Q1 FY08

INVESTOR PRESENTATION

PERFORMANCE HIGHLIGHTS Q1• Net Profit 45 % yoy• Net Interest Income 39 % yoy• Fee Income 47 % yoy• Trading Profit 344 % yoy• Operating Revenue 51 % yoy• Operating Profit 30 % yoy• Net Interest Margin 2.72 %, Up from 2.68% a year earlier• Cost of Funds 6.43 %, Up from 5.45% a year earlier

INTERPRETATION OF Q1 PERFORMANCE• Rapid Growth in the Bank’s core businesses

– Total Advances grow 60% yoy to Rs. 41,285 crores

– Total Investments grow 26% yoy to Rs. 26,656 crores

– Total Assets register a 49% yoy growth, rising to Rs. 79,109 crores

– Fee Income grows by 47% yoy, rising to Rs. 272 crores

– NII grows 39% yoy, rising to Rs. 447 crores

– Share of demand deposits in total deposits at 38%

• Retail Assets grow by 23% yoy to Rs. 9,661 crores; constitute 23 % of totaladvances, as against 30 % a year ago

• Net NPAs at 0.59%, compared to 0.73% in June’06 and 0.61% in March’07

• At end June’07, Book Value per share at Rs. 127.02, compared to Rs. 107.03 asat end June’06

• Capital Adequacy at 11.50% as against 10.28% a year ago. The Bank intends toaugment its Tier-I capital in this financial year

PROFITABILITY

Rs. crores

718

506522267

121

789

297

175

Net Profit Core OperatingProfit*

Operating Revenue Core OperatingRevenue*

Q1

FY 06-07FY 07-08

↑ 42 % YOY↑ 11 % YOY↑ 45 % YOY ↑ 51 % YOY

* After deduction of amortisation of premium on HTM investments

CONSISTENT NET PROFIT GROWTH

Rs. crore

The Bank has grown by over 30% yoy in 28 out of the last 30 quarters

7.4 9.9

27.9

60.564.274.970.7

116.5

92.6

131.7

151.7141.9

184.6

211.9

174.9

27.4

6.4

23.019.116.1

42.035.831.025.4

51.544.2

36.0

87.1

52.2

101.1

46.2

109.0120.6

Quarter 1 Quarter 2 Quarter 3 Quarter 4

1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

NET INTEREST MARGINS

NIMs in the last 5 years ( % )FY 02-03: 2.09FY 03-04: 3.12FY 04-05: 2.90FY 05-06: 2.85FY 06-07: 2.92

2.722.68

2.923.00 3.06

Q1 FY07 Q2FY07 Q3FY07 Q4FY07 Q1FY08

As at end Jun’07, Advances grew by 60% yoy,while investments grew by 26% yoy and totalassets by 49% yoy. The downward pressure onspreads has arisen partly on account of theacquisition of short term priority sector assetstowards the end of the final quarter of theprevious year, for purposes of regulatorycompliance. As these assets go off the Bank’sbooks, the NIMs can be expected to again rise.

COST OF FUNDS

35

38

% share of Demand Deposits

Jun'06 Jun'07Cost of Funds computed on a Daily Average basis

6.43

5.92

5.425.455.53

Q1 FY07 Q2FY07 Q3FY07 Q4FY07 Q1FY08

GROWING NET INTEREST INCOME

↑ 39 % YOY

322

447

Q1

Rs. crores

FY 06-07FY 07-08

NIIs in the last 5 years(Rs. crores)

FY 02-03: 322FY 03-04: 577FY 04-05: 731FY 05-06: 1,078FY 06-07: 1,567CAGR : 51 %5 years

GROWING DEMAND DEPOSITS

↑ 54 % YOY

Rs. crores

27,156

38,029

14,938

23,062

June'06 June'07

Term Deposits Demand Deposits

38 %

↑ 40% YOY

65%

35 %

62 %

YoY growth in daily average demand deposits (%)Deposit Q1 FY08Savings 51Current 58TOTAL 54

FEE & OTHER INCOME

↑ 47 % YOY

Q1

Rs. crores

185

272FY 06-07FY 07-08

Fees in the last 5 years(Rs. crores)

FY 02-03: 148FY 03-04: 192FY 04-05: 378FY 05-06: 513FY 06-07: 824CAGR : 52%5 years

FEE INCOME COMPOSITION

33

54

48

28

100

3745

78

CORPORATE BANKING BUSINESS BANKING CAPITAL MARKETS RETAIL BANKING

Q1 FY07Q1 FY08

↑ 44 % YOY ↑ 108 % YOY↑ 37 % YOY ↑ 32 % YOY

Rs. croreRetail Banking has shown strong growth

TRADING PROFITS

3

16

9

71

Trading Profit (Rs. crores) % of Operating Revenue

↑ 344 % YOY Q1

FY 06-07FY 07-08

BUSINESS OVERVIEWBUSINESS OVERVIEW

CORPORATE BANKING• Focus on quality of credit assets with stress on corporates having

– Global competitive advantage in their businesses

– Good corporate governance and management practices

• Business Segments

– Large Corporates

– Channel Financing

– Structured Products

• Rigorous and regular risk assessment of individual accounts

– Rating Tools and Monitoring Tools

• Offer broad suite of products with continued focus on customisedofferings

TOP SECTOR EXPOSURES

As on 30.6.2007

Rank Sectors % of Total Corporate Credit

1 Financial Companies* 15.422 Real Estate Developers 9.613 Textiles 7.194 Agriculture 4.415 Infrastructure Construction 3.836 Trade Retail 2.537 Entertaintment 2.58 Pow er 2.499 Sugar 2.3810 Chemicals 2.34

* Housing Finance Companies and other NBFCs. The proportion has risen at end-year on account ofthe need for being compliant with priority sector lending.

SME, MID-CORPORATE & AGRI BUSINESS

• Specialised Advances Cells (for SME- Mid Corporate lending)– 20Cells at June’07, as against 10 cells at June’06

• Specialised Clusters for Agricultural lending– 28 Agri-Clusters at June’07, as against 9 clusters at June’06

1,912

3,169

1,826

4,206

5,235

3,006

SME Advances Mid-Corporate Advances Agricultural Advances

Q1 FY 07Q1 FY 08

↑ 65 % YOY ↑ 120 % YOY

Rs. crores↑ 65 % YOY

CONSISTENCY IN ASSET QUALITY82% of corporate advances have rating of at least ‘A’ as at Jun’07,

as compared to 84% a year earlier

57 60

26 21

1 1 1

4 2 33 415141413 12

5960 61

2222 21

2 2

June'06 Sept'06 Dec'06 Mar'07 Jun'07

AAA

AA

A

BBB

<BBB andUnrated

STRESSED ASSETS NET NPA %

Net NPAs% in the last 5 years

FY 02-03: 1.92FY 03-04: 1.03FY 04-05: 1.07FY 05-06: 0.75FY 06-07: 0.61

404439

472419

483

233264 267 266 281

0.61 0.59

0.740.68

0.73

0

100

200

300

400

500

600

700

Q1 FY07 Q2FY07 Q3FY07 Q4 FY07 Q1FY08

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Gross NPAs Net NPAs Net NPAs %

BUSINESS BANKING

↑ 152 % YOY

1547

55,434

2322

140,105

Throughput (Rs. crores) CMS Clients

Q1 FY07 Q1 FY08

↑ 50 % YOY• The Bank collects Central Government Taxes on behalf of CBDT and CBEC, inclthrough e-Payments.•The Bank collects State Taxes on behalf of seven State Governments and UTs•Collections & Payments for Central Government Minsitries - Railways, UrbanDevelopment and Housing & Urban Poverty Alleviation.•Collections under e-Governance initiatives of 5 State Governments

FY 06-07FY 07-08

TREASURY

1.69

25.97

13,557

2.13

42.56

25,912

Forex Turnover Forex Profit Money Market Profit

Q1

Rs. crores

↑ 91 % YOY ↑ 26% YOY↑ 64 % YOY

CAPITAL MARKETSRs. crores

7,496

10,482

Placements & Syndications

Q1 FY07 Q1 FY08↑ 40% YOY

•A dominant player in Placement and Syndication of debt issues•Ranked 4th by Bloomberg in the Underwriters League Table for the IndianDomestic Bonds for the first six months of calendar year 2007•Project Advisory Services mandates increase

RETAIL BANKING INCREASING REACH

Branch Demographics Branches Extn. Counters

Metro 190 31Urban 206 21Semi-urban 109 0Rural 17 0TOTAL 522 52

80192

117

252339

1599

258

450

1891

332

561

23412428

822

1244

190

341

574

Centres covered Branches + Extn. Counters ATMs

Mar'03 Mar'04 Mar'05

Mar'06 Mar'07 Jun'07

SAVINGS BANK GROWTH

↑ 50 % YOY ↑ 48 % YOY

Rs. crores

Savings Bank growth led by:

•Wide Network - Branch and ATM

Channel reach

•Bank’s own sales channel

•Focused strategy for niche

customer segments

•Corporate and Government

payroll accounts

•Continual product innovation

8,225

12,312

17,871

12,051

SB Deposits Retail Deposits

June'06June'07

RETAIL ASSETS

↑ 23 % YOY ↑ 21 % YOY

•Retail Assets grow 23% yoy

•Retail Assets constitute 23% of the

Bank’s total advances, as against

30% in end June’06

•Growth driven through Retail

Asset Centres(RACs)

•69 RACs established so far

7,842

429,507

9,661

521,330

Retail Assets (Rs. crores) No. of Accounts

June'06June'07

COMPOSITION OF RETAIL ASSETSEducation Loan

0.4%

Commercial Vehicles17%

2-Wheelers0.4%

4-Wheelers5%

Housing Loans56%

Personal Loans13%

Non-Schematic7%

Auto Loans23%

ATM CHANNEL MIGRATIONOver 95% of SB account cash withdrawals are happening on ATMs.

↑ 41% ↑ 43% ↑ 11%

124.4

2,261

47.1

138.4

3,231

66.6

Cardbase (in lakhs) Cash Withdrawals (Rs.crore)

No. of Transactions (inlakhs)

June'06June'07

•Pioneer in ATM sharing arrangements•Bilateral agreements with 5 Banks•Largest network provider for Euronet & Bancs consortia•Value added services such as Bill Payments, MF Investments,Mobile Top-ups and VISA Money Transfer services

CARDS BUSINESS- Significant Player

• Credit Cards launched in August 2006– 200,037 Cards In Force (CIF)

• ISSUANCE– 3rd largest debit card base in the country– 1st Indian Bank to launch Travel Currency Cards in multiple

currencies -US$, Euro, GBP, AUD and CAD– 1st Indian Bank to launch Remittance Card and Meal Card

• ACQUIRING– Installed base of over 45,000 EDCs and growing

• Cards business a significant contributor to Retail FeeIncome

INTERNATIONAL PRESENCE

• Hong Kong Branch opened in March 2007. Branch opened

at DIFC, Dubai in April 2007

• Singapore Branch and Shanghai Representative Office

already functioning

• Total assets under overseas operations were at US$ 910

million

• Corporate Banking, Trade Finance products, Syndication,

Investment Banking and Liability businesses.

INVESTMENT HIGHLIGHTS• 21.20% Return on Equity (ROE) during Q1 FY08 as compared to

16.95 % in Q1 FY07

• 0.94% Return on Assets (ROA) during Q1 FY08 as compared to

0.93% in Q1 FY07

• An annualized return of over 47% (without including dividends), since

the Bank’s IPO in September 1998

• Market out-performer over the last one year (June’06 - June’07)

• Trading at a discount to its peers

SHAREHOLDER RETURNS

39.80

26.97

1.17

27.09

49.07

1.42

87.95

25.85

1.21

103.06

18.441.18

21.84

1.10

120.50

Book Value per Share (Rs.) Return on Equity (%) Return on Assets (%)

2002-03 2003-04 2004-05 2005-06 2006-07

↑ 17% YOY

SHAREHOLDING •Share Capital - Rs. 282.65 crores

•Net Worth - Rs. 3,406.22 crores

•Book Value per share - Rs. 127.02

•Market Price as on 12/7/07 - Rs. 642.55

•Market Cap as on 12/7/07 - Rs. 18,162

crores (US $ 4.48 billion)

Others26.13

LIC10.34%

UTI-I27.33%

FIIs36.20%

SAFE HARBOR

• Except for the historical information contained herein, statements in thisrelease which contain words or phrases such as “will”, “aim”, “will likely result”,“would”, “believe”, “may”, “expect”, “will continue”, “anticipate”, “estimate”,“intend”, “plan”, “contemplate”, “seek to”, “future”, “objective”, “goal”, “strategy”,“philosophy”, “project”, “should”, “will pursue” and similar expressions orvariations of such expressions may constitute "forward-looking statements".These forward-looking statements involve a number of risks, uncertainties andother factors that could cause actual results to differ materially from thosesuggested by the forward-looking statements. These risks and uncertaintiesinclude, but are not limited to our ability to successfully implement our strategy,future levels of non-performing loans, our growth and expansion, the adequacyof our allowance for credit losses, our provisioning policies, technologicalchanges, investment income, cash flow projections, our exposure to marketrisks as well as other risks. Axis Bank Limited undertakes no obligation toupdate forward-looking statements to reflect events or circumstances after thedate thereof.

Thank You