of the Bank at the same price as available to other shareholders, and from
time to time, also made open market purchases of shares. In pursuance of the Trust&#146;s objectives,
grants were allotted to employees, directors and advisors at prices designated by the trustees. The
vesting period varies at the discretion of the trustees from grant to grant, but is generally
between 12 and 24&nbsp;months.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank accounted for the equity shares of the Bank held by the EWT as
treasury shares until transferred and reports the external borrowings of the EWT as borrowings of
the Bank. Consequently, dividends paid to the EWT are eliminated, and the interest cost incurred by
the EWT and stock based compensation are charged as an expense by the Bank. The Bank has recognized
deferred stock- based compensation on each grant as the difference between the closing price on the
Bombay Stock Exchange Ltd. and the applicable grant price. The Bank has recognized stock-based
compensation expense under this scheme of Rs. 113.7&nbsp;million and  Rs. 213.9&nbsp;million,
for the years ended March&nbsp;31, 2004 and 2005 respectively.
In fiscal 2006, there were no grants available to be allotted to the employees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Activity in the grants available to be allotted under the EWT Plan is as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>Years ending March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2004</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2006</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Grants available to be allotted, beginning of year </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,250,775</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">276,775</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Grants allotted </DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(974,000</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(4,700</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Grants sold in open market </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(272,075</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Grants cancelled </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Grants available to be allotted, end of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">276,775</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Activity in the allotted grants outstanding under the EWT Plan is as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="22" style="border-bottom: 1px solid #000000"><B>As of March 31,</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Weighted</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Weighted</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Weighted</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Exercise</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>exercise</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Exercise</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Grants</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>price</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Grants</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>price</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Grants</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Price</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="23" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Grants allotted beginning of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,076,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">38.64</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,670,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">42.93</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">New grants </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">974,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,700</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Grants exercised </DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(379,500</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38.64</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,675,200</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42.60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Grants cancelled</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="23" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Grants allotted, end of year </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,670,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">42.93</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="23" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Weighted average fair value of grants
allotted during the year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">299.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;&nbsp;</TD>
    <TD align="right">402.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-33<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following summarizes information about stock options outstanding as of March&nbsp;31, 2006:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="6%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="50%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>As of March 31, 2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Number of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Weighted</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Weighted</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>shares arising</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Average</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>average</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000"><B>Plan</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 0px solid #000000"><B>Range of exercise price</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>out of options</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>remaining life</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Exercise price</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Plan A</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Rs.&nbsp;131.33 to Rs.&nbsp;226.96 (or  US$&nbsp;3.0 to  US$&nbsp;5.1)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,67,900</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">217.87</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Plan B</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Rs. 358.60 to  Rs. 366.30 (or  US$&nbsp;8.1 to  US$&nbsp;8.2)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,027,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*0.84</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">361.42</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Plan C</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Rs. 630.60 (US$&nbsp;14.2)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,306,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">630.60</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>Weighted Average remaining life is computed for non-vested share based on total no. of shares
arising out of option.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>21. Share Capital</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the year ended March&nbsp;31, 2005 the Bank raised capital in the form of add on ADS, which
were listed on the New York Stock Exchange on January 21, 2005 at a price of US$&nbsp; 39.26 per ADS.
Each ADS represents three equity shares. The issue size was US$ 261&nbsp;million plus a green shoe
option of 15% (US$ 39&nbsp;million), which was exercised. Net of issue expenses, the Bank received US$
291&nbsp;million (Rs. 12,747.6&nbsp;million).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>22. Retirement benefits</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Gratuity</I>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In accordance with Indian law, the Bank provides for gratuity, a defined benefit retirement
plan, covering eligible employees. The plan provides for lump sum payments to vested employees at
retirement, death while in employment or on termination of employment in an amount equivalent to
15&nbsp;days&#146; salary payable for each completed year of service. Vesting occurs upon completion of
five years of service. The Bank makes annual contributions to funds administered by trustees
and managed by Insurance companies for amounts notified by said insurance companies. The Bank
accounts for the liability for future gratuity benefits using the projected unit cost method
based on an annual actuarial valuation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets out the funded status of the Gratuity Plan and the amounts recognized
in the Bank&#146;s financial statements as of March&nbsp;31, 2005 and March&nbsp;31, 2006:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>As of March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11"><B>(In millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Change in benefit obligations:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Projected benefit obligation (&#147;PBO&#148;), beginning of the period </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">103.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">142.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">3.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Service cost </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest cost </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Actuarial loss </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Benefits paid </DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right" nowrap>&nbsp;(6.1</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right" nowrap>&nbsp;(6.8</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right" nowrap>&nbsp;(0.2</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Projected benefit obligation, end of the period </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">142.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">202.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Change in plan assets:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Fair value of plan assets, beginning of the period </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">66.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Actual return on plan assets </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Employer contributions </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Benefits paid </DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right" nowrap>&nbsp;(6.1</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right" nowrap>&nbsp;(6.8</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right" nowrap>&nbsp;(0.2</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Actuarial (loss)&nbsp;gain </DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right" nowrap>&nbsp;(1.4</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right" nowrap>&nbsp;(5.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right" nowrap>&nbsp;(0.1</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Fair value of plan assets, end of the period </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">66.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">103.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Accrued benefit </DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right" nowrap>&nbsp;(76.6</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right" nowrap>&nbsp;(99.2</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>US$&nbsp;</TD>
    <TD align="right" nowrap>&nbsp;(2.2</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" nowrap align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-34<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank&#146;s expected contribution to the gratuity fund for the next fiscal year is
estimated at Rs. 56.7&nbsp;million. The accumulated benefit obligation as of March&nbsp;31, 2005 and 2006 was
Rs. 61.7&nbsp;million and Rs. 86.5&nbsp;million, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net gratuity cost for the years ended March&nbsp;31, 2004, 2005 and 2006 comprises the following
components:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>Years ended March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15"><B>(In millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Service cost </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">16.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">14.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">21.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">0.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest cost </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Expected return on plan assets </DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(2.7</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(4.2</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(5.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(0.1</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Actuarial (gain)&nbsp;loss </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net gratuity cost </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">33.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">44.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">56.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">1.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The assumptions used in accounting for the gratuity plan are set out below:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>Years ended March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>(%)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Discount rate
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Rate of increase in compensation levels
of covered employees </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Rate of return on plan assets
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.0</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following benefit payments, which reflect expected future service, as appropriate are expected
to be paid.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Year ending March 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">(In millions)</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">2.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.7</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Superannuation</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eligible employees of the Bank are entitled to receive retirement benefits under the Bank&#146;s
superannuation fund. The superannuation fund is a defined contribution plan under which the Bank
annually contributes a sum equivalent to 13% of the employee&#146;s eligible annual salary (15% for
the Managing Director) to the Life Insurance Corporation of India, which administers the fund. The Bank has no liability for
future superannuation fund benefits other than its annual contribution, and recognizes such
contributions as an expense in the year incurred. The Bank contributed Rs. 19.7&nbsp;million, Rs. 25.0
million, Rs. 38.5&nbsp;million to the superannuation plan for the years ended March&nbsp;31, 2004, 2005 and
2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Provident fund</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In accordance with Indian law, eligible employees of the Bank are entitled to receive
benefits under the provident fund, a defined contribution plan in which both the employee and the
Bank contribute monthly at a determined rate (currently 12% of an employee&#146;s salary). These
contributions are made to a fund set up by the Bank and administered by a board of trustees,
except that for certain lower paid employees the bank contributes 8.33% of the employee&#146;s salary
to the Pension Scheme administered by the Regional Provident Fund Commissioner. Employees are
credited with interest, which is subject to a government specified minimum rate. The Bank has no
liability for future provident fund benefits other than its annual contribution and the
shortfall, if any, between the government specified minimum rate and the yield on the fund&#146;s
assets, and recognizes such contributions as an expense in the year incurred. The Bank
contributed Rs. 71.1&nbsp;million, Rs. 99.5&nbsp;million and Rs. 162.4&nbsp;million to the provident fund for the years ended
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->F-35<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">March&nbsp;31, 2004, 2005 and 2006, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>23. Financial instruments</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Foreign exchange and derivative contracts</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank enters into forward exchange contracts, currency options, forward rate agreements,
currency swaps and rupee interest rate swaps with inter-bank participants on its own account and
for customers. These transactions enable customers to transfer, modify or reduce their foreign
exchange and interest rate risks.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Forward exchange contracts are commitments to buy or sell foreign currency at a
future date at the contracted rate. Currency swaps are commitments to exchange cash flows by way of
interest in rupees against another currency and exchange of notional principal amount at maturity
based on predetermined rates. Rupee interest rate swaps are commitments to exchange fixed and
floating rate cash flows in rupees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The market and credit risk associated with these products, as well as the operating
risks, are similar to those relating to other types of financial instruments. Market risk is the
exposure created by movements in interest rates and exchange rates, during the tenure of the
transaction. The extent of market risk affecting such transactions depends on the type and nature
of the transaction, the value of the transaction and the extent to which the transaction is
uncovered. Credit risk is the exposure to loss in the event of default by counter-parties. The
extent of loss on account of a counter-party default will depend on the replacement value of the
contract at the ongoing market rates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fair values for off balance sheet derivative financial instruments are based on quoted market
prices, except in the case of certain options and currency swaps where pricing models are used.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table presents the aggregate notional principal amounts of the Bank&#146;s
outstanding foreign exchange and interest rate derivative contracts as of March&nbsp;31, 2005 and March
31, 2006, together with the fair values on each reporting date.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="23" style="border-bottom: 1px solid #000000"><B>As of March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Fair</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Fair</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Fair</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Notional</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>value</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Notional</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Value</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Notional</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>value</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="23"><B>(In millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest rate swaps
and forward rate
agreements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">780,211.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right" nowrap>&nbsp;(79.7</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">1,209,102.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right" nowrap>&nbsp;(593.1</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>US$&nbsp;</TD>
    <TD align="right">27,183.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">US$</TD>
    <TD align="right" nowrap>&nbsp;(13.3</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Forward exchange
contracts, currency
swaps, currency
options and
interest rate caps
and floors</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">571,445.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">731.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">845,329.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">1,025.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>US$&nbsp;</TD>
    <TD align="right">19,004.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>US$&nbsp;</TD>
    <TD align="right">23.1</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank
has not designated the above derivative contracts as accounting
hedges and accordingly the contracts are recorded at fair value on
the balance sheet with changes in fair value recorded in earnings.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Guarantees</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a part of its commercial banking activities, the Bank has issued guarantees and
documentary credits, such as letters of credit, to enhance the credit standing of its customers.
These generally represent irrevocable assurances that the Bank will make payments in the event
that the customer fails to fulfill his financial or performance obligations. Financial guarantees
are obligations to pay a third party beneficiary where a customer fails to make payment towards a
specified financial obligation. Performance guarantees are obligations to pay a third party
beneficiary where a customer fails to perform a non-financial contractual obligation. The
guarantees are generally for a period not exceeding 18&nbsp;months.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The credit risk associated with these products, as well as the operating risks, are similar
to those relating to other types of financial instruments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The fair values of guarantees and documentary credits are estimated based on the portion of
unamortized fees currently charged for such contracts. Based on historical trends, the Bank has
recognized a liability of Rs. 162.8&nbsp;million and Rs. 323.0&nbsp;million as of March&nbsp;31, 2005 and March
31, 2006 respectively, in respect of guarantees issued or modified after December&nbsp;31, 2002.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Details of guarantees and documentary credits outstanding are set out below:
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->F-36<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>As of March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11"><B>(In millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nominal values:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bank guarantees:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Financial guarantees
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">14,365.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">21,141.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">475.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Performance
guarantees
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,954.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,940.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">290.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Documentary credits
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,930.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,103.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">541.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Total
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">52,250.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">58,185.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">&nbsp;1,308.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Estimated fair values:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Guarantees
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">(145.4</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">(171.1</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">US$&nbsp;</TD>
    <TD align="right">(3.8</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Documentary
credits
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(44.7</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(38.6</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(0.9</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Total
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">(190.1</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">(209.7</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">US$&nbsp;</TD>
    <TD align="right">(4.7</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" nowrap align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As part of its risk management activities, the Bank continuously monitors the
credit-worthiness of customers as well as guarantee exposures. If a customer fails to perform a
specified obligation, a beneficiary may draw upon the guarantee by presenting documents in
compliance with the guarantee. In that event the Bank makes payment on account of the defaulting
customer, to the beneficiary up to the full notional amount of the guarantee. The customer is
obligated to reimburse the Bank for any such payment. If the customer fails to pay, the Bank
liquidates any collateral held and sets off accounts; if insufficient collateral is held, the Bank
recognizes a loss.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Loan sanction letters</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank issues sanction letters indicating its intent to provide new loans to
certain customers. The aggregate of loans contemplated in these letters that had not yet been made
was Rs. 110,754.2&nbsp;million as of March&nbsp;31, 2006. If the Bank were to make such loans, the interest
rates would be dependent on the lending rates in effect when the loans were disbursed. The Bank has
no commitment to lend under these letters. Among other things, the making of a loan is subject to a
review of the creditworthiness of the customer at the time the customer seeks to borrow, at which
time the Bank has the unilateral right to decline to make the loan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>24. Estimated fair value of financial instruments</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank&#146;s financial instruments include financial assets and liabilities recorded
on the balance sheet, including instruments such as foreign exchange and derivative contracts.
Management uses its best judgment in estimating the fair value of the Bank&#146;s financial instruments;
however, there are inherent weaknesses in any estimation technique. Therefore, for substantially
all financial instruments, the fair value estimates presented herein are not necessarily indicative
of all the amounts the Bank could have realized in a sales transaction as of March&nbsp;31, 2005 and
March&nbsp;31, 2006. The estimated fair value amounts as of March&nbsp;31, 2005 and March&nbsp;31, 2006 have been
measured as of the respective year ends, and have been not been re-evaluated or updated for
purposes of these financial statements subsequent to those respective dates. As such, the estimated
fair values of these financial instruments subsequent to the respective reporting dates may be
different than the amounts reported at each year end.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Financial instruments valued at carrying value:</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The respective carrying values of certain on-balance-sheet financial instruments approximated
their fair value. These financial instruments include cash and amounts due from banks,
interest-bearing deposits in banks, securities purchased and sold under resale and repurchase
agreements, accrued interest receivable, short-term borrowings, acceptances, accrued interest
payable, and certain other assets and liabilities that are considered financial instruments.
Carrying values were assumed to approximate fair values for these financial instruments as they are
short-term in nature and their recorded amounts approximate fair values or are receivable or
payable on demand.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Trading securities:</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trading securities are carried at fair value based on quoted market prices. For more
information on the fair value of these securities, refer to Note 5.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Available for sale securities:</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Available for sale investments principally comprise debt securities and are carried at fair
value. Such fair values were based
on quoted market prices, if available. If quoted market prices did not exist, fair values were
estimated using market yield on balance period
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->F-37<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">to maturity on similar instruments and similar
credit risk. The fair values of asset backed and mortgage backed securities is estimated based on
revised estimated cash flows at each balance sheet date, discounted at current market pricing for
transactions with similar risk. For more information on the fair value of these securities, refer
to Note 6.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Held to maturity securities:</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Held to maturity securities are carried at amortized cost less other than temporary
impairments, if any. Fair values of these securities were based on quoted market prices, if
available. If quoted market prices did not exist, fair values were estimated using market yield on
balance period to maturity on similar instruments and similar credit risk. For more information on
these securities, including &#147;tainting&#148; of the portfolio, refer to Note 7.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Loans:</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The fair values of consumer installment loans and other consumer loans that do not reprice
frequently were estimated using discounted cash flow models. The discount rates were based on
current market pricing for loans with similar characteristics and risk factors. Since substantially
all individual lines of credit and other variable rate consumer loans reprice frequently, with
interest rates reflecting current market pricing, the carrying values of these loans approximate
their fair values.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The fair values of commercial loans that do not reprice or mature within relatively short time
frames were estimated using discounted cash flow models. The discount rates were based on current
market interest rates for loans with similar remaining maturities and credit ratings. For
commercial loans that reprice within relatively short time frames, the carrying values approximate
their fair values.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of these fair value estimates, the fair values of impaired loans were computed by
deducting an estimated market discount from their carrying values to reflect the uncertainty of
future cash flows.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Deposits:</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The fair value of demand deposits, savings deposits, and money market deposits without defined
maturities are the amounts payable on demand. For deposits with defined maturities, the fair values
were estimated using discounted cash flow models that apply market interest rates corresponding to
similar deposits and timing of maturities. For variable-rate deposits with fixed repricing dates,
the first repricing date was considered the maturity date for purposes of fair value calculation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Long-term debt:</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The fair values of the Bank&#146;s unquoted long-term debt instruments were calculated based on a
discounted cash flow model. The discount rates were based on yield curves appropriate for the
remaining maturities of the instruments.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Term Placements:</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The fair values of term placements were estimated using discounted cash flow models. The
discount rates were based on current market pricing for placements with similar characteristics and
risk factors.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-38<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A comparison of the fair values and carrying values of financial instruments other than
derivatives (see Note 23) is set out below:
</DIV>



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18" style="border-bottom: 0px solid #000000"><B>As of March 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2006</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Carrying</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Estimated</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Carrying</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Estimated</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Estimated</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>value</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>fair value</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>value</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>fair value</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>fair value</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>(In millions)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Financial Assets:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash and cash equivalents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">37,575.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">37,575.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">61,194.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.&nbsp;</TD>
    <TD align="right">61,194.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">US$&nbsp;</TD>
    <TD align="right">1,375.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Term placements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,699.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,530.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,243.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,845.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">221.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investments held for
trading</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,278.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,278.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,945.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,945.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">66.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investments available
for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">204,292.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">204,292.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">273,457.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">273,457.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,147.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities purchased
under agreements to resell</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,200.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,200.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">94.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">256,486.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">255,933.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">395,274.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">397,162.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,929.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accrued interest
receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,912.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,912.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,662.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,662.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">194.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Financial Liabilities:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest-bearing
deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">257,237.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">257,819.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">410,181.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">409,655.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,209.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-interest-bearing
deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">106,304.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">106,304.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">147,124.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">147,124.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,307.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities sold under
repurchase agreements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Short term borrowings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62,079.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62,079.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75,676.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75,676.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,701.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accrued interest
payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,843.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,843.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,264.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,264.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">185.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Long-term debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,028.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,582.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,028.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,148.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">363.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accrued expenses and
other liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,536.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,536.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77,201.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77,201.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,735.7</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>25. Segment Information</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank operates in three reportable segments: wholesale banking, retail banking and treasury
services. The revenue and related expense recognition policies are set out in Note 2. Substantially
all operations and assets are based in India.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The retail banking segment serves retail customers through a branch network and other delivery
channels. This segment raises deposits from customers and makes loans, provides credit cards and
debit cards, distributes third-party financial products such as mutual funds and insurance, and
provides advisory services to such customers. Revenues of the retail banking segment are derived
from interest earned on retail loans, fees for banking and advisory services and interest earned
from other segments for surplus funds placed with those segments. Expenses of this segment
primarily comprise interest expense on deposits, infrastructure and premises expenses for operating
the branch network and other delivery channels, personnel costs, other direct overheads and
allocated expenses.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The wholesale banking segment provides loans and transaction services to corporate customers.
Revenues of the wholesale banking segment consist of interest earned on loans made to corporate
customers, investment income from credit substitutes, interest earned on the cash float arising
from transaction services, fees from such transaction services and profits from foreign exchange
and derivative transactions with wholesale banking customers. The principal expenses of the segment
consist of interest expense on funds borrowed from other segments, premises expenses, personnel
costs, other direct overheads and allocated expenses.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The treasury services segment undertakes trading operations on the proprietary account,
foreign exchange operations and derivatives trading. Revenues of the treasury services segment
primarily consist of fees and gains and losses from trading operations.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Segment-wise income and expenses include certain allocations. Interest income is charged by a
segment that provides funding to another segment, based on yields benchmarked to an internally
developed composite yield curve which broadly tracks market-discovered interest rates. Transaction
charges are made by the retail banking segment to the wholesale banking segment for the use by
corporate customers of the retail banking segment&#146;s branch network or other delivery channels; such
transaction costs are determined on a cost plus basis.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Directly identifiable overheads are attributed to a segment at actual amounts incurred.
Indirect shared costs, principally corporate office expenses, are generally allocated equally to
each segment. Income taxes for each segment have been allocated based on the effective rate
applicable to the Bank, adjusted for specifically identifiable permanent differences relating to
each segment.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-39<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">

<!-- LANDSCAPE -->

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Summarized
segment information for the years ended March 31, 2004, 2005 and 2006 is as
follows:
</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="16%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="47" style="border-bottom: 0px solid #000000"><B>Years ended March 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 0px solid #000000"><B>2004</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 0px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 0px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Retail</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Wholesale</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Treasury</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Retail</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Wholesale</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Treasury</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Retail</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Wholesale</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Treasury</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Banking</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Banking</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>services</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Banking</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Banking</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Services</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>banking</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Banking</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>services</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD colspan="3" nowrap align="center" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="51"><B>(In millions)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net interest revenue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">7,159.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">5,112.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">336.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">12,608.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">9,728.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">5,658.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">598.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">15,985.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">18,177.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">6,239.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">Rs.&nbsp;</TD>
    <TD align="right">(510.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">23,906.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">537.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less:
Provision for
credit.losses
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">918.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,424.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,343.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,925.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">122.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,048.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,956.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">76.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,032.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
<TD align="right">113.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="51" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net interest
revenue, after provision for credit losses
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,241.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,687.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">336.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,265.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,802.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,535.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">598.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,937.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,221.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,163.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">(510.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,874.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
<TD align="right">424.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-interest
revenue </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,606.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">965.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,125.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,697.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,234.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,656.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">320.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,211.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,071.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,092.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">(16.8</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,147.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
<TD align="right">273.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-interest
expense </DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(6,250.0</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,521.5</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(597.8</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(8,369.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(8,889.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,823.7</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(700.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(11,413.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">(14,482.4</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">(2,802.0</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">(562.4</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">(17,846.8</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
<TD align="right">(401.2</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="51" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income before
income tax
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">2,597.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">3,131.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">863.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">6,593.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">4,147.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">5,368.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">218.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">9,735.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,810.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,454.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">(1,089.5</TD>
    <TD>)&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,175.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
<TD align="right">296.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="51" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Segment assets:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Segment average
total assets </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">142,643.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">178,753.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">42,907.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">364,303.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">197,121.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">224,054.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">26,076.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">447,252.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">281,583.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">313,603.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">38,318.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Rs.&nbsp;</TD>
    <TD align="right">633,505.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
<TD align="right">14,242.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="51" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>26. Commitments and contingent liabilities</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commitments and contingent liabilities other than for off balance sheet financial instruments
(see Note 23) are as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Capital commitments</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank has entered into committed capital contracts, principally for branch expansion and
technology upgrades. The estimated amounts of contracts remaining to be executed on the capital
account as of March&nbsp;31, 2005 and March&nbsp;31, 2006 aggregated Rs. 497.5&nbsp;million and Rs. 946.8&nbsp;million,
respectively.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Contingencies</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank is party to various legal and tax-related proceedings in the normal course of
business. The Bank does not expect the outcome of these proceedings to have a material adverse
effect on the Bank&#146;s results of financial condition, operations or cash flows.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>27. Related party transactions</B>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-40<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank&#146;s principal related parties consist of HDFC Limited, its principal
shareholder, and its associates. The Bank enters into transactions with its related parties, such as providing
banking services, sharing costs and service providers, purchasing services, making joint
investments, and borrowing from related parties and subletting premises. The Bank is prohibited
from making loans to companies with which it has directors in common. The Bank also makes loans at
concessional rates to its employees. The Bank&#146;s related party balances and transactions are
summarized as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Balances payable to related parties are as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>As of March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>

<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11"><B>(In millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balances in current account </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">141.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">201.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">4.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balances in fixed deposits </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">272.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">149.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accounts payable </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">73.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">72.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">487.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">423.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">9.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Balances receivable from related parties are as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>Years ended March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11"><B>(In millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deposits to secure leased property </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">23.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">36.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">0.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Loans and overdrafts </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Loans to officers and employees </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">935.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,409.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Capital advances </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other deposits </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">130.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 0px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accounts Receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">304.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">1,026.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">1,883.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">42.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank has retained HDFC Asset Management Company Ltd., an entity controlled by HDFC
Limited, to invest its funds up to an amount approved by the board of directors, primarily in debt
instruments. This arrangement is upto June 2006. The amount of investments outstanding as on
March&nbsp;31, 2005 and March&nbsp;31, 2006 was Rs. 3.0&nbsp;billion and Rs. 3.4&nbsp;billion, respectively. Purchases
of fixed assets from related parties for the years ended March&nbsp;31, 2005 and 2006 were Rs. 38.6
million and Rs. 72.4&nbsp;million, respectively. During the year, the
Bank paid Rs. 191.3&nbsp;million to HDFC
Limited for purchase of additional 25.5% shares of HDFC Securities Limited.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Included in the determination of net income are the following significant transactions with related
parties:
</DIV>





<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 1px solid #000000"><B>Years ended March 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14"><B>(In millions)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Service charges income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.</TD>
    <TD align="right">118.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.</TD>
    <TD align="right">438.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Rs.</TD>
    <TD align="right">1,441.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">US$</TD>
    <TD align="right">32.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dividend Income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Service charges expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(19.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(31.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(45.6</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1.0</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Outsourcing charges</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(798.5</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,561.7</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,534.7</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(57.0</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest Income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Rent and maintenance expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(17.0</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15.8</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(12.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.2</TD>
    <TD nowrap>)</TD>
</TR>

<TR style="font-size:12pt"><TD align="center" valign="top">&nbsp;</TD></TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net expense incurred to related parties for service provided</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">Rs.</TD>
    <TD align="right">&nbsp;(686.6</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">Rs.</TD>
    <TD align="right">&nbsp;(1,163.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">Rs.</TD>
    <TD align="right">(1,144.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">US$</TD>
    <TD align="right">(25.7</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" nowrap align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Outsourcing
charges consist mainly of payments made by the Bank to its
associates for back office processing and direct sales support.</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->F-41<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>28. Regulatory Capital and capital adequacy</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank is a banking company within the meaning of the Indian Banking Regulation&nbsp;Act, 1949,
registered with and subject to supervision by the RBI. Failure to meet minimum capital requirements
could lead to regulatory actions by the RBI that, if undertaken, could have a material effect on
the Bank and its financial position.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank&#146;s regulatory capital and capital adequacy ratios are measured in accordance with
Indian GAAP and are as follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>As of March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11"><B>(In millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tier 1 capital
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">39,621.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">51,499.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">&nbsp;1,157.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tier 2 capital
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,547.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,207.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">386.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total capital
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">50,168.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">68,706.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">&nbsp;1,544.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total risk weighted assets and contingents
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">412,710.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">602,176.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">&nbsp;13,538.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Capital ratios of the Bank:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Tier 1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">9.60</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">8.55</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">8.55</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total capital
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">12.16</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">11.41</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">11.41</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Minimum capital ratios required by the RBI:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Tier 1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">4.50</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">4.50</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">4.50</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total capital
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">9.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">9.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">9.00</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Dividends</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any dividends declared by the Bank are based on the profit available for distribution as
reported in the statutory financial statements of the Bank prepaid in accordance with
Indian GAAP, Additionally, the Banking Regulation Act and related regulations require
the Bank to transfer 25% of its Indian GAAP profit after tax to a non-distributable
statutory reserve and to meet certain other conditions in order to pay dividends without
prior RBI approval. As per RBI guidelines dividend payout (excluding
dividend tax) for March&nbsp;31, 2006 can not
exceed 35% of net income of Rs. 8,707.8 million as calculated under
Indian GAAP. Accordingly, the net income reported in
these financial statements may not be fully distributable in that year. Dividends for the
years ended March 31, 2004, 2005 and 2006 were Rs. 3.50, Rs. 4.50 and Rs. 5.50 per
equity share, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>29. Earnings per equity share</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A reconciliation of the equity shares used in the computation of basic and diluted earnings
per equity share has been provided below. None of the potential equity shares outstanding during
the fiscal years ended March&nbsp;31, 2004, 2005 and 2006 were anti-dilutive.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>As of March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2004</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2006</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Weighted average number of
equity shares used in
computing basic earnings per
equity share
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">281,856,152</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">290,145,339</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">311,939,366</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Effect of potential equity
shares for stock options
outstanding
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,863,744</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,317,669</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,984,648</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Weighted average number of
equity shares used in
computing diluted earnings
per equity share
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">284,719,896</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">292,463,008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">315,924,014</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the purpose of determining the weighted average number of equity shares
outstanding, the Bank treats cash received from optionees who exercise their option as issued
equity shares even if the administrative formalities to allocate equity shares have not been
completed.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->F-42<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following are reconciliations of basic and diluted earnings per equity share and earnings
per ADS :
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="54%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>Years ended March 31,</B></TD>

</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2004</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2006</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2006</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Basic earnings per share
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">16.87</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">22.78</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">29.45</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">0.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Effect of potential equity shares
for stock options outstanding
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.37</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Diluted earnings per share
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">16.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">22.60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">29.08</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Basic earnings per ADS
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">50.61</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">68.34</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">88.36</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Effect of potential equity shares
for stock options outstanding</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.51</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.54</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Diluted earnings per ADS
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">50.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">67.80</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Rs.&nbsp;</TD>
    <TD align="right">87.24</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">US$&nbsp;</TD>
    <TD align="right">2.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->F-43<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="120"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and
that it has duly caused and authorized the undersigned to sign this annual report on its behalf.
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">HDFC Bank Limited<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/ Vinod G. Yennemadi
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD colspan="2" align="left">Vinod G. Yennemadi&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD colspan="2" align="left">
Group Head &#151; Finance,
Administration, Legal and Secretarial&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Date:
September&nbsp;29, 2006
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="121"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Index of Exhibits</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">12.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Certification by our Managing Director pursuant to Rule&nbsp;13a-14(b)<BR></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">12.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Certification by our Chief Financial Officer pursuant to Rule&nbsp;13a-14(b)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">13</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Certifications by our Managing Director and Chief Financial Officer required by Rule
13a-14(b) and Section&nbsp;1350 of Chapter&nbsp;63 of Ttitle 18 of the United States Code.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HDFC Bank Limited agrees to furnish to the Securities and Exchange Commission upon its request, the
instruments relating to the long term debt for securities authorized thereunder that do not exceed
10% of HDFC Bank Limited&#146;s total assets.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>


</BODY>
</HTML>
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HDFC BANK LIMITED
Table of Contents
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 20-F
(Mark One)
o
REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE
SECURITIES EXCHANGE ACT OF 1934
OR
þ
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the fiscal year ended March 31, 2006
OR
o
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
OR
o
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of event requiring this shell company report
For the transition period from
to
Commission file number 001-15216
HDFC BANK LIMITED
(Exact name of registrant as specified in its charter)
Not Applicable
(Translation of Registrant's name into English)
India
(Jurisdiction of incorporation or organization)
HDFC Bank House,
Senapati Bapat Marg, Lower Parel, Mumbai- 400 013, India
(Address of principal executive offices)
Securities registered or to be registered pursuant to Section 12(b) of the Act.
Title of each class
American Depositary Shares
Name of each exchange on which registered
The New York Stock Exchange
Each representing three equity shares, par value Rs. 10 per share
Securities registered pursuant to Section 12(g) of the Act.
Not Applicable
(Title of Class)
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act.
Not Applicable
(Title of Class)
Indicate the number of outstanding shares of each of the issuer's classes of capital or
common stock as of the close of the period covered by the annual report.
313,142,408 Equity Shares
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in
Rule 405 of the Securities Act.
þ
Yes
o
No
If this report is an annual or transition report, indicate by check mark if the
registrant is not required to file reports pursuant to
Section 13 or 15(d) of the Securities Exchange Act of 1934.
o
Yes
þ
No
Note – Checking the box above will not relieve any registrant required to file reports
pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934 from their obligations under those Sections.
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days.
þ
Yes
o
No
Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, or a non-accelerated filer. See
definition of "accelerated filer and large accelerated filer" in Rule 12b-2 of the Exchange
Act. (Check one):
Large accelerated filer
þ
Accelerated filer
o
Non-accelerated filer
o
Indicate by check mark which financial statement item the registrant has elected to
follow.
o
Item 17
þ
Item 18
If this is an annual report, indicate by check mark whether the registrant is a shell
company (as defined in Rule 12b-2 of the Exchange Act).
o
Yes
þ
No
September 29, 2006
2
TABLE OF CONTENTS
CROSS REFERENCE SHEET
3
EXCHANGE RATES
5
FORWARD LOOKING STATEMENTS
7
BUSINESS
8
RISK FACTORS
29
PRICE RANGE OF OUR AMERICAN DEPOSITARY SHARES AND EQUITY SHARES
39
DESCRIPTION OF EQUITY SHARES
41
DIVIDEND POLICY
42
SELECTED FINANCIAL AND OTHER DATA
43
SELECTED STATISTICAL INFORMATION
47
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION
62
MANAGEMENT
82
PRINCIPAL SHAREHOLDERS
97
RELATED PARTY TRANSACTIONS
98
TAXATION
101
SUPERVISION AND REGULATION
108
EXCHANGE CONTROLS
122
RESTRICTIONS ON FOREIGN OWNERSHIP OF INDIAN SECURITIES
123
ADDITIONAL INFORMATION
124
EX-12.1 CERTIFICATION BY MD UNDER SECTION 302
EX-12.2 CERTIFICATION OF CFO UNDER SECTION 302
EX-13 CERTIFICATION OF MD & CFO UNDER SECTION 906
Table of Contents
3
CROSS REFERENCE SHEET
1
Form 20-F Item
Number
Item Caption
Location
Page
Part I
Item 1
Identity of Directors, Senior
Management and Advisors
Not Applicable
Item 2
Offer Statistics and Expected Timetable
Not Applicable
Item 3
Key Information
Exchange Rates
5
Risk Factors
29
Selected Financial and Other Data
43
Item 4
Information on the Company
Business
8
Selected Statistical Information
47
Management's Discussion and Analysis
62
Principal Shareholders
97
Related Party Transactions
98
Supervision and Regulation
108
Item 5
Operating and Financial Review and
Prospects
Management's Discussion and Analysis
62
Item 6
Directors, Senior Management and Employees
Business – Employees
27
Management
82
Principal Shareholders
97
Item 7
Major Shareholders and Related
Party Transactions
Principal Shareholders
97
Related Party Transactions
98
Item 8
Financial Information
Financial Statements
F-1
Item 9
The Offer and Listing
Price Range of Our American
Depositary Share and Equity Shares
39
Item 10
Additional Information
Management
82
Description of Equity Shares
41
Taxation
101
Supervision and Regulation
108
Exchange Controls
122
Restrictions on Foreign Ownership
of Indian Securities
123
Additional Information
124
Item 11
Quantitative and Qualitative Disclosures About Market Risk
Business — Risk Management
21
Selected Statistical Information
47
Notes to Financial Statements
F-7
Item 12
Description of Securities Other than
Equity Securities
Not Applicable
Table of Contents
4
1
Form 20-F Item
Number
Item Caption
Location
Page
Part II
Item 13
Defaults, Dividend Arrearages and
Delinquencies
Not Applicable
Item 14
Material Modifications to the Rights
of Security Holders and Use of
Proceeds
Not Applicable
Item 15
Controls and Procedures
Management— Controls and Procedures
91
Item 16A
Audit Committee Financial Expert
Management—Audit Committee Financial
Expert
92
Item 16B
Code of Ethics
Management— Code of Ethics
92
Item 16C
Principal Accountant Fees and Services
Management—
Principal Accountant Fees and Services
92
Part III
Item 18
Financial Statements
Financial Statements
F-1
Report of Independent Auditors
F-2
Item 19
Exhibits
Exhibits
Table of Contents
5
EXCHANGE RATES
In this document, all references to "we," "us," "our," "HDFC Bank" or "the Bank" shall mean
HDFC Bank Limited or where the context requires also to its
subsidiaries whose financials are consolidated for accounting
purposes. References to the "U.S." or
"United States" are to the United States of America, its territories and its possessions.
References to "India" are to the Republic of India. References to "$" or "US$" or "dollars" or
U.S. dollars" are to the legal currency of the United States and
references to "Rs." or "rupees" or
"Indian rupees" are to the legal currency of India.
Our financial statements are presented in Indian rupees and in some cases translated into U.S.
dollars. The financial statements and all other financial data included in this statement are
prepared in accordance with United States generally accepted accounting principles, or U.S. GAAP.
References to a particular "fiscal" year are to our fiscal year ended March 31 of such year.
Fluctuations in the exchange rate between the Indian rupee and the U.S. dollar will affect the U.S.
dollar equivalent of the Indian rupee price of the equity shares on the Indian stock exchanges and,
as a result, will affect the market price of our American Depositary Shares ("ADSs") in the United
States. These fluctuations will also affect the conversion into U.S. dollars by the depositary of
any cash dividends paid in Indian rupees on the equity shares represented by ADSs.
From 1980 until fiscal 2002, the rupee consistently depreciated against the dollar. In fiscal 2004
and 2005 the Indian rupee appreciated compared to fiscal 2003. The rupee's appreciation was due to
remittances from exporters and non-resident Indians, foreign direct investment and foreign
institutional investor inflows, along with the weakening of the U.S. dollar against major
currencies. However in 2006 the rupee has again shown a tendency to depreciate against the US
dollar. This is mainly due to higher crude prices and increase of interest rates in the U.S.
market.
The following table sets forth, for the periods indicated, information concerning the exchange
rates between Indian rupees and U.S. dollars based on the noon buying rate in the city of New York
for cable transfers of Indian rupees as certified for customs purposes by the Federal Reserve Bank
of New York:
Fiscal Year
Period End
(1)
Average
(1)(2)
High
Low
2002
48.83
47.81
48.91
46.58
2003
47.53
48.36
49.07
47.53
2004
43.40
45.78
47.46
43.40
2005
43.62
44.87
46.45
43.27
2006
44.48
44.17
46.26
43.05
(1)
The noon buying rate at each period end and the average rate for each period
differed from the exchange rates used in the preparation of our financial statements.
(2)
Represents the average of the noon buying rate for all days during the period.
Table of Contents
6
The following table sets forth the high and low noon buying rate for the Indian rupee for each of
the previous six months:
Month
Period End
Average
High
Low
March
44.48
44.34
44.58
44.09
April
44.86
44.82
45.09
44.39
May
46.22
45.20
46.22
44.69
June
45.87
45.89
46.25
45.50
July
46.52
46.37
46.83
45.84
August
46.43
46.45
46.61
46.32
Although we have translated selected Indian rupee amounts in this document into U.S. dollars
for convenience, this does not mean that the Indian rupee amounts referred to could have been, or
could be, converted to U.S. dollars at any particular rate, the rates stated above, or at all. All
translations from Indian rupees to U.S. dollars are based on the noon buying rate in the City of
New York for cable transfers in Indian rupees at US$ 1.00 = Rs. 44.48 on March 31, 2006. The Federal
Reserve Bank of New York certifies this rate for customs purposes on each date the rate is given.
The noon buying rate on September 29, 2006 was Rs. 45.95 per US$ 1.00.
Table of Contents
7
FORWARD LOOKING STATEMENTS
We have included statements in this report which contain words or phrases such as "will,"
"aim," "will likely result," "believe," "expect," "will continue," "anticipate," "estimate,"
"intend," "plan," "contemplate," "seek to," "future," "objective," "goal," "project," "should,"
"will pursue" and similar expressions or variations of these expressions, that are "forward-looking
statements". Actual results may differ materially from those suggested by the forward-looking
statements due to certain risks or uncertainties associated with our expectations with respect to,
but not limited to, our ability to implement our strategy successfully, the market acceptance of
and demand for various banking services, future levels of our non-performing loans, our growth and
expansion, the adequacy of our allowance for credit and investment losses, technological changes,
volatility in investment income, cash flow projections and our exposure to market and operational
risks. By their nature, certain of the market risk disclosures are only estimates and could be
materially different from what may actually occur in the future. As a result, actual future gains,
losses or impact on net income could materially differ from those that have been estimated.
In addition, other factors that could cause actual results to differ materially from those
estimated by the forward-looking statements contained in this document include, but are not limited
to: general economic and political conditions in India and the other countries which have an impact
on our business activities or investments; the monetary and interest rate policies of the
government of India; inflation, deflation, unanticipated turbulence in interest rates, foreign
exchange rates, equity prices or other rates or prices; the performance of the financial markets in
India and globally; changes in Indian and foreign laws and regulations, including tax, accounting
and banking regulations; changes in competition and the pricing environment in India; and regional
or general changes in asset valuations. For further discussion on the factors that could cause
actual results to differ, see "Risk Factors".
Table of Contents
8
BUSINESS
Overview
We are a leading private sector bank and financial services company in India. Our goal is to
be the preferred provider of financial services to upper and middle income individuals and leading
corporations in India. Our strategy is to provide a comprehensive range of financial products and
services for our customers through multiple distribution channels, with high quality service and
superior execution. We have three principal business activities: retail banking, wholesale banking
and treasury operations.
We have grown rapidly since commencing operations in January 1995. In the five years ended March
31, 2006, we expanded our operations from 131 branches and 207 ATMs in 53 cities to 535 branches
and 1323 ATMs in 228 cities. During the same five years, our customer base grew from 0.9 million
customers to 9.6 million customers. As our geographical reach and market penetration have expanded,
so too have our assets, which grew from Rs. 161.1 billion as of
March 31, 2001 to Rs. 791.0 billion
as of March 31, 2006. Our net income has increased from Rs. 2.1 billion for fiscal 2001 to Rs. 9.2
billion for fiscal 2006 at a compounded annual growth rate of 33.9%.
Notwithstanding our pace of growth, we have maintained a strong balance sheet and a low cost of
funds. As of March 31, 2006, net non-performing customer assets (which consist of loans and credit
substitutes) constituted 0.4% of net customer assets. In addition, our net customer assets
represented 72.7% of our deposits and customer deposits represented
70.5% of our total liabilities
and shareholders equity. The average non-interest bearing current accounts and low-interest savings
accounts represented 57.0% of total deposits for the year ended March 31, 2006. These low-cost
deposits, which include the cash float associated with our transactional services, led to an
average cost of funds excluding equity for the fiscal year ended March 31, 2006 of 3.4%, which we
believe is one of the lowest of all banks in India.
We are part of the HDFC group of companies founded by our parent, Housing Development Finance
Corporation Limited ("HDFC Limited"), a public limited company established under the laws of India.
HDFC Limited and its subsidiaries owned approximately 22.0% of our outstanding equity shares as of
March 31, 2006.
Our principal corporate and registered office is located at HDFC Bank House, Senapati Bapat Marg,
Lower Parel, Mumbai 400 013, India. Our telephone number is 91-22-6652-1000. Our agent in the
United States is CT Corporation System, 111, 8
th
Avenue, New York, NY 10011
Our Competitive Strengths
We attribute our growth and continuing success to the following competitive strengths:
We are a leader among Indian banks in our use of technology
Since our inception, we have made substantial investments in our technology platform and systems.
We have built multiple distribution channels, including an electronically linked branch network,
automated telephone banking, internet banking and banking by mobile phone, to offer customers
convenient access to our products. Our technology platform has also driven the development of
innovative products and reduced our operating costs.
We deliver high quality service with superior execution
Through intensive staff training and the use of our technology platform, we deliver efficient
service with rapid response time. Our focus on knowledgeable and personalized service draws
customers to our products and increases the loyalty of the existing customers.
Table of Contents
9
We offer a wide range of products to our clients in order to service their banking needs.
Whether in retail or wholesale banking, we consider ourselves a "one-stop shop" for our customers'
banking needs. Our broad array of products creates multiple cross-selling opportunities for us and
improves our customer retention rates.
We have an experienced management team.
Most of the members of our senior management team have been with us since inception. They have
substantial experience in multinational banking and share our common vision of excellence in
execution. We believe this team is well suited to leverage the competitive strengths we have
already developed as well as to create new opportunities for our business.
Our Business Strategy
Our business strategy emphasizes the following elements:
Increase our market share in India's expanding banking and financial services industry
In addition to benefiting from the overall growth in India's economy and financial services
industry, we believe we can increase our market share by continuing to focus on our competitive
strengths. We also aim to increase geographical and market penetration by expanding our branch and
ATM network and increasing our efforts to cross-sell our products.
Maintain our current high standards for asset quality through disciplined credit risk
management
We have maintained high quality loan and investment portfolios through careful targeting of our
customer base, a comprehensive risk assessment process and diligent risk monitoring and remediation
procedures. Our ratio of gross non-performing assets to customer assets was 1.2% as of March 31,
2006 and our net non-performing assets amounted to 0.4% of net customer assets. We believe we can
maintain our asset quality while still achieving growth.
Maintain a low cost of funds
As of March 31, 2006, our average cost of funds excluding equity was 3.4%. We believe we can
maintain this low-cost funding base by expanding our base of retail savings and current deposits
and increasing the free float generated by transaction services such as cash management and stock
exchange clearing.
Focus on high earnings growth with low volatility
Our aggregate earnings have grown at a compound average rate of 33.9% per year during the five-year
period ending March 31, 2006 and our basic earnings per share grew from Rs. 22.78 for fiscal 2005
to Rs. 29.45 for fiscal 2006. We intend to maintain our focus on earnings growth with low volatility
through conservative risk management techniques and low cost funding. In addition, we intend not to
rely heavily on revenue derived from trading so as to limit volatility.
Our Principal Business Activities
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10
Our principal banking activities consist of retail banking, wholesale banking and treasury
operations. The following table sets forth our net revenues attributable to each area for the last
three years.
Year ended March 31,
2004
2005
2006
2006
(In millions, except percentage)
Retail banking
Rs.
8,847.9
Rs.
13,037.0
Rs.
23,293.2
75.1
%
Wholesale banking
4,653.2
7,192.4
8,256.0
26.6
Treasury operations
1,461.5
919.6
(527.1
)
(1.7
)
Net revenue
Rs.
14,962.6
Rs.
21,149.0
Rs.
31,022.1
100.0
%
Retail Banking
Overview
We consider ourselves a one-stop shop for the financial needs of upper and middle-income
individuals. We provide a comprehensive range of financial products including deposit products,
loans, credit cards, debit cards, third-party mutual funds and insurance products, investment
advice, bill payment services and other services. We offer high quality service and greater
convenience by leveraging our technology platforms and multiple distribution channels. Our goal is
to provide banking and financial services to our retail customers on an "any time, any where, any
how" basis.
We market our services aggressively through our branches and direct sales associates, as well as
through our relationships with automobile dealers and corporate clients. We seek to establish a
relationship with a retail customer and then expand it by offering more products and expanding our
distribution channels so as to make it easier for the customer to do business with us. We believe
this strategy, together with the general growth of the Indian economy and the Indian upper and
middle classes, affords us significant opportunities for growth. We consider upper and
middle-income individuals to be those with Rs. 100,000 or more per year in income.
As of March 31, 2006, we had 535 branches, including 23 extension counters, and 1,323 ATMs in 228
cities. We also provide telephone banking in 189 cities as well as internet and mobile banking. We
plan to continue to expand our branch and ATM network as well as our other distribution channels.
Retail Loans and Other Asset Products
We offer a wide range of retail loans, including loans for the purchase of automobiles, two
wheelers and commercial vehicles, personal loans, loans against securities, and credit cards. Our
retail loans were 57.2% of our gross loans as of March 31, 2006. Apart from our branches we use our
ATM screens and the internet to promote our loan products and we employ additional sales methods
depending on the type of products. Because there is no well-established credit bureau in India, we
perform our own credit analyses of the borrowers and the value of the collateral. See "— Risk
Management — Credit Risk — Retail Credit Risk". We also buy mortgage and other asset backed
securities and invest in retail loan portfolios through assignments. In addition to taking
collateral in many cases, we generally obtain post-dated checks covering all payments at the time a
retail loan is made. It is a criminal offense in India to issue a bad check. We also sometimes
obtain irrevocable instructions to debit the customer's account directly for the making of
payments.
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11
The following table shows the value and share of our retail credit products:
As of March 31, 2006
% of Total
No. of Loans
Value
Value
(In thousands)
(In millions)
Retail Loans:
Auto loan.
(1)
117
Rs.
51,184.4
US$
1,150.8
18.7
%
Commercial vehicles and construction
equipment finance.
(1)
64
43,613.2
980.5
15.9
Personal loans
282
47,775.6
1,074.1
17.5
Loans against securities
30
17,669.8
397.3
6.5
Two wheeler loans
651
19,661.2
442.0
7.2
Retail business banking
10
29,291.6
658.6
10.7
Credit cards.
(2)
2,417
13,758.0
309.3
5.0
Other retail loans
149
6,347.6
142.7
2.3
Total retail loans
3,720
229,301.4
5,155.3
83.8
Mortgage backed securities (home loans)
(3)
17,054.8
383.4
6.2
Asset backed securities
(3)
27,126.1
609.9
10.0
Total retail assets
Rs.
273,482.3
US$
6,148.6
100.0
%
(1)
Net of receivables securitized.
(2)
Number of cards in force.
(3)
Reflected at fair value.
Auto Loans
We offer secured loans at fixed interest rates for financing new and used automobile purchases. In
addition to our general marketing efforts for retail loans, we market this product through
relationships with car dealers, corporate packages and joint promotion programs with automobile
manufacturers in more than 1,000 locations across India.
Commercial Vehicles and Construction Equipment Finance
We provide secured financing for commercial vehicles and provide working capital, bank guarantees
and trade advances to customers who are transportation operators. In addition to the funding of
domestic assets, we also finance imported assets for which we open foreign letters of credit and
offer treasury services such as forward exchange cover. We coordinate with manufacturers to jointly
promote our financing options to their clients. Prior to fiscal 2004, these loans were classified
as part of our wholesale banking division.
Personal Loans
We offer unsecured personal loans at fixed rates to specific customer segments, including salaried
individuals and self-employed professionals.
Loans against Securities
We offer loans against equity shares, mutual fund units, bonds issued by the Reserve Bank of India
("RBI") and other securities that are on our approved list. We limit our loans against equity
shares to Rs. 2.0 million per retail customer in line with regulatory guidelines and limit the
amount of our total exposure secured by particular securities. We lend only against shares in
book-entry (dematerialized) form, which ensures that
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12
we obtain perfected and first priority
security interests. The minimum margin for lending against shares is prescribed by the RBI.
Two Wheeler Loans
We offer loans for financing the purchase of new scooters or motorcycles. We market this product in
ways similar to auto loans.
Retail Business Banking
We offer business loans, which we consider a retail product, to address the borrowing needs of
the community of small businessmen near our bank branches by offering facilities such as credit
lines, term loans for expansion/addition of facilities, discounting of credit card receivables,
letters of credit, guarantees and other basic trade finance products and cash management services
for their businesses. The lending is typically secured with current assets as well as immovable
property and fixed assets in some cases.
Credit Cards
We have
offered titanium gold and silver VISA and MasterCard credit cards since December 2001 and have
approximately 2.4 million cards in force as of March 31, 2006 as against 1.3 million as of March
31, 2005. This increase was possible due to focused and stepped up marketing efforts.
Other Retail Loans
Such loans primarily include overdrafts against time deposits.
Mortgage- Backed Securities (Home Loans
)
In fiscal 2003 we entered the home loan business through an arrangement with HDFC Limited. Under
this arrangement, we sell home loans provided by HDFC Limited, which approves and disburses the
loans. The loans are booked in the books of HDFC Limited, and we are paid a sourcing fee. Under the
arrangement, HDFC Limited offers us up to 70% of the fully disbursed home loans sourced under the
arrangement through the issue of mortgage-backed pass-through certificates ("PTCs"). We purchase
the mortgage backed PTCs at the underlying home loan yields less a fee paid to HDFC Limited for
administration and servicing of the loans. A part of the home loans also qualifies for our directed
lending requirement. We also invest in mortgage-backed securities of other originators. Most of
these securities also qualify toward our directed lending obligations.
Asset-Backed Securities
We invest in auto, two wheeler, commercial vehicle and other asset backed securities, represented
by PTCs. These securities are normally credit enhanced and sometimes qualify for our directed
lending requirements.
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13
Sale/Transfer of Receivables
The bank from time to time securitizes out its receivables to special purpose vehicles. In respect
of certain transactions, we provide credit enhancements generally in the form of cash
collaterals/guarantees/interest spreads and/or by subordination of cash flows to senior PTCs (Pass
Through Certificates). The Bank also enters into sale transactions, which are similar to asset backed securitization transactions through the SPE route, except that such portfolios of receivables are assigned directly to the purchaser and are not represented by pass-through certificates. During fiscal 2005 and 2006, we securitized loans with carrying values of
Rs. 48.0 billion and Rs. 19.9 billion, respectively. In respect of some of the PTCs, we provide
options to the investors to sell them to us at predetermined dates and these options are
exercisable at par. Principal outstanding on the puttable PTCs as of
March 31, 2006 was Rs. 108.6
million. All such puttable PTCs are exercisable within a year and Rs. 21.2 million within two years.
Retail Deposit Products
Retail deposits provide us with a low cost, stable funding base and have been a key focus area for
us since commencing operations. Retail deposits represented 62.3% of our total deposits as of March
31, 2006. The following chart shows the number of accounts and value of our retail deposits by our
various deposit products:
At March 31, 2006
% of
No of accounts
Value ( in millions )
total
( in thousands )
% of total
Savings
Rs.
153,072.0
US$
3,441.4
44.1
%
4,480.5
78.7
%
Current
70,781.7
1,591.3
20.4
558.9
9.8
Time
123,489.8
2,776.3
35.5
651.9
11.5
Total
Rs.
347,343.5
US$
7,809.0
100.0
%
5,691.3
100.0
%
Our individual retail account holders avail the benefits of a wide range of direct banking
services, including debit and ATM cards, access to our growing branch and ATM network, access to
our other distribution channels and eligibility for utility bill payments and other services. Our
retail deposit products include the following:
§
Savings accounts, which are demand deposits in checking accounts designed primarily for individuals and trusts. These
accrue interest at a fixed rate set by the RBI (currently 3.5% per annum).
§
Current accounts, which are non-interest-bearing checking accounts designed primarily for small businesses. Customers
have a choice of regular and premium product offerings with different minimum average quarterly account balance
requirements.
§
Time deposits, which pay a fixed return over a predetermined time period.
We also offer special value-added accounts, which offer our customers added value and convenience.
These include a time deposit account that allows for automatic transfers from a time deposit
account to a savings account, as well as a time deposit account with an automatic overdraft
facility of up to 90% of the balance in the account. E-Broking accounts are offered as current
accounts to customers of stock brokers where all transactions are routed electronically between the
broker and beneficiaries.
Debit Cards
Our international debit card allows our customers to purchase goods and make ATM transactions in
India as well as abroad. Our debit cards may be used with more than 310,000 merchants and over
18,000 ATMs in India and more than 23 million merchants and 1.15 million ATMs worldwide. We were
the first in India to issue international Visa Electron debit cards on a nationwide basis and
currently issue both Visa Electron and MasterCard Maestro cards.
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14
Individual Depositary Accounts
We provide depositary accounts to individual retail customers for holding debt and equity
instruments. Securities traded on the Indian exchanges are generally not held through a broker's
account or in street name. Instead, an individual will have his own account with a depositary
participant for the particular exchange. Depositary participants, including us, provide services
through the major depositaries established by two major stock exchanges. Depositary participants
record ownership details and effectuate transfers in book-entry form on behalf of the buyers and
sellers of securities. We provide a complete package of services, including account opening,
registration of transfers and other transactions and information reporting.
Mutual Fund Sales
We offer our retail customers units in most of the large and reputable mutual funds in India. We
earn front-end commissions for new sales and in some cases additional fees in subsequent years. We
distribute mutual fund products primarily through our branches and our private banking advisors.
Insurance
We have arranged with HDFC Standard Life Insurance Company and HDFC Chubb Limited to distribute
their life insurance products and general insurance products to our customers. We earn upfront
commissions on new premiums collected as well as some trailing income in subsequent years while the
policy is still in force.
Investment Advice
We offer our customers a broad range of investment advice including advice regarding the purchase
of Indian debt, equity shares, and mutual funds. We provide our high net worth private banking
customers with a personal investment advisor to consult them on their individual investment needs.
Bill Payment Services
We offer our customers utility bill payment services for more than 77 leading utility companies
including electricity, telephone, mobile phone and leading internet service providers. Customers
can also review and access their bill details through our direct banking channels. This service is
valuable to customers because utility bills must otherwise be paid in person in India. Although
other banks offer this service, we believe we are one of the few banks to offer it through multiple
distribution channels — ATMs, telephone banking, internet banking and mobile telephone banking.
Corporate Salary Accounts
We offer Corporate Salary Accounts, which allow employers to make salary payments to a group of
employees with a single transfer. We then transfer the funds into the employees' individual
accounts, and offer them preferred services, such as preferential loan rates, and in some cases
lower minimum balance requirements. As of March 31, 2006, these accounts constituted approximately
48% of our total savings accounts by number and approximately 34% of our retail savings deposits by
value.
Non-Resident Indian Services
Non-resident Indians are an important target market segment for us given their relative affluence
and strong ties with family members in India. Our non-resident deposits amounted to Rs. 37.2
billion as of March 31, 2006,
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15
Customers and Marketing
Our target market for our retail services comprises upper and middle-income persons and high net
worth customers. We also target small businesses, trusts and non-profit corporations. As of March
31, 2006, 3.5% of our retail customers contributed approximately 44% of our retail deposits. We
market our products through our branches, telemarketing and a dedicated sales staff for niche
market segments. We also use third-party agents and direct sales associates to market certain
products and to identify prospective new customers.
Additionally, we obtain new customers through joint marketing efforts with our wholesale banking
department, such as our Corporate Salary Account package, and by cross-selling our retail products
to customers we obtain through our capital markets transactional services. We also market our auto
loan and two wheeler loan products through joint efforts with relevant manufacturers and
distributors.
We have programs that target other particular segments of the retail market. For example, our
private and preferred banking programs provide customized financial planning to high net worth
individuals in order to preserve and enhance their wealth. Private banking customers receive a
personal investment advisor who serves as their single-point HDFC Bank contact, and who compiles
personalized portfolio tracking products, including mutual fund and equity tracking statements. Our
private banking program also offers equity investment advisory products. While not as service
intensive as our private banking program, preferred banking offers similar services to a slightly
broader target segment. Top revenue-generating customers of our preferred banking program are
channeled into our private banking program.
Wholesale Banking
Overview
We provide our corporate and institutional clients a wide array of commercial banking products and
transactional services with an emphasis on high quality customer service and relationship
management.
Our principal commercial banking products include a range of financing products, documentary
credits (primarily letters of credit) and bank guarantees, foreign exchange and derivative products
and corporate deposit products. Our financing products include loans, bill discounting and credit
substitutes, such as commercial paper, debentures and other funded products. Our foreign exchange
and derivatives products assist corporations in managing their currency and interest rate
exposures.
For our commercial banking products, we generally target the top end of the Indian corporate
sector, including companies that are part of the large private sector business houses, large public
sector enterprises and multinational corporations, as well as leading small and mid-sized
businesses. We also target suppliers and distributors of top-end corporations as part of a supply
chain initiative for both our commercial banking products and transactional services whereby we
provide credit facilities to these suppliers and distributors and thereby establish relationships
with them. We aim to provide our corporate customers with high quality customized service. We have
relationship managers who focus on particular clients and who work with teams that specialize in
providing specific products and services, such as cash management and treasury advisory services.
Our principal transactional services include cash management services, capital markets
transactional services and correspondent banking services. We provide physical and electronic
payment and collection mechanisms to a range of corporations, financial institutions and government
entities. Our capital markets transactional services include custodial services for mutual funds
and clearing bank services for the major Indian stock exchanges and the newly created commodity
exchanges. In addition, we provide correspondent banking services, including cash management
services and funds transfers, to foreign banks and cooperative banks.
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16
Commercial Banking Products
Commercial Loan Products and Credit Substitutes
Our principal financing products are working capital facilities and term loans. Working capital
facilities consist of cash credit facilities and bill discounting. Cash credit facilities are
revolving credits provided to our customers that are secured by working capital such as inventory
and accounts receivable. Bill discounting consists of short term loans which are secured by bills
of exchange that have been accepted by our customers or drawn on another bank. In many cases, we
provide a package of working capital financing that may consist of loans and a cash credit facility
as well as documentary credits or bank guarantees. Term loans consist of short and medium term
loans. More than 90% of our loans are denominated in rupees with the balance being denominated in
various foreign currencies, principally the U.S. dollar. All of our commercial loans have been made
to customers in India.
We also purchase credit substitutes, which are typically comprised of commercial paper, short-term
debentures and preference shares issued by the same customers with whom we have a lending
relationship in our wholesale banking business. Investment decisions for credit substitute
securities are subject to the same credit approval processes as loans, and we bear the same
customer risk as we do for loans extended to these customers. Additionally, the yield and maturity
terms are generally directly negotiated by us with the issuer. Our credit substitutes have declined
over the last three years primarily as a result of new RBI and Securities and Exchange Board of
India ("SEBI") regulations that require the listing and rating of corporate paper, securities and
limit our investments in unlisted credit substitutes, making loans more attractive for our
corporate customers.
The following table sets forth the asset allocation of our commercial loans and financing products
by asset type. For accounting purposes, we classify cash credit facilities and bill discounting as
working capital loans, and commercial paper, debentures and preference shares as credit substitutes
(which in turn are classified as investments).
As of March 31,
2004
2005
2006
2006
(In millions)
Gross commercial loans:
Working capital
Rs.
54,104.5
Rs.
72,397.6
Rs.
78,693.4
US$
1,769.2
Term
loans
53,819.3
76,861.8
92,932.8
2,089.2
Total commercial
loans
Rs.
107,923.8
Rs.
149,259.4
Rs.
171,626.2
US$
3,858.4
Credit substitutes:
Commercial
paper
Rs.
906.7
Rs.
1,297.3
Rs.
—
US$
—
Non-convertible
debentures
14,852.0
12,018.7
9,308.1
209.3
Preference
shares
799.2
564.9
443.2
9.9
Total credit
substitutes
Rs.
16,557.9
Rs.
13,880.9
Rs.
9,751.3
US$
219.2
Customer assets
Rs.
124,481.7
Rs.
163,140.3
Rs.
181,377.5
US$
4,077.6
While we generally lend on a cash-flow basis, we also require collateral from the majority of
our borrowers. All borrowers must meet our internal credit assessment procedures, regardless of
whether the loan is secured. See "— Risk Management — Credit Risk — Wholesale Credit Risk".
We price our loans based on a combination of our own cost of funds, market rates and our rating of
the customer. An individual loan is priced on a fixed or floating rate based on a margin that
depends on the credit assessment of the borrower.
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17
The RBI requires banks to lend to specific sectors of the economy. For a detailed discussion of
these requirements, see "Supervision and Regulation — Regulations Relating to Making Loans —
Directed Lending".
Bill Collection, Documentary Credits and Guarantees
We provide bill collection, documentary credit facilities and bank guarantees for our corporate
customers. Documentary credits and bank guarantees are typically provided on a revolving basis. The
following table sets forth, for the periods indicated, the value of transactions processed of our
bill collection, documentary credits and bank guarantees:
As of March 31,
As of March 31,
2004
2005
2006
2006
(In millions)
Bill
collection
Rs.
172,623.6
Rs.
359,609.0
Rs.
381,657.9
US$
8,580.4
Documentary
credits
44,030.0
56,702.9
46,106.1
1,036.6
Bank guarantees
15,197.0
14,518.2
21,949.0
493.5
Total
Rs.
231,850.6
Rs.
430,830.1
Rs.
449,713.0
US$
10,110.5
Bill collection.
We provide bill collection services for our corporate clients in which we
collect bills on behalf of a corporate client from the bank of our client's customer. We do not
advance funds to our client until receipt of payment.
Documentary credits
. We issue documentary credit facilities on behalf of our customers for trade
financing, sourcing of raw materials and capital equipment purchases.
Bank guarantees.
We provide bank guarantees on behalf of our customers to guarantee their payment
or performance obligations. A large part of our guarantee portfolio consists of margin guarantees
to brokers issued in favor of stock exchanges.
Foreign Exchange and Derivatives
We offer our corporate customers foreign exchange and derivative products including spot and
forward foreign exchange contracts, interest rate swaps, currency swaps, currency options and other
derivatives. We are a leading participant in many of these markets in India and believe we are one
of the few Indian banks with significant expertise in derivatives, a market currently dominated by
the foreign banks.
Precious Metals
We are in the business of importing gold and silver bullion to leverage our distribution and
servicing strengths and cater to the domestic bullion trader segment. We generally import bullion
on a consignment basis so as to minimize price risk.
Wholesale Deposit Products
As of March 31, 2006, we had wholesale deposits totaling Rs. 210.0 billion, which represented 37.7%
of our total deposits and 26.5% of our total liabilities, including shareholders' equity. We offer
both non-interest-bearing current accounts and time deposits. As per RBI regulations, we cannot pay
interest for periods of less than seven days. We are allowed to vary the interest rates on our
wholesale deposits based
on the size of the deposit (for deposits greater than Rs. 1.5 million) so long as the rates booked
on a day are the same for all customers of that deposit size for that maturity. See "Selected
Statistical Information" for further information about our total deposits.
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18
Transactional Services
Cash Management Services
We are a leading provider of cash management services in India. Our services make it easier for our
corporate customers to expedite inter-city check collections, make payments to their suppliers more
efficiently, optimize liquidity and reduce interest costs. In addition to benefiting from the cash
float, which reduces our overall cost of funds, we also earn commissions for these services.
Our primary cash management service is check collection and payment. Through our electronically
linked branch network, correspondent bank arrangements and centralized processing, we can
effectively provide nationwide collection and disbursement systems for our corporate clients. This
is especially important because there is no nationwide payment system in India, and checks must
generally be returned to the city from which written in order to be cleared. Because of mail
delivery delays and the variations in city-based inter-bank clearing practices, check collections
can be slow and unpredictable, and can lead to uncertainty and inefficiencies in cash management.
We believe we have a strong position in this area relative to most other participants in this
market. Although the public sector banks have extensive branch networks, most of their branches
typically are still not electronically linked. The foreign banks are also restricted in their
ability to expand their branch network.
As of March 31, 2006 over 5,000 wholesale banking clients used our cash management services. These
clients include leading Indian private sector companies, public sector undertakings and
multinational companies. We also provide these services to most Indian insurance companies, many
mutual funds, brokers, financial institutions and various government entities.
We have also implemented a straight through processing solution to link our wholesale banking and
retail banking systems. This has led to reduced manual intervention in transferring funds between
the corporate accounts which are in the wholesale banking system and beneficiary accounts residing
in retail banking systems. This new initiative will help in reducing transaction costs.
We have a large number of commercial clients using our corporate internet banking for financial
transactions with their vendors, dealers and employees who bank with us.
The RBI has introduced a new inter-bank settlement system called the Real Time Gross
Settlement ("RTGS") system. The system facilitates real time settlements primarily between banks,
initially in select locations. This system is currently not fully operational. See "Risk Factors —
Risks Relating to Our Business — We could be adversely affected by the development of a nationwide
inter-bank settlement system".
Clearing Bank Services for Stock and Commodity Exchanges
We serve as a cash-clearing bank for major stock exchanges in India, including the National
Stock Exchange and The Stock Exchange, Mumbai. As a clearing bank, we provide the exchanges or
their clearing corporations with a means for collecting cash payments due to them from their
members or custodians and to make payments to these institutions. We make payments once the broker
or custodian deposits the funds with us. In addition to benefiting from the cash float, which
enables us to reduce our cost of funds, in certain cases we also earn commission on such services.
Custodial Services
We provide custodial services principally to Indian mutual funds, as well as to domestic and
international financial institutions. These services include safekeeping of securities and
collection of dividend and interest payments on securities. Most of the securities under our
custody are in book-entry
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19
(dematerialized) form, although we provide custody for securities in physical form as well for our
wholesale banking clients. We earn revenue from these services based on the value of assets under
safekeeping and the value of transactions handled.
Correspondent Banking Services
We act as a correspondent bank for cooperative banks, cooperative society and foreign banks. We
provide cash management services, funds transfers and services such as letters of credit, foreign
exchange transactions and foreign check collection. We earn revenue on a fee-for-service basis and
benefit from the cash float, which enables us to reduce our cost of funds.
We are well positioned to offer this service to cooperative banks and foreign banks in light of the
structure of the Indian banking industry and our position within it. Cooperative banks are
generally restricted to a particular state, and foreign banks have limited branch networks. The
customers of these banks frequently need services in other areas of the country that their own
banks cannot provide. Because of our technology platforms, geographical reach and the electronic
connectivity of our branch network, we can provide these banks with the ability to provide such
services to their customers. By contrast, although the public sector banks have extensive branch
networks and also provide correspondent banking services, most of them have not yet created
electronically connected networks and their branches typically operate independently of one
another.
Tax Collections
In April 2001, we were the first private sector bank to be appointed by the
government of India to collect direct taxes. In fiscal 2006, we collected more than Rs. 234 billion
of direct taxes for the government of India. We have also been appointed to collect sales, excise
and other indirect taxes within certain jurisdictions in India. In fiscal 2006 we
collected more than Rs. 24 billion of indirect taxes for the government of India. We earn a fee
from each tax collection and benefit from the cash float. We hope to expand our range of
transactional services by providing more services to government entities.
Treasury
Our Treasury Group manages our balance sheet, including our maintenance of reserve requirements and
our management of market and liquidity risk. Our Treasury Group also provides advice and execution
services to our corporate and institutional customers with respect to their foreign exchange and
derivatives transactions. In addition, our Treasury Group seeks to optimize profits from our
proprietary trading, which is principally concentrated on Indian government securities.
Our client-based activities consist primarily of advising corporate and institutional customers and
transacting spot and forward foreign exchange contracts and derivatives. Our primary customers are
multinational corporations, large and medium-sized domestic corporations, financial institutions,
banks and public sector undertakings. We also advise and enter into foreign exchange contracts with
some small companies and non-resident Indians.
The following describes our activities in the foreign exchange and derivatives markets, domestic
money markets and equities market. See also "— Risk Management" for a discussion of our management
of market risk including liquidity risk, interest rate risk and foreign exchange risk.
Foreign Exchange
We trade spot and forward foreign exchange contracts, primarily with maturities of up to three
years with our customers. To support our clients' activities, we are an active participant in the
Indian inter-bank foreign exchange market. We also trade, to a more limited extent, for our own
account. We believe we are a
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market maker in the dollar-rupee segments. Although spreads are very narrow, our total volume of
trading is significant with US$ 142.9 billion in foreign exchange traded in fiscal 2006.
Derivatives
We believe we are one of the few Indian banks that is a significant participant in the derivatives
market, which is dominated by foreign banks. We offer rupee-based interest rate swaps,
cross-currency swaps, forward rate agreements, options and other products. We also engage in
proprietary trades of rupee-based interest rate swaps and use them as part of our asset liability
management.
Domestic Money Market and Debt Securities Desk
Our principal activity in the domestic money market and debt securities market is to ensure that we
comply with our reserve requirements. These consist of a cash reserve ratio, which we meet by
maintaining balances with the RBI, and a statutory liquidity ratio, which we meet by purchasing
Indian government securities. See also "Supervision and Regulation — Legal Reserve Requirements".
Our local currency desk primarily trades Indian government securities for our own account. We also
participate in the inter-bank call deposit market and engage in limited trading of other debt
instruments.
Equities Market
We trade a limited amount of equities of Indian companies for our own account. As of March 31,
2006, we had an internal approved limit of Rs. 300 million for
secondary market purchases and Rs. 100
million for primary purchases of equity investments for proprietary trading. Our exposure as of
March 31, 2006 was approximately Rs. 120 million. We set limits on the amount invested in any
individual company as well as stop-loss limits.
Distribution Channels
We deliver our products and services through a variety of distribution channels, including
branches, ATMs, telephone and mobile telephone banking and internet banking.
Branch Network
As of March 31, 2006, we had an aggregate of 535 branches, including 23 extension counters. Our
branch network covers 228 cities in India, with 171 branches concentrated in the four largest
cities, Mumbai, Delhi, Chennai and Kolkata (Calcutta). We centralize our processing of transactions
and back office operations in Mumbai and Chennai. This structure enables the branch staff to focus
on customer service and selling our products. All of our branches are electronically linked so that
our customers can access their accounts from any branch regardless of where they have their
accounts.
Almost all of our branches focus exclusively on providing retail services and products, though a
few also provide wholesale services. The range of products and services available at each branch
depends in part on the size and location of the branch. Our extension counters are small offices,
primarily within office buildings, that provide specific commercial and retail banking services.
Automated Teller Machines
As of March 31, 2006, we had a total of 1,323 ATMs, of which 651 were located at our branches or
extension counters and 672 were located off-site, including at large residential developments, or
on major roads in metropolitan areas.
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Customers can use our ATMs for a variety of functions including withdrawing cash, monitoring bank
balances and, at most of our ATMs, ordering demand drafts and paying utility bills. Customers can
access their accounts from any of our ATMs. Our ATM cards cannot be used in non-HDFC Bank ATMs,
although our debit cards can be. ATM cards issued by other banks in the Plus, Cirrus and Amex
networks can be used in our ATMs and we receive a fee for each transaction.
Telephone Banking Call Centers
We provide telephone banking services to our customers in 189 cities. Customers can access their
accounts over the phone through our 24-hour automated voice response system and can order check
books, inquire as to balances and order stop payments. In select cities, customers can also engage
in financial transactions (such as cash transfers, opening deposits and ordering demand drafts). In
certain cities, we also have staff available during select hours to assist customers who want to
speak directly to one of our telephone bankers.
Internet Banking
Through our "Net Banking" channel, customers can access account information, track transactions,
transfer funds between accounts and to third parties who maintain accounts with us, make fixed
deposits, pay bills, request stop payments and make demand draft requests. We encourage use of our
internet banking service by offering some key services for free or at a lower cost.
Mobile Telephone Banking
We launched mobile telephone banking services in January 2000, making us the first bank to do so in
India. Customers in over a 150 locations are eligible to sign up for mobile telephone banking,
which allows them to access their accounts on their mobile telephone screens and to conduct a
variety of banking transactions including balance inquiries, stop payment orders and utility bill
payments.
Risk Management
Risk is inherent in our business and sound risk management is critical to our success. The
major types of risk we face are credit risk, market risk (which includes liquidity risk and price
risk) and operational risk. We have developed and implemented comprehensive policies and procedures
to identify, monitor and manage risk throughout the Bank.
Credit Risk
Credit risk is the possibility of loss due to the failure of any counterparty to abide by the terms
and conditions of any financial contract with us. We identify and manage this risk through (a) our
target market definitions, (b) our credit approval process, (c) our post-disbursement monitoring
and (d) our remedial management procedures.
Wholesale Credit Risk
For our commercial banking products, we generally target the top end of the Indian corporate
sector, including companies that are part of the large private sector business houses, large public
sector enterprises, and multinational corporations and leading small and mid-sized businesses. As a
result, our wholesale lending is generally concentrated among highly rated customers. In addition
to market targeting, the principal means of managing credit risk is the credit approval process. We
have policies and procedures to evaluate the potential credit risk of a particular counterparty or
transaction and to approve the transaction. For our wholesale clients, we have a risk grading
system that is applied to each corporate counterparty on an annual basis and in some cases
quarterly, basis. We also have limits for funded exposure to individual
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industries. In addition, we have limits for exposure to borrowers and groups of borrowers for
funded and non-funded exposures. Our credit risk policies for loans also apply to credit
substitutes. We also have a review process that ensures the proper level of review and approval
depending on the size of the facility and risk grading of the credit.
Our risk grading system is based on a combination of quantitative, qualitative and capitalization
measures. We assign each customer or counterparty a numerical grade, based on an analysis of key
ratios such as interest coverage, debt coverage, profit margin and leverage, as well as
capitalization or tangible net worth. We also consider qualitative variables such as industry risk,
market position, management competence and other factors. This grade may be modified depending on
the maturity of the facility being considered.
We are subject to RBI policies that limit our exposure to particular counter-parties and with
respect to particular instruments. The RBI provides that without prior approval not more than 15%
of our capital funds (as defined by RBI and calculated under Indian GAAP) may be extended as credit
exposure to an individual borrower, and not more than 40% of our capital funds may be extended as
credit exposure to a group of companies under the same management. In the case of infrastructure
projects, such as power, telecommunications, road and port projects, an additional exposure of up
to 5% of capital funds is allowed in respect of individual borrowers and 10% in respect of group
borrowers. The RBI has stated that banks may, in exceptional circumstances and with the approval of
their boards of directors, consider enhancement of the exposure to a borrower by a further 5% of
the capital funds. See "Supervision and Regulation — Credit Exposure Limits". During the fiscal
2006, the bank's credit exposures to single borrowers and group borrowers were within the limits
prescribed by Reserve Bank of India except in case of National Bank for Agricultural and Rural
Development ("NABARD"), where the single borrower limits were exceeded. The Board of Directors of
the Bank approved the excess over the prudential limits subject to a ceiling of 20% of capital
funds. At March 31, 2006, the book value of outstanding exposure to NABARD was within the board
approved limit of 20% of capital funds.
The RBI prohibits loans to companies with which we have any directors in common. The RBI also
requires that a portion of our lending activities be "directed" to specific priority sectors. See
"Supervision and Regulation — Regulations Relating to Making Loans — Directed Lending".
We follow a policy of portfolio diversification by industry. As of March 31, 2006, our funded
exposures in any single industry did not exceed 12% of our total funded exposures.
While we make our lending decisions largely on a cash-flow basis, we also take collateral for a
large number of our loans. Our short and medium-term loans are typically secured by a first charge
over inventory and receivables, and in some cases are further supported by a second charge over
fixed assets. Longer term loans are usually secured by a charge over fixed assets. For some loans,
we also require guarantees or letters of support from corporate parents. We generally do not make
project loans or loans to property developers, although we may take a charge over real property as
part of the security for a loan to a corporate borrower. Although we take collateral, we may not
always be able to realize its value in a default situation. See "Risk Factors — Risks Relating to
Our Business — We may be unable to foreclose on our collateral when borrowers default on their
obligations to us which may result in failure to recover the expected value of collateral
security".
Our credit approval process for wholesale loans requires three officers to approve the credit.
Although the particular level of approval varies depending on the size of the loan and the borrower
risk grading, no wholesale loan can be made without all three approvals. All working capital loans
are subject to review at annual or shorter intervals.
Once a loan is made, we undertake ongoing credit analysis and monitoring at several levels. Our
policies are designed to promote early detection of exposures that require special monitoring. If a
borrower wishes to renew or roll over the loan, we apply substantially the same standards as we
would to granting a new loan except that we do not usually perform an entirely new credit review.
Typically, we perform an annual
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23
credit review of each loan customer and update the review during the course of the year as
circumstances warrant. We generally rely on such review in connection with a rollover or renewal.
See "Selected Statistical Information" for a discussion of our policies regarding classification of
loans and advances as non-performing (and certain differences between our policies and the
practices of U.S. banks), our policies regarding provisioning for loans and information concerning
our non-performing assets and allowance for credit losses.
Retail Credit Risk
Our retail credit policy and approval process are designed for the fact that we have high volumes
of relatively homogeneous, small value transactions in each retail loan category. Because of the
nature of retail banking, our credit policies are based primarily on statistical analyses of risks
with respect to different products and types of customers. We monitor our own and industry
experience to determine and periodically revise product terms and desired customer profiles. We
then verify that an individual customer meets our lending criteria. Our retail loans are generally
either secured or made against direct debit instructions or delivery of post-dated checks to cover
all payments. It is a criminal offense in India to issue a bad check. In the case of most
automobile and other vehicle loans as well as unsecured personal loans, we require that the
borrower provide post-dated checks for a certain number of payments on the loan at the time the
loan is made. Automobile and commercial vehicle loans, two wheeler loans and other vehicle loans,
as well as loans against securities are all secured loans. We will generally lend up to 60% of the
market value of securities in the case of loans against equity shares, 90% of the value of the
automobile in case of automobile loans and 85% of the value of the two-wheeler in the case of
two-wheeler loans.
Foreign Exchange, Derivatives and Trading Activities
The credit risk of our foreign exchange and derivative transactions is managed the same way as we
manage our wholesale lending risk. We apply our risk grading system to our corporate counterparties
and set individual counterparty limits. With respect to debt securities, we primarily trade
government of India securities for our own account.
Market Risk
Market risk refers to potential losses arising from volatility in interest rates, foreign exchange
rates, equity prices and commodity prices. Market risk arises with respect to all market risk
sensitive financial instruments, including securities, foreign exchange contracts, equity
instruments and derivative instruments, as well as from balance sheet gaps. The objective of market
risk management is to avoid excessive exposure of our earnings and equity to loss and to reduce our
exposure to the volatility inherent in financial instruments.
Our Board of Directors reviews and approves the policies for the management of market risks and
dealing authorities and limits. The Risk Management Committee of the Board of Directors monitors
market risk policies and procedures and reviews market risk limits. The Board of Directors has
delegated the responsibility for ongoing general market risk management to the Asset Liability
Committee. This committee, which is chaired by the Managing Director and includes the heads of our
business groups, meets every alternate week and more often when conditions require. The Asset
Liability Committee reviews our product pricing for deposits and assets as well as the maturity
profile and mix of our assets and liabilities. It articulates our interest rate view and decides on
future business strategy with respect to interest rates. It reviews and sets funding policy and
also reviews developments in the markets and the economy and their impact on our balance sheet and
business. Finally, it ensures adherence to market risk limits and decides on our inter-segment
transfer pricing policy. The Market Risk Department specifies risk valuation methodology of various
treasury products, formulates procedures for portfolio risk valuation, assesses market risk factors
and assists in monitoring market risks for various treasury desks. Our treasury back-office is
responsible for reporting market risks of the treasury desks.
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The Financial Control Department is responsible for collecting data, preparing regulatory and
analytical reports and monitoring whether the interest rate and other policies and limits
established by the Asset Liability Committee are being observed. Our Treasury Group also assists in
implementing asset liability strategy and in providing information to the Asset Liability
Committee.
The following briefly describes our policies and procedures with respect to asset liability
management, liquidity risk, price risk and other risks such as foreign exchange and equities risks.
Asset Liability Management
We generally fund our core customer assets, consisting of loans and credit substitutes, with our
core customer liabilities, consisting principally of deposits. We also borrow in the short-term
inter-bank market. We use the majority of our funds to make loans or purchase securities. Most of
our liabilities and assets are short and medium term.
We maintain a substantial portfolio of liquid, high-quality Indian government securities. We
prepare regular maturity gap analyses to review our liquidity position, and must submit a monthly
analysis to the RBI.
We measure our exposure to fluctuations in interest rates primarily by way of a gap analysis. We
classify all rate sensitive assets and liabilities into various time period categories according to
contracted residual maturities or anticipated repricing dates, whichever is earlier. The difference
in the amount of assets and liabilities maturing or being repriced in any time period category
gives us an indication of the extent to which we are exposed to the risk of potential changes in
the margins on new or repriced assets and liabilities. We place limits on the gap between the
assets and liabilities that may be reset in any particular period.
Our Asset Liability Committee addresses the two principal aspects of our asset liability management
program as follows:
First, the Asset Liability Committee monitors the liquidity gap and, at the corporate level,
recommends appropriate financing or asset deployment strategies depending on whether the gap is a
net asset position or a net liability position, respectively. Operationally, in the short term, our
Treasury Group implements these recommendations through market borrowings or placements.
Second, the Asset Liability Committee monitors our interest rate gap and, at the corporate level,
recommends re-pricing of our asset or liability portfolios. Operationally, in the short term, our
Treasury Group implements these recommendations by entering into interest rate swaps.
In the longer term, our wholesale banking and retail banking groups implement these recommendations
through changes in the interest rates offered by us for different time period categories to either
attract or discourage deposits and loans in those time period categories.
See "Selected Statistical Information" for information on our asset-liability gap and the
sensitivity of our assets and liabilities to changes in interest rates.
Liquidity Risk
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The purpose of liquidity management is to ensure sufficient cash flow to meet all financial
commitments and to capitalize on opportunities for business expansion. This includes our ability to
meet deposit withdrawals either on demand or at contractual maturity, to repay borrowings as they
mature and to make new loans and investments as opportunities arise.
Liquidity is managed on a daily basis by the Treasury Group under the direction of the Asset
Liability Committee. The Treasury Group is responsible for ensuring that we have adequate
liquidity, ensuring that our funding mix is appropriate so as to avoid maturity mismatches and
price and reinvestment rate risk in case of a maturity gap, and monitoring local markets for the
adequacy of funding liquidity.
Price Risk
Price risk is the risk arising from price fluctuations due to market factors, such as changes in
interest rates and exchange rates. Our Treasury Group is responsible for implementing the price
risk management process within the limits approved by the Board of Directors. These limits are
independently monitored by the treasury operations group. We measure price risk through a two-stage
process, the first part of which is to assess the sensitivity of the value of a position to changes
in market factors to which our business is exposed. We then assess the probability of these changes
or the volatility of market factors. We manage price risk principally by establishing limits for
our money market activities and foreign exchange activities.
We monitor and manage our exchange rate risk through a variety of limits on our foreign exchange
activities. The RBI also limits the extent to which we can deviate from a "near square" position at
the end of the day (where sales and purchases of each currency are matched). Our own policies set
limits on maximum open positions in any currency during the course of the day as well as on
overnight positions. We also have gap limits that address the matching of forward positions in
various maturities and for different currencies. In addition, the RBI approves the aggregate gap
limit for us. This limit is applied to all currencies. We also have stop-loss limits that require
our traders to realize and restrict losses. We evaluate our risk on foreign exchange gap positions
on a daily basis using a Value at Risk model applied to all of our outstanding foreign exchange
instruments.
We impose position limits on our trading portfolio of marketable securities. These limits, which
vary by tenor, restrict the holding of marketable securities of all kinds depending on our
expectations about the yield curve. We also impose trading limits such as stop-loss limits and
aggregate contract limits, which require that trading losses be kept below prescribed limits and as
a result may require the realization of losses and elimination of positions.
Our Treasury Operations Department monitors actual positions against the required limits. The
treasury operations department is independent of the treasury department and has a separate
reporting line to the Managing Director through the head of operations.
Our derivatives risk is managed by the fact that we do not enter into or maintain unmatched
positions with respect to non-rupee-based derivatives. Our proprietary derivatives' trading is
primarily limited to rupee-based interest rate swaps and rupee currency options.
Operational Risk
Operational risks are risks arising from matters such as non-adherence to systems and procedures or
from frauds resulting in financial or reputation loss. Our Internal Audit and Compliance Department
plays an essential role in monitoring and limiting our operational risk. The primary focus of the
Audit Department is:
§
to independently evaluate the adequacy of all internal controls;
§
to ensure adherence to the operating guidelines, including regulatory and legal requirements; and
§
to recommend operation process improvements.
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The Department also performs special investigations and ad hoc reviews. In addition, our internal
audit and compliance department liaises with statutory auditors, central bank authorities and other
regulatory bodies.
In order to ensure total independence, the internal audit and compliance department reports
directly to the Chairman of the Board of Directors and the Audit and Compliance Committee of the
Board of Directors as well as indirectly to the Managing Director. The Audit and Compliance
Committee meets at least once per quarter to review all procedures, the effectiveness of the
controls and compliance with RBI regulations. In addition, the Committee conducts a semiannual
review of the performance of the Department itself.
Pursuant to RBI guidelines, some activities are required to be audited continuously. More than half
of our business, measured by transaction volume, is subject to concurrent auditing, including
foreign exchange, derivatives, equities, securities transactions, depositary services, retail
liability operations, reversals to the profit and loss account and monitoring of inter-branch
routing accounts. All other lines of business, our information technology department, branches,
services and products are audited on a set schedule, which is usually quarterly or half-yearly. Our
information technology is also subject to audit review and certification of all software, including
application software and system controls.
We are also subject to inspections conducted by the RBI under the Indian Banking Regulation Act.
The RBI has adopted the global practice of subjecting banks to examination on the basis of the
CAMELS model, a model that assigns confidential ratings to banks based on their capital adequacy,
asset quality, management, earnings, liquidity and systems.
During the year, the Reserve Bank of India (RBI) had undertaken
special scrutiny of certain customer accounts based on which it imposed
penalties on the Bank aggregating to Rs. 3.0 million under the provisions of the
Banking Regulation Act, 1949. The said penalties were imposed mainly for not displaying
prudence in the opening and monitoring operations of certain deposit and depositary accounts
in relation to know your customer (KYC) and certain other extant guidelines of the Reserve Bank
of India. We submit that we had followed documentation and related requirements as specified in
guidelines issued by RBI from time to time in opening and monitoring the operations of the accounts.
It appears that the in the said cases the customers planned and executed an ingenious way to beat the
system for personal gains resulting in the Bank failing to meet the spirit of the KYC guidelines. Although
our processes/systems did throw up these deviant transactions, they passed through because of lack of prudence
and negligence on the part of certain employees managing these processes. We have taken stern action against these
employees. In the light of the aforesaid experiences, we have further tightened certain internal control processes and
have instituted additional measures to ensure strict adherence to Know Your Customer / Anti Money Laundering norms.
Competition
We face strong competition in all of our principal lines of business. Our primary competitors are
large public sector banks, other private sector banks, foreign banks and, in some product areas,
non-banking financial institutions.
Retail Banking
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In retail banking, our principal competitors are the large public sector banks, which have much
larger deposit bases and branch networks, other new private sector banks and foreign banks in the
case of retail loan products. The retail deposit share of the foreign banks is quite small by
comparison to the public sector banks, and has also declined in the last five years, which we
attribute principally to competition from new private sector banks. However, some of the foreign
banks have a significant presence among non-resident Indians and also compete for non-branch-based
products such as auto loans and credit cards.
We face significant competition primarily from foreign banks in the debit and credit card segment.
In mutual fund sales and other investment related products, our principal competitors are brokers,
foreign banks and new private sector banks.
Wholesale Banking
Our principal competitors in wholesale banking are public and new private sector banks as well
as foreign banks. The large public sector banks have traditionally been the market leaders in
commercial lending. Foreign banks have focused primarily on serving the needs of multinational
companies and Indian corporations with cross-border financing requirements including trade and
transactional services, foreign exchange products and derivatives, while the large public sector
banks have extensive branch networks and large local currency funding capabilities.
Treasury
In our treasury advisory services for corporate clients, we compete principally with foreign banks
in foreign exchange and derivatives, as well as public sector banks in the foreign exchange and
money markets business.
Employees
Our number of employees increased from 9,030 as of March 31, 2005 to 14,878 as of March 31, 2006,
primarily as a result of the expansion of our branch network, an increase in the territories we
cover and substantial growth in our retail business, particularly in the credit card market. Almost
all our employees are located in India. Approximately 9.8% of our employees were managers or senior
managers, and 2.2% were assistant vice presidents, vice presidents or group heads. More than 99% of
our employees have university degrees.
We consider our relations with our employees to be good. Our employees do not belong to any union.
We use incentives in structuring compensation packages and have established a performance-based
bonus scheme under which permanent employees have a variable pay component of their salary.
In addition to basic compensation, employees are eligible to participate in our provident fund and
other employee benefit plans. The provident fund, to which both we and our employees contribute, is
a savings scheme, required by government regulation, under which the fund is required to pay to
employees a minimum annual return, which at present is 8.5%. If the return is not generated
internally by the fund, we are liable for the difference. Our provident fund has generated
sufficient funds internally to meet the annual return requirement since inception of the fund. We
have also set up a superannuation fund to which we contribute defined amounts. In addition, we
contribute specified amounts to a gratuity fund set up pursuant to Indian statutory requirements.
We focus on training our employees on a continuous basis. We have a training center in Mumbai,
where we conduct regular training programs for our employees. Management and executive trainees
generally
undergo an 8-12 week training module covering every aspect of banking. We offer courses conducted
by
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both internal and external faculty. In addition to ongoing on-the-job training, we provide
employees courses in specific areas or specialized operations on an as-needed basis.
Properties
Our registered office and corporate headquarters is located at HDFC Bank House, Senapati Bapat
Marg, Lower Parel, Mumbai 400 013, India. These premises were established during the third quarter
of fiscal 2004.
Close to the corporate headquarters is the administrative center at Kamala Mills Compound in Lower
Parel, Mumbai. We own our 120,000 square foot operations, training and information technology
centers in Chandivili, Mumbai. As of March 31,2006, we had a network consisting of 535 branches,
including 23 extension counters, and 1,323 ATMs, including 672 at non-branch locations. These
facilities are located throughout India. Nineteen of these branches are located on properties owned
by us; the remaining facilities are located on leased properties. The net book value of all our
owned properties, including branches, administrative offices and residential premises as of March
31, 2006 was Rs. 2.6 billion.
Legal Proceedings
We are involved in a number of legal proceedings in the ordinary course of our business. However,
we are currently not a party to any proceedings which, if adversely determined, might have a
material adverse effect on our financial condition or results of operations.
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RISK FACTORS
ADS holder should carefully consider the following risk factors as well as the other
information contained in this report in evaluating us and our business.
Risks Relating to Our Business
If we are unable to manage our rapid growth, our business could be adversely affected.
Our asset growth rate has been significantly higher than the Indian GDP growth rate as well as the
growth rate in the Indian banking industry over the last five fiscal years. For example, our total
assets in the three year period ended March 31, 2006 grew at a compounded annual growth rate of
36.4%. Our rapid growth has placed, and if it continues will place, significant demands on our
operational, credit, financial and other internal risk controls such as,
§
recruiting, training and retaining sufficient skilled personnel;
§
upgrading and expanding our technology platform;
§
developing and improving our products and delivery channels;
§
preserving our asset quality as our geographical presence
increases and customer profile changes; and
§
maintaining high levels of customer satisfaction.
An inability to manage our growth effectively could have a material adverse effect on our business
and our future financial performance.
Our business is vulnerable to volatility in interest rates.
Our results of operations depend to a great extent on our net interest revenue. During the fiscal
year ended March 31, 2006, net interest revenue after allowances for credit losses represented
60.8% of our net revenue. Changes in market interest rates could affect the interest rates charged
on our interest-earning assets differently from the interest rates paid on our interest-bearing
liabilities and also affect investment values. This difference could result in an increase in
interest expense relative to interest revenue, leading to a reduction in our net interest revenue
and net interest margin. In addition, a rise in interest rates could negatively affect demand for
our retail loans and other products.
Interest rates are highly sensitive to many factors beyond our control, including the monetary
policies of the RBI, deregulation of the financial sector in India, domestic and international
economic and political conditions and other factors. Any volatility in interest rates could
adversely affect our business, our future financial performance and the price of our equity shares
and ADSs. Yields on the Indian government's ten-year bonds were 5.2%, 6.7% and 7.5% as of March 31,
2004, March 31, 2005 and March 31, 2006, respectively.
If the level of non-performing loans in our portfolio increases, then our business could suffer.
Our gross non-performing loans and impaired credit substitutes represented 1.2% of our gross
customer assets as of March 31, 2006. Our non-performing loans and impaired credit substitutes net
of specific loan loss provisions represented 0.4% of our net customer assets portfolio as of March
31, 2006. As of March 31, 2006, we had provided for 118.2% of our total non-performing loans. We
cannot assure ADS holder that our provisions will be adequate to cover any further increase in the
amount of non-performing loans or any further deterioration in our non-performing loan portfolio.
In addition, we are a relatively young bank and we have not experienced a significant and prolonged
downturn in the economy.
A number of factors outside of our control could affect our ability to control and reduce
non-performing loans. These factors include developments in the Indian economy, movements in global
commodity
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markets, global competition, changes in interest rates and exchange rates and changes in
regulations, including with respect to regulations requiring us to lend to certain sectors
identified by the RBI or the Indian government. In addition, the expansion of our business may
cause our non-performing loans to increase and the overall quality of our loan portfolio to
deteriorate. If our non-performing loans increase, we may be required to increase our provisions,
which may affect our earnings and may result in us being unable to execute our business plan as
expected, which could adversely affect the price of our equity shares and ADSs.
We have high concentrations of customer exposures to certain customers and sectors and if any of
these exposures were to become non-performing, the quality of our portfolio could be adversely
affected.
We calculate customer and industry exposure in accordance with the policies established by Indian
GAAP and the RBI. In the case of customer exposures, we aggregate 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 and equity
shares). As of March 31, 2006, our ten largest customer
exposures totaled approximately Rs. 53.37
billion, representing approximately 78% of our capital funds valuation as per RBI guidelines based
on Indian GAAP figures, and none of these were classified as non-performing. Our largest single
customer exposure as of that date was Rs. 11.99 billion, representing approximately 17.4% of the
capital funds as on March 31, 2006 based on Indian GAAP figures. However, if any of our ten largest
customer exposures of the bank were to become non-performing, the quality of our portfolio and our
business could be adversely affected.
We monitor concentration of exposures to individual industries as a proportion of funded exposures.
As of March 31, 2006, our largest industry concentrations were as follows: automotive manufacturing
(8.8%), transportation (8.0%), housing finance (3.8%), retail traders (3.1%) and engineering
(2.8%). In addition, as of that date, approximately 39.0% of the concentration of our exposure was
retail (except where otherwise included in the above classification). As of that date, our total
non-performing loans and investments were concentrated in the following industries: automobiles
(19.6%), transportation (7.1%), textiles (6.4%) and electronics (4.6%).
In addition we have funded exposures to several state sponsored financial institutions primarily to
meet directed lending requirements as of March 31, 2006. This exposure represented 6.5% of our
total funded exposures. If these institutions experienced financial difficulties, as a result of
difficulties in the sectors to which they lend (such as agriculture) or otherwise, our business
could also be adversely affected.
We face greater credit risks than banks in more developed countries
.
One of our principal activities is providing financing to our customers, almost all of whom are
based in India. We are subject to the credit risk that our borrowers may not pay us in a timely
fashion or at all. The credit risk of all our borrowers is higher than in other developed countries
due to the higher uncertainty in our regulatory, political and economic environment. In addition,
unlike several developed countries, India does not have a well-established nationwide credit
bureau, which may affect the quality of information available to us about the credit history of our
borrowers, especially individuals and small businesses. Higher credit risk may expose us to greater
potential losses, which would adversely affect our business, our future financial performance and
the price of our equity shares and ADSs.
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 collateral security
.
Although we typically lend on a cash-flow basis, we take collateral for a large proportion of our
loans, consisting of liens on inventory, receivables and other current assets, and in some cases,
charges on fixed assets, such as real property, movable assets, such as vehicles, and financial
assets, such as marketable securities.
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31
Although there has been recent legislation which may strengthen the rights of creditors and lead to
faster realization of collateral in the event of default, we cannot guarantee that we will be able
to realize the full value of our collateral, due to, among other things, delays on our part in
taking immediate action, delays in bankruptcy foreclosure proceedings, stock market downturns,
defects in the perfection of collateral and fraudulent transfers by borrowers. In the event a
specialized regulatory agency gains jurisdiction over the borrower, creditor actions can be further
delayed.
In addition, the RBI has set forth guidelines on corporate debt restructuring. The guidelines
envisage that for debt amounts of Rs. 100 million and above, 60%
of the creditors by number in
addition to support of 75% of creditors by value, can decide to restructure the debt and such a
decision would be binding on the remaining creditors. In situations where we own 25% or less of the
debt of a borrower, we could be forced to agree to a long-drawn restructuring of debt, in
preference to foreclosure of security or a one-time settlement, which has generally been our
practice.
Our success depends in large part upon our management team and skilled personnel and our ability to
attract and retain such persons.
We are highly dependent on our management team, including the continued efforts of our Chairman,
our Managing Director, and other executive officers. Our future performance will be affected by the
continued service of these persons. We also face a continuing challenge to recruit and retain a
sufficient number of skilled personnel, particularly if we continue to grow. Competition for
management and other skilled personnel in our industry is intense, and we may not be able to
attract and retain the personnel we need in the future. The loss of key personnel may have a
material adverse effect on our business, results of operations, financial condition and ability to
grow.
In order to sustain our growth, we will need to maintain a minimum capital adequacy ratio. There is
no assurance that we will be able to access the capital markets when necessary to do so.
The RBI requires a minimum capital adequacy ratio of 9% to our total risk-weighted assets. We must
maintain this minimum capital adequacy level to support our continuous growth. Our capital adequacy
ratio was 11.4% on March 31, 2006. The implementation of the Basel II capital adequacy standards
could also result in a decline in our capital adequacy ratio. Our ability to support and grow our
business could be limited by a declining capital adequacy ratio if we are unable to or have
difficulty accessing the capital markets.
Material changes in Indian banking regulations could harm our business.
We operate in a highly regulated environment in which the RBI extensively supervises and regulates
all banks. Our business could be directly affected by any changes in policies for banks in respect
of directed lending, reserve requirements and other areas. For example, the RBI could change its
methods of enforcing directed lending standards so as to require more lending to certain sectors,
which could require us to change certain aspects of our business. In addition, we could be subject
to other changes in laws and regulations such as those affecting the extent to which we can engage
in specific businesses or those affecting foreign investment in the banking industry, as well as
changes in other governmental policies and enforcement decisions, income tax laws, foreign
investment laws and accounting principles. We cannot assure ADS
holders that laws and regulations
governing the banking sector will not change in the future or that any changes will not adversely
affect our business, our future financial performance and the price of our equity shares and ADSs.
We compete directly with banks that are much larger than we are.
We face strong competition in all areas of our business, and many of our competitors are much
larger than we are. We compete directly with the large public sector banks, which generally have
much larger customer and deposit bases, larger branch networks and more capital than we do. These
banks will become
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32
more competitive as they improve their customer services and technology. Some of the other private
sector banks in India are also larger than we are, based on such measurements. In addition, we
compete directly with foreign banks, some of which are part of the largest multinational financial
companies in the world. Due to competitive pressures, we may be unable to execute our growth
strategy successfully and offer products and services that generate reasonable returns, which may
impact our business and our future financial performance.
Consolidation in the banking industry could adversely affect us.
The Indian banking industry may experience greater consolidation. Recently, the government has
indicated its desire to consolidate certain public sector banks. In addition, there may be mergers
and consolidations among private banks. We may face more competition from larger banks as a result
of any such consolidation.
Our funding is primarily short and medium-term and if depositors do not roll over deposited funds
upon maturity, our business could be adversely affected.
Most of our funding requirements are met through short-term and medium-term funding sources,
primarily in the form of retail deposits. However, a portion of our assets have long-term
maturities, creating a potential for funding mismatches. In our experience, a substantial portion
of our customer deposits has been rolled over upon maturity and has been, over time, a stable
source of funding. However, if a substantial number of our depositors do not roll over deposited
funds upon maturity, our liquidity position could be adversely affected and we may be required to
seek more expensive sources of funding to finance our operations, which could have a material
adverse effect on our business.
We could be subject to volatility in revenue from our treasury operations
.
Treasury revenue is vulnerable to volatility in the market caused by changes in interest rates,
exchange rates, equity prices, commodity prices and other factors. Any increase in interest rates
would have an adverse effect on the value of our fixed income securities portfolio and may have an
adverse effect on our net revenue. Any decrease in our income due to volatility in revenue from
these activities could have a material adverse effect on the price of our equity shares and ADSs.
We could be adversely affected by the development of a nationwide inter-bank settlement system.
Currently, there is no nationwide payment system in India, and checks must generally be returned to
the city from which written in order to be cleared. Because of mail delivery delays and the
variation in city-based inter-bank clearing practices, check collections can be slow and
unpredictable. Through our electronically linked branch network, correspondent bank arrangements
and centralized processing, we effectively provide a nationwide collection and disbursement system
for our corporate clients. We enjoy cash float and earn fees from these services. The RBI has
recently introduced a new inter-bank settlement system called the Real Time Gross Settlement
("RTGS") system. The system facilitates real time settlements primarily between banks, in
select locations. This system is currently not fully operational. Once fully operational, this
system could have an adverse impact on the cash float and fees we have enjoyed from some of our
cash management services and therefore could adversely affect our future financial performance and
the price of our equity shares and ADSs.
Because of our many transactions with stock market participants, our business could suffer if there
is a prolonged or significant downturn on the Indian stock exchanges.
We provide a variety of services and products to participants involved with the Indian stock
exchanges. These include working capital funding and margin guarantees to share brokers, personal
loans secured by shares and initial public offering finance for retail customers, stock exchange
clearing services and depositary accounts. As of March 31, 2006, our capital market exposure was
Rs. 15.9 billion that primarily
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33
included investments in equity shares, loans to share brokers and financial guarantees issued to
stock exchanges on behalf of share brokers. At 6.12% of advances (computed as per the RBI norms)
this was within the ceiling approved by the RBI. As a result of our exposure to this industry, a
significant or prolonged downturn on the Indian stock exchanges could have a material adverse
effect on our business and cause the price of equity shares and ADSs to go down. Our capital market
exposure including that of our subsidiaries whose financials we have
consolidated is Rs. 16.3 billion.
Significant fraud, system failure or calamities could adversely impact our business.
We seek to protect our computer systems and network infrastructure from physical break-ins as well
as fraud and system failures. Computer break-ins and power and communication disruptions could
affect the security of information stored in and transmitted through our computer systems and
network infrastructure. We employ security systems, including firewalls and password encryption,
designed to minimize the risk of security breaches. Although we intend to continue to implement
security technology and establish operational procedures to prevent fraud, break-ins, damage and
failures, there can be no assurance that these security measures will be adequate. A significant
failure of security measures or operational procedures could have a material adverse effect on our
business and our future financial performance.
In addition, both our centralized data center and our back-up systems are separately located in the
greater Mumbai area. In the event of a regional disaster such as an earthquake, it is possible that
both systems could be simultaneously damaged or destroyed. Although we have established a remote
disaster recovery site at Bangalore that replicates our network and certain applications currently
based in Mumbai, and believe that we will be able to retrieve critical applications within an
optimal time frame, it would still take some time to make the system fully operational.
HDFC Limited controls a significant percentage of our share capital and exercises substantial
influence over board decisions.
Housing Development Finance Corporation Limited ("HDFC Limited") and its subsidiaries owned 22.0%
of our equity as of March 31, 2006. So long as HDFC Limited and its subsidiaries hold at least a
20.0% equity stake in us, HDFC Limited is entitled to nominate the two directors who are not
required to retire by rotation to our board, including the Chairman and our Managing Director,
subject to RBI approval. Accordingly, HDFC Limited may be able to exercise substantial control over
our board and over matters subject to a shareholder vote.
We may face potential conflicts of interest relating to our principal shareholder, HDFC Limited
.
Although we currently have no agreements with HDFC Limited or any other HDFC group companies that
restrict us from offering products and services that are offered by them, our relationship with
these companies may cause us not to offer products and services that are already offered by other
HDFC group companies or may effectively prevent us from taking advantage of business opportunities.
As a result, any conflicts of interest between HDFC Limited and us or any other HDFC group
companies and us could adversely affect our business and the price of our equity shares and ADSs.
RBI guidelines relating to ownership in private banks could discourage or prevent a change of
control or other business combination involving us and could require HDFC Limited to reduce
substantially its equity interest in us.
The RBI has issued guidelines concerning ownership in private sector banks. 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
stockholders. Further RBI's approval is required before we can register the transfer of 5% or more
of our shares (paid up capital) to an individual or group.
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34
We believe that the new rules will not be applied to the equity interest in us held by HDFC Limited
and its subsidiaries.
We may face increased competition as a result of recently revised guidelines that relax
restrictions on the presence of foreign banks in India.
In March 2004, the Ministry of Commerce and Industry of India revised guidelines on foreign
investors in the Indian banking sector. The revised guidelines permit up to 74% of the paid-up
capital of a bank to be held by foreign investors and allow foreign banks to operate in India
through branches, wholly-owned subsidiaries or subsidiaries that hold an aggregate foreign
investment of up to 74% in a private bank. Implementation of the revised guidelines will take place
in two phases. From March 2005 to March 2009, foreign banks will be permitted to establish a
presence in India only through wholly-owned subsidiaries that meet certain criteria, and the
acquisition of holdings in private sector Indian banks will be permitted only with respect to banks
identified by the RBI for restructuring. The second phase of implementation of the revised
guidelines will commence in April 2009 after a review of the first phase. Any growth in the
presence of foreign banks or in foreign investments in Indian banks may increase the competition
that we face and could have a material adverse effect on our business.
If we fail to comply with Section 404 of the Sarbanes-Oxley Act of 2002, our reputation and
the value of our securities may be adversely affected.
Section 404 of the Sarbanes Oxley Act of 2002 ("Section 404") requires us to include in our Annual
Report on Form 20-F management's assessment of the effectiveness of our internal controls over
financial reporting, together with an attestation report from our auditors. Section 404 applies to
us as of March 31, 2007. We have recently begun a formal process for the purposes of compliance
with Section 404 and although we expect to complete this in a
timely manner, there is no assurance we will be able to do so.
A change in U.S. GAAP accounting standards for employee stock options is likely to have an adverse
impact on our net income.
In December 2004, the Financial Accounting Standards Board issued Statement of Financial Accounting
Standards No. 123(R), Share-Based Payment, which eliminates the ability to account for share-based
compensation transactions using the intrinsic value approach, which we currently use, and requires
instead that such transactions be accounted for using a fair-value based method. Application of
SFAS 123(R) is likely to reduce our net income from what we would otherwise report using the
intrinsic value approach. We are required to apply SFAS 123(R) to all awards granted, modified or
settled in our first reporting period under U.S. GAAP after June 15, 2006. In applying the
standard, we can elect to follow either a prospective method or a retrospective method under which
we would restate our previously issued financial statements. We have
since elected to follow prospective method in implementing SFAS 123(R). If we were to adopt the standard using the retrospective
method, our net income would have been Rs. 900.9 million less than reported in the year ended March
31, 2005 and Rs. 1,229.9 million less than reported in the year ended March 31,2006. See also
"Management's Discussion and Analysis — New Accounting Pronouncements — Share-Based Payments" and
Note 2(q) to our audited financial statements included elsewhere herein.
Risks Relating to Investments in Indian Companies
A slowdown in economic growth in India could cause our business to suffer
.
Our performance and the quality and growth of our assets are necessarily dependent on the health of
the overall Indian economy. A slowdown in the Indian economy could adversely affect our business,
including our ability to grow our asset portfolio, the quality of our assets, and our ability to
implement our strategy. In particular, because India depends significantly on imported oil for its
energy needs, the Indian economy could be adversely affected by the continuing high oil prices.
India's economy could also be adversely
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35
affected by a general rise in interest rates, weather conditions adversely affecting agriculture or
other factors. In addition, the Indian economy is in a state of transition. The share of the
services sector of the economy is rising while that of the industrial, manufacturing and
agricultural sectors is declining. It is difficult to gauge the impact of these fundamental
economic changes on our business.
Political instability or changes in the government in India could delay the liberalization of the
Indian economy and adversely affect economic conditions in India generally, which could impact our
financial results and prospects.
Since 1991, successive Indian governments have pursued policies of economic liberalization,
including significantly relaxing restrictions on the private sector. Nevertheless, the role of the
Indian central and state governments in the Indian economy as producers, consumers and regulators
has remained significant. The leadership of India has changed many times since 1996. The current
coalition-led central government, which came to power in May 2004, has announced policies and taken
initiatives that support the economic liberalization policies that have been pursued by previous
central governments. However, we cannot assure ADS holder that these liberalization policies will
continue in the future. The rate of economic liberalization could change, and specific laws and
policies affecting banking and finance companies, foreign investment, currency exchange and other
matters affecting investment in our securities could change as well. Any significant change in
India's economic liberalization and deregulation policies could adversely affect business and
economic conditions in India generally and our business in particular.
Terrorist attacks, civil unrest and other acts of violence or war involving India and other
countries could adversely affect the financial markets and our business
.
Terrorist attacks and other acts of violence or war may negatively affect the Indian markets on
which our equity shares trade and also adversely affect the worldwide financial markets. These acts
may also result in a loss of business confidence, make travel and other services more difficult and
ultimately adversely affect our business. In addition, any deterioration in relations between India
and Pakistan might result in investor concern about stability in the region, which could adversely
affect the price of our equity shares and ADSs.
India has also witnessed civil disturbances in recent years and it is possible that future civil
unrest as well as other adverse social, economic and political events in India could have an
adverse impact on us. Such incidents could also create a greater perception that investment in
Indian companies involves a higher degree of risk and could have an adverse impact on our business
and the price of our equity shares and ADSs.
Natural calamities could have a negative impact on the Indian economy and cause our business to
suffer.
India has experienced natural calamities such as earthquakes, a tsunami, floods and drought in the
past few years. The extent and severity of these natural disasters determines their impact on the
Indian economy. For example, as a result of drought conditions in the country during fiscal 2003,
the agricultural sector recorded a negative growth of 5.2%. Further prolonged spells of below
normal rainfall or other natural calamities could have a negative impact on the Indian economy,
adversely affecting our business and the price of our equity shares and ADSs.
Any downgrading of India's debt rating by an international rating agency could have a negative
impact on our business.
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 additional financing is available. This
could have an adverse effect on our business and future financial performance and our ability to
obtain financing and fund our growth.
We need to take prior RBI approval for opening new branches to increase our infrastructure and
expand our reach into different geographical segments. Delay in getting
approval for branches could have a negative impact on our future
financial performance.
The RBI
introduced a liberalized branch licensing policy in September 2005. We have applied
for branches under the said policy. Till date we have not received any approvals for the same.
However, RBI has advised us that the same is under review. Any prolonged delay on the receipt of
such documents could adversely affect our future financial performance.
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36
Risks Relating to the ADSs and Equity Shares
Historically, our ADSs have traded at a significant premium to the trading prices of our underlying
equity shares, a situation which may not continue.
Historically, our ADSs have traded on the New York Stock Exchange at a substantial premium to the
trading prices of our underlying equity shares on the Indian stock exchanges. Please see "Price
Range of Our American Depositary Shares and Equity Shares" for the underlying data. We believe that
this price premium has resulted from the relatively small portion of our market capitalization
previously represented by ADSs, restrictions imposed by Indian law on the conversion of equity
shares into ADSs, and an apparent preference for investors to trade dollar-denominated securities.
Over time some of the restrictions on issuance of ADSs imposed by Indian law have been relaxed
and we expect that other restrictions may be relaxed in the future. No assurances can be made that
the historical premium enjoyed by ADSs compared to equity shares will not be reduced or eliminated.
ADS holder will not be able to vote.
Investors in ADSs will have no voting rights, unlike holders of the equity shares. Under the
deposit agreement, the depositary will abstain from voting the equity shares represented by the
ADSs. If ADS holders wish, they may withdraw the equity shares underlying the ADSs and seek to vote
(subject to Indian restrictions on foreign ownership) the equity shares they obtain upon
withdrawal. However, this withdrawal process may be subject to delays and ADS holder may not be
able to redeposit the equity shares. For a discussion of the legal restrictions triggered by a
withdrawal of the equity shares from the depositary facility upon surrender of ADSs, see
"Restrictions on Foreign Ownership of Indian Securities".
ADS holder's ability to withdraw equity shares from the depositary facility is uncertain and may be
subject to delays.
India's restrictions on foreign ownership of Indian companies limit the number of equity shares
that may be owned by foreign investors and generally require government approval for foreign
investments. Investors who withdraw equity shares from the ADS depositary facility for the purpose
of selling such equity shares will be subject to Indian regulatory restrictions on foreign
ownership upon withdrawal. It is possible that this withdrawal process may be subject to delays.
For a discussion of the legal restrictions triggered by a withdrawal of equity shares from the
depositary facility upon surrender of ADSs, see "Restrictions on Foreign Ownership of Indian
Securities".
There is a limited market for the ADSs.
Although our ADSs are listed and traded on the New York Stock Exchange, we cannot be certain that
any trading market for our ADSs will be sustained, or that the present price will correspond to the
future price at which our ADSs will trade in the public market. Indian legal restrictions may also
limit the supply of ADSs. The only way to add to the supply of ADSs would be through an additional
issuance. We cannot guarantee that a market for the ADSs will continue.
Conditions in the Indian securities market may affect the price or liquidity of our equity
shares and ADSs.
The Indian securities markets are smaller and more volatile than securities markets in more
developed economies. The Indian stock exchanges have in the past experienced substantial
fluctuations in the prices
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37
of listed securities. The BSE Sensex, which is an index composed of 30 of the largest and most
actively traded stocks on the Bombay Stock Exchange has been very volatile for the last few months.
The governing bodies of the Indian stock exchanges have from time to time imposed restrictions on
trading in certain securities, limitations on price movements and margin requirements. Although the
price of our stock has not been as volatile as the markets generally, future fluctuations could
have a material adverse affect on the price of our equity shares and ADSs.
Settlement of trades of equity shares on Indian stock exchanges may be subject to delays
.
The equity shares represented by our ADSs are listed on the National Stock Exchange and The Stock
Exchange, Mumbai. Settlement on these stock exchanges may be subject to delays and an investor in
equity shares withdrawn from the depositary facility upon surrender of ADSs may not be able to
settle trades on these stock exchanges in a timely manner.
ADS holder may be unable to exercise preemptive rights available to other shareholders.
A company incorporated in India must offer its holders of equity shares preemptive 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 these rights have been waived by
at least 75% of the company's shareholders present and voting at a shareholders' general meeting.
U.S. investors in our ADSs may be unable to exercise preemptive rights for our equity shares
underlying our ADSs unless a registration statement under the Securities Act is effective with
respect to those rights or an exemption from the registration requirements of the Securities Act is
available. Our decision to file a registration statement will depend on the costs and potential
liabilities associated with any registration statement as well as the perceived benefits of
enabling U.S. investors in our ADSs to exercise their preemptive rights and any other factors we
consider appropriate at the time. We do not commit to filing a registration statement under those
circumstances. If we issue any securities in the future, these securities may be issued to the
depositary, which may sell these securities in the securities markets in India for the benefit of
the investors in our ADSs. There can be no assurance as to the value, if any, the depositary would
receive upon the sale of these securities. To the extent that investors in our ADSs are unable to
exercise preemptive rights, their proportional interests in us would be reduced.
Because the equity shares underlying our ADSs are quoted in rupees in India, ADS holder may be
subject to potential losses arising out of exchange rate risk on the Indian rupee and risks
associated with the conversion of rupee proceeds into foreign currency.
Fluctuations in the exchange rate between the U.S. dollar and the Indian rupee may affect the value
of ADS holder's investment in our ADSs. Specifically, if the relative value of the Indian rupee to
the U.S. dollar declines, as it generally has over the past several years, each of the following
values will also decline:
§
the U.S. dollar equivalent of the Indian rupee trading price of
our equity shares in India and, indirectly, the U.S. dollar
trading price of our ADSs in the United States;
§
the U.S. dollar equivalent of the proceeds that ADS holder would
receive upon the sale in India of any equity shares that ADS
holder withdraw from the depositary; and
§
the U.S. dollar equivalent of cash dividends, if any, paid in
Indian rupees on the equity shares represented by our ADSs.
Financial instability in other countries, particularly emerging market countries, could disrupt our
business and affect the price of our equity shares and ADSs.
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 the financial systems of other emerging markets may cause
increased volatility in Indian financial markets and indirectly in the Indian economy in general.
Any worldwide financial
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38
instability could also have a negative impact on the Indian economy, including the movement of
exchange rates and interest rates in India, which could adversely affect the Indian financial
sector, including us. Any financial disruption could have an adverse effect on our business, our
future financial performance, our shareholders' equity and the price of our equity shares and ADSs.
ADS holder may not be able to enforce a judgment of a foreign court against us.
We are a limited liability company incorporated under the laws of India. All but one of our
directors and executive officers and some of the experts named in this report are residents of
India and almost all of our assets and the assets of these persons are located in India. It may not
be possible for investors in our ADSs to effect service of process outside India upon us or our
directors and executive officers and experts named in the report that are residents of India or to
enforce judgments obtained against us or these persons in foreign courts predicated upon the
liability provisions of foreign countries, including the civil liability provisions of the federal
securities laws of the United States. Moreover, it is unlikely that a court in India would award
damages on the same basis as a foreign court if an action were brought in India or that an Indian
court would enforce foreign judgments if it viewed the amount of damages as excessive or
inconsistent with Indian practice.
There may be less company information available on Indian securities markets than securities
markets in developed countries
.
There is a difference between the level of regulation and monitoring of the Indian securities
markets and the activities of investors, brokers and other participants and that of markets in the
United States and other developed economies. SEBI and the stock exchanges are responsible for
improving disclosure and other regulatory standards for the Indian securities markets. SEBI has
issued regulations and guidelines on disclosure requirements, insider trading and other matters.
There may, however, be less publicly available information about Indian companies than is regularly
made available by public companies in developed economies.
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39
PRICE RANGE OF OUR AMERICAN DEPOSITARY SHARES AND EQUITY SHARES
Our ADSs, each representing three equity shares, par value Indian Rs. 10 per share, are listed
on the New York Stock Exchange under the symbol "HDB". Our equity shares, including those
underlying the ADSs, are listed on the National Stock Exchange under the symbol HDFCBANK and The
Stock Exchange, Mumbai under the code 500180. Our fiscal quarters end on June 30 of each year for
the first quarter, September 30 for the second quarter, December 31 for the third quarter and March
31 for the fourth quarter.
Trading Prices of Our ADSs on the New York Stock Exchange
The following table shows:
§
the reported high and low prices for our ADSs in U.S. dollars on the New York Stock Exchange; and
§
the average daily trading volume for our ADSs on the New York Stock Exchange.
Average daily ADS
Price per ADS
trading volume
High
Low
(Number of ADSs)
Fiscal
2003
US$
16.3
US$
11.9
42,778
2004
34.9
15.4
68,228
2005
First Quarter
33.1
19.6
103,313
Second Quarter
34.0
25.7
37,966
Third Quarter
45.9
30.5
88,325
Fourth Quarter
50.0
38.8
194,834
2006
First Quarter
48.5
40.0
127,761
Second Quarter
53.0
45.3
142,473
Third Quarter
54.8
42.0
205,373
Fourth Quarter
59.7
51.2
193,353
Most Recent Six Months
March 2006
55.8
52.4
170,182
April 2006
62.5
54.9
221,937
May 2006
63.6
51.6
247,445
June 2006
55.8
43.0
368,386
July 2006
55.0
47.3
206,525
August 2006
58.0
52.4
123,052
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40
Trading Prices of Our Equity Shares on the National Stock Exchange
The following table shows:
§
the reported high and low market prices for our equity shares in rupees on the National Stock
Exchange;
§
the imputed high and low closing sales prices for our equity shares translated into U.S. dollars; and
§
the average daily trading volume for our equity shares on the National Stock Exchange.
Price per
Price per
Average daily
equity share
equity share
equity share
High
Low
High
Low
trading volume
Fiscal Year
2002
Rs.
255.0
Rs.
184.1
US$
5.7
US$
4.1
85,109
2003
256.0
186.0
5.8
4.2
94,016
2004
406.8
231.0
9.1
5.2
294,090
2005
First Quarter
400.0
256.2
9.0
5.8
250,044
Second Quarter
416.7
341.1
9.4
7.7
338,098
Third Quarter
530.0
396.2
11.9
8.9
346,242
Fourth Quarter
628.6
475.1
14.1
10.7
366,794
2006
First Quarter
643.0
448.0
14.5
10.1
262,870
Second Quarter
765.0
537.9
17.2
12.1
438,678
Third Quarter
748.5
603.0
16.8
13.6
465,565
Fourth Quarter
812.0
680.0
18.3
15.3
526,244
Most Recent Six Months
March
812.0
721.0
18.3
16.2
542,918
April
865.0
740.9
19.4
16.7
555,505
May
895.0
710.0
20.1
16.0
571,663
June
814.8
615.2
18.3
13.8
481,029
July
816.0
680.0
18.3
15.3
388,205
August
870.0
764.1
19.6
17.2
278,540
The closing
price for our equity shares on the National Stock Exchange was Rs.
925.4 (US$ 20.8) per share on September 29, 2006.
As of March 31, 2006 there were 184,168 holders of record of our equity shares, excluding ADSs, of
which 44 had registered addresses in the United States and held an aggregate of 37,097 of our equity
shares.
Table of Contents
41
DESCRIPTION OF EQUITY SHARES
We incorporate by reference the information disclosed under "Description of Equity Shares" in
our registration statement on Form F-3 filed on January 21, 2005 (File No 333-121096).
Table of Contents
42
DIVIDEND POLICY
We have paid dividends every year since fiscal 1997. The following table sets forth, for the
periods indicated, the dividend per equity share and the total amount of dividends paid on the
equity shares, both exclusive of dividend tax. All dividends were paid in rupees.
Dividend per equity share
Total amount of dividends paid(1)
(in millions)
Relating to Fiscal Year
2002
Rs.
2.50
US$
0.056
Rs.
703.4
US$
15.8
2003
3.00
0.067
850.5
19.1
2004
3.50
0.079
1,000.5
22.5
2005
4.50
0.101
1,400.7
31.5
2006
5.50
0.124
1,722.3
38.7
(1)
Includes dividends paid on shares held by the Employees
Welfare Trust.
Our dividends are generally declared and paid in the fiscal year following the year as to which
they relate. Under Indian law, a company pays dividends upon a recommendation by its board of
directors and approval by a majority of the shareholders at the annual general meeting of
shareholders held within six months of the end of each fiscal year. The shareholders have the right
to decrease but not to increase the dividend amount recommended by the board of directors.
Currently, we pay a 12.5% direct tax, a 10% surcharge and a 2% of add on tax in respect of
dividends paid by us. These are direct taxes paid by us; these taxes are not payable by
shareholders and are not withheld or deducted from the dividend payments set forth above. The tax
rates imposed on us in respect of dividends paid in prior periods varied, and in fiscal 2003, tax
on dividend was payable by shareholders.
Future dividends will depend on our revenues, cash flows, financial condition (including capital
position) and other factors. ADS holders will be entitled to receive dividends payable in respect
of the equity shares represented by ADSs. Cash dividends in respect of the equity shares
represented by ADSs will be paid to the depositary in Indian rupees and, except in certain
instances will be converted by the depositary into U.S. dollars. The depositary will distribute
these proceeds to ADS holders. The equity shares represented by ADSs will rank equally with all
other equity shares in respect of dividends.
For a description of regulation of dividends, see "Supervision and Regulation — Requirements of the
Banking Regulation Act — Restrictions on Payment of
Dividends".
Table of Contents
43
SELECTED FINANCIAL AND OTHER DATA
The following table sets forth our selected financial and operating data. Our selected income
statement data for the fiscal years ended March 31, 2004, 2005 and 2006 and the selected balance
sheet data as of March 31, 2005 and 2006 are derived from our audited financial statements included
in this report together with the report of Deloitte Haskins & Sells, independent registered public
accounting firm. Our selected balance sheet data as of March 31, 2002, March 31, 2003, March 31,
2004 and selected income data for the year ended March 31, 2002 and March 31, 2003 are derived from
our audited financial statements not included in this report. For the convenience of the reader,
the selected financial data as of and for the year ended March 31, 2006 have been translated into
U.S. dollars at the rate on such date of Rs. 44.48 per US$ 1.00.
You should read the following data with the more detailed information contained in "Management's
Discussion and Analysis of Financial Condition and Results of Operations" and our financial
statements. Footnotes to the following data appear below the final table.
Years ended March 31,
2002
2003
2004
2005
2006
2006
(In millions, except per equity share data)
Selected income statement data:
Interest and dividend revenue
Rs.
16,448.0
Rs.
19,424.8
Rs.
24,591.5
Rs.
29,209.4
Rs.
43,528.0
US$
978.6
Interest expense
10,762.5
11,779.2
11,983.1
13,223.7
19,621.8
441.1
Net interest revenue
5,685.5
7,645.6
12,608.4
15,985.7
23,906.2
537.5
Allowance for credit losses, net
451.6
741.5
2,343.4
3,048.2
5,032.0
113.1
Net interest revenue after allowance for
credit losses
5,233.9
6,904.1
10,265.0
12,937.5
18,874.2
424.4
Non-interest revenue, net
3,215.1
4,397.3
4,697.6
8,211.5
12,147.9
273.0
Net revenue
8,449.0
11,301.4
14,962.6
21,149.0
31,022.1
697.4
Non-interest expense
4,196.0
6,057.9
8,369.3
11,413.9
17,846.8
401.2
Income before income taxes
4,253.0
5,243.5
6,593.3
9,735.1
13,175.3
296.2
Income tax expense
1,294.6
1,729.7
1,838.8
3,125.4
3,965.7
89.2
Net income before minority interest
Rs.
2,958.4
Rs.
3,513.8
Rs.
4,754.5
Rs.
6,609.7
Rs.
9,209.6
US$
207.0
Minority interest
—
—
—
—
22.5
0.5
Net income
Rs.
2,958.4
Rs.
3,513.8
Rs.
4,754.5
Rs.
6,609.7
Rs.
9,187.1
US$
206.5
Per equity share data:
Earnings per share, basic
Rs.
11.10
Rs.
12.57
Rs.
16.87
Rs.
22.78
Rs.
29.45
US$
0.66
Earnings per share, diluted
11.04
12.51
16.70
22.60
29.08
0.65
Dividends per share
2.50
3.00
3.50
4.50
5.50
0.12
Book value(1)
79.06
93.36
110.36
159.22
176.49
3.97
Equity share data:
Equity shares outstanding at end of period
279.0
279.7
282.8
309.9
313.1
313.1
Weighted average equity shares outstanding
— basic
266.6
279.6
281.9
290.1
311.9
311.9
Weighted average equity shares outstanding
— diluted
267.9
281.4
284.7
292.5
315.9
315.9
Table of Contents
44
Years ended March 31,
2002
2003
2004
2005
2006
2006
(In millions)
Selected balance sheet data:
Total assets
Rs.
243,032.2
Rs.
311,840.7
Rs.
426,835.6
Rs.
535,544.2
Rs.
790,969.4
US$
17,782.6
Cash and cash equivalents
34,590.6
23,944.9
33,010.4
37,575.8
61,194.3
1,375.8
Term placements (2)
—
7,747.4
3,565.2
8,699.6
10,243.7
230.3
Loans, net of allowance
71,528.9
118,299.9
177,681.1
256,486.9
395,274.3
8,886.5
Of which:
Non-performing loans, net of
specific allowances
536.4
683.3
269.9
591.4
1,578.9
35.5
Investments:
Investments held for trading
3,837.6
3,976.1
6,233.8
1,278.5
2,945.6
66.2
Investments available for sale
80,320.6
98,929.2
133,274.6
204,292.8
273,457.0
6,147.9
Investments held to maturity(3)
35,429.9
38,426.7
36,368.4
—
—
—
Total
119,588.1
141,332.0
175,876.8
205,571.3
276,402.6
6,214.1
Of which:
Credit substitutes(4)
35,126.0
29,752.8
16,557.9
13,880.9
9,751.3
219.2
Total liabilities
220,971.3
285,727.6
395,619.8
486,206.2
735,476.6
16,535.0
Long-term debt
2,157.9
2,116.0
6,086.0
5,028.1
17,028.6
382.8
Short-term borrowings
21,600.3
21,579.6
24,064.2
62,079.1
75,676.7
1,701.4
Total deposits
176,538.1
223,760.0
304,062.0
363,542.5
557,305.4
12,529.3
Minority Interest
—
—
—
—
225.3
5.0
Shareholders' equity
22,060.9
26,113.1
31,215.8
49,338.0
55,267.5
1,242.6
Years ended March 31,
2002
2003
2004
2005
2006
2006
(In millions)
Period average(5)
Total assets
Rs.
202,013.2
Rs.
257,020.8
Rs.
357,123.8
Rs.
448,029.6
Rs.
621,249.5
US$
13,966.9
Interest-earning assets
183,488.8
230,451.9
327,523.4
424,620.1
589,311.0
13,248.9
Loans, net of allowance
59,374.9
82,461.2
136,527.4
204,919.0
323,709.9
7,277.7
Total liabilities
185,512.4
232,933.8
328,458.9
407,265.5
572,893.7
12,879.8
Interest-bearing liabilities
137,681.1
175,598.6
236,551.0
298,276.8
419,000.5
9,420.0
Long-term debt
2,159.7
2,280.3
2,605.9
5,371.3
7,345.7
165.1
Short-term borrowings
18,105.9
15,362.9
33,040.7
42,594.6
73,569.3
1,654.0
Total deposits
142,854.5
186,847.7
262,707.7
342,693.5
463,701.8
10,425.0
Of which:
Interest-bearing deposits
117,415.5
157,955.4
200,904.4
250,310.9
338,085.5
7,600.8
Shareholders' equity
16,500.8
24,087.0
28,664.9
40,764.1
48,355.80
1,087.1
Table of Contents
45
As of or for the years ended March 31,
2002
2003
2004
2005
2006
(In percentage)
Profitability:
Net income (after minority interest) as a percentage of:
Average total assets
1.5
1.4
1.3
1.5
1.5
Average shareholders' equity
17.9
14.6
16.6
16.2
19.0
Dividend payout ratio(6)
23.8
24.2
21.0
21.2
18.7
Spread(7)
2.4
2.7
3.5
3.5
3.8
Net interest margin(8)
3.1
3.3
3.8
3.8
4.1
Cost-to-net revenue ratio(9)
49.7
53.6
55.9
54.0
57.2
Cost-to-average assets ratio(10)
2.1
2.4
2.3
2.5
2.9
Capital:
Total capital adequacy ratio(11)
13.9
11.1
11.7
12.2
11.4
Tier 1 capital adequacy ratio(11)
10.8
9.5
8.0
9.6
8.5
Tier 2 capital adequacy ratio(11)
3.1
1.6
3.7
2.6
2.9
Average shareholders' equity as a percentage of average total assets
8.2
9.4
8.0
9.1
7.8
Asset quality:
Gross non-performing loans as a percentage of gross loans
2.7
2.0
1.7
1.6
1.2
Gross non-performing customer assets as a percentage of gross customer assets(12)
1.9
1.6
1.6
1.5
1.2
Net non-performing loans as a percentage of net loans
0.7
0.6
0.2
0.2
0.4
Net non-performing customer assets as a percentage of net customer assets(12)
0.5
0.5
0.2
0.2
0.4
Net non-performing loans as a percentage of total assets
0.2
0.2
0.1
0.1
0.2
Specific allowance for credit losses as a percentage of gross non-performing loans
72.6
71.1
91.0
85.5
67.0
Total allowance for credit losses as a percentage of gross non-performing loans
81.9
78.8
116.8
133.2
118.2
Allowance for credit losses as a percentage of gross total loans
2.2
1.6
1.9
2.1
1.4
(1)
Represents the difference between total assets and total liabilities, divided by the
number of shares outstanding at the end of each reporting period.
(2)
Includes placements with banks and financial institutions with original maturities
of greater than three months.
(3)
During the year ended March 31, 2005 we transferred certain securities classified as
held to maturity to the available for sale category for reasons not permitted under U.S. GAAP.
As a result we were required to transfer all remaining securities to the available for sale
category and we are prevented from establishing a held to maturity portfolio until after March
31, 2007. See "Management's Discussion and Analysis of Financial Condition and Results of
Operations".
(4)
Credit substitutes consist of investments in commercial paper, debentures and
preference shares issued by our corporate customers. See "Business — Commercial Banking
Products — Commercial Loan Products and Credit Substitutes".
(5)
Average balances are the average of daily outstanding amounts. Average figures are
unaudited.
(6)
Represents the ratio of total dividends payable on equity shares relating to each
fiscal year, excluding the dividend distribution tax, as a percentage of net income of that
year. Dividends of each year are typically paid in the following fiscal year. See "Dividend
Policy".
(7)
Represents 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 revenue to average interest-earning assets. Cost of average interest-bearing
liabilities is the ratio of interest expense to average interest-bearing liabilities. For
purposes of calculating spread, interest bearing liabilities include non-interest bearing
current accounts and cash floats from transactional services.
(8)
Represents the ratio of net interest revenue to average interest-earning assets. The
difference in net interest margin and spread arises due to the difference in the amount of
average interest-earning assets
Table of Contents
46
and average interest bearing liabilities. If average
interest-earning assets exceed average interest-bearing liabilities, net interest margin is
greater than spread. If average interest-bearing liabilities exceed average interest-earning
assets, net interest margin is less than spread.
(9)
Represents the ratio of non-interest expense to the sum of net interest revenue and
non-interest revenue.
(10)
Represents the ratio of non-interest expense to average total assets.
(11)
Tier 1 and Tier 2 capital adequacy ratios are computed in accordance with the
guidelines of the Reserve Bank of India, based on financial statements prepared in accordance
with Indian GAAP. See "Supervision and Regulation".
(12)
Customer assets consist of loans and credit substitutes.
Table of Contents
47
SELECTED STATISTICAL INFORMATION
The following information should be read together with our financial statements included in
this report as well as "Management's Discussion and Analysis of Financial Condition and Results of
Operations". All amounts presented in this section are in accordance with U.S. GAAP, other than
capital adequacy ratios, and are audited, except for average amounts. Footnotes appear at the end
of each related section of tables.
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 daily
average of 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 non-performing loans and are net of allowance
for credit losses. We have not recalculated tax-exempt income on a tax-equivalent basis.
Years ended March 31,
2004
2005
2006
Interest
Average
Interest
Average
Interest
Average
Average
revenue/
yield/
Average
revenue/
yield/
Average
revenue/
Yield/
Balance
expense
cost
Balance
expense
cost
balance
expense
cost
(in millions, except percentages)
Assets:
Interest-earning assets:
Cash equivalents
Rs.
24,370.4
Rs.
856.8
3.5
%
Rs.
30,541.2
Rs.
835.9
2.7
%
Rs.
36,720.2
Rs.
860.2
2.3
%
Term placements
5,104.8
252.8
5.0
%
6,132.4
398.6
6.5
%
9,471.6
648.8
6.9
Investments available for sale:
Tax free(1)
25,286.0
1,475.6
5.8
%
19,486.5
926.9
4.8
%
10,856.0
598.4
5.5
Taxable
99,107.3
7,129.2
7.2
%
151,689.8
9,678.8
6.4
%
205,220.9
12,371.2
6.0
Investments held to maturity
31,576.2
2,882.5
9.1
%
10,001.0
793.4
7.9
%
—
—
Investments held for trading
5,551.3
289.6
5.2
%
1,850.2
144.4
7.8
%
3,332.4
195.6
5.9
Loans, net:
Retail loans
52,903.7
4,829.9
9.1
%
94,398.6
8,304.8
8.8
%
157,272.2
14,864.4
9.5
Wholesale loans
83,623.7
6,875.1
8.2
%
110,520.4
8,126.6
7.4
%
166,437.7
13,989.4
8.4
Total interest-earning assets:
Rs.
327,523.4
Rs.
24,591.5
7.5
%
Rs.
424,620.1
Rs.
29,209.4
6.9
%
Rs.
589,311.0
Rs.
43,528.0
7.4
%
Non-interest-earning assets:
Cash
1,631.4
2,732.5
5,116.5
Property and equipment
5,424.2
6,251.2
7,416.5
Other assets
22,544.8
14,425.8
19,405.5
Total non-interest earning assets
29,600.4
23,409.5
31,938.5
Total assets
Rs.
357,123.8
Rs.
24,591.5
6.9
%
Rs.
448,029.6
Rs.
29,209.4
6.5
%
Rs.
621,249.5
Rs.
43,528.0
7.0
%
Liabilities:
Interest-bearing liabilities:
Savings account deposits
Rs.
61,535.8
Rs.
1,633.9
2.7
%
Rs.
97,026.4
Rs.
2,539.2
2.6
%
Rs.
138,850.4
Rs.
3,731.6
2.7
Time deposits
139,368.6
8,645.3
6.2
%
153,284.5
8,534.9
5.6
%
199,235.1
11,858.5
6.0
Short-term borrowings(2)
33,040.7
1,435.9
4.3
%
42,594.6
1,759.4
4.1
%
73,569.3
3,497.7
4.8
Long-term debt
2,605.9
268.0
10.3
%
5,371.3
390.2
7.3
%
7,345.7
534.0
7.3
Total interest-bearing liabilities
Rs.
236,551.0
11,983.1
5.1
%
Rs.
298,276.8
Rs.
13,223.7
4.4
%
Rs.
419,000.5
Rs.
19,621.8
4.7
%
Non-interest-bearing liabilities:
Non-interest-bearing deposits (3)
61,803.3
92,382.6
125,616.3
Other liabilities
30,104.6
16,606.1
28,276.9
Total non-interest-bearing
liabilities
91,907.9
108,988.7
153,893.3
Total liabilities
Rs.
328,458.9
Rs.
11,983.1
3.6
%
Rs.
407,265.5
Rs.
13,223.7
3.2
%
Rs.
572,893.7
Rs.
19,621.8
3.4
%
Shareholders' equity
28,664.9
40,764.1
48,355.8
Total liabilities and shareholders'
equity
Rs.
357,123.8
Rs.
11,983.1
3.4
%
Rs.
448,029.6
Rs.
13,223.7
3.0
%
Rs.
621,249.5
Rs.
19,621.8
3.2
%
(1)
Yields on tax free securities are not on a tax equivalent basis.
(2)
Includes securities sold under repurchase agreements.
(3)
Includes current accounts and cash floats from transactional services.
Table of Contents
48
Analysis of Changes in Interest Revenue and Interest Expense Volume and Rate
The following table sets forth, for the periods indicated, the allocation of the changes in our
interest revenue and interest expense between average volume and changes in average rates.
Fiscal 2005 vs. Fiscal 2004
Fiscal 2006 vs. Fiscal 2005
Increase (decrease)
(1)
due to
Increase (decrease)
(1)
due to
Change in
Change In
Net
average
Change in
Net
Average
Change in
Change
volume
Average rate
change
Volume
Average rate
(in millions)
Interest revenue:
Cash equivalents
Rs.
(20.9
)
Rs.
216.9
Rs.
(237.8
)
Rs.
19.6
Rs.
169.1
Rs.
(149.5
)
Term placements
145.8
50.9
94.9
254.9
217.1
37.8
Investments available for sale:
Tax free
(548.7
)
(338.4
)
(210.3
)
(328.5
)
(410.5
)
82.0
Taxable
2,549.6
3,782.5
(1,232.9
)
2,692.5
3,415.6
(723.1
)
Investments held to maturity
(2,089.1
)
(1,969.5
)
(119.6
)
(793.4
)
(793.4
)
—
Investments held for trading
(145.2
)
(193.1
)
47.9
51.2
115.7
(64.5
)
Loans, net:
Retail loans
3,474.9
3,788.3
(313.4
)
6,559.6
5,531.4
1,028.2
Wholesale loans
1,251.5
2,211.3
(959.8
)
5,862.8
4,111.6
1,751.2
Total interest-earning assets
Rs.
4,617.9
Rs.
7,548.9
Rs.
(2,931.0
)
Rs.
14,318.7
Rs.
12,356.6
Rs.
1962.1
Interest expense:
Savings account deposits
Rs.
905.3
Rs.
942.3
Rs.
(37.0
)
Rs.
1,192.4
Rs.
1,094.5
Rs.
97.9
Time deposits
(110.4
)
863.2
(973.6
)
3,323.6
2,558.5
765.1
Short-term borrowings
323.5
415.2
(91.7
)
143.8
143.4
0.4
Long-term debt
122.2
284.4
(162.2
)
1,738.3
1,279.4
458.9
Total interest-bearing liabilities
Rs.
1,240.6
Rs.
2,505.1
Rs.
(1,264.5
)
Rs.
6,398.1
Rs.
5,075.8
Rs.
1,322.3
Net interest revenue
Rs.
3,377.3
Rs.
5,043.8
Rs.
(1,666.5
)
Rs.
7,920.6
Rs.
7280.8
Rs.
639.8
(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.
Years ended March 31,
2004
2005
2006
(in millions, except percentages)
Interest revenue
Rs.
24,591.5
Rs.
29,209.4
Rs.
43,528.0
Average interest-earning assets
327,523.4
424,620.1
589,311.0
Interest expense
11,983.1
13,223.7
19,621.8
Average interest-bearing liabilities
236,551.0
298,276.8
419,000.5
Average total assets
357,123.8
448,029.6
621,249.5
Average interest-earning assets as a percentage of average total assets
91.7
%
94.8
%
94.9
%
Average interest-bearing liabilities as a percentage of average total
assets
66.2
%
66.6
%
67.4
%
Average interest-earning assets as a percentage of average
interest-bearing liabilities
138.5
%
142.4
%
140.6
%
Yield
7.5
%
6.9
%
7.4
%
Cost of funds
(1)
3.6
%
3.2
%
3.4
%
Spread
(2)
3.5
%
3.5
%
3.8
%
Net interest margin
(3)
3.8
%
3.8
%
4.1
%
(1)
Excludes shareholder's equity.
(2)
Represents 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 revenue to average interest-earning assets. Cost of average interest-bearing
liabilities is the ratio of interest expense to
Table of Contents
49
average interest-bearing liabilities. For purposes of calculating spread,
interest-bearing liabilities include non-interest bearing current accounts and
cash floats from transactional services.
(3)
Net interest margin is the ratio of net interest revenue to average interest-earning
assets. The difference in net interest margin and spread arises due to the difference in
amount of average interest-earning assets and average interest-bearing liabilities. If average
interest-earning assets exceed average interest-bearing liabilities, net interest margin is
greater than spread. If average interest-bearing liabilities exceed average interest-earning
assets, net interest margin is less than spread.
Returns on Equity and Assets
The following table presents selected financial ratios for the periods indicated.
Years ended March 31,
2004
2005
2006
(in millions, except percentages)
Net income
Rs.
4,754.5
Rs.
6,609.7
Rs.
9,187.1
Average total assets
357,123.8
448,029.6
621,249.5
Average shareholders' equity
28,664.9
40,764.1
48,355.8
Net income as a percentage of average total assets
1.3
%
1.5
%
1.5
%
Net income as a percentage of average shareholders' equity
16.6
%
16.2
%
19.0
%
Average shareholders' equity as a percentage of average total assets
8.0
%
9.1
%
7.8
%
Dividend
payout ratio
21.0
%
21.2
%
18.7
%
Investment Portfolio
Available for Sale Investments
The following tables set forth, as of the dates indicated, information related to our investments
available for sale.
At March 31,
2004
2005
2006
Gross
Gross
Gross
Gross
Gross
Gross
Amortized
unrealized
unrealized
Fair
Amortized
unrealized
unrealized
Fair
Amortized
unrealized
unrealized
Fair
Cost
gain
loss
value
cost
gain
loss
value
cost
gain
Loss
Value
(in millions)
Government securities
Rs.
63,535.0
Rs.
1,426.9
Rs.
37.4
Rs.
64,924.5
Rs.
111,482.3
Rs.
1,017.4
Rs.
672.2
Rs.
111,827.5
Rs.
189,660.3
Rs.
405.2
Rs.
1,957.1
Rs.
188,108.4
Other debt securities
30,554.7
2,106.7
101.1
32,560.3
39,320.6
1,171.1
181.1
40,310.6
37,862.8
282.4
496.9
37,648.3
Total debt securities
94,089.7
3,533.6
138.5
97,484.8
150,802.9
2,188.5
853.3
152,138.1
227,523.1
687.6
2,454.0
225,756.7
Non-debt securities
35,083.4
907.4
201.0
35,789.8
51,930.2
506.3
281.8
52,154.7
47,959.8
186.1
445.6
47,700.3
Total
Rs.
129,173.1
Rs.
4,441.0
Rs.
339.5
Rs.
133,274.6
Rs.
202,733.1
Rs.
2,694.8
Rs.
1,135.1
Rs.
204,292.8
Rs.
275,482.9
Rs.
873.7
Rs.
2,899.6
Rs.
273,457.0
Held to Maturity Investments
The following table sets forth, as of the dates indicated, information related to our investments
held to maturity:
At March 31,
2004
2005
2006
Gross
Gross
Gross
Gross
Gross
Gross
unrealized
unrealized
Amortized
unrealized
unrealized
Amortized
unrealized
unrealized
Amortized
Fair Value
gain
loss
Cost
Fair Value
gain
loss
Cost
Fair Value
gain
loss
Cost
(in millions)
Government securities
Rs.
28,424.2
Rs.
1,180.1
Rs.
1.1
Rs.
27,245.2
Rs.
—
Rs.
—
Rs.
—
Rs.
—
Rs.
—
Rs.
—
Rs.
—
Rs.
—
Other debt securities
9,633.4
511.1
0.9
9,123.2
—
—
—
—
—
—
—
—
Total debt securities
38,057.6
1,691.2
2.0
36,368.4
—
—
—
—
—
—
—
—
Non-debt securities
—
—
—
—
—
—
—
—
—
—
—
—
Total
Rs.
38,057.6
Rs.
1,691.2
Rs.
2.0
Rs.
36,368.4
Rs.
—
Rs.
—
Rs.
—
Rs.
—
Rs.
—
Rs.
—
Rs.
—
Rs.
—
As of March 31, 2005 and March 31, 2006, we had no investments held to maturity.
Table of Contents
50
Held for Trading Investments
The
following table sets forth, as of the dates indicated, information related to our investments
held for trading:
At March 31,
2004
2005
2006
Gross
Gross
Gross
Gross
Gross
Gross
Amortized
unrealized
unrealized
Fair
Amortized
unrealized
unrealized
Fair
Amortized
unrealized
unrealized
Fair
cost
gain
loss
value
cost
gain
loss
value
Cost
gain
loss
Value
(in millions)
Government
securities
Rs.
4,244.2
Rs.
25.0
Rs.
—
Rs.
4,269.2
Rs.
1,278.5
Rs.
—
Rs.
—
Rs.
1,278.5
Rs.
2,948.1
Rs.
6.1
Rs.
8.6
Rs.
2,945.6
Other debt
Securities
1,986.6
1.1
23.1
1,964.6
—
—
—
—
—
—
—
—
Total debt
securities
6,230.8
26.1
23.1
6,233.8
1,278.5
—
—
1,278.5
2,948.1
Rs.
6.1
Rs.
8.6
Rs.
2,945.6
Non-debt
Securities
—
—
—
—
—
—
—
—
—
—
—
—
Total
Rs.
6,230.8
Rs.
26.1
Rs.
23.1
Rs.
6,233.8
Rs.
1,278.5
Rs.
—
Rs.
—
Rs.
1,278.5
Rs.
2,948.1
Rs.
6.1
Rs.
8.6
Rs.
2,945.6
Residual Maturity Profile
The following table sets forth, for the periods indicated, an analysis of the residual maturity
profile of our investments in government and corporate debt securities classified as available for
sale securities and their market yields.
At March 31, 2006
Up to one year
One to five years
Five to ten years
More than ten years
Amount
Yield
Amount
Yield
Amount
Yield
Amount
Yield
(in millions, except percentages)
Government securities
Rs.
31,097.9
5.85
%
Rs.
80,546.1
6.83
%
Rs.
51,190.5
6.80
%
Rs.
25,272.1
6.78
%
Other debt securities
2,755.3
7.79
%
27,869.1
7.86
%
7,025.7
8.07
%
—
—
Total debt securities, fair value
33,853.2
6.01
%
108,415.2
7.10
%
58,216.2
6.96
%
25,272.1
6.78
%
Total amortized cost
Rs.
33,839.9
Rs.
109,395.8
Rs.
58,688.7
Rs.
25,598.7
Funding
Our funding operations are designed to ensure stability, low cost of funding and effective
liquidity management. The primary source of funding is deposits raised from retail customers, which
were 69.2% and 62.3% of total deposits as of March 31, 2005 and March 31, 2006, respectively.
Wholesale banking deposits represented 30.8% and 37.7% of total deposits as of March 31, 2005 and
March 31, 2006, respectively.
Total Deposits
The following table sets forth, for the periods indicated, our average outstanding deposits and the
percentage composition by each category of deposits. The average cost (interest expense divided by
the average of daily balance for the relevant period) of savings deposits was 2.7% in fiscal 2004,
2.6% in fiscal 2005 and 2.7% in fiscal 2006. The average cost of time deposits was 6.2% in fiscal
2004, 5.6% in fiscal 2005 and 6.0% in fiscal 2006. The average deposits for the periods set forth
are as follows:
Table of Contents
51
Years ended March 31,
2004
2005
2006
Amount
% of total
Amount
% of total
Amount
% of total
(in millions, except percentages)
Current
deposits
(1)
Rs.
61,803.3
23.5
%
Rs.
92,382.6
27.0
%
Rs.
125,616.3
27.1
%
Savings deposits
61,535.8
23.4
97,026.4
28.3
138,850.4
29.9
Time deposits
139,368.6
53.1
153,284.5
44.7
199,235.1
43.0
Total
Rs.
262,707.7
100.0
%
Rs.
342,693.5
100.0
%
Rs.
463,701.8
100.0
%
(1)
Includes current accounts and cash floats from transactional services.
As of March 31, 2006, individual time deposits in excess of Rs. 0.1 million have a balance to
maturity profile as follows-
At March 31, 2006
Up to 3
More than 1
Months
3 to 6 months
6 to 12 Months
Year
(In millions)
Balance to
maturity for
deposits exceeding
Rs. 0.1 million
each
Rs.
73,162.3
Rs.
39,403.8
Rs.
75,861.8
Rs.
38,301.9
Short-term Borrowings
The following table sets forth, for the periods indicated, information related to our short-term
borrowings, which are comprised primarily of money-market borrowings. Short term borrowings exclude
deposits and securities sold under repurchase agreements.
Years ended March 31,
2004
2005
2006
(in millions, except percentages)
Period end balance
Rs.
24,064.2
Rs.
62,079.1
Rs.
75,676.7
Average balance during the period
Rs.
33,040.7
Rs.
42,594.6
Rs.
73,569.3
Maximum outstanding
Rs.
52,274.3
Rs.
62,079.1
Rs.
100,008.2
Average interest rate during the period (1)
4.3
%
4.1
%
4.8
%
Average interest rate at period end(2)
4.1
%
4.3
%
6.4
%
(1)
Represents the ratio of interest expense on short-term borrowings to the average of
daily balances of short-term borrowings.
(2)
Represents the weighted average rate of short-term borrowings outstanding as of
March 31, 2004, 2005 and 2006.
Subordinated Debt
We also obtain funds from the issuance of unsecured non-convertible subordinated debt securities,
which qualify as Tier 2 risk-based capital under the RBI's guidelines for assessing capital
adequacy. We issued three tranches of subordinated debt securities during calendar years 1998, 1999
and 2001 at coupon rates of 13.00%, 13.75% and 11.00% respectively. The 1998 tranche was repaid at
maturity in fiscal 2004. The 1999 and 2001 tranches are repayable in
fiscal 2007. During fiscal 2004, we issued subordinated debt securities aggregating Rs. 4.0 billion, of which Rs. 3.95 billion
carries a coupon rate of 5.90% and matures in May 2013 and Rs. 50 million carries a coupon rate of
6.0% and matures in May 2016. During the year the Bank raised Rs. 12.02 billion subordinated debt
at an annualized coupon between 7.5% to 8.6% and having a maturity
ranging from 9 to 10 years. As of March 31, 2006  Rs. 17.0 billion aggregate principal amount of subordinated debt was outstanding, of
which Rs. 94.12% qualified as Tier 2 capital.
Table of Contents
52
Asset Liability Gap and Interest Sensitivity Data
The following table sets forth, for the periods indicated, our asset-liability gap position:
As of March 31, 2006
Total within
Over 1 year
Over 3 years
0-28 Days
29-90 days
91-180 days
6-12 months
one year
to 3 years
to 5 years
Over 5 years
Total
Cash and cash equivalents(2)(3)
Rs.
30,222.3
Rs.
5,318.6
Rs.
2,824.0
Rs.
3,047.4
Rs.
41,412.3
Rs.
17,073.2
Rs.
2,370.2
Rs.
338.6
Rs.
61,194.3
Term placements
185.3
518.9
2,104.7
4,041.5
6,850.4
1,229.7
562.7
1,600.9
10,243.7
Investments held for trading(4)
2,945.6
—
—
—
2,945.6
—
—
—
2,945.6
Investments available for sale (5)(6)
6,163.8
3,144.0
11,130.0
17,483.5
37,921.3
63,130.0
69,165.4
103,240.3
273,457.0
Securities purchased under agreement to resell
4,200.0
—
—
—
4,200.0
—
—
—
4,200.0
Loans, net (7) (8)
51,222.8
57,688.4
31,045.8
46,344.2
186,301.2
159,487.8
25,151.9
24,333.4
395,274.3
Accrued interest receivable
8,662.7
—
—
—
8,662.7
—
—
—
8,662.7
Other assets
21,865.1
—
—
—
21,865.1
4,412.1
—
—
26,277.2
Total financial assets
Rs.
125,467.5
Rs.
66,669.9
Rs.
47,104.5
Rs.
70,916.6
Rs.
310,158.5
Rs.
245,332.8
Rs.
97,250.2
Rs.
129,513.2
Rs.
782,254.7
Deposits (9)
52,415.1
41,390.3
37,784.2
58,676.8
190,266.4
326,889.3
37,361.9
2,787.8
557,305.4
Debt (10)
29,074.6
46,588.9
150.0
—
75,813.5
525.9
345.4
16,020.5
92,705.3
Other Liabilities
85,465.9
—
—
—
85,465.9
—
—
—
85,465.9
Total financial liabilities
Rs.
166,955.6
Rs.
87,979.2
Rs.
37,934.2
Rs.
58,676.8
Rs.
351,545.8
Rs.
327,415.2
Rs.
37,707.3
Rs.
18,808.3
Rs.
735,476.6
Asset/Liability Gap
Rs.
(41,488.1
)
Rs.
(21,309.3
)
Rs.
9,170.3
Rs.
12,239.8
Rs.
(41,387.4
)
Rs.
(82,082.5
)
Rs.
59,542.9
Rs.
110,704.9
Rs.
46,778.1
Cumulative gap
Rs.
(41,488.1
)
Rs.
(62,797.4
)
Rs.
(53,627.1
)
Rs.
(41,387.4
)
Rs.
(41,387.4
)
Rs.
(123,469.8
)
Rs.
(63,926.9
)
Rs.
46,778.1
Rs.
46,778.1
Cumulative gap as a percentage of total
financial assets
(33.1
)%
(94.2
)%
(113.8
)%
(58.4
)%
(13.3
)%
(50.3
)%
(65.7
)%
36.1
%
6.0
%
(1)
Assets and liabilities are classified into the applicable maturity categories based
on residual maturity unless specifically mentioned.
(2)
Cash on hand is classified in the "0-28" days category.
(3)
Cash and cash equivalents include balances with the RBI to satisfy its cash reserve
ratio requirements. These balances are held in the form of overnight cash deposits but we
classify these balances to the applicable maturity categories on a basis proportionate to the
classification of related deposits.
(4)
Securities in the trading book are classified in the "0-28" days or "29-90" days
categories based on the expected time of realization for such investments.
(5)
Securities held towards satisfying the statutory liquidity requirement ("SLR")
prescribed by the RBI are classified based on the applicable maturity categories on a basis
proportionate to the classification of related deposits.
(6)
Shares are classified in the "greater than five years" category and units of open
ended mutual fund are classified in the "0-28" days category.
(7)
Includes net non-performing loans which are classified in the "greater than five
years" category.
Table of Contents
53
(8)
Ambiguous maturity overdrafts are classified under various maturity categories based
on historical behavioral analyses that we have performed to determine the appropriate maturity
categorization of such advances.
(9)
Non-maturity deposits are classified under various maturity categories based on the
historical behavioral analysis that we have performed to determine the appropriate maturity
categorization of such deposits.
(10)
Includes short-term borrowings and long-term debt.
(11)
For further information on how we manage our asset liability risk, see
"Business — Market Risk".
Loan Portfolio and Credit Substitutes
As of March 31, 2006, our gross loan portfolio was Rs. 400.9 billion and represented approximately
2.5 million contracts outstanding. As of that date, our gross credit substitutes outstanding were
Rs. 9.8 billion and represented approximately 29 credit substitutes outstanding. Almost all of our
gross loans and credit substitutes are to borrowers in India and over 90% are denominated in
rupees. For a description of our retail and wholesale loan products, see "Business — Retail Banking
— Retail Loan Products" and "Business — Wholesale Banking — Commercial Banking Products —
Commercial Loan Products and Credit Substitutes".
The following table sets forth, for the periods indicated, our gross loan portfolio classified by
product group:
At March 31,
2002
2003
2004
2005
2006
(in millions)
Retail loans
Rs.
14,301.3
Rs.
34,414.2
Rs.
73,251.6
Rs.
112,666.0
Rs.
229,301.4
Wholesale loans
58,833.5
85,752.4
107,923.8
149,259.4
171,626.2
Gross loans
Rs.
73,134.8
Rs.
120,166.6
Rs.
181,175.4
Rs.
261,925.4
Rs.
400,927.6
Credit substitutes (at fair value)
35,329.9
30,255.5
17,041.5
13,880.9
9,751.3
Gross loans plus credit substitutes
Rs.
108,464.7
Rs.
150,422.1
Rs.
198,216.9
Rs.
275,806.3
Rs.
410,678.9
Maturity and Interest Rate Sensitivity of Loans and Credit Substitutes
The following tables set forth, for the periods indicated, the maturity and interest rate
sensitivity of our loans and credit substitutes (at fair value):
At March 31, 2006
Due in one
Due in one
Due after
year or less
to five years
five years
(in millions)
Retail loans
Rs.
88,119.4
Rs.
134,689.4
Rs.
6,492.6
Wholesale loans
98,181.8
52,244.2
21,200.2
Gross loans
Rs.
186,301.2
Rs.
186,933.6
Rs.
27,692.8
Credit Substitutes
1,971.5
4,225.2
3,554.6
Gross Loans plus credit substitutes
Rs.
188,272.7
Rs.
191,158.8
Rs.
31,247.4
At March 31, 2006
Due in one
Due in one
Due after
year or less
to five years
five years
(in millions)
Interest rate classification of loans by maturity:
Variable rates
Rs.
1,556.5
Rs.
7,957.8
Rs.
20,480.4
Fixed rates
184,744.7
178,975.8
7,212.4
Gross loans
Rs.
186,301.2
Rs.
186,933.6
Rs.
27,692.8
Table of Contents
54
At March 31, 2006
Due in one
Due in one
Due after
year or less
to five years
five years
(in millions)
Interest rate classification of credit substitutes by maturity:
Variable rates
Rs.
—
Rs.
—
Rs.
—
Fixed rates
1,971.5
4,225.2
3,554.6
Gross credit substitutes
Rs.
1,971.5
Rs.
4,225.2
Rs.
3,554.6
Interest rate classification of loans and credit substitutes
by maturity:
Variable rates
Rs.
1,556.5
Rs.
7,957.8
Rs.
20,480.4
Fixed rates
186,716.2
183,201.0
10,767.0
Gross loans and credit substitutes
Rs.
188,272.7
Rs.
191,158.8
Rs.
31,247.4
Concentration of Loans and Credit Substitutes
Pursuant to the guidelines of the RBI, our exposure to individual borrowers is limited to 15% of
our capital funds (as defined by RBI and calculated under Indian GAAP), and to 40% of our capital
funds to a group of companies under the same management. In the case of infrastructure projects,
such as power, telecommunications, road and port projects, an additional exposure of up to 5% of
capital funds is allowed in respect of individual borrowers and up to10 % in respect of group
borrowers. We may, in exceptional circumstances, with the approval of our board of directors,
consider enhancement of exposure to a borrower by a further 5% of capital funds. See "Supervision
and Regulation — Credit Exposure Limits". During the fiscal 2006, the Bank's credit exposures to
single borrowers and group borrowers were within the limits prescribed by Reserve Bank of India
except in case of National Bank for Agricultural and Rural Development ("NABARD"), where the single
borrower limits were exceeded. The Board of Directors of the Bank approved the excess over the
prudential limits subject to a ceiling of 20% of capital funds. As at March 31, 2006, the book
value of outstanding exposure to NABARD was within the Board approved limit of 20% of capital funds
as on that date.
The following table sets forth, for the periods indicated, our gross loans and fair value of credit
substitutes outstanding by the borrower's industry or economic activity and as a percentage of our
gross loans and fair value of credit substitutes (where such percentage exceeds 2.0% of the total).
We do not consider reil loans a specific industry for this purpose. However, retail business
banking loans are classified in the appropriate categories below and loans to commercial vehicle
operators are included in land transport below.
At March 31,
2002
2003
2004
2005
2006
(in millions, except percentages)
Automotive
manufacturers
Rs.
9,999.2
9.2
%
Rs.
13,393.2
8.9
%
Rs.
19,370.2
9.8
%
Rs.
26,100.0
9.5
%
Rs.
41,008.3
10.0
%
Land transport
1,298.5
1.2
5,202.9
3.5
15,396.2
7.8
29,860.5
10.8
36,841.6
9.0
Retail Traders
316.5
0.3
2,734.8
1.8
4,379.2
2.2
6,857.0
2.5
14,396.9
3.5
Activities allied to agriculture
115.1
0.1
216.5
0.1
2,778.4
1.4
4,501.9
1.6
11,559.7
2.8
Heavy Engineering
3,903.4
3.6
3,846.1
2.6
6,631.0
3.3
4,862.3
1.8
10,963.5
2.7
NBFC / Investment Companies
9,649.1
8.9
13,227.5
8.8
11,359.7
5.7
14,051.1
5.1
10,777.1
2.6
Telecommunications
2,490.1
2.3
921.0
0.6
4,054.0
2.0
9,586.9
3.5
8,888.4
2.2
Others (including unclassified retail)
80,692.8
74.4
110,880.1
73.7
134,248.20
67.8
179,986.60
65.2
276,243.40
67.2
Total
Rs.
108,464.7
100.0
%
Rs.
150,422.1
100.0
%
Rs.
198,216.9
100.0
%
Rs.
275,806.3
100.0
%
Rs.
410,678.9
100.0
%
As of March 31, 2006, our ten largest exposures totaled approximately Rs. 53.4 billion and
represented approximately 77.7% of our capital funds as per Indian GAAP. The largest group of
companies under the same management control accounted for approximately 21% of our capital funds as
on March 31, 2006 as per Indian GAAP.
Table of Contents
55
Directed Lending
The RBI has established guidelines requiring Indian banks to lend 40% of their net bank credit to
certain sectors called "priority sectors". Priority sectors include small-scale industries,
agricultural and agriculture based sectors, food, housing, small business enterprises and certain
other priority sectors deemed "weaker" by the RBI. See "Supervision and Regulation".
We are required to comply with the priority sector lending requirements as of the last
reporting Friday of each fiscal year, a date specified by the RBI for reporting. Apart from our
loans to the sectors outlined above, we may invest in bonds of specified institutions and
mortgage-backed securitized paper to meet our mandated lending requirements. Any shortfall in the
amount required to be lent to the priority sectors may be required to be deposited with Indian
development banks like the National Bank for Agriculture and Rural Development and the Small
Industries Development Bank of India. These deposits have a maturity of up to seven years and carry
interest rates lower than market rates. With a view to rationalizing the Banks' investments under
priority sector lending and encouraging banks to increasingly lend directly to the farmers/other
priority sector borrowers, the RBI has stipulated that the investments by banks in specified
institutions shall not be eligible for classification under priority sector lending. However this
would be implemented in a phased manner effective April 1, 2005.
The following table sets forth, for the periods indicated, our directed lending broken down by
sector:
At March 31,
2002
2003
2004
2005
2006
(in millions)
Directed lending:
Agriculture
Rs.
1,493.4
Rs.
8,858.8
Rs.
13,220.2
Rs.
20,641.5
Rs.
42,747.0
Small scale industries
2,730.5
2,949.6
4,370.6
4,013.2
6,968.9
Other
3,509.2
2,372.6
7,633.3
32,519.8
59,468.8
Total directed lending
Rs.
7,733.1
Rs.
14,181.0
Rs.
25,224.1
Rs.
57,174.5
Rs.
109,184.7
Non-Performing Loans
The following discussion of non-performing loans is based on U.S. GAAP. For classification of
non-performing loans under Indian regulatory requirements, see "Supervision and Regulation".
The Indian economy has expanded steadily during the past three years with GDP growth of 8.1% in
fiscal 2004, 6.9% in fiscal 2005 and 8.4% in fiscal 2006. Since 1991, the government of India has
pursued a policy of gradual liberalization and deregulation. Indian corporations have had to
respond to these pressures through a process of restructuring and repositioning. This restructuring
process is taking place in several industries, primarily in sectors where many small, unprofitable
manufacturing facilities have existed, such as the iron and steel and textiles industries. This led
to a decline in the operating performance of some Indian corporations and the impairment of related
loan assets in the financial system, including some of our assets. The decline in certain sectors
of the Indian economy has been offset by growth in segments such as financial services and
information technology.
As of March 31, 2006, our gross non-performing loans as a percentage of gross loan assets was 1.2%
and our gross non-performing loans net of specific valuation allowances as a percentage of net loan
assets was 0.4%. We have made total specific valuation allowances for 66.99% of gross
non-performing loans. These allowances are based on the expected realization of cash flows from
these assets and from the underlying collateral. All of our non-performing loans are
rupee-denominated. Non-performing loans to the directed lending
sector were 0.3% of gross loans.
Table of Contents
56
The following table sets forth, for the periods indicated, information about our gross
non-performing loan portfolio:
As of March 31,
2002
2003
2004
2005
2006
Non-performing loans:
Retail loans
Rs.
140.7
Rs.
74.9
Rs.
403.5
Rs.
1,663.3
Rs.
3,193.5
Wholesale loans
1,819.2
2,292.7
2,589.1
2,420.9
1,590.0
Gross non-performing loans
Rs.
1,959.9
Rs.
2,367.6
Rs.
2,992.6
Rs.
4,084.2
Rs.
4,783.5
Specific valuation allowances
Rs.
1,423.5
Rs.
1,684.3
Rs.
2,722.7
Rs.
3,492.8
Rs.
3,204.6
Unallocated valuation allowances
182.4
182.4
771.6
1,945.7
2,448.7
Non-performing loans net of specific valuation allowance
536.4
683.3
269.9
591.4
1,578.9
Gross loan assets
73,134.8
120,166.6
181,175.4
261,925.4
400,927.6
Net loan assets
Rs.
71,528.9
Rs.
118,229.9
Rs.
177,681.1
Rs.
256,486.9
Rs.
395,274.3
Gross non-performing loans as a percentage of gross loans
2.68
%
1.97
%
1.65
%
1.56
%
1.19
%
Non-performing loans net of specific valuation allowance as
a percentage of net loan assets
0.74
%
0.58
%
0.15
%
0.23
%
0.40
%
Specific valuation allowance as a percentage of gross
non-performing loans
72.63
%
71.14
%
90.98
%
85.52
%
66.99
%
Total valuation allowance as a percentage of gross
non-performing loans
81.94
%
78.84
%
116.76
%
133.16
%
118.18
%
Recognition of Non-Performing Loans
We classify our loan portfolio into loans that are performing and loans that are non-performing or
impaired.
We consider a loan to be performing when no principal or interest payment is one quarter or more
past due and where we expect to recover all amounts due to us. Prior to April 1, 2003, we
considered a loan to be performing when no principal or interest was two or more quarters past due
and where we expected to recover all amounts due to us. We have not restated figures from periods
prior to April 1, 2003 to reflect the change.
We have analyzed our gross loans into their performance status as follows:
At March 31,
2002
2003
2004
2005
2006
(in millions)
Performing
Rs.
71,174.9
Rs.
117,799.0
Rs.
178,182.8
Rs.
257,841.2
Rs.
396,144.1
Non-performing or impaired:
On accrual status
61.6
51.9
—
—
—
On non-accrual status
1,898.3
2,315.7
2,992.6
4,084.2
4,783.5
Total non-performing or impaired
1,959.9
2,367.6
2,992.6
4,084.2
4,783.5
Total
Rs.
73,134.8
Rs.
120,166.6
Rs.
181,175.4
Rs.
261,925.4
Rs.
400,927.6
Non-performing or impaired loans consist of loans that are on accrual status as well as loans
that have been placed on non-accrual status.
We place loans on non-accrual status when interest or principal payments are one quarter past due,
at which time no further interest is accrued and overdue interest not collected is reversed. We
make specific allowances for all loans on non-accrual status based on the loss we expect to incur
for each such loan.
In the case of wholesale loans, we also identify loans as non-performing or impaired even when
principal or interest payments are less than one quarter past due but where we believe recovery of
all principal and interest amounts is doubtful. We make specific and unallocated allowances for
these loans based on our estimate of losses inherent in the loan portfolio.
Table of Contents
57
Our methodology for determining specific and unallocated allowances is discussed separately below
for each category of loans.
Retail Loans
The Bank establishes a specific allowance on the retail loan portfolio based factors such as the
nature of the product, delinquency levels or the number of days the loan is past due, the nature of
the security available and loan to value ratios. The loans are charged off against allowances at
defined delinquency levels.
The Bank also makes unallocated allowances for its retail loans by product type. The Bank's retail
loan portfolio comprises groups of large numbers of small value homogeneous loans. The Bank
establishes an unallocated allowance for loans in each product group based on its estimate of the
expected amount of losses inherent in such product. In making such estimates, among other factors
considered, the Bank stratifies such loans based on the number of days past due and takes into
account historical losses for such product, the nature of security available and loan to value
ratios.
Wholesale Loans
We make specific allowances for credit losses for all wholesale loans on non-accrual status. We
also make specific allowances for wholesale loans that are on accrual status when we consider these
loans to be impaired despite being less than one quarter past due.
We identify wholesale loans on accrual status as being impaired based on our assessment of each
wholesale banking customer, taking into account quantitative and qualitative factors such as
payment status, adverse situations that may affect the borrower's ability to repay, the value of
any collateral held, our view of the industry and general economic conditions.
Impairment is measured for each non-performing wholesale banking customer for the aggregate of all
wholesale loans made to that customer. We establish a specific allowance for the difference between
the carrying value of the loan and the present value of expected future cash flows including the
net realizable value of any collateral, discounted at the loan's effective interest rate. We do not
establish a specific allowance for loans where the fair value of any collateral we hold exceeds the
outstanding loan balance.
Wholesale loans that experience insignificant payment delays and payment shortfalls are generally
not classified as impaired but are placed on a surveillance watch list and closely monitored for
deterioration. We determine the significance of payment delays and payment shortfalls on a
case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the
borrower, including the length of the delay, the reasons for the delay, the borrower's prior
payment record and the amount of the shortfall in relation to the principal and interest owed.
Beginning April 1, 2003, we also established an unallocated allowance for performing loans, based
on the overall portfolio quality, asset growth, economic conditions and other risk factors
Analysis of Non-Performing Loans by Industry Sector
The following table sets forth, for the periods indicated, our non-performing loans by borrowers'
industry or economic activity and as a percentage of our loans in the respective industry or
economic activity sector. These figures do not include credit substitutes, which we include for
purposes of calculating our industry concentration for RBI reporting. See "Risk Factors — We have
high concentrations of customer exposures to certain customers and sectors and if any of
these exposures were to become non-performing, the quality of our portfolio could be adversely
affected".
Table of Contents
58
As of March 31
2002
2003
2004
2005
2006
Non
Non
Non
Non
Non
Gross
performing
% of loans
Gross
performing
% of loans
Gross
performing
% of loans
Gross
performing
% of loans
Gross
performing
% of loans
Loans
loans
in industry
Loans
loans
in industry
Loans
loans
in industry
Loans
loans
in industry
Loans
loans
in industry
(Rupees in millions, except percentages)
Consumer electronics
Rs.
960.8
Rs.
23.5
2.5
Rs.
1,754.6
Rs.
207.8
11.9
Rs.
2,261.1
Rs.
639.1
28.3
Rs.
3,452.7
Rs.
679.4
19.7
Rs.
2,199.4
Rs.
129.0
5.9
Diamond, gems and jewelry exports
1,029.4
131.5
12.8
1,343.4
130.9
9.8
1,473.8
129.1
8.8
1,401.7
129.1
9.2
2,559.4
129.1
5.0
Textiles
457.3
396.0
86.6
698.5
372.0
53.3
1,327.6
356.2
26.8
3,483.9
303.4
8.7
6,291.4
313.7
5.0
Automobiles
8,856.0
41.9
0.5
12,096.3
642.9
5.3
18,541.1
653.7
3.5
25,667.6
913.3
3.6
40,970.3
954.4
2.3
Iron and steel
937.6
440.1
46.9
1,141.8
437.3
38.3
3,616.6
440.4
12.2
4,840.2
201.5
4.2
5,641.2
118.2
2.1
Electricity generation
486.0
26.8
5.5
1,577.1
26.8
1.7
759.5
26.8
3.5
1,620.3
26.8
1.7
1,599.4
26.8
1.7
Retail advances not otherwise
classified
14,273.1
134.1
0.9
28,848.6
74.9
0.3
63,207.8
382.1
0.6
103,681.2
1,134.5
1.1
175,780.1
2,534.1
1.4
Engineering
1,640.2
147.9
9.0
2,581.3
56.1
2.2
6,050.0
56.1
0.9
4,862.3
56.1
1.2
10659.7
56.0
0.5
Other wholesale trade
1,174.2
46.2
3.9
1,882.2
43.4
2.3
2,526.6
40.9
1.6
4,465.9
40.9
0.9
5,155.7
49.5
1.0
Land transport
—
—
—
—
—
—
15,396.2
21.4
0.1
29,860.5
269.8
0.9
36,841.6
347.9
0.9
Drugs and pharmaceuticals
1,442.1
133.8
9.3
—
—
—
3,039.5
40.0
1.3
3,917.6
42.9
1.1
3,834.0
32.3
0.8
Fertilizers
1,706.2
72.8
4.3
3,760.4
30.2
0.8
1,974.7
22.6
1.2
2,882.3
122.9
4.3
5,450.9
22.6
0.4
Miscellaneous industries
—
—
—
675.7
5.6
0.8
—
—
—
4,221.0
59.5
1.4
15,824.0
58.7
0.4
Food processing
—
—
—
—
—
—
—
—
—
—
—
—
5,344.1
3.4
0.1
Traders
—
—
—
2,484.8
2.1
0.1
200.1
3.4
1.7
1,738.0
2.5
0.1
14,357.2
7.8
0.1
Electrical machinery
1,853.4
66.2
3.6
1,430.8
76.1
5.3
1,376.6
76.1
5.5
2,428.9
66.9
2.8
—
—
—
Construction
67.6
23.5
34.8
207.5
23.4
11.3
27.5
21.9
79.6
385.3
10.5
2.7
—
—
—
Glass and glass products
—
—
—
135.9
11.0
8.1
419.8
9.1
2.2
814.5
9.1
1.1
—
—
—
Paper and paper products
—
—
—
—
—
—
806.6
70.3
8.7
1,701.4
11.7
0.7
—
—
—
Activities allied to dairying
—
—
—
3,091.0
3.4
0.1
3,144.4
3.4
0.1
3,946.7
3.4
0.1
—
—
—
Manufacture of metal products
—
—
—
897.9
3.4
0.4
—
—
—
—
—
—
—
—
—
Share brokers
639.5
7.4
1.2
823.9
6.7
0.8
—
—
—
—
—
—
—
—
—
Investment and finance and leasing
79.2
40.7
51.4
—
—
—
—
—
—
—
—
—
—
—
—
Other chemicals
455.2
61.6
13.5
469.1
51.9
11.1
—
—
—
—
—
—
—
—
—
Activities allied to agriculture
15.2
15.2
100.0
216.5
16.4
7.6
—
—
—
—
—
—
—
—
—
Plastic and plastic products
15.9
3.1
19.5
26.9
3.2
11.9
—
—
—
—
—
—
—
—
—
Distilleries
147.6
147.6
100.0
191.0
142.1
74.4
—
—
—
—
—
—
—
—
—
Total
Rs.
1,959.9
Rs.
2,367.6
Rs.
2,992.6
Rs.
4,084.2
Rs.
4,783.5
Specific allowance for credit losses
Rs.
1,423.5
Rs.
1,684.3
Rs.
2,722.7
Rs.
3,492.8
Rs.
3,204.6
Non-performing loans, net
Rs.
536.4
Rs.
683.3
Rs.
269.9
Rs.
591.4
Rs.
1,578.9
As of March 31, 2006, our gross non-performing loans as a percentage of gross loans in the
respective industries was the highest in the consumer electronics, diamonds, gems and jewelry
exports and textile industries.
Table of Contents
59
Consumer electronics
The consumer electronics industry has been exposed to severe competition during the last few years
due to an increase in foreign competition. Competition intensified the pressure on profit margins
and inflated selling and distribution costs. This resulted in marginalization of the weaker players
and consolidation of the stronger ones.
Diamonds, Gems and Jewelry exports
The Indian diamond industry continues to maintain its world leadership in export of cut and
polished diamonds. Slow demand in certain western markets has been offset by increased off-take in
Asian markets including India.
Our non-performing loan in this industry was caused mainly by borrower specific internal
organization problems.
Textiles
The textile industry had a good year in fiscal 2006 due to soft cotton prices and the lifting of
restrictions on export of cotton garments. The Indian government has also given certain fiscal
incentives in recent years to assist the industry.
Our non-performing loans in this sector primarily relate to a period when the industry was going
through a cyclical downturn.
Top Ten Non-Performing Loans
As of March 31, 2006, we had 27 wholesale non-performing loans outstanding, of which the top ten
represented 28.4% of our gross non-performing loans and 0.3% of our gross loan portfolio.
The following table sets forth information regarding our ten largest non-performing loans. The
table also sets forth the value (as set forth on the borrower's books) of collateral securing the
loan. However, the net realizable value of such collateral may be substantially less, if anything.
At March 31, 2006
Principal
outstanding
net
Currently
Type of
Gross
of allowance
servicing
banking
principal
for credit
Collateral-
all interest
Industry
arrangement
outstanding
losses
our share
payments
(in millions)
Borrower 1
Automobiles
Sole
Rs.
642.9
Rs.—
Rs.—
No
Borrower 2
Gems and Jewellery
Consortium
129.1
—
—
No
Borrower 3
Textiles
Consortium
120.8
—
—
No
Borrower 4
Iron and Steel
Consortium
108.9
—
—
No
Borrower 5
Textiles
Consortium
74.2
—
—
No
Borrower 6
Textiles
Multiple
73.0
—
—
No
Borrower 7
Consumer Electronics
Consortium
72.5
—
—
No
Borrower 8
Media- Manufacturing
Sole
49.5
—
—
No
Borrower 9
Engineering
Multiple
45.2
—
—
No
Borrower 10
Engineering
Consortium
40.3
—
—
No
Rs.
1,356.4
Rs.—
Rs.—
Table of Contents
60
Interest Foregone
Interest foregone is the interest due on non-performing loans that has not been accrued in our
books of accounts. The following table sets forth the outstanding amount of interest foregone on
existing non-performing loans as of the respective dates.
Interest foregone
(in millions)
March 31, 2004
Rs.
274.2
March 31, 2005
216.7
March 31, 2006
208.5
Restructuring of Non-Performing Loans
Our non-performing loans are restructured on a case-by-case basis after our management has
determined that restructuring is the best means of maximizing realization of the loan. These loans
continue to be on a non-accrual basis and are reclassified as performing loans only after sustained
performance under the loan's renegotiated terms for a period of at least one year.
Pursuant to recently enacted regulations creating a system of "Corporate Debt Restructuring," we
may also be involuntarily required to restructure loans if decided by lenders holding 75% of the
debt in a consortium in which we participate.
The following table sets forth, as of the dates indicated, our non-performing loans that have been
restructured through rescheduling of principal repayments and deferral or waiver of interest:
At March 31,
2002
2003
2004
2005
2006
(in millions, except percentages)
Gross restructured loans
Rs.
172.2
Rs.
2.7
Rs.
—
Rs.
100.3
Rs.
167.9
Allowance for credit losses
119.3
2.7
—
36.1
167.9
Net restructured loans
Rs.
52.9
Rs.
—
Rs.
—
Rs.
64.2
Rs.
—
Gross restructured loans as a
percentage of gross
non-performing loans
8.8
%
0.1
%
—
2.5
%
3.5
%
Net restructured loans as a
percentage of net
non-performing loans
2.7
%
—
—
10.9
%
—
If there is a failure to meet payment or other terms of a restructured loan, it may be
considered a failed restructuring, in which case it is no longer classified as a restructured loan.
Our restructured loans declined from March 31, 2002 until March 31, 2004 principally due to failed
restructurings.
Non-Performing Loan Strategy
Our non-performing loan strategy is focused on early problem recognition and active remedial
management efforts. Because we are involved primarily in working capital finance with respect to
wholesale loans, we track our borrowers' performance and liquidity on an ongoing basis. This
enables us to define remedial strategies proactively and manage our exposures to industries or
customers that we believe are displaying deteriorating credit trends. Relationship managers drive
the recovery effort together with strong support from the credit group in the corporate office in
Mumbai. Recovery is pursued vigorously through the legal process, enforcement of collateral,
negotiated one-time settlements and other similar strategies. The particular strategy pursued
depends upon the level of cooperation of the borrower and on our assessment of the borrower's
management integrity and long-term viability.
Table of Contents
61
Allowance for Credit Losses on Loans
The following table sets forth, for the periods indicated, movements in our allowance for credit
losses:
For the years ended March 31,
2002
2003
2004
2005
2006
(in millions)
Specific allowance for credit losses at the beginning of the period
Rs.
1,010.8
Rs.
1,423.5
Rs.
1,684.3
Rs.
2,722.7
Rs.
3,492.8
Additions to allowance for credit losses for the period :
Retail
366.5
156.3
775.8
2,433.9
4,762.6
Wholesale
253.8
786.8
1,278.7
221.9
41.5
Less allowances no longer required on account of recoveries
(207.6
)
(201.6
)
(300.3
)
(781.7
)
(275.1
)
Net expense for additions to specific allowance for credit
412.7
741.5
1,754.2
1,874.1
4,529.0
Allowance no longer required on account of write offs
—
(480.7
)
(715.8
)
(1,104.0
)
(4,817.2
)
Specific allowance for credit losses at the end of period
Rs.
1,423.5
Rs.
1,684.3
Rs.
2,722.7
Rs.
3,492.8
Rs.
3,204.6
Unallocated allowance for credit losses at the beginning of the period
Rs.
143.5
Rs.
182.4
Rs.
182.4
Rs.
771.6
Rs.
1,945.7
Additions during the period
38.9
—
589.2
1,174.1
503.0
Unallocated allowance for credit losses at the end of the period
Rs.
182.4
Rs.
182.4
Rs.
771.6
Rs.
1,945.7
Rs.
2,448.7
Total allowance for credit losses at the beginning of the period
Rs.
1,154.3
Rs.
1,605.9
Rs.
1,866.7
Rs.
3,494.3
Rs.
5,438.5
Allowance no longer required on account of write-offs
—
(480.7
)
(715.8
)
(1,104.0
)
(4,817.2
)
Net addition to total allowance for the period charged to expense
451.6
741.5
2,343.4
3,048.2
5,032.0
Total allowance for credit losses at the end of the period
Rs.
1,605.9
Rs.
1,866.7
Rs.
3,494.3
Rs.
5,438.5
Rs.
5,653.3
The following table sets forth, for the periods indicated, the allocation of the total
allowance for credit losses:
As of March 31,
2002
2003
2004
2005
2006
Wholesale
Allocated
Rs.
1,289.7
Rs.
1,609.4
Rs.
2,379.8
Rs.
2,285.7
Rs.
1,543.1
Unallocated
—
—
269.8
400.9
703.1
Subtotal
1,289.7
1,609.4
2,649.6
2,686.6
2,246.2
Retail
Allocated
133.8
74.9
342.9
1,207.1
1,661.5
Unallocated
182.4
182.4
501.8
1,544.8
1,745.6
Subtotal
316.2
257.3
844.7
2,751.9
3,407.1
Allowance for credit losses
Rs.
1,605.9
Rs.
1,866.7
Rs.
3,494.3
Rs.
5,438.5
Rs.
5,653.3
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62
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
You should read the following discussion and analysis of our financial condition and
results of operations together with our audited financial statements included in this report. The
following discussion is based on our audited financial statements, which have been prepared in
accordance with U.S. GAAP, and on information publicly available from the RBI and other sources.
Introduction
Overview
We are a leading private sector bank and financial services company in India. Our principal
business activities are retail banking, wholesale banking and treasury operations. Our retail
banking division provides a variety of deposit products as well as loans, credit cards, debit
cards, third party mutual funds and insurance, investment advisory services and depositary
services. Through our wholesale banking operations we provide loans, deposit products, documentary
credits, guarantees, bullion trading and foreign exchange and derivative products. We also provide
cash management services, clearing and settlement services for stock exchanges, tax and other
collections for the government, custody services for mutual funds and correspondent banking
services. Our Treasury Group manages our balance sheet and our foreign exchange and derivative
products.
Since fiscal 2001,
we have experienced significant growth in our customer and geographical base,
expanding from 0.9 million customers in 53 cities as of
March 31, 2001 to 9.6 million customers in
228 cities as of March 31, 2006. In addition, we have changed
our focus and business mix so that
retail banking rather than wholesale banking is our more significant
area, as net revenue from retail products has grown
 from 45.3% of total revenue for the fiscal year ended March 31,
2002, to 75.1% of total revenue for the fiscal year ended
March 31, 2006.
The higher proportion
of retail loans in our portfolio allowed us to maintain our net
interest margins in the 2001-2004
period when market yields in the overall economy were falling. However, with this increase in
retail loans, we have increased our unallocated and specific loan loss provisions.
Our revenue consists of interest and dividend revenue as well as non-interest revenue. Our interest
and dividend revenue is primarily generated by interest on loans, dividends from securities and
other activities. We offer a wide range of loans to retail customers and offer primarily working
capital loans to corporate customers. The primary components of our securities portfolio are
statutory liquidity ratio investments, credit substitutes and other investments. Statutory
liquidity ratio investments principally consist of government of India treasury securities. Credit
substitutes, principally consisting of our investments in commercial paper, debentures and
preference shares issued by corporations, are part of the financing products we provide to our
customers. Other investments include investment grade bonds issued by public sector undertakings
and public financial institutions principally to meet RBI directed lending requirements, asset
backed securities, mortgage-backed securities as well as equity securities and mutual funds.
Interest revenue from other activities consists primarily of interest from inter-bank loans and
interest paid by the RBI on cash deposits to meet our statutory cash reserve ratio requirements.
Effective June, 2006 the RBI has discontinued the practice of paying interest on cash reserve
ratio.
Two important measures of our results of operations are net interest revenue, which is equal to our
interest and dividend revenue net of interest expense, and net interest revenue after allowance for
credit losses. Interest expense includes interest on deposits as well as on borrowings. Our
interest revenue and expense are affected by fluctuations in interest rates as well as volume of
activity. Our interest expense is also
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63
affected by the extent to which we fund our activities with
low-interest or non-interest bearing deposits (including the float on transactional services), and
the extent to which we rely on borrowings. Our allowance for credit losses includes our loan loss
provision. Impairments of credit substitutes are not included in our loan-loss provision, but are
included as realized losses on securities.
We also use net interest margin and spread to measure our results. Net interest margin represents
the ratio of net interest revenue to average interest-earning assets. Spread represents the
difference between yield on average interest-earning assets and cost of average interest-bearing
liabilities including current accounts which are non-interest bearing.
Our non-interest revenue includes fee and commission income, realized gains and losses on sales of
securities and spread from foreign exchange and derivative transactions. Our principal sources of
fee and commission revenue are retail banking services, cash management services, documentary
credits and bank guarantees, distribution of third party mutual funds and insurance products and
capital market services.
Our non-interest expense includes expenses for salaries and staff benefits, premises and equipment,
depreciation and amortization, and administrative and other expenses. The costs of outsourcing back
office and other functions are included in administrative and other expenses.
Our financial condition and results of operations are affected by general economic conditions
prevailing in India. The Indian economy has grown steadily over the past three years. GDP growth
was, 8.1% in fiscal 2004, 6.9% in fiscal 2005 and 8.4% in fiscal 2006.
In addition, interest rates have generally been rising during the last two years in line with
global trends. During fiscal 2006 RBI increased the benchmark reverse repo rates upwards by 25
basis points on three occasions, in April 2005, October 2005 and January 2006.
Critical Accounting Policies
We have set forth below some of our critical accounting policies under U.S. GAAP. Readers should
keep in mind that we prepare our general purpose financial statements in accordance with Indian
GAAP and also report to the RBI and the Indian stock exchanges in accordance with Indian GAAP. In
certain circumstances, as discussed under "Financial Condition — Transfers within Investment
Portfolio" below, we may take action that is required or permitted by Indian banking regulations
which may have different consequences under Indian and U.S. GAAP.
Allowance for loan losses
Our allowance for credit losses is based on our best estimate of losses inherent in our loan
portfolio and consists of our allowances for retail loans and wholesale loans.
Retail Loans
We establish
specific and unallocated allowances for our retail loans.
The Bank establishes a specific allowance on the retail loan portfolio based
on factors such as the nature of the product, delinquency levels or the number
of days the loan is past due, the nature of the security available and loan
to value ratios. The loans are charged off against allowances at defined delinquency levels.
 We also establish unallocated allowances for each of our retail loan products. See "Selected
Statistical Information — Investment Portfolio — Retail Loans".
Wholesale
We establish specific allowances for our wholesale loans.
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64
We evaluate our wholesale loan portfolio on a periodic basis and grade our accounts considering
both qualitative and quantitative criteria. Although we believe our grading and surveillance
process is comprehensive, it is inherently subjective as it is based on information we have
available and requires us to
exercise judgment in determining a borrower's grading and therefore may not be correct in all
cases. Our grading is subject to revision as more information becomes available.
We consider wholesale loans to be impaired when it is probable that we will be unable to collect
scheduled payments of principal or interest when due. In arriving at our estimate, we consider the
borrower's payment status, financial condition and the value of collateral we hold.
We establish specific allowances for our wholesale loans for each non-performing wholesale loan
customer in the aggregate for all funded exposures. This allowance is based on either the present
value of expected future cash flows discounted at the loan's effective interest rate or the net
realizable value of any collateral we hold. Our estimate of future cash flows from a borrower is
inherently subjective as it is based on our expectations of the probability and timing of default.
Our estimate of the net realizable value of any collateral we hold is also subjective, as the
collateral we hold is generally working capital such as book debt or inventory.
With effect from April 1, 2003, in light of the significant growth in the size and diversity of our
wholesale loan portfolio, we established an unallocated allowance for wholesale loans based on an
internal credit slippage matrix, which measures our historic losses for our standard loan
portfolio.
For more information on the methodologies we have used to establish our allowance for credit
losses, see "Selected Statistical Information — Non-Performing Loans — Recognition of
Non-Performing Loans".
Interest Accrual and Revenue Recognition
Interest income from loans is recognized on an accrual basis when earned except with respect to
loans placed on non-accrual status, for which interest income is recognized when received.
Beginning in fiscal 2004, loans have been placed on non-accrual status when they are past due for
more than one quarter. Prior to that time, loans were generally placed on non-accrual status when
they were past due for more than two quarters. We generally do not charge up-front loan origination
fees. Nominal application fees are charged, which offset the related costs incurred.
Fees and commissions from guarantees issued are amortized over the contractual period of the
commitment, provided the amounts are collectible.
Dividends from investments are recognized when declared.
Realized gains and losses on sales of securities are recorded on the trade date and are determined
using the weighted average cost method.
Other fees and income are recognized when earned, which is when the service that results in
the income has been provided.
Valuation of Investments
Investments consist of securities purchased as part of our treasury operations, such as government
securities and other debt and equity securities, investments purchased as part of our wholesale
banking operations, such as credit substitute securities issued by our wholesale banking customers,
which include commercial paper, short term debentures and preference shares and asset and mortgage
backed securities.
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65
Securities that are held principally for resale in the near term are classified as held for trading
("HFT"), with changes in fair value recorded in earnings.
Debt securities that management has the positive intent and ability to hold to maturity are
classified as held to maturity ("HTM").
Securities with fair values that are not classified as held to maturity or held for trading are
classified as available for sale ("AFS"). Unrealized gains and losses on such securities, net of
applicable taxes, are reported in accumulated other comprehensive income (loss), a separate
component of shareholders' equity.
We generally report our investments in debt and equity securities at fair value, except for debt
securities classified as HTM securities, which are reported at amortized cost. Fair values are
based on market quotations where a market quotation is available and otherwise based on present
values at current interest rates for such investments.
For HTM and AFS securities, other than temporary declines in fair values that are below cost will
be reflected in earnings as realized losses. We identify other than temporary declines based on an
evaluation of all significant factors, including the length of time and extent to which fair value
is less than cost and the financial condition and economic prospects of the issuer. We do not
recognize an impairment for debt securities if the cause of the decline is related solely to
interest rate increases and where we have the ability and intent to hold the security until the
fair value is recovered. Estimates of any other than temporary declines in the fair values of
credit substitute securities are measured on a case by case basis together with loans under the
overall exposure to those customers and recognized as realized losses. As our exposures in respect
of such securities are similar to our exposures on the borrower's loan portfolio, additional
disclosures have been provided on impairment status in Note 8 and on concentrations of credit risk
in Note 12 of the Financial Statements.
New Accounting Pronouncements
Other-Than-Temporary Impairment and Its Application to Certain Investments
In November 2003, the Financial Accounting Standards Board ("FASB") ratified a consensus on the
disclosure provisions of Emerging Issues Task Force ("EITF") Issue 03-1, "The Meaning of
Other-Than-Temporary Impairment and Its Application to Certain Investments." In March 2004, the
FASB reached a consensus regarding the application of a three-step impairment model to determine
whether investments accounted for in accordance with SFAS No. 115, "Accounting for Certain
Investments in Debt and Equity Securities," and other cost method investments are
other-than-temporarily impaired. However, with the issuance of FASB Staff Position EITF 03-1-1, the
provisions of the consensus relating to the measurement and recognition of other-than-temporary
impairments have been deferred pending reassessment by the FASB. The remaining provisions of this
standard, which primarily relate to disclosure, are required to be applied prospectively to all
current and future investments accounted for in accordance with SFAS No. 115 and other cost method
investments. We have complied with the disclosure provisions of this
pronouncement.
Share based payment
In December 2004, the FASB issued SFAS No. 123(R), Share-Based Payment, which establishes
accounting standards for all transactions in which an entity exchanges its equity instruments for
goods and services. SFAS No. 123(R) focuses primarily on accounting for transactions with
employees, and carries forward without change prior guidance for share-based payments for
transactions with non employees.
SFAS No. 123(R) eliminates the intrinsic value alternative in APB Opinion 25 and generally requires
us to measure the cost of employee services received in exchange for an award of equity
instruments based on the fair value of the award on the date of the grant. The standard requires
grant date fair value to be estimated using either an option-pricing model which is consistent with
the terms of the award or a market observed price, if such a price exists. Such cost must be
recognized over the period during which an employee is required to provide service in exchange for
the award — the requisite service period (which is usually the vesting period). The standard also
requires us to estimate the number of instruments that will ultimately be issued, rather than
accounting for forfeitures as they occur.
We are required to apply SFAS No. 123(R) to all awards granted, modified or settled in our
first reporting period under U.S. GAAP after June 15, 2006. We
are also required to use either
the "modified prospective method" or the "modified retrospective method." Under the modified
prospective method, we must recognize compensation cost for all
awards after we adopt the standard and for the unvested portion of previously granted awards that are outstanding on that
date.
Under the
modified retrospective method, we must restate our previously issued financial
statements to recognize the amounts we previously calculated and reported on a pro forma
basis, as if the prior standard had been adopted. See note 2(v) to
our audited financial statements included elsewhere in this report.
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66
Under both methods, we are permitted to use either a straight line or an accelerated method to
amortize the cost as an expense. The standard permits and encourages early adoption.
We intend
to follow the prospective method. If we were to adopt SFAS No. 123(R) using the
modified retrospective method, our net income would have been Rs. 900.9 million less than reported
in the year ended March 31,2005 and Rs. 1,229.9 million less than reported in the fiscal year ended
March 31, 2006.
Other- than- temporary impairments of securities
FASB Statement No. 154, Accounting Changes and Error Corrections
,
a replacement of APB Opinion No.
20 and FASB Statement No. 3, requires retrospective application to prior periods' financial
statements of changes in accounting principle, unless it is impracticable to determine either the
period-specific effects or the cumulative effect of the change. FASB Statement No. 154, Accounting
Changes and Error Corrections
,
will not have a material effect
on our financial position or
results of operation.
Accounting for Certain Hybrid Instruments
In February 2006, the FASB issued SFAS No. 155 "Accounting for Certain Hybrid Instruments"
which permits, but does not require, fair value accounting for any hybrid financial instrument that
contains an embedded derivative and would otherwise require bifurcation in accordance with SFAS
No. 133. The statement is effective as of April 1, 2007. We are
currently evaluating this standard to determine whether it will have a
material effect on the Bank's future financial position or
results of operation.
Accounting for Servicing of Financial Assets
In March 2006, the FASB issued SFAS No.156, "Accounting for Servicing of Financial Assets, an
amendment to FASB Statement No. 140", which permits but does not require an entity to account for
one or more classes of servicing rights at fair value, with changes
in fair value recorded in Consolidated Statement of Income. The
statement is effective April 1, 2007. We are currently evaluating this standard to determine whether it will have a material effect on
the bank's future financial position or results of operation.
Fair Value Measurements
In September 2006, the FASB issued SFAS No.157, "Fair Value Measurements". This statement defines
fair value, establishes a framework for measuring fair value in generally accepted accounting
principles (GAAP), and expands disclosures about fair value measurements. This statement applies
under other accounting pronouncements that require or permit fair value measurements. The statement
is effective November 2007. We are currently evaluating this standard to determine whether it
will have a material effect on the bank's future financial position or results of operation.
Accounting for uncertainty in Income Taxes
In June 2006, the FASB issued FIN No. 48, "Accounting for uncertainty in Income Taxes- an
interpretation of FASB statement No. 109". This Interpretation clarifies the accounting for
uncertainty in income taxes recognized in accordance with FASB Statement No. 109, Accounting for
Income Taxes. This Interpretation prescribes a recognition threshold and measurement attribute for
the financial statement recognition and measurement of a tax position taken or expected to be taken
in a tax return besides it also provides guidance on several other similar issues. This
interpretation is effective December 2006. We are
currently evaluating this standard to determine whether it will have a
material effect on the Bank's future financial position or
results of operation.
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67
Fiscal Year Ended March 31, 2006 Compared to Fiscal Year Ended March 31, 2005
Net Interest Revenue after Allowance for Credit Losses
Our net interest revenue after allowances for credit losses increased by 45.9% from Rs. 12.9
billion in fiscal 2005 to Rs. 18.9 billion in fiscal 2006. Our net interest margin increased from
3.9% in fiscal 2005 to 4.0% in fiscal 2006. The following table sets out the components of net
interest revenue after allowance for credit losses:
Year ended March 31,
Increase/
% Increase/
2005
2006
(decrease)
(decrease)
(in millions, except percentages)
Interest on loans
Rs.
16,431.4
Rs.
28,853.8
Rs.
12,422.4
75.6
%
Interest on securities, including dividends
11,543.5
13,165.2
1,621.7
14.1
Other interest revenue
1,234.5
1,509.0
274.5
22.2
Total interest and dividend revenue
29,209.4
43,528.0
14,318.6
49.0
Interest on deposits
11,074.1
15,590.1
4,516.0
40.8
Interest on short term borrowings
1,759.4
3,497.7
1,738.3
98.8
Interest on long term debt
390.2
534.0
143.8
36.8
Total interest expense
13,223.7
19,621.8
6,398.1
48.4
Net interest revenue
15,985.7
23,906.2
7,920.5
49.6
Allowance for credit losses
Retail
2,925.5
4,956.0
2,030.5
69.4
Wholesale
122.7
76.0
(46.7
)
(38.1
)
Total
3,048.2
5,032.0
1,983.8
65.1
Net interest revenue after
allowance for credit losses
Rs.
12,937.5
Rs.
18,874.2
Rs.
5,936.7
45.9
%
Interest and Dividend Revenue
Interest revenue from loans increased as average volume of loans increased by 58.0% from Rs. 204.9
billion in fiscal 2005 to Rs. 323.7 billion in fiscal 2006. Our average volume of retail loans
increased by 66.6% from Rs. 94.4 billion in fiscal 2005 to Rs. 157.3 billion in fiscal 2006
primarily due to higher penetration of our retail loan products in existing markets and our
expansion into new geographical areas. Our average volume of wholesale loans increased by 50.6% from
Rs. 110.5 billion in fiscal 2005 to
Rs. 166.4 billion in fiscal 2006 due to increased lending to existing customers as well as new
customer acquisitions. These volume increases were also matched by a corresponding increase in
yields. Yields on our loans increased from an average of 8.0% in fiscal 2005 to 8.9% in fiscal
2006. Loan yields increased as a result of the general increase in the interest rates.
Despite a drop
in yields in overall investments, interest and dividend from securities
increased by 14.1%. This was primarily due to an increase in statutory
liquidity ratio securities, and higher receipts on dividends on mutual fund units.
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68
Other interest revenue increased by 22.2% for fiscal 2006 compared to fiscal 2005 mainly due to an
increase in earnings from inter bank and term placements.
Interest Expense
Our
interest expense on deposits increased by 40.8% from Rs. 11.1 billion in fiscal 2005 to Rs. 15.6
billion in fiscal 2006. Our average cost of deposits increased from 3.2% in fiscal 2005 to 3.4% in
fiscal 2006 primarily as a result of an increase in the average cost of time deposits from 5.6% in
fiscal 2005 to 6.0% in fiscal 2006. The proportion of savings account balances to average total
deposits increased from 55.3% to 57.0%. Our interest expense on short-term borrowings increased by
98.8% as a result of an increase in borrowing in inter bank call money market. Our average cost of
borrowing also increased from 4.1% in fiscal 2005 to 4.8% in fiscal 2006. Our interest expense on
long-term debt increased by 36.8% primarily due to Rs. 12.0 billion of subordinated debt issued in
the fiscal 2006.
Allowance for Credit Losses
Allowances
for credit losses increased by 65.1% for fiscal 2006 compared to fiscal 2005. During the same
period, allowances for credit losses for retail loans increased by 69.4% from Rs. 2,925.5 million,
to Rs. 4,956.0 million, at a lower rate than our retail loan
book which grew by 104.0% from Rs. 112.7 billion to Rs. 229.3 billion. The retail loans increased due to an increase in our loan book
consisting of credit cards and personal loans and expansion into new territories. The Bank
establishes a specific allowance on the retail loan portfolio based on factors such as the nature
of the product, delinquency levels or the number of days the loan is past due, the nature of the
security available and loan to value ratios. The loans are charged off against allowances at
defined delinquency levels. The credit losses for the wholesale segment
decreased by 38.1%, primarily
due to large recoveries in NPL loans during the year ended March 31, 2006 compared to the year
ended March 31, 2005.
Non- Interest revenue
Our non-interest revenue increased by 47.9% from Rs. 8.2 billion in fiscal 2005 to Rs. 12.1 billion
in fiscal 2006. The following table sets forth the components of our non-interest revenue:
Year ended March 31,
Increase/
% Increase/
2005
2006
(decrease)
(decrease)
(in millions, except percentages)
Fees and commissions
Rs.
6,124.4
Rs.
10,949.6
Rs.
4,825.2
78.8
%
Realized gains (losses) on
sales of AFS securities
194.3
420.3
226.0
116.3
Realized gains (losses) on
sales of HFT securities
(39.3
)
(44.8
)
(5.5
)
(14.0
)
Foreign exchange
911.7
994.0
82.3
9.0
Derivative transactions
204.0
(402.9
)
(606.9
)
(297.5
)
Other
816.4
231.7
(584.7
)
(71.6
)
Total non-interest revenue
Rs.
8,211.5
Rs.
12,147.9
Rs.
3,936.4
47.9
%
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69
Fees and commissions increased primarily because of growth in service and processing fee
income related to retail banking services, which was due largely to an increased volume of ATM,
credit card and debit card transactions, third party distribution earnings and other retail loans,
and an increase in the standard rates for fees on retail transactions. In addition, our fees from
the distribution of third party mutual funds and insurance increased considerably.
Revenue from foreign exchange increased primarily due to an increase in the volume of foreign
exchange transactions with retail and wholesale customers.
Revenue from derivatives declined primarily due to lower customer volumes on derivatives as well as
a decline in fair values on interest rate swaps due to changes in interest rates.
The decrease in other non-interest revenue resulted from a decline in sales of portfolios of
automobile loans, commercial vehicle loans and personal loans.
Non- Interest expense
Our non-interest expense was comprised of the following:
Year ended March 31,
Increase/
% Increase/
2005 % of
2006 % of
2005
2006
(decrease)
(decrease)
net revenues
net revenues
(in millions except percentages)
Salaries and staff benefits
Rs.
3,249.9
Rs.
5,420.9
Rs.
2,171.0
66.8
%
15.4
%
17.5
%
Premises and equipment
2,260.8
3,125.9
865.1
38.3
10.7
10.1
Depreciation and amortization
1,440.7
1,812.1
371.4
25.8
6.8
5.8
Administrative and other
4,462.5
7,487.9
3,025.4
67.8
21.1
24.1
Total non-interest expense
Rs.
11,413.9
Rs.
17,846.8
Rs.
6,432.9
56.4
%
54.0
%
57.5
%
Total
non-interest expense increased by 56.4% from Rs. 11.4 billion in fiscal 2005 to Rs. 17.8
billion in fiscal 2006. This was primarily due to increased infrastructure costs related to the
expansion of our branch and ATM networks and geographical coverage and higher volumes for our
retail loan products. As a percentage of our net revenues, non-interest expense increased to 57.5%
in fiscal 2006 compared to 54.0% in fiscal 2005.
Salaries and staff benefits rose in absolute terms and as a percentage of revenue principally due
to increased headcount to support our future growth. Our headcount increased from 9,030 employees
as of March 31, 2005 to 14,878 employees as of March 31, 2006. Our premises and equipment expense
increased because we expanded our distribution network from 467 branches and 1,147 ATMs as of March 31, 2005 to 535
branches and 1,323 ATMs as of March 31, 2006. In addition there
are over 120 branches which are awaiting RBI approval to commence
business. Depreciation and amortization and administrative and
other expenses increased primarily due to an expansion of our branch and ATM networks and higher
spending on technology and infrastructure to support growth in our retail loans and credit card
business.
Income Tax
Our income
tax expense increased by 26.9% from Rs. 3.1 billion in fiscal 2005 to Rs. 4.0 billion in
fiscal 2006. Our effective tax rate decreased from 32.1% in fiscal 2005 to 30.1% in fiscal 2006,
principally due to higher tax-exempt income in the year ended March 31, 2006. Tax-exempt income
consists principally of
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70
dividends and investment income from tax-exempt investments such as
preference shares, mutual fund units and infrastructure bonds.
Net Income
As a result of the foregoing factors, our net income after taxes increased by 39.3% from Rs. 6.6
billion in fiscal 2005 to Rs. 9.2 billion in fiscal 2006.
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71
Fiscal Year Ended March 31, 2005 Compared to Fiscal Year Ended March 31, 2004
Net Interest Revenue After Allowance For Credit Losses
Our net interest revenue after allowances for credit losses increased by 26.0% from Rs. 10.3
billion in fiscal 2004 to Rs. 12.9 billion in fiscal 2005. Our net interest margin increased from
3.8% in fiscal 2004 to 3.9% in fiscal 2005. The following table sets out the components of net
interest revenue after allowance for credit losses:
Year ended March 31,
Increase/
% Increase/
2004
2005
(decrease)
(decrease)
(in millions, except percentages)
Interest on loans
Rs.
11,705.0
Rs.
16,431.4
Rs.
4,726.4
40.4
%
Interest on securities, including dividends
11,776.9
11,543.5
(233.4
)
(2.0
)
Other interest revenue
1,109.6
1,234.5
124.9
11.3
Total interest and dividend revenue
24,591.5
29,209.4
4,617.9
18.8
Interest on deposits
10,279.2
11,074.1
794.9
7.7
Interest on short term borrowings
1,435.9
1,759.4
323.5
22.5
Interest on long term debt
268.0
390.2
122.2
45.6
Total interest expense
11,983.1
13,223.7
1,240.6
10.4
Net interest revenue
12,608.4
15,985.7
3,377.3
26.8
Allowance for credit losses
Retail
918.5
2,925.5
2,007.0
218.5
Wholesale
1,424.9
122.7
(1,302.2
)
(91.4
)
Total
2,343.4
3,048.2
704.8
30.1
Net interest revenue after
allowance for credit losses
Rs.
10,265.0
Rs.
12,937.5
Rs.
2,672.5
26.0
%
Interest and Dividend Revenue
Interest revenue from loans increased as average volume of loans increased 50.1% from Rs. 136.5
billion in fiscal 2004 to Rs. 204.9 billion in fiscal 2005. Our average volume of retail loans
increased by 78.4% from Rs. 52.9 billion in fiscal 2004 to Rs. 94.4 billion in fiscal 2005,
primarily due to higher penetration of our
retail loan products in existing markets and our expansion into new geographical areas. Our average
volume of wholesale loans increased by 32.2% from Rs. 83.6 billion in fiscal 2004 to Rs. 110.5
billion in fiscal 2005 due to increased lending to existing customers as well as new customer
acquisitions. However, these volume increases were partially offset by a reduction in yields.
Yields on our loans decreased from an average of 8.6% in the fiscal 2004 to 8.0% in fiscal 2005.
Loan yields declined as a result of the general decline in interest rates and increased
competition.
Interest and dividend revenue from securities declined principally due to lower receipts of
dividends on mutual fund units in the fiscal year ended March 31, 2005 as well as a decline in
yields. These decreases were partially offset by an increase in the volume of investments and
income from investments in government securities
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72
Other interest revenue increased by 11.3% for fiscal 2005 compared to fiscal 2004 due to an
increase in earnings from balances maintained with the RBI. This increase in balances was on
account of higher statutory cash reserve maintenance requirements during the fiscal year ended
March 31, 2005.
Interest Expense
Our interest expense on deposits increased by 7.7 % to Rs. 11.1 billion due to an increase in
average volume of deposits of 30.4% from Rs. 262.7 billion in fiscal 2004 to Rs. 342.7 billion in
fiscal 2005 primarily as a result of our expanded retail branch network. Our average cost of
deposits decreased from 3.9% in fiscal 2004 to 3.2% in fiscal 2005 primarily as a result of a
decline in the average cost of time deposits from 6.2% to 5.6% and an increase in the proportion of
relatively lower cost average current accounts (which are non interest-bearing) and savings account
balances to average total deposits from 46.9% in fiscal 2004 to 55.3% in fiscal 2005
Our interest expense on short-term borrowings increased by 22.5% as a result of an increase in
borrowing in inter bank call money market partially offset by decrease in the average cost of
borrowing from 4.3 % as of March 31, 2004 to 4.1% as of March 31, 2005. Our interest expense on
long-term debt increased, primarily due to Rs. 4.0 billion of subordinated debt issued in the last
quarter of fiscal 2004.
Allowance for Credit Losses
Allowances for credit losses increased by 30.1% for fiscal 2005 compared to fiscal 2004. During the
same period, allowances for credit losses for retail loans increased by 218.5% from Rs. 918.5
million to Rs. 2,925.5million at a greater rate than our retail loan book which grew by 53.8% from
Rs. 73.3 billion to Rs. 112.7 billion, due to an increase in our unsecured loan book consisting of
credit cards and personal loans and expansion into new territories where there are higher rates of
delinquency compensated by higher yields. Allowances for credit losses for the wholesale segment
decreased by 91.4%, primarily due to a large number of recoveries during the year ended March 31,
2005 compared to the year ended March 31, 2004.
Non
Interest revenue
Our non-interest revenue increased by 74.8% from Rs. 4.7 billion in fiscal 2004 to Rs. 8.2 billion
in fiscal 2005. The following table sets out the components of our non-interest revenue:
Year ended March 31,
Increase/
% Increase/
2004
2005
(decrease)
(decrease)
(in millions, except percentages)
Fees and commissions
Rs.
3,140.7
Rs.
6,124.4
Rs.
2,983.7
95.0
%
Realized gains (losses) on sales of AFS securities
(48.3
)
194.3
242.6
(502.3
)
Realized gains (losses) on sales of HFT securities
396.8
(39.3
)
(436.1
)
(109.9
)
Foreign exchange
740.0
911.7
171.7
23.2
Derivative transactions
443.9
204.0
(239.9
)
(54.0
)
Other
24.5
816.4
791.9
3,232.2
Total non-interest revenue
Rs.
4,697.6
Rs.
8,211.5
Rs.
3,513.9
74.8
%
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73
Fees and commissions increased primarily because of growth in service and processing fee
income related to retail banking services, which was due largely to an increased volume of ATM,
credit card and debit card transactions and other retail loans, and an increase in the standard
rates for fees on retail transactions. In addition our depository fees increased as a result of
increased stock market activity as did fees from the distribution of third party mutual funds and
insurance.
Revenues from foreign exchange increased primarily due to an increase in the volume of foreign
exchange transactions with retail and wholesale customers.
Revenues from derivatives declined primarily due to lower customer volumes on derivatives as well
as a decline in fair values on interest rate swaps due to changes in interest rates.
Non-Interest Expense
Our non-interest expense comprised of the following:
Year ended March 31,
Increase/
% Increase/
2004 % of net
2005 % of net
2004
2005
(decrease)
(decrease)
revenues
revenues
(in millions, except percentages)
Salaries and staff benefits
Rs.
2,154.0
Rs.
3,249.9
Rs.
1,095.9
50.9
%
14.4
%
15.4
%
Premises and equipment
1,828.5
2,260.8
432.3
23.6
12.2
10.7
Depreciation and amortization
1,254.9
1,440.7
185.8
14.8
8.4
6.8
Administrative and other
3,131.9
4,462.5
1,330.6
42.5
20.9
21.1
Total non-interest expense
Rs.
8,369.3
Rs.
11,413.9
Rs.
3,044.6
36.4
%
55.9
%
54.0
%
Total non interest expense increased by 36.4% from Rs. 8.4 billion in fiscal 2004 to Rs. 11.4
billion in fiscal 2005. This was primarily due to an increase in infrastructure costs related to
the expansion of our branch and ATM networks and geographical coverage and higher volumes for our
retail loan products. As a percentage of our net revenues, non-interest expense decreased to 54.0%
in fiscal 2005 compared to 55.9% in fiscal 2004.
Salaries and staff benefits rose in absolute terms and as a percentage of revenue principally due
to increased headcount to support our future growth. Our headcount increased from 5,673 employees
as of March 31, 2004 to 9,030 employees as of March 31, 2005. Salaries and staff benefits in the
year ended March 31, 2005 also included a charge of Rs. 310.2 million for compensation expense
arising out of options granted
compared to Rs. 135.1 million in the year ended March 31, 2004. Our premises and equipment expense
increased because we expanded our distribution network from 312 branches and 910 ATMs as of March
31, 2004 to 467 branches and 1,147 ATMs as of March 31, 2005. Depreciation and amortization expense
and administrative and other expenses increased primarily due to expansion of our branch and ATM
networks and higher spending on technology and infrastructure to support growth in our retail loans
and credit card business.
Income Tax
Our income tax expense increased by 70.0% from Rs. 1.8 billion in fiscal 2004 to Rs. 3.1 billion in
fiscal 2005. Our effective rate of tax increased from 27.9% in fiscal 2004 to 32.1% in fiscal 2005,
principally due to an increase of 0.72% in the statutory income tax rate and higher permanent
differences in the form of stock based compensation and lower tax exempt income in the year ended
March 31, 2005. Tax-exempt income consists principally of dividends and investment income from
tax-exempt investments such as preference shares, mutual fund units and infrastructure bonds.
Net Income
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74
As a result of the foregoing factors, our net income after taxes increased by 39.0% from Rs. 4.8
billion in fiscal 2004 to Rs. 6.6 billion in fiscal 2005.
Liquidity and Capital Resources
Our growth over the last three years has been financed by a combination of cash generated from
operations, increases in our customer deposits, borrowings and new issuances of equity capital.
The following table sets forth our cash flows from operating activities, investing activities and
financing activities in a condensed format. We have aggregated certain line items set forth in the
cash flow statement that is part of our financial statements included elsewhere in this report in
order to facilitate understanding of significant trends in our business.
Years ended March 31,
2004
2005
2006
(In millions)
Cash flows from operating activities:
Net income
Rs.    4,754.5
Rs.   6,609.7
Rs. 9,187.1
Non cash adjustment to net income
4,520.0
5,021.2
12,144.0
Subtotal
9,274.5
11,630.9
21,331.1
Net change in other assets and liabilities
30,981.40
(9,886.2
)
11,285.0
Net cash provided/(used) by operating activities
40,255.9
1,744.7
32,616.1
Cash flows from investing activities:
Net change in term placements
4,182.2
(5,134.3
)
(1,544.2
)
Net change in Investment
(57,535.2
)
(17,516.4
)
(78,453.7
)
Purchase of subsidiary
155.8
Proceeds from loans securitized
5,917.4
48,234.6
19,733.3
Loans Purchased
(6,180.7
)
(18,309.8
)
(8,952.3
)
Collections from Loans Purchased
2,233.3
16,621.2
5,216.0
Increase in loans originated, net of principal
collections
(63,818.4
)
(127,777.5
)
(159,840.8
)
Additions to property and equipment
(2,119.0
)
(2,433.3
)
(3,701.4
)
Net cash used in investing activities
(117,320.4
)
(106,315.5
)
(227,387.3
)
Cash flows from financing activities:
Net increase in deposits
80,302.0
59,480.5
193,762.9
Net increase/(decrease) in short-term borrowings
2,484.6
38,014.9
13,597.6
Net increase/(decrease) in long-term debt
3,970.0
(1,057.9
)
12,000.5
Proceeds from issuance of equity shares for options exercised
203.6
659.1
625.8
Proceeds from issuance of ADSs
—
12,747.6
—
Proceeds from applications received for shares pending allotment
125.5
423.3
—
Payment of dividends and dividend tax
(955.7
)
(1,131.3
)
(1,597.1
)
Net cash provided by financing activities
86,130.0
109,136.2
218,389.7
Net change in cash
9,065.5
4,565.4
23,618.5
Cash and cash equivalents, beginning of year
23,944.9
33,010.4
37,575.8
Cash and cash equivalents, end of year
Rs.  33,010.4
Rs.  37,575.8
Rs.  61,194.3
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75
Cash flows from operations
Our net
cash from operations reflects our net income, adjustments for tax and
non-cash charges such as depreciation and amortization, as well as
changes in other assets and liabilities. Our net income after
adjusting for tax and non-cash adjustments increased in the periods
shown. Movements in other assets and liabilities also had a
significant impact on the net cash flow from operations in fiscal
2006. This was primarily on account of the increase in cash floats
associated with our transactional services by over Rs. 9.0 billion
and bills payable by Rs. 5.2 billion.
Cash flows from financing activities
Our primary sources of cash flows from financing activities are deposits and, to a lesser extent,
borrowings. Deposits have increased over time as our business has expanded. Our total deposits
increased by 53.3% from Rs. 363.5 billion in fiscal 2005 to Rs. 557.3 billion in fiscal 2006.
Savings account deposits at Rs. 161.9 billion and current account
deposits at Rs. 147.1 billion,
together accounted for approximately 55.4% of the total deposits as of March 31, 2006. There has
been a 73.6% increase in our time deposits from Rs. 143.1 billion in fiscal 2005 to Rs. 248.3
billion in fiscal 2006, which contributed to the significant overall increase in deposits.
The short-term borrowings are utilized for our Treasury Operations. In the fiscal 2006, our short
term borrowings increased by 21.9% to Rs. 75.7 billion from Rs. 62.1 billion in fiscal 2005.
During the year ended March 31, 2006 we raised Rs. 12.0 billion subordinated debt at an annualized
coupon between 7.5% to 8.6% and having maturity ranging from nine to
ten years. During the
year ended March 31, 2006 we raised Rs. 12.0 billion subordinated
debt at an annualized coupon between 7.5% to 8.6% and having maturity
ranging from nine to ten years. Subordinated debt qualifies for Tier
2 capital. Subsequent to March 31, 2006, we have raised debt
aggregating to Rs. 10.1 billion that qualifies for Tier 2 capital, at
an annualized coupon between 8.4% to 9.2% and having maturity ranging
from ten to fifteen years and perpetual debt aggregating to Rs. 2
billion that qualifies as Tier 1 capital, at a semi annualized coupon
of 9.9%.
Cash flows from investing activities
We used our cash from operations and financing activities primarily to invest in our retail loan
book. Our growth in investments reflected primarily an increase in statutory liquidity ratio
investments that was required as our business expanded. The net change in investment at March 31,
2006 was Rs. 78.5 billion. This increase was primarily due to
increase in investments required to meet our statutory liquidity ratio
during the year. These investments increased from Rs. 111.8 billion
in fiscal 2005 to Rs. 188.1 billion in fiscal 2006.
The net change in loans (net of principal collections) increased from Rs. 129.5 billion in fiscal
2005 to Rs. 163.6 billion in fiscal 2006. This was mainly due to increase in Retail Loans, which
increased by 104.0 % in fiscal 2006.
During the fiscal year 2005-06, the RBI issued guidelines on securitization transactions vide its
circular dated February 1, 2006. Prior to the issuance of the said guidelines any gain or loss from
the sale of
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76
receivables was recognized in the period in which the sale occurred. Now with the new guidelines,
the Bank is required to amortize any profit or premium arising on account of sale of receivables
over the life of the securities sold out while any loss arising on account of sale is required to
be recognized in the profit/ loss account for the period in which the sale occurs. Also, credit
enhancements are now reduced from capital, and so is any securitization paper in excess of the
prescribed limits. The securitization market has thus slowed down, and the decline in sale of
receivables portfolio from Rs. 48.2 billion in fiscal 2005 to Rs. 19.7 billion in fiscal 2006 is
primarily because of the same.
Financial Condition
Assets
The following table sets forth the principal components of our assets as of March 31, 2005 and
March 31, 2006:
As of March 31,
Increase/
% Increase/
2005
2006
(decrease)
(decrease)
(in millions except percentages)
Cash and cash equivalents
Rs.
37,575.8
Rs.
61,194.3
Rs.
23,618.5
62.9
%
Term placements
8,699.6
10,243.7
1,544.1
17.7
Investments held for trading
1,278.5
2,945.6
1,667.1
130.4
Investments available for sale
204,292.8
273,457.0
69,164.2
33.9
Investments held to maturity
—
—
—
—
Securities purchased under
agreements to resell
—
4,200.0
4,200.0
—
Loans, net
256,486.9
395,274.3
138,787.4
54.1
Accrued interest receivable
4,912.1
8,662.7
3,750.6
76.4
Property and equipment
7,083.2
8,714.6
1,631.4
23.0
Other assets
15,215.3
26,277.2
11,061.9
72.7
Total assets
Rs.
535,544.2
Rs.
790,969.4
Rs.
255,425.2
47.7
%
Our total
assets increased by 47.7% to Rs. 791.0 billion in fiscal 2006 from Rs. 535.5 billion
in fiscal 2005.
There was
a 33.9% increase in AFS securities primarily on account of a rise in
the bank's statutory liquidity ratio requirements during the year. Securities purchased under
agreements to resell represents the reverse repo transactions that
the bank had entered with the RBI on March 31, 2006.
Net loans increased due to increases in both our retail and wholesale products. Our retail loan
volume increased by 104.0% from Rs. 112.7 billion in fiscal 2005 to 229.3 billion in fiscal 2006,
which reflected our increased focus on retail loans.
Our property and equipment increased as we expanded our distribution network from 467 branches and
1,147 ATMs as of March 31, 2005 to 535 branches and 1,323 ATMs as of March 31, 2006 and invested in
other infrastructure to support our growth. In addition there are
over 120 branches which are awaiting RBI approval for commencing business.
Liabilities and Shareholders' Equity
The following table sets forth the principal components of our liabilities and shareholders' equity
as of March 31, 2005 and March 31, 2006:
Table of Contents
77
As of March 31,
Increase/
% Increase/
2005
2006
(decrease)
(decrease)
(in millions except percentages)
Liabilities
Interest bearing deposits
Rs.
257,237.9
Rs.
410,181.2
Rs.
152,943.3
59.5
%
Non-interest bearing deposits
106,304.6
147,124.2
40,819.6
38.4
%
Total deposits
363,542.5
557,305.4
193,762.9
53.3
%
Short-term borrowings
62,079.1
75,676.7
13,597.6
21.9
%
Accrued interest payable
5,843.0
8,264.1
2,421.1
41.4
%
Long-term debt
5,028.1
17,028.6
12,000.5
238.7
%
Accrued expenses and other liabilities
49,713.5
77,201.8
27,488.3
55.3
%
Total liabilities
486,206.2
735,476.6
249,270.4
51.3
%
Minority Interest
—
225.3
225.3
Shareholders' equity
49,338.0
55,267.5
5,929.5
12.0
%
Total liabilities and shareholders'
equity
Rs.
535,544.2
Rs.
790,969.4
Rs.
255,425.2
47.7
%
Our total
liabilities increased by 51.3% from Rs. 486.2 billion in fiscal
2005 to Rs. 735.5 billion
in fiscal 2006. The increase in our interest bearing deposits was principally due to new customers
acquired as we expanded our branch network and achieved greater penetration of our customer base
through cross sales of our products. Of our total deposits as of March 31, 2006 retail deposits
accounted for 62.3% amounting to Rs. 347.3 billion and wholesale deposits accounted for the
balance.
Accrued expenses and other liabilities increased principally because of an increase in bills
payable and remittances in transit as of March 31, 2006 compared to March 31, 2005.
Most of our funding requirements are met through short term and medium term funding sources. Of our
total non-equity sources of funding as of March 31, 2006, deposits accounted for approximately
75.8% with short term borrowings accounting for approximately 10.3% and long-term debt accounting
for approximately 2.3%. In our experience, a substantial portion of our deposits are rolled over
upon maturity and are, over time, a stable source of funding. However, the continuation of our
deposit base could be adversely affected in the event of deterioration in the economy or if the
interest rates offered by us differ significantly from those offered by our competitors. Our
short-term borrowings, which are comprised primarily of money-market borrowings, increased by
21.9%. During the year the Bank also raised long term subordinated debt of Rs. 12.0 billion at
an annualized coupon between 7.5% to 8.6% and having a maturity ranging from 9 to 10 years.
Shareholders' equity increased primarily due to an increase in our retained earnings. As of March
31, 2006 our shareholders' equity included Rs. 1.3 billion of unrealized loss on available for sale
securities.
Capital
We are subject to the capital adequacy requirements of the RBI, which are primarily based on the
capital adequacy accord reached by the Basel Committee of the Bank of International Settlements in
1988. For a description of the RBI's capital adequacy guidelines, see "Supervision and Regulation —
Capital Adequacy Requirements". We are required to maintain a minimum ratio of total capital to
risk adjusted assets as determined by a specified formula of 9.0%, at least half of which must be
Tier 1 capital, which is generally shareholders' equity.
Our regulatory capital and capital adequacy ratios as measured in accordance with Indian GAAP are
as follows:
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78
As of March 31,
2005
2006
(in millions except percentages)
Tier 1 capital
Rs.
39,621.6
Rs.
51,499.1
Tier 2 capital
10,547.3
17,207.1
Total capital
Rs.
50,168.9
Rs.
68,706.2
Total risk weighted assets and contingents
Rs.
412,710.3
Rs.
602,176.2
Capital ratios
Tier 1
9.60
%
8.55
%
Total capital
12.16
%
11.41
%
Minimum capital ratios required by the RBI:
Tier 1
4.50
%
4.50
%
Total capital
9.00
%
9.00
%
As shown above, our Tier 1 capital ratio decreased to 8.55% and our total capital ratio
decreased to 11.46% as of March 31, 2006.
Our Indian GAAP financial statements include general provisions (unallocated allowances) of Rs. 1.5
billion and Rs. 1.9 billion as of March 31, 2005 and March 31, 2006, respectively, which qualify
for Tier 2 capital subject to a ceiling of risk weighted assets.
Pursuant
to the issuance of securitization guidelines by RBI, the Bank has
given the following treatment to credit enhancements provided to an
investor or a special purpose vehicle:
•     50%
of each of the first and second loss credit enhancement * is reduced
from Tier 1 and Tier 2 capital respectively.
•     
Commitment to provide liquidity facility, to the extent not drawn, is
considered an off-balance sheet item and is given 100% credit
       conversion factor as well as 100% risk weight.
(* For transactions prior to issuance of Draft Securitization
Guidelines, credit enhancements provided as cash collateral have been
reduced from Tier 1 and Tier 2 capital)
The RBI Tier 1 capital and total capital ratios are expected to change with the implementation of
the Basel II standards by fiscal 2007. Under Basel II, there will be three methods for
determining the risk weighting of assets for purposes of calculating capital requirements for
credit risk, consisting of one "standardized" method in which external ratings are used and two
methods in which a bank's internal ratings are used. The RBI has said that Indian banks should use
the standardized method but it may later permit banks to migrate to the internal ratings based
approaches. We have been closely following the development of Basel II and have participated in
studies conducted by the RBI to analyze the effects of Basel II. Since the publication of the final
framework in June 2004, we have been reviewing our systems and procedures, particularly in the
areas of credit rating, risk architecture, technology support and process documentation, to ensure
that we are in a position to implement the new framework and, in particular, to follow an internal
ratings based approach once that is permitted by the RBI. This will supplement the risk management
systems that we already have in place. Recent RBI guidelines require
banks to analyse their capital ratios under the current and the
proposed guidelines and report these to the board of directors of the
Bank at regular intervals. We are in a position to comply with this
requirement.
Capital Expenditure
Our capital expenditures consist principally of branch network expansion, as well as investments in
our technology and communications infrastructure. We have current plans for aggregate capital
expenditures of approximately Rs. 2,036.6 million in fiscal 2007, of which we intend to invest
approximately Rs. 151.3 million to expand our branch, ATM and Electronic Data Capture terminal
networks and Rs. 1,885.2 million
in other technological initiatives. As of March 31, 2006, we had entered into capital commitments
of Rs.
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79
946.8 million which we plan to fund through internal accruals. However, we have no commitments
to make the balance of the planned capital expenditures and the foregoing amounts and purposes may
change depending on business conditions.
Financial Instruments and Off-Balance Sheet Arrangements
Foreign Exchange and Derivatives
We enter into foreign exchange and derivative transactions for our customers and for our own
account. Our foreign exchange contracts include forward exchange contracts, currency swaps and
currency options. Our derivative contracts include rupee-based interest rate swaps, forward rate
agreements and cross-currency derivatives primarily for corporate customers. We enter into
transactions with our customers and typically lay off exposures in the inter-bank market. We also
trade rupee-based interest rate swaps for our own account and enter into foreign exchange contracts
to cover our own exposures. We earn profit on customer transactions by way of a margin as a mark-up
over the inter-bank exchange or interest rate. We earn profit on inter-bank transactions by way of
a spread between the purchase rate and the sale rate. These profits are recorded as income from
foreign exchange and derivative transactions. The RBI imposes limits on our ability to hold
overnight positions in foreign exchange and derivatives. See "Business — Treasury — Derivatives".
The following table presents the aggregate notional principal amounts of our outstanding foreign
exchange and derivative contracts as of March 31, 2005 and March 31, 2006, together with the
related fair value, which is the mark-to-market impact of the derivative and foreign exchange
products on the reporting date. We do not net exposures to the same counter party in calculating
these amounts.
As of March 31,
2005
2006
Notional
Fair Value
Notional
Fair Value
(In millions)
Interest rate swaps
and forward rate
agreements
Rs.
780,211.6
Rs.
(79.7
)
Rs.
1,209,102.8
Rs.
(593.1
)
Forward exchange
contracts, currency
swaps and currency
options
Rs.
571,445.0
Rs.
731.2
Rs.
845,329.3
Rs.
1,025.8
Our trading activities for the above derivative instruments are carried out in the inter-bank
market, which is a non-exchange informal market. However, these markets generally either provide
price discovery or sufficient data to reliably estimate fair values of financial instruments.
Guarantees and Documentary Credits
As a part of our commercial banking activities, we issue documentary credits and guarantees.
Documentary credits, such as letters of credit, enhance the credit standing of our customers.
Guarantees generally represent irrevocable assurances that we will make payments in the event that
the customer fails to fulfill its financial or performance obligations. Financial guarantees are
obligations to pay a third party beneficiary where a customer fails to make payment toward a
specified financial obligation. Performance guarantees are obligations to pay a third party
beneficiary where a customer fails to perform a non-financial contractual obligation. The nominal
values of guarantees and documentary credits for the dates set forth below were as follows:
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80
As of March 31,
2005
2006
(In millions)
Bank guarantees:
Financial guarantees
Rs.
14,365.4
Rs.
21,141.0
Performance guarantees
9,954.4
12,940.9
Documentary credits
27,930.2
24,103.7
Total
Rs.
52,250.0
Rs.
58,185.6
Guarantees and documentary credits outstanding increased by 11.4% to Rs. 58.2 billion as of
March 31, 2006, principally due to general growth in our wholesale banking business.
Loan Sanction Letters
In some cases we issue sanction letters to customers, indicating our intent to provide new loans.
The amount of loans referred to in these letters that have not yet been made increased from Rs.
65.2 billion as of March 31, 2005 to Rs. 110.8 billion as of March 31, 2006. If requested, we make
these loans subject to the customer's credit worthiness at that time and at interest rates in
effect on the date the loans are made. We are not obligated to make these loans, and the sanctions
are subject to periodic review. See also Note 23 to our Financial Statements.
Contractual Obligations and Commercial Commitments
Contractual Obligations
Payments due by period, as of March 31,2006
Less than
After
Total
1 year
1-3 years
3-5 years
5 years
(In millions)
Subordinated debt
Rs.
17,020.0
Rs.
1,000.0
Rs.
—
Rs.
—
Rs.
16,020.0
Other long term
debt
(a)
8.5
3.4
5.1
—
—
Operating leases
(b)
10,001.7
397.7
322.7
1,137.1
8,144.2
Unconditional purchase
obligations
(c)
946.8
946.8
—
—
—
Total contractual cash obligations
Rs.
27,977.0
Rs.
2,347.9
Rs.
327.8
Rs.
1,137.1
Rs.
24,164.2
a)
Other long term debt consists of capital lease obligations of
Rs. 0.4 million
pertaining to assets taken on leases, such as ATMs, VSATs and other equipment, and a
loan of Rs. 8.1 million from the Indian Renewable Energy Development Authority used to
finance solar equipment.
b)
Operating leases are principally for the lease of office, branch and ATM
premises, and
residential premises for executives.
c)
Unconditional purchase obligations principally constitute the capital
expenditure commitments
made as of March 31, 2006. See "— Capital
Expenditures".
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81
Commercial Commitments
Our commercial commitments consist principally of letters of credit, guarantees, foreign exchange
contracts and derivative contracts.
Based on historical trends, we have recognized a liability of Rs. 101.8 million as required by
FASB Interpretation No. 45, "Guarantor's Accounting and Disclosure Requirements for Guarantees,"
issued in November 2002.
As part of our risk management activities, we continuously monitor the credit worthiness of
customers as well as guarantee exposures. However, if a customer fails to perform a specified
obligation to a beneficiary, the beneficiary may draw upon the guarantee by presenting documents
that are in compliance with the guarantee. In that event, we make payment to the beneficiary on
account of the indebtedness of the customer or make payment on account of the default by the
customer in the performance of an obligation, up to the full notional amount of the guarantee. The
customer is obligated to reimburse us for any such payment. If the customer fails to pay, we would,
as applicable, liquidate collateral and/or set off accounts. The residual maturities of the above
obligations as of March 31, 2006 are set forth in the following table:
Amount of commitment expiration per period
Total amounts
Less than
committed
1 year
1-3 years
3-5 years
Over 5 years
(in millions)
Documentary Credits
Rs.
24,103.7
Rs.
21,618.9
Rs.
2,246.9
Rs.
213.6
Rs.
24.3
Guarantees
34,081.9
11,065.3
14,921.1
4,439.2
3,656.3
Forward exchange contracts
734,733.7
657,150.5
77,517.8
65.4
—
Derivative contracts*
1,319,698.4
74,474.0
559,690.9
269,349.8
416,183.7
Total contractual cash obligations
Rs.
2,112,617.7
Rs.
764,308.7
Rs.
654,376.7
Rs.
274,068.0
Rs.
419,864.3
*
Denotes notional principal amounts.
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82
MANAGEMENT
Directors and Executive Officers
Our Memorandum and Articles of Association (the "Articles") provide that until otherwise
determined by a general meeting of shareholders, the number of our directors shall not be less than
three or more than fifteen directors, excluding directors appointed pursuant to the terms of issued
debt. Our Board of Directors consisted of nine members as of March 31, 2006.
As per the Indian Companies Act, 1956 (the "Companies Act"), at least two-thirds of our directors
are required to retire by rotation, with one third of these retiring at each annual general
meeting. As on March 31, 2006, seven out of our nine directors retire by rotation. However, any
retiring director may be re-appointed by resolution of the shareholders.
Under the terms of our organizational documents, HDFC Limited has a right to nominate two
directors who are not required to retire by rotation, so long as HDFC Limited, its subsidiaries or
any other company promoted by HDFC Limited either singly or in the aggregate holds not less than
20% of our paid up equity share capital. The two directors so nominated by HDFC Limited are the
Chairman and the Managing Director. The Bennett Coleman Group has the right to appoint one director
so long as its equity holdings do not fall below 5%. Mr. Vineet Jain has been nominated by the
Bennett Coleman Group.
The Banking Regulation Act requires that not less than 51% of the board members shall have special
knowledge or practical experience in one or more of the following areas: accounting, finance,
agriculture and rural economy, banking, co-operation, economics, law, small scale industry and any
other matter the RBI may specify. Out of these, not less than two directors shall have specialized
knowledge or practical experience in agriculture and rural economy, co-operation or small-scale
industry. Dr. Gadwal has specialized knowledge and experience in the agricultural sector. Mr. Ashim
Samanta has specialized knowledge and experience in small-scale industry.
Interested directors may not vote at board proceedings, except where the interest is based solely
on a contract of indemnity for which the director is a surety, the interest is based on the
director's involvement as director of another company and holder of shares of that company, or
where a proper notification has been given under the Companies Act.
None of our directors or executive officers hold 1% or more of our shares.
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83
Our Board of Directors as of March 31, 2006 was comprised of:
Name
Position
Age
Mr. Jagdish Capoor
Chairman
67
Mr. Aditya Puri
Managing Director
55
Dr. V. R. Gadwal
Non-Executive Director
68
Mr. Vineet Jain
Non-Executive Director
40
Mr. K. M. Mistry
Non-Executive Director
52
Mrs. Renu Karnad
Non-Executive Director
54
Mr. Arvind Pande
Non-Executive Director
64
Mr. Bobby Parikh
Non-Executive Director
42
Mr. Ashim Samanta
Non-Executive Director
52
Mr. Anil Ahuja resigned with effect from June 17, 2005 and Mr. Ranjan Kapur resigned with
effect from March 29, 2006.
Our executive officers as of March 31, 2006 were as follows:
Name
Position
Age
Mr. Aditya Puri
Managing Director
55
Mr. Vinod G. Yennemadi
Head, Finance, Administration,
Legal and Secretarial
64
Mr. Samir Bhatia
Head, Corporate Banking
42
Mr. Harish Engineer
Head, Wholesale Banking
57
Mr. Sudhir Joshi
Head, Treasury
59
Mr. C. N. Ram
Head, Information Technology
49
Mr. Bharat Shah
Head, Depositary Services and
Merchant Services
59
Mr. G. Subramanian
Head, Audit, Compliance,
Vigilance and Service Quality
58
Mr. Paresh Sukthankar
Head, Credit and Market Risk and
Human Resources
43
Mr. A. Rajan
Head, Operations
54
Mr. Abhay Aima
Head, Equities and Private Banking
43
Mr Neeraj Swaroop resigned, as Head, Retail Banking with effect from August 10, 2005. Mr.
Aditya Puri presently monitors the Retail Banking activities.
Mr. Samir Bhatia resigned as Head, Corporate Banking with effect from July 31, 2006. Mr. Harish
Engineer presently monitors the Corporate Banking activities.
The business address for our directors and officers is 'HDFC Bank House', Senapati Bapat Marg,
Lower Parel (West), Mumbai — 400 013, India.
The following are brief biographies of our existing directors:
Mr. Jagdish Capoor
holds a Master of Commerce degree and is a Certified Associate of the Indian
Institute of Bankers. Mr. Capoor was appointed as part-time Chairman for a period of 3 years with
effect from July 6, 2001. At the Annual General Meeting held on May 26, 2004, the shareholders
approved the re-appointment of Mr. Capoor as Chairman on a part-time basis for three years
beginning July 6, 2004 upon revised terms and conditions. Prior to joining us, Mr. Capoor was a
Deputy Governor of the RBI. Mr. Capoor was Chairman of Deposit Insurance & Credit Guarantee
Corporation of India and Bharatiya Reserve Bank Note Mudran Ltd. and served as a director on the
boards of Bank of Baroda, Export Import Bank of India, State Bank of India, the National Bank for
Agriculture and Rural Development and the
National Housing Bank. Presently, Mr. Capoor is a director of The Indian Hotels Co. Ltd. and Assets
Care
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84
Enterprise Ltd. He is also a member of the Board of Governors of the Indian Institute of
Management, Indore and the Chairman of Bombay Stock Exchange Ltd. Mr. Capoor is a member of the
Audit Committee of Indian Hotels Co. Ltd. He is also a member of the Audit Committee of Assets Care
Enterprise Limited.
Mr. Aditya Puri
holds a Bachelor's degree in Commerce from Punjab University and is an associate
member of the Institute of Chartered Accountants of India. Mr. Puri has been our Managing Director
since September 1994. Mr. Puri has over 32 years of experience in both domestic and international
banking. Prior to joining us, Mr. Puri was the chief executive officer of Citibank, Malaysia from
1992 to 1994. At the Annual General Meeting held on May 26, 2004, the shareholders approved,
subject to RBI approval, the re-appointment of Mr. Puri as Managing Director from September 30,
2005 to March 31, 2007 upon revised terms and conditions. The RBI has approved the Managing
Director's remuneration through March 31, 2005. Further, at our 12th Annual General Meeting held on
May 30, 2006, the shareholders also approved the reappointment of our Managing Director for a
three-year period, with effect from April 1, 2007 upon revised terms and conditions, subject to RBI
approval. Mr. Puri has been appointed on the Board of SAMEA (South Asia, Middle East and
Africa-Region) Board of Master Card International.
Dr. V. R. Gadwal
holds a Bachelor and a Master of Science degree from Osmania University, Hyderabad
and a doctorate in agriculture from the Indian Agricultural Research Institute, New Delhi. He is
also a Fellow Member of the Botanical Society of India and the Indian Society of Genetics and Plant
Breeding. Dr. Gadwal has been one of our non-executive directors since March 15, 1999. Dr. Gadwal
also serves as a consultant and advisor to agricultural research and development institutions such
as Maharashtra Hybrid Seeds Co. Ltd (MAHYCO) and MAHYCO Research Foundation. Presently, Dr. Gadwal
is the President of the Indian Society for Cotton Improvement.
Mr. Vineet Jain
holds a Bachelor of Science degree and a degree in International Business
Administration — Marketing. Mr. Jain has been our non-executive director since April 14, 2001. He
also serves as the Managing Director of Bennett, Coleman & Co. Ltd, and as the Chairman,
inter alia
of Times Internet Ltd., Times of Money Ltd., Bharat Nidhi Ltd. Worldwide Media Ltd and Times Global
Broadcasting Co. Ltd. He is also on the boards of Times Infotainment Media Ltd., The Press Trust of
India Ltd., Times Journal India Private Ltd. and Times Centre for Media Studies. Mr. Jain is a
nominee of the Bennett Coleman Group.
Mr. Keki Mistry
holds a Bachelor of Commerce degree in Advanced Accountancy and Auditing and is
also a Chartered Accountant. He was actively involved in setting up several HDFC group companies,
including HDFC Bank. Mr. Mistry had been deputed on consultancy assignments for the Commonwealth
Development Corporation to Thailand, Mauritius, Caribbean Islands and Jamaica. He has also worked
as a consultant for the Mauritius Housing Company and for the Asian Development Bank. Mr. Mistry is
the Managing Director of HDFC Ltd. and the Chairman of GRUH Finance Ltd. and Intelenet Global
Services Private Ltd. He serves as director of, inter alia HDFC Developers Ltd., HDFC Chubb General
Insurance Company Ltd., HDFC Trustee Company Ltd., HDFC Standard Life Insurance Co. Ltd.,
Infrastructure Leasing & Financial Services Ltd., Sun Pharmaceutical Industries Ltd., Mahindra
Holidays & Resorts India Ltd., The Great Eastern Shipping Co. Ltd., NexGen Publishing Ltd., India
Value Fund Advisors Pvt. Ltd. Mr. Mistry is a member of the Investor Grievance Committee of HDFC
Limited and is a member of Share Transfer Committee of Infrastructure Leasing & Financial Services
Limited. He is also a member of Audit Committee of HDFC Standard Life Insurance Company Limited,
HDFC Chubb General Insurance Company Limited (Chairman), HDFC Trustee Company Limited, GRUH Finance
Limited, Infrastructure Leasing & Financial Services Limited, Sun Pharmaceutical Industries Limited
(Chairman).
Mrs. Renu Karnad
is a law graduate and also holds a Master's degree in Economics from Delhi
University. Mrs. Karnad is an executive director of HDFC Ltd. She is a director, inter alia of HDFC
Asset Management Co. Ltd, GRUH Finance Ltd, HDFC Realty Ltd, Credit Information Bureau (India) Ltd,
Feedback Ventures Ltd, HDFC Chubb General Insurance Company Ltd, Mother Dairy Fruits & Vegetables
Ltd, Ascendas Pte Ltd, Singapore, ICI India Ltd, Home Loan Services India Private Limited, Egyptian
Housing Finance Company (EHFC) S.A.E. and Intelenet Global Services Private Limited. She is a
member of Compensation/Remuneration Committee of GRUH Finance Limited and Credit Information Bureau
(India)
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85
Ltd. She is a member of Audit Committee of HDFC Chubb General Insurance Company Limited, Credit
Information Bureau (India) Ltd and ICI India Limited.
Mr. Arvind Pande
holds a Bachelor of Science degree from Allahabad University and a BA (Hons.) and
MA (Economics) degrees from Cambridge University, U.K. He started his career in Indian
Administrative Services and has held various positions in the government of India. He was a Joint
Secretary to the Prime Minister of India for Economics, Science and Technology issues. He was a
director of the department of Economic Affairs in the Ministry of Finance, Government of India and
has dealt with World Bank aided projects. He was the Chairman and Chief Executive Officer of The
Steel Authority of India Ltd. Mr. Pande is a director, inter alia of Sandhar Technologies Ltd,
IVRCL Infrastructure & Projects Ltd, Visa Steel Ltd, Assets Care Enterprise Ltd and Era
Constructions (India) Ltd. Mr. Pande is Chairman of Audit Committee of IVRCL Infrastructure and
Projects Limited.
Mr. Bobby Parikh
is a Chartered Accountant and has specialized in the areas of Tax and Business
Advisory Services with extensive experience in advising clients across a range of industries. Mr.
Parikh is a member of various trade and business associations and their committees. He is also on
the advisory/executive boards of certain non-government and non-profit organizations. Mr. Parikh
was the Country Managing Partner of Arthur Anderson & Co. and until recently, the Chief Executive
Officer of Ernst & Young Private Ltd in India. He is currently the Managing Partner of M/s BMR &
Associates. Mr. Bobby Parikh is an "audit committee financial expert" under U.S. regulations.
Mr. Ashim Samanta
holds a Bachelor of Commerce degree from University of Bombay and has wide
experience in business for nearly 26 years. He possesses vast experience in the field of bulk drugs
and pharmaceutical formulations. He is a director of Samanta Organics Private Limited for the last
16 years. He is a partner of a firm which manages mid-sized poultry farms. Mr. Samanta has also
been engaged in setting up and running of film editing and dubbing studio.
The following are brief biographies of our existing executive officers:
Mr. A. Rajan
holds a Bachelor of Science degree. He has over 26 years of experience in various
aspects of operations in banking. He was part of the core management team that set up the bank, as
its Head of Operations, and was responsible for creating the Operations team and detailed Operating
Procedures. Afterwards, he was also the CEO of Flexcel International Private Ltd for three years.
He is now once again the Head — Operations.
Mr. Abhay Aima
is a graduate of the National Defence Academy. Mr. Aima is currently our Head,
Equities, Private Banking and Third Party Products.
Mr. Bharat Shah
holds a Bachelor of Science degree from Bombay University and a Higher National
Diploma in Applied Chemistry from London University. He serves as our Head, Depositary Services and
Merchant Services. Mr. Shah also serves as a non-executive director of Computer Age Management
Services Private Ltd, HDFC Securities Ltd and Atlas Documentary Facilitators Company Private Ltd.
Mr. C. N. Ram
holds a Bachelor of Technology Degree in Electrical Engineering from the Indian
Institute of Technology and a Postgraduate Diploma in Management from the Indian Institute of
Management. Mr. Ram has served as Head, Information Technology since July 1994. In addition, he
also serves as a director on the boards of a number of companies, including our affiliates,
SolutionNET India Private Ltd, Flexcel International Private Ltd, Softcell Technologies Ltd and
HDFC Securities Ltd.
Mr. G. Subramanian
holds a Bachelor of Science degree in Chemistry from Madras Christian College
and is a Certified Associate of the Indian Institute of Bankers. Mr. Subramanian has been the Head,
Audit, Compliance, Vigilance and Service Quality since January 1995. Prior to that, Mr. Subramanian
was deputy General Manager of the RBI. Mr. Subramanian also serves as a director on the Board of
Directors of Computer Age Management Services Private Ltd.
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86
Mr. Harish Engineer
holds a Bachelor of Science degree in Physics and Chemistry and a diploma in
Business Management. Since the resignation of Mr. Samir Bhatia, Mr. Engineer also monitors the
Corporate Banking activities. Mr. Engineer presently is the Head, Wholesale Banking.
Mr. Paresh Sukthankar
holds a Bachelor of Commerce degree and Master in Management Studies from
Bombay University. Mr. Sukthankar has held the position of Head, Credit and Market Risk since
September 1994 and since December 1999 also supervises the Human Resources function.
Mr. Samir Bhatia
holds a Bachelor of Commerce degree from the University of Bombay, a Cost
Accountancy Qualification from the Institute of Cost and Works Accountants of India and a Chartered
Accountancy Qualification from the Institute of Chartered Accountants of India. He most recently
served as our Head, Corporate Banking, and previously served as our Regional Head, Corporate
Banking in various regions of India since September 1994. Mr Samir Bhatia resigned from the
services of the bank as of July 31, 2006.
Mr. Sudhir Joshi
holds a Bachelor of Science degree in Chemistry from the University of Pune and is
a Certified Associate of the Indian Institute of Bankers. Mr. Joshi has held the position of Head,
Treasury since April 2000. He was Head, Financial Investment Group for a brief period between
February 2000 and March 2000. From June 1995 until joining us, Mr. Joshi served as executive vice
president, treasury, of Times Bank Ltd. At present, he is the Chairman of the Fixed Income Money
Market and Derivatives Association of India and on the Board of the Clearing Corporation of India
Ltd.
Mr. Vinod G. Yennemadi
holds a Bachelor of Commerce degree and is also a Fellow of the Institute of
Chartered Accountants of India and an Associate of the Institute of Chartered Accountants in
England and Wales. Mr. Yennemadi has been the Head, Finance, Administration, Legal, and Secretarial
since April 1994. In addition, Mr. Yennemadi serves as a director of Softcell Technologies Ltd,
HDFC Securities Ltd, SolutionNET India Private Ltd, Atlas Documentary Facilitators Company Private
Ltd and Flexcel International Private Ltd.
Corporate Governance
Audit And Compliance Committee:
The Audit and Compliance Committee of the Bank is chaired by Mr. Bobby Parikh. The other members
of the Committee are, Mr. Arvind Pande, Dr. V. R. Gadwal and Mr. Ashim Samanta. All the members of
the Audit Committee are independent directors and Mr. Bobby Parikh is an Audit Committee financial
expert.
During the year, the Committee held six meetings.
The responsibilities of the Audit Committee are in accordance with clause 49 of the Listing
Agreement entered into with the Stock Exchanges in India as well as applicable U.S. law
requirements and inter alia includes the following:
§
Overseeing the Bank's financial reporting process and ensuring correct, adequate and credible disclosure of financial
information;
§
Recommending appointment and removal of external auditors and fixing of their fees;
§
Reviewing with management the annual financial statements before submission to the Board with special emphasis on
accounting policies and practices, compliance with accounting standards and other legal requirements concerning
financial statements;
§
Reviewing the adequacy of the Audit and Compliance function, including their policies, procedures, techniques and other
regulatory requirements. and
§
Any other terms of reference as may be included from time to time in clause 49 of the listing agreement
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87
Mr. Anil Ahuja and Mr. Ranjan Kapur ceased to be members of the Committee with effect from June 17,
2005 and March 29, 2006 respectively. Mr. Ashim Samanta was inducted as a member of the Committee
with effect from July 14, 2005.
Compensation Committee:
The Compensation Committee reviews the overall compensation structure and policies of the Bank with
a view to attract, retain and motivate employees, consider grant of stock options to employees,
reviewing compensation levels of the Bank's employees vis-a-vis other banks and industry in
general.
The Bank's compensation policy is to provide a fair and consistent basis for motivating and
rewarding employees appropriately according to their job /role size, performance, contribution,
skill, and competence.
The Committee consists of Mr. Jagdish Capoor, Mr. Bobby Parikh, and Dr. Venkat Rao Gadwal. Mr. Anil
Ahuja and Mr. Ranjan Kapur ceased to be members of the committee with effect from. June 17, 2005
and March 29, 2006 respectively. Mr. Bobby Parikh was inducted as a member of the Committee with
effect from July 14, 2005. The Committee is chaired by Mr. Jagdish Capoor. All the members of the
Committee other than Mr. Capoor are independent directors.
During the year the Committee held four meetings.
Investors' Grievance (Share) Committee:
The Investors' Grievance (Share) Committee approves and monitors transfers, transmissions,
splitting and consolidation of shares and bonds issued by the Bank and allotment of shares to the
employees pursuant to Employees Stock Option Scheme. The Committee also monitors redressal of
complaints from shareholders relating to transfer of shares, non-receipt of Annual Reports,
dividends etc.
The Committee consists of Mr. Jagdish Capoor and Mr. Aditya Puri.
The Committee is chaired by Mr. Jagdish Capoor and met thirteen times during the year. The powers
to approve share transfers and dematerialisation requests have been delegated to executives of the
Bank to avoid delays that may arise due to non-availability of the members of the Committee.
As on March 31, 2006, 36 instruments of transfer of shares were pending and since then the same
have been processed. The details of the share transfers are reported to the Board of Directors from
time to time.
During the year, the Bank received 218 complaints from shareholders, which have been attended to.
Risk Monitoring Committee:
The Risk Monitoring Committee is formed as per the guidelines of the Reserve Bank of India on the
Asset Liability Management/Risk Management Systems. The Committee develops Bank's credit and market
risk polices and procedures, verifies adherence to various risk parameters and prudential limits
for treasury operations and reviews its risk monitoring system. The committee also ensures that the
Bank's credit exposure to any one group or industry does not exceed the internally set limits and
that the risk is prudentially diversified.
The Committee consists of Mr. Bobby Parikh, Mr. Aditya Puri and Mrs. Renu Karnad and is chaired by
Mr. Bobby Parikh.
The Committee met five times during the year.
Mr. Anil Ahuja ceased to be the member of the Committee with effect from 17th June, 2005. Mr. Bobby
Parikh was inducted as a member of the Committee with effect from July 14, 2005.
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88
Credit Approval Committee:
The Credit Approval Committee approves credit exposures, which are beyond the powers delegated to
executives of the Bank. This facilitates quick response to the needs of the customers and speedy
disbursement of loans.
The Committee comprises Mr. Jagdish Capoor, Mr. Aditya Puri, Mr. Keki Mistry and Mr. Bobby Parikh.
The Committee is chaired by Mr. Jagdish Capoor and met three times during the year.
Premises Committee:
The Premises Committee approves purchases and leasing of premises for the use of Bank's branches,
back offices, ATMs and residence of executives in accordance with the guidelines laid down by the
Board. The Committee consists of Dr. Venkat Rao Gadwal, Mr. Aditya Puri and Mr. Ashim Samanta. Mr.
Ranjan Kapur has resigned with effect from March 29, 2006.
The Committee is chaired by Dr. V. R. Gadwal and met five times during the year.
Nomination Committee:
The Bank has constituted a Nomination Committee for recommending the appointment of
independent/non-executive directors on the Board of the Bank. The Nomination Committee scrutinizes
the nominations for independent/non–executive directors with reference to their qualifications and
experience. For identifying 'Fit and Proper' persons, the Committee adopts the following criteria
to assess competency of the persons nominated: Academic qualifications, previous experience and
track record; and integrity of the candidates.
For assessing the integrity and suitability, features like criminal records, financial position,
civil actions undertaken to pursue personal debts, refusal of admission to and expulsion from
professional bodies, sanctions applied by regulators or similar bodies and previous questionable
business practices are considered.
The members of the Committee are Mr. Arvind Pande, Dr. V. R. Gadwal and Mr. Ashim Samanta. All the
members of the Committee are independent directors.
Two meetings of the Committee were held during the year.
Mr. Anil Ahuja and Mr. Ranjan Kapur have ceased to be the members of the Committee with effect from
June 17, 2005 and March 29, 2006 respecively. Mr. Ashim Samanta was inducted as a member of the
Committee with effect from July 14, 2005.
Fraud Monitoring Committee:
Pursuant to the directives of the RBI to all commercial banks, the Bank has constituted a Fraud
Monitoring Committee on April 16, 2004, exclusively dedicated to the monitoring and following up of
cases of fraud involving amounts of Rs. 1 crore and more. The objective of this Committee is the
effective detection of frauds and immediate reporting thereof to regulatory and enforcement
agencies and actions taken against the perpetrators of frauds. The terms of reference of the
Committee are as under:
§
Identify the systems lacunae, if any, that facilitated perpetration of the fraud and put in place measures to plug the
same;
§
Identify the reasons for delay in detection, if any, reporting to top management of the Bank and RBI;
§
Monitor progress of CBI / police investigation and recovery position;
§
Ensure that staff accountability is examined at all levels in all the cases of frauds and staff side action, if
required, is completed quickly without loss of time;
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89
§
Review the efficacy of the remedial action taken to prevent recurrence of frauds, such as strengthening of internal
controls;
§
Put in place other measures as may be considered relevant to strengthen preventive measures against frauds.
The members of the Committee are Mr. Jagdish Capoor, Mr. Aditya Puri, Mr. Keki Mistry, Mr. Bobby
Parikh and Mr. Arvind Pande. The Committee is chaired by Mr. Jagdish Capoor.
Four meetings of the Committee were held during the year.
Customer Service Committee
:
The Bank has constituted a Customer Service Committee on October 21, 2004 pursuant to the
guidelines issued by the RBI. The Committee monitors the quality of services rendered to the
customers and also ensures implementation of directives received from RBI in this regard. The
Committee would formulate a comprehensive deposit policy, incorporating the issues arising out of
death of a depositor for operations of his account, the product approval process, the annual survey
of depositor satisfaction and the triennial audit of such services.
The members of the Committee are Mr. Keki Mistry, Dr. Venkat Rao Gadwal and Mr. Arvind Pande.
Four meetings of the Committee were held during the year.
Committees of Executives
We have also constituted committees of executives that meet frequently to discuss and decide on
management of assets and liabilities, as well as matters including other operations and personnel,
and other operational issues.
Borrowing Powers of Directors
The shareholders of the Bank, at the Annual General Meeting of the Bank held on May 26, 2004 passed
a Special Resolution pursuant to Section 293(1)(d) of the Companies Act, authorising the Board of
Directors of the Bank to borrow, for the purpose of business of the Bank, such sum or sums of
monies as they may deem necessary, notwithstanding the fact that the monies borrowed and the monies
to be borrowed from time to time (apart from acceptances of deposits of money from public repayable
on demand or otherwise and withdrawable by cheque, draft, order or otherwise and/or temporary loans
obtained in the ordinary course of business from banks, whether in India or outside India) will
exceed the aggregate of the paid up capital of the Bank and its free reserves (i.e. to say reserves
not set apart for any specific purpose), subject to the condition that the total outstanding amount
of such borrowings shall not exceed Rs. 50 billion over and above the aggregate of the paid up
capital of the Bank and its free reserves at any time.
The terms on which the Board of Directors may borrow funds may include the lender's right to
appoint directors, the allotment of shares to certain public financial institutions, and with prior
shareholder and regulatory approval the allotment of shares to other entities.
Compensation of Directors and Executive Officers
The compensation packages of our Chairman and Managing Director are approved by the
shareholders and the RBI on the recommendation of the Board of Directors. During fiscal 2006, our
Chairman received a salary of Rs. 900,000. Effective April 1, 2004, our Managing
Director receives an annual salary of Rs. 7,200,000 and other allowances and emoluments as have
been approved by the shareholders and the RBI. At our 12th Annual General Meeting held on May 30,
2006, the shareholders also approved the reappointment of our Managing Director for a further
three-year period, with effect from April 1, 2007. Further, in the said annual general meeting the
shareholders have approved the revised salary/compensation
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90
and allowances of the Managing Director to Rs. 896,750 per month with effect from. April 1, 2006,
Rs. 1,088,485 per month with effect from April 1, 2007 and Rs. 1,280,085 per month with effect from
April 1, 2008. For the fiscal year ended March 31, 2006, the aggregate amount of compensation paid
to all of our executive officers was approximately Rs. 116.0 million. For the fiscal year ended
March 31, 2006, the aggregate amount accrued by us to provide pension, retirement or similar
benefits for our Managing Director and executive officers was approximately Rs. 7.0 million.
Under our organizational documents, each director, except the Managing Director, is entitled to
sitting fees for attending each meeting of the Board of Directors or of a board committee. The
amount of sitting fees is set by the board from time to time in accordance with limitations
prescribed by the Companies Act or the government of India. At the board meeting held on January
10, 2006, it was decided that remuneration for attending board meetings and committee meetings
would be Rs. 20,000 per meeting, except in case of meetings of the Share Committee, for which the
remuneration is Rs. 5,000 per meeting. We reimburse directors for travel and related expenses in
connection with board and committee meetings and related matters.
Other than our Chairman and Managing Director, none of our directors has a service contract with
us.
Loans to Executive Officers
Loans to our executive officers are granted in the normal course within the Bank's scheme, as is
the case in respect of other employees of the Bank. This is within the provisions of the local
regulations.
Largest Amount
Amount
Interest rate
Outstanding since
Outstanding as of
as of March
Name
March 31, 2001
March 31, 2006
31, 2006
Nature of Loan
(In Millions, expect percentages)
Abhay Aima
1.6
1.6
9.3
%
Housing Loan
0.4
—
—
Personal Loan
Aditya Puri
5.0
5.0
9.3
Housing Loan
A. Rajan
5.0
4.8
9.3
Housing Loan
0.5
0.3
5.0
Personal Loan
Bharat Shah
4.7
—
—
Housing Loan
0.1
—
—
Personal Loan
C. N. Ram
2.0
—
—
Housing Loan
0.1
—
—
Personal Loan
1.5
—
—
Auto Loan
G. Subramanian
5.7
5.7
9.3
Housing Loan
0.5
0.3
5.0
Personal Loan
H. Srikrishnan*
5.0
—
—
Housing Loan
0.5
—
—
Personal Loan
Harish Engineer
2.3
2.3
9.3
Housing Loan
0.3
—
—
Personal Loan
Neeraj Swaroop*
3.2
—
—
Housing Loan
0.4
—
—
Personal Loan
Paresh Sukthankar
4.0
—
—
Housing Loan
Samir Bhatia*
6.8
6.8
9.3
Housing Loan
0.4
—
—
Personal Loan
Sudhir Joshi
6.4
6.4
9.3
Housing Loan
Uma Krishnan*
4.1
—
—
Housing Loan
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91
Largest Amount
Amount
Interest rate
Outstanding since
Outstanding as of
as of March
Name
March 31, 2001
March 31, 2006
31, 2006
Nature of Loan
(In Millions, expect percentages)
0.4
—
—
Personal Loan
0.1
—
—
Consumer Loan
Vinod Yennemadi
2.1
2.1
8.5
Housing Loan
0.5
0.5
5.0
Personal Loan
Total
63.6
35.8
*
No longer an Executive Officer of the Bank.
Employees Stock Option Scheme
Our shareholders approved plan "A-(year 2000)" in January of 2000, plan "B-(year 2003)" in June of
2003 and plan "C-(year 2005)" in June of 2005 for the issuance of stock options to employees and to
the directors of the Bank. Under the plan "A", the option price is set as the average of the daily
closing prices on Bombay Stock Exchange Ltd. during the 60 days preceding the grant date. Under the
plan "B" and "C", the option price is set as the closing prices on the business day preceding the
grant date on whichever stock exchange in India has the highest trading volume for our shares
during the two weeks preceding the date of grant. Our Compensation Committee has issued options
under these plans on seven separate occasions since January 2000. The options granted on those
occasions vest at the rate of 30%, 30% and 40% on each of the three successive anniversaries
following the date of grant, subject to standard vesting conditions. In fiscal 2006, 3.27 million
options were exercised, resulting in an increase in our paid-up capital of Rs. 32.7 million and
share premium by Rs. 1,020.3 million. As of March 31, 2006, 13.6 million options were outstanding.
Other Compensation
All employees, including our Managing Director and officers, receive the benefit of our gratuity
and provident fund retirement schemes. Our superannuation fund covers all employees at manager
level or above, including our Managing Director. Our gratuity fund, required under Indian law, is a
defined benefit plan that, upon retirement, death while employed or termination of employment, pays
a lump sum equivalent to 15 days' salary for each completed year of service. The superannuation
fund is a retirement plan under which we annually contribute 13% (15% for the Managing Director) of
the eligible employee's annual salary to the administrator of the fund. Under the provident fund,
required by Indian law, both we and the employee contribute monthly at a determined rate (currently
12% of the employee's salary) to a fund set up by us, which is administered by a board of trustees.
For employees whose basic salary is less than Rs. 6,500 per month, a portion (currently 8.33% of
the employee's salary) of the employer's contribution is transferred to a fund administered by the
government in accordance with the Provident Fund Act. We retain liability for future payments under
the gratuity fund, but not under the superannuation or provident funds.
Controls and procedures
Evaluation of disclosure controls and procedures
As of the end of the period covered by this report, our principal executive officer and principal
financial officer conducted an evaluation pursuant to Rule 13a-15 promulgated under the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), of the effectiveness of the design and
operation of our disclosure controls and procedures. Based on this evaluation, our principal
executive officer and principal financial officer concluded that, as of the date of their
evaluation, such disclosure controls and procedures were effective to provide reasonable assurance
that information required to be disclosed by us in the reports we file or submit under the Exchange
Act is recorded, processed, summarized and reported within the time periods specified in the rules
and forms of the Securities and Exchange Commission.
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92
Changes in internal controls
There were no significant changes in our internal controls or in other factors that could
materially or are reasonably likely to materially affect these controls subsequent to the date of
their evaluation. There were no significant deficiencies or material weaknesses, and therefore
there were no corrective actions taken.
Audit committee financial expert
Mr. Bobby Parikh joined our Board of Directors on January 9, 2004. On March 26, 2004 Mr. Parikh was
inducted as a member of the audit committee. Our Board of Directors has determined Mr. Bobby Parikh
as an Audit Committee financial expert as defined in item 401(h) of Regulation S-K, and is
independent pursuant to applicable SEC rules.
Code of ethics
On July 14, 2004, our Audit Committee adopted a written code of ethics applicable to the Managing
Director (Chief Executive Officer), the Chief Financial Officer and Executive Officers of the Bank.
We believe the code constitutes a "code of ethics" as defined in Item 16B of Form 20-F. We will
provide a copy of such code of ethics to any person without change upon request. Request may be
made by writing to investor.helpdesk@hdfcbank.com
On July 14, 2004, our Audit Committee also adopted a Whistle Blower Policy wherein it has
established procedures for receiving, retaining and treating complaints received, and procedures
for the confidential, anonymous submission by employees of complaints regarding questionable
accounting or auditing matters, conduct which results in a violation of law by HDFC Bank or in a
substantial mismanagement of Bank's resources. Under this policy our employees are encouraged to
report questionable accounting matters, any reporting of fraudulent financial information to our
shareholders, the government or the financial markets, or any conduct that results in a violation
of law by HDFC Bank to our management (on an anonymous basis, if employees so desire). Likewise,
under this policy, we have prohibited discrimination, retaliation or harassment of any kind against
any employee who, based on the employee's reasonable belief that such conduct or practices have
occurred or are occurring, reports that information or participates in an investigation.
Principal Accountant Fees and Services
The following table sets forth for the fiscal years indicated the fees paid to our principal
accountant and its associated entities for various services they provided us in these periods.
Fiscal year ended
Type of Service
March 31, 2005
March 31, 2006
Description of Services
( in millions)
Audit services
Rs.
3.9
Rs.
12.0
Audit of financial statements
Audit-related
services
1.1
5.2
Services related to review of
financial statements and due
diligence
Tax services
—
0.5
Tax audit, tax returns, tax
processing, tax filing and
advisory services
Other services
0.2
0.9
Statutory certifications,
quality registrar, work permit
related services and other
advisory services
Rs.
5.2
Rs.
18.6
Our audit committee charter requires us to take the prior approval of our Audit Committee on every
occasion we engage our principal accountants or their associated entities to provide us any
non-audit
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93
services. We disclose to our audit committee the nature of services that are provided and the fees
to be paid for the services. All of the non-audit services provided by our principal accountants or
their associated entities in the previous two fiscal years have been pre-approved by our Audit
Committee.
Compliance with NYSE Listing Standards on Corporate Governance
We are incorporated under the Indian Companies Act, 1956, and our equity shares are listed on the
major stock exchanges in India. Our corporate governance framework is in compliance with the Indian
Companies Act, 1956, the regulations and guidelines of SEBI and the requirements of the listing
agreements entered into with the Indian stock exchanges. We also have ADSs listed on the New York
Stock Exchange (the "NYSE").
On November 4, 2003, the Securities and Exchange Commission (the "SEC") approved new rules proposed
by the NYSE intended to strengthen corporate governance standards for listed companies. These new
corporate governance-listing standards supplement the corporate governance reforms already adopted
by the SEC pursuant to the Sarbanes-Oxley Act of 2002.
Section 303A.11 of the NYSE Corporate Governance Standards requires listed companies that are
foreign private issuers to disclose the significant ways in which their corporate governance
practices differ from those followed by U.S. companies under the NYSE Corporate Governance
Standards. The table below sets forth the differences between the rules applicable to U.S.
companies under the NYSE Corporate Governance Standards and HDFC Bank's practices under Indian law.
NYSE rule applicable to
U.S. listed companies
Indian law and HDFC Bank's practice
Companies must have a majority
of independent directors.
(NYSE Corporate Governance
Standard 303A.01)
Under Indian law, if the chairman of the
Board of Directors is not an executive
officer of the company, at least one-third
of the directors should be independent. If
the chairman is an executive officer, at
least 50% of the company's directors
should be independent. The chairman of our
Board of Directors is not an executive
officer and 4 out of 9 members of the
board are independent.
Certain heightened standards
apply to "independent
directors" (NYSE Corporate
Governance Standard 303A.02)
Under Indian law, a director is
"independent" so long as he or she does
not have any material pecuniary
relationship or transactions (apart from
director's remuneration) with the company,
its promoters, its management or its
subsidiaries, which in the judgment of the
board may affect the independence or
judgment of the director. We apply the
Indian definition of "independent".
Non-management directors must
meet at regularly scheduled
executive sessions without
management. (NYSE Corporate
Governance Standard 303A.03)
Under Indian law, there is no requirement
for such sessions. HDFC Bank does not
regularly hold such meetings.
Companies must have a
nominating/corporate
governance committee composed
entirely of independent
directors. (NYSE Corporate
Governance Standard 303A.04)
Under Indian law, a nominating/corporate
governance committee is not required.
However, HDFC Bank has a Nomination
Committee that is responsible for
recommending the appointment of
independent/non-
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94
NYSE rule applicable to
U.S. listed companies
Indian law and HDFC Bank's practice
executive directors to the Board of Directors. The Nomination
Committee during the year was composed of four non-executive directors, all of whom
were independent.
The nominating/corporate
governance committee must have
a written charter that
addresses certain specific
committee purposes and
responsibilities and provides
for an annual performance
evaluation of the committee.
(NYSE Corporate Governance
Standard 303A.04)
Since Indian law does not require a
nominating/corporate governance committee,
it also does not require a charter for
such a committee. As a result, we have no
such charter.
Companies must have a
compensation committee
composed entirely of
independent directors. (NYSE
Corporate Governance Standard
303A.05)
Under Indian law, a company's Board of
Directors sets the compensation for
non-executive directors. Non-mandatory
Indian law recommends that companies
establish a remuneration committee
composed of non-executive directors and an
independent chairman to determine the
compensation of executive directors. The
Compensation Committee during the year was
composed of four non-executive directors,
all of whom were independent
The compensation committee
must have a written charter
that addresses certain
specific purposes and
responsibilities of the
committee and provides for an
annual performance evaluation
of the committee. (NYSE
Corporate Governance Standard
303A.05)
Indian law does not require that the
compensation committee have a charter.
HDFC Bank does not have such a charter.
Companies must have an audit
committee that satisfies the
independence requirements of
Rule 10A-3 under the Exchange
Act and the requirements of
NYSE Corporate Governance
Standard 303A.02. (NYSE
Corporate Governance Standards
303A.06 and 303A.07)
An audit committee is required under
Indian Law. The Audit Committee during the
year was composed of five non-executive
directors, all of whom were independent
The audit committee must have
a written charter that
addresses certain specific
purposes and responsibilities
of the committee, provides for
an annual performance
evaluation of the committee
and sets forth certain minimum
duties and responsibilities.
(NYSE Corporate Governance
Standard 303A.07)
HDFC Bank has a written audit committee
charter that provides for specific
purposes and responsibilities.
Companies must adopt and
disclose corporate governance
guidelines. (NYSE Corporate
Governance Standard 303A.09)
Indian law does not require the adoption
and disclosure of corporate governance
guidelines. However, information with
respect to corporate governance can be
found in our annual report for 2005-2006
under the heading "Corporate Governance".
Companies must adopt and
disclose a code of
As required by SEBI regulations, HDFC Bank has
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95
NYSE rule applicable to
U.S. listed companies
Indian law and HDFC Bank's practice
business
conduct and ethics for
directors, officers and
employees, and promptly
disclose any waivers of the
code for directors or
executive officers. (NYSE
Corporate Governance Standard
303A.10)
adopted a code governing trading in
the company's securities by insiders. In
addition, HDFC Bank has adopted a Code of
Ethics for the Managing Director, CFO and
Senior Management of the company.
Memorandum and Articles of Association
Our main objects are to carry on banking activity and other related activities. Our objects and
purposes can be found in clauses A and B of the Articles.
Under the Articles, a director may not vote, participate in discussions or be counted for purposes
of a quorum with respect to any decision relating to whether we will enter into any contract or
arrangement if the director is directly or indirectly interested in such contract or arrangement.
The Board of Directors may not hold meetings in the absence of a quorum. Pursuant to the Companies
Act, our directors have the power to borrow money for business purposes only with the consent of
the shareholders (with certain limited exceptions).
Sections 172 through 187 of the Articles set forth certain rights and restrictions relating to
dividend distributions. One of these restrictions is that dividends may be approved only at a
general meeting of shareholders, but in no event in an amount greater than the amount recommended
by the Board of Directors.
Subject to the Companies Act, profits of a company are divisible among shareholders in proportion
to the amount of capital paid up on the shares held by them respectively. In the event of
liquidation, surplus will be distributed in proportion to the capital paid up or which ought to
have been paid up on the shares held by shareholders respectively at the time of commencement of
the winding up. The Board of Directors may make calls on shareholders in respect of all moneys
unpaid on the shares held by them and not by the conditions of allotment thereof.
The rights and privileges of any class of shareholders may not be modified without the approval of
three-fourths of the issued shares of that class or the sanction of a special resolution passed at
a separate meeting of the holders of the issued shares of that class.
The annual general meeting shall be called for a time during business hours at our registered
office or at some other place within Mumbai as the Board of Directors may determine. The notice of
the meeting shall specify it as the annual general meeting. The board may also call an
extraordinary meeting, and if there is not a quorum of directors within India, any director or two
shareholders may call such a meeting. The
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96
Board of Directors is required to call an extraordinary
meeting upon the requisition of a set number of shareholders, as set forth in the Companies Act.
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97
PRINCIPAL SHAREHOLDERS
The following table contains information relating to the beneficial ownership of our equity
shares as of March 31, 2006 by:
§
each person or group of affiliated persons known by us to
beneficially own 5.0% or more of our equity shares; and
§
our individual directors and officers
Beneficial ownership is determined in accordance with the rules of the SEC and includes voting and
investment power with respect to equity shares. Unless otherwise indicated, the persons in the
table have sole voting and sole investment control with respect to all equity shares beneficially
owned. All shares issued in India have the same voting rights. We have
not issued different class of securities.
We were founded by HDFC Limited, the leading housing finance company in India. As of March 31,
2006, HDFC Limited, together with its subsidiaries, held an aggregate of 22.0% of our equity
shares. Under the Indian Banking Regulation Act, no person holding equity shares in a banking
company can vote more than 10.0% of the outstanding equity shares.
Percentage of
Total Equity
Number of
Shares
Equity Shares
Outstanding
HDFC group
68,861,000
(1)
22.0
%
Bennett Coleman group
16,192,408
(2)
5.2
%
Directors and executive
officers
*
1)
Includes: 38,860,000 equity shares held directly by HDFC Limited, 30,000,000 equity
shares held by HDFC Investments Limited and 1,000 equity shares held by HDFC Holdings
Limited. HDFC Investments Limited and HDFC Holdings Limited are
controlled by HDFC Limited.
2)
Includes: 8,849,929 equity shares held by Bennett Coleman & Company Limited,
2,486,956 equity shares held by Dharmayug Investments Limited and 4,855,523 equity shares
held by other Bennett Coleman group entities.
(*)
None of our directors or executive officers individually holds 1% or more of our total equity
shares outstanding.
The ADS
are represented by underlying equity shares. As on March 31, 2006, 60,338,247
Indian equity shares are represented by ADSs and
constitute 19.3% of the Bank's capital. In our books only the
Depositary i.e. J.P. Morgan Chase Bank is the shareholder with respect to equity shares underlying ADSs. We are
unable to estimate the number of record holders of our shares in the United
States.
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98
RELATED PARTY TRANSACTIONS
The following is a summary, for the period as stated, of transactions we have engaged in with
our promoter and principal shareholder, HDFC Limited and its subsidiaries and other related
parties, including those in which we or our management have a significant equity interest. Figures
herein reflecting our equity interests exclude shares held by our Employees Welfare Trust, an
independent trust established for the benefit of our employees.
All transactions with HDFC group companies and the other related parties listed below are on terms
that we believe are as favorable to us as those that could be obtained from a non-affiliated third
party in an arm's-length transaction. In addition, our banking license from the RBI stipulates that
we can only transact business with HDFC Limited and its affiliates on an arm's-length basis.
HDFC Securities Ltd ("HSL")
We acquired an equity stake in HSL, which provides brokering services through the internet and
other channels. On September 28, 2005, we increased our stake in HSL from 29.5 % to 55% by paying
Rs. 191.3 million to HDFC Ltd. (An independent professional accounting firm determined the
valuation for acquisition price). Consequently HSL has become our subsidiary since that date. As of
March 31, 2006, the book value of our investment in HSL was Rs. 200.1 million.
HDFC group
companies (including us) own an aggregate of 67.2% of HSL. In fiscal 2006, we paid Rs. 0.2
million for sales assistance provided by HSL and received Rs. 5.1 million as a reimbursement of
expenses incurred for HSL. In fiscal 2006, we earned Rs. 33.8 million
from HSL towards services rendered by us and as rent and maintenance
charges for the area sublet to HSL by us. An amount of Rs. 22.7 million was receivable from HSL as of March 31,
2006.
HDFC Limited
Housing Loans
We participate in the home loan business by selling loans provided by HDFC Limited. Under this
arrangement HDFC Limited approves and disburses the loans, which are booked in the books of HDFC
Limited, and we are paid a sourcing fee. Under the arrangement, HDFC Limited offer us up to 70% of
the fully disbursed home loans sourced under the arrangement through the issue of mortgage-backed
PTCs; the balance is retained by HDFC Limited. We purchase the
mortgage-backed PTCs at the
underlying home loan yields less a fee paid to HDFC Limited for administration and servicing of the
loans. A portion of the home loans also qualifies for our directed lending requirement. We earned
Rs. 239.3 million from HDFC Limited in fiscal 2006 as fees for selling these loans and other
services rendered. An amount of Rs. 29.2 million was receivable from HDFC Limited as of March 31,
2006.
Property
We have facilities located on five properties owned or leased by HDFC Limited. In fiscal 2006, we
paid an aggregate of Rs. 6.8 million as rental fees, maintenance and service charges to HDFC
Limited for use of these properties. We believe that we pay market rates for these properties. As
of March 31, 2006, HDFC Limited held a deposit of Rs. 0.2 million that we have paid to secure these
leased properties.
Capital Payments
During the
year we paid HDFC Ltd. Rs. 191.3 million for the purchase of an additional 25.5% of the
shares of HSL.
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99
HDFC Standard Life Insurance Company Ltd ("HDFC Standard Life")
In fiscal
2006, we contributed Rs. 21.8 million to a defined benefit plan
managed by HDFC Standard Life to cover gratuity of our employees. In the same period, we received fees
and commissions from HDFC Standard Life aggregating Rs. 881.4 million for the sale of insurance
policies and other services to our customers. As of March 31,
2006, commission amounting to Rs. 29.2 million was receivable from HDFC Standard Life.
HDFC Asset Management Company Ltd ("HDFC AMC")
We retained HDFC AMC to invest our funds primarily in debt instruments up to an amount
approved by our Board of Directors. This arrangement was up to June, 2006. In fiscal 2006, we
paid Rs. 3.3 million as rent to HDFC AMC. We have placed a security deposit of Rs. 1.7 million with
HDFC AMC to secure leased property. During fiscal 2006, we received Rs. 234.3 million in fees from
HDFC AMC for distribution of units of mutual funds. The amount of our investment outstanding as of
March 31, 2006 was Rs. 3.4 billion. We paid Rs. 0.7 million to HDFC AMC for professional fees
during fiscal 2006. As of March 31, 2006, commission amounting to Rs
22.8 million was receivable from HDFC AMC.
HDFC Chubb General Insurance Company Ltd ("HDFC Chubb")
We paid Rs. 10.6 million to HDFC Chubb towards insurance premiums in fiscal 2006. A deposit of Rs.
0.1 million was kept with HDFC Chubb as of March 31, 2006. We received fees and commissions from
HDFC Chubb aggregating Rs. 20.3 million for sale of insurance policies to our customers.
Atlas Documentary Facilitators Company Private Ltd ("ADFC")
ADFC specializes in back-office processing. We regularly transact business with ADFC. In fiscal
2006, we paid ADFC Rs. 616.8 million for back-office processing services. We earned Rs. 53.8
million from ADFC as rent for premises leased and towards other
services in fiscal 2006. As of March 31, 2006, we had provided
a security deposit amounting to Rs. 40.0 million to ADFC for the various services provided by ADFC
and an amount of Rs. 72.5 million was payable for such services. As of that date, we retained an
equity investment of Rs. 0.2 million in ADFC, which represents 29.0% of the share capital of ADFC.
Members of our management team as well as other employees own an
aggregate of 45.3% of the equity
shares of ADFC.
HBL Global Private Ltd ("HBL Global")
HBL Global is a subsidiary of ADFC and provides us with direct sales support for certain of our
products. HBL Global was paid a net fee of Rs. 1,917.9 million for the year ended March 31, 2006.
As of March 31, 2006 we had provided a security deposit of Rs. 90.1 million for the services
provided by HBL Global. An amount of Rs. 33.7 million was payable to HBL Global as of that date. As
of March 31, 2006, an amount of Rs. 223.1 million was outstanding as temporary advance paid in
respect of services to be provided by HBL Global. We earned Rs. 12.6 million as rent for premises
occupied by HBL Global during fiscal 2006. We do not presently have any direct investment in HBL
Global.
Flexcel International Private Ltd ("Flexcel")
Flexcel, a
company in which we have invested Rs. 15.3 million, for a 29.5% equity stake, provides
application services to smaller banks. Because our share of total
accumulated losses incurred by Flexcel exceeds the investment value,
we have written off our investment. A loan amount of Rs. 0.5 million was outstanding in our
books as of March 31, 2006. Interest received on the same during the year was Rs. 0.1 million.
During fiscal 2006 we received Rs. 0.05 million as dividend from
Flexcel. The loan bears an interest rate of 9% per annum and the
maximum amount of loan outstanding during fiscal 2006 was Rs. 2.5
million.
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100
Salisbury Investments Private Ltd
We have paid a security deposit of Rs. 35.0 million and in fiscal 2006, we paid rent of Rs. 2.2
million for the residential accommodation of our Managing Director, to Salisbury Investments
Private Ltd, in which the relatives of the Managing Director hold a stake. The value of the
security deposit and rent is based on an independent assessment by a professional property
valuation expert.
Other Strategic Investments
We frequently partner with other HDFC group companies when making strategic investments. We
currently have three strategic investments in which HDFC group companies are co-investors. Without
the prior approval of the RBI, we cannot hold more than a 30% equity stake in another company. The
following is a list of strategic investments made by us and HDFC group companies:
HDFC Bank
HDFC Bank
Total HDFC
Company
Type of Business
Investment
Ownership
Group ownership
(In millions)
Computer Age
Management Services
Private Limited
("CAMS")
Unit capital
accounting and
transfer agency
services
Rs.
6.1
19.0
%
49.0
%
SolutionNET India
Private
Limited
Information
technology
consulting and
services
7.6
19.0
50.0
Softcell
Technologies
Limited
("Softcell")
Business-to-business
software services
Rs.
26.0
12.0
%
26.0
%
We routinely conduct business with some of the companies in which we have made strategic
investments. In fiscal 2006, we paid CAMS Rs. 4.1 million for
mutual fund back office processing services and Softcell Rs. 8.4 million for
providing software-related services to us. During fiscal 2006, we received Rs. 5.7 million from
CAMS and  Rs. 0.04 million from SolutionNET as dividend. During fiscal 2006, we have paid Rs. 72.4
million toward the purchase of fixed assets and Rs. 2.0 million as capital advance to Softcell.
We have entered into normal banking transactions with some of the above parties and we believe all
such transactions to be at arm's length.
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101
TAXATION
Indian Taxation of the ADSs
The following is a summary of the principal Indian tax consequences for non-resident investors of
the ADSs and the equity shares issuable on conversion of the ADSs. The summary is based on the
taxation law and practice in force and is subject to change. Further, it only addresses the tax
consequences for persons who are non-resident as defined in the Indian Income Tax Act, who acquire
ADSs or equity shares (upon conversion) and who hold such ADSs or equity shares (upon conversion)
as capital assets, and does not address the tax consequences which may be relevant to other classes
of non-resident investors, including dealers. The summary assumes that the person continues to
remain a non-resident when income by way of interest, dividends and capital gains is earned.
EACH INVESTOR IS ADVISED TO CONSULT THEIR TAX ADVISOR ABOUT THE PARTICULAR TAX CONSEQUENCES
APPLICABLE ON INVESTMENTS IN THE ADSs.
The following discussion describes the material Indian income tax and stamp duty consequences of
the purchase, ownership and disposal of the ADSs.
This summary is based on the provisions of Section 115AC and other applicable provisions of the
Income Tax Act, 1961 (43 of 1961) (the "Indian Income Tax Act") and The Issue of Foreign Currency
Convertible Bonds and Ordinary Shares (through Depositary Receipt Mechanism) Scheme, 1993
promulgated by the government of India (the "Depositary Receipt Scheme") (together the "Section
115AC Regime"). The offer is in accordance with the 115AC Regime, and non-resident investors of the
ADSs will therefore have the benefit of tax concessions available under the 115AC Regime subject to
the fulfillment of conditions of that section. This summary is not intended to constitute a
complete analysis of the tax consequences under Indian law of the acquisition, ownership and sale
of the ADSs (or shares upon conversion) by non-resident investors. Investors should therefore
consult their tax advisers about the tax consequences of such acquisition, ownership and sale
including, specifically, tax consequences under Indian law, the laws of the jurisdiction of their
residence, any tax treaty between India and their country of residence or the United States, the
country of residence of the overseas depositary bank (the "Depositary"), as applicable and, in
particular, the applicable provisions of the Income Tax Act and the Section 115AC Regime. The
Indian Income Tax Act is amended every year by the Finance Act of the relevant year. Some or all of
the tax consequences of the 115AC Regime may be modified or amended by future amendments to the
Income Tax Act.
Taxation of Distributions
Upon withdrawal of equity shares from the depositary facility, dividends paid to such non-resident
holder are not presently taxable. However, we must pay a "dividend distribution tax" at the rate of
12.5% (plus a surcharge of 10% and an add-on tax at the rate of 2% of the total dividend
distribution tax and surcharge) on the total amount distributed as dividend. In India, dividends
are not taxable in the hands of the recipient. Distribution to non-residents of bonus ADSs or bonus
shares or rights to subscribe for equity shares (for the purposes of this section, "Rights") made
with respect to ADSs or shares are not subject to Indian tax.
Taxation on Acquisition of ADSs or Shares Upon Conversion or in Exchange for ADSs
The acquisition of shares in exchange for ADSs does not constitute a taxable event for Indian
income tax purposes. Such exchange may, however, give rise to stamp duty as described below under
"Stamp Duty".
Taxation of Capital Gains
The transfer between non-resident investors outside India of ADSs falling within the purview of
Section 115AC is not subject to income tax in India on capital gains therefrom. It is unclear
whether capital
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gains derived from the sale of rights by a non-resident investor to another non-resident investor
will be subject to tax liability in India. This would depend on the view taken by Indian tax
authorities with respect to the status of the rights being offered under the ADSs.
Capital gains arising to a non-resident investor on the transfer of the equity shares received upon
conversion of the ADSs (whether in India or outside India to a non-resident investor) will be
subject to income tax under the provisions of the Indian Income Tax Act.
Effective October 1, 2004, any gain realized on the sale of listed equity shares held for more than
12 months to an Indian resident, or to a non-resident investor in India will not be subject to
Indian capital gains tax if the Securities Transaction Tax ("STT") has been paid on the
transaction. The STT will be levied on and collected by a domestic stock exchange on which shares
are sold at the rate of 0.1% from the seller and at the rate of 0.1% from the purchaser on the
total price at which the equity shares are sold.
Any gain realized on the sale of equity shares to an Indian resident whether in India or outside
India or to a non-resident in India on which no STT has been paid, will be subject to Indian
capital gains tax at the rate of 10% plus applicable surcharge on income tax and add-on tax at the
rate of 2% of the sale of shares. For the purpose of computing capital
gains tax on the sale of the equity shares under the Section 115AC Regime, the cost of acquisition
of equity shares received in exchange for ADSs will be determined on the basis of the prevailing
price of the equity shares on The Stock Exchange, Mumbai or the National Stock Exchange as of the
date on which the depositary gives notice to its custodian for the delivery of such equity shares
upon redemption of the ADSs, while the cost of acquisition of shares directly converted from ADSs
will be determined on the basis of the price prevailing on The Stock Exchange, Mumbai or the
National Stock Exchange on the date of conversion into shares. A non-resident holder's holding
period (for purpose of determining the applicable Indian capital gains tax rate) in respect of
equity shares received in exchange for ADSs commences on the date of the advice of withdrawal of
such equity shares by the relevant Depositary to its custodian.
Capital gain realized in respect of equity shares held (calculated in the manner set forth in the
prior paragraph) for 12 months or less (short-term gain) on which STT is paid in the manner and
rates set out above, is subject to tax at the rate of 10% plus applicable surcharge on income tax
and an add-on tax at the rate of 2%. In the event that no STT is paid, short-term gain is subject
to tax at variable rates with a maximum rate of 40% plus applicable surcharge on income tax and
add-on tax at the rate of 2%. The actual rate of tax on short-term gains depends on a number of
factors, including the legal status of the non-resident holder and the type of income chargeable in
India. The provisions of the Agreement for Avoidance of Double Taxation entered into by the
government of India with the country of residence of the non-resident investor will be applicable
to the extent they are more beneficial to the non-resident investor.
Tax Deduction at Source
Tax on long-term and short-term capital gains is to be deducted at source by the person paying for
equity shares, in accordance with the relevant provisions of the Indian Income Tax Act.
Capital Losses
Neither Section 115AC nor the Depositary Receipt Scheme deals with capital losses arising on a
transfer of equity shares in India. In general terms, losses arising from a transfer of a capital
asset in India can only be set off against capital gains on transfer of another capital asset.
Furthermore, a long-term capital loss can be set off only against a long-term capital gain. To the
extent that losses are not absorbed in the year of transfer, they may be carried forward for a
period of eight assessment years immediately succeeding the assessment year for which the loss was
first determined by the assessing authority and may be set off against the capital gains assessable
for such subsequent assessment years. In order to set off capital losses as above, the non-resident
investor would be required to file appropriate and timely tax returns in India and undergo the
customary assessment procedures. However, long-term capital loss on sale of equity shares
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being chargeable to STT will not be allowed to set off or carried forward for set off against any
capital gains.
Tax Treaties
Dividend income is currently not subject to tax in India in the hands of the holder of the equity
shares. If any equity shares are held by a non-resident investor following withdrawal thereof from
the depositary facility under the Deposit Agreement, the double taxation treaty, if any, entered
into by India with the country of residence of such non-resident investor will be applicable to
taxation with respect to any capital gain arising from transfer of such equity shares or the ADSs.
However, during the period of fiduciary ownership of equity shares in the hands of the Depositary,
the provisions of the Double Taxation Avoidance Agreement entered into by the government of India
with the United States will be applicable in the matter of taxation of capital gains, if any, on
ADSs.
Stamp Duty
There is no stamp duty on the sale or transfer of ADSs outside India.
The transfer of ordinary shares in physical form would be subject to Indian stamp duty at the rate
of 0.25% of the market value of the ordinary shares on the trade date, and such stamp duty
customarily is borne by the transferee, i.e. the purchaser. In order to register a transfer of
equity shares in physical form, it is necessary to present a stamped deed of transfer. However,
since our equity shares are compulsorily deliverable in dematerialized form (except for trades of
up to 500 equity shares which may be delivered in physical form) there would be no stamp duty
payable in India on transfer of these equity shares in dematerialized form.
Other Taxes
At present, there is no wealth tax, gift tax or inheritance taxes, which may apply to the ADSs or
the underlying shares.
Service Tax
Brokerage or commissions paid to stockbrokers in connection with the sale or purchase of shares
listed on a recognized stock exchange in India are subject to a service tax of 12% (plus add-on tax
at the rate of 2%) ad valorem. The stockbroker is responsible for collecting the service tax and
paying it to the relevant authority.
United States Tax
The following summary describes the material United States federal income tax consequences relating
to an investment in our equity shares or ADSs in this offering as of the date hereof. This summary
is based on the Internal Revenue Code of 1986, as amended, its legislative history, existing final,
temporary and proposed Treasury Regulations, rulings and judicial decisions, all as currently in
effect and all of which are subject to prospective and retroactive rulings and changes. We will not
seek a ruling from the Internal Revenue Service with regard to the United States federal income tax
treatment relating to investment in our equity shares or ADSs and, therefore, there can be no
assurance that the IRS will agree with the conclusions set forth below.
This summary does not purport to address all United States federal income tax consequences that may
be relevant to a particular investor and you are urged to consult your own tax advisor regarding
your specific tax situation. The summary applies only to holders who hold equity shares or ADSs as
"capital assets"
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(generally, property held for investment) under the United States Internal Revenue Code, and does
not address the tax consequences that may be relevant to investors in special tax situations
including, for example:
§
insurance companies;
§
regulated investment companies and real estate investment trusts;
§
tax-exempt organizations;
§
broker-dealers;
§
traders in securities that elect to mark-to-market;
§
banks or other financial institutions;
§
investors whose functional currency is not the United States dollar;
§
United States expatriates;
§
investors that hold our equity shares or ADSs as part of a hedge, straddle or conversion transaction;
§
holders that purchase or otherwise acquire equity shares or ADSs other than through this offering; or
§
holders that own, directly, indirectly or constructively 10.0% or more of our total combined voting stock.
Further, this summary does not address the alternative minimum tax consequences of an investment in
equity shares or ADSs or the indirect consequences to holders of equity interests in entities that
own our equity shares or ADSs. In addition, this summary does not address the state, local and
foreign tax consequences of an investment in our equity shares or ADSs.
You should consult your own tax advisor regarding the United States federal, state, local and
foreign and other tax consequences of purchasing, owning and disposing of our equity shares or ADSs
in your particular circumstances.
Taxation of U.S. Holders
You are a "U.S. Holder" if you are a beneficial owner of equity shares or ADSs and you are for
United States federal income tax purposes:
§
a citizen or resident of the United States;
§
a corporation, or any other entity taxable as a corporation,
created or organized in or under the laws of the United States or
any state thereof, including the District of Columbia;
§
an estate the income of which is subject to United States federal
income tax regardless of its source; or
§
a trust if a court within the United States is able to exercise
primary supervision over its administration and one or more United
States persons have the authority to control all substantial
decisions of the trust, or if the trust has made a valid election
to be treated as a United States person.
If a partnership holds equity shares or ADSs, the tax treatment of a partner will generally depend
upon the status of the partner and upon the activities of the partnership. Partners of partnerships
holding our equity shares or ADSs should consult their own tax advisors.
A "Non-U.S. Holder" is a beneficial owner of equity shares or ADSs that is not a U.S. Holder.
For United States federal income tax purposes, a U.S. Holder of an ADS will generally be treated as
the owner of the equity shares represented by the ADS. Accordingly, no gain or loss will be
recognized upon the exchange of an ADS for equity shares. A U.S. Holder's tax basis in the equity
shares will be the same as the tax basis in the ADS surrendered therefore, and the holding period
in the equity shares will include the period during which the holder held the surrendered ADS.
However, the United States Treasury has expressed concerns that parties to whom depositary shares
are pre-released may be taking actions that are inconsistent with the claiming of foreign tax
credits by the holders of ADSs. Accordingly, the analysis of the creditability of Indian taxes paid
with respect to the ADSs could be affected by future actions that may be taken by the United States
Treasury.
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Distributions on Equity Shares or ADSs
Cash distributions made by us to a U.S. Holder with respect to equity shares or ADSs (including
amounts withheld in respect of any Indian withholding taxes) generally will be taxable to such U.S.
Holder as ordinary dividend income when such U.S. Holder receives the distribution, actually or
constructively, to the extent paid out of our current or accumulated earnings and profits (as
determined for United States federal income tax purposes). If these dividends constitute qualified
dividend income ("QDI"), individual U.S. Holders of our equity shares or ADSs will generally pay
tax on such dividends received before 2011 at a maximum rate of 15%, provided certain holding
period requirements and other conditions are satisfied. Assuming we are not a passive foreign
investment company (as discussed below), or foreign investment company, dividends paid by us will
be QDI if we are a qualified foreign corporation ("QFC") at the time the dividends are paid. We
believe that we are currently, and will continue to be, a QFC so as to allow all dividends paid by
us to be QDI for United States federal income tax purposes. Distributions in excess of our current
or accumulated earnings and profits will be treated first as a non-taxable return of capital
reducing such U.S. Holder's tax basis in the equity shares or ADSs. Any distribution in excess of
such tax basis will be treated as capital gain and will be either long-term or short-term capital
gain depending upon whether the U.S. Holder held the equity shares or ADSs for more than one year.
Dividends paid by us generally will not be eligible for the dividends-received deduction available
to certain United States corporate shareholders.
Subject to certain limitations, a U.S. Holder may be entitled to a credit or deduction against its
U.S. federal income taxes for the amount of any Indian taxes that are withheld from dividend
distributions made to such U.S. Holder. The decision to claim either a credit or deduction must be
made annually, and will apply to all foreign taxes paid by the U.S. Holder to any foreign country
or U.S. possession with respect to the applicable tax year. The limitation on foreign taxes
eligible for credit is calculated separately with respect to specific classes of income. For tax
years beginning before January 1, 2007, income received with respect to the equity shares or ADSs
will be treated as foreign source income and generally will constitute "passive income" or, in the
case of certain holders, "financial services income" for United States foreign tax credit
limitation purposes, and for tax years beginning after December 31, 2006, will be treated as
"passive category income" or "general category income" for United States foreign tax credit
limitation purposes. The rules regarding the availability of foreign tax credits are complex and
U.S. Holders may be subject to various limitations on the amount of foreign tax credits that are
available. We therefore urge you to consult your own tax advisor regarding the availability of the
foreign tax credit under your particular circumstances.
The amount of any cash distribution paid in Indian rupees will equal the U.S. dollar value of the
distribution, calculated by reference to the exchange rate in effect at the time the distribution
is received by the depositary (in the case of ADSs) or by the U.S. Holder (in the case of equity
shares held directly by such U.S. Holder), regardless of whether the payment is in fact converted
to U.S. dollars at that time.
Generally, a U.S. Holder should not recognize any foreign currency gain or loss if such Indian
rupees are converted into U.S. dollars on the date received. If the Indian rupees are not converted
into U.S. dollars on the date of receipt, however, gain or loss may be recognized upon a subsequent
sale or other disposition of the Indian rupees. Such foreign currency gain or loss, if any, will be
United States source ordinary income or loss.
Sale or Exchange of Equity Shares or ADSs
A U.S. Holder will generally recognize capital gain or loss upon the sale, exchange or other
disposition of the equity shares or ADSs measured by the difference between the U.S. dollar value
of the amount received and the U.S. Holder's tax basis (determined in U.S. dollars) in the equity
shares or ADSs. Any gain or loss will be long-term capital gain or loss if the equity shares or
ADSs have been held for more than one year and will generally be United States source gain or loss.
Your ability to deduct capital losses is subject to limitations. Under certain circumstances
described under "Indian Tax — Taxation on Sale of Equity
Shares or ADSs", you may be subject to
Indian tax upon the disposition of equity shares or ADSs. In such circumstances and subject to
applicable limitations (and the relief provided by an applicable income tax
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treaty), you may be
able to credit the Indian tax against your United States federal income tax liability. You should
consult your tax advisor regarding the availability of the foreign tax credit under your particular
circumstances.
For cash-basis U.S. Holders who receive foreign currency in connection with a sale or other taxable
disposition of equity shares or ADSs, the amount realized will be based upon the United States
dollar value of the foreign currency received with respect to such equity shares or ADSs as
determined on the settlement date of such sale or other taxable disposition.
Accrual-basis U.S. Holders may elect the same treatment required of cash-basis taxpayers with
respect to a sale or other taxable disposition of equity shares or ADSs, provided that the election
is applied consistently from year to year. Such election cannot be changed without the consent of
the United States Internal Revenue Service. Accrual-basis U.S. Holders that do not elect to be
treated as cash-basis taxpayers (pursuant to the Treasury Regulations applicable to foreign
currency transactions) for this purpose may have a foreign currency gain or loss for United States
federal income tax purposes because of differences between the United States dollar value of the
foreign currency received prevailing on the date of such sale or other taxable disposition and the
value prevailing on the date of payment. Any such currency gain or loss will generally be treated
as ordinary income or loss that is United States source, in addition to the gain or loss, if any,
recognized on the sale or other taxable disposition of equity shares or ADSs.
Passive Foreign Investment Company Rules
U.S. Holders generally will be subject to a special, adverse tax regime that would differ in
certain respects from the tax treatment described above if we are, or were to become, a passive
foreign investment company ("PFIC") for United States federal income tax purposes. Although the
determination of whether a corporation is a PFIC is made annually and thus may be subject to
change, we do not believe that we are, nor do we expect to become, a PFIC for United States federal
income tax purposes. However, the matter is not free from doubt. We urge you to consult your own
tax advisor regarding the adverse tax consequences of owning the equity shares or ADSs of a PFIC
and making certain elections designed to lessen those adverse consequences.
Taxation of Non-U.S. Holders
Distributions on Equity Shares or ADSs
Non-U.S. Holders generally will not be subject to United States federal income or withholding tax
on dividends received from us with respect to equity shares or ADSs, unless such income is
considered effectively connected with the Non-U.S. Holder's conduct of a United States trade or
business (and, if required by an applicable income tax treaty, the income is attributable to a permanent
establishment maintained in the United States).
Sale or Exchange of Equity Shares or ADSs
Non-U.S. Holders generally will not be subject to United States federal income tax on any gain
realized upon the sale, exchange or other disposition of equity shares or ADSs unless:
•
such gain is considered effectively connected with the Non-U.S.
Holder's conduct of a United States trade or business (and, if
required by an applicable income tax treaty, the income is
attributable to a permanent establishment maintained in the United
States); or
•
if such Non-U.S. Holder is an individual that is present in the
United States for 183 days or more during the taxable year of the
disposition and certain other conditions are met.
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In addition, if you are a corporate Non-U.S. Holder, any effectively connected dividend income or
gain (subject to certain adjustments) may be subject to an additional branch profits tax at a rate
of 30% (or such lower rate as may be specified by an applicable income tax treaty).
Backup Withholding and Information Reporting
In general, dividends on equity shares or ADSs, and payments of the proceeds of a sale, exchange or
other disposition of equity shares or ADSs, paid to a U.S. Holder within the United States or
through certain United States-related financial intermediaries are subject to information reporting
and may be subject to backup withholding at a rate currently equal to 28% unless the holder:
•
is a corporation or other exempt recipient; or
•
provides an accurate taxpayer identification number and
certifies that no loss of exemption from backup withholding
has occurred.
Non-U.S. Holders generally are not subject to information reporting or backup withholding. However,
such holders may be required to provide a certification to establish its non-U.S. status in
connection with payments received within the United States or through certain U.S.-related
financial intermediaries.
You generally will be allowed a credit of the amount of any backup withholding against your United
States federal income tax liability or you may obtain a refund of any amounts withheld under the
backup withholding rules that exceed your income tax liability by filing a refund claim with the
United States Internal Revenue Service.
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SUPERVISION AND REGULATION
The main legislation governing commercial banks in India is the Banking Regulation Act, 1949.
Other important legislation includes the Reserve Bank of India Act, the Negotiable Instruments Act,
the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act
("SARFESI") and the Banker's Books Evidence Act. Additionally, the RBI, from time to time, issues
guidelines to be followed by the banks, under the various provisions of the Banking Regulation Act.
RBI Regulations
The RBI is the central banking and monetary authority in India. Commercial banks in India are
required under the Banking Regulation Act to obtain a license from the RBI to carry on a banking
business in India. Before granting the license, the RBI must be satisfied that specific conditions
are complied with, including that (a) the bank has the ability to pay its present and future
depositors in full as their claims accrue; (b) the affairs of the bank will not be or are not
likely to be conducted in a manner detrimental to the interests of present or future depositors;
(c) the bank has adequate capital and earnings prospects; and (d) the public interest will be
served if the license is granted to the bank. The RBI can cancel the license if the bank fails to
meet the above conditions or if the bank ceases to carry on banking operations in India.
As a licensed banking company, we are regulated and supervised by the RBI. The RBI requires us to
furnish statements and information relating to our business. It has issued guidelines for
commercial banks on recognition of income, classification of assets, maintenance of capital
adequacy and provisioning for non-performing assets. The RBI has set up a Board for Financial
Supervision, under the chairmanship of the Governor of the RBI. This Board is assisted by the
Department of Financial Supervision of the RBI in supervising commercial banks and financial
institutions. The appointment of the auditors of the banks is subject to the approval of the RBI.
The RBI can direct a special audit in the interest of the depositors or in the public interest.
Regulations Relating to the Opening of Branches
The opening of new branches and shifting of existing branches of banks is governed by the
provisions of Section 23 of the Banking Regulation Act, 1949. In terms of these provisions, banks
cannot, without the prior approval of the Reserve Bank of India (RBI), open a new place of business
in India or abroad or change, otherwise than within the same city, town or village, the location of
the existing place of business. Permission is granted based on factors such as the financial
condition and history of the company, its management, adequacy of capital and earning prospects and
the public interest. The RBI may cancel the license for violations of the conditions under which it
is granted. Under the banking license granted to us by the RBI, we are required to have at least
25% of our branches (excluding extension counters) located in rural/semi-urban areas. A rural area
is defined to have a population of less than 10,000. A semi-urban area is defined to have a
population of greater than 10,000 but less than 1,00,000. These population figures relate to the
latest census conducted by the Government of India at the time the branch is opened.
The former system of granting authorization for opening individual branches from time to time has
been replaced by a system of giving aggregated approvals, on an annual basis, through a
consultative and interactive process. Banks will discuss their medium-term expansion strategies and
plans with the RBI. The medium-term framework and the specific proposals would cover the opening,
closing and shifting of all categories of branches including the ATMs. Normally, the
authorizations/ approvals, given on an annual basis would be valid for one year, from the date of
communication.
With a need to induce enhanced competition in the banking sector at various locations, the RBI, in
its new framework, has identified the under-banked districts in various states. The RBI has
provided this list in order to facilitate banks to identify centers in the under-banked districts.
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Capital Adequacy Requirements
The RBI has promulgated minimum capital adequacy standards for banks based on the guidelines of the
Basel Committee on Banking Regulations and Supervisory Practices. Under these guidelines, we are
required to maintain a minimum ratio of capital to risk adjusted assets and off-balance sheet items
of 9.0%, at least half of which must be Tier 1 capital.
The capital funds of a bank are classified into Tier 1 and Tier 2 capital. Tier 1 capital, the core
capital, provides the most permanent and readily available support against unexpected losses. It
comprises paid-up capital and reserves consisting of any statutory reserves, free reserves and
capital reserve as defined in the Indian Income Tax Act, as reduced by items primarily comprising
equity investments in subsidiaries, intangible assets, deferred tax assets, gaps in provisioning
and losses in the current period and those brought forward from the previous period. Innovative
Perpetual Debt Instruments (IPDI) and Perpetual non-cumulative Preference shares have recently been
permitted by RBI for inclusion as Tier 1 capital.
Tier 2 capital consists of undisclosed reserves, revaluation reserves (at a discount of 55%),
general provisions and loss reserves (allowed up to a maximum of 1.25% of weighted risk assets),
investment fluctuation reserve, hybrid debt capital instruments (which combine features of both
equity and debt securities), cumulative perpetual preference shares (which should be fully paid
up and should not contain clauses that permit redemption by the holder) and subordinated debt with
an initial maturity of not less than five years. Debt capital instruments (upper Tier 2 capital)
and redeemable cumulative preference shares have recently been permitted by RBI for inclusion as
Tier 2 capital. Any subordinated debt is subject to progressive discounts each year for
inclusion in Tier 2 capital and total subordinated debt considered Tier 2 capital cannot exceed 50%
of Tier 1 capital.
Recently, RBI has issued detailed guidelines for securitization of standard assets, whereby credit
enhancements (comprising first loss and second loss facilities) given by an originator are required
to be deducted from its capital funds. The deduction from Tier 1 capital shall be capped at the
amount of capital that the bank would have been required to hold for the full value of the assets,
had they not been securitized. Securities issued by special purpose vehicles and
devolved / held by banks in excess of 10 per cent of the original amount of issue, including
secondary market purchases, are also required to be deducted from capital funds.
Risk adjusted assets and off-balance sheet items considered for determining the capital adequacy
ratio are the risk weighted total of certain funded and non-funded exposures. Degrees of credit
risk expressed as percentage weighting have been assigned to various balance sheet asset items and
conversion factors to off-balance sheet items. The value of each item is multiplied by the relevant
weight or conversion factor to produce risk-adjusted values of assets and off-balance-sheet items.
Financial guarantees are treated as similar to funded exposure and are subject to similar risk
weighting. The credit conversion factor for certain off-balance sheet items such as performance
bonds, bid bonds and standby letters of credit related to particular transactions is 50% while that
for short-term self liquidating trade-related contingencies such as documentary credits
collateralized by the underlying shipments is 20%. The risk weights have been increased by RBI in
the recent past in respect of certain items such as exposure to capital markets (125%), loans to
commercial real estate (125%), investment in mortgaged backed securities and other securitized
exposures to commercial real estate (150%), investment in venture capital funds (150%), consumer
credit including personal loans and credit cards (125%) and
investment in mortgage-backed
securities of residential assets of housing finance companies satisfying certain conditions (75%).
The aggregate risk weighted assets are taken into account for determining the capital adequacy
ratio. Banks are required to maintain capital charge for market risks on the trading books on the
lines of standardized duration method prescribed under the 1996 Amendment to the Capital Accord
issued by the Basel Committee on Banking Supervision.
The trading book for the purpose of these guidelines will include:
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§
securities included under the HFT category;
§
securities included under the AFS category;
§
open positions in bullion;
§
open foreign exchange position limits;
§
trading positions in derivatives; and
§
derivatives entered into for hedging trading book exposures.
The RBI advised banks in its annual policy statement for 2004-2005 that banks should begin an
in-depth examination of the options that will be available under Basel II, draw a road map for
migration to Basel II and review the progress made thereof. The RBI has also issued draft
guidelines in February 2005, for implementation of the new capital adequacy framework. In order to
maintain consistency and harmony with international standards, banks have been advised to adopt the
Standardized Approach for credit risk and Basic Indicator Approach for operational risk with effect
from March 31, 2007. The Reserve Bank may consider allowing some banks to migrate to Internal
Rating Based (IRB) approach after developing adequate skills both in banks and at supervisory
levels.
Loan Loss Provisions and Non-Performing Assets
The RBI has issued formal guidelines on recognition of income, classification of assets,
provisioning against assets and valuation of investments applicable to banks. These guidelines are
applied for the calculation of non-performing assets under Indian GAAP. The discussion of asset
quality in this document is generally under U.S. GAAP and the U.S. GAAP standards applied are set
forth in "Selected Statistical Information".
The principal features of these RBI guidelines, which have been implemented with respect to our
loans, debentures, lease assets, bills and other credit substitutes, are set forth below.
Non-Performing Assets
A non-performing asset is an asset in respect of which any amount of interest or principal has
remained past due for more than one quarter, or in respect of which we believe that we will
otherwise not be able to collect such interest or principal.
Asset Classification
Assets are classified as described below:
§
Standard Assets.
Assets that do not have any problems or do not carry more than the normal risk attached
to the business
§
Sub-Standard Assets.
Assets that are non-performing assets for a period not exceeding 12 months
§
Doubtful Assets.
Assets that are non-performing assets for 12 months or more and have not been written
off, either wholly or partially
§
Loss Assets.
Assets that are considered uncollectible and identified as a loss by us, the RBI or our
external auditors.
Renegotiated or rescheduled loans must have no past due amounts for one year after renegotiation or
rescheduling for the loan to be upgraded.
Provisioning and Write-Offs
Provisions are based on guidelines specific to the classification of the assets. The following
guidelines apply to the various asset classifications:
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§
Standard Assets
. The RBI increased the general provisioning
requirement for standard advances from 0.25% to 0.40% in November
2005. Banks' direct advances to agricultural and SME sectors have
been exempted from the additional provisioning requirement. This
is up to March 2006.
§
Sub-Standard Assets
. A general provision of 10% on the total
outstanding is required without any allowance for ECGC guarantee
cover and securities available. The unsecured exposures, which are
identified as sub-standard, would attract an additional provision
of 10% i.e. a total of 20% on the outstanding balance.
§
Doubtful Assets
. A 100% specific provision is required to be taken
against the unsecured portion of the doubtful asset and charged
against income. The value assigned to the collateral securing a
loan is the amount reflected on the borrower's books or the
realizable value determined by third-party appraisers. In cases
where there is a secured portion of the asset, depending upon the
period for which the asset remains doubtful, an additional 20% to
50% provision of the loan outstanding is required to be made.
While the provisions as indicated above are mandatory, a higher provision in a loan account would
be required if the auditors considered it necessary.
Recently, the general provisioning required for personal loans, loans and advances qualifying as
capital market exposures, residential housing loans beyond Rs. 2 million and commercial real estate
loans has been increased to 1.0% from the level of 0.40%. Also, provisions which are not made in
respect of specific non-performing assets or are made in excess of that required for standard
assets have been defined as floating provisions. The RBI has issued guidelines for creation and
utilization of the floating provisions. These provisions can be utilized only for contingencies
under extraordinary circumstances, as laid down by the Board of Directors, for making specific
provisions in impaired accounts after obtaining the board's approval and with the prior permission
of the RBI. Banks may also make specific provisions for advances higher than that required under
the current regulations, provided these are approved by the Board of Directors and consistently
adopted from year to year.
Act Relating to Recovery of Non-Performing Assets
As a part of the financial sector reforms, the government of India promulgated SARFESI in 2002.
SARFESI provides banks and other lenders increased powers in the recovery of the collateral
underlying non-performing assets.
Guidelines on Purchase/Sale of Non-Performing Assets
In order to increase the options available to banks for resolving their non- performing assets and
to develop a healthy secondary market for non-performing assets, where securitization companies and
reconstruction companies are not involved, the RBI has issued detailed guidelines in July 2005 in
respect of procedures for purchase and sale of non-performing assets. The guidelines set forth
prudential norms that need to be complied with, in respect of valuation and pricing, asset
classification and provisioning, accounting of recoveries, norms on capital adequacy, exposure
norms and disclosure requirements.
Guidelines on Securitization of Standard Assets
The RBI has issued guidelines in February 2006 on securitization of standard assets. The
regulatory framework provided in the guidelines, covers securitization of standard assets. The
guideline lists criteria for isolation of the assets sold as 'true sale' for enabling the
transferred assets to be removed from the balance sheet of the seller in a securitization
structure. The guideline also set forth other regulatory norms relating to capital adequacy,
valuation, profit/loss on sale of assets, income recognition and provisioning as applicable to
originators and service providers like credit enhancers, liquidity support providers as well as
investors as also the accounting treatment for securitization transactions and disclosure norms
that are to be complied with. Some of these regulatory norms are given below:
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§
Credit enhancements (comprising first loss and second loss facilities) given by an
originator are required to be deducted from its capital funds. The deduction from Tier 1
capital shall be capped at the amount of capital that the bank would have been required to
hold for the full value of the assets, had they not been securitized.
§
Securities issued by special purpose vehicles and devolved / held by banks in excess of
10 per cent of the original amount of issue, including secondary market purchases, are
also required to be deducted from capital funds.
§
Banks can sell assets to special purpose vehicles (SPVs) only on cash basis and the
sale consideration should be received not later than the transfer of the asset to the SPV.
Any profit or premium arising on account of sale should be amortised over the life
of the securities issued or to be issued by the SPV.
Loss on sale needs to be accounted in the period in which the sale is effected. The securities
issued by the SPV shall not have any put options under the true sale criteria.
Regulations Relating to Making Loans
The provisions of the Banking Regulation Act, 1949 govern making loans by banks in India. The RBI
issues directions covering the loan activities of banks. Some of the more important guidelines
include norms for bank lending to non-bank financial companies, guidelines on Banks benchmark
prime-lending rate (PLR), norms for loans against shares etc.
Directed Lending
Priority Sector Lending
The RBI has established guidelines requiring banks to lend a minimum of 40% of their net bank
credit (i.e. total domestic loans less marketable debt instruments and exemptions permitted by the
RBI from time to time) to specified sectors called priority sectors. Priority sectors include
small-scale industries, agricultural and agriculture-based sectors, food, housing, small business
enterprises and certain other priority sectors deemed "weaker" by the RBI.
§
The RBI also has set forth the minimum percentage of net bank credit that banks must direct
to specific priority sectors. The minimum percentage of net bank credit that banks must direct
to the agriculture sector is 18% and to weaker sectors is 10%.
Any shortfall in the amount is required to be lent to the priority sectors may be required to be
deposited with developmental banks such as the National Bank for Agriculture and Rural Development
and the Small Industries Development Bank of India.
With a view to rationalizing the banks' investments under priority sector lending and encouraging
banks to increasingly lend directly to the farmers/other priority sector borrowers, the RBI has
stipulated that the investments by banks in specified institutions shall not be eligible for
classification under priority sector lending. However this would be implemented in a phased manner
effective April 1, 2005.
Export Credit
The RBI also requires us to make loans to exporters at concessional rates of interest. This enables
exporters to have access to an internationally competitive financing option. Pursuant to existing
guidelines, 12% of our net bank credit is required to be in the form of export credit. We provide
export credit for pre-shipment and post-shipment requirements of exporter borrowers in rupees and
foreign currencies.
Credit Exposure Limits
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As a measure aimed at better risk management and avoidance of concentration of credit risk, the RBI
has prescribed credit exposure limits for banks in respect of their lending to individual borrowers
and borrower groups.
The RBI limits exposure to individual borrowers to not more than 15% of the capital funds of the
bank and limits exposure to a borrower group to not more than 40% of the capital funds of the bank.
In the case of infrastructure projects, such as power, telecommunications, road and port projects,
an additional exposure of up to 5% of capital funds is allowed in respect of individual borrowers
and up to 10 % in respect of group borrowers. Banks may, in exceptional circumstances, with the
approval of their boards of directors, consider enhancement of exposure to a borrower by further 5%
of capital funds. Banks would need to make appropriate disclosures in their annual financial
statements in respect of exposures where the banks had exceeded the prudential exposure limits
during the year.
Exposure is the aggregate of:
§
all approved fund-based limits or outstanding (whichever are higher);
§
approved non-fund-based limits, underwriting and similar commitments or outstanding, whichever is higher; and
§
foreign exchange and derivative contracts at their replacement cost value.
Capital funds for determining the exposure ceilings comprise both Tier 1 and Tier 2 capital.
To ensure that exposures are evenly spread, the RBI requires banks to fix internal limits of
exposure to specific sectors. These limits are subject to periodic review by the banks. We have
fixed a ceiling of 12% on our exposure to any one industry and monitor our exposures accordingly.
Regulation Relating to Country Risk Management
The RBI has issued detailed guidelines on country risk management that cover banks' exposures to
those countries to which they have a net funded exposure of 1% of their total assets as of March 31
of the fiscal year. Banks are required to address the issues of identifying, measuring, monitoring
and controlling country exposure risks. Provisions are required to be maintained by banks on these
exposures on a graded scale ranging from 0.25% to 100% relating to the level of risk in respect of
such countries.
Regulation Relating to Capital Markets Exposure
The RBI has issued guidelines on financing by banks of equities and investments in shares. These
guidelines place a ceiling on the overall exposure of a bank to the capital markets. The following
exposures are subject to the ceiling:
§
Direct investment by a bank in equity shares, convertible bonds and debentures and
units of equity-oriented mutual funds.
§
Advances against shares to individuals for investments in equity shares (including
initial public offerings), bonds and debentures, units of equity-oriented mutual funds and
similar securities.
§
Secured and unsecured advances to stockbrokers and guarantees issued on behalf of
stockbrokers and market makers.
Exposures subject to the ceiling will not include collateral consisting of equity shares, bonds and
debentures pledged to a bank by a corporate customer, other than Non-Banking Financial Companies
(NBFC), to secure a loan for working capital or other productive purposes which do not involve
stock
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broking or investment in capital markets. Advances made by banks to individuals for personal
purposes like education, housing, consumption etc. will also be outside this ceiling.
Regulations Relating to Investments
Exposure Limits
Credit exposure limits specified by the RBI in respect of a bank's lending to individual borrowers
and borrower groups apply in respect of non-convertible debt instruments. Within the overall
capital market exposure ceiling a Bank's investments in equity securities, convertible bonds and
debentures and units of equity oriented mutual funds should not exceed 20% of its net worth. Banks'
aggregate investment in bonds eligible for Tier 2 capital status issued by other banks/financial
institutions are restricted up to 10% of the investing bank's capital funds (Tier 1 plus Tier 2
capital). Investments in the instruments issued by banks/financial institutions that are eligible
for capital status will attract 100% risk weight for credit risk for capital adequacy purposes.
In order to contain the risks arising out of investment by banks in non-statutory liquidity ratio
("non-SLR") securities, and in particular the risks arising out of investment in bonds through
private placement, the RBI has issued detailed guidelines. Banks have been advised to restrict
their new investments in unlisted securities to 10% of their total non-SLR investments as of March
31 of the previous year. Banks are permitted to invest in unlisted non-SLR securities within this
limit, provided that such securities comply with prescribed disclosure requirements for listed
companies. Investment in security receipts issued by securitization companies/reconstruction
companies registered with the RBI, and in asset backed securities/mortgage backed securities
carrying the minimum investment grade, are excluded from this limit. The guidelines do not cover
investments in venture capital funds, commercial paper, certificates of deposit and mutual fund
schemes where any part of the corpus can be invested in equity.
Non-Performing Investments
The RBI has defined non-performing investments as those where the principal/interest is unpaid for
more than 90 days (until March 31, 2004, it was 180 days), including preference shares where the
fixed dividend is not paid. In the event of the non-availability of the latest balance sheet of a
company in which a bank has investment in equity shares, those equity shares would also be
classified as non-performing investments.
Restrictions on Investments in a Single Company
No bank may, without prior RBI approval, may hold shares in any company exceeding 30% of the paid
up share capital of that company or 30% of its own paid up share capital and reserves, whichever is
less.
Prohibition on Short Selling
The RBI does not permit short selling of securities by banks, except intra-day short selling
subject to stipulated conditions.
Valuation of Investments
The RBI has issued guidelines for the valuation of investments. These guidelines require banks to
classify their entire portfolio of approved securities under three categories: "held for trading",
"available for sale" and "held to maturity". However, for disclosure and valuation purpose, the
investments are classified under six groups (hereafter called "groups") – government securities,
other approved securities, shares, debentures and bonds, investments in subsidiaries and joint
ventures and other investments.
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There are guidelines for the quantum and nature of investments that can be made in the held to
maturity category. Securities in the "held to maturity" category would have to be valued at cost
and any premium paid over face value would be amortized over the period of maturity of the
instrument. Investment under held for trading category cannot be held for more than 90 days.
Investments in the available for sale and held for trading categories are required to be marked to
market based on market quotes or on the basis of the yield curve provided by the Fixed Income Money
Market Dealers Association of India and Primary Dealers Association of India. Any net loss on the
revaluation of investments of each group in the "held for trading" and "available for sale"
category would have to be recognized in the income account. Net gain on revaluation of investments
shall not be recognized in the income account. Banks would be able to shift investments from one
category to another only with the approval of the board of directors/committee thereof.
With a view to building up of adequate reserves to guard against any possible reversal of interest
rate environment in future due to unexpected developments, banks were advised by the RBI in January
2002, to build up Investment Fluctuation Reserve (IFR) of a minimum five per cent of the investment
portfolio within a period of five years. IFR is computed with reference to investments in two
categories, viz., "held for trading" and "available for sale". RBI has recently advised the banks
which have maintained capital of at least nine per cent of the risk weighted assets for both credit
risk and market risks for specified items as on March 31, 2006 would be permitted to treat the
entire balance in the IFR as Tier 1 capital (instead of Tier 2 capital as hitherto) and for this
purpose, Banks may transfer the balance therein to specified accounts.
Regulations Relating to Deposits
The RBI has permitted banks to independently determine rates of interest offered on fixed deposits.
However, no bank is permitted to pay interest on current account deposits. Further, banks can pay
interest of up to 3.5% per annum on savings deposits. In respect of savings and time deposits
accepted from employees, we are permitted by the RBI to pay an additional interest of 1% over the
interest payable on deposits from the public.
Domestic time deposits can have a minimum maturity of seven days. Time deposits from non-resident
Indians denominated in foreign currency normally have a tenor of one year to three years.
The RBI has permitted banks the flexibility to offer varying rates of interest on domestic deposits
of the same maturity subject to the following conditions:
§
Time deposits are of Rs. 1.5 million and above; and
§
Interest is paid in accordance with a schedule of interest rates
disclosed in advance by the bank and not pursuant to negotiation
between the depositor and the bank.
The RBI regulates the interest rates offered on deposits accepted from non-residents.
To achieve greater financial inclusion, banks have been advised by the Reserve Bank to make
available a basic banking 'no frills' account either with 'nil' or very low minimum balances as
well as charges that would make such accounts accessible to vast sections of population.
Insurance of Deposits
Demand and time deposits of up to Rs. 100,000 accepted by banks licensed in India must be insured
with the Deposit Insurance and Credit Guarantee Corporation, a wholly owned subsidiary of the RBI.
Banks are required to pay the insurance premium for the eligible amount to the Deposit Insurance
and Credit
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Guarantee Corporation on a semi-annual basis. The cost of the insurance premium cannot be passed on
to the customer.
Regulations Relating to 'Know Your Customer' (KYC) Guidelines Anti Money Laundering Standards'
The RBI has issued KYC guidelines and Anti Money Laundering Measures. Banks are advised to follow
certain customer identification procedures for opening of accounts and monitoring transactions of a
suspicious nature for the purpose of reporting it to appropriate authority. The objective of these
KYC guidelines is inter alia, to prevent banks from being used, intentionally or unintentionally,
by criminal elements for money laundering activities.
These KYC guidelines mandate banks to frame their KYC policy incorporating the following four key
elements:
Customer Acceptance Policy (CAP)
Banks are required to develop a clear CAP laying down the explicit criteria for acceptance of
customers. The CAP must ensure that explicit guidelines are in place on various specified aspects
of customer relationship in the bank, including but not limited to the following:
§
No account is opened in an anonymous or a fictitious name;
§
Parameters of risk perception are clearly defined in terms of the nature of, among the
other things, the nature of business activity, location of customer and his clients, mode
of payments, volume of turnover, social and financial status to enable categorization of
customers into low, medium and high risk;
§
Documentation requirements and other information to be collected in respect of
different categories of customers; and
§
Application of appropriate customer-due-diligence measures.
Customer Identification Procedure (CIP)
The KYC policy of banks should clearly state the CIP to be carried out at different stages of
banking relationship with a customer. Banks need to obtain sufficient information necessary to
establish the identity of each new customer, whether regular or occasional, and the purpose of the
intended nature of the banking relationship. Customer-due-diligence measures are required to be
observed for all customers (i.e. natural persons as well as legal persons).
Monitoring of Transactions
Ongoing monitoring is an essential element of effective KYC procedures. However the extent of
monitoring will depend upon the risk sensitivity of the account. Banks are required to pay special
attention to all complex, unusually large transactions and all unusual patterns which have no
apparent economic or lawful purpose. Banks may prescribe threshold limits for a particular category
of accounts and pay particular attention to transactions, which exceed these limits. High risk
accounts have to be subjected to intensified monitoring. Every bank should set key indicators for
such accounts, taking note of the background of the customer. Banks should ensure that its branches
continue to maintain appropriate records of all cash transactions (deposits and withdrawals) of Rs.
1million and above.
Risk Management
The Board of Directors of banks are required to ensure that an effective KYC program covering
proper management oversight, systems and controls, segregation of duties, training and other
related matters are in
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place. Banks, may in consultation with their board of directors, devise procedures for creating
risk profiles of their existing and new customers and apply various anti money laundering measures
keeping in view the risks involved in a transaction, account or banking / business relationship.
Rules under Prevention of Money Laundering Act (2002) are applicable to Banks effective July 2005.
Under these rules, Banks are required to furnish information to the Financial Intelligence Unit
(FIU) of the Government of India. The information to be furnished includes specified cash
transactions, forgery of valuable security or transactions of a suspicious nature.
Legal Reserve Requirements
Cash Reserve Ratio
Each bank is required to maintain a specific percentage of its demand and time liabilities by way
of a balance in a current account with the RBI. This is to maintain the solvency of the banking
system. The cash reserve ratio is currently at 5%. For this purpose, the following liabilities are
not considered:
§
inter-bank liabilities; and
§
refinancing from the RBI and other institutions permitted to offer refinancing to banks.
The RBI pays no interest on cash reserves of up to 3.0% of the demand and time liabilities and pays
interest at the rate of 3.5% per annum on the balance. Effective June 24, 2006 the Reserve Bank of
India has decided that the cash reserves will not be eligible for such interest.
The cash reserve ratio has to be maintained on an average basis for a two-week period and should
not fall below 70% of the required cash reserve ratio on any particular day.
Statutory Liquidity Ratio
In addition to the cash reserve ratio, each bank is required to maintain in India a specified
percentage of its total demand and time liabilities by way of liquid assets such as cash, gold or
approved securities, such as government of India securities and state government securities. This
is to maintain liquidity in the banking system. The percentage of this liquidity ratio is fixed by
the RBI from time to time. Currently, the RBI requires banks to maintain a liquidity ratio of 25%
on their total demand and time liabilities. For this purpose the following liabilities are not
considered:
§
any advance taken from the RBI or from certain other financial institutions; and
§
inter-bank liabilities to the extent of inter-bank assets.
Regulations for Asset Liability Management
At present, RBI regulations for asset liability management require banks to draw up two types of
asset-liability gap statements separately for the rupee and for four major foreign currencies.
These gap statements are prepared by scheduling all assets and liabilities according to the stated
or anticipated re-pricing date, or maturity date. These statements have to be submitted to the RBI
on a quarterly basis. The RBI has announced that banks should actively monitor the difference in
the amount of assets and liabilities maturing or being re-priced in a particular period and place
internal prudential limits on the gaps in each time period, as a risk control mechanism.
Additionally, the RBI requires each bank to manage its asset-liability structure so that the
negative liquidity gap in the one to 14 day and 15 to 28 day time periods does not exceed 20% of
the cash outflows in those time periods.
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Foreign Currency Dealership
The RBI has granted us a fully authorized dealers' license to deal in foreign exchange through our
designated branches. Under this license, we have been granted permission to: engage in foreign
exchange transactions in all currencies; open and maintain foreign currency accounts abroad; raise
foreign currency and rupee-denominated deposits from non-resident Indians; grant foreign currency
loans to on-shore and off-shore corporations; open documentary credits; grant import and export
loans; handle collection of bills and funds transfer services; issue foreign currency guarantees;
and enter into derivative transactions and risk management activities that are incidental to our
normal functions authorized under our organizational documents.
Our foreign exchange operations are subject to the guidelines specified by the RBI in its exchange
control manual. As an authorized dealer, we are required to enroll as a member of the Foreign
Exchange Dealers Association of India, which prescribes the ground rules relating to foreign
exchange business in India.
Authorized dealers are required to determine their limits on open positions and maturity gaps in
accordance with RBI guidelines and these limits are approved by the RBI. Further, we are permitted
to hedge foreign currency loan exposures of Indian corporations in the form of interest rate swaps,
currency swaps and forward rate agreements, subject to certain conditions.
Statutes Governing Foreign Exchange and Cross Border Business Transactions
The foreign exchange and cross border transactions undertaken by banks are subject to the
provisions of the Foreign Exchange Management Act, 1999 (the "Foreign Exchange Management Act").
All branches should monitor all non-resident accounts to prevent money laundering. These
transactions are regulated by the Foreign Exchange Management Act and The Prevention of Money
Laundering Act, 2002.
Requirements of the Banking Regulation Act
Reserve Fund
Any bank incorporated in India is required to create a reserve fund to which not less than 25% of
the profits of each year, before dividends, must be transferred. If there is an appropriation from
this account, the bank is required to report such an appropriation to the RBI within 21 days,
explaining the circumstances leading to the appropriation.
Restrictions on Payment of Dividends
The Banking Regulation Act requires that a bank pay dividends on its shares only after all of its
expenses capitalized under Indian GAAP (including preliminary expenses, organization expenses,
share selling commission, brokerage on public offerings, amounts of losses and any other items of
expenditure not represented by tangible assets) have been written off.
The government of India may, upon the recommendation of the RBI, exempt a bank from requirements
relating to its reserve fund and the restrictions on dividend payments.
The RBI issued revised guidelines in May 2005 regarding declaration and payment of dividends
(including interim dividends) by banks, with effect from fiscal 2005. Banks that comply with the
following prudential requirements are eligible to declare dividends:
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§
Capital adequacy ratio must be at least 9% for the preceding two completed years and the fiscal year for which the
bank proposes to declare a dividend;
§
Net non-performing assets must be less than 7% of advances (5% of advances where the capital adequacy ratio is
less than 9% for the preceding two completed years but at least 9% for the fiscal year for which the bank proposes
to declare a dividend);
§
The bank has complied with the provisions of Sections 15 and 17 of the Banking Regulation Act;
§
The bank has complied with the prevailing regulations/guidelines issued by the RBI, including creating adequate
provisions for impairment of assets and staff retirement benefits, transfer of profits to Statutory Reserves,
etc.;
§
The dividend should be payable out of the current year's profits; and
§
The RBI has not placed any explicit restrictions on the bank
for declarations of dividends.
Banks, which comply with the above prudential requirements, can pay dividends subject to
compliance with the following conditions:
§
The dividend payout ratio (calculated as a percentage of
"dividend payable in a year" (excluding dividend tax) to "net
profit during the year") should not exceed 40%. The RBI has
prescribed a matrix of criteria linked to the capital
adequacy ratio and the net non-performing assets ratio in
order to ascertain the maximum permissible range of dividend
payout ratio;
§
If the financial statements for which the dividend is
declared have any audit qualifications which have an adverse
bearing on the profits, the same should be adjusted while
calculating the dividend payout ratio.
Restriction on Voting Rights
The Banking Regulation Act specifies that no shareholder in a banking company can exercise voting
rights in excess of 10% of the total voting rights of all shareholders of the banking company.
The RBI has also issued guidelines for ownership and governance in private sector banks. The
underlying thread of the guidelines is to ensure that the ultimate ownership and control of banks
is well diversified, banks are owned and managed by "fit and proper" persons/entities who are well
capitalized and that the processes are transparent and fair.
Restriction on Transfer of Shares
RBI approval is required before a bank can register the transfer of shares to an individual or
group which acquires 5.0% or more of its total paid-up capital.
Regulatory Reporting and Examination Procedures
The RBI is empowered under the Banking Regulation Act to inspect a bank. The RBI monitors
prudential parameters at regular intervals. The results of these inspections are provided to the
bank, but are required by law to be kept confidential. To this end and to enable off-site
monitoring and surveillance by the RBI, banks are required to report to the RBI on financial and
operating measures such as:
§
assets, liabilities and off-balance sheet exposures;
§
the risk weighting of these exposures, the capital base and the capital adequacy ratio;
§
the unaudited balance sheet/statement of income;
§
asset quality;
§
concentration of exposures; and
§
other prudential parameters.
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The RBI also conducts periodic on-site inspections of matters relating to the bank's portfolio,
risk management systems, internal controls, credit allocation and regulatory compliance, at
intervals ranging from one to three years. We have been subject to on-site inspection by the RBI at
yearly intervals. The inspection report, along with the report on actions taken by us, has to be
placed before our Board of Directors. On approval by our Board of Directors, we are required to
submit the report on actions taken by us to the RBI. The RBI also discusses the report with our
management team, including our Managing Director.
The RBI also conducts on-site supervision of selected branches with respect to their general
operations and foreign exchange related transactions.
Keeping in view the emerging scenario under the Basel II accord and the need to allocate
supervisory resources in accordance with the risk profile of banks, the RBI intends to switch over
from micro-regulation to Risk Based Supervision ("RBS"). The RBI has developed and circulated to
banks detailed standardized risk profile templates for different business areas to be used by banks
for undertaking self-assessment of the risks to which they are exposed.
Penalties
The RBI can impose penalties on banks and their employees in case of infringement of regulations
under the Banking Regulation Act. The penalty can be a fixed amount or can be related to the amount
involved in any contravention of the regulations. The penalty may also include imprisonment.
Assets to be Maintained in India
Every bank is required to ensure that its assets in India (including import-export bills drawn in
India and RBI approved securities, even if the bills and the securities are held outside India) are
not less than 75% of its demand and time liabilities in India.
Secrecy Obligations
Our obligations relating to maintaining secrecy arise out of common law principles governing our
relationship with our customers. We cannot disclose any information to third parties except under
certain limited and clearly defined circumstances.
Guidelines for merger /amalgamation of private sector banks
The RBI has issued detailed guidelines in May 2005 for merger /amalgamation of private sector banks
and for amalgamation of a non-banking finance company (NBFC) with a banking company. The guidelines
lay down the process of merger proposal, determination of swap ratios, disclosures, the stages at
which the Board of Directors will get involved in the merger process and norms of buying and
selling of shares by the promoters before and during the process of merger.
Appointment and Remuneration of Our Chairman, Managing Director and Other Directors
We require the prior approval of the RBI to appoint our Chairman and Managing Director and any
other directors and to fix their remuneration. The RBI is empowered to remove the appointee on the
grounds of the public interest or the interest of depositors or to ensure the proper management of
the Bank. Further, the RBI may order meetings of the Bank's board of directors to discuss any
matter in relation to the Bank,
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appoint observers to these meetings and in general may make changes to the management as it may
deem necessary and can also order the convening of a general meeting of the company to elect new
directors.
The RBI has issued guidelines relating to salary and other remuneration payable to the Chairman,
Managing Director and full-time directors of new private sector banks. Pursuant to the guidelines,
the RBI has permitted banks to fix the performance bonus payable to the managing director/whole
time directors on either of two criteria:
(a) up to a maximum of 25% of the salary; or
(b) the average bonus paid to officers and employees. The average bonus paid to officers and
employees is calculated by dividing the total salary bill by the total bonus paid to them.
Securities and Exchange Board of India Regulations and Guidelines
SEBI was established to protect the interests of public investors in securities and to promote the
development of, and to regulate, the Indian securities market. We are subject to SEBI regulations
in respect of certain of our activities, including acting as agent for collecting subscriptions to
public offerings of securities made by other companies. These regulations provide for registering
with SEBI the functions, responsibilities and the code of conduct applicable for each of these
activities.
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EXCHANGE CONTROLS
Restrictions on Conversion of Rupees
There are restrictions on the conversion of rupees into dollars. Before February 29, 1992, the RBI
determined the official value of the rupee in relation to a weighted basket of currencies of
India's major trading partners. In the February 1992 budget, a new dual exchange rate mechanism was
introduced by allowing conversion of 60% of the foreign exchange received on trade or current
account at a market-determined rate and the remaining 40% at the official rate. All importers were,
however, required to buy foreign exchange at the market rate except for certain priority imports.
In March 1993, the exchange rate was unified and allowed to float. In February 1994 and again in
August 1994, the RBI announced relaxations in payment restrictions in the case of a number of
transactions. Since August 1994, the government of India has substantially complied with its
obligations owed to the International Monetary Fund, under which India is committed to refrain from
using exchange restrictions on current international transactions as an instrument in managing the
balance of payments. Effective July 1995, the process of current account convertibility was
advanced by relaxing restrictions on foreign exchange for various purposes, such as foreign travel
and medical treatment. The government has also, since 1999, relaxed restrictions on capital account
transactions by resident Indians. For example by circular dated March 18, 2004, resident Indians
are now permitted to remit up to US$ 25,000 for any permissible current or capital account
transaction.
Restrictions on Sale of the Equity Shares Underlying the ADRs/ADSs and for Repatriation of Sale
Proceeds
Under the laws of India, ADSs issued by Indian companies to non-residents have free transferability
outside of India. Similarly, under the recent amendments to Indian regulations, no approval of the
RBI is required for the sale of equity shares underlying ADSs by a non-resident of India to a
resident of India subject to reporting requirements and the applicable pricing formula in the case
of shares not sold on an exchange.
The Ministry of Finance, Government of India, has granted general permission for the transfer of
ADRs outside India and also permitted non-resident holders of ADRs to surrender ADRs in exchange
for the underlying shares. Pursuant to the terms of the Deposit Agreement an investor who
surrenders ADRs and withdraws shares is permitted to re-deposit such shares subject to the total
issued ADRs and obtain ADRs at a later time.
Fungibility of ADRs
In March 2001, the RBI has permitted the re-conversion of shares of Indian Companies into ADRs,
subject to the following conditions:
•
the Indian company has issued ADRs;
•
the shares of the Indian company are purchased by a registered stock broker in India in the name
of the Depository, on behalf of the non-resident investor who wishes to convert such shares into
ADRs;
•
shares are purchased on a recognized stock exchange;
•
the shares are purchased with the permission of the custodian of the ADRs of the Indian company
and are deposited with the custodian;
•
the issuer company has authorized the custodian to accept shares from non-resident investors for
re-issuance of ADRs;
•
the number of shares so purchased do not exceed the ADRs converted into underlying shares, and
are in compliance with the sectoral caps applicable under the Foreign Direct Investment regime; and
•
the non-resident investor, broker, custodian and the overseas depository comply with the
provisions of the Depository Receipt Mechanism and the guidelines issued thereunder from time to
time.
Also the RBI has prescribed that the domestic custodians are the entity required to ensure
compliance with the RBI guidelines and to file reports with the RBI from time to time, the domestic
custodian is also required to perform the following functions:
•
provide a certificate to the RBI and the SEBI stating that the sectoral caps for foreign
investment in the relevant company have not been breached;
•
monitor the total number of ADRs that have been converted into underlying shares by non-resident
investors;
•
liaise with the issuer company to ensure that the foreign investment restrictions, if any, are
not being breached; and
•
file a monthly report about the ADR transactions under the two-way fungibility arrangement with
the RBI and the SEBI.
An investor who surrenders an ADS and withdraws equity shares may be entitled to redeposit those
equity shares in the depositary facility in exchange for ADSs and the depositary may accept
deposits of outstanding equity shares purchased by a non-resident on the local stock exchange and
issue ADSs representing those equity shares. However, in each case, the aggregate number of equity
shares re-deposited or deposited by such persons cannot exceed the number represented by ADSs
converted into underlying equity shares. The RBI has issued a notification inter alia permitting
Indian companies to sponsor ADR issues against shares held by their shareholders at a price to be
determined by the lead manager. Investors who seek to sell any equity shares in India withdrawn
from the depositary facility and to convert the rupee proceeds from the sale into foreign currency
and repatriate the foreign currency from India will, subject to the foregoing, not have to obtain
RBI approval for each transaction.
Table of Contents
123
RESTRICTIONS ON FOREIGN OWNERSHIP OF INDIAN SECURITIES
The government of India regulates ownership of Indian companies by foreigners. Foreign
investment in Indian securities is generally regulated by the Foreign Exchange Management Act. The
Foreign Exchange Management Act, when read together with a series of regulations issued there under
by the RBI, permits transactions involving the inflow or outflow of foreign exchange and empowers
the RBI to prohibit or regulate such transactions.
The Foreign Exchange Management Act has eased restrictions on current account transactions.
However, the RBI continues to exercise control over capital account transactions (i.e., those that
alter the assets or liabilities, including contingent liabilities, of persons). The RBI has issued
regulations under the Foreign Exchange Management Act to regulate the various kinds of capital
account transactions, including certain aspects of the purchase and issuance of shares of Indian
companies.
The RBI has issued a notification under the provisions of the Foreign Exchange Management Act
relaxing the requirement of prior approval for an Indian company making an ADS issue provided that
the issuer is eligible to issue ADSs pursuant to the relevant scheme or notification issued by the
Ministry of Finance or has the necessary approval from the Foreign Investment Promotion Board.
Under the foreign investment rules, the following restrictions are applicable to foreign ownership:
Foreign Direct Investment
The Government of India, pursuant to its liberalization policy, set up the Foreign Investment
Promotion Board, or the FIPB, to regulate all foreign direct investment into India. Foreign Direct
Investment, means investment by way of subscription and/or purchase of securities of an Indian
company by a non resident investor. FIPB approval is required for investment in some sectors,
including housing, petroleum (other than refining), defense and strategic industries. Also, the
following investments would require the prior permission of the FIPB:
•
investments , including a transfer of shares, in excess of specified sectoral caps;
•
investments by a foreign investor who has an existing joint venture or technology transfer/trade
mark agreement in the same field. However, prior FIPB approval will not be required in case of
investment made by a venture capital fund registered with SEBI or where the investment in the
existing joint venture is less than 3.0 per cent or where the existing joint venture is defunct or
sick
•
investment being more than 24% in the equity capital of units manufacturing items reserved for
small scale industries;
•
investments by an unincorporated entity;
•
investment in industries for which industrial licensing is compulsory; and
•
all proposals relating to acquisition of shares of an Indian company by a foreign investor
(including individuals of Indian nationality or origin residing outside India (a "Non-Resident
Indian"), the activities of which company are not under the "automatic" route under existing Indian
foreign investment policy or where the Indian company is engaged in the financial services sector
or where the acquisition of shares attracts the provisions of the Takeover Code. However, as per a
recent Press Note issued by the Government of India, the prior permission of the FIPB would not be
required for transfer of shares from residents to non-residents in the financial services sector or
where the provisions of the Takeover Code are attracted, in cases where approvals are required from
the RBI, under the Takeover Code or the Insurance Regulatory and Development Authority.
Subject to certain exceptions, Foreign Direct Investment and investment by individuals of Indian
nationality or origin residing outside India, or Non-Resident Indians, in Indian companies does not
require the prior approval of the FIPB or the RBI. The Government has indicated that in all cases
where Foreign Direct Investment is allowed on an automatic basis without FIPB approval the RBI
would continue to be the primary agency for the purposes of monitoring and regulating foreign
investment. In cases where FIPB approval is obtained, no approval of the RBI is required, although
a declaration in the prescribed form, detailing the foreign investment, must be filed with the RBI
once the foreign investment is made in the Indian company. The foregoing description applies only
to an issuance of shares by, and not to a transfer of shares of, Indian companies.
The Government has set up the Foreign Investment Implementation Authority, or the FIIA in the
Ministry of Commerce and Industry. The FIIA has been mandated to (i) translate foreign direct
investment approvals into implementation, (ii) provide a proactive one-stop after-care service to
foreign investors by helping them obtain necessary approvals, (iii) sort out operational problems
and (iv) meet with various Government agencies to find solutions to foreign investment problems and
maximize opportunities through a co-operative approach.
§
Under the Issue of Foreign Currency Convertible Bonds and Equity Shares (through
Depositary Receipt Mechanism) Scheme, 1993, foreign investors may purchase ADSs subject to
the receipt of all necessary government approvals at the time the depositary receipt
program is set up. With a view to liberalizing the operational procedures, the government
of India's Ministry of Finance and the RBI have granted a general approval to ADS issues,
subject to certain restrictions; and
§
Under the portfolio investment route, foreign institutional investors, subject to
registration with SEBI and the RBI, and non-resident Indians, subject to a resolution of
the board of directors and a special resolution of the shareholders, may be permitted to
own in the aggregate up to 49% of the total issued capital of the company that are not
represented by ADSs; no single foreign institutional investor may own more than 10% of the
total issued capital of the company; a corporate/individual sub-account of the foreign
institutional investor may not hold more than 5% of the total issued capital of a company;
a broad based sub-account may not hold more than 10% of the total issued capital of a
company and no single non-resident Indian may own more than 5% of the total issued capital
of the company.
As an investor in ADSs, you do not need to seek the specific approval from the government of India
to purchase, hold or dispose of your ADSs. In our ADS offering, we obtained the in-principle
approval of the relevant stock exchanges for listing of the equity shares underlying the ADSs. We
were not required to obtain the prior approval of the Foreign Investment Promotion Board or the
RBI. Notwithstanding the foregoing, if a foreign institutional investor, non-resident Indian or
overseas corporate body were to withdraw its equity shares from the ADS program, its investment in
the equity shares would be subject to the general restrictions on foreign ownership noted above and
may be subject to the portfolio investment restrictions, including the portfolio investment
limitations mentioned above. The implications of these limitations however, is not clear.
Secondary purchases of securities of Indian companies in India by foreign direct investors or
investments by non-resident Indians, persons of Indian origin, overseas corporate bodies and
foreign institutional investors above the ownership levels set forth above require the government
of India's approval on a case-by-case basis. Furthermore, if you withdraw your equity shares from
the ADS program and your direct or indirect holding in us is equal to or exceeds 15% of our total
equity, you may be required to make a public offer to the remaining shareholders under the Takeover
Code.
Table of Contents
124
ADDITIONAL INFORMATION
It is
possible to read and copy documents referred to in this annual report on Form 20-F that
have been filed with the SEC at the SEC's public reference room located at 100F Street NE,
Washington, DC 20549. Please call the SEC at 1-800-SEC-0330 for further information on the public
reference rooms and the copy charges. The SEC filings are also available to the public from
commercial document retrieval services and at the internet website maintained by the SEC at
www.sec.gov.
INDEX TO FINANCIAL STATEMENTS
Page
Consolidated
Financial Statements of HDFC Bank Limited:
Report of independent registered public accounting firm
F-2
Consolidated
balance sheets as of March 31, 2005 and 2006
F-3
Consolidated
statements of income for the years ended March 31, 2004, 2005 and 2006
F-4
Consolidated
statements of cash flows for the years ended March 31, 2004, 2005 and 2006
F-5
Consolidated
statements of shareholders' equity for the years ended March 31, 2004, 2005 and 2006
F-6
Notes
to consolidated financial statements
F-7
F-1
Table of Contents
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To The Board of Directors and Shareholders of
HDFC Bank Limited:
We have audited the accompanying consolidated balance sheets of HDFC Bank Limited (the "Bank") as of March 31, 2005 and 2006, and the related consolidated statements of income, cash
flows and shareholders' equity for each of the years in the three year period ended March 31, 2006.
These financial statements are the responsibility of the Bank's management. Our responsibility is
to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight
Board (United States). Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement. The
Bank is not required to have, nor were we engaged to perform, an audit of its internal control over
financial reporting. Our audit included consideration of internal control over financial reporting
as a basis for designing audit procedures that are appropriate in the circumstances but not for the
purpose of expressing an opinion on the effectiveness of the Bank's internal control over financial
reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, such consolidated financial statements present fairly, in all material respects,
the financial position of the Bank as of March 31, 2005 and 2006, and the
results of their operations and their cash flows for each of the years in the three year period
ended March 31, 2006, in conformity with accounting principles generally accepted in the United
States of America.
As described in Note 2 (b) to the consolidated financial statements, these consolidated financial
statements have been prepared in accordance with accounting principles generally accepted in the
United States of America, which differ in certain material respects from accounting principles
generally accepted for banks in India, which form the basis of the Bank's general purpose financial
statements.
Our audits also comprehended the translation of India rupee amounts into U.S. dollar amounts and,
in our opinion, such translation has been made in conformity with the basis stated in Note 2 (w).
Such U.S. dollar amounts are presented solely for the convenience of readers in the United States
of America.
/s/ DELOITTE HASKINS & SELLS
Chartered Accountants
Mumbai, India
September 25, 2006
Table of Contents
HDFC
BANK LIMITED
CONSOLIDATED BALANCE SHEETS
As of March 31, 2005 and 2006
As of March 31,
2005
2006
2006
(In millions except number of shares)
ASSETS:
Cash and cash equivalents
Rs.
37,575.8
Rs.
61,194.3
US$
1,375.8
Term placements
8,699.6
10,243.7
230.3
Investments
held for trading, at fair value
1,278.5
2,945.6
66.2
Investments
available for sale, at fair value (includes restricted investments of Rs. 24,017.3
and Rs. 90,102.5 respectively)
204,292.8
273,457.0
6,147.9
Securities purchased under agreements to resell
—
4,200.0
94.4
Loans (net
of allowance of Rs. 5,438.5 and Rs. 5,653.3 respectively)
256,486.9
395,274.3
8,886.5
Accrued interest receivable
4,912.1
8,662.7
194.8
Property and equipment, net
7,083.2
8,714.6
195.9
Other assets
15,215.3
26,277.2
590.8
Total assets
Rs.
535,544.2
Rs.
790,969.4
US$
17,782.6
LIABILITIES AND SHAREHOLDERS' EQUITY:
Liabilities
Interest-bearing deposits
Rs.
257,237.9
Rs.
410,181.2
US$
9,221.7
Non-interest-bearing deposits
106,304.6
147,124.2
3,307.6
Total deposits
363,542.5
557,305.4
12,529.3
Short-term
borrowings
62,079.1
75,676.7
1,701.4
Accrued interest payable
5,843.0
8,264.1
185.8
Long-term debt
5,028.1
17,028.6
382.8
Accrued expenses and other liabilities
49,713.5
77,201.8
1,735.7
Total liabilities
486,206.2
735,476.6
16,535.0
Contingencies (See Note 26)
—
—
—
Minority interest
—
225.3
5.0
Shareholders' equity:
Equity
shares: par value—Rs. 10 each;
authorized 450,000,000 shares; issued and
outstanding 309,875,308 shares and 313,142,408 shares, respectively
3,098.7
3,131.4
70.4
Additional paid in capital
25,789.2
26,805.7
602.6
Advance received pending allotment of shares
423.3
—
—
Retained earnings
12,871.6
18,284.6
411.1
Statutory reserve
6,187.6
8,364.6
188.1
Deferred stock-based compensation
(66.1
)
(19.5
)
(0.4
)
Accumulated
other comprehensive income (loss)
1,033.7
(1,299.3
)
(29.2
)
Total shareholders' equity
49,338.0
55,267.5
1,242.6
Total liabilities and shareholders' equity
Rs.
535,544.2
Rs.
790,969.4
US$
17,782.6
See accompanying notes to financial statements
F-3
Table of Contents
HDFC BANK LIMITED
CONSOLIDATED STATEMENTS OF INCOME
For each of the years ended March 31, 2004, 2005 and 2006
Years ended March 31,
2004
2005
2006
2006
(In millions, except share and per share amounts)
Interest and dividend revenue:
Loans
Rs.
11,705.0
Rs.
16,431.4
Rs.
28,853.8
US$
648.7
Trading securities
289.6
144.4
195.6
4.4
Available for sale securities, including dividend
11,487.3
11,399.1
12,969.6
291.7
Other
1,109.6
1,234.5
1,509.0
33.8
Total interest revenue
24,591.5
29,209.4
43,528.0
978.6
Interest expense:
Deposits
10,279.2
11,074.1
15,590.1
350.5
Short-term borrowings
1,435.9
1,759.4
3,497.7
78.6
Debt
268.0
390.2
534.0
12.0
Total interest expense
11,983.1
13,223.7
19,621.8
441.1
Net interest revenue
12,608.4
15,985.7
23,906.2
537.5
Provision for credit losses, net
2,343.4
3,048.2
5,032.0
113.1
Net interest revenue after provision for credit losses
10,265.0
12,937.5
18,874.2
424.4
Non-interest revenue, net:
Fees and commissions
3,140.7
6,124.4
10,949.6
246.2
Trading securities gains (losses), net
396.8
(39.3
)
(44.8
)
(1.0
)
Realized gains (losses) on sales of available
for sale securities,
net
(48.3
)
194.3
420.3
9.4
Foreign exchange transaction gains
740.0
911.7
994.0
22.3
Derivative
transaction gains (losses), net
443.9
204.0
(402.9
)
(9.1
)
Other, net
24.5
816.4
231.7
5.2
Total non-interest revenue, net
4,697.6
8,211.5
12,147.9
273.0
Total revenue, net
14,962.6
21,149.0
31,022.1
697.4
Non-interest expense:
Salaries and staff benefits
2,154.0
3,249.9
5,420.9
121.9
Premises and equipment
1,828.5
2,260.8
3,125.9
70.3
Depreciation and amortization
1,254.9
1,440.7
1,812.1
40.7
Administrative and other
3,131.9
4,462.5
7,487.9
168.3
Total non-interest expense
8,369.3
11,413.9
17,846.8
401.2
Income before income tax expense
6,593.3
9,735.1
13,175.3
296.2
Income tax expense
1,838.8
3,125.4
3,965.7
89.2
Net income before minority interest
Rs.
4,754.5
Rs.
6,609.7
Rs.
9,209.6
US$
207.0
Minority interest
—
—
22.5
0.5
Net income
Rs.
4,754.5
Rs.
6,609.7
Rs.
9,187.1
US$
206.5
Per share information: (See Note: 29)
Earnings per equity share—basic
Rs.
16.87
Rs.
22.78
Rs.
29.45
US$
0.66
Earnings per equity share—diluted
Rs.
16.70
Rs.
22.60
Rs.
29.08
US$
0.65
Per ADS
information (where 1 ADS represents 3 shares): (See Note: 29)
Earnings per ADS—basic
Rs.
50.61
Rs.
68.34
Rs.
88.36
US$
1.99
Earnings per ADS—diluted
Rs.
50.10
Rs.
67.80
Rs.
87.24
US$
1.96
See accompanying notes to financial statements
F-4
Table of Contents
HDFC BANK LIMITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
For each of the years ended March 31, 2004, 2005 and 2006
Years ended March 31,
2004
2005
2006
2006
(In millions)
Cash flows from operating activities:
Net income
Rs.
4,754.5
Rs.
6,609.7
Rs.
9,187.1
US$
206.5
Adjustment to reconcile net income to net cash provided by (used in)
operating activities
Provision for credit losses
2,343.4
3,048.2
5,032.0
113.1
Depreciation and amortization
1,254.9
1,440.7
1,812.1
40.7
Amortization of deferred stock based compensation
135.1
308.5
46.6
1.0
Amortization of deferred acquisition costs
(156.2
)
(496.3
)
1,523.2
34.2
Amortization of premium(discount) on investments
1,489.6
1,516.1
2,462.5
55.4
Other than temporary impairment investment
—
—
714.3
16.1
Provision for deferred income taxes
(588.4
)
(213.5
)
455.2
10.2
Guarantee liabilities
112.7
50.1
160.3
3.6
(Gain) loss on securitization of loans
(123.8
)
(622.5
)
31.3
0.7
Net realized (gain) loss on sale of available for sale securities
48.3
(194.3
)
(420.3
)
(9.4
)
Gain (loss) on disposal of property and equipment, net
4.4
(2.1
)
(2.7
)
(0.1
)
Accrued leave compensation
—
186.3
329.5
7.4
Net change in:
Investments held for trading
(2,257.7
)
4,955.3
(1,667.1
)
(37.5
)
Accrued interest receivable
2,105.1
(733.4
)
(3,750.6
)
(84.3
)
Other assets
2,675.3
4,033.0
(12,162.5
)
(273.4
)
Accrued interest payable
(2,731.9
)
1,677.6
2,421.1
54.4
Accrued expense and other liabilities
31,190.6
(19,818.7
)
26,444.1
594.6
Net cash provided by operating activities
40,255.9
1,744.7
32,616.1
733.2
Cash flows from investing activities:
Net change in term placements
4,182.2
(5,134.3
)
(1,544.2
)
(34.7
)
Purchase of subsidiary
—
—
155.8
3.5
Activity in available for sale securities:
Purchases
(265,970.2
)
(153,898.8
)
(170,373.4
)
(3,830.3
)
Proceeds from sales
209,229.1
96,986.1
62,820.2
1,412.3
Maturities, prepayments and calls
22,626.0
20,543.1
33,299.5
748.6
Activity in held to maturity securities:
Purchases
(78,592.0
)
(11,888.8
)
—
—
Maturities, prepayments and calls
79,721.9
10,792.0
—
—
Net change in repurchase option and reverse repurchase option
(24,550.0
)
19,950.0
(4,200.0
)
(94.4
)
Proceeds from loans securitized
5,917.4
48,234.6
19,733.3
443.6
Loans purchased
(6,180.7
)
(18,309.8
)
(8,952.3
)
(201.3
)
Repayments on loans purchased
2,233.3
16,621.2
5,216.0
117.3
Increase in loans originated, net of principal collections
(63,818.4
)
(127,777.5
)
(159,840.8
)
(3,593.5
)
Additions to property and equipment
(2,143.9
)
(2,442.8
)
(3,752.9
)
(84.4
)
Proceeds from sale or disposal of property and equipment
24.9
9.5
51.5
1.2
Net cash used in investing activities
(117,320.4
)
(106,315.5
)
(227,387.3
)
(5,112.1
)
Cash flows from financing activities:
Net increase in deposits
80,302.0
59,480.5
193,762.9
4,356.2
Net increase (decrease) in short-term borrowings
2,484.6
38,014.9
13,597.6
305.7
Proceeds from issuance of debt
4,000.0
—
12,020.0
270.2
Repayments of debt
(30.0
)
(1,057.9
)
(19.5
)
(0.4
)
Proceeds from issuance of equity shares for options exercised
203.6
659.1
625.8
14.1
Proceeds from issuance of shares
—
12,747.6
—
—
Proceeds from applications received for shares pending allotment
125.5
423.3
—
—
Payment of dividends and dividend tax
(955.7
)
(1,131.3
)
(1,597.1
)
(35.9
)
Net cash provided by financing activities
86,130.0
109,136.2
218,389.7
4,909.9
Net change in cash
9,065.5
4,565.4
23,618.5
531.0
Cash and cash equivalents, beginning of year
23,944.9
33,010.4
37,575.8
844.8
Cash and cash equivalents, end of year
Rs.
33,010.4
Rs.
37,575.8
Rs.
61,194.3
US$
1,375.8
Supplementary cash flow information:
Interest paid
Rs.
14,819.5
Rs.
11,543.9
Rs.
17,200.7
US$
386.7
Income taxes paid
Rs.
2,843.9
Rs.
3,719.5
Rs.
5,421.6
US$
121.9
Supplementary information on non cash transactions:
Investments transferred from held to maturity to available for sale category
Rs.
4.9
Rs.
37,005.6
Rs.
—
US$
—
See accompanying notes to financial statements
F-5
Table of Contents
HDFC BANK LIMITED
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
For each of the years ended March 31, 2004, 2005 and 2006
Advance
received
Accumulated
Additional paid
pending
Deferred stock-
other
Total
Number of
Equity share
in
allotment of
Retained
Statutory
based
comprehensive
Shareholders'
Equity shares
capital
capital
shares
Earnings
reserve
compensation
income (loss)
equity
(In millions, except for equity shares)
Balance at March 31, 2003
279,718,938
Rs.
2,797.2
Rs.
11,758.9
Rs.
146.5
Rs.
6,532.1
Rs.
3,249.9
Rs.
(60.2
)
Rs.
1,688.7
Rs.
26,113.1
Shares issued upon exercise of
options
3,125,500
31.2
318.9
(146.5
)
203.6
Stock options granted
449.5
(449.5
)
—
Dividends, including dividend
tax
(955.7
)
(955.7
)
Advance received pending
allotment of shares
125.5
125.5
Amortization of deferred stock
based compensation
135.1
135.1
Transfer to statutory reserve
(1,273.8
)
1,273.8
—
Sub Total
282,844,438
2,828.4
12,527.3
125.5
4,302.6
4,523.7
(374.6
)
1,688.7
25,621.6
Net income
4,754.5
4,754.5
Unrealized loss reclassified
to earnings
(582.2
)
(582.2
)
Change in the unrealized gain
on available for sale
securities, net
1,421.9
1,421.9
Balance at March 31, 2004
282,844,438
Rs.
2,828.4
Rs.
12,527.3
Rs.
125.5
Rs.
9,057.1
Rs.
4,523.7
Rs.
(374.6
)
Rs.
2,528.4
Rs.
31,215.8
Shares issued upon exercise of
options
4,106,775
41.1
743.5
(125.5
)
659.1
Shares issued in public
offering
22,924,095
229.2
12,518.4
12,747.6
Dividends, including dividend
tax
(1,131.3
)
(1,131.3
)
Advance received pending
allotment of shares
423.3
423.3
Amortization of deferred stock
based compensation
308.5
308.5
Transfer to statutory reserve
(1,663.9
)
1,663.9
—
Sub Total
309,875,308
3,098.7
25,789.2
423.3
6,261.9
6,187.6
(66.1
)
2,528.4
44,223.0
Net income
6,609.7
6,609.7
Unrealized gains on securities
transferred from held to maturity to available for sale
558.9
558.9
Unrealized loss reclassified
to earnings
(773.4
)
(773.4
)
Change in the unrealized gain
on available for sale
securities, net
(1,280.2
)
(1,280.2
)
Balance at March 31, 2005
309,875,308
Rs.
3,098.7
Rs.
25,789.2
Rs.
423.3
Rs.
12,871.6
Rs.
6,187.6
Rs.
(66.1
)
Rs.
1,033.7
Rs.
49,338.0
Shares issued upon exercise of
options
3,267,100
32.7
1,016.5
(423.3
)
625.9
Dividends, including dividend
tax
(1,597.1
)
(1,597.1
)
Amortization of deferred stock
based compensation
46.6
46.6
Transfer to statutory reserve
(2,177.0
)
2,177.0
—
Sub Total
313,142,408
3,131.4
26,805.7
—
9,097.5
8,364.6
(19.5
)
1,033.7
48,413.4
Net income
9,187.1
9,187.1
Unrealized gain reclassified
to earnings
(80.6
)
(80.6
)
Change in the unrealized gain
on available for sale
securities, net
(2,252.4
)
(2,252.4
)
Balance at March 31, 2006
313,142,408
Rs.
3,131.4
Rs.
26,805.7
—
Rs.
18,284.6
Rs.
8,364.6
Rs.
(19.5
)
Rs.
(1,299.3
)
Rs.
55,267.5
Balance at March 31, 2006
US$
70.4
US$
602.6
—
US$
411.1
US$
188.1
US$
(0.4
)
US$
(29.2
)
US$
1,242.6
See accompanying notes to financial statements
F-6
Table of Contents
1. The Bank
HDFC Bank Limited (the ''Bank'') was incorporated in August 1994 with its registered office
in Mumbai, India. The Bank is a banking company governed by India's Banking Regulations Act,
1949. The Bank's shares are listed on the Bombay Stock Exchange
Ltd., The National Stock Exchange of
India Limited and its ADSs are listed on the New York Stock
Exchange.
The Bank's largest shareholder is Housing Development Finance Corporation Limited ("HDFC
Limited"), which, along with its subsidiaries, controls 22.0%
(previous year 22.2%) of the Bank's equity. The balance
of the Bank's equity is widely held by the public and by foreign and Indian institutional
investors.
The Bank's principal business activities are retail banking, wholesale banking and treasury
operations. The Bank's retail banking division provides a variety of deposit products as well as
loans, credit cards, debit cards, third party mutual funds and insurance, investment advisory
services and depositary services. Through its wholesale banking operations, the Bank provides
loans, deposit products, documentary credits, guarantees, bullion trading, foreign exchange,
and derivative products. It also provides cash management services, clearing and settlement
services for stock exchanges, tax and other collections for the government, custody services for
mutual funds and correspondent banking services. The Bank's treasury group manages its debt
securities and money market operations and its foreign exchange and derivative products.
2. Summary of Significant Accounting Policies
a. Principles of Consolidation
The consolidated financial statements include the accounts of HDFC Bank Limited and its
subsidiaries. The Bank consolidates subsidiaries in which, directly or indirectly, it holds more
than 50% of the voting rights or exercises control. Entities where the Bank holds 20% to
50% of the voting rights and/or has the ability to exercise significant influence are accounted
for under the equity method, and the pro rata share of their income (loss) is included in income.
Income from investments in less than 20% owned companies is recognized when dividends are
received. The Bank consolidates entities deemed to be Variable Interest Entities (VIEs) where
the Bank is determined to be the primary beneficiary under FASB Interpretation No. 46,
"Consolidation of Variable Interest Entities" (FIN 46(R)). All significant inter-company accounts
and transactions are eliminated on consolidation.
b
.
Basis of presentation
These financial statements have been prepared in accordance with accounting principles
generally accepted in the United States of America (''US GAAP''). US GAAP differs in certain
material respects from accounting principles generally accepted in India, the requirements of
India's Banking Regulations Act and related regulations issued by the Reserve Bank of India
(''RBI'') (collectively ''Indian
GAAP''), which form the basis of the statutory general purpose
financial statements of the Bank in India. Principal differences insofar as they relate to the
Bank include: determination of the allowance for credit losses; classification and valuation of
investments; accounting for deferred income taxes, stock-based compensation, employee benefits,
loan origination fees and derivative financial instruments, and the presentation format and disclosures of
the financial statements and related notes.
c
.
Use of Estimates
The preparation of financial statements in conformity with US GAAP requires management to
make estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosures of contingent assets and liabilities at the date of these financial statements and
the reported amounts of revenues and expenses for the years presented. Actual results could
differ from these estimates. Material estimates included in these financial statements that are
susceptible to change include the allowance for credit losses and the valuation of unlisted
investments.
d
.
Cash and cash equivalents
The Bank considers all highly liquid financial instruments, which are readily convertible
into cash and have original
maturities of three months or less on the date of purchase, to be cash equivalents.
F-7
Table of Contents
e. Customer acquisition costs
Customer acquisition costs principally consist of commissions paid to third party referral
agents who obtain retail loans and such costs are deferred and amortized as a yield adjustment
over the life of the loans. Advertising and marketing expenses incurred to solicit new business
are expensed as incurred.
f
.
Investments in securities
Investments consist of securities purchased as part of the Bank's treasury operations, such
as government securities and other debt and equity securities, and, investments purchased as part
of the Bank's wholesale banking operations, such as credit substitute securities issued by the
Bank's wholesale banking customers.
Credit substitute securities typically consist of commercial paper, short-term debentures
and preference shares issued by the same customers with whom the Bank has a lending relationship
in its wholesale banking business. Investment decisions for credit substitute securities are
subject to the same credit approval processes as for loans, and the Bank bears the same customer
credit risk as it does for loans extended to those customers. Additionally, the yield and
maturity terms are generally directly negotiated by the Bank with the issuer. As the Bank's
exposures to such securities are similar to its exposures on its loan portfolio, additional
disclosures have been provided on impairment status in Note 8 and on concentrations of credit
risk in Note 12.
All other securities including mortgage and asset-backed securities are actively managed as
a part of the Bank's treasury operations. The issuers of such securities are either the
government, public financial institutions or private issuers. These investments are typically
purchased from the market, and debt securities are generally publicly rated.
Securities that are held principally for resale in the near term are classified as held for
trading ("HFT") and are carried at fair value, with changes in fair value recorded in earnings.
Debt securities that management has the positive intent and ability to hold
to maturity are classified as held to maturity ("HTM") and are carried at amortized cost.
Equity securities with readily determinable fair values and all debt
securities that are not classified as HTM or HFT are classified as available for sale ("AFS") and
are carried at fair value. Unrealized gains and losses on such securities, net of applicable
taxes, are reported in accumulated other comprehensive income (loss), a separate component of
shareholders' equity.
Fair values are based on market quotations where a market quotation is available or
otherwise based on present values at current interest rates for such investments.
Where management determines that an HTM security's credit rating has been irrevocably
downgraded, and continued holding to maturity is likely to result in increased losses, it
transfers the security to AFS or sells the security at the best available price.
Transfers between categories are recorded at fair value on the date of the
transfer.
g. Impairment of securities
Declines in the fair values of held to maturity and available for sale
securities below their cost that are other than temporary are reflected in earnings as realized
losses, based on management's best estimate of the fair value of the investment. The Bank
identifies other than temporary declines based on an evaluation of all significant factors,
including the length of time and extent to which fair value is less than cost and the financial
condition and economic prospects of the issuer. Estimates of any declines in the fair values of
credit substitute securities that are other than temporary are measured on a case-by-case basis
together with loans to those customers. The Bank does not recognize an impairment for debt
securities if the cause of the decline is related solely to interest rate increases and where the
Bank has the ability and intent to hold the security until the fair value recovers.
h
.
Loans
The Bank grants retail and wholesale loans to customers.
F-8
Table of Contents
Loans that management has the intent and ability to hold for the foreseeable
future or until maturity or payoff are reported at their outstanding unpaid principal balances
adjusted for an allowance for credit losses.
Interest is accrued on the unpaid principal balance and is included in
interest income. Loans are placed on "non-accrual" status when interest or principal payments are
past due for a specified period, at which time no further interest is accrued and overdue
interest is written off against interest income. Loans are returned to accrual status when all
principal and interest amounts contractually due are brought current and future payments are
reasonably assured. Loans are placed on "non-accrual" status when interest or
principal payments are one quarter past due in line with international practices.
i
.
Allowance for credit losses
The Bank provides an allowance for credit losses based on management's best estimate of
losses inherent in the loan portfolio. The allowance for credit losses consists of allowances for
retail loans and wholesale loans.
Retail
The Bank's retail loan loss allowance consists of specific and unallocated
allowances.
The Bank establishes a specific allowance on the retail loan portfolio based
on factors such as the nature of the product, delinquency levels or the number of days the loan is
past due, the nature of the security available and loan to value ratios. The loans are charged off
against allowances at defined delinquency levels.
The Bank also makes unallocated allowances for its retail loans by product
type. The Bank's retail loan portfolio comprises groups of large numbers of small value homogeneous
loans. The Bank establishes an unallocated allowance for loans in each product group based on its
estimate of the expected amount of losses inherent in such product. In making such estimates, among
other factors considered, the Bank stratifies such loans based on the number of days past due and
takes into account historical losses for such product, the nature of security available and loan to
value ratios.
F-9
Table of Contents
Wholesale
The allowance for wholesale loans consists of specific and unallocated components. The
allowance for such credit losses is evaluated on a regular basis by management and is based upon
management's view of the probability of recovery of loans in light of historical experience, the
nature and volume of the loan portfolio, adverse situations that may affect the borrower's ability
to repay, the estimated value of any underlying collateral, factors affecting the industry which
the loan exposure relates to and prevailing economic conditions. This evaluation is inherently
subjective as it requires estimates that are susceptible to significant revision as more
information becomes available. Loans are charged off against the allowance when management believes
that the loan balance cannot be recovered. Subsequent recoveries, if any, are credited to the
provision.
The Bank grades its wholesale loan accounts considering both qualitative and
quantitative criteria. Wholesale loans are considered impaired when, based on current information
and events, it is probable that the Bank will be unable to collect scheduled payments of principal
or interest when due according to the contractual terms of the loan agreement. Factors considered
by management in determining impairment include payment status, the financial condition of the
borrower, the value of collateral held, and the probability of collecting scheduled principal and
interest payments when due.
The Bank establishes specific allowances for each impaired wholesale loan customer in the
aggregate for all facilities, including term loans, cash credits, bills discounted and lease
finance, based on either the present value of expected future cash flows discounted at the loan's
effective interest rate or the net realizable value of the collateral if the loan is collateral
dependent.
Wholesale loans that experience insignificant payment delays and payment
shortfalls are generally not classified as impaired but are placed on a surveillance watch list and
closely monitored for deterioration. Management determines the significance of payment delays and
payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances
surrounding the loan and the borrower, including the length of the delay, the reasons for the
delay, the borrower's prior payment record, and the amount of the shortfall in relation to the
principal and interest owed.
In light of the significant growth in the size
and diversity of its wholesale loan portfolio, the Bank has also established an unallocated allowance
for wholesale standard loans based on the overall portfolio quality, asset growth, economic
conditions and other risk factors. The Bank estimate its wholesale unallocated allowance based on
an internal credit slippage matrix, which measures the Bank's historic losses for its standard loan
portfolio.
j. Sales/Transfer of Receivables
The Bank sells finance receivables to special purpose entities ("SPEs") in securitization
transactions. Recourse is in the form of the Bank's investment in subordinated securities issued by
these SPEs and cash collateral. Securitized receivables are derecognized in the balance sheet when
they are sold and consideration has been received by the Bank. Sales and transfers that do not meet
the criteria for surrender of control are accounted for as secured
borrowings. The Bank also enters into securitization transactions,
which are similar to asset-backed securitization transactions through
the SPE route, except that such portfolios of receivables are
assigned directly to the purchaser and are not represented by
pass-through certificates.
Gains or losses from the sale of receivables are recognized in the period the
sale occurs based on the relative fair value of the portion sold and the portion allocated to
retained interests, and are reported net of the estimated cost of servicing by the Bank.
Fair values are determined based on the present value of expected future cash
flows, using best estimates for key assumptions, such as prepayment and discount rates,
commensurate with the risk involved.
F-10
Table of Contents
For further information, see note 11.
k
.
Property and equipment
Property and equipment are stated at cost, less accumulated depreciation. Depreciation is
provided over the estimated useful lives of fixed assets on a straight-line basis at the
following rates:
Type of Asset
Rate of depreciation
Buildings
1.61
%
Leasehold improvements
Lower of asset life or period of lease
ATMs
12.50
%
Very small aperture terminals ("VSATs")
10.00
%
Office equipment
16.21
%
Computer equipment
33.33
%
Motor cars
25.00
%
Software and system development expenditure
25.00
%
Assets at the residence of executives of the
Bank
25.00
%
l
.
Impairment or disposal of tangible long lived assets
Whenever events or circumstances indicate that the carrying amount of tangible long lived
assets may not be recoverable, the Bank subjects such long lived assets to a test of
recoverability based on the undiscounted cash flows from use or disposition of the asset. Such
events or circumstances would include changes in the market, technology obsolescence, adverse
changes in profitability or regulation. If the asset is impaired, the Bank recognizes an
impairment loss estimated as the difference between carrying value and the net realizable value.
m
.
Foreclosed or repossessed assets
Assets acquired through or in lieu of foreclosure or through repossession are generally held
for sale and initially recorded at fair value on the date of foreclosure or repossession. On
subsequent dates, such assets are periodically evaluated by management for changes in fair value,
and are carried at the lower of the fair value on the date of foreclosure or repossession and the
net realizable value on the balance sheet date. Net realizable value represents the anticipated
sale price less the estimated costs of disposal. Revenues and expenses from the operation of such
assets and changes in the fair value are included in earnings.
n
.
Income tax
Income tax consists of the current tax provision and the net change in the deferred
tax asset or liability in the year.
Deferred tax assets and liabilities are recognized for the future tax
consequences of temporary differences between the carrying values of assets and liabilities and
their respective tax bases and operating loss carry forwards. Deferred tax assets are recognized
subject to management's judgment that realization is more likely than not. Deferred tax assets
and liabilities are measured using enacted tax rates expected to apply to taxable income in the
years in which the temporary differences are expected to be received or settled. The effect on
deferred tax assets and liabilities of a change in tax rates is recognized in the income
statement in the period of enactment of the change.
o
.
Revenue recognition
Interest income from loans and from investments in finance leases is recognized on an
accrual basis when earned except in respect of loans or finance leases placed on non-accrual
status, where it is recognized when received. The Bank generally does not charge upfront loan
origination fees. Nominal application fees are charged which offset the related costs incurred.
Fees and commissions from guarantees issued are amortized over the contractual period of the
commitment, provided the
F-11
Table of Contents
amounts are collectible.
Dividends are recognized when declared.
Realized gains and losses on sales of securities are recorded on the trade date and are
determined using the weighted average cost method.
Other fees and income are recognized when earned, which is when the service that results in
the income has been provided.
The Bank amortizes annual fees on credit cards over the contractual period of the fees.
p. Foreign currency transactions
The Bank's functional currency is the Indian rupee. Foreign currency transactions are
recorded at the exchange rate prevailing on the date of the transaction. Foreign currency
denominated monetary assets and liabilities are converted into Indian rupees using exchange rates
prevailing on the balance sheet dates. Gains and losses arising on conversion of foreign currency
denominated monetary assets and liabilities and on foreign currency transactions are included in
the determination of net income.
q
.
Stock-Based Compensation
The Bank has elected to use the intrinsic value method to account for the compensation cost
of stock options and awards granted to employees of the Bank. The Bank uses the fair value
approach for any options that are granted to individuals who do not qualify as employees.
Had compensation cost for the Bank's stock option plans been determined based on the fair
value approach, the Bank's net income and earnings per share would have been as per the pro forma
amounts indicated below:
Years ended March 31,
2004
2005
2006
2006
(In millions, except per share amounts)
Net Income:
As reported
Rs.
4,754.5
Rs.
6,609.7
Rs.
9,187.1
US$
206.5
Add: Stock-based employee compensation expense included in
net income
As reported
135.1
308.5
46.6
1.0
Less: Stock-based compensation expense determined under
fair value based method :
Pro forma
(293.3
)
(1,209.4
)
(1,276.5
)
(28.7
)
Net Income:
Pro forma
Rs.
4,596.3
Rs.
5,708.8
Rs.
7,957.2
US$
178.8
Basic earnings per share
As reported
Rs.
16.87
Rs.
22.78
Rs.
29.45
US$
0.66
Pro forma
16.31
19.68
25.51
0.57
Diluted earnings per share
As reported
Rs.
16.70
Rs.
22.60
Rs.
29.08
US$
0.65
Pro forma
16.14
19.52
25.19
0.57
Basic earnings per ADS
As reported
Rs.
50.61
Rs.
68.34
Rs.
88.36
US$
1.99
Pro forma
48.93
59.04
76.53
1.72
Diluted earnings per ADS
As reported
Rs.
50.10
Rs.
67.80
Rs.
87.24
US$
1.96
Pro forma
48.42
58.56
75.56
1.70
F-12
Table of Contents
The fair value of options used to compute
pro forma
net income and basic earnings per
equity share have been estimated on the dates of each grant using a binomial option pricing model
with the following assumptions:
Years ended March 31,
2004
2005*
2006
Dividend yield
0.9
%
—
0.7
%
Expected volatility
45.0
%
—
21.25
%
Risk—free interest rate
ESOS Plan
4.4%
– 4.5%
—
6.1%
– 6.6%
EWT Plan
4.5
%
—
—
Expected lives:
ESOS Plan
EWT Plan
7.1
years
—
1
– 7 years
1.2 – 2.2 years
—
—
* No
options were granted in the year 2005.
r
.
Debt issuance costs
Issuance costs of long-term debt are amortized over the tenure of the debt.
s
.
Earnings per share
Basic earnings per equity share has been computed by dividing net income by the weighted
average number of equity shares outstanding for the period. For the purpose of determining the
weighted average number of equity shares outstanding, the Bank treats advances received from
optionees who exercise their options as issued shares even if the administrative formalities of
allocating equity shares have not been completed. Diluted earnings per equity share has been
computed using the weighted average number of equity shares and dilutive potential equity shares
outstanding during the period, using the treasury stock method for options, except where the
result would be anti-dilutive. The Bank also reports basic and diluted earnings per ADS, where
each ADS represents three equity shares. Earnings per ADS has been computed as earnings per
equity share multiplied by the number of equity shares per ADS. A reconciliation of the number of shares used in computing earnings per share has been provided in Note 29.
t
.
Segment information
The Bank operates in three reportable segments, namely retail banking, wholesale banking and
treasury services. Segment-wise information has been provided in Note 25.
u
.
Derivative Financial Instruments
The Bank recognizes all derivative instruments, including certain derivative instruments
embedded in other contracts, as assets or liabilities in the balance sheet and measures them at
fair value, unless those instruments qualify to be accounted for as hedge contracts. For a
derivative not designated as a hedging instrument, changes in fair value are recognized in net
income in the period of change.
Certain forward exchange contracts and currency swaps qualify as hedges of the
foreign currency exposure of a foreign currency denominated transaction. The timing of the
recognition of the gain or loss on such hedge contracts matches the recognition of the changes in
the fair value of the item being hedged in net income.
The Bank enters into forward exchange contracts, currency swaps and currency
options with its customers and typically lays off such customer exposures in the inter-bank foreign
exchange markets. The Bank also enters into such instruments to cover its own foreign exchange
exposures. All such instruments are carried at fair value, determined based on market quotations.
The Bank enters into rupee interest rate swaps for its own account. The Bank
also enters into interest rate currency swaps and cross currency interest rate swaps with its
customers and typically lays these off in the inter-bank market. Such contracts are carried on the
balance sheet at fair value, based on market quotations where available or priced using market
determined yield curves.
F-13
Table of Contents
v
.
New Accounting Pronouncements
In November 2003, the Financial Accounting Standards Board ("FASB") ratified a consensus on the
disclosure provisions of Emerging Issues Task Force ("EITF") Issue 03-1, "The Meaning of
Other-Than-Temporary Impairment and Its Application to Certain Investments." In March 2004, the
FASB reached a consensus regarding the application of a three-step impairment model to determine
whether investments accounted for in accordance with SFAS No. 115, "Accounting for Certain
Investments in Debt and Equity Securities," and other cost method investments are
other-than-temporarily impaired. However, with the issuance of FASB Staff Position EITF 03-1-1, the
provisions of the consensus relating to the measurement and recognition of other-than-temporary
impairments have been deferred pending reassessment by the FASB. The remaining provisions of this
standard, which primarily relate to disclosure, are required to be applied prospectively to all
current and future investments accounted for in accordance with SFAS No. 115 and other cost method
investments. The Bank has complied with the disclosure provisions of this standard.
In December 2004, the FASB issued SFAS No. 123(R), Share-Based Payment, which establishes
accounting standards for all transactions in which an entity exchanges its equity instruments for
goods and services. SFAS No. 123(R) focuses primarily on accounting for transactions with
employees, and carries forward without change prior guidance for share-based payments for
transactions with non-employees.
SFAS No. 123(R) eliminates the intrinsic value alternative in APB Opinion 25 and generally requires
the Bank to measure the cost of employee services received in exchange for an award of equity
instruments based on the fair value of the award on the date of the grant. The standard requires
grant date fair value to be estimated using either an option-pricing model, which is consistent
with the terms of the award, or a market observed price, if such a price exists. Such cost must be
recognized over the period during which an employee is required to provide service in exchange for
the award — the requisite service period (which is usually the vesting period). The standard also
requires the Bank to estimate the number of instruments that will ultimately be issued, rather than
accounting for forfeitures as they occur.
The Bank is required to apply SFAS No. 123(R) to all awards granted, modified or settled in our
first reporting period under U.S. GAAP after June 15, 2006. The Bank is also required to use either
the "modified prospective method" or the "modified retrospective method." Under the modified
prospective method, the Bank must recognize compensation cost for all awards after the Bank adopts
the standard and for the unvested portion of previously granted awards that are outstanding on that
date.
Under the modified retrospective method, the Bank must restate its previously issued financial
statements to recognize the amounts the Bank previously calculated and reported on a pro forma
basis, as if the prior standard had been adopted.
Under both methods, we are permitted to use either a straight line or an accelerated method to
amortize the cost as an expense. The standard permits and encourages early adoption.
The Bank intends to follow prospective method. If the Bank were to adopt SFAS No. 123(R) using the
modified retrospective method, its net income would have been Rs. 900.9 million less than reported
in the year ended March 31,2005 and Rs. 1,229.9 million less than reported in the fiscal year ended
March 31, 2006.
FASB Statement No. 154, Accounting Changes and Error Corrections
,
a replacement of APB Opinion No.
20 and FASB Statement No. 3, requires retrospective application to prior periods' financial
statements of changes in accounting principle, unless it is impracticable to determine either the
period-specific effects or the cumulative effect of the change. FASB Statement No. 154, Accounting
Changes and Error Corrections
,
will not have a material effect on the Bank's financial position or
results of operation.
In February 2006, the FASB issued SFAS No. 155 "Accounting for Certain Hybrid Instruments" which
permits, but does not require, fair value accounting for any hybrid financial instrument that
contains an embedded derivative and would otherwise require bifurcation in accordance with SFAS
133. The statement is effective as of April 1, 2007. The adoption of SFAS no. 155 is not expected
to have a material impact on the future Consolidated Financial Statement.
In March 2006, the FASB issued SFAS No.156, "Accounting for Servicing of Financial Assets, an
amendment to FASB Statement No. 140", which permits but does not require an entity to account for
one or more classes of servicing rights at fair value, with changes in fair value recorded in
Consolidated Statement of Income. The statement is effective April 1, 2007. The bank is currently
evaluating this standard to determine whether it will have a material effect on the bank's future
financial position or results of operation.
In September 2006, the FASB issued SFAS No.157, "Fair Value Measurements". This statement
defines fair value, establishes a framework for measuring fair value in generally accepted
accounting principles (GAAP), and expands disclosures about fair value measurements. This statement
applies under other accounting pronouncements that require or permit fair value measurements. The
statement is effective November 2007. The bank is currently evaluating this standard to determine
whether it will have a material effect on the bank's future financial position or results of
operation.
In June 2006, the FASB issued FIN No. 48, "Accounting for uncertainty in Income Taxes- an
interpretation of FASB statement No. 109". This Interpretation clarifies the accounting for
uncertainty in income taxes recognized in accordance with FASB Statement No. 109, Accounting for
Income Taxes. This Interpretation prescribes a recognition threshold and measurement attribute for
the financial statement recognition and measurement of a tax position taken or expected to be taken
in a tax return besides it also provides guidance on several other similar issues. This
interpretation is effective December 2006. The bank is currently
evaluating this standard to determine whether it will have a material
effect on the bank's future financial position or result of its
operations.
w
.
Convenience Translation
The
accompanying financial statements have been expressed in Indian rupees ("Rs. "), the Bank's
functional currency. For the convenience of the reader, the financial statements as of and for
the year ended March 31, 2006 have been translated into U.S.
dollars at US$ 1.00 = Rs. 44.48
based on the noon buying rate for cable transfers on March 31, 2006 as certified for customs
purposes by the Federal Reserve Bank of New York. Such translation should not be construed as a
representation that the rupee amounts have been or could be converted into United States dollars
at that or any other rate, or at all.
x.  Reclassifications
Certain
amounts in fiscal 2004 and fiscal 2005 have been reclassified to
conform to the presentation in fiscal 2006. These reclassifications
have no effect on the stockholders' equity or net income as
previously reported.
3. Cash and cash equivalents
Cash and cash equivalents as of March 31, 2005 and 2006 include balances of Rs. 22,965.6
million, Rs. 27,989.0 million respectively, maintained with the RBI to meet the Bank's cash
reserve ratio requirement. This balance is subject to withdrawal and usage restrictions.
4. Term placements
Term
placements consist of placements with banks and financial institutions in the ordinary
course of business. These placements have original maturities for periods between 3 months and 7
years.
F-14
Table of Contents
5. Investments, held for trading
The portfolio of trading securities at March 31, 2005 and 2006 is as follows:
As of March 31, 2005
Gross
Gross
Amortized
unrealized
Unrealized
Fair
Cost
gains
Losses
Value
(In millions)
Government of India
securities
Rs.
1,278.5
Rs.
—
Rs.
—
Rs.
1,278.5
Total
Rs.
1,278.5
Rs.
—
Rs.
—
Rs.
1,278.5
As of March 31, 2006
Gross
Gross
Amortized
unrealized
unrealized
Fair
Cost
gains
losses
Value
(In millions)
Government of India
securities
Rs.
2,948.1
Rs.
6.1
Rs.
8.6
Rs.
2,945.6
Total
Rs.
2,948.1
Rs.
6.1
Rs.
8.6
Rs.
2,945.6
Total
US$
66.3
US$
0.1
US$
0.2
US$
66.2
6. Investments, available for sale
The portfolio of available for sale securities at March 31, 2005 and 2006 is as follows:
As of March 31, 2005
Gross
Gross
Amortized
unrealized
unrealized
Fair
cost
gains
losses
value
(In millions)
Government of India
securities
Rs.
110,997.7
Rs.
1,015.2
Rs.
657.6
Rs.
111,355.3
Securities issued
by Government of
India sponsored
institutions
25,010.5
592.7
134.9
25,468.3
State government
securities
484.6
2.2
14.6
472.2
Securities issued
by state government
sponsored
institutions
349.2
24.1
—
373.3
Credit substitutes
(See Note 8)
13,372.4
554.3
45.8
13,880.9
Corporate bonds
588.5
—
0.4
588.1
Fixed
maturity
investments
150,802.9
2,188.5
853.3
152,138.1
Mortgage-backed
securities
11,441.0
111.2
70.6
11,481.6
Asset-backed
securities
30,611.5
329.8
201.6
30,739.7
Equity securities
291.4
54.7
7.8
338.3
Mutual fund units
9,586.3
10.6
1.8
9,595.1
Total
Rs.
202,733.1
Rs.
2,694.8
Rs.
1,135.1
Rs.
204,292.8
Securities with
gross unrealized
losses
Rs.
103,551.3
Securities with
gross unrealized
gains
100,741.5
Rs.
204,292.8
F-15
Table of Contents
As of March 31, 2006
Gross
Gross
Amortized
unrealized
unrealized
Fair
cost
gains
losses
value
(In millions)
Government of India
securities
Rs.
189,200.9
Rs.
405.1
Rs.
1,945.0
Rs.
187,661.0
Securities issued
by Government of
India sponsored
institutions
27,772.2
105.1
450.8
27,426.5
State government
securities
459.4
0.1
12.1
447.4
Securities issued
by state government
sponsored
institutions
315.0
6.7
0.3
321.4
Credit substitutes
(See Note 8)
9,625.6
170.6
44.9
9,751.3
Corporate bonds
150.0
—
0.9
149.1
Fixed
maturity
investments
227,523.1
687.6
2,454.0
225,756.7
Mortgage-backed
securities
17,158.8
90.7
194.7
17,054.8
Asset-backed
securities
27,338.6
34.5
247.0
27,126.1
Equity securities
275.3
54.1
3.9
325.5
Mutual fund units
3,187.1
6.8
—
3,193.9
Total
Rs.
275,482.9
Rs.
873.7
Rs.
2,899.6
Rs.
273,457.0
TOTAL
US$
6,193.5
US$
19.6
US$
65.2
US$
6,147.9
Securities with
gross unrealized
losses
Rs.
197,275.2
Securities with
gross unrealized
gains
76,181.8
Rs.
273,457.0
US$
6,147.9
Investments include Rs. 24,017.3 as of March 31, 2005 and Rs. 90,102.5 as of March 31, 2006
respectively, which have been kept as margins for clearing, collateral borrowing and lending
obligation (CBLO) and real time gross settlement (RTGS). These have been kept with the Clearing
Corporation of India Limited and RBI.
The Bank conducts a review each year to identify and evaluate investments that have
indications of possible impairment. An investment in an equity or debt security is impaired if its
fair value falls below its cost and the decline is considered other than temporary. Factors
considered in determining whether a loss is temporary include length of time and extent to which
fair value has been below cost, the financial condition and near term prospects of the issuer, and
the Bank's ability and intent to hold the investment for a period sufficient to allow for any
anticipated recovery. The Bank evaluated the unrealized loss on its
investment and has fully recognized
an expense of Rs. 714.3 million (previous year: nil) as other
than temporary impairment in fiscal 2006. The Bank believes that the
other unrealized losses on its investments in equity and debt securities as of March 31, 2006 are
temporary in nature. The Bank's review of impairment generally entails:
•
identification and evaluation of investments that have indications of possible impairment;
•
analysis of individual investments that have fair values of
less than 95% of amortized cost, including consideration of the length of time the investment has
been in an unrealized loss position;
•
analysis of evidential matter, including an evaluation of factors or triggers that would
or could cause individual investments to have other-than temporary impairment; and
•
documentation of the results of these analyses, as required under business policies.
F-16
Table of Contents
The gross unrealized losses and fair value of available for sale securities at March 31,
2006 is as follows:
As of March 31, 2006
Less Than 12 months
12
months or greater
Unrealized
Fair Value
Unrealized losses
Fair Value
losses
(In millions)
Government of India securities
Rs.
134,447.6
Rs.
1,945.0
Rs.
—
Rs.
—
Securities issued by Government
of India sponsored institutions
20,926.2
450.8
—
—
State government securities
386.0
12.1
—
—
Securities issued by state
government sponsored institutions
4.8
0.3
—
—
Credit substitutes (See Note 8)
3,556.2
44.9
—
—
Corporate Bonds
149.1
0.9
—
—
Fixed maturity investments
159,469.9
2,454.0
—
—
Mortgage-backed securities
11,147.5
194.7
—
—
Asset-backed securities
26,227.3
247.0
—
—
Equity securities
47.2
3.9
—
—
Mutual fund units
383.3
—
—
—
Total
Rs.
197,275.2
Rs.
2,899.6
Rs.
—
Rs.
—
Total
US$
4,435.1
US$
65.2
US$
—
US$
—
The contractual residual maturity of fixed maturity available for sale securities as of
March 31, 2006 is set out below:
As of March 31, 2006
Amortized cost
Fair value
Fair value
(In millions)
Within one year
Rs.
33,839.9
Rs.
33,853.2
US$
761.1
Over one year through five years
109,395.8
108,415.2
2,437.4
Over five years through ten years
58,688.7
58,216.2
1,308.8
Over ten years
25,598.7
25,272.1
568.2
Total
Rs.
227,523.1
Rs.
225,756.7
US$
5,075.5
AFS
investments of Rs. 64,924.5 million, Rs. 111,827.4 million and Rs. 188,108.4
million as of March 31, 2004, March 31, 2005 and March 31, 2006, respectively, are held to
meet the Bank's statutory liquidity ratio requirements. These balances are subject to
withdrawal and usage restrictions, but may be freely traded by the Bank within those
restrictions.
Interest and dividends on available for sale securities and gross realized gains and
gross realized losses from sales of such securities are set out below:
F-17
Table of Contents
Year ended March 31,
2004
2005
2006
2006
(In millions)
Gross realized gains on sale
Rs.
710.3
Rs.
1,349.9
Rs.
694.3
US$
15.6
Gross realized losses on sale
(758.6
)
(1,155.6
)
(274.0
)
(6.2
)
Realized gains (losses), net
(48.3
)
194.3
420.3
9.4
Dividends and interest
8,604.8
10,605.7
12,969.6
291.7
Total
Rs.
8,556.5
Rs.
10,800.0
Rs.
13,389.9
US$
301.1
7. Investments, held to maturity
There were no HTM securities as of March 31, 2005 and March 31, 2006.
Interest
on held to maturity securities is Rs. 2,882.5 million for
2004, Rs. 793.4 million for 2005 and nil for 2006.
In the year ended March 31, 2005, because interest rates were rising in the Indian market,
the Bank elected to transfer investments with a fair value of Rs. 11.2 billion from its HTM
portfolio to its AFS portfolio because these investments were yielding higher than prevailing
market yields. This
transfer was permitted by RBI regulations. However, under U.S. GAAP, the Bank's HTM portfolio was deemed "tainted" and the Bank was
required to re-classify the remaining HTM portfolio as AFS. The Bank is not permitted to establish
a new HTM portfolio under U.S. GAAP until after March 31, 2007 and, accordingly, the Bank's
investment classification under U.S. GAAP and Indian GAAP could vary materially in the future.
This reclassification resulted in an increase to shareholders' equity of Rs. 1,222.2 million
and had no impact on net income during the year ending March
31, 2005.
8. Credit Substitutes
Credit substitutes consist of securities that the Bank invests in as part of an overall
extension of credit to certain customers. Such securities share many of the risk and reward
characteristics of loans and are managed by the Bank together with other facilities extended to the
same customers. The fair values of credit substitutes by type of instrument as of March 31, 2005,
March 31, 2006 are as follows:
As of March 31,
2005
2006
Amortized cost
Fair value
Amortized cost
Fair value
(In millions)
Available for sale credit
substitute securities:
Debentures
Rs.
11,508.7
Rs.
12,018.7
Rs.
9,183.0
Rs.
9,308.1
Preferred shares
566.4
564.9
442.6
443.2
Commercial paper
1,297.3
1,297.3
—
—
Total
Rs.
13,372.4
Rs.
13,880.9
Rs.
9,625.6
Rs.
9,751.3
Total
US$
216.4
US$
219.2
F-18
Table of Contents
The
bank has no credit substitutes in the held to maturity
category.
The fair values of credit substitutes have been analyzed as follows:
As of March 31,
2005
2006
2006
(In millions)
Performing
Rs.
13,845.2
Rs.
9,751.3
US$
219.2
Impaired—gross balance
89.3
95.4
2.1
Less amounts provided for other than
temporary impairments
(53.6
)
(95.4
)
(2.1
)
Impaired credit substitutes, net
35.7
—
—
Total credit substitutes, net
Rs.
13,880.9
Rs.
9,751.3
US$
219.2
F-19
Table of Contents
Impaired credit substitutes as of March 31, 2005 and March 31, 2006:
As of March 31
2005
2006
2006
(In millions)
Gross impaired credit substitutes:
—on accrual status
Rs.
—
Rs.
—
US$
—
—on non-accrual status
89.3
95.4
2.1
Total
Rs.
89.3
Rs.
95.4
US$
2.1
Gross impaired credit substitutes by industry:
—Electronics
Rs.
—
Rs.
95.4
US$
2.1
—Financial institution
89.3
—
—
Total
Rs.
89.3
Rs.
95.4
US$
2.1
Average impaired credit substitutes
Rs.
139.3
Rs.
92.4
US$
2.1
Interest foregone on impaired credit substitutes
Rs.
—
Rs.
—
US$
—
Interest income recognized on impaired credit substitutes
Rs.
—
Rs.
—
US$
—
Interest income recognized on impaired credit
substitutes on a cash basis
Rs.
—
Rs.
—
US$
—
As of March 31, 2006, the Bank has no additional funds committed to borrowers whose credit
substitutes were impaired.
9. Securities purchased under resell agreements
Securities purchased under agreements to resell are classified separately from
investments and generally mature within 14 days of the transaction date. Such resell transactions
are recorded at the amount of cash advanced on the transaction. Resell transactions outstanding as
of March 31, 2005 and March 31, 2006 are Rs. Nil
and Rs. 4,200.0 million respectively.
F-20
Table of Contents
10. Loans
Loan
balances include Rs. 14,190.0 and Rs. 47,100.0 as of
March 31, 2005 and March 31, 2006 for assets which have been pledged as collateral for borrowings and are therefor restricted.
Loans
by facility as of March 31, 2005 and March 31, 2006
are as follows:
As of March 31,
2005
2006
2006
(In millions)
Retail Loans:
Auto loans
Rs.
21,055.1
Rs.
51,184.4
US$
1,150.8
Commercial vehicle and construction equipment
finance
21,924.2
43,613.2
980.5
Personal loans
20,518.3
47,775.6
1,074.1
Loans against securities
12,347.2
17,669.8
397.3
Two-wheeler loans
10,418.0
19,661.2
442.0
Retail business banking
11,050.7
29,291.6
658.6
Credit cards
6,892.9
13,758.0
309.3
Other retail loans
8,459.6
6,347.6
142.7
Subtotal
112,666.0
229,301.4
5,155.3
Wholesale loans:
Working capital finance
Rs.
72,397.6
Rs.
78,693.4
US$
1,769.2
Term loans
76,861.8
92,932.8
2,089.2
Sub total
Rs.
149,259.4
Rs.
171,626.2
US$
3,858.4
Gross loans
261,925.4
400,927.6
9,013.7
Less: Allowance for credit losses
5,438.5
5,653.3
127.2
Total
Rs.
256,486.9
Rs.
395,274.3
US$
8,886.5
The contractual residual maturity of gross loans as of March 31, 2006 is set out below:
As of March 31, 2006
Working
Capital
Term
Retail
Finance
loans
loans
Total
(In millions)
Maturity profile of loans:
Within one year
Rs.
53,124.6
Rs.
45,057.2
Rs.
88,119.4
Rs.
186,301.2
Over one year through
five years
25,568.8
26,675.4
134,689.4
186,933.6
After five years through
ten years
—
21,200.2
6,492.6
27,692.8
Total gross loans
Rs.
78,693.4
Rs.
92,932.8
Rs.
229,301.4
Rs.
400,927.6
Total gross loans
US$
1,769.2
US$
2,089.3
US$
5,155.2
US$
9,013.7
F-21
Table of Contents
Gross loans analyzed by performance are as follows:
As of March 31,
2005
2006
2006
(In millions)
Performing
Rs.
257,841.2
Rs.
396,144.1
US$
8,906.2
Impaired
4,084.2
4,783.5
107.5
Total
gross
loans
Rs.
261,925.4
Rs.
400,927.6
US$
9,013.7
Impaired loans as of March 31, 2005 and 2006 by facility are as follows:
As of March 31,
2005
2006
2006
(In millions)
Retail loans
Rs.
1,663.3
Rs.
3,193.5
US$
71.8
Wholesale loans
2,420.9
1,590.0
35.7
Gross impaired loans
4,084.2
4,783.5
107.5
Less: Specific allowance for credit losses
3,492.8
3,204.6
72.0
Impaired loans, net of specific allowance
Rs.
591.4
Rs.
1,578.9
US$
35.5
Gross impaired loans:
—without valuation allowance
Rs.
591.4
Rs.
1,578.9
US$
35.5
—with valuation allowance
3,492.8
3,204.6
72.0
Total
Rs.
4,084.2
Rs.
4,783.5
US$
107.5
Gross impaired loans:
—on accrual status
Rs.
—
Rs.
—
US$
—
—on non-accrual status
4,084.2
4,783.5
107.5
Total
Rs.
4,084.2
Rs.
4,783.5
US$
107.5
Gross impaired loans by industry:
—Automotive
Rs.
913.3
Rs.
954.4
US$
21.5
—Land transport
269.8
347.9
7.8
—Textiles
303.4
313.7
7.1
—Electronics
679.4
129.1
2.9
—Others (none > than 5% of impaired loans)
1,918.3
3,038.4
68.2
Total
Rs.
4,084.2
Rs.
4,783.5
US$
107.5
Summary information relating to impaired loans as of March 31, 2004, 2005 and 2006 is as
follows:
F-22
Table of Contents
As of March 31,
2004
2005
2006
2006
(In millions)
Average impaired
loans, net of
allowance
Rs.
476.6
Rs.
430.7
Rs.
1,085.1
US$
24.4
Interest
foregone on
impaired loans
274.2
216.7
208.5
4.7
Interest
income recognized
on impaired loans
31.6
0.6
5.3
0.1
Interest
income recognized
on impaired loans
on a cash basis
Rs.
31.6
Rs.
0.6
Rs.
5.3
US$
0.1
As
of March 31, 2006, the Bank had no additional funds committed to borrowers whose
loans were impaired.
Changes in the allowance for credit losses are as follows:
As of March 31,
2005
2006
2006
(In millions)
Specific allowance for credit
losses, beginning of period
Rs.
2,722.7
Rs.
3,492.8
US$
78.5
Gross provision for credit losses
2,655.8
4,804.1
108.0
Allowance no longer required due to:
Cash recoveries
(781.7
)
(275.1
)
(6.2
)
Write-offs
(1,104.0
)
(4,817.2
)
(108.3
)
Specific allowance for credit
losses, end of period
Rs.
3,492.8
Rs.
3,204.6
US$
72.0
Unallocated allowance for credit
losses, beginning of period
771.6
1,945.7
43.7
Additions during the period
1,174.1
503.0
11.3
Unallocated allowance for credit
losses, end of period
1,945.7
2,448.7
55.0
Total allowance for credit
losses, end of period
Rs.
5,438.5
Rs.
5,653.3
US$
127.0
Interest and fees on loans  by facility are as follows:
Years ended March 31,
2004
2005
2006
2006
(In millions)
Wholesale
Rs.
6,875.1
Rs.
8,126.6
Rs.
13,989.4
US$
314.5
Retail loans
4,829.9
8,304.8
14,864.4
334.2
Total
Rs.
11,705.0
Rs.
16,431.4
Rs.
28,853.8
US$
648.7
F-23
Table of Contents
11.
Sales/Transfer of loans
The
following table summarizes pre-tax gains on securitizations and certain cash flows received from
customers and paid to SPEs for sales that were completed during the
years ended March 31, 2004, March 31, 2005
and March 31, 2006:
Years ended March 31,
2004
2005
2006
2006
(In millions)
Sale consideration
from new
securitizations/transfer
Rs.
5,917.4
Rs.
48,660.0
Rs.
19,733.3
US$
443.6
Less: Book value of
finance receivables
derecognized
5,772.0
48,022.2
19,752.9
444.0
Less: Estimated costs
of servicing
21.6
15.3
11.7
0.3
Pre-tax gains on
securitizations
Rs.
123.8
Rs.
622.5
Rs.
(31.3
)
US$
(0.7
)
Cash flow information
Collections against
securitized
receivables
Rs.
682.1
Rs.
12,635.7
Rs.
28,902.8
US$
649.8
Payments made to SPEs
Rs.
264.4
Rs.
10,666.2
Rs.
28,861.6
US$
648.9
Cash flows
on retained interests
Rs.
21.1
Rs.
328.8
Rs.
304.7
US$
6.9
The
Bank has relied upon
market information and its past experience for the purpose of determining the assumptions below. Key assumptions used in
measuring the retained interests in finance receivables of sales completed during the years ended
March 31, 2005 and March 31, 2006 as of the dates of such sales were as follows:
For the year ended
For the year ended
March 31, 2005
March 31, 2006
Key assumptions: (rates per
annum)
Annual prepayment rate
6.0
%
6.0
%
Expected credit losses
0.5
%
0.5
%
Credit losses and prepayment losses as a percentage to the gross loans disbursed are
estimated on the basis of historical losses on a similar portfolio.
Other key disclosures are as follows:
As of March 31,
2005
2006
2006
(In millions)
Finance
receivables held by
SPEs
Rs.
60,263.3
Rs.
40,593.4
US$
912.6
Delinquencies
204.8
408.2
9.2
Credit losses
162.6
183.5
4.1
Retained
interest in sold
receivables,
consisting of
subordinated
securities
954.5
669.8
15.1
The table below outlines the economic assumptions and the sensitivity of the estimated
fair value of retained interests in finance receivables as of March
31, 2005 and March 31, 2006, to immediate 10%
and 20% changes in those assumptions:
As of March 31,
2005
2006
2006
(In millions)
Carrying value/fair value of retained
interests
Annual prepayment rate:
Impact of 10% adverse change
Rs.
4.2
Rs.
0.6
US$
0.0
Impact of 20% adverse change
8.3
1.2
0.0
Expected credit losses:
Impact of 10% adverse change
27.2
18.4
0.4
Impact of 20% adverse change
54.2
36.7
0.8
F-24
Table of Contents
The discount rate used for the valuation of retained interests is the rate of return to
the transferees of the various pools of securitized receivables and, therefore, is not subject to
change. Weighted average life in years of the securitized receivables is also not subject to
change except in case of a change in the prepayment rate assumption. Consequently, the above
sensitivity analysis does not include the impact on the estimated fair values of the retained
interests due to adverse change in the weighted average life in years and the discount rate.
These sensitivities are hypothetical and should be used with appropriate caution. A 10%
change in the assumptions may not result in lineally proportionate changes in the fair values of
retained interests. Adverse changes assumed in the above analysis and the resultant change in the
fair values of retained interests are calculated independent of each other. In reality, any
change in one factor may cause change in the other factors.
12. Concentrations of credit risk
Concentrations of credit risk exist when changes in economic, industry or geographic factors
similarly affect groups of counterparties whose aggregate credit exposure is material in relation
to the Bank's total credit exposure. The Bank manages its credit risk collectively for its loan
portfolio and credit substitute securities as these instruments are invested in as part of an
overall lending program for corporate customers; accordingly, information on concentrations of
credit risk has been provided for these exposures together.
The Bank's portfolio of loans and credit substitute securities is broadly diversified along
industry and product lines, and as of March 31, 2005 and 2006 the exposures are as set forth
below. The Bank does not consider retail loans a specific industry for this purpose. However,
retail business banking loans are classified in the appropriate categories below and loans to
commercial vehicle operators are included in land transport below.
As of March 31, 2005
Fair values of
Gross
credit
Loans
substitutes
Total
%
Category
(In millions, except percentages)
Land transport
Rs.
29,860.5
Rs.
—
Rs.
29,860.5
10.8
%
Automotive
manufacturers
25,667.6
432.4
26,100.0
9.5
Telecommunications
5,369.4
4,217.5
9,586.9
3.5
Hire purchase and
finance
5,422.0
1,470.5
6,892.5
2.5
Iron and steel
4,840.1
910.6
5,750.7
2.1
Others (none >
than 2%)
190,765.8
6,849.9
197,615.7
71.6
Total
Rs.
261,925.4
Rs.
13,880.9
Rs.
275,806.3
100
%
As of March 31, 2006
Fair values of
Gross loans
credit substitutes
Total
Total
%
Category
(In millions, except percentages)
Automotive manufacturers
Rs.
40,970.3
Rs.
38.0
Rs.
41,008.3
US$
921.9
10.0
%
Land Transport
36,841.6
—
36,841.6
828.3
9.0
Retail Traders
14,357.2
39.6
14,396.8
323.7
3.5
Activities allied to Agriculture
11,559.7
—
11,559.7
259.9
2.8
Heavy Engineering
10,659.7
303.7
10,963.5
246.5
2.7
NBFC / Investment Companies
10,430.3
346.8
10,777.1
242.3
2.6
Telecommunication
5,217.1
3,671.3
8,888.4
199.8
2.2
Others (none > than 2%)
270,891.7
5,351.9
276,243.5
6,210.5
67.2
Total
Rs.
400,927.6
Rs.
9,751.3
Rs.
410,678.9
US$
9,232.9
100.0
%
The Bank has a geographic concentration of credit risk, with exposure to borrowers
based in Western India (including
F-25
Table of Contents
Mumbai), comprising 50.2% and 39.0% of the total loan and credit substitute security
portfolio as of March 31, 2005 and March 31, 2006 respectively. While such borrowers are based
in Western India they may use the funds provided by the Bank for a variety of uses that may or
may not be related to the economy in Western India.
Loan and credit substitute exposures as of March 31, 2005 and 2006 based on the region in
which the instruments are originated are as follows (which may be or may not be where funds are
used):
As of March 31, 2005
Fair values of
Gross
credit
Total
loans
substitutes
exposure
%
Region of origination
(In millions, except percentages)
Mumbai
Rs.
72,690.3
Rs.
10,501.0
Rs.
83,191.3
30.2
%
Western region, other than
Mumbai
53,321.8
1,795.2
55,117.0
20.0
Northern region
72,350.5
1,304.4
73,654.9
26.7
Eastern region
26,732.9
—
26,732.9
9.7
Southern region
36,829.9
280.3
37,110.2
13.4
Total
Rs.
261,925.4
Rs.
13,880.9
Rs.
275,806.3
100.0
%
As of March 31, 2006
Fair values of
Gross
credit
Total
Total
loans
substitutes
exposure
exposure
%
Region of origination
(In millions, except percentages)
Mumbai
Rs.
80,051.8
Rs.
7,305.6
Rs.
87,357.4
US$
1,964.0
21.3
%
Western region, other than
Mumbai
72,151.2
482.8
72,634.0
1,633.0
17.7
Northern region
97,010.2
1,664.4
98,674.6
2,218.4
24.0
Eastern region
35,416.8
—
35,416.8
796.2
8.6
Southern region
116,297.6
298.5
116,596.1
2,621.3
28.4
Total
Rs.
400,927.6
Rs.
9,751.3
Rs.
410,678.9
US$
9,232.9
100.0
%
F-26
Table of Contents
The Bank's exposures to its ten largest borrowers as of March 31, 2006, computed as per
RBI guidelines, which include the aggregate of the higher of the outstanding balance or the limit
on loans, investments (including credit substitutes) and non-funded exposures, are as follows:
March
31, 2005
March
31, 2006
Non-
Funded
Funded
Total
Funded
Non- Funded
Exposure
Exposure
Exposure
Exposure
Exposure
Total Exposure
Total Exposure
(In millions)
Borrower 1
Rs.
10,646.6
Rs.
—
Rs.
10,646.6
Rs.
11,991.4
Rs.
—
Rs.
11,991.4
US$
269.6
Borrower 2
6,698.9
—
6,698.9
6,520.2
—
6,520.2
146.6
Borrower 3
—
—
—
6,000.0
—
6,000.0
134.9
Borrower 4
4,527.5
940.2
5,467.7
4,500.0
361.7
4,861.7
109.3
Borrower 5
5,297.7
60.0
5,357.7
4,845.2
—
4,845.2
108.9
Borrower 6
743.6
3,074.2
3,817.8
113.8
4,600.7
4,714.5
106.0
Borrower 7
—
—
—
3,181.8
1,000.0
4,181.8
94.0
Borrower 8
—
—
—
3,500.0
—
3,500.0
78.7
Borrower 9
3,266.0
110.0
3,376.0
3,266.0
202.0
3,468.0
78.0
Borrower 10
Rs.
36.7
Rs.
3,250.0
Rs.
3,286.7
Rs.
36.7
Rs.
3,250.0
Rs.
3,286.7
US$
73.9
Information in respect of earlier years is not provided for the above borrowers if they
were then not among the top ten exposures.
13. Property and equipment
Property and equipment by asset category is as follows:
As of March 31,
2005
2006
2006
(In millions)
Land and premises
Rs.
2,912.2
Rs.
3,145.0
US$
70.7
Software and systems
1,586.5
2,155.3
48.5
Equipment and furniture
7,968.1
10,472.6
235.4
Property and
equipment, at cost
12,466.8
15,772.9
354.6
Less: Accumulated
depreciation
5,383.6
7,058.3
158.7
Property and
equipment, net
Rs.
7,083.2
Rs.
8,714.6
US$
195.9
Depreciation charged for the years ended March 31, 2004, 2005 and 2006 was Rs. 1,254.9
million, Rs. 1,440.7 million and Rs. 1,812.1 million, respectively.
F-27
Table of Contents
14. Other assets
Other assets include the following:
As of March 31,
2005
2006
2006
(In millions)
Checks in the
course of
collection
Rs.
76.1
Rs.
91.7
US$
2.1
Security
deposits for leased
property
911.1
1,089.9
24.5
Sundry
accounts receivable
1,979.8
3,763.1
84.6
Advance tax
(net of provision
for taxes)
1,672.0
3,487.8
78.4
Advances
778.1
836.5
18.8
Prepaid
expenses
1,360.5
3,336.4
75.0
Restricted
cash/
securitization
margin for credit
enhancement and
securitized
transactions
845.1
443.9
10.0
Other
7,592.6
13,227.9
297.4
Total
Rs.
15,215.3
Rs.
26,277.2
US$
590.8
15. Deposits
Deposits include demand deposits, which are non-interest-bearing, and savings and time
deposits, which are interest-bearing. Deposits as of March 31, 2005 and 2006 are as follows:
As of March 31,
2005
2006
2006
(In millions)
Interest-bearing:
Savings deposits
Rs.
114,183.8
Rs.
161,857.9
US$
3,638.9
Time deposits
143,054.1
248,323.3
5,582.8
Total
interest-bearing
deposits
257,237.9
410,181.2
9,221.7
Non-interest
bearing deposits
106,304.6
147,124.2
3,307.6
Total
Rs.
363,542.5
Rs.
557,305.4
US$
12,529.3
As of March 31, 2005 and March 31, 2006 time deposits of Rs. 107,111.0 million
and Rs. 154,259.1 million, respectively, have a residual maturity of less than one year. The
balance of the deposits, mature between one and five years.
As of March 31, 2005 and March 31, 2006 time deposits in excess of Rs. 0.1 million
aggregated Rs. 140,245.8 million and
Rs. 226,729.8 million, respectively.
F-28
Table of Contents
16. Short-term borrowings
Short-term borrowings are mainly comprised of money market borrowings. These borrowings
are unsecured and are utilized by the Bank for its treasury operations. Short-term borrowings
as of March 31, 2005 and March 31, 2006 are comprised of the following:
As of March 31,
2005
2006
2006
(In millions)
Borrowed in the call market
Rs.
33,215.9
Rs.
12,725.1
US$
286.1
Term borrowings from
institutions/banks
4,783.0
1,374.6
30.9
Foreign currency borrowings
9,890.1
14,477.0
325.5
Bills rediscounted
—
30,100.0
676.7
Interbank risk participation
14,190.1
17,000.0
382.2
Total
Rs.
62,079.1
Rs.
75,676.7
US$
1,701.4
Total borrowings outstanding:
Maximum amount
outstanding
Rs.
62,079.1
Rs.
100,008.2
US$
2,248.4
Average amount
outstanding
Rs.
42,594.6
Rs.
73,569.3
US$
1,654.0
Weighted average interest
rate
4.1
%
4.8
%
4.8
%
17. Long-term debt
Long-term debt as of March 31, 2005 and March 31, 2006 is comprised of the following:
As of March 31,
2005
2006
2006
(In millions)
Subordinated debt
Rs.
5,000.0
Rs.
17,020.0
US$
382.6
Others
28.1
8.6
0.2
Total
Rs.
5,028.1
Rs.
17,028.6
US$
382.8
The scheduled maturities of long-term debt are set out below:
As of March 31,
2006
2006
(In millions)
Due in the fiscal year ending March 31:
2007
Rs.
1,003.5
US$
22.5
2008
2.9
0.1
2009
2.2
0.1
2010
—
—
2011
—
—
Thereafter
16,020.0
360.1
Total
Rs.
17,028.6
US$
382.8
F-29
Table of Contents
The Bank issued unsecured non-convertible subordinated debt
securities, which qualify as Tier 2 risk-based capital under the RBI's guidelines for assessing
capital adequacy. The Bank issued three tranches of subordinated debt securities during calendar
years 1998, 1999 and 2001 at coupon rates of 13.0%, 13.75% and 11.00%, respectively. The 1998
tranche was repaid at maturity in fiscal 2004. The 1999 and 2001 tranches are repayable in fiscal
2007.
During
fiscal 2004, the Bank issued unsecured subordinated debt securities
aggregating Rs. 4.0 billion, of which Rs. 3.95 billion carries a coupon rate of 5.90% and matures
in May 2013 and Rs. 50 million carries a coupon rate of 6.0% and matures in May 2016.
During fiscal 2006 the Bank issued Rs. 12.02 billion of unsecured subordinated debt at an
annualized coupon between 7.5% to 8.6% and having a maturity ranging from 9 to 10 years.
Based on balance term to maturity as at March 31, 2006, 94.12% of the book value of
subordinated debt is considered as Tier 2 capital for the purpose of capital adequacy computation.
Other long term debt consists of capital leases and a loan from the Indian
Renewable Energy Development Authority used to finance solar equipment.
18. Accrued expenses and other liabilities
Accrued expenses and other liabilities include the amounts set forth below. The Bank acts as a
payment bank to corporations making initial public offerings, and bills payable include demand
drafts issued to persons whose subscriptions for shares have been rejected.
As of March 31
2005
2006
2006
(In millions)
Bills payable
Rs.
15,547.3
Rs.
20,795.8
US$
467.5
Remittances in
transit
18,266.0
28,206.6
634.1
Accrued expenses
485.1
987.2
22.2
New account
deposits
3,414.7
5,982.6
134.5
Accounts payable
4,786.0
8,640.9
194.3
Others
7,214.4
12,588.7
283.1
Total
Rs.
49,713.5
Rs.
77,201.8
US$
1,735.7
19. Income taxes
The income tax expense comprises the following:
Years ended March 31,
2004
2005
2006
2006
(In millions)
Current income
tax expense
Rs.
2,427.2
Rs.
3,338.9
Rs.
3,622.2
US$
81.5
Deferred income tax
(benefit) expense
(588.4
)
(213.5
)
343.5
7.7
Income tax
expense
Rs.
1,838.8
Rs.
3,125.4
Rs.
3,965.7
US$
89.2
F-30
Table of Contents
The following is the reconciliation of estimated income taxes at the Indian statutory income
tax rate to income tax expense as reported:
Years ended March 31,
2004
2005
2006
2006
(In millions)
Net income before taxes
Rs.
6,593.3
Rs.
9,735.1
Rs.
13,175.3
US$
296.2
Effective statutory income
tax rate
35.87
%
36.59
%
33.66
%
33.66
%
Expected income tax expense
2,365.4
3,562.3
4,434.8
99.7
Adjustments to reconcile
expected income tax to actual
tax expense:
Permanent differences:
Stock-based compensation
(net of forfeitures)
48.5
113.5
15.7
0.4
Income exempt from
taxes
(529.4
)
(504.7
)
(531.2
)
(11.9
)
Other, net
(17.9
)
(66.2
)
39.4
0.8
Effect of change in
statutory tax rate
(27.8
)
20.5
7.0
0.2
Income tax expense
Rs.
1,838.8
Rs.
3,125.4
Rs.
3,965.7
US$
89.2
The tax effects of significant temporary differences are as follows:
As of March 31,
2005
2006
2006
(In millions)
Tax Effect of:
Deductible temporary differences:
Allowance for loan losses
Rs.
1,951.8
Rs.
1,696.9
US$
38.1
Unrealized loss on securities
available for sale
23.6
681.9
15.3
Other
221.6
607.8
13.7
Deferred tax asset
2,197.0
2,986.6
67.1
Taxable temporary differences:
Property and equipment
1,070.7
822.5
18.5
Unrealized gain on
securities available for sale
842.3
185.9
4.2
Unrealized gain on
investments transferred to
held to maturity category
—
—
—
Loan
origination cost
196.6
961.1
21.6
Deferred
tax liability
2,109.6
1,969.5
44.3
Net deferred tax (asset) liability
Rs.
(87.4
)
Rs.
(1,017.1
)
US$
(22.8
)
Management believes that the realization of the recognized deferred tax
assets is more likely than not based on expectations as to future taxable income.
For
the years ended March 31, 2005 and 2006 the Bank has recorded
income tax expense of Rs. 3,125.4 million and Rs. 3,965.7 million using an annual
effective tax rate of 32.1% and 30.1% respectively.
F-31
Table of Contents
20. Stock-based Compensation
The stock-based compensation plans of the Bank are as follows:
Employees Stock Option Scheme:
The shareholders of the Bank approved in January 2000 Plan "A", June 2003 Plan "B" Plan "C" in
June 2005 of the Employees' Stock Option Scheme (the "Plan"). Under the terms of each of these
Plans, the Bank may issue stock options to employees and directors of the Bank, each of which is
convertible into one equity share. The Bank reserved 10 million equity shares, with an aggregate
nominal value of Rs. 100 million, for issuance under each Plan.
Plan A provides for the issuance of options at the recommendation of the Compensation
Committee of the Board (the "Compensation Committee") at an average of the daily closing prices on
the Mumbai Stock Exchange during the 60 days preceding the date of grant of options, which was the
minimum prescribed option price under regulations then issued by the Securities and Exchange Board
of India ("SEBI").
Plan B & Plan C provide for the issuance of options at the recommendation of the Compensation
Committee at the closing price on the working day immediately preceding the date when options are
granted on an Indian stock exchange with the highest trading volume during the preceding two weeks,
which was the minimum prescribed option price under SEBI regulations.
Such options vest at the discretion of the Compensation Committee, subject to a maximum
vesting not exceeding five years, set forth at the time the grants are made. Such options are
exercisable for a period following vesting at the discretion of the Compensation Committee, subject
to a maximum of five years, as set forth at the time of the grant.
Activity in the options available to be granted under the Employee Stock Option Scheme is as
follows:
Options available to be granted
Years ending March 31,
2004
2005
2006
Options available to be
granted, beginning of year
2,048,300
1,585,800
3,432,200
Equity shares allocated for
grant under the plan
10,000,000
—
10,000,000
Options granted
(10,993,000
)
—
(8,097,300
)
Forfeited/lapsed
530,500
1,846,400
1,542,000
Options available to be
granted, end of year
1,585,800
3,432,200
6,876,900
Activity in the options outstanding under the Employee Stock Option Scheme is as follows:
Years ended March 31,
2004
2005
2006
Weighted
Weighted
Weighted
average
average
Average
exercise
exercise
Exercise
Options
price
Options
price
Options
Price
Options
outstanding,
beginning of year
6,602,900
Rs.
193.07
14,319,400
Rs.
325.42
10,313,500
Rs.
344.88
Granted
10,993,000
360.98
—
—
8,097,300
630.60
Exercised
(2,746,000
)
163.90
(2,159,500
)
215.73
(3,267,100
)
321.19
Forfeited
(530,500
)
251.07
(1,846,400
)
345.01
(1,542,000
)
499.10
Options
outstanding, end of
year
14,319,400
Rs.
325.42
10,313,500
Rs.
344.88
13,601,700
Rs.
503.18
Weighted average
fair value of
options granted
during the year
Rs.
374.10
Rs.
—
Rs.
630.60
F-32
Table of Contents
Employees
Welfare Trust
The Bank established an Employees Welfare Trust (the "EWT") in 1994 for the benefit of
the Bank's employees. The EWT borrowed funds from third parties and subscribed to an aggregate of
10,000,000 equity shares of the Bank at the same price as available to other shareholders, and from
time to time, also made open market purchases of shares. In pursuance of the Trust's objectives,
grants were allotted to employees, directors and advisors at prices designated by the trustees. The
vesting period varies at the discretion of the trustees from grant to grant, but is generally
between 12 and 24 months.
The Bank accounted for the equity shares of the Bank held by the EWT as
treasury shares until transferred and reports the external borrowings of the EWT as borrowings of
the Bank. Consequently, dividends paid to the EWT are eliminated, and the interest cost incurred by
the EWT and stock based compensation are charged as an expense by the Bank. The Bank has recognized
deferred stock- based compensation on each grant as the difference between the closing price on the
Bombay Stock Exchange Ltd. and the applicable grant price. The Bank has recognized stock-based
compensation expense under this scheme of Rs. 113.7 million and  Rs. 213.9 million,
for the years ended March 31, 2004 and 2005 respectively.
In fiscal 2006, there were no grants available to be allotted to the employees.
Activity in the grants available to be allotted under the EWT Plan is as follows:
Years ending March 31,
2004
2005
2006
Grants available to be allotted, beginning of year
1,250,775
276,775
—
Grants allotted
(974,000
)
(4,700
)
—
Grants sold in open market
—
(272,075
)
—
Grants cancelled
—
—
—
Grants available to be allotted, end of year
276,775
—
—
Activity in the allotted grants outstanding under the EWT Plan is as follows:
As of March 31,
2004
2005
2006
Weighted
Weighted
Weighted
Average
average
Average
Exercise
exercise
Exercise
Grants
price
Grants
price
Grants
Price
Grants allotted beginning of year
1,076,000
Rs.
38.64
1,670,500
Rs.
42.93
—
—
New grants
974,000
46.00
4,700
43.00
—
—
Grants exercised
(379,500
)
38.64
(1,675,200
)
42.60
—
—
Grants cancelled
—
—
—
—
—
—
Grants allotted, end of year
1,670,500
Rs.
42.93
—
Rs.
—
—
—
Weighted average fair value of grants
allotted during the year
Rs.
299.25
Rs.
402.00
—
F-33
Table of Contents
The following summarizes information about stock options outstanding as of March 31, 2006:
As of March 31, 2006
Number of
Weighted
Weighted
shares arising
Average
average
Plan
Range of exercise price
out of options
remaining life
Exercise price
Plan A
Rs. 131.33 to Rs. 226.96 (or  US$ 3.0 to  US$ 5.1)
2,67,900
—
Rs.
217.87
Plan B
Rs. 358.60 to  Rs. 366.30 (or  US$ 8.1 to  US$ 8.2)
6,027,800
*0.84
361.42
Plan C
Rs. 630.60 (US$ 14.2)
7,306,000
1.40
630.60
*
Weighted Average remaining life is computed for non-vested share based on total no. of shares
arising out of option.
21. Share Capital
During the year ended March 31, 2005 the Bank raised capital in the form of add on ADS, which
were listed on the New York Stock Exchange on January 21, 2005 at a price of US$  39.26 per ADS.
Each ADS represents three equity shares. The issue size was US$ 261 million plus a green shoe
option of 15% (US$ 39 million), which was exercised. Net of issue expenses, the Bank received US$
291 million (Rs. 12,747.6 million).
22. Retirement benefits
Gratuity
In accordance with Indian law, the Bank provides for gratuity, a defined benefit retirement
plan, covering eligible employees. The plan provides for lump sum payments to vested employees at
retirement, death while in employment or on termination of employment in an amount equivalent to
15 days' salary payable for each completed year of service. Vesting occurs upon completion of
five years of service. The Bank makes annual contributions to funds administered by trustees
and managed by Insurance companies for amounts notified by said insurance companies. The Bank
accounts for the liability for future gratuity benefits using the projected unit cost method
based on an annual actuarial valuation.
The following table sets out the funded status of the Gratuity Plan and the amounts recognized
in the Bank's financial statements as of March 31, 2005 and March 31, 2006:
As of March 31,
2005
2006
2006
(In millions)
Change in benefit obligations:
Projected benefit obligation ("PBO"), beginning of the period
Rs.
103.1
Rs.
142.7
US$
3.2
Service cost
14.2
21.4
0.5
Interest cost
7.4
9.7
0.2
Actuarial loss
24.1
35.9
0.8
Benefits paid
(6.1
)
(6.8
)
(0.2
)
Projected benefit obligation, end of the period
142.7
202.9
4.5
Change in plan assets:
Fair value of plan assets, beginning of the period
53.0
66.1
1.5
Actual return on plan assets
4.5
7.7
0.2
Employer contributions
16.1
42.0
0.9
Benefits paid
(6.1
)
(6.8
)
(0.2
)
Actuarial (loss) gain
(1.4
)
(5.3
)
(0.1
)
Fair value of plan assets, end of the period
66.1
103.7
2.3
Accrued benefit
Rs.
(76.6
)
Rs.
(99.2
)
US$
(2.2
)
F-34
Table of Contents
The Bank's expected contribution to the gratuity fund for the next fiscal year is
estimated at Rs. 56.7 million. The accumulated benefit obligation as of March 31, 2005 and 2006 was
Rs. 61.7 million and Rs. 86.5 million, respectively.
Net gratuity cost for the years ended March 31, 2004, 2005 and 2006 comprises the following
components:
Years ended March 31,
2004
2005
2006
2006
(In millions)
Service cost
Rs.
16.7
Rs.
14.2
Rs.
21.8
US$
0.5
Interest cost
4.7
7.4
9.7
0.2
Expected return on plan assets
(2.7
)
(4.2
)
(5.9
)
(0.1
)
Actuarial (gain) loss
14.6
26.7
31.3
0.7
Net gratuity cost
Rs.
33.3
Rs.
44.1
Rs.
56.9
US$
1.3
The assumptions used in accounting for the gratuity plan are set out below:
Years ended March 31,
2004
2005
2006
(%)
Discount rate
7.0
7.0
7.0
Rate of increase in compensation levels
of covered employees
10.0
10.0
10.0
Rate of return on plan assets
6.5
6.5
7.0
The following benefit payments, which reflect expected future service, as appropriate are expected
to be paid.
Year ending March 31,
(In millions)
2007
Rs.
2.6
2008
1.5
2009
8.6
2010
3.6
2011
4.7
Superannuation
Eligible employees of the Bank are entitled to receive retirement benefits under the Bank's
superannuation fund. The superannuation fund is a defined contribution plan under which the Bank
annually contributes a sum equivalent to 13% of the employee's eligible annual salary (15% for
the Managing Director) to the Life Insurance Corporation of India, which administers the fund. The Bank has no liability for
future superannuation fund benefits other than its annual contribution, and recognizes such
contributions as an expense in the year incurred. The Bank contributed Rs. 19.7 million, Rs. 25.0
million, Rs. 38.5 million to the superannuation plan for the years ended March 31, 2004, 2005 and
2006.
Provident fund
In accordance with Indian law, eligible employees of the Bank are entitled to receive
benefits under the provident fund, a defined contribution plan in which both the employee and the
Bank contribute monthly at a determined rate (currently 12% of an employee's salary). These
contributions are made to a fund set up by the Bank and administered by a board of trustees,
except that for certain lower paid employees the bank contributes 8.33% of the employee's salary
to the Pension Scheme administered by the Regional Provident Fund Commissioner. Employees are
credited with interest, which is subject to a government specified minimum rate. The Bank has no
liability for future provident fund benefits other than its annual contribution and the
shortfall, if any, between the government specified minimum rate and the yield on the fund's
assets, and recognizes such contributions as an expense in the year incurred. The Bank
contributed Rs. 71.1 million, Rs. 99.5 million and Rs. 162.4 million to the provident fund for the years ended
F-35
Table of Contents
March 31, 2004, 2005 and 2006, respectively.
23. Financial instruments
Foreign exchange and derivative contracts
The Bank enters into forward exchange contracts, currency options, forward rate agreements,
currency swaps and rupee interest rate swaps with inter-bank participants on its own account and
for customers. These transactions enable customers to transfer, modify or reduce their foreign
exchange and interest rate risks.
Forward exchange contracts are commitments to buy or sell foreign currency at a
future date at the contracted rate. Currency swaps are commitments to exchange cash flows by way of
interest in rupees against another currency and exchange of notional principal amount at maturity
based on predetermined rates. Rupee interest rate swaps are commitments to exchange fixed and
floating rate cash flows in rupees.
The market and credit risk associated with these products, as well as the operating
risks, are similar to those relating to other types of financial instruments. Market risk is the
exposure created by movements in interest rates and exchange rates, during the tenure of the
transaction. The extent of market risk affecting such transactions depends on the type and nature
of the transaction, the value of the transaction and the extent to which the transaction is
uncovered. Credit risk is the exposure to loss in the event of default by counter-parties. The
extent of loss on account of a counter-party default will depend on the replacement value of the
contract at the ongoing market rates.
Fair values for off balance sheet derivative financial instruments are based on quoted market
prices, except in the case of certain options and currency swaps where pricing models are used.
The following table presents the aggregate notional principal amounts of the Bank's
outstanding foreign exchange and interest rate derivative contracts as of March 31, 2005 and March
31, 2006, together with the fair values on each reporting date.
As of March 31,
2005
2006
2006
Fair
Fair
Fair
Notional
value
Notional
Value
Notional
value
(In millions)
Interest rate swaps
and forward rate
agreements
Rs.
780,211.6
Rs.
(79.7
)
Rs.
1,209,102.8
Rs.
(593.1
)
US$
27,183.1
US$
(13.3
)
Forward exchange
contracts, currency
swaps, currency
options and
interest rate caps
and floors
Rs.
571,445.0
Rs.
731.2
Rs.
845,329.3
Rs.
1,025.8
US$
19,004.7
US$
23.1
The Bank
has not designated the above derivative contracts as accounting
hedges and accordingly the contracts are recorded at fair value on
the balance sheet with changes in fair value recorded in earnings.
Guarantees
As a part of its commercial banking activities, the Bank has issued guarantees and
documentary credits, such as letters of credit, to enhance the credit standing of its customers.
These generally represent irrevocable assurances that the Bank will make payments in the event
that the customer fails to fulfill his financial or performance obligations. Financial guarantees
are obligations to pay a third party beneficiary where a customer fails to make payment towards a
specified financial obligation. Performance guarantees are obligations to pay a third party
beneficiary where a customer fails to perform a non-financial contractual obligation. The
guarantees are generally for a period not exceeding 18 months.
The credit risk associated with these products, as well as the operating risks, are similar
to those relating to other types of financial instruments.
The fair values of guarantees and documentary credits are estimated based on the portion of
unamortized fees currently charged for such contracts. Based on historical trends, the Bank has
recognized a liability of Rs. 162.8 million and Rs. 323.0 million as of March 31, 2005 and March
31, 2006 respectively, in respect of guarantees issued or modified after December 31, 2002.
Details of guarantees and documentary credits outstanding are set out below:
F-36
Table of Contents
As of March 31,
2005
2006
2006
(In millions)
Nominal values:
Bank guarantees:
Financial guarantees
Rs.
14,365.4
Rs.
21,141.0
US$
475.3
Performance
guarantees
9,954.4
12,940.9
290.9
Documentary credits
27,930.2
24,103.7
541.9
Total
Rs.
52,250.0
Rs.
58,185.6
US$
1,308.1
Estimated fair values:
Guarantees
Rs.
(145.4
)
Rs.
(171.1
)
US$
(3.8
)
Documentary
credits
(44.7
)
(38.6
)
(0.9
)
Total
Rs.
(190.1
)
Rs.
(209.7
)
US$
(4.7
)
As part of its risk management activities, the Bank continuously monitors the
credit-worthiness of customers as well as guarantee exposures. If a customer fails to perform a
specified obligation, a beneficiary may draw upon the guarantee by presenting documents in
compliance with the guarantee. In that event the Bank makes payment on account of the defaulting
customer, to the beneficiary up to the full notional amount of the guarantee. The customer is
obligated to reimburse the Bank for any such payment. If the customer fails to pay, the Bank
liquidates any collateral held and sets off accounts; if insufficient collateral is held, the Bank
recognizes a loss.
Loan sanction letters
The Bank issues sanction letters indicating its intent to provide new loans to
certain customers. The aggregate of loans contemplated in these letters that had not yet been made
was Rs. 110,754.2 million as of March 31, 2006. If the Bank were to make such loans, the interest
rates would be dependent on the lending rates in effect when the loans were disbursed. The Bank has
no commitment to lend under these letters. Among other things, the making of a loan is subject to a
review of the creditworthiness of the customer at the time the customer seeks to borrow, at which
time the Bank has the unilateral right to decline to make the loan.
24. Estimated fair value of financial instruments
The Bank's financial instruments include financial assets and liabilities recorded
on the balance sheet, including instruments such as foreign exchange and derivative contracts.
Management uses its best judgment in estimating the fair value of the Bank's financial instruments;
however, there are inherent weaknesses in any estimation technique. Therefore, for substantially
all financial instruments, the fair value estimates presented herein are not necessarily indicative
of all the amounts the Bank could have realized in a sales transaction as of March 31, 2005 and
March 31, 2006. The estimated fair value amounts as of March 31, 2005 and March 31, 2006 have been
measured as of the respective year ends, and have been not been re-evaluated or updated for
purposes of these financial statements subsequent to those respective dates. As such, the estimated
fair values of these financial instruments subsequent to the respective reporting dates may be
different than the amounts reported at each year end.
Financial instruments valued at carrying value:
The respective carrying values of certain on-balance-sheet financial instruments approximated
their fair value. These financial instruments include cash and amounts due from banks,
interest-bearing deposits in banks, securities purchased and sold under resale and repurchase
agreements, accrued interest receivable, short-term borrowings, acceptances, accrued interest
payable, and certain other assets and liabilities that are considered financial instruments.
Carrying values were assumed to approximate fair values for these financial instruments as they are
short-term in nature and their recorded amounts approximate fair values or are receivable or
payable on demand.
Trading securities:
Trading securities are carried at fair value based on quoted market prices. For more
information on the fair value of these securities, refer to Note 5.
Available for sale securities:
Available for sale investments principally comprise debt securities and are carried at fair
value. Such fair values were based
on quoted market prices, if available. If quoted market prices did not exist, fair values were
estimated using market yield on balance period
F-37
Table of Contents
to maturity on similar instruments and similar
credit risk. The fair values of asset backed and mortgage backed securities is estimated based on
revised estimated cash flows at each balance sheet date, discounted at current market pricing for
transactions with similar risk. For more information on the fair value of these securities, refer
to Note 6.
Held to maturity securities:
Held to maturity securities are carried at amortized cost less other than temporary
impairments, if any. Fair values of these securities were based on quoted market prices, if
available. If quoted market prices did not exist, fair values were estimated using market yield on
balance period to maturity on similar instruments and similar credit risk. For more information on
these securities, including "tainting" of the portfolio, refer to Note 7.
Loans:
The fair values of consumer installment loans and other consumer loans that do not reprice
frequently were estimated using discounted cash flow models. The discount rates were based on
current market pricing for loans with similar characteristics and risk factors. Since substantially
all individual lines of credit and other variable rate consumer loans reprice frequently, with
interest rates reflecting current market pricing, the carrying values of these loans approximate
their fair values.
The fair values of commercial loans that do not reprice or mature within relatively short time
frames were estimated using discounted cash flow models. The discount rates were based on current
market interest rates for loans with similar remaining maturities and credit ratings. For
commercial loans that reprice within relatively short time frames, the carrying values approximate
their fair values.
For purposes of these fair value estimates, the fair values of impaired loans were computed by
deducting an estimated market discount from their carrying values to reflect the uncertainty of
future cash flows.
Deposits:
The fair value of demand deposits, savings deposits, and money market deposits without defined
maturities are the amounts payable on demand. For deposits with defined maturities, the fair values
were estimated using discounted cash flow models that apply market interest rates corresponding to
similar deposits and timing of maturities. For variable-rate deposits with fixed repricing dates,
the first repricing date was considered the maturity date for purposes of fair value calculation.
Long-term debt:
The fair values of the Bank's unquoted long-term debt instruments were calculated based on a
discounted cash flow model. The discount rates were based on yield curves appropriate for the
remaining maturities of the instruments.
Term Placements:
The fair values of term placements were estimated using discounted cash flow models. The
discount rates were based on current market pricing for placements with similar characteristics and
risk factors.
F-38
Table of Contents
A comparison of the fair values and carrying values of financial instruments other than
derivatives (see Note 23) is set out below:
As of March 31,
2005
2006
Carrying
Estimated
Carrying
Estimated
Estimated
value
fair value
value
fair value
fair value
(In millions)
Financial Assets:
Cash and cash equivalents
Rs.
37,575.8
Rs.
37,575.8
Rs.
61,194.3
Rs.
61,194.3
US$
1,375.8
Term placements
8,699.6
8,530.0
10,243.7
9,845.0
221.3
Investments held for
trading
1,278.5
1,278.5
2,945.6
2,945.6
66.2
Investments available
for sale
204,292.8
204,292.8
273,457.0
273,457.0
6,147.9
Securities purchased
under agreements to resell
—
—
4,200.0
4,200.0
94.4
Loans
256,486.9
255,933.0
395,274.3
397,162.1
8,929.0
Accrued interest
receivable
4,912.1
4,912.1
8,662.7
8,662.7
194.8
Financial Liabilities:
Interest-bearing
deposits
257,237.9
257,819.6
410,181.2
409,655.9
9,209.9
Non-interest-bearing
deposits
106,304.6
106,304.6
147,124.2
147,124.2
3,307.6
Securities sold under
repurchase agreements
—
—
—
—
—
Short term borrowings
62,079.1
62,079.1
75,676.7
75,676.7
1,701.4
Accrued interest
payable
5,843.0
5,843.0
8,264.1
8,264.1
185.8
Long-term debt
5,028.1
4,582.4
17,028.6
16,148.2
363.0
Accrued expenses and
other liabilities
43,536.1
43,536.1
77,201.8
77,201.8
1,735.7
25. Segment Information
The Bank operates in three reportable segments: wholesale banking, retail banking and treasury
services. The revenue and related expense recognition policies are set out in Note 2. Substantially
all operations and assets are based in India.
The retail banking segment serves retail customers through a branch network and other delivery
channels. This segment raises deposits from customers and makes loans, provides credit cards and
debit cards, distributes third-party financial products such as mutual funds and insurance, and
provides advisory services to such customers. Revenues of the retail banking segment are derived
from interest earned on retail loans, fees for banking and advisory services and interest earned
from other segments for surplus funds placed with those segments. Expenses of this segment
primarily comprise interest expense on deposits, infrastructure and premises expenses for operating
the branch network and other delivery channels, personnel costs, other direct overheads and
allocated expenses.
The wholesale banking segment provides loans and transaction services to corporate customers.
Revenues of the wholesale banking segment consist of interest earned on loans made to corporate
customers, investment income from credit substitutes, interest earned on the cash float arising
from transaction services, fees from such transaction services and profits from foreign exchange
and derivative transactions with wholesale banking customers. The principal expenses of the segment
consist of interest expense on funds borrowed from other segments, premises expenses, personnel
costs, other direct overheads and allocated expenses.
The treasury services segment undertakes trading operations on the proprietary account,
foreign exchange operations and derivatives trading. Revenues of the treasury services segment
primarily consist of fees and gains and losses from trading operations.
Segment-wise income and expenses include certain allocations. Interest income is charged by a
segment that provides funding to another segment, based on yields benchmarked to an internally
developed composite yield curve which broadly tracks market-discovered interest rates. Transaction
charges are made by the retail banking segment to the wholesale banking segment for the use by
corporate customers of the retail banking segment's branch network or other delivery channels; such
transaction costs are determined on a cost plus basis.
Directly identifiable overheads are attributed to a segment at actual amounts incurred.
Indirect shared costs, principally corporate office expenses, are generally allocated equally to
each segment. Income taxes for each segment have been allocated based on the effective rate
applicable to the Bank, adjusted for specifically identifiable permanent differences relating to
each segment.
F-39
Table of Contents
Summarized
segment information for the years ended March 31, 2004, 2005 and 2006 is as
follows:
Years ended March 31,
2004
2005
2006
Retail
Wholesale
Treasury
Retail
Wholesale
Treasury
Retail
Wholesale
Treasury
Banking
Banking
services
Total
Banking
Banking
Services
Total
banking
Banking
services
Total
Total
(In millions)
Net interest revenue
Rs.
7,159.7
Rs.
5,112.3
Rs.
336.4
Rs.
12,608.4
Rs.
9,728.3
Rs.
5,658.7
Rs.
598.7
Rs.
15,985.7
Rs.
18,177.4
Rs.
6,239.1
Rs.
(510.3
)
Rs.
23,906.2
US$
537.5
Less:
Provision for
credit.losses
918.5
1,424.9
—
2,343.4
2,925.4
122.8
—
3,048.2
4,956.0
76.0
—
5,032.0
113.1
Net interest
revenue, after provision for credit losses
6,241.2
3,687.4
336.4
10,265.0
6,802.9
5,535.9
598.7
12,937.5
13,221.4
6,163.1
(510.3
)
18,874.2
424.3
Non-interest
revenue
2,606.7
965.8
1,125.1
4,697.6
6,234.1
1,656.5
320.9
8,211.5
10,071.8
2,092.9
(16.8
)
12,147.9
273.1
Non-interest
expense
(6,250.0
)
(1,521.5
)
(597.8
)
(8,369.3
)
(8,889.3
)
(1,823.7
)
(700.9
)
(11,413.9
)
(14,482.4
)
(2,802.0
)
(562.4
)
(17,846.8
)
(401.2
)
Income before
income tax
Rs.
2,597.9
Rs.
3,131.7
Rs.
863.7
Rs.
6,593.3
Rs.
4,147.7
Rs.
5,368.7
Rs.
218.7
Rs.
9,735.1
8,810.8
5,454.0
(1,089.5
)
13,175.3
296.2
Segment assets:
Segment average
total assets
Rs.
142,643.0
Rs.
178,753.3
Rs.
42,907.2
Rs.
364,303.5
Rs.
197,121.9
Rs.
224,054.3
Rs.
26,076.1
Rs.
447,252.3
Rs.
281,583.8
Rs.
313,603.1
Rs.
38,318.8
Rs.
633,505.7
US$
14,242.5
26. Commitments and contingent liabilities
Commitments and contingent liabilities other than for off balance sheet financial instruments
(see Note 23) are as follows:
Capital commitments
The Bank has entered into committed capital contracts, principally for branch expansion and
technology upgrades. The estimated amounts of contracts remaining to be executed on the capital
account as of March 31, 2005 and March 31, 2006 aggregated Rs. 497.5 million and Rs. 946.8 million,
respectively.
Contingencies
The Bank is party to various legal and tax-related proceedings in the normal course of
business. The Bank does not expect the outcome of these proceedings to have a material adverse
effect on the Bank's results of financial condition, operations or cash flows.
27. Related party transactions
F-40
Table of Contents
The Bank's principal related parties consist of HDFC Limited, its principal
shareholder, and its associates. The Bank enters into transactions with its related parties, such as providing
banking services, sharing costs and service providers, purchasing services, making joint
investments, and borrowing from related parties and subletting premises. The Bank is prohibited
from making loans to companies with which it has directors in common. The Bank also makes loans at
concessional rates to its employees. The Bank's related party balances and transactions are
summarized as follows:
Balances payable to related parties are as follows:
As of March 31,
2005
2006
2006
(In millions)
Balances in current account
Rs.
141.2
Rs.
201.6
US$
4.5
Balances in fixed deposits
272.1
149.8
3.4
Accounts payable
73.8
72.5
1.6
Total
Rs.
487.1
Rs.
423.9
US$
9.5
Balances receivable from related parties are as follows:
Years ended March 31,
2005
2006
2006
(In millions)
Deposits to secure leased property
Rs.
23.6
Rs.
36.9
US$
0.8
Loans and overdrafts
2.5
0.5
0.0
Loans to officers and employees
935.2
1,409.7
31.7
Capital advances
—
2.0
0.1
Other deposits
46.1
130.2
2.9
Accounts Receivable
18.7
304.3
6.8
Total
Rs.
1,026.1
Rs.
1,883.6
US$
42.3
The Bank has retained HDFC Asset Management Company Ltd., an entity controlled by HDFC
Limited, to invest its funds up to an amount approved by the board of directors, primarily in debt
instruments. This arrangement is upto June 2006. The amount of investments outstanding as on
March 31, 2005 and March 31, 2006 was Rs. 3.0 billion and Rs. 3.4 billion, respectively. Purchases
of fixed assets from related parties for the years ended March 31, 2005 and 2006 were Rs. 38.6
million and Rs. 72.4 million, respectively. During the year, the
Bank paid Rs. 191.3 million to HDFC
Limited for purchase of additional 25.5% shares of HDFC Securities Limited.
Included in the determination of net income are the following significant transactions with related
parties:
Years ended March 31,
2004
2005
2006
2006
(In millions)
Service charges income
Rs.
118.6
Rs.
438.8
Rs.
1,441.8
US$
32.4
Dividend Income
5.7
5.7
5.8
0.1
Service charges expense
(19.3
)
(31.3
)
(45.6
)
(1.0
)
Outsourcing charges
(798.5
)
(1,561.7
)
(2,534.7
)
(57.0
)
Interest Income
23.9
0.4
0.1
0.0
Rent and maintenance expense
(17.0
)
(15.8
)
(12.3
)
(0.2
)
Net expense incurred to related parties for service provided
Rs.
(686.6
)
Rs.
(1,163.9
)
Rs.
(1,144.9
)
US$
(25.7
)
Outsourcing
charges consist mainly of payments made by the Bank to its
associates for back office processing and direct sales support.
F-41
Table of Contents
28. Regulatory Capital and capital adequacy
The Bank is a banking company within the meaning of the Indian Banking Regulation Act, 1949,
registered with and subject to supervision by the RBI. Failure to meet minimum capital requirements
could lead to regulatory actions by the RBI that, if undertaken, could have a material effect on
the Bank and its financial position.
The Bank's regulatory capital and capital adequacy ratios are measured in accordance with
Indian GAAP and are as follows:
As of March 31,
2005
2006
2006
(In millions)
Tier 1 capital
Rs.
39,621.6
Rs.
51,499.1
US$
1,157.8
Tier 2 capital
10,547.3
17,207.1
386.9
Total capital
Rs.
50,168.9
Rs.
68,706.2
US$
1,544.7
Total risk weighted assets and contingents
Rs.
412,710.3
Rs.
602,176.2
US$
13,538.1
Capital ratios of the Bank:
Tier 1
9.60
%
8.55
%
8.55
%
Total capital
12.16
%
11.41
%
11.41
%
Minimum capital ratios required by the RBI:
Tier 1
4.50
%
4.50
%
4.50
%
Total capital
9.00
%
9.00
%
9.00
%
Dividends
Any dividends declared by the Bank are based on the profit available for distribution as
reported in the statutory financial statements of the Bank prepaid in accordance with
Indian GAAP, Additionally, the Banking Regulation Act and related regulations require
the Bank to transfer 25% of its Indian GAAP profit after tax to a non-distributable
statutory reserve and to meet certain other conditions in order to pay dividends without
prior RBI approval. As per RBI guidelines dividend payout (excluding
dividend tax) for March 31, 2006 can not
exceed 35% of net income of Rs. 8,707.8 million as calculated under
Indian GAAP. Accordingly, the net income reported in
these financial statements may not be fully distributable in that year. Dividends for the
years ended March 31, 2004, 2005 and 2006 were Rs. 3.50, Rs. 4.50 and Rs. 5.50 per
equity share, respectively.
29. Earnings per equity share
A reconciliation of the equity shares used in the computation of basic and diluted earnings
per equity share has been provided below. None of the potential equity shares outstanding during
the fiscal years ended March 31, 2004, 2005 and 2006 were anti-dilutive.
As of March 31,
2004
2005
2006
Weighted average number of
equity shares used in
computing basic earnings per
equity share
281,856,152
290,145,339
311,939,366
Effect of potential equity
shares for stock options
outstanding
2,863,744
2,317,669
3,984,648
Weighted average number of
equity shares used in
computing diluted earnings
per equity share
284,719,896
292,463,008
315,924,014
For the purpose of determining the weighted average number of equity shares
outstanding, the Bank treats cash received from optionees who exercise their option as issued
equity shares even if the administrative formalities to allocate equity shares have not been
completed.
F-42
Table of Contents
The following are reconciliations of basic and diluted earnings per equity share and earnings
per ADS :
Years ended March 31,
2004
2005
2006
2006
Basic earnings per share
Rs.
16.87
Rs.
22.78
Rs.
29.45
US$
0.7
Effect of potential equity shares
for stock options outstanding
0.17
0.18
0.37
—
Diluted earnings per share
Rs.
16.70
Rs.
22.60
Rs.
29.08
0.7
Basic earnings per ADS
Rs.
50.61
Rs.
68.34
Rs.
88.36
2.0
Effect of potential equity shares
for stock options outstanding
0.51
0.54
1.12
—
Diluted earnings per ADS
Rs.
50.10
Rs.
67.80
Rs.
87.24
US$
2.0
F-43
Table of Contents
SIGNATURES
The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and
that it has duly caused and authorized the undersigned to sign this annual report on its behalf.
HDFC Bank Limited
/s/ Vinod G. Yennemadi
Name:
Vinod G. Yennemadi
Title:
Group Head — Finance,
Administration, Legal and Secretarial
Date:
September 29, 2006
Table of Contents
Index of Exhibits
12.1
Certification by our Managing Director pursuant to Rule 13a-14(b)
12.2
Certification by our Chief Financial Officer pursuant to Rule 13a-14(b)
13
Certifications by our Managing Director and Chief Financial Officer required by Rule
13a-14(b) and Section 1350 of Chapter 63 of Ttitle 18 of the United States Code.
HDFC Bank Limited agrees to furnish to the Securities and Exchange Commission upon its request, the
instruments relating to the long term debt for securities authorized thereunder that do not exceed
10% of HDFC Bank Limited's total assets.