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HDFC
Standard LifeInsurance
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HDFC
Standard
Life
"Experto Credite."(Trust one whohas proved it - Virgil, 2,000years ago.)
Why HDFCSL?
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HDFCs GEOGRAPHICALSPREAD
No. of Offices
1992 26
1997 32
1998 41
1999 492000 67
2001 87
2002 118
2003 142
2004 173
Regionaloffice
Branch office
Outreach Program to 90 locations
Deposit & loan products offered
to individuals in over 2400 towns and cities.
31 new offices opened in 2003-04
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LOAN APPROVALS AND DISBURSEMENTS
(FY04)
90.41
76.17
117.32
99.51
152.16
126.97
0.00
20.00
40.00
60.00
80.00
100.00
120.00
140.00
160.00
FY 02 FY 03 FY 04
LOANS APPROVED LOANS DISBURSED
Rs.
inbillion
Total
GrowthFY 04
Approvals 30%
Disbursements 28%
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CORE BUSINESS - LENDING(As at March 31, 2004)
Others
INDIVIDUALS
Home Loans
Fixed rate loan Floating rate loan
Home Improvement Loans
Home Extension Loans
Short Term Bridging Loan
Loans to NRIs
CORPORATE
BODIES
1%
30%69%
Total loans outstanding as at Mar04 - Rs. 279.74 bn (excludes loanssecuritised)
Y-o-Y growth of 29%
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HOME LOANS - HDFCS STRENGTHS
Low average loan to value ratio
Debt averse nature of borrowers
PDCs obtained from most customers or
DAS arrangements with employers
Low instalment to income ratio
Steady level of prepayments
Growth in urban market / salaried class
Quality of underwriting
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LOAN QUALITY & PROVISION FOR CONTINGENCIES
0.91
1.30
0.92
1.38
0.89
1.19
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
FY02 FY03 FY04
NPLs AS A % OF PORTFOLIO
PROVISION FOR CONTINGENCIES AS A % OF PORTFOLIO
Percentage
Portfolio includes loans, preference shares, debentures &
corporate deposits for financing real estate projects
As at March 2004
(Rs. in billion)
NPLs 2.57
Provision forContingencies 3.43
Portfolio 288.60
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EMPLOYEE PRODUCTIVITY
2004 1995 1990
Number of employees 1230 771 727
Number of offices 173 28 24
Profit per employee (Rs. in mn) 6.9 1.9 0.3
Assets per employee (Rs. in mn) 261 69 19
Administrative expenses to
average total assets (%) 0.49 0.67 0.76
Cost income ratio (%) 13.3 22.3 30.9
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2004 ^ 2003 ^ 2002
^
Market price per share (Rs) 620 332 343
Market Capitalisation (USD Bn) 3.4 1.8 0.9
Earnings per share (Rs) 35 28 24
Adjusted Book value per share including
appreciation in value of listed investments (Rs) 244 181 168
Return on equity (%) 26.5 24.0 22.9
Dividend payout ratio (%) 44.1 43.9 52.5
^ All values are adjusted for the bonus shares allotted by the Corporation in the ratio
of 1:1 in Dec-02
RETURN TO INVESTORS
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INTEGRATED FINANCIAL SERVICES
SECURITISATION
Future Activities
DISTRIBUTION
HDFC CHUBBGENERAL INSURANCE
CO. LTD.
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HDFC BANK HDFC currently holds 24.18 % of equity in HDFC Bank
Stock also listed on NYSE in the form of American Depository Shares
Network of312 branches in 163 locations & over 910 ATMs
Customer base of over 3.72 million accounts
Key business areas
Wholesale banking Retail banking Treasury operations
Financials (as per Indian GAAP) for the year ended March 31, 2004
Total income: Rs 30.3 bn, increase of 20% over previous year
PAT: Rs 5.1 billion, increase of 31.4% over previous year
Return on Equity : 20.1% (annualised)
Market capitalisation : Rs 107 billion (US$ 2.48 billion)
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HDFC ASSET MANAGEMENT
Joint Participation Agreement with Standard Life Investments (SLI)
HDFC MF offers 20 schemes which include equity & debt oriented
schemes
HDFC network distributes mutual fund products & acts as investor
service centre
Earned a Profit Before Tax of Rs 444.2 million for FY04 as against Rs.
224.5 million for FY03
Paid a dividend of 40% for FY04 to equity shareholders and 10% to
preference shareholders
The assets under management (AUM) of HDFC MF stood at Rs.150.25 bn as on Mar 31, 2004 becoming the second largest private
sector mutual fund house in India
Valued in June 2003 at Rs 3.4 billion (17 times the capital of the
company) with AUM of Rs 85 bn
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INTELENET GLOBAL SERVICES LIMITED- A JV BETWEEN TCS AND HDFC
Offers Business Process Outsourcing (BPO) services to international customers
Contact Centre Management (CCM) ,Transaction Processing (TP), Financial &
Services, E-mail management & IT Help Desk
Intelenets clients reputed international companies
Financial clients : Household International, CNA Insurance, Standard Life Healthcar
J P Morgan Chase, Barclays Plc
Retail clients : Britannia Music Co. , NEXT Plc. & Somerfield Stores
Others :General Mills , United Utilities, RCI, NRES
Other large deals: AT&T Wireless, Trans Union
Revenue for FY04 Rs.1.17 bn ; Profit before deferred tax (FY 04) Rs 108 million
No. of Operational Employees 2373 ( 1686 Voice & 687 Non-Voice)
Total No. of Employees - 2959
Delivery Centres - Navi Mumbai 500 seats, Mumbai 2100 seats, Chennai 150 seats
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CREDIT INFORMATION BUREAU INDIA LIMITED (CIBIL)
In partnership with State Bank of India, Trans Union International Inc., Dun &
Bradstreet Information Services India Pvt. Limited. As per RBI guidelines, CIBIL maintains a database of suit filed accounts of
(i) Rs. 10 mn & above (ii) willful defaulters of Rs. 2.5 mn & above
The bureau deals with both positive and negative credit information which will be
sold
Credit information from the bureau will be sold in the form of credit reports
Potential users of these credit reports are:
Banks , NBFCs & financial institutions
Consumer & mortgage finance companies
Credit card companies & other service providers e.g. mobile phones companies
etc.
87 credit grantors that have accepted membership of CIBIL
60 banks, 8 NBFCs, 8 HFCs, 8 FIs, 2 SFCs & 1 credit card company
CIBIL launched the Operations for its Consumer credit information bureau (software
licensed by Trans Union) on April 05, 2004
The Commercial Credit Information Bureau (software licensed by Dun & Bradstreet)
is expected to be launched in the second half of FY 05
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HDFC CHUBB GENERAL INSURANCE COMPANY LTD. Tie up with CHUBB Corporation, USA, a leading property & casualty insurer with
$ 30 bn in assets
HDFC holds 74.8% of the equity of HCGICL
HCGICL offers Auto Insurance, Home Insurance, Group Accident Insurance,
Group Travel Insurance, Commercial Insurance which includes Fire and Marine
and Specialty Insurance Products like Directors & Officers Liability
Achieved Gross Written Premium of Rs. 1.17 bn with over 2,20,000 customers
Operating out of 26 locations across the country.
HDFC network is used to cross sell Home Insurance & Accident Insurance
HDFC and HDFC Bank database is being used to cross sell Accident Insurance
Chubb's expertise in settlement & loss control will help the JV set new
standards in the general insurance industry
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AWARDS & ACCOLADES CII-EXIM Bank Comendation Certificate for commitment to Total Quality
Management - 2000
Euromoney identified HDFC as one of Asias top 10 best managed companies in
the finance sector - 2001
Rated as the Best Non-Banking Financial Company in Asia by Institutional
Investor Research Group 2002
HDFC won the International Financing Review - AsiasIndia Capital Markets Deal
of the Year for 2002 Award for its FRN issue in the international market - 2002
HDFC was identified as the best managed financial institution in India in the Fox-
Pitt Keltons survey of Asias best managed banks and financial institutions -
2002
Among the Top 10Most Respected Companies in India Business World
Among the Top 10Most Admired Companies in India Business Barons - 2003
Indias Second Best Managed Company Finance Asia - 2003
National Award for Excellence in Corporate Governance by The Institute of
Company Secretaries of India
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AWARDS & ACCOLADES
United Nations Scroll of Honour - 1991
Indias best managed company by Asiamoney magazine - 1995 and
1996
Most competitive Indian company by Euromoney - 1997
One of the 5 best Indian Boards by Business Today -1997
Best presented accounts 1994-95 and 1996-97 (3rd place) - in the
SAARC region by the South Asian Federation of Accounts in the
financial sector category
Rated as one of the best companies in India for strategy &
management and investor relations by Asiamoney - 1998
Excellence in service industry by the Indian Institute of Marketing
Management & Top Management Club (Pune) -1998
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AWARDS & ACCOLADES
1999 IMC Ramakrishna Bajaj National Quality Award in the service category
CII-EXIM Bank Comendation Certificate for commitment to Total Quality
Management - 2000
Asiamoney declared HDFC as the second best managed company in India - 2001
Euromoney identified HDFC as one of Asias top 10 best managed companies in
the finance sector - 2001
Rated as the Best Non-Banking Financial Company in Asia by Institutional Investor
Research Group 2002
CRISIL assigned HDFC the highest governance & value creation rating
CRISIL GVC Level 1 2002
HDFC won the International Financing Review - AsiasIndia Capital Markets Deal
of the Year for 2002 Award for its FRN issue in the international market - 2002
HDFC was identified as the best managed financial institution in India in the Fox-
Pitt Keltons survey of Asias best managed banks and financial institutions -
2002
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AWARDS & ACCOLADES
Won the prestigious award for "The Best Presented Accounts" in
relation to the Accounts and the Annual Report for the year ended
March 31, 2002 instituted by 'The Institute of Chartered Accountants
of India' for 2001-02 (in the category of Banks, Financial Institutions
and Financial Companies ) for the 12th time. The Theme for this
Annual Report was "REFLECTIONS" on the 25 years of HDFC - Jan30, 2003.
CRISIL assigns Highest Rating for Governance and Value Creation
(GVC) to HDFC - Jan 17, 2003
HDFC amongst India's Most Respected Companies : Business Worldmagazine - Jan 17, 2003
HDFC is The Best Managed Indian FI : Fox Pitt - Jan 13, 2003
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AWARDS & ACCOLADES
JRD Tata Corp. Leadership Award by Tatachem Golden Jubilee Foundation and
All India Management Association - 1996. (for Mr. Deepak Parekh)
Businessman of the Year by Business India - 1996. (for Mr. Deepak Parekh)
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The Standard Life Insurance Assurance Company
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BACKGROUND
Founded in 1825
Mutual Life Insurance Company since1925
Largest mutual life insurance company in
Europe
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Standard Life - Founded 1825
Head Office - Edinburgh, Scotland (UK)Presence
United Kingdom: 31 branches
Canada 11 "
Ireland 7 "
Germany 1 "
Austria 1 sales office
Spain 31 branchesHong Kong 1 representative office
China 2 representative office
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Unrivaled Reputation For Quality
Year Award
1999 Company of the decade
1998 Company of the year
1997 Company of the year1996 Company of the year
1995 4 star service award
1994 Overall best company
1993 Overall best company1992 Overall best company
1991 3 star service award
1990 Best mortgage services
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Experience In The Indian Market
First market entry - 1847
Innovative products & processes
Last claim settled in 1997
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Standard Life Investments
Assets under management 86.5billion
Investment provider 5 star award forthe eighth successive year
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Standard Life Health Care
UKs leading private medical insurerssince 1988
Fourth in the private medical insurersmarket
Health insurance company of the
year 2003 25% growth in Jan Dec 2003
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Standard Life Bank
Launched on 1st January 1998
Mortgages under management of
8.7 billion
30000 new motgage completions
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1. History of The Joint
Venture The Partnership
Discussions commenced - January 1995
Joint venture agreement signed -October 1995
Joint venture agreement renewed -October 1998
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Life Insurance project team established - January2000 (Mumbai)
Company officially incorporated - 14th August 2000
First private sector Life Insurance company to be
granted a certificate of registration - 23 October 2000
Shareholding - HDFC 81.4 %Standard Life 18.6 %
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HDFC Standard Life
New business premium ofRs. 232.5 crore in2003-04 on annual premium income (API) basis.
Registered a year-on-year growth of76%
Corporate agency channel,including its
bancassurance business grew by 150% to Rs50 Cr.
The recently launched unit linked business
received good market response and contributed
27% of business generated since its launch.
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Vision Statement
The most successful and admired life
insurance company, which means that we
are the most trusted company, the easiest to
deal with, offer the best value for money,
and set the standards in the industry. In
short, The most obvious choice for all.
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Values that will be observed while we work
with HDFCSL:
Integrity
What is it?
Honest and Truthful in every action.
Transparency
Stick to principles irrespective of outcome.
Be just and fair to everyone.
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Values that will be observed while we work
with HDFCSL:Integrity
Why?
Integrity is the bedrock on which the company and theexpectations of the customers and employees are built.
Integrity establishes the credibility of the person, defines thecharacter and empowers one to do justice to the job.
Enables building confidence and trust, achieving transparencyand laying a strong foundation for a binding relationship.
Guiding principle for all walks of life.
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Values that will be observed while we work
with HDFCSL:
Innovation
What is it?
Building a store house of treasures through experiences.
Looking at every product and process through fresh eyeseveryday.
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Values that will be observed while we work
with HDFCSL:Customer centric
Why?
Reinforce brand loyalty by complete transparency.
Customer is the source of revenue for the company.
Customer is the reason for our existence.
Ensure that customer chooses our company to do business
with.
Customers goodwill alone can bring more business andmore customers.
Will contribute to customer retention.
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Values that will be observed while we work
with HDFCSL:People Care
What is it?
Genuinely understanding the people we work with.
Guiding their development through training and support
Helping them develop requisite skills to reach their true potential.
Know them on a personal front.
Create an environment of trust and openness.
Respect for the time of others.
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Values that will be observed while we work
with HDFCSL:People Care
Why?People are the most valuable assets of the company.
Motivate individual to give his / her best.
Establish a valuable relationship with them to create a joyfulworking environment .
Job satisfaction
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Values that will be observed while we work
with HDFCSL:
Team work One for all and all for one
What is it?
Whole team takes the ownership of the deliverables
Consult all involved , understand and arrive at a commonobjective
Co-operate and support across departmental boundaries
Identify strengths and weaknesses accordingly allocateresponsibility to achieve common objectives.
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Growth in demand - driven by improvedaffordability
Falling property prices
Lowest interest rates since inception
Rising income levels
Fiscal incentives on both interest andprincipal repayments
Increasing urbanisation
Increased network of outlets
HOUSING MARKET SCENARIO
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Improved Affordability
Property price estimates in suburbanMumbai Affordability equals property prices byannual income
22.0
15.6
11.1
8.3
6.65.9
5.3 5.1 4.7 4.3
0
5
10
15
20
25
30
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
PropertyValue(RsLac)
&Affordability
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
AnnualIncom
e(Rs)
Property Cost (Lac) Affordability Annual Income (Rs)
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LIABILITIES
(As at March 31, 2004)
1%10%
89%Capital
Reserves
Borrowings
Rupees - 2.47 bn
Rupees31.47 bn
Rupees286.84 bn
- Deposits- Domestic Borrowings
- International
Borrowings
Total Liabilities Rs 320.78 bn (PY Rs 262.96 bn)
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2% 7%
90%
1%
Loans (including pref. shares, debentures
corporate deposits for real estate projectsInvestments
Net Current Assets
Fixed Assets
ASSET PROFILE(As at March 31, 2004)
Total Assets as at March 31, 2004
Rs. 320.78 billion (US $ 7.17
billion)
Total Assets as at March 31, 2003
Rs. 262.96 billion (US $ 5.88 billion)
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BREAK-UP OFBORROWINGS
(As at March 31, 2004)
33%
11%
33%
23%
DEPOSITS (33%)
DOMESTIC TERM LOANS (33%)
BONDS, DEBENTURES &
COMMERCIAL PAPER (23%)
INTERNATIONAL BORROWINGS
Total Borrowings Rs 286.84 bn (PY Rs 232.52 bn)