Exhibit 99.1

14^th July, 2003

The Listing Department
The National Stock Exchange of India          Fax No: 26598237/38
Exchange Plaza,
Bandra Kurla Complex
Mumbai,

Dear Sir,

Re: Unaudited Financial results for the quarter ended 30^th June, 2003

Pursuant to clause 41 of the Listing Agreement, we send herewith our Unaudited Financial results for the quarter ended 30^th June, 2003 and the segment wise reporting in duplicate approved at the Board meeting today and the press release in this connection.

We will publish the results in the Business Standard and Sakal within 48 hours.

Thanking you,

Yours faithfully,
For HDFC Bank Limited

 
Sanjay Dongre
Vice President (Legal) &
Company Secretary

Encl: a/a

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Unaudited financial results for the quarter ended June 30, 2003
(Rs in lacs)

			Unaudited Results			Unaudited Results			Audited Results for
			for the quarter			for the quarter			the year ended
		Particulars	ended 30/06/2003			ended 30/06/2002			31/03/2003
	1	Interest earned (a) + (b) + (c) + (d)		58446			47916			202297
	a	Interest/discount on advances/bills		25724			17600			78668
	b	Income on investments		30685			26212			111295
	c	Interest on balances with Reserve Bank of India and other inter bank funds		1882			4047			12044
	d	Others		155			57			290
	2	Other income		13273			8132			47310
	A	Total income (1+2)		71719			56048			249607
	3	Interest expended		29938			29067			119196
	4	Operating expenses (e) + (f)		19354			12018			59183
	e	Payment to and provision for employees		5155			3164			15195
	f	Other operating expenses		14199			8854			43988
	B	Total expenditure (3) + (4) (excluding provisions & contingencies)		49292			41085			178379
	C	Operating profit (A – B) (Profit before provisions and contingencies)		22427			14963			71228
	D	Other provisions and contingencies		6650			3462			14143
	E	Provision for taxes		5049			3260			18325
	F	Net profit (C– D– E)		10728			8241			38760
	5	Paid up equity share capital (face value Rs. 10)		28315			28179			28205
	6	Reserves excluding revaluation reserve								196278
	7	Analytical Ratios:
	(i)	Percentage of shares held by Government of India	Nil			Nil			Nil
(ii)		Capital adequacy ratio		11.79	%		15.08	%		11.12	%
(iii)		Earnings per share (par value Rs.10/- each)
		Basic		3.79			2.92			13.75
		Diluted		3.51			2.73			12.79

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Segment information in accordance with the Accounting Standard on Segment Reporting (AS17) of the three operating segments of the Bank are: (Rs in lacs)

	Unaudited Results			Unaudited Results			Audited Results
	for the quarter			for the quarter			for the year
	ended 30/06/2003			ended 30/06/2002			ended 31/03/2003
1. Segment Revenue
a) Wholesale Banking		48117			42660			179771
b) Retail Banking		55826			43777			193144
c) Treasury		9780			8866			42499
Total		113723			95303			415414
Less: Inter Segment Revenue		42004			39255			165807
Income from Operations		71719			56048			249607
2. Segment Results
a) Wholesale Banking		8562			6512			27222
b) Retail Banking		3726			3292			14333
c) Treasury		3489			1697			15530
Total Profit Before Tax		15777			11501			57085
3. Capital Employed
(Segment assets — Segment liabilities)
a) Wholesale Banking		876736			675502			715704
b) Retail Banking		(624194	)		(645521	)		(587010	)
c) Treasury		(24270	)		169673			96202
Total		228272			199654			224896

Note on segment information

The reportable primary segments have been identified in accordance with the Accounting Standard on Segment Reporting (AS-17) issued by the ICAI.

The Bank operates in three segments: wholesale banking, retail banking and treasury services. Segments have been identified and reported taking into account, the target customer profile, the nature of products and services, the differing risks and returns, the organisation structure and the internal business reporting systems.

Segment revenue includes earnings from external customers plus earnings from funds transferred from one segment to the other based on an internal transfer price. Segment result includes revenue less interest expense (whether to customers or to the lending segment based on the internal transfer price) less operating expense and provisions, if any, for that segment.

Segment-wise income and expenses include certain allocations. Interest income is charged by a segment that provides funding to another segment, based on yields benchmarked to an internally developed composite yield curve which broadly tracks market discovered interest rates. Transaction charges are made by the retail banking segment to the wholesale banking segment for the use by its customers of the retail banking segment’s branch

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network or other delivery channels; such transaction costs are determined on a cost plus basis.

Segment capital employed represents the net assets in that segment. It excludes capital and tax related assets.

NOTES:

1.	The above results have been taken on record by the Board at its meeting held on July 14, 2003.
2.	The Bank allotted 11,06,500 shares on April 7, 2003 and 3,28,800 shares on July 4, 2003 pursuant to the exercise of stock options by certain employees.
3.	Other income relates to income from non-fund based banking activities including commission, fees, foreign exchange earnings, earnings from derivative transactions and profits from debt securities.
4.	Previous period figures have been regrouped / reclassified wherever necessary to conform to current periods classification.
5.	The above results for the quarter ended June 30, 2003, have been subjected to a “Limited Review” by the auditors of the bank, as per the listing agreements with The Stock Exchange, Mumbai, the National Stock Exchange and the The Stock Exchange, Ahmedabad.
6.	Status of shareholder complaints received during the quarter ended June 30, 2003:

Total complaints pending for the quarter ended March 31, 2003	Nil
Total complaints received during the quarter ended June 30, 2003	37
Total complaints resolved during the quarter ended June 30, 2003	37
Total complaints pending for the quarter ended June 30, 2003	Nil

7. Rs. 10 lacs = Rs. 1 million
Rs. 10 million = Rs. 1 crore

Place: Mumbai	Aditya Puri
Date: July 14, 2003	Managing Director

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Balance Sheet as at end of first quarter

(Rs. crores)
		As at		As at
		30-06-2003		30-06-2002
CAPITAL AND LIABILITIES
Capital			283		282
Reserves and Surplus			2087		1749
Employees’ Stock Options (Grants) Outstanding			4		8
Deposits			23340		17602
Borrowings			2510		383
Subordinated debt			200		200
Other Liabilities and Provisions			2455		1804
	Total		30879		22028
ASSETS
Cash and balances with Reserve Bank of India			1230		989
Balances with Banks and Money at Call and Short notice			1033		1931
Investments			14449		10379
Advances			11937		7227
Fixed Assets			548		387
Other Assets			1682		1115
	Total		30879		22028

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NEWS RELEASE

HDFC BANK LTD. — FINANCIAL RESULTS (INDIAN GAAP)
FOR THE QUARTER ENDED JUNE 2003

The Board of Directors of HDFC Bank Limited approved the Bank’s accounts for the quarter ended June 30, 2003 at its meeting on Monday, July 14, 2003. The accounts have been subjected to limited review by the bank’s statutory auditors in line with regulatory guidelines.

FINANCIAL RESULTS:

For the quarter ended June 30, 2003, the Bank has posted a strong performance with total income of Rs.717.2 crores as against Rs.560.5 crores in the corresponding quarter ended June 30, 2002. Net revenues (net interest income plus other income) for the quarter ended June 30, 2003 were Rs.417.8 crores, up 54.9 % over Rs.269.8 crores for the corresponding quarter of the previous year. Net interest income (interest earned less interest expended) for the quarter ended June 30, 2003 increased by Rs.96.6 crores to Rs.285.0 crores, driven by average asset growth of 29.7% and an improvement in the net interest margin which crossed 3.5% for the quarter.

Other income for the quarter ended June 30, 2003 was Rs.132.7 crores (Rs.81.3 crores in the corresponding quarter ended June 2002), consisting principally of fees & commissions of Rs.65.0 crores, profit on sale of investments of Rs.38.6 crores and foreign exchange & derivatives revenues of Rs.28.8 crores. Operating expenses for the quarter increased by Rs. 73.4 crores to Rs.193.5 crores, driven primarily by higher marketing & distribution expenses related to the retail asset and credit cards businesses and a continued increase in infrastructural investments to support future growth. Provisions and contingencies for the quarter were Rs.66.5 crores, comprising primarily general & specific loan loss provisions of Rs.50.1 crores and mark-to-market provisions & amortization of premia (for investments in the Held to Maturity category) of Rs.12.3 crores. Profit Before Tax was Rs.157.8 crores for the quarter ended June 30, 2003, up 37.2 % over the corresponding quarter in 2002. After providing Rs.50.5 crores for taxation (Rs.32.6 crores for the corresponding quarter of the previous year), the Bank earned a Net Profit of Rs.107.3 crores, a 30.2 % increase over the first quarter of the previous year.

Balance sheet growth was also healthy, driven primarily by retail growth in both the deposit and loan franchises. As on June 30, 2003, total deposits were Rs.23340 crores, an increase of 32.6 % over Rs.17602 crores as of June 30, 2002. The Bank continued to successfully leverage its expanded branch network and enhanced customer acquisition to build Savings Account deposits which touched Rs.5237 crores, an increase of 55.9 % over June 30, 2002. The Bank’s core customer assets (including advances, corporate debentures, CPs, etc.) increased from Rs. 9865 crores as of June 30, 2002 to Rs. 14113 crores as of June 30, 2003, a growth 43.1 %. Retail loans grew 132.9 % on a year-on-

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year basis to Rs. 3790 crores and now form 30.8 % of gross advances as against 21.7 % of gross advances as at June 30, 2002.

BUSINESS UPDATE:

During the current financial year so far, the Bank’s growth in each of its major business franchises has remained healthy. Total number of retail accounts increased by over 30% from 2.5 million in June 30, 2002 to 3.3 million as of June 30, 2003. As of June 30, 2003, the branch network comprised of 241 branches in 129 locations as against 187 branches in 89 locations in June 2002. Portfolio quality remained among the best in the Indian banking industry with Net NPAs at less than 0.3% of customer assets.

The total Capital Adequacy Ratio (CAR) was 11.79% against the regulatory minimum of 9%.

Note:	i)	Rs.= Indian Rupees
	ii)	1 crore = 10 million
	iii)	All figures and ratios are in accordance with Indian GAAP

Certain statements in this release which contain words or phrases such as “continue to”, “remains”, “should”, “will”, etc., and similar expressions or variation of these expressions or those concerning our future prospects are forward looking statements. Actual results may differ materially from those suggested by the forward looking statements due to a number of risks or uncertainties associated with the expectations. 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 allowances for investment and credit losses, technological changes, volatility in investment income, our exposure to market risks as well as other risks detailed in the reports filed with the U S Securities and Exchange Commission. The bank may, from time to time make additional written and oral forward looking statements, including statements contained in the bank’s filings with the Securities and Exchange Commission and our reports to shareholders. The bank does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the bank, to reflect events or circumstances after the date thereof.

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