HDFC Operational & Financial Highlights
HDFC
WITH YOU, RIGHT THROUGH
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BENEFITS OF A COMBINED ENTITY
Proposed Transformational Combination of HDFC with HDFC Bank
Synergies
Access to lower cost of funds
Wider distribution network: presently HDFC Bank does not source mortgages from all its offices
HDFC Bank to have access to 45+ years of expertise in mortgage origination and loan servicing
processes of HDFC
Operational efficiencies: will be able to offer the mortgage product seamlessly
Cross-selling: 70% of HDFC customers do not bank with HDFC Bank; of the 71 million customers
of HDFC Bank, only 5% have a mortgage from other mortgage providers and only 2% have a
mortgage from HDFC
Overcome issues of a holding company discount
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Cancellation of shares of HDFC Bank held by HDFC will be EPS accretive for HDFC Bank; provide leg
room for foreign shareholding (HDFC's equity in HDFC Bank qualifies as indirect foreign investment)
Through mortgages, HDFC Bank will get longer duration assets on its books
HDFC Bank can build a housing loan portfolio and enhance product offerings to its existing customer
base
Overcome drag on Return on Equity
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