21st January, 2008

To
The New York Stock Exchange,
New York,
USA

Dear Sir / Madam,

Re; Unaudited Financial Results for the quarter ended December 31 , 2007

We attach herewith two files containing the unaudited financial results of the Bank for the Third quarter ended 31st December, 2007 and the press release in respect thereof as approved at the Board Meeting held 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

Sd/
Sanjay Dongre
Executive Vice — President (Legal) &
Company Secretary

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2007

(Rs. in lacs)

		Unaudited		Unaudited		Unaudited		Unaudited		Audited
		results for		results for		results for the		results for the		results for
		the quarter		the quarter		nine months		nine months		the year
		ended		ended		ended		ended		ended
Particulars		31-12-07		31-12-06		31-12-07		31-12-06		31-03-07
1	Interest Earned (a) + (b) + (c) + (d)		272690		169893		715882		472139		664793
(a)	Interest / discount on advances / bills		186725		113729		495779		303890		433415
(b)	Income on investments		77019		52445		199441		151979		205753
(c)	Interest on balances with Reserve Bank of India and other inter bank funds		8806		3588		20290		15979		25294
(d)	Others		140		131		372		291		331
2	Other Income		67889		37330		173381		112180		151623
3	Total Income (1+2)		340579		207223		889263		584319		816416
4	Interest Expended		128932		83068		357304		230740		317945
5	Operating Expenses (i) + (ii)		105012		60502		264288		173687		242080
(i)	Employees Cost		35283		21384		95575		56153		77686
(ii)	Other operating expenses		69729		39118		168713		117534		164394
6	Total Expenditure (4) + (5) (excluding provisions & contingencies)		233944		143570		621592		404427		560025
7	Operating Profit before provisions and contingencies (3) - (6)		106635		63653		267671		179892		256391
8	Provisions (other than tax) and Contingencies		42313		20601		101964		65810		92516
9	Exceptional Items		—		—		—		—		—
10	Profit / (Loss) from ordinary activities before tax (7-8-9)		64322		43052		165707		114082		163875
11	Tax Expense		21386		13488		53800		34294		49730
12	Net Profit / (Loss) from ordinary activities after tax (10-11)		42936		29564		111907		79788		114145
13	Extraordinary items (net of tax expense)		—		—		—		—		—
14	Net Profit / (Loss) from the period (12-13)		42936		29564		111907		79788		114145
15	Paid up equity share capital (Face Value of Rs. 10/- each)		35408		31515		35408		31515		31939
16	Reserves excluding revaluation reserve (as per balance sheet of previous accounting year)										611376
17	Analytical Ratios:
(i)	Percentage of shares held by Government of India		Nil		Nil		Nil		Nil		Nil
(ii)	Capital adequacy ratio		13.8%		12.8%		13.8%		12.8%		13.1%
(iii)	Earnings per share (par value Rs. 10/- each)
a	Basic EPS before & after extraordinary items (net of tax expense) — not annualized		12.1		9.4		32.9		25.4		36.3
b	Diluted EPS before & after extraordinary items (net of tax expense) — not annualized		11.9		9.2		32.4		25.0		36.1
(iv)	NPA ratios
a	Gross NPA		86697		64771		86697		64771		65776
b	Net NPA		27978		20354		27978		20354		20289
c	% of Gross NPA to Gross Advances		1.2%		1.3%		1.2%		1.3%		1.3%
d	% of Net NPA to Net Advances		0.4%		0.4%		0.4%		0.4%		0.4%
(v)	Return on assets (average) — not annualized		0.3%		0.3%		1.0%		1.0%		1.3%
18	Public Shareholding
	— No. of shares		271632320		246288408		271632320		246288408		250528608
	— Percentage of shareholding		76.7%		78.1%		76.7%		78.1%		78.4%

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 lacs)

						Unaudited			Unaudited
						results for			results for			Audited
	Unaudited		Unaudited			the nine			the nine			results for
	results for the		results for the			months			months			the year
	quarter ended		quarter ended			ended			ended			ended
Particulars	31-12-07		31-12-06			31-12-07			31-12-06			31-03-07
1. Segment Revenue
a) Retail Banking		307174		199993			834267			559127			776488
b) Wholesale Banking		226725		132270			587502			359857			509043
c) Treasury		22991		7203			42627			29238			47339
d) Unallocated		10247		—			10247			—			—
Total		567137		339466			1474643			948222			1332870
Less: Inter Segment Revenue		226558		132243			585380			363903			516454
Income from Operations		340579		207223			889263			584319			816416
2. Segment Results
a) Retail Banking		28696		21124			98193			69983			91715
b) Wholesale Banking		28845		23936			66973			49702			75503
c) Treasury		3691		(971	)		(542	)		(930	)		1837
d) Unallocated		3090		(1037	)		1083			(4673	)		(5180	)
Total		64322		43052			165707			114082			163875
Less:
i) Other un-allocable expenditure net off		—		—			—			—			—
ii) Un-allocable income		—		—			—			—			—
Total Profit Before Tax		64322		43052			165707			114082			163875
3. Capital Employed
(Segment Assets-Segment Liabilities)
a) Retail Banking		17001		(59661	)		17001			(59661	)		223761
b) Wholesale Banking		775531		568758			775531			568758			257770
c) Treasury		278476		68117			278476			68117			127627
d) Unallocated		64835		41132			64835			41132			34157
Total		1135843		618346			1135843			618346			643315

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 approved by the Board at its meeting held on January 21, 2008.
2.	During the quarter and the nine months ended December 31, 2007, the Bank allotted 623,400 shares and 1,320,200 shares respectively 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 profit and loss (including revaluation) from investments.
4.	The Reserve Bank of India (RBI) issued a general clarification dated July 11, 2007 requiring banks to reflect amortization of premia on investments in the Held to Maturity (HTM) category under interest income from investments. Accordingly the Bank has reclassified the same for the quarter and nine months ended December 31, 2007 and all previous periods wherever necessary. On account of the said reclassification, net interest income is now lower by Rs. 71.9 crore for the quarter ended December 31, 2007 (corresponding previous quarter: Rs. 60.4 crore) and Rs. 187.4 crore for the nine months ended December 31, 2007 (corresponding previous nine months: Rs. 177.9 crore)
5.	During the nine month ended December 31, 2007, the Bank changed its accounting policy on amortization of premia on investments in the HTM category. Hitherto, the Bank amortized premia on investments in the HTM category on a straight-line basis. Now the Bank amortizes the said premia prospectively on yield to maturity basis. This change in policy has resulted in the profit after tax being higher by Rs. 6.1 crore for the quarter ended December 31, 2007 and by Rs. 14.7 crore for the nine months ended December 31, 2007.
6.	Provision for Taxes includes Rs. 12.9 crore and Rs. 29.3 crore towards provision for fringe benefit tax (FBT) for the quarter and the nine months ended December 31, 2007, respectively.
7.	As on December 31, 2007, the total number of branches (including extension counters) and the ATM network stood at 754 branches and 1906 ATMs respectively.
8.	Information on investor complaints pursuant to Clause 41 of the listing agreement for the quarter ended December 31, 2007: Opening: nil; Additions: 32; Disposals: 32; Closing: nil.
9.	Previous period figures have been regrouped/reclassified wherever necessary to conform to current period’s classification.
10.	The above results for the quarter and the nine months ended December 31, 2007, have been subjected to a “Limited Review” by the auditors of the Bank, as per the listing agreements with Bombay Stock Exchange Limited and The National Stock Exchange of India Limited.
11.	Rs. 10 lac = Rs. 1 million
	Rs. 10 million = Rs. 1 crore

Place: Mumbai	Aditya Puri
Date: January 21, 2008.	Managing Director

(Rs. in lacs)

Summarised Balance Sheet	As at 31-12-2007		As at 31-12-2006
CAPITAL AND LIABILITIES
Capital		35408		31515
Reserves and Surplus		1100435		586831
Employees’ Stock Options (Grants) Outstanding		—		1
Deposits		9938693		6674874
Borrowings		327166		451205
Other Liabilities and Provisions*		1742243		1216342
Total		13143945		8960768
ASSETS
Cash and balances with Reserve Bank of India		913791		452178
Balances with Banks and Money at Call and Short notice		427777		353278
Investments		4173685		2972242
Advances		7138682		4802135
Fixed Assets		106513		95738
Other Assets		383497		285197
Total		13143945		8960768

* Includes subordinated debt and unsecured non-convertible subordinated perpetual bonds of Rs. 324205 lacs as on December 31, 2007 (previous year: Rs. 329050 lacs) .

NEWS RELEASE

HDFC BANK LTD. — FINANCIAL RESULTS (INDIAN GAAP)
FOR THE QUARTER & NINE MONTHS ENDED DECEMBER 31, 2007

The Board of Directors of HDFC Bank Limited approved the Bank’s accounts for the quarter and nine months ended December 31, 2007 at its meeting held on Monday, January 21, 2008. The accounts have been subjected to a limited review by the Bank’s statutory auditors.

FINANCIAL RESULTS

Quarter ended December 31, 2007

The Bank earned total income of Rs.3,405.8 crores for the quarter ended December 31, 2007, a growth of 64.4% over the corresponding quarter ended December 31, 2006. Net revenues (net interest income plus other income) for the quarter ended December 31, 2007 were Rs.2,116.5 crores, an increase of 70.5% over the corresponding quarter of the previous year. Interest earned (net of loan origination costs and amortization of premia on investments held in the Held to Maturity (HTM) category) increased by 60.5% to Rs.2,726.9 crores for the quarter ended December 31, 2007. Net interest income (interest earned less interest expended) for the quarter ended December 31, 2007 increased by 65.6% to Rs.1,437.6 crores driven by average asset growth of 43.9% and an improvement in core net interest margin (NIM) to around 4.3% (NIMs adjusted for the HTM premia amortization).

Other income (non-interest revenue) registered strong growth of 81.9% from Rs.373.3 crores for the quarter ended December 31, 2006 to Rs.678.9 crores for the quarter ended December 31, 2007. The main contributor to ‘Other Income’ for the quarter was fees and commissions of Rs.460.1 crores, up 38.8% from Rs.331.4 crores in the corresponding quarter ended December 31, 2006. The other two major components of other income were foreign exchange/derivatives revenues of Rs.74.2 crores and profit/(loss) on revaluation/sale of investments of Rs. 131.5 crores, as against Rs.63.0 crores

and Rs.(21.1) crores respectively for the quarter ended December 31, 2006. Operating (non-interest) expenses for the quarter increased by Rs.445.1 crores to Rs.1,050.1 crores and were 49.6% of net revenues. Provisions and contingencies for the quarter were Rs.423.1 crores (against Rs.206.0 crores for the corresponding quarter ended December 31, 2006), principally comprising of specific provision for non performing assets and general provision for standard assets of Rs.350.1 crores. After providing Rs.213.9 crores for taxation, the Bank earned a Net Profit of Rs.429.4 crores, an increase of 45.2% over the quarter ended December 31, 2006.

Total balance sheet size increased by 46.7% from Rs.89,608 crores as of December 31, 2006 to Rs.131,439 crores as of December 31, 2007. Total deposits were Rs.99,387 crores, an increase of 48.9% from December 31, 2006. With savings account deposits of Rs.24,961 crores and current account deposits at Rs.25,602 crores, the CASA mix continued to remain healthy at around 50.9% of total deposits as at December 31, 2007. Net advances as at December 31, 2007 were Rs.71,387 crores, an increase of 48.7% over December 31, 2006. Retail loans grew by 45.0% on a year-on-year basis and now form 52.6% of gross advances. The Bank’s customer assets (including advances, corporate debentures, investments in securitised paper, etc.) net of loans securitized and participated out increased to Rs.74,979 crores as of December 31, 2007, from Rs.53,896 crores as of December 31, 2006.

Nine months ended December 31, 2007:

For the nine months ended December 31, 2007, the Bank earned total income of Rs.8,892.6 crores as against Rs.5,843.2 crores in the corresponding period of the previous year. Net revenues (net interest income plus other income) for the nine months ended December 31, 2007 were Rs.5,319.6 crores, up by 50.4% over Rs.3,535.8 crores for the nine months ended December 31, 2006. Net Profit for the nine months ended December 31, 2007 was Rs.1,119.1 crores, up by 40.3%, over the corresponding nine months ended December 31, 2006.

BUSINESS UPDATE:

As of December 31, 2007, the Bank’s distribution network was at 754 branches and 1,906 ATMs in 327 cities as against 583 branches and 1,471 ATMs in 263 cities as of December 31, 2006. As of December, 2007 the number of debit cards issued by the bank crossed 5 million while credit cards issued crossed the 3.5 million mark.

Portfolio quality as of December 31, 2007 remained healthy with net non-performing assets at 0.4% of total customer assets. Capital Adequacy Ratio

(CAR) was 13.8% against the regulatory minimum of 9%. Tier I CAR was at 10.5%. as at December 31, 2007.

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

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.