Girish

Banking Business Unit : 

Banking Business Unit Girish G Vaidya Senior Vice President and Head – Banking Business Unit, Infosys

Safe Harbor: 

Safe Harbor Certain statements made in this Analyst Meet concerning our future growth prospects are forward-looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, industry segment concentration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks or system failures, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Infosys has made strategic investments, withdrawal of governmental fiscal incentives, political instability and regional conflicts, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2004 and quarterly report on Form 6-K for the quarter ended June 30, 2004. These filings are available at www.sec.gov. Infosys may, from time to time, make additional written and oral forward-looking statements, including statements contained in the company's filings with the Securities and Exchange Commission and our reports to shareholders. The company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the company. Slide 2

The Changing Banking Paradigm: 

The Changing Banking Paradigm External drivers compel banks to leverage the developments in Information Technology and continuously innovate Regulatory change and consolidation Competitive forces Changing Consumer External Drivers Tool Result Technological developments Technology-led Innovation Product & Service Innovation Organizational & process Innovation Slide 3

Leveraging technology for innovation: 

Leveraging technology for innovation Extensible Flexible Parameterizable Incorporates best-business practices Straight Through Processing Workflows to automate processes Process Centralization Single window service Product & Service Innovation Organizational and process Innovation ‘’In the past, industry has tended to be overly focused on PRODUCT innovation. Product innovations at best gives a bank a 3 month head start over competition. PROCESS innovation can put a bank more than a year ahead of competition. Continued success, therefore, comes from process innovation. And the ability of the bank to build ongoing process innovation is determined by flexibility and adaptability of its core banking systems’’ - Chairman of a Large International Bank Implication for Technology Slide 4

Key imperatives for solution providers: 

Key imperatives for solution providers Support “end-to-end” solution as well as “best-of-breed” approach End-to-end solution straddling all banking businesses/ customer channels Modular architecture – “plug and play” solution Open technologies to easily work with multitude of applications – for e.g. solutions for niche areas like Regulatory Reporting, Anti Money Laundering (AML) solutions etc. Flexibility/ extensibility Greater business agility – USPs, Lower Time-to-Market Low dependence on vendor for product launches, process changes etc. Better ROI through Strong implementation and support capability – upgrades, trouble-shooting Lower overall cost – hardware, software, network, change management Future proofing of technology Scalability Process efficiencies and resource saving through Straight Through Processing Support global business rules – multi-entity, currency, country, time-zones etc. Better management control through relevant and timely MIS Slide 5

Rules of the Game: 

Rules of the Game Agility Growth Efficiency Risk Flexibility beyond parameters Cost effective automation Most scalable core banking solution Lowest overall risk Slide 6

Infosys offers the lowest overall Risk: 

Infosys offers the lowest overall Risk Vendor Viability Strong Balance Sheet and visionary management End-to-end solution comprising Fast-growing product suite spanning all banking businesses Business Process Outsourcing IT Outsourcing IT Services Delivery excellence Consistent on-time, on-budget delivery Rapid implementation, setting new benchmarks in every market Our philosophy is driven by the corporate motto to always strive to deliver beyond expectations Proven and highly scalable solution Finacle® powers some of the largest banks world-wide on Open Systems Slide 7

Rules of the Game : 

Rules of the Game Agility Growth Efficiency Risk Flexibility beyond parameters Cost effective automation Most scalable core banking solution Lowest overall risk Slide 8

Growth – most scalable core banking solution: 

Growth – most scalable core banking solution By aggressively leveraging technology, ICICI Bank has in the last 3 years, grown from a retail bank to a universal bank 2 Mergers in 2 years Highest peak workload (450 TPS) handled by any open transaction system in the World (Winter Corporation, Waltham, MA, USA) PNB – one of the largest state owned banks in India, powered by Finacle®, is today LIVE with 30m customers with 10,000 users and is scheduled to cross 60m customers and 20,000 users within the next 12 months 2001 120 branches 2m customers 500k online customers <1m peak transactions/day 2004 450+ branches 10m+ customers 7m+ online customers 8m peak transactions/day In a Benchmark on HP Superdome, audited by E&Y, Finacle® clocked >16 m transactions per hour (4,562 TPS) in the online mode (using a real-life transaction mix and measured in terms of business transactions) Slide 9

Rules of the Game : 

Rules of the Game Agility Growth Efficiency Risk Flexibility beyond parameters Cost effective automation Most scalable core banking solution Lowest overall risk Slide 10

Efficiency – cost effective automation: 

Efficiency – cost effective automation STP enabled Finacle® Eliminates manual intervention CARTS (Complaints And Request Tracking System) at ABN AMRO Jaguar loan origination system at ABN Amro Bank Customer migration to channels with Full Service Banking Delivery channel transactions increased from 6% of the total transactions in 2000 to >70% in 2004 at ICICI Bank Enables process integration & orchestration (workflow, document imaging) Integration with Staffware for Trade Services processing at ICICI Bank Re-use of services (> 100 business services exposed) Slide 11

Rules of the Game : 

Rules of the Game Agility Growth Efficiency Risk Flexibility beyond parameters Cost effective automation Most scalable core banking solution Lowest overall risk Slide 12

Agility – The product manager’s dream: 

Agility – The product manager’s dream Extensibility toolkit enables the bank to differentiate and innovate quickly & cost effectively Launching new products ABN AMRO – cheque account with loyalty points ICICI student accounts Product & Process innovation Relationship based pricing – family units @ ABN Amro bank Responding to changing regulatory requirements AML compliance for cash transactions Delighting the customers Event based multi-channel alerts for retail and corporate customers by NCB, a leading Caribbean bank Slide 13

Flexibility using parameters: 

Flexibility using parameters Create segment specific products using standard parameters ICICI Bank Young Stars Bank@Campus (student banking services) Women’s account Extensibility toolkit to create USPs fleXaccount from ABN AMRO – Savings + Loyalty Points Slide 14

Where we were…: 

Where we were… Slide 15

Substantial investments to further globalize Finacle® … : 

Substantial investments to further globalize Finacle® … Global product benchmarks completed TowerGroup, USA for core banking functionality Peppers & Rogers for CRM Celent for e-banking in the US This year we are investing an additional $ 10 m in Finacle® Products Substantial increase in our engineering and domain teams to fast track product developmental activities New product offerings Web-based cash management Wealth management Sales More feet on the ground globally Entry into US and China with a sales team dedicated to products Expand sales force in Europe and APAC Slide 16

… are already showing returns - grabbing a larger share of the pie : 

… are already showing returns - grabbing a larger share of the pie Based on analysts’ estimates, we believe the annual size of the market for our products is approximately $ 1 bn (source – TowerGroup, Celent) We believe that an increasingly large number of banks will take a serious re-look at their technology solutions Typically core banking solution replacements consider a 3 years+ lifecycle Revenues get recognized over multiple years While we continue to dominate the Indian market. We have further consolidated our position in West Africa We dominate the e-banking space in Saudi Arabia too – 5 out of 5 deals in the last 24 months In the past 12 months, we have signed deals covering new markets such as USA, Belgium, France, Mainland China, Thailand, Philippines, South Africa, Australia, etc. The recently concluded SBI deal has further increased our footprint by 9 countries, spanning advanced markets Awards from ‘The Banker’, London 2004 – Mobile Solution of the Year “Commendable” Application of the Year – Corporate e-banking Slide 17

Where we are: 

Where we are CAGR from March 2000 to June 2004 is 49.3% * LTM Slide 18

In conclusion…: 

In conclusion… We believe we have an excellent value proposition for our customers We are investing in our products substantially and are committed to strengthening Finacle’s position as a leading global banking solution In the last 12 months we have entered various new markets We believe we are well on our way to consolidating our position as a leading technology partner for banks worldwide Slide 19

Thank You: 

Thank You