UNAUDITED FINANCIAL RESULTS

Exhibit I

17th October, 2005

The New York Stock Exchange,
New York,
USA

Dear Sir / Madam,

Subject: Unaudited Financial Results for the second quarter and half year ended 30th September, 2005

We attach herewith two files containing the unaudited financial results of the Bank for the second quarter and half year ended 30th September, 2005 and the press release in respect thereof as approved at the Board Meeting today.

The unaudited financial results have been submitted to the Stock Exchanges in India as per the listing requirements of those stock exchanges.

This is for your information and record.

Thanking you,

Yours faithfully,
For HDFC Bank Limited

Sanjay Dongre
Vice-President (Legal) &
Company Secretary

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF-YEAR ENDED SEPTEMBER 30, 2005


			(Rs. in lac)
			Unaudited results			Unaudited results			Unaudited results			Unaudited results			Audited results for
			for the quarter			for the quarter			for the half year			for the half year			the year ended
	Particulars		ended 30-09-2005			ended 30-09-2004			ended 30-09-2005			ended 30-09-2004			31-03-2005
1	Interest Earned (a) + (b) + (c) + (d)			102290			74470			191703			144725			309349
a	Interest / discount on advances / bills			61278			38912			114649			74212			166370
b	Income on investments			37605			32299			70082			63544			131149
c	Interest on balances with Reserve Bank of India and other inter bank funds			3404			3259			6948			6958			11809
d	Others			3			—			24			11			21
2	Other Income			26015			12272			52370			23076			65134
A	Total Income (1+2)			128305			86742			244073			167801			374483
3	Interest Expended			41077			31913			78121			62289			131556
4	Operating Expenses ( e) + (f)			40164			24725			75965			47808			108540
e	Payment to and provision for employees			11516			6342			22426			12024			27667
f	Other operating expenses			28648			18383			53539			35784			80873
B	Total Expenditure (3) + (4) (excluding provisions & contingencies )			81241			56638			154086			110097			240096
C	Operating Profit (A – B) (Profit before provisions and contingencies)			47064			30104			89987			57704			134387
D	Other Provisions and Contingencies			18062			7578			34647			14478			36493
E	Provision for Taxes			9038			7297			17023			14000			31338
F	Net Profit (C-D-E)			19964			15229			38317			29226			66556
5	Paid up equity share capital (face value Rs. 10)			31193			28623			31193			28623			30988
6	Reserves excluding revaluation reserve															420997
7	Analytical Ratios:
A	Percentage of shares held by Government of India	Nil			Nil			Nil			Nil			Nil
B	Capital adequacy ratio			10.4%			10.9%			10.4%			10.9%			12.2%
C	Earnings per share (par value Rs. 10/- each)
	Basic			6.4			5.3			12.3			10.2			22.9
	Diluted			6.0			5.0			11.6			9.7			21.6
8	Aggregate of Non-promoter shareholding
	-No. of shares			243,073,108			217,371,913			243,073,108			217,371,913			241,014,308
	-Percentage of shareholding			77.9%			75.9%			77.9%			75.9%			77.8%

Segment information in accordance with the Accounting Standard on Segment Reporting (AS17) of the three operating segments of the Bank is as under:


	(Rs. in lac)
	Unaudited results			Unaudited results			Unaudited results			Unaudited results			Audited results for
	for the quarter			for the quarter			for the half year			for the half year			the year ended
Particulars	ended 30-09-2005			ended 30-09-2004			ended 30-09-2005			ended 30-09-2004			31-03-2005
1. Segment Revenue
a) Retail Banking		110925			84041			222464			159119			353627
b) Wholesale Banking		67474			48490			124671			97171			205635
c) Treasury		23484			5031			34462			8549			28689
Total		201883			137562			381597			264839			587951
Less: Inter Segment Revenue		73578			50820			137524			97038			213468
Income from Operations		128305			86742			244073			167801			374483
2. Segment Results
a) Retail Banking		11602			12536			25334			25095			52064
b) Wholesale Banking		16586			12857			29986			24207			53936
c) Treasury		814			(2867	)		20			(6076	)		(8106	)
Total Profit Before Tax		29002			22526			55340			43226			97894
3.Capital Employed
(Segment Assets-Segment Liabilities)
a) Retail Banking		(141045	)		(388362	)		(141045	)		(388362	)		(289153	)
b) Wholesale Banking		843481			716117			843481			716117			1002995
c) Treasury		(232970	)		(47499	)		(232970	)		(47499	)		(269913	)
d) Unallocated		27295			21260			27295			21260			8056
Total		496761			301516			496761			301516			451985

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 Institute of Chartered Accountants of India (ICAI).

The Bank operates in three segments: retail banking, wholesale 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.

NOTES:

1.		The above results have been taken on record by the Board at its meeting held on October 17, 2005.

2.		During the quarter and the half-year ended September 30, 2005, the Bank allotted 680,700 shares and 2,058,800 shares respectively pursuant to the exercise of stock options by certain employees. The Bank allotted 144,900 shares on October 5, 2005 pursuant to the exercise of stock options by certain employees during the month of September 2005.

3.		Other income relates to income from non-fund based banking activities including commission, fees, foreign exchange earnings, earnings from derivative transactions and profit and loss (including revaluation) from investments.

4.		Provision for Taxes includes Rs. 350 lac and Rs. 600 lac towards provision for fringe benefit tax (FBT) for the quarter and the half-year ended September 30, 2005, respectively.

5.		On September 28, 2005, the Bank increased its investment in HDFC Securities Limited from 29.5% to 55%. Consequently, HDFC Securities Limited has become a subsidiary company of the Bank since that date.

6.		On September 19, 2005 the Bank filed Shelf Memorandum of Information with the Bombay Stock Exchange Limited and the National Stock Exchange of India Limited for the proposed issue of Unsecured Redeemable Non-Convertible Subordinated Bonds up to a limit of Rs. 1,000 crores in India. The Bank intends to raise this amount, in tranches, within a period of one year from the date of filing of the Shelf Memorandum of Information.

7.		Information on investor complaints pursuant to Clause 41 of the listing agreement for the quarter ended September 30, 2005:

		Opening: nil; Additions: 54; Disposals: 54; Closing: nil.

8.		Previous period figures have been regrouped/reclassified wherever necessary to conform to current period’s classification.

9.		The above results for the quarter and the half-year ended September 30, 2005, have been subjected to a “Limited Review” by the auditors of the Bank, as per the listing agreements with Bombay Stock Exchange Limited (erstwhile The Stock Exchange, Mumbai) and The National Stock Exchange of India Limited.

10.		Rs. 10 lac = Rs. 1 million
		Rs. 10 million = Rs. 1 crore


Place : Mumbai		Aditya Puri
Date : October 17, 2005		Managing Director

The Board has also taken on record the unaudited results for the half-year ended September 30, 2005, prepared as per US GAAP. The US GAAP accounts have also been subjected to a ‘Limited Review’ by the Bank’s auditors. The reconciliation of net incomes as per Indian GAAP and US GAAP is as follows:


	(Rs. in lac)
	Results for the			Results for the
	half year ended			half year ended
Particulars	30-09-2005			30-09-2004
Net profit as per Indian GAAP		38317			29226
Adjustments to:
Investments		2153			8943
Allowances for credit losses		(2862	)		(3371	)
Accounting for affiliates		(253	)		1477
Stock based options		(233	)		(2620	)
Customer acquisition costs		7443			616
Others		(1089	)		51
Income taxes		(1593	)		(2527	)
Net profit as per USGAAP		41883			31795

Certain statements are included in this release which contain words or phrases such as “will,” “aim,” “will likely result,” “believe,” “expect,” “will continue,” “anticipate,” “estimate,” “intend,” “plan,” “contemplate,” “seek to,” “future,” “objective,” “goal,” “project,” “should,” “will pursue” and similar expressions or variations of these expressions that are “forward-looking statements.” Actual results may differ materially from those suggested by the forward-looking statements due to certain risks or uncertainties associated with our expectations with respect to, but not limited to, our ability to implement our strategy successfully, the market acceptance of and demand for various banking services, future levels of our non-performing loans, our growth and expansion, the adequacy of our allowance for credit and investment losses, technological changes, volatility in investment income, cash flow projections and our exposure to market and operational risks. By their nature, certain of the market risk disclosures are only estimates and could be materially different from what may actually occur in the future. As a result, actual future gains, losses or impact on net income could materially differ from those that have been estimated.

In addition, other factors that could cause actual results to differ materially from those estimated by the forward-looking statements contained in this document include, but are not limited to: general economic and political conditions in India and the other countries which have an impact on our business activities or investments; the monetary and interest rate policies of the government of India; inflation, deflation, unanticipated turbulence in interest rates, foreign exchange rates, equity prices or other rates or prices; the performance of the financial markets in India and globally; changes in Indian and foreign laws and regulations, including tax, accounting and banking regulations; changes in competition and the pricing environment in India; and regional or general changes in asset valuations.


	(Rs. in lac)
Summarised Balance Sheet	As at 30-09-2005		As at 30-09-2004
CAPITAL AND LIABILITIES
Capital		31193		28623
Reserves and Surplus		465568		272893
Employees’ Stock Options (Grants) Outstanding		24		86
Deposits		4544609		3346579
Borrowings		456284		231844
Subordinated Debt		50000		50000
Other Liabilities and Provisions		491145		377183

Total		6038823		4307208

ASSETS
Cash and balances with The Reserve Bank of India		278921		158151
Balances with Banks and Money at Call and Short notice		163500		67532
Investments		2132800		1845142
Advances		3170564		2043347
Fixed Assets		74287		64464
Other Assets		218751		128572

Total		6038823		4307208

NEWS RELEASE

HDFC BANK LTD. — FINANCIAL RESULTS (INDIAN GAAP)
FOR THE QUARTER & HALF-YEAR ENDED SEPTEMBER 30, 2005

The Board of Directors of HDFC Bank Limited approved the Bank’s accounts for the quarter and half-year ended September 30, 2005 at its meeting held on Monday, October 17, 2005. The Board also considered the reconciliation of profits between Indian GAAP and US GAAP for the half-year ended September 30, 2005. Both, the Indian and US GAAP accounts, have been subjected to a “Limited Review” by the Bank’s auditors.

FINANCIAL RESULTS

Quarter ended September 30, 2005

For the quarter ended September 30, 2005, the Bank earned total income of Rs.1,283.1 crores as against Rs.867.4 crores in the corresponding quarter ended September 30, 2004. Net revenues (net interest income plus other income) for the quarter ended September 30, 2005 were Rs.872.3 crores, an increase of 59.1% over Rs.548.3 crores for the corresponding quarter of the previous year. Interest earned (net of loan origination costs) increased from Rs.744.7 crores for the quarter ended September 30, 2004, to Rs. 1,022.9 crores for the quarter ended September 30, 2005. Net interest income (interest earned less interest expended) for the quarter ended September 30, 2005 increased by Rs.186.6 crores to Rs.612.1 crores, up by 43.8%. This was driven by an average asset growth of 36% and an expansion in the net interest margin to just above 4% (from 3.8% in the corresponding quarter ended September 30, 2004).

Other income (non-interest revenue) for the quarter ended September 30, 2005 was Rs.260.2 crores, consisting principally of fees and commissions of Rs.217.8 crores, foreign exchange/derivatives revenues of Rs. 28.4 crores and profit/(loss) on sale/revaluation of Investments of Rs.11.9 crores as against Rs.133.9 crores, Rs.14.2 crores and Rs.(25.9) crores respectively, for the quarter ended September 30, 2004. Operating (non-interest) expenses for the quarter increased by Rs.154.4 crores to Rs.401.6 crores and were 46.0 % of net revenues and 31.3% of the total income for the quarter ended September 30, 2005. Provisions and contingencies for the quarter were Rs.180.6 crores (against Rs.75.8 crores for the corresponding quarter ended September 30, 2004), principally comprising general & specific loan loss provisions of Rs.122.8 crores and amortization of premia (for investments in the Held to Maturity category) of Rs.57.6 crores. After providing Rs.90.4 crores

for taxation, the Bank earned a Net Profit of Rs.199.6 crores, an increase of 31.1% over the quarter ended September 30, 2004.

Total balance sheet size increased by 40.2% from Rs.43,072 crores as of September 30, 2004 to Rs.60,388 crores as of September 30, 2005. Total deposits were Rs.45,446 crores, an increase of 35.8% from September 30, 2004. The Bank’s continued success in building its retail deposit franchise was evidenced in the 46.8% growth in savings account deposits to Rs.14,395 crores as of September 30, 2005. Current account deposits as of September 30, 2005 were Rs. 12,727 crores, as against Rs. 7,642 crores as of September 30, 2004. The Bank’s total customer assets (including advances, corporate debentures, investments in securitised paper, etc) increased to Rs.36,764 crores as of September 30, 2005, from Rs.25,467 crores as of September 30, 2004, a growth 44.4%. Retail loans grew 73.8% on a year-on-year basis to Rs.17,453 crores, and now form 52.1% of gross advances as against 46.7% of gross advances as at September 30, 2004.

Half-Year ended September 30, 2005:

For the half-year ended September 30, 2005, the Bank earned a total income of Rs.2,440.7 crores as against Rs.1,678.0 crores in the corresponding period of the previous year. Net revenues (net interest income plus other income) for the six months ended September 30, 2005 were Rs.1,659.5 crores, up by 57.3% over Rs.1,055.1 crores for the six months ended September 30, 2004. Net Profit for the half-year ended September 30, 2005 was Rs.383.2 crores, up by 31.1%, over the corresponding six months ended September 30, 2004.

Net Profit computed in accordance with US GAAP for half-year ended September 30, 2005 was Rs.418.8 crores; an increase of 31.7% over Rs.318.0 crores in the corresponding half year ended September 30, 2004. The net difference between profits computed in accordance with Indian GAAP and US GAAP is primarily due to differences in accounting treatment for amortization of premia and revaluation losses on investments held in the “Available for Sale” category, allowance for credit losses, accounting for affiliates, stock based compensation expense, customer acquisition costs and income taxes.

BUSINESS UPDATE:

During the first half of the current financial year, the Bank achieved healthy growth in each of its two customer franchises — retail and wholesale. The Bank’s branch network has grown to 531 outlets in 228 cities from 379 outlets 182 cities a year back. The bank’s cards base continued to increase with the total cards issued touching 3.5 million debit cards and 1.7 million credit cards. To complement this growth, the bank increased its installations of point-of-sale (POS) terminals to

over 50,000, further consolidating its position as a leading player in the merchant acquiring business.

Portfolio quality as of September 30, 2005 remained healthy with net non-performing assets at 0.3% of total customer assets. Delinquencies and NPAs have been in line with the changing mix of the loan book towards retail loans, and within the retail portfolio, in line with the growing proportion of two-wheeler loans, personal loans, credit cards etc., where the higher risks are compensated by higher yields, as reflected in the expansion of the net interest margin. Capital Adequacy Ratio (CAR) was 10.4% against the regulatory minimum of 9%. Tier I CAR was at 8.4%. The Bank has filed a shelf registration for raising long-term, unsecured, subordinated bonds qualifying as Tier II capital up to Rs.1000 crores and has got a AAA rating for such bonds. The Bank increased its investment in HDFC Securities Limited from 29.5% to 55%. Consequently, HDFC Securities Limited has become a subsidiary company of the Bank.

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