A REPORT ON

INTRODUCTION Housing Development Finance Corporation Limited (HDFC Ltd.) was established in 1977 with the primary objective of meeting a social need of encouraging home ownership by providing long-term finance to households. Over the last three decades, HDFC has turned the concept of housing finance for the growing middle class in India into a world-class enterprise with excellent reputation for professionalism, integrity and impeccable service. HDFC's unrelenting focus on Corporate Governance, high standards of ethics and clarity of vision, percolate through the organization. Trust, Integrity, Transparency and Professional Service are the important pillars of the brand HDFC and most importantly, people - both employees and customers - are its brand ambassadors.

HDFC's wide product range includes loans for purchase and construction of a residential unit, purchase of land, home improvement loans, home extension loans, non-residential premises loans for professionals and loan against property, while its flexible repayment options include Step Up Repayment Facility (SURF) and Flexible Loan Installment Plan (FLIP).

Today, HDFC is recognised as one of the Best Managed Companies in India and is a model housing finance company for developing countries with nascent housing finance markets. HDFC has undertaken several consultancy assignments in various countries across Asia, Africa and East Europe to support and establish their housing finance institutions.

HDFC-(Housing Development And Finance Corporation) Home Loan, India have been serving the people for around three decades and providing various housing loan according to their varied needs at attractive & reasonable interest rates. Owing to their wide network of financing, HDFC Housing Loans provides services at your doorstep and helps you find a home as per your requirements. Many banks are providing home loans at cheapest rate to attract consumers towards them. The more customer friendly attitude of these banks, currently offer to consumers cheapest loan over homes.

COMPANY OVERVIEW A pioneer and leader in housing finance in India, since inception, HDFC has assisted more than 3.5 million families to own a home of their own, through cumulative housing loan approvals of over Rs. 2.98 trillion and disbursements of over Rs. 2.42 trillion as at March 31, 2010.

HDFC has a wide network of 287 offices (which includes 66 offices of HDFC's wholly owned distribution company HDFC Sales Private Limited) catering to over 2,400 towns & cities spread across the country. It also has offices in Dubai, London and Singapore and service associates in the Middle East region, to provide housing loans and property advisory services to Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs).

Customer satisfaction is the hallmark of all HDFC offerings. The first touch of HDFC's personalised service begins as soon as a customer approaches HDFC, and over time it progresses into a long and meaningful relationship. State-of-the-art information systems supported by strong in-house training programmes conducted at its specialized training centre in Lonavla, have equipped HDFC to respond swiftly to the ever-changing customer needs and thereby empower customers in making the right home buying decision. This is what sets apart HDFC's customer service philosophy - 'With You, Right Through'.

HDFC's specialist team of over 1,500 trained and experienced professionals follows a 'singlewindow concept' for providing smooth and value added services at all stages. The team guides the customers right through the entire process of property purchase - be it property search assistance, technical support prior to finalising the property, legal advice on property related documentation, personalised home loan counseling or providing tailor-made repayment options to suit the customer's specific requirements.

HDFC also has a robust deposits mobilisation programme. HDFC has been able to mobilise deposits from over 10 lac depositors. Outstanding deposits grew from Rs. 1,458 crores in March 1994 to Rs 23,081 crores in March 2010. In addition, HDFC has received 'AAA' rating for its Deposit products for highest safety from both CRISIL and ICRA for sixteen consecutive years.

HDFC is how millions of Indian families spell the word 'Home' as the brand not only offers Housing Finance, but also Total Housing Solutions.

ANALYSIS Deposits: Individuals HDFC has instituted well-defined service standards for both depositors and deposit agents. HDFC has been able to mobilise deposits from over 10 lac depositors. Outstanding deposits grew from Rs. 1,458 crores in March 1994 to Rs 23,081 crores in March 2010. Much of this success can be attributed to its strong brand image, superior services, security and above all, the significant contribution made by HDFC's deposit agents. HDFC has over 15,000 deposit agents and distributes all its retail savings (deposit) products primarily through this channel. HDFC has been awarded "AAA" rating for its deposits from both CRISIL and ICRA for the SIXTEENTH consecutive year , representing highest safety as regards timely payment of principal and interest.

Benefits of HDFC's Individual Fixed Deposits & Variable Deposits

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Highest Safety Tax Benefits Attractive Returns Quick Loan Facility Nomination Facility Demand Draft Facility High Service Standards Electronic Clearing Service HighestSafety: 'FAAA' and 'MAAA' rating affirmed for the SIXTEENTH consecutive year by CRISIL and ICRA respectively. TaxBenefits: TDS: No tax deduction at source on interest from deposits upto Rs. 5,000/- per branch in a Financial Year. AttractiveReturns: HDFC deposits are Available throughout the year and offer Attractive, Assured returns to investors. Interest rates offered are higher than that offered by most of the commercial banks. QuickLoanFacility: Loan against deposit is available after 3 months from the date of deposit upto 75% of the deposit amount subject to the other terms and conditions framed by HDFC. Interest on such loans will be 2% above the deposit rate. *This facility is not available for Easyway Savings and deposits from minors. NominationFacility: Individual depositors, singly or jointly, can nominate under this facility. In case the deposit is

placed in the name of a minor the nomination can be made only by a person lawfully entitled to act on behalf of the minor. Power of attorney holder or any person acting in representative capacity as holder of an office or otherwise cannot nominate. The nominee shall have the right to receive the amount due in respect of deposit on death of all the depositors and payment by HDFC to the nominee shall constitute full discharge to HDFC of its liability in respect of the deposit. DemandDraftFacility: Outstation depositors can send demand drafts after deducting demand draft charges. This facility is not available to investors under Easy way Savings. This facility is applicable for places where HDFC does not have an office. HighServiceStandards: Depositors are offered across the counter services for new deposits, renewals, repayments and loan against deposit facility. Further, all enquiries through email, post, telephone and in person are attended to immediately. ElectronicClearingService: This facility is provided to depositors in select centers whereby the interest will be credited directly to the depositors' bank account. The depositor would receive a credit entry "ECS HDFC" in his passbook/bank statement. Intimation of interest credited would be sent on an annual basis. Your bank will not levy any charge for this facility as per present RBI guidelines. Presently this facility is being offered by us at the following centers ECS Centres : Ahmedabad, Bangalore, Bhubaneshwar, Kolkata, Chandigarh, Chennai, Hyderabad, Jaipur, Kanpur, Lucknow, Mumbai, Nagpur, Nasik, New Delhi, Pune and Vadodara.

Interest Rates for Individuals

Deposits are accepted for any period between 12 and 60 months. The current applicable interest rates are: Interest rates applicable for deposits below Rs. 1 crore with effective from May 18, 2011

Monthly Income Plan - Platinum Deposits Period (Months) Rate of Interest payable (% p.a.) Individuals 15 22 33 9.40 9.20 9.40 Sr Citizens 9.65 9.45 9.65 Maximum Deposit without TDS (Rs.)* Individuals 53,000 54,000 53,000 Sr citizens 51,000 52,000 51,000

Minimum Deposit Amount - Rs. 40,000 Monthly Income Plan - Regular Deposits Period (Months) Rate of Interest (%p.a.) Individuals 12 - 23 24 - 35 36 - 59 60 8.90 9.05 9.15 8.90 Sr Citizens 9.15 9.30 9.40 9.15 Maximum Deposit without TDS (Rs.)* Individuals 56,000 55,000 54,000 56,000 Sr Citizens 54,000 53,000 53,000 54,000

Minimum Deposit Amount - Rs. 40,000 Non-Cumulative - Quarterly Option - Platinum Deposits Period(Months) Rateof Interest (% p.a.) Individuals 15 22 9.45 9.25 SrCitizens 9.70 9.50 Maximum Deposit without TDS (Rs.)* Individuals 52,000 54,000 SrCitizens 51,000 52,000

33

9.45

9.70

52,000

51,000

MinimumDeposit Amount - Rs. 20,000 Non-Cumulative - Quarterly Option - Regular Deposits Period(Months) Rateof Interest (%p.a.) Individuals 12 23 24 35 36 59 60 8.95 9.10 9.20 8.95 SrCitizens 9.20 9.35 9.45 9.20 MaximumDeposit without TDS (Rs.)* Individuals 55,000 54,000 54,000 55,000 SrCitizens 54,000 53,000 52,000 54,000

MinimumDeposit Amount - Rs. 20,000 Non-Cumulative - Half Yearly Option - Platinum Deposits Period(Months) Rateof Interest (%p.a.) Individuals 15 22 33 9.55 9.35 9.55 SrCitizens 9.80 9.60 9.80 Maximum Deposit without TDS (Rs.)* Individuals 52,000 53,000 52,000 SrCitizens 51,000 52,000 51,000

MinimumDeposit Amount - Rs. 20,000 Non-Cumulative - Half Yearly Option - Regular Deposits Period(Months) Rateof Interest (%p.a.) Individuals 12 23 24 35 36 59 60 9.05 9.20 9.30 9.05 SrCitizens 9.30 9.45 9.55 9.30 MaximumDeposit without TDS (Rs.)* Individuals 55,000 54,000 53,000 55,000 SrCitizens 53,000 52,000 52,000 53,000

MinimumDeposit Amount - Rs 20,000

Annual Income Plan - Platinum Deposits Period(Months) Rateof Interest (%p.a.) Individuals 22 33 9.55 9.75 Sr Citizens 9.80 10.00 MaximumDeposit without TDS (Rs.)* Individuals 52,000 51,000 Sr citizens 51,000 50,000

MinimumDeposit Amount - Rs. 20,000 Annual Income Plan - Regular Deposits Period(Months) Rateof Interest (%p.a.) Individuals 24 35 36 59 60 9.40 9.50 9.25 SrCitizens 9.65 9.75 9.50 MaximumDeposit without TDS (Rs.)* Individuals 53,000 52,000 54,000 SrCitizens 51,000 51,000 52,000

MinimumDeposit Amount - Rs. 20,000

Cumulative Option - Platinum Deposits Period(Months) Rateof Interest (%p.a.) **MaturityAmount for a Deposit of Rs 10,000 MaximumDeposit without TDS (Rs.)*

Individuals SrCitizens Individuals SrCitizens Individuals SrCitizens 15 22 33 9.75 9.55 9.75 10.00 9.80 10.00 11,242.52 11,739.65 12,925.86 11,275.00 11,787.03 13,007.50 50,000 48,000 43,000 48,000 47,000 42,000

MinimumDeposit Amount - Rs. 20,000 / Interest compounded annually.

Cumulative Option - Regular Deposits Period (Months) Rate of Interest (%p.a.) Individuals 12 24 36 48 60 9.25 9.40 9.50 9.25 9.25 Sr Citizens 9.50 9.65 9.75 9.50 9.50 **Maturity Amount for a Deposit of Rs 10,000 Individuals 10,009.25 10,018.81 10,028.53 10,037.05 10,046.34 Sr Citizens 10,009.50 10,019.31 10,029.28 10,038.05 10,047.59 Maximum Deposit without TDS( Rs.)* Individuals 54,000 53,000 52,000 53,000 10,000 Sr Citizens 52,000 51,000 51,000 52,000 10,000

Minimum Deposit Amount - Rs. 20,000 / Interest Compounded annually

Deposits: Trust

HDFC offers a wide range of deposit products, a secure investment option, with attractive returns. Deposits are accepted from Charitable Trusts, Religious Trusts, Educational Institutions, Employees'WelfareTrustsandothersasdecidedbythemanagement. Trusts can choose from any of the following products depending on their need. Trust Deposits: 1) Fixed Rate Deposits Following options are available under Fixed Rate Deposit i) Monthly Income Plan ii) Non-Cumulative Deposits iii) Annual Income Plan iv) Cumulative Deposits 2) Variable Rate Deposits Variable Rate Deposit is a new addition to the wide range of deposit products offered by HDFC to enable the depositors to take advantage of movements in interest rates. Following options are available under Variable Rate Deposit i) Monthly Income Plan ii) Non-Cumulative Deposits iii) Annual Income Plan iv) Cumulative Deposits Benefits of HDFC's Fixed Deposit Rates & Variable Rate Deposit 1.HighestSafety 2.AttractiveReturns 3.TaxBenefits 4.QuickLoanFacility 5.HighServiceStandards 6.DemandDraftFacility 7. Electronic Clearing Service HighestSafety: 'FAAA' and 'MAAA' rating affirmed for the SIXTEENTH consecutive year by CRISIL and ICRA respectively. Attractive Returns: HDFC deposits are Available throughout the year and offer Attractive, Assured returns to investors.

Tax benefits: 1. HDFC Trust Deposits is a specified investment under Section 11(5) (ix) of the Income Tax Act, 1961. 2. No tax deduction at source from Interest on deposits upto Rs. 5,000/- per branch in a financial year. Quick Loan Facility: Loan against deposit is available after 3 months from the date of deposit upto 75% of the deposit amount subject to the other terms and conditions framed by HDFC. Interest on such loans will be 2% above the deposit rate. High Service Standards: Depositors are offered across the counter services for new deposits, renewals, repayments and loan against deposit facility. Further, all enquiries through email, post, telephone and in person are attended to immediately. Demand Draft Facility: Outstation depositors can send demand drafts after deducting demand draft charges. This facility is applicable for places where HDFC does not have an office. Electronic Clearing Service: This facility is provided to depsoitors in select centres whereby the interest will be credited directly to the depositors' bank account. The depositor would receive a credit entry "ECS HDFC" in his passbook/bank statement. Intimation of interest credited would be sent on an annual basis. Your bank will not levy any charge for this facility as per present RBI guidelines.

Rate of Interest for Trusts Deposits are accepted for any period between 12 and 60 months. The current applicable interest rates are: Interest rates applicable for deposits below Rs. 1 crore with effective from May 18, 2011 Monthly Income Plan - Platinum Deposits Period(Months) 15 22 33 Rateof Interest (%p.a.) 9.40 9.20 9.40 Maximum Deposit without TDS (Rs.)* 53,000 54,000 53,000

MinimumDeposit Amount - Rs. 40,000 Monthly Income Plan - Regular Deposits Period (Months) Rate of Interest (%p.a.) Maximum Deposit without TDS (Rs.)*

12 - 23 24 - 35 36 - 59 60

8.90 9.05 9.15 8.90

56,000 55,000 54,000 56,000

Minimum Deposit Amount - Rs. 40,000

Non-Cumulative - Quarterly Option - Platinum Deposits Period(Months) 15 22 33 Rateof Interest (% p.a.) 9.45 9.25 9.45 Maximum Deposit without TDS (Rs.)* 52,000 54,000 52,000

MinimumDeposit Amount - Rs. 20,000 Non-Cumulative - Quarterly Option - Regular Deposits Period(Months) 12 - 23 24 - 35 36 - 59 60 Rateof Interest (%p.a.) 8.95 9.10 9.20 8.95 MaximumDeposit without TDS (Rs.)* 55,000 54,000 54,000 55,000

MinimumDeposit Amount - Rs. 20,000 Non-Cumulative - Half Yearly Option - Platinum Deposits Period(Months) 15 22 33 Rateof Interest (%p.a.) 9.55 9.35 9.55 Maximum Deposit without TDS (Rs.)* 52,000 53,000 52,000

MinimumDeposit Amount - Rs. 20,000 Non-Cumulative - Half Yearly Option - Regular Deposits

Period(Months) 12 - 23 24 - 35 36 - 59 60

Rateof Interest (%p.a.) 9.05 9.20 9.30 9.05

MaximumDeposit without TDS (Rs.)* 55,000 54,000 53,000 55,000

MinimumDeposit Amount - Rs 20,000 Annual Income Plan - Platinum Deposits Period(Months) 22 33 Rateof Interest (%p.a.) 9.55 9.75 MaximumDeposit without TDS (Rs.)* 52,000 51,000

MinimumDeposit Amount - Rs. 20,000 Annual Income Plan - Regular Deposits Period(Months) 24 - 35 36 - 59 60 Rateof Interest (%p.a.) 9.40 9.50 9.25 MaximumDeposit without TDS (Rs.)* 53,000 52,000 54,000

MinimumDeposit Amount - Rs. 20,000 Cumulative Option - Platinum Deposits Period(Months) 15 22 33 Rateof Interest (%p.a.) 9.75 9.55 9.75 **MaturityAmount MaximumDeposit for a Deposit of Rs without TDS 10,000 (Rs.)* 11,242.52 11,739.65 12,925.86 50,000 48,000 43,000

MinimumDeposit Amount - Rs. 20,000 / Interest compounded annually. Cumulative Option - Regular Deposits

Period (Months) 12 24 36 48 60

Rate of Interest (%p.a.) 9.25 9.40 9.50 9.25 9.25

**Maturity Amount for a Deposit of Rs 10,000 10,009.25 10,018.81 10,028.53 10,037.05 10,046.34

Maximum Deposit without TDS( Rs.)* 54,000 53,000 52,000 53,000 10,000

Minimum Deposit Amount - Rs. 20,000 / Interest Compounded annually

Systematic Savings Plan (SSP)

HDFC Systematic Savings Plan (SSP) is a long to medium term installment plan offering assured market related returns to retail individual investors. SSP would be very attractive as compared to other installment product available for medium to long tenures, both for investors and distributors. The salient features are as under : Product Features of Systematic Savings Plan Eligibility: All Resident individuals can open the SSP account. SSP is available at select centres where ECS facility is available. Monthly Savings Plan: SSP is a monthly savings plan where one can save as little as Rs. 2000 per month and accumulate a larger capital for future needs. Variable rate of interest: Interest rate on SSP is linked to the benchmark rate and will vary from time to time with the benchmark rate. Benchmark rate is the rate of interest applicable on SSP product from time to time for the corresponding period. Rate of interest (ROI) will be reset at the beginning of each calendar quarter. Convenience: SSP provides the convenience of ECS (Debit clearing) facility where the monthly savings amount is automatically transferred from the account-holder's bank account to the SSP account every month on a pre-determined date. Flexibility: Depositor has the flexibility to choose any deposit period between 24 and 60 months to plan the future needs. Accumulation of interest: Interest will be accrued and credited (net of TDS) on 31st March every year. Rate of Interest Rates effective from May 18, 2011

HDFC SYSTEMATIC SAVINGS PLAN (Variable Rate Installment Deposit Plan) Period (Months) 24 35 36 59 60 Rate of Interest (% p.a.) 9.00% 9.25% 9.25%

Minimum Monthly Savings Amount - Rs. 2000. Interest Rates are subject to change without any prior notice. Interest Rates are subject to change and the rates applicable will be the rates prevalent on the date of Deposit. Other Terms and Conditions as per Deposit Application Form. Mode Of Operations Resident Individuals can open the SSP account by remitting the first month's savings amount through an account payee cheque drawn in favour of HDFC Ltd, along with duly filled-in application form and ECS (debit clearing) Mandate attested by the depositor's banker. The subsequent month's savings installments will be directly transferred through the ECS (debit clearing) system on pre-determined dates every month as indicated in the application form/mandate. HDFC will issue a Deposit Receipt for the initial deposit amount at the time of opening the account indicating terms of the deposit. A consolidated statement of account giving details of all transactions will be sent annually as of 31st March.