IDFC is a major provider of infrastructure financing in India. Over the past 5 years, it has tripled its project approvals and nearly doubled its disbursements. It offers a wide range of financial products and services including project finance, private equity, asset management, and investment banking. IDFC has grown significantly in recent years, with its net worth increasing over 2.5 times and total assets growing nearly 3 times from 2005 to 2010. It aims to further support the development of infrastructure across India.

1. IDFC – INFRASTRUCTURE DEVELOPMENT FINANCE COMPANYPresented By: Niharika ReddyNitishMittalRuchi GuptaSashank ShahYogesh Gupta

2. FLOW OF PRESENTATIONIntroductionProducts and ServicesManagement TeamPerformance of IDFC over last 5 yearsObjectives and achievementFuture of IDFC2IDFC20 August 2010

3. INTRODUCTIONIt is provider of financial, advisory and management services in the infrastructure space.The Company also has interests in Asset Management, Investment Banking and Brokerage.Incorporated on January 30, 1997 in Chennai on the recommendations of the 'Expert Group on Commercialization of Infrastructure Projects' under the Chairmanship of Dr. Rakesh Mohan.As on 2010, IDFC had 192 employees3IDFC20 August 2010

4. OBJECTIVES AND VISIONObjective : To act as a catalyst for and help bankroll infrastructure projects in the private sectorVision :'one firm' that looks after the diverse needs of infrastructure developmentIndia's leading integrated infrastructure finance player providing end to end infrastructure financing and project implementation services4IDFC20 August 2010

5. 4X4 STRATEGYPursuit of four objectives Deliveringprofitability, pursuing innovation, growing its asset base and promoting thought leadership.Focus on four key sectors Transport, Energy, Telecommunication (Telecom) and IT, and Industrial and Commercial infrastructure.Delivery of four main products Project Finance, Equity Finance, Structured Products and Advisory / Investment Banking services.Exploration of four new frontiers Urban Services, Rural Infrastructure, Healthcare and Education.5IDFC20 August 2010

6. INFRASTRUCTURE FINANCE COMPANIES - IFCIn 2009-2010, RBI introduced new category in NBFC called IFCTo qualify as IFC, 75% of its total assets should comprise infrastructure assetsBenefits to IFCs - lower risk weight on their bank borrowings (from a flat 100% to as low as 20% for AAA rated borrowers)The exposure of a bank to IFCs has been enhanced to 20% of its capital funds

7. need to maintain a CAR of 15%, of which at least 10% should comprise Tier I capital.

8. Exposure to a single project and a single business group limited to 25% and 40% respectively of their net owned funds6IDFC20 August 2010

9. SUBSIDIARIESIDFC has ten direct wholly owned subsidiary companiesIDFC Private Equity Company LimitedIDFC Trustee Company LimitedIDFC Project Equity Company LimitedIDFC Finance LimitedIDFC Securities Limited *(earlier known as IDFC-SSKI Securities Limited)IDFC Capital Company LimitedIDFC PPP Trusteeship Company LimitedIDFC Projects LimitedIDFC Asset Management Company Limited IDFC AMC Trustee Company Limited* In addition IDFC Securities Limited has two wholly owned subsidiary companies :IDFC Capital Limited (earlier known as IDFC-SSKI Limited)IDFC - SSKI Stock Broking Limited.7IDFC20 August 2010

10. JOINT VENTURESIDFC has three joint ventures : Infrastructure Development Corporation (Karnataka) Limited (iDeCK) in the state of Karnataka

11. Uttaranchal Infrastructure Development Company Limited (UDeC) in the state of Uttaranchal

12. Delhi Integrated Multi Modal Transit System Limited (DIMTS) in Delhi8IDFC20 August 2010

13. PRODUCTS AND SERVICES9IDFC20 August 2010

14. CORPORATE INVESTMENT BANKING- PROJECT FINANCEObjective : Providing and promoting private financing of Indian infrastructureProducts under Project Finance:Senior Debt Financing

15. Mezzanine Products

16. Principal Investments

17. Non-Fund Based Products10IDFC20 August 2010

18. IDFC INVESTMENT BANKINGCategory-1 Merchant BankPrivate placements of equity and debt, public offerings and project advisory to mergers and acquisitions. 11IDFC20 August 2010

19. CORPORATE INVESTMENT BANKING- IDFC SECURITIESAmongst the most prominent Indian brokers for institutional investors. Cater to a wide variety of investors including Pension Funds, Long-only Funds, Hedge Funds, Mutual Funds, Banks, Insurance companies and Portfolio Management companies. 12IDFC20 August 2010

20. ALTERNATE ASSET MANAGEMENT-IDFC PRIVATE EQUITYSet up in 2002IDFC is India’s largest and most active private equity firm focused on infrastructure and manage a corpus of Rs. 60 billion (USD 1.3 billion). Through these funds, IDFC has invested in companies whose underlying assets range from ships, airports, trucks, power plants and telecom towers to hotel rooms, amusement parks, roads and bridges, gas pipeline, clean energy and rail container licenses. 13IDFC20 August 2010

21. ALTERNATE ASSET MANAGEMENT-IDFC PROJECT EQUITYIDFC manages the India Infrastructure Fund (IIF), a SEBI-registered domestic venture capital fund focused on infrastructure with a corpus of INR 38 billion(USD 927 million)IIF focuses on investing equity for the long-term in a diversified portfolio of infrastructure assets in India.14IDFC20 August 2010

22. ALTERNATE ASSET MANAGEMENT-IDFC CAPITALObjective : To identify and invest in exceptional mid-market growth-oriented private equity funds in the Asian emerging markets of China, India, Central Asia, and Southeast Asia.15IDFC20 August 2010

23. ALTERNATE ASSET MANAGEMENT-IDFC PROJECTSIDFC Projects delivers a strong value proposition in developing and implementing infrastructure projects. IDFC works in active collaboration with Central and State Governments as well as private sectors to develop, finance, execute and manage infrastructure projects in India.16IDFC20 August 2010

24. PUBLIC MARKET ASSET MANAGEMENT- IDFC MUTUAL FUND IDFC Mutual Fund was acquired in 2008-09It manages different mutual fund products for institutional and retail investors.Generates income through asset management fees Focuses on growing the assets under management by offering suitable products and channeling private and corporate savings into the debt and equity markets17IDFC20 August 2010

25. RISK MANAGEMENTThree kinds of risks:Market Risk

26. Credit Risk

27. Operational RiskImplements an Enterprise Risk Management (ERM) framework that adopts an integrated approach to manage all the three types of risks18IDFC20 August 2010

28. RISK MANAGEMENTThere is focus on loan portfolio assessment, Asset-Liability Management (ALM), and loan pricingOn the credit risk front, there is a comprehensive portfolio review of all project assets and equity investments of the Company on a semi-annual basis.Management of Market Risk involves measuring interest rate risk on a regular basis as well as testing newer models for analysisWith the regulatory framework for banks and financial institutions is currently in transition to the Basel II environment, the risk measurement and monitoring framework is being accordingly enhanced.19IDFC20 August 2010

29. MANAGEMENT TEAMMr. Deepak Parekh, non-executive chairman of IDFCMr. G.C. Chaturvedi and MrSurinder Singh Kohli, Director by Government of India on the IDFC Board. Mr. Abdul Rahim Abu Bakar and Mr. DimitrisTsitsiragos, Nominated as a Director to the IDFC Board by the Domestic Institutions and the Foreign Investors of the CompanyIndependent Director on the IDFC Board Mr. SerajulHaq Khan Mr. GautamKaji Mr. Donald Peck Mr. ShardulShroffDr. Rajiv B. Lall, Managing Director and Chief Executive Officer of IDFCMr. VikramLimaye,Executive Director and a Member of the Board of Directors of IDFC20IDFC20 August 2010

30. PERFORMANCE OF IDFC21IDFC20 August 2010

31. APPROVALS AND DISBURSEMENTSDisbursements has almost doubled from 2006 to 2010Approvals have almost tripled from 2006 to 2010Approvals and Disbursements* 22IDFC20 August 2010

32. SHARE OF TOTAL EXPOSURE23IDFC20 August 2010

33. APPROVALS AND DISBURSEMENTS24IDFC20 August 2010

34. FINANCIAL PERFORMANCE OFIDFC The Net worth of the company has grown from Rs. 2544 cr to Rs. 6823 cr in the last five years The Total Assets of the company have also grown by almost 2.8 times in the last 5 years25IDFC20 August 2010

35. PERFORMANCE OF IDFCThe Sales of the company has been increasing over the years.Operating Profit for the company has increased by almost 3 times in the last 5 years. 26IDFC20 August 2010

36. PERFORMANCE OF IDFCOver the last five years, the size of balance sheet has increased 132%It increased by 12.6% in FY 2010 compared to FY 200927IDFC20 August 2010

37. PERFORMANCE OF IDFC20 August 2010IDFC28

38. PERFORMANCE OF IDFC29IDFC20 August 2010

39. PERFORMANCE OF IDFC30IDFC20 August 2010

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47. HIGHLIGHTS OF Q1 FY 2011Profit After Tax of Rs. 335 crore in Q1 FY 2011 compared to Rs.272 crore in Q1 FY 2010 EPSincreased from Rs. 2.10 per share to Rs. 2.56 per share : an increase of 22% IDFC is notified as an Infrastructure Finance Company by the Reserve Bank of India Gross Approvals tripled from Rs. 4,361 crore in Q1 FY 2010 to Rs. 13,046 crore in Q1 FY 2011 Gross Disbursements increased four times from Rs. 1,542 crore in Q1 FY 2010 to Rs. 6,204 crore in Q1 FY 2011 Balance sheet size as on June 30, 2010 – Rs. 38,612 crore : an increase of 25% Net NPAs at 0.15% of outstanding loans; No new NPA during Q1 FY 2011Net Interest income (NII) of Rs. 337 crore : an increase of 38% Non Interest Income of Rs. 266 crore : an increase of 22% 38IDFC20 August 2010

48. OBJECTIVE AND ITS ACHIEVEMENTSHelping mid-cap companies to strengthen their businessProviding legal support.Financing projects to helping companies go public through IPOs.‘One firm' philosophy 39IDFC20 August 2010

49. IDFC HELPS RAISE Rs. 500 crFOR A JOINT VENTUREWipro wins a contract for IT systems work at IGI AirportIDFC steps in to provide the finance needed.Seamless working between three IDFC verticals - IDFC Capital, IDFC Project Finance and IDFC Legal - saw the transaction being dealt with smoothly. 40IDFC20 August 2010

50. Green Infra Ltd. (GIL) was with the objective of becoming India's leading renewable energy-focused independent power producer. How it worked at IDFCIDFC Private Equity: Involved in the bid process with GILIDFC Project Finance: Structured and fully underwrote the entire long term loan. Provided full debt financing.IDFC Capital: Syndicated the loan to Indian Renewable Energy Development Agency and Axis Bank.GIL’s ACQUISITION OF WINDFARMS

51. AWARDS AND RECOGNITIONProject Finance International Asia Pacific Awards 2009IDFC Project Finance ranked third as mandated lead arranger for Project finance loans.Private Equity International Awards 2009IDFC Private Equity wins Best Private Equity Firm award.Lipper Fund Awards 2010IDFC AMC's IDFC Premier Equity Fund - Plan A wins award for being the best fund over 3 years in the equity segment (India).Infrastructure Investor Awards 2009- IDFC Private Equity declared Asian Infrastructure Fund Manager of the year.20 August 2010IDFC42

52. FUTURE OF IDFCLikely to be at the center of India’s incipient infrastructure build-up.Accounts for a quarter of the total bank lending to private projects in areas like roads, ports, power and airports. Many more deals in the pipelineLack of physical infrastructure is one of the most serious problems facing the Indian economy today. IDFC could play a transformational role here.43IDFC20 August 2010

53. REFERENCESAnnual Reports for FY2006 to FY2010Quarterly Report for Q1 FY2011www.idfc.comwww.rbi.org.inhttp://www.wikinvest.com/stock/Infrastructure_Development_Finance_(BOM:532659)44IDFC20 August 2010

54. THANK YOU45IDFC20 August 2010