TCS Company Overview and Business Strategy

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UTI Bank Combining Growth with Profitability
October 2006
2
Agenda

• UTI Bank Profile Performance Highlights
• Future Growth Opportunities
• Unique Franchise in Indian Banking Sector

3
UTI Bank Overview
Banking Operations
Treasury
Operating Revenue Contribution(1)
Corporate Banking
Capital Markets
Retail Banking
UTI Bank is a leading private sector bank in
India and uniquely positioned to harness the high
growth opportunity in India
(1) For the quarter ended 30th June, 2006 (2)
As on 30092006 (3) Conversion Rate 1 USD
Rs.46.04 (As on 30/06/2006)
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UTI Bank Overview

• Key Strengths
• Third largest private sector bank and one of the
  fastest growing commercial banks in India
• Comprehensive banking franchise 469 branch
  offices across 268 centers servicing over 5
  million customers
• Market share of incremental business higher than
  overall market share of industry
• Proven track record of profitability Net Profit
  growth of over 30 YoY in 24 out of last 26
  quarters
• Continued focus on improvement in asset quality
• Use of technology for superior delivery of
  products and services
• Enhanced cost efficiencies achieved through
  leveraging technology
• Ability to attract and retain skilled human
  resources

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UTI Bank Overview
Performance Highlights
CAGR over 5 years (2001 - 2006)
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Agenda

• UTI Bank Profile Performance Highlights
• Future Growth Opportunities
• Unique Franchise in Indian Banking Sector

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Robust Economic Growth
Sustainable Economic Growth
Favourable Shift in Demographics(1)

• Fastest growing economy after China
• Fourth largest economy in the world in terms of
  PPP
• Acceleration in corporate capex and
  infrastructure investment
• Strong outsourcing growth momentum IT services,
  financial services, healthcare manufacturing
• Strong improvement in external sector and gradual
  fiscal deficit correction
• Recent upgrades in sovereign credit ratings Baa3
  with Stable outlook (Moodys) and BB with
  Positive outlook (SPs)

(1) Source National Council of Applied Economic
Research Estimates
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Domestic Economic Upswing
High GDP Growth Rate
In April 2006, SP raised Indias sovereign
outlook to Positive from Stable stating the
outlook revision reflects improved prospects of a
stabilizing debt burden based on greater effort
across all levels of governments to consolidate
their fiscal positions
Transformation to a Service Culture
FY 1991
FY 2005
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Industry Future

• Indian banks are likely to move up the valuation
  ladder driven by
• Higher proportion of core income
• Improving asset quality on account of better
  foreclosure laws (SARFESI)
• Strong growth in both corporate and retail credit
  likely in next two years
• Capital expenditure announced among the highest
  in the last several years
• Retail still grossly under-penetrated
• Low incremental slippages, higher recoveries
• FY 07 likely to see significantly lower slippages
  and higher recoveries
• Strong risk management practices
• Transition to Basel II
• New opportunities for raising regulatory capital

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Agenda

• UTI Bank Profile Performance Highlights
• Future Growth Opportunities
• Unique Franchise in Indian Banking Sector

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Large and Efficient Distribution Network
Growing Network
Customer Acquisition
Growth in Demand Deposits
Lower Cost of Funds
Corporate Assets
Retail Assets

• All branches linked online, real-time
• Third largest ATM network in India
• Over 95 of retail cash withdrawal transactions
  through ATM channel

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Product Innovation and Differentiation
Unbeatable Spectrum of Products
Retail Banking

• Retail Assets
• - Silo Approach RACs and SRACs
• - Strategic Alliances with NBFCs
• NRI remittances
• Wealth Management Financial Advisory Services
• Merchant Acquiring
• Alternative channels
• - ATM Sharing

• Customer Segmentation Strategy Customized
  accounts for Senior Citizens, Women, Armed forces
  Personnel and Salaried Class
• Anywhere Banking through AT PAR cheque facility
• Strong Cards Business
• - Travel Currency Card, Remittance Card
• - International Debit Card
• - Annuity Card in alliance with LIC

UTI Bank has the capability to continually
innovate products and customise offerings for
different market segments in order to grow and
secure market share
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Product Innovation and Differentiation
Unbeatable Spectrum of Products
Capital Markets
Corporate Banking

• Structured Finance
• - Syndication and underwriting of corporate
• loans
• SME Mid Corporates Lending
• - Schematic products
• - Silo approach through SME cells
• - Supply Chain Channel Financing
• - Collateralised asset product for small
  
• business
• Agricultural Lending
• - Cluster-centric approach
• - Contract farming
• - Low cost rural ATMs

• Debt and Equity Syndication
• Private Equity
• Venture Fund for Infrastructure financing

Treasury

• Derivatives
• Structured Products
• - Bullion
• - Structured deposits
• - Structured debt instruments

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Product Innovation and Differentiation
Transactional Banking
Capitalizing on Technology

• Advance use of cutting edge technology to deliver
  products and services
• Focus on systems and technology to leverage and
  attract new business
• Fully integrated, centralized banking
  architecture
• Anytime, anywhere banking

• Customized Current accounts for
• disparate customers
• Cash Management Services
• Government Business and
• Tax Collections
• e-Governance

Sales Effectiveness

• Unique sales model
• Well researched incentive scheme
• Intensive training
• Subsidiary for selling of Retail Assets Credit
  Cards

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Growth in Retail Assets
Retail Assets (Rs. billion)

• Retail Assets constitute 30 of Banks total
  advances in June 2006
• Growth driven through Retail Asset Centres (RACs)
• 19 RACs and 36 satellite RACs established
• 15 more satellite RACs to be set up

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Retail Lending Mix
Retail Loans (Rs. billion)

• Provisions made upon reaching specified stages of
  delinquency (90 days or more)
• Bucket-wise provisioning for delinquencies less
  than 90 days
• On 30 June 2006 Net NPA percentage in Retail
  loans was 0.50 of total net retail loans

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Retail Deposits Growth
Retail Deposits (Rs. billion)

• Savings Bank growth led by
• Widening reach through Branch and ATM Channel
  network
• Banks own sales channel
• Strategy for niche customer segments
• Corporate and Government payroll accounts
• Continual product innovation

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High Quality Deposit Franchise
Growing Current Account Deposits(Rs. billion)
Savings Bank Deposits (Rs. billion)
Total Low Cost Funds (1)(Rs. billion)
CAGR 69
CAGR 74
CAGR 62

• Rapidly growing retail deposit franchise 4.70
  million customers in June 2006
• Rising proportion of demand (Savings and Current)
  deposits
• Float from multiple transactional banking
  franchises
• Third largest issuer of debit cards in India
• Strong sales orientation

• Including other float funds
• CAGR over 4 years (2002 - 2006)

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Cards Business

• Issuance
• 3rd largest debit card base in the country
• 1st Indian Bank to launch Travel Currency Cards
  in multiple currencies -
• USD, Euro, GBP, AUD and CAD
• 1st Indian Bank to launch Remittance Card
• Acquiring
• Installed base of over 28,991 EDCs and growing
• Cards business significant contributor to Retail
  fee income
• Credit Card ready for launch

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Corporate Banking
Focus on quality
Well diversified portfolio

• Focus on quality of credit assets
• Focus on corporates with
• Global competitive advantage in their businesses
• Good corporate governance and management
  practices
• Five Business Segments
• Large Corporates
• SMEs
• Agri-Businesses
• Channel Financing
• Structured Products
• Rigorous and regular risk assessment
• Rating and Monitoring Tools
• Adapted for SMEs
• Offer a broad suite of products with continued
  focus on customised offerings

Of Total Corporate Credits as at 30.6.2006
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Leading Capital Markets Player
Debt Syndication (Rs. billion)
India Bond House of the Year 2005

• A dominant player in Placement and Syndication of
  debt issues
• Ranked 1st by Prime Database for 4th consecutive
  calendar year. Awarded recognition as the India
  Bond House of the Year for 2005 by IFR Asia, Hong
  Kong
• Leading Player in Project Advisory Services
• Technical tie-ups with consultants and
  construction companies

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International Banking
Road Map for International Operations

• We follow our customers where their business
  takes them
• Singapore branch opened in April 2006
• Shanghai Representative Office set up in July
  2006
• Future expansion plans, subject to regulatory
  approvals
• Sri Lanka - 5 Retail Branches
• Hong Kong - Branch
• Dubai - Representative Office DIFC branch
• United Kingdom - Subsidiary for Investment
  Banking

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Leveraging Technology
ATM Cash Withdrawals (Rs. million) (1)
No. of ATM Transactions (In millions) (1)
Pioneer in ATM sharing arrangements
Lower Transaction Costs
Centralized Processing Units
Derive Economies of Scale
Disaster Recovery
High Reliability and Efficient Risk Management
Versatile Core Banking Software
Permits Software for New Products to be Linked
(1) For the Month indicated
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Robust Risk Management
Risk Philosophy
Appetite driven by Internal Rating Tool

• Risk appetite driven by internal credit scale
• Continuously validated with external ratings
• Continue to move large corporate loan portfolio
  to entities rated A and above
• Selective exposure to SME credits, based on
  minimum internal ratings criteria
• Stable growth in retail assets

• Maximising risk-adjusted return on capital
• Risk identification
• Assign internal ratings
• Actively monitoring credit migration
• Employ best practices in risk management

UTI Bank employs best practice risk management to
ensure a top quality asset book
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Healthy Asset Quality
NPA to Customer Assets
Superior Rating of Corporate Advances
Ave or above

• Amongst the best in the industry in portfolio
  quality
• Rigorous credit approval mechanism has led to
  dramatic improvement in Banks Gross NPLs
• More than 84 of corporate advances are rated at
  least Ave

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Consistent Financial and Operational Performance
Total Assets (Rs. billion)
Total Deposits (Rs. billion)
CAGR 36
CAGR 34
Net Loans (Rs. billion)
Total Investments (Rs. billion)
CAGR 39
CAGR 43
CAGR is based on data of Fiscal 2002 to 2006
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Financial Performance
Growing Profitability
Profit after tax (Rs. Billion)
Q1 performance (Rs. Billion)
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Robust Fee Income Growth
Credit (Rs. billion)
Capital Markets (Rs. billion)
CAGR 44
CAGR 27
Retail Banking (Rs. billion)
Transactional Banking (Rs. billion)
CAGR 62
CAGR 97

• 41 overall growth in Fee Income
• Leveraging expanding customer base to increase
  Fee Income
• Expanding Retail Franchise to drive Retail Fee
  Income
• Strong Upturn in Investment Cycle to drive
  Capital Market and Corporate Banking Fee Income
• Fee Revenue Stream from distribution of Third
  Party Products
• Transactional Banking Fees driven by Cash
  Management Services and Government Business

CAGR over 4 years (2002 - 2006)
29
Spreads
Net Interest Margin
30
Capital Adequacy
CRAR and Tier 1 ratio
12.7
11.2
11.1
10.9
10.3
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Shareholder Returns

• 25.9 average return on equity over 5 years

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UTI Bank Overview
Shareholding Pattern 30.6.2006

• Share Capital - Rs. 2.80 billion
• Net Worth - Rs. 29.07 billion
• Book Value per Share - Rs. 107.03

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Experienced Management Team
Human Resources

• Experienced management team with Bank since
  inception
• Skilled and qualified workforce
• Well incentivised with low attrition rates
• Average age of bank employee 30 Years

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Key Themes
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The Future
Continued focus on retail financial sector

• By providing banking convenience to customers
• Offering differentiated products to meet specific
  needs

• Focus on core income streams
• Expand distribution network and alternate
  delivery channels

High quality earnings

• Customer convenience / efficiency / versatility
• Cost reduction

Continuously upgrade IT systems

• Sustain loan and investment portfolio quality
• Continuous improvement in quality of credit

Strengthen risk management systems and process

• Growing trade opportunities
• Growing NRI business

International presence
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Thank You
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Safe Harbor

• Except for the historical information contained
  herein, statements in this release which contain
  words or phrases such as will, aim, will
  likely result, would, believe, may,
  expect, will continue, anticipate,
  estimate, intend, plan, contemplate,
  seek to, future, objective, goal,
  strategy, philosophy, project, should,
  will pursue and similar expressions or
  variations of such expressions may constitute
  "forward-looking statements". These
  forward-looking statements involve a number of
  risks, uncertainties and other factors that could
  cause actual results to differ materially from
  those suggested by the forward-looking
  statements. These risks and uncertainties
  include, but are not limited to our ability to
  successfully implement our strategy, future
  levels of non-performing loans, our growth and
  expansion, the adequacy of our allowance for
  credit losses, our provisioning policies,
  technological changes, investment income, cash
  flow projections, our exposure to market risks as
  well as other risks. UTI Bank Limited undertakes
  no obligation to update forward-looking
  statements to reflect events or circumstances
  after the date thereof.