Presentation on Financial Management A Rajan Country Head-Operations

Presentation on Financial Management A. Rajan, Country Head-Operations, HDFC Bank 28 th January 2006

AGENDA q. Financial Planning. q. Banking With Value. q. Reaching Out. 2

Financial Planning Financial planning is assessing q Financial situation, determining its objectives q Identifying Tools to achieve the set objective q Formulating financial strategies. /Plans q Monitoring & Reviewing the set plan Customised, Tailor Made and an On going Process to evaluate ones financial objective 3

Our Understanding q Income & Expense- Fixed and Variable q Safety of Capital q Optimum returns with Minimum Risk q Cash Flow Variable in Nature q Investments Short term & Long term q Income Earned - tax Free for Trusts 4

General Trust Approved Avenues q Fixed Deposits q. Central q. Mutual & State Government Securities funds - Across Scheme Categories q. Govt. . of India 8% tax Saving Bonds 5

Investment Options : Fixed Income. Investment Options Coupon / Interest Rate Maturity Interest Payment Liquidity 8% RBI Relief (Taxable) bonds 8. 00% 6 Yrs Half Yearly / Cumulative Low Medium Bank Fixed Deposits 6. 25% 3 Yrs Half Yearly / Cumulative Bonds/ Securities Approved By Central/ State Govt. Security Specific Half Yearly/ Cumulative Medium 6

Investment Options Mutual Funds Schemes Available* Possible Rate of return Maturity Liquidity Comparable To Liquid Funds/Floating Rate funds **$$ 5. 50% 1 Day High Savings Account Fixed Maturity Plans***$$ 6. 50 -7. 00% 1 Month to 26 Months Medium Bank Fixed Deposit Equity Funds $$ 12 -15% Open Ended Medium - * Trusts which come under Bombay Public Trust act 1950 can invest only in trust approved schemes. There are trust approved schemes in each category ** Comparable to Savings account , Return on Savings Account 3. 5% *** Depending upon the applicable trust laws in a particular state. Comparable to Fixed Deposits across tenures $$ Returns are purely indicative in nature & no way to be taken as a commitment from the bank. Past performance of Equity Investments are not to be taken as indicative of future results. 7

Current Typical Portfolio of Trust Accounts Instrument % Allocation Time Horizon Possible returns Weighted Average Return 8% RBI Relief Bonds 35% 6 Years 8% 2. 80% Banks & Other Fixed Income Options 65% Across Tenures 6. 50% 4. 23% Total 100% 7. 03% 8

Recommended Investment Strategy q Investment to be broken in two Parts - Short term & Long Term q Short term investments to cater to all variable Expenses & Contingencies q Short term surpluses currently held in Banks Accounts, Recommended to switch to Liquid fund q Long term investments to be considered in the following - Fixed Maturity Plan - 8% GOI Savings Bonds - Equity Mutual funds - Investments In Bluechip Stocks 9

Recommended Portfolio Instrument % Allocation Time Horizon Possible Returns Weighted Average Return 8% RBI Relief Bonds 45% 6 years Lock in 8. 00% 3. 60% Liquid Schemes $$ 15% 1 day onwards 5. 50% 0. 83% 20% 1 Month to 26 Months 7. 00% 1. 40% Equity Funds $$ 20% 1 year and above 15. 00% 3. 00% Total 100% Fixed Maturity Plans 8. 83% $$ Returns are purely indicative in nature & no way to be taken as a commitment from the bank. Past performance of Equity Investments are not to be taken as indicative of future results. 10

Banking With Value 11

You Need… …a comprehensive savings account . . . customised banking solutions to suit all our needs …to transact 24/7 at the click of a button …the best pricing across all products and services …guidance on investments, remittances …salary accounts for employees . . . instant funds transfer across the country …FCRA account for donations received form overseas …hassle- free fee / donation collection 12

Banking Services to Temple Trusts Important Value Added Offering …. q. Assist in Financial Planning of Trust. q. Collection of Cash and Coins (Currency Chest support). q. Usage of Branch channel for Temple offerings. q. Offer Internet based banking channels (Net Banking) and offer better facility to Devotees. ……… than only a branch within the Temple premise or ATM or Fixed Deposits offering !! Time to switch to a Bank that offers value added services 13

A Comprehensive Savings Account Demand Drafts on Bank & other locations at special price Savings Account with a nominal Average quarterly balance Quicker outstation cheque collection at all Bank locations at special price Intercity / Multi-city Banking with a Payable at Par Cheque book Funds transfer facility to another bank account across the country Net. Banking, Phone. Banking, Logistics services (Cash delivery, Cash pickup, Cheque pickup) Bill. Pay & Insta. Alert Facility 14

FCRA Accounts foreign contribution - Special FCRA account for donations / foreign contributions received - Preferential Exchange Rates - Accounts opened / transferred with MOHA approval - On line tracking on status of funds - Cheque book facility 15

FLOW OF FUNDS TRUSTS Payments or Fee from Members Donations from Public Sale of Products 16

Hassle free Donation/ Fee Collection - Donation / fee collection at any of the Bank Branches - Direct credit of fees / donations into the Trust account on realization of funds - Customized fee / donation deposit slips - Fee collection via cheque / DD / MC / funds transfer - Daily report of the donations / fees received with categorywise break-up for each payment 17

Salary Accounts for Employees International debit cards with higher limits on ATMs and POS. Zero Balance Savings Account Free Intercity / Interbranch Banking. Manage your employee salary payments with ease…… Quarterly / Monthly Account Statements PAP Cheque book facility Access to the account through other Bank ATMs. Net. Banking, Phone. Banking, Bill. Pay & Insta. Alert Facility Logistics services (Cash delivery, Cash pickup, Cheque pickup) Preferential Rates on Loan & Credit Card Products. 18

Investment Solutions q A range of mutual fund options q Investment into RBI & other Bonds q Dedicated advisor to assist you in your investments 19

REACHING OUT Banks can assist in Reaching out to devotees by : q. Offer Payment gateway facility through Bank site for : q. Donations to Temple or specific Projects / Trusts. q. Paid Special Darshans q. Accommodations and Room Bookings q. Prasad q. Special Aarti q. Music and Books. q. Aarti and Darshan on the Bank’s Net banking Site. 20

SOLUTIONS Channels Branch Banking Net. Banking ATM Phone Banking Services q. Bill. Pay q. Direct. Pay (Direct Debit from Account) q. Credit Card Payment Gateway q. Insta. Pay 21

Collections and Payments Simple and Streamlined Process No hassles of collection and handling of cash or cheque Long Reach – across the country & beyond Various channels for accepting payments Proper reports for easy reconciliation 22

Discussions 23

Thank You 24