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IDFC - Stock Update

Project financing loan book to see moderation in the wake of
slow down in the infrastructure project development
IDFC historically has demonstrated a significantly higher growth in its infrastructure
project financing business. The business segment has grown at the pace of 46%
CAGR over FY04-08. Going forward this business is likely to witness some modera-
tion. Besides the unfavorable macro-economic environment, liquidity constrain
(higher CAR recommendations by credit rating agency to maintain credit rating at
AAA) would lead to moderation in the loan book growth for IDFC. We expect a
30% yoy growth in FY09E and a 25% yoy growth in FY10E to Rs 323.45bn