1.  Capital Infusion
 
 During the year ended March 31, 2010, the Bank allotted 2,62,00,220
 equity shares of Rs. 10 each at a premium of Rs. 1,520.13 per share to
 Housing Development Finance Corporation Limited (‘HDFC Ltd.’), on their
 exercising the warrants issued to them in June 2008. As a result,
 during the year ended March 31, 2010, equity share capital of the Bank
 increased by Rs. 26,20 lacs and share premium by Rs. 3,982,77 lacs.
 
 2 Capital Adequacy
 
 The Bank’s Capital to Risk-weighted Asset Ratio (‘Capital Adequacy
 Ratio’) is calculated in accordance with the RBI’s ‘Prudential
 Guidelines on Capital Adequacy and Market Discipline - Implementation
 of the New Capital Adequacy Framework’ (‘Basel II’). Under the Basel II
 framework, the Bank is required to maintain a minimum capital adequacy
 ratio of 9% on an ongoing basis for credit risk, market risk and
 operational risk, with a minimum Tier I capital ratio of 6%. Further,
 the minimum capital maintained by the Bank as on March 31, 2011 is
 subject to a prudential floor, which is the higher of the following
 amounts :
 
 (a) Minimum capital required as per the Basel II framework.
 
 (b) 80% of the minimum capital required to be maintained under the
 Basel I framework.
 
 3 Earnings Per Equity Share
 
 Basic and Diluted earnings per equity share have been calculated based
 on the net profit after taxation of Rs. 3,926,39 lacs (previous year : Rs.
 2,948,70 lacs) and the weighted average number of equity shares
 outstanding during the year amounting to Rs. 46,18,06,978 (previous year
 : Rs. 43,64,39,573).
 
 Basic earnings per equity share have been computed by dividing net
 profit after taxation by the weighted average number of equity shares
 outstanding for the year. Diluted earnings per equity share have been
 computed by dividing net profit after taxation by the weighted average
 number of equity shares and dilutive potential equity shares
 outstanding during the year.
 
 There is no impact of dilution on profits in the current year and
 previous year.
 
 4 Reserves and Surplus
 
 Draw Down from Reserves
 
 There has been no draw down from Reserves during the year ended March
 31, 2011 and the year ended March 31, 2010.
 
 General Reserve
 
 The Bank has made an appropriation of Rs. 392,64 lacs (previous year : Rs.
 294,87 lacs) out of profits for the year ended March 31, 2011 to
 General Reserve pursuant to Companies (Transfer of Profits to Reserves)
 Rules, 1975.
 
 Investment Reserve Account
 
 During the year, the Bank has transferred Rs. 15,56 lacs (net) from
 Profit and Loss Account to Investment Reserve Account. In the previous
 year, the Bank transferred Rs. 1,49 lacs (net) from Investment Reserve
 Account to the Profit and Loss Account.
 
 5 Accounting for Employee Share based Payments
 
 The shareholders of the Bank approved grant of equity share options
 under Plan “A” in January 2000, Plan “B” in June 2003, Plan “C” in June
 2005, Plan “D” in June 2007 and Plan “E” in June 2010. Under the terms
 of each of these Plans, the Bank may issue Equity Stock Options
 (‘ESOPs’) to employees and directors of the Bank, each of which is
 convertible into one equity share. All the plans were framed in
 accordance with the SEBI (Employee Stock Option Scheme & Employee Stock
 Purchase Scheme) Guidelines, 1999 as amended from time to time. Plan A
 provides for the issuance of options at the recommendation of the
 Compensation Committee of the Board (the “Compensation Committee”) at
 an average of the daily closing prices on the Bombay Stock Exchange
 Limited during the 60 days preceding the date of grant of options.
 
 Plans B, C, D and E provide for the issuance of options at the
 recommendation of the Compensation Committee at the closing price on
 the working day immediately preceding the date when options are
 granted. For Plan B the price is that quoted on an Indian stock
 exchange with the highest trading volume during the preceding two
 weeks, while for Plan C, Plan D and Plan E the price is that quoted on
 an Indian stock exchange with the highest trading volume as of working
 day preceding the date of grant.
 
 Such options vest at the discretion of the Compensation Committee.
 These options are exercisable for a period following vesting at the
 discretion of the Compensation Committee, subject to a maximum of five
 years, as set forth at the time of grant. Modifications, if any, made
 to the terms and conditions of ESOPs as approved by the Compensation
 Committee are disclosed separately.
 
 The eCBoP had granted stock options to its employees prior to its
 amalgamation with the Bank. The options were granted under the
 following Schemes framed in accordance with the SEBI (Employee Stock
 Option Scheme & Employee Stock Purchase Scheme) Guidelines, 1999 as
 amended from time to time :
 
 1) Key ESOP-2004
 
 2) General ESOP-2004
 
 3) General ESOP-2007
 
 The outstanding options granted under each of the above Schemes and the
 grant prices were converted into equivalent HDFC Bank options and
 prices in the swap ratio of 1:29 i.e. 1 stock option of HDFC Bank for
 every 29 stock options granted and outstanding of eCBoP as on May 23,
 2008, the effective date of the amalgamation, in accordance with Clause
 9.9 of the Scheme of Amalgamation of eCBoP with the Bank. The vesting
 dates for the said stock options granted in various tranches were
 revised as per Clause 9.9 of the Scheme. All the aforesaid stock
 options are exercisable within a period of 5 years from the date of
 vesting. Key Options were granted at an exercise price, which was less
 than the then fair market price of the shares. General Options were
 granted at the fair market price. The fair market price was the latest
 available closing price, prior to the date of the Board of Directors
 meeting in which options were granted or shares were issued, on the
 stock exchange on which the shares of the Bank were listed. If the
 shares were listed on more than one stock exchange, then the stock
 exchange where there was highest trading volume on the said date was
 considered.
 
 Method used for accounting for shared based payment plan
 
 The Bank has elected to use intrinsic value method to account for the
 compensation cost of stock options to employees and directors of the
 Bank. Intrinsic value is the amount by which the quoted market price of
 the underlying share exceeds the exercise price of the option.
 
 6 Upper & lower Tier II capital and innovative perpetual debt
 instruments Subordinated debt (Lower Tier II capital), Upper Tier II
 capital and innovative perpetual debt instruments outstanding as at
 March 31, 2011 are Rs. 3,331,20 lacs (previous year : Rs. 3,393,20 lacs), Rs.
 3,861,85 lacs (previous year : Rs. 2,759,90 lacs) and Rs. 200,00 lacs
 (previous year : Rs. 200,00 lacs) respectively.
 
 During the year ended March 31, 2011, the Bank raised subordinated debt
 qualifying for Tier II capital amounting to Rs. 1,105,00 lacs (previous
 year : Nil).
 
 7 Other Liabilities
 
 Other liabilities includes contingent provisions towards standard
 assets of Rs. 760,29 lacs (previous year : Rs. 760,29 lacs). In line with
 the RBI circular, provision for standard assets has been made @ 0.40%
 except for Direct advances to Agriculture and SME sectors where
 provision is made @ 0.25%, for advances to Commercial Real Estate
 sector where provision is made @ 1% and for housing loans offered at a
 comparatively lower rate of interest in the first few years, after
 which rates are reset at higher rates where provision is made @ 2%. The
 provisions held by the Bank over and above that required under the
 revised norms have not been reversed in accordance with these norms.
 
 As per the recommendatory provisions of AS-31, Financial Instruments :
 Presentation, the Bank has grossed up unrealised gain on Foreign
 Exchange and Derivative Contracts under Other Assets and unrealised
 loss on Foreign Exchange and Derivative Contracts under Other
 Liabilities as on March 31, 2011, which hitherto was reported on net
 basis as Other Assets or Other Liabilities. Accordingly, Other
 Liabilities as on March 31, 2011 includes unrealised loss on Foreign
 Exchange and Derivative Contracts of Rs. 7,369,45 lacs.
 
 - Details of investments category-wise
 
 The details of investments held under the three categories viz. ‘Held
 for Trading’, ‘Available for Sale’ and ‘Held to Maturity’ is as under :
 
 - Investments include securities of Face Value (FV) aggregating -
 820,00 lacs (previous year : FV - 1,000,25 lacs) which are kept as
 margin for clearing of securities and of FV - 2,150,00 lacs (previous
 year : FV - 7,135,00 lacs) which are kept as margin for Collateral
 Borrowing and Lending Obligation (CBLO) with the Clearing Corporation
 of India Ltd.
 
 - Investments include securities of FV aggregating - 6,00 lacs
 (previous year : FV - 6,00 lacs) which are kept as margin with National
 Securities Clearing Corporation of India Ltd. (‘NSCCIL’) and of FV -
 5,00 lacs (previous year : FV - 5,00 lacs) which are kept as margin
 with MCX - SX Clearing Corporation Ltd.
 
 - Investments having FV amounting to - 30,556,80 lacs (previous year :
 FV - 29,810,78 lacs) are kept as margin with the RBI towards Real Time
 Gross Settlement (RTGS).
 
 - Other investments include certificate of deposits : - 4,854,46 lacs
 (previous year : - 589,15 lacs), commercial paper : - 1,161,17 lacs
 (previous year : - 18,84 lacs), investments in equity mutual fund units
 : Nil (previous year : -100 lacs), security receipts issued by
 Reconstruction Companies : - 25,04 lacs (previous year : - 8,78 lacs),
 deposits with NABARD under the RIDF Deposit Scheme : - 6,503,04 lacs
 (previous year : - 4,197,11 lac, deposits with SIDBI and NHB under the
 Priority / Weaker Sector Lending Schemes : - 2,755,38 lacs (previous
 year : - 1,297,19 lacs).
 
 - The Bank has made investments in certain companies wherein it holds
 more than 25% of the equity shares of those companies. Such investments
 do not fall within the definition of a joint venture as per AS-27,
 Financial Reporting of Interest in Joint Ventures, issued by the ICAI,
 and the said accounting standard is thus not applicable. However,
 pursuant to RBI circular no. DBOD. NO. BP.BC.3/21.04.141/2002, dated
 July 11, 2002, the Bank has classified these investments as joint
 ventures.
 
 - Qualitative Disclosures on Risk Exposure in Derivatives
 
 Overview of business and processes
 
 Derivatives are financial instruments whose characteristics are derived
 from underlying assets, or from interest and exchange rates or indices.
 These include forwards, swaps, futures and options. The notional
 amounts of financial instruments such as foreign exchange contracts and
 derivatives provide a basis for comparison with instruments recognised
 on the balance sheet but do not necessarily indicate the amounts of
 future cash flows involved or the current fair value of the instruments
 and, therefore, do not indicate the Bank’s exposure to credit or price
 risks. The following sections outline the nature and terms of the most
 common types of derivative transactions undertaken by the Bank.
 
 Interest rate contracts
 
 Forward rate agreements give the buyer the ability to determine the
 underlying rate of interest for a specified period commencing on a
 specified future date (the settlement date). There is no exchange of
 principal and settlement is effected on the settlement date. The
 settlement amount is the difference between the contracted rate and the
 market rate prevailing on the settlement date.
 
 Interest rate swaps involve the exchange of interest obligations with a
 counterparty for a specified period without exchanging the underlying
 (or notional) principal.
 
 Interest rate caps and floors give the buyer the ability to fix the
 maximum or minimum rate of interest. The writer pays the amount by
 which the market rate exceeds or is less than the cap rate or the floor
 rate respectively.  A combination of interest rate caps and floors is
 known as an interest rate collar.
 
 Interest Rate Futures are standardised interest rate derivative
 contracts traded on a recognized stock exchange to buy or sell a
 notional security or any other interest bearing instrument or an index
 of such instruments or interest rates at a specified future date, at a
 price determined at the time of the contract.
 
 Exchange rate contracts
 
 Forward foreign exchange contracts are agreements to buy or sell fixed
 amounts of currency at agreed rates of exchange on future date. All
 such instruments are carried at fair value, determined based on either
 FEDAI rates or on market quotations.
 
 Cross currency swaps are agreements to exchange principal amounts
 denominated in different currencies. Cross currency swaps may also
 involve the exchange of interest payments on one specified currency for
 interest payments in another specified currency for a specified period.
 
 Currency options give the buyer, on payment of a premium, the right but
 not an obligation, to buy or sell specified amounts of currency at
 agreed rates of exchange on or before a specified future date. Option
 premia paid or received is recorded in Profit and Loss Account for
 rupee options at the expiry of the option and for foreign currency
 options on premium settlement date.
 
 Currency Futures contract is a standardized contract, traded on an
 exchange, to buy or sell a certain underlying asset or an instrument at
 a certain date in the future, at a specified price. The underlying
 instrument of a currency future contract is the rate of exchange
 between one unit of foreign currency and the INR.
 
 Most of the Bank’s derivative transactions relate to sales and trading
 activities. Sale activities include the structuring and marketing of
 derivatives to customers to enable them to hedge their market risks
 (both interest rate and exchange risks), within the framework of
 regulations as may apply from time to time. The Bank deals in
 derivatives on its own account (trading activity) principally for the
 purpose of generating a profit from short term fluctuations in price or
 yields. The Bank also deals in derivatives to hedge the risk embedded
 in some of its balance sheet assets and liabilities.
 
 Constituents involved in derivative business
 
 The Treasury front office enters into derivatives transactions with
 customers and inter-bank counterparties. The Bank has an independent
 back-office and mid-office as per regulatory guidelines. The Bank has a
 credit and market risk department that makes various counterparty and
 market risks limit assessments, within the risk architecture and
 processes of the Bank.
 
 Derivative policy
 
 The Bank has in place a policy which covers various aspects that apply
 to the functioning of the derivatives business. The derivatives
 business is administered by various market risk limits such as position
 limits, tenor limits, sensitivity limits and value-at-risk limits that
 are approved by the Board and the Risk Management Committee (RMC).  All
 methodologies used to assess credit and market risks for derivative
 transactions are specified by the market risk unit. Limits are
 monitored on a daily basis by the mid-office.
 
 The Bank has implemented a Board approved policy on Customer
 Suitability & Appropriateness to ensure that derivative transactions
 entered into are appropriate and suitable to the customer’s nature of
 business / operations.  Before entering into a derivative deal with a
 customer, the Bank scores the customer on various risk parameters and
 based on the overall score level it determines the kind of product that
 best suits its risk appetite and the customer’s requirements.
 
 Classification of derivatives book
 
 The derivative book is classified into trading and banking book.
 Classification of books is made on the basis of the definitions of the
 trading and banking books as specified in the RBI guidelines Ref. No.
 DBOD. No. BP.(SC).  BC.98/21.04.103/99 dated 7th October 1999. The
 trading book is managed within the trading limits approved by the RMC.
 
 Hedging policy
 
 For derivative contracts in the banking book designated as hedge, the
 Bank documents at inception the relationship between the hedging
 instrument and the hedged item, the risk management objective for
 undertaking the hedge and the methods used to assess the hedge
 effectiveness. The assessment is done on an on-going basis to test if
 the derivative is still effective. Hedge effectiveness is the degree to
 which changes in the fair value or cash flows of the hedged item that
 are attributable to a hedged risk are offset by changes in the fair
 value or cash flows of the hedging instrument.
 
 The banking book consists of transactions to hedge balance sheet assets
 or liabilities. The hedge may be against a single asset or liability or
 against a portfolio of asset or liability in specific tenor buckets.
 The tenor of derivative hedges may be less than or equal to tenor of
 underlying asset or liability. If the underlying asset or liability is
 not marked to market, then the hedge is also not marked to market.
 
 - Provisioning, Collateral and Credit Risk Mitigation
 
 The Bank enters into derivative transactions with counter parties based
 on their business ranking and financial position. The Bank sets up
 appropriate limits upon evaluating the ability of the counterparty to
 honour its obligations in the event of crystallization of the exposure.
 Appropriate credit covenants are stipulated where required as trigger
 events to call for collaterals or terminate a transaction and contain
 the risk.
 
 The Bank, at the minimum, conforms to the RBI guidelines with regard to
 provisioning requirements. Overdue receivables representing crystalised
 positive mark-to-market value of a derivative contract are transferred
 to the account of the borrower and treated as non-performing asset, if
 these remain unpaid for 90 days or more and full provision is made once
 the receivable is classified as a NPA.
 
 - Details of Single Borrower Limit (SGL), Group Borrower Limit (GBL)
 exceeded by the Bank
 
 During the years ended March 31, 2011 and March 31, 2010, the Bank’s
 credit exposure to single borrowers and group borrowers were within the
 limits prescribed by RBI.
 
 - Unsecured Advances
 
 During the years ended March 31, 2011 and March 31, 2010, there are no
 unsecured Advances for which intangible securities such as charge over
 the rights, licenses, authority, etc. has been taken by the Bank.
 
 15 Provision, Contingent Liabilities and Contingent Assets
 
 Given below are movements in provisions and a brief description of the
 nature of contingent liabilities recognised by the Bank.
 
 a) Movement in provision for credit card and debit card reward points
 (Rs. lacs)
 
 Particulars                           March 31, 2011  March 31, 2010
 
 Opening provision for reward points       34,00           33,57
 
 Provision for reward points made during 
 the year                                  47,07           17,78
 
 Utilisation / Write back of provision for 
 reward points                            (18,37)          (8,83)
 
 Effect of change in rate for accrual of 
 reward points                              1,78           (1,33)
 
 Effect of change in cost of reward points (5,15)          (7,19)
 
 Closing provision for reward points       59,33           34,00
 
 Figures for March 31, 2010 does not include provision for debit card
 reward points
 
 b) Movement in provision for legal and other contingencies (Rs. lacs)
 
 Particulars                         March 31, 2011   March 31, 2010
 
 Opening provision                        271,28           60,29
 
 Movement during the year (net)            45,32          210,99
 
 Closing provision                        316,60          271,28
 
 
 
 1.  Claims against the Bank not acknowledged as debts - taxation
 
 The Bank is a party to various taxation matters in respect of which
 appeals are pending. The Bank expects the outcome of the appeals to be
 favorable based on decisions on similar issues in the previous years by
 the appellate authorities, based on the facts of the case and the
 provisions of Income Tax Act, 1961.
 
 2.  Claims against the Bank
 
 Bank not acknowledged as debts - others
 
 The Bank is a party to various legal proceedings in the normal course
 of business.  The Bank does not expect the outcome of these proceedings
 to have a material adverse effect on the Bank’s financial conditions,
 results of operations or cash flows.
 
 3.  Liability on account of
 
 forward exchange and derivative contracts
 
 The Bank enters into foreign exchange contracts, currency options,
 foward rate agreements, currency swaps and interest rate swaps with
 inter-bank participants on its own account and for customers. Forward
 exchange contracts are commitments to buy or sell foreign currency at a
 future date at the contracted rate. Currency swaps are commitments to
 exchange cash flows by way of interest/principal in one currency
 against another, based on predetermined rates. Interest rate swaps are
 commitments to exchange fixed and floating interest rate cash flows.
 The notional amounts of financial instruments such as foreign exchange
 contracts and derivatives provide a basis for comparison with
 instruments recognised on the balance sheet but do not necessarily
 indicate the amounts of future cash flows involved or the current fair
 value of the instruments and, therefore, do not indicate the Bank’s
 exposure to credit or price risks.  The derivative instruments become
 favorable (assets) or unfavorable (liabilities) as a result of
 fluctuations in market rates or prices relative to their terms.
 
 4.  Guarantees given on behalf of constituents, acceptances,
 endorsements and other obligations
 
 As a part of its commercial banking activities, the Bank issues
 documentary credit and guarantees on behalf of its customers.
 Documentary credits such as letters of credit enhance the credit
 standing of the customers of the Bank. Guarantees generally represent
 irrevocable assurances that the Bank will make payments in the event of
 the customer failing to fulfill its financial or performance
 obligations.
 
 5.  Other items for which the Bank is contingently liable
 
 These includes : a) Credit enhancements in respect of securitized-out
 loans b) Bills rediscounted by the Bank c) Capital commitments d) Repo
 borrowings
 
 *Also refer Schedule 12 - Contingent liabilities
 
 5.  Net NPAs are non-performing assets net of interest in suspense,
 specific loan loss provisions, floating provisions (as on March 31,
 2010), ECGC claims received, provisions for funded interest term loans
 classified as NPAs and provisions in lieu of diminution in the fair
 value of restructured assets classified as NPAs.
 
 6.  Customer assets include net advances, credit substitutes like
 debentures, commercial papers and loans and investments in securitised
 assets bought in.
 
 7.  Net advances are equivalent to gross advances net of bills
 rediscounted, specific loan loss provisions, floating provisions (as on
 March 31, 2010), interest in suspense, ECGC claims received, provision
 for funded interest term loans classified as NPA and provisions in lieu
 of diminution in the fair value of restructured assets.
 
 8.  Provision coverage ratio is based on specific loan loss provisions
 and floating provisions (as on March 31, 2010), and does not include
 assets written off.
 
 17 Interest Income
 
 Interest income under the sub-head Income from Investments includes
 dividend received during the year ended March 31, 2011 on units of
 mutual funds, equity and preference shares amounting to - 188,32 lacs
 (previous year : - 434,86 lacs).
 
 18 Earnings from Standard Assets Securitised-out / Assets sold
 
 During the years ended March 31, 2011 and March 31, 2010, there were no
 standard assets securitised-out / sold by the Bank.
 
 Form and quantum of services and liquidity provided by way of credit
 enhancement
 
 The Bank has provided credit and liquidity enhancements in the form of
 cash collaterals / guarantees / subordination of cash flows etc., to
 the senior pass through certificates (PTCs). The total value of credit
 enhancement outstanding in the books as at March 31, 2011 was - 446,21
 lacs (previous year : - 457,69 lacs), liquidity enhancement was - 16,65
 lacs (previous year : - 16,58 lacs) and third party liquidity facility
 undrawn was - Nil (previous year : - 13,24 lacs). Outstanding servicing
 liability was - 62 lacs (previous year : f 1,07 lacs).
 
 19 Other Income
 
 - Commission, Exchange and Brokerage income
 
 - Commission, exchange and brokerage income is net of correspondent
 bank charges and brokerage paid on purchase and sale of investments.
 
 - Commission income includes fees / remuneration (net of service tax)
 of - 713,25 lacs (previous year : - 566,01 lacs) in respect of the
 bancassurance business undertaken by the Bank during the year.
 
 - Miscellaneous Income
 
 Miscellaneous income includes profit / (loss) of - (134,50) lacs
 (previous year : - 13,02 lacs) pertaining to derivative transactions.
 
 20 Other Expenditure
 
 Other expenditure includes expenses on collections and recoveries
 amounting to - 320,74 lacs (previous year : - 391,08 lacs) and
 outsourcing fees amounting to - 419,38 lacs (previous year : - 366,91
 lacs) exceeding 1% of the total income of the Bank.
 
 24 Related Party Disclosures
 
 As per AS-18, Related Party Disclosure, issued by the ICAI, the Bank’s
 related parties are disclosed below :
 
 Promoter
 
 Housing Development Finance Corporation Limited
 
 Enterprises under common control of the promoter
 
 HDFC Asset Management Company Limited
 
 HDFC Standard Life Insurance Company Limited
 
 HDFC Developers Limited
 
 HDFC Holdings Limited
 
 HDFC Investments Limited
 
 HDFC Trustee Company Limited
 
 GRUH Finance Limited
 
 HDFC Realty Limited
 
 HDFC Ergo General Insurance Company Limited
 
 HDFC Venture Capital Limited
 
 HDFC Ventures Trustee Company Limited
 
 HDFC Sales Private Limited
 
 HDFC Property Ventures Limited
 
 HDFC Asset Management Company (Singapore) Pte. Limited
 
 Griha Investments
 
 Credila Financial Services Private Limited
 
 HDFC Investments Trust Limited
 
 Subsidiaries
 
 HDFC Securities Limited
 
 HDB Financial Services Limited
 
 Associates
 
 Atlas Documentary Facilitators Company Private Limited HBL Global
 Private Limited Centillion Solutions and Services Private Limited
 International Asset Reconstruction Company Private Limited
 
 Key Management Personnel
 
 Aditya Puri, Managing Director Paresh Sukthankar, Director Harish
 Engineer, Director
 
 Related Parties to Key Management Personnel
 
 Salisbury Investments Private Limited, Anita Puri, Amit Puri, Amrita
 Puri, Adishwar Puri, Aarti Sood, Sangeeta Sukthankar, Dattatraya
 Sukthankar, Shubhada Sukthankar, Akshay Sukthankar, Ankita Sukthankar,
 Madhavi Lad, Sudha Engineer, Shreematiben Engineer, Nikhil Engineer,
 Uma Engineer, Mahesh Engineer.
 
 In accordance with paragraph 5 of AS 18, the Bank has not disclosed
 certain transactions with Key Management Personnel and relatives of Key
 Management Personnel as they are in the nature of banker-customer
 relationship.
 
 The significant transactions between the Bank and related parties for
 year ended March 31, 2011 are given below.  A specific related party
 transaction is disclosed as a significant related party transaction
 wherever it exceeds 10% of all related party transactions in that
 category :
 
 - Rendering of Services : HDFC Standard Life Insurance Company Limited
 Rs. 669,64 lacs (previous year : Rs. 533,60 lacs), HDFC Limited Rs. 96,47
 lacs (previous year : Rs. 77,10 lacs)
 
 - Receiving of Services : HBL Global Private Limited Rs. 290,19 lacs
 (previous year : Rs. 211,54 lacs); Atlas Documentary Facilitators Company
 Private Limited Rs. 266,66 lacs (previous year : Rs. 244,50 lacs)
 
 26 Penalties levied by the RBI
 
 No penalty requiring disclosure in public domain was levied on the Bank
 during the financial years ended March 31, 2011 and March 31, 2010.
 
 27 Dividend in respect of shares to be allotted on exercise of stock
 options Any allotment of shares after the balance sheet date but before
 the book closure date pursuant to the exercise of options during the
 said period will be eligible for full dividend, if approved at the
 ensuing Annual General Meeting.
 
 29 Disclosure of Letter of Comforts (LoCs) issued by the Bank
 
 The Bank has not issued any Letter of Comfort during the years ended
 March 31, 2011 and March 31, 2010.
 
 30 Changes in Accounting Practice
 
 Effective April 1, 2010, the Bank has classified fees paid of Rs. 226,32
 lacs (previous year : Rs. 175,32 lacs) relating to transactions done by
 the Bank’s customers on other banks’ ATMs, which hitherto were netted
 from fees and commissions, under operating expenses. Figures for the
 previous year have been regrouped / reclassified to conform to current
 year’s classification.
 
 31 Change in Accounting Estimates
 
 Useful Life of Fixed Assets
 
 During the year, the Bank revised the estimated useful life of point of
 sale machines and certain information technology servers. Depreciation
 on these assets is charged prospectively over the revised useful life
 of the asset.  Consequently, profit after tax for the year was lower by
 Rs. 39,05 lacs.
 
 32 Small and Micro Industries
 
 Under the Micro, Small and Medium Enterprises Development Act, 2006
 which came into force from October 2, 2006, certain disclosures are
 required to be made relating to Micro, Small and Medium enterprises.
 There have been no reported cases of delays in payments to micro and
 small enterprises or of interest payments due to delays in such
 payments.
 
 34 There are no Off-Balance Sheet SPVs sponsored by the Bank, which
 need to be consolidated as per accounting norms.
 
 35 Comparative figures
 
 Figures for the previous year have been regrouped and reclassified
 wherever necessary to conform to the current year’s presentation.