1. Indian Banking 2020 Giving wings to corporate aspirations Indian Banking 2020 Giving wings to corporate aspirations

2. 1 20102009 Profit Before Tax (Rs Crore) Wholesale BankingRetail Banking Source: IBA, Capitaline, Company ARs, BCG analysis Segment contribution: Average for leading Indian banks Corporate banking – a significant contributor to industry profits

3. 2 Giving wings to corporate aspirations Top 3 new expectations from banks in the next decade Sources: FICCI-BCG Market Survey; N = 100. Small MediumLarge Quality of relationship management Credit turnaround time All products that I need at one place Technology to integrate into my internal IT system All India presence / network Quality of relationship management Fund my M&A needs Support my international expansion Technology to integrate into my internal IT system

4. 3 Giving wings to corporate aspirations Strong growth will continue over the next decade – with a shift in mix 8 100 20 0 Deposits Advances Fee Income I-Banking Treasury 2020P 38 24 8 2008-09 46 20 4 % 80 60 40 CAGR (09-20) 6x 10x 7x 5x 6x Corporate banking revenue pools

5. 4 Giving wings to corporate aspirations Mixed views about prospects of disintermediation in corporate banking Survey Q: Wholesale market in India will get disinter mediated and corporate will by pass banks to raise funds No Opinion Highly Unlikely Unlikely Likely Highly Likely % respondents Public Private/Foreign PublicPrivate/Foreign Note : Sample Size - 14-PSU banks, 7-private banks, 4-Foreign Banks Source: IBA-BCG Market Survey 2010

6. 5 Giving wings to corporate aspirations "Winners" see the crisis as an opportunity Despite crisis, leading corporate banks generating strong and growing economic profit Outperformance possible in all segments 'Transaction champion' strategy drives superior results Superior risk management a major performance differentiator Data transparency still a major challenge for corporate banks 'Blue Chip Corporate Banks' positioned to significantly outperform in coming years Despite crisis, leading corporate banks generating strong and growing economic profit Outperformance possible in all segments 'Transaction champion' strategy drives superior results Superior risk management a major performance differentiator Data transparency still a major challenge for corporate banks 'Blue Chip Corporate Banks' positioned to significantly outperform in coming years Source: BCG Corporate Banking Benchmarking Study 2010

7. 6 Giving wings to corporate aspirations Key success factors to win in Corporate Banking Key Success Factors to win in Corporate Banking End-to-end transparency End-to-end transparency Transaction banking a major priority Solutions driven from clients' pain points Sales major focus for value creation Premium client relationships Transaction champion model Risk culture Targeting high value client clusters Client experience driven distribution model Embedded risk understanding from front to back office Discipline to focus on core client relationships with multiple products Enablers High performance organization High performance organization

8. 7 Giving wings to corporate aspirations How will the corporate banking industry meet the "next decade's promise"? How can the Indian banking industry best meet the evolving needs of large corporates? How important would it be for banks to have - international presence? Scale? How would the investment banking industry evolve in India over the next 5-10 years? What does it mean – for Indian commercial banks? For Indian investment banks? How can the Indian banking industry best meet the evolving needs of large corporates? How important would it be for banks to have - international presence? Scale? How would the investment banking industry evolve in India over the next 5-10 years? What does it mean – for Indian commercial banks? For Indian investment banks?