HDFC Business and ESG Overview

HDFC WITH YOU, RIGHT THROUGH RATIONALE Proposed Transformational Combination of HDFC with HDFC Bank • The option to merge has been evaluated from time to time • In the recent period, various regulatory changes for banks and NBFCs have considerably reduced the barriers for a potential merger: • Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) of banks have reduced from 27% to 22% . • Prevailing interest rates give spreads on reserves RBI permits Priority Sector Lending Certificates to meet Priority Sector Lending (PSL) norms Long tenor infrastructure & affordable housing bonds are exempt from CRR, SLR and PSL • Recent harmonisation of regulations between banks and NBFCs: RBI roadmap for conversion of large NBFCs into full scale commercial banks Harmonisation of asset quality norms Introduction of Liquidity Coverage Ratio for NBFCs Scale Based Regulations - especially for NBFCs categorised as NBFC Upper Layer Further alignment of regulations for NBFCs with banks on: Capital assessment, risk, compliance, large exposure framework, remuneration, core financial services solution, amongst others 6

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