Inclusion through Business Correspondents Saurabh Tripathi, Partner & Director, BCG 17 th March 2010

1 Xxxxx-xx/Footer India has third largest branch network in the World ThailandChinaUnited States Switzer- land Philipp- ines MalaysiaGermanySpainItalyJapanIndiaBelgiumCanadaUnited Kingdom FranceIndon- esia # of branches/offices Source: BCG analysis

2 Xxxxx-xx/Footer Traditional branches can not fill the gap in banking reach SpainItalySwitzer- land FranceBelgiumGermanyJapanUnited KingdomUnited States CanadaThailandMalaysiaIndiaChinaIndon- esia Philipp- ines # of branches/offices per million inhabitants High Penetration Moderate Penetration Low Penetration Source: BCG analysis

3 Xxxxx-xx/Footer The journey of telecom inclusion in India Tele density over time Mar-07Mar-06Mar-05Mar-04Mar-03Mar-02Mar-01Dec-09Mar-09Mar-08Mar-98Mar-99Mar-00Mar-97Mar-96Mar-95 Overall teledensity (%) 1 1. Includes wireless and wireline Source: Press run, TRAI, IndiaInfoline, Indiastat Rural Urban 9%13%18% 60%85%101%

4 Xxxxx-xx/Footer The journey of telecom inclusion in India Price cuts unlocked latent market Mar-95Mar-96Mar-97Mar-98Mar Mar Mar-01Mar Mar Mar Mar Mar-07Mar Mar-09Mar-10e Revenue/min(US$/min) Mobile subscriber base (Mn) Mar US$/min 0.03 Timeline of significant events Source: Citigroup Investment Research and Merill Lynch wireless matrix,TRAI National Telecom Policy’ 99 Migration to revenue sharing Start of operations in 4 metros Start of operations in all circles Telecom tariff order 4 th mobile operator entry Entry of incumbents BSNL & MTNL CDMA service launch Introduction of CPP Lowering of ADC Lifetime Prepaid Micro Prepaid

5 Xxxxx-xx/Footer Network coverage in India has expanded rapidly in last two years reducing potential to differentiate for a new entrant 2006: coverage largely in urban India 2008: Very few areas left uncovered Note: GSM coverage only Source: GSM World

6 Xxxxx-xx/Footer About USD 40 billion invested by the telecom industry (e) USD Mn Note: Deflated subscriber add-on's by 10% from and then by 20% till Capex assumed to decline from $150 - $75 per subscriber from Source: Bcg analysis

7 Xxxxx-xx/Footer Technology partners for financial inclusion Company Equity 1 (Rs Cr) Equity 1 (Rs Cr) Revenue (Rs Cr) Revenue (Rs Cr) 1.77 na Profit/(Loss) (Rs Cr) Profit/(Loss) (Rs Cr) (12.29) na (16.75) 1. Paid up Capital + Reserves and Surplus Source: MCA, Company ARs Loss making, small and have no investment appetite

8 Xxxxx-xx/Footer Foundations for success “Seizing the opportunity” CollaborationInnovation Experimentation Sustainability Understanding the needs and limitations of all participating companies Deconstructing and reconstructing the value chain to realise aspirational goals Systematic experimentation; not condemning failure Persistence and tenacity

9 Xxxxx-xx/Footer BC need to be value added partners KYC AML Funds management Bank Customer relationship Product design Pricing BC Back end integration Mobile phone Internet Physical Outlets Payment Network