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A study on financial analysis of hdfc bank

A study on financial analysis of hdfc bank






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  • liberalization of the financial market in India, corporate need more sophisticated risk management information advice and product structure. including working capital finance trade services, transactional services, cash management
  • There are more than 50 religious institutes which open there account in HDFC bank recently some of the famous temples are

A study on financial analysis of hdfc bank A study on financial analysis of hdfc bank Presentation Transcript

  • Prepared By- Damani vivek. Khambholiya Manan.SUBMITTED TO :- Pokar Bhargav.MS. Anupama Goswami. Hirpara Sailesh Rasadiya Mehul.
  • Founder of HDFC Hasmukh Bhai parekh In 1956 he began his financial affairs. In 1992, government of India honored him with Padma Bhushan. In 1994 he abode the earth.
  • HDFC BANK Housing Development Finance Corporation HDFC Bank was incorporated in August 1994 Among the first in new generation commercial banks Was amongst the first to receive an in-principle approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBIs liberalization of the Indian Banking Industry in 1994. Registered office in Mumbai, India Listed in NSE and BSE
  • BOARD OF DIRECTORS Mr. Jagdish Kapoor , chairman of HDFC Bank. Mr. Aditya Puri, Managing director Keki Mistry, Managing Director Mr. Harish Engineer, Executive directors Mr. A Rajan, Country Head-Operations Mr. Rahul Bhagat, Vice president
  • HDFC Focuses onUnderstanding the needs of customers and offering them superior product and service. Leveraging technology to service customers quickly and conveniently.To create quality of consumers and not quantity of Consumers. Providing and enabling environment to foster growth and learning for the employees.
  • THE THREE MAJOR FUNCTIONS OF HDFC BANKHDFC Bank deals with three key business segments:- Retail Banking Services Wholesale Banking Services Treasury Operations
  • Capital Structure The authorized capital of HDFC Bank is Rs550 crore (Rs5.5 billion). The paid-up capital is Rs424.6 crore (Rs.4.2 billion). The HDFC Group holds 19.4% of the banks equity Roughly 28% of the equity is held by Foreign Institutional Investors (FIIs) and the bank has about 570,000 shareholders
  • NETWORK 761 branches 1977 ATM’s in the country 327 cities in India 16 branches in Middle east 6 in Africa Representative offices in Hong Kong, New York, London & Singapore
  • Accounts of Religious institutions Shree siddhivinayak Ganpat Dargah khwaja sahib ,Ajmer Laxmi narayan mandir Delhi Mata vaishno devi Mandir Jagan Nath temple Shirdi Sai baba Golden temple Amarnath temple
  • SERVICESATMCredit CardsNet BankingPhone BankingMobile BankingLoans
  • AchievementsHDFC Bank merged with TIMES BANK in 2000.HDFC Bank merged with CENTURION BANK OF PUNJAB in 2007.HDFC Bank wins the Asian Banker Best Retail Bank in India Award 2008 for outstanding performance.HDFC Bank chosen as one of Asia Pacific’s best 50 companies by Forbes magazine.Best Bank in the Private Sector 2008.HDFC Bank ties up with Qatar National Bank.
  • VISION Increase market share in India’s banking sector Leverage technology platform Maintain standards for asset quality Focus on high earnings growth with low volatility Develop innovative products and services
  • MISSION Mission is to be "a World Class Indian Bank“ Benchmarking ourselves against:  international standards and  best practices in terms of product offerings, technology, service levels, risk management and audit & compliance.
  • VALUES Business philosophy is based on four core values  Customer Focus  Operational Excellence  Product Leadership  People
  • Analysis andInterpretation
  • Current Ratio Current ratio = Current assets Current liabilities 1.47 1.48 1.46 1.44 1.42 1.36 1.39in % 1.40 1.38 1.36 1.34 1.32 2010 2011 2012 year
  • Interpretation: -• An ideal current ratio is 2:1. The ratio 2:1 isconsidered as a safe margin of solvency due to the fact thatif the current assets are reduced to half i.e. 1 instead of 2then the creditors will be able to get their payments in full.• Here, it shows that the bank has 1.36:1, 1.47:1 & 1.39:1which is quite satisfactory but can be improved by betterturnover and profit and also by decreasing liabilities.
  • Quick RatioQuick ratio = quick asset Current liability 0.69 0.7 0.6 0.55 0.6 0.5 0.4 in % 0.3 0.2 0.1 0 2010 2011 2012 year
  • Interpretation• If the ratio 1:1 then firm has enough cash onhand to meet all current liabilities. In cash positionratio 1:1 is satisfactory result.• In 2009-2010 year’s ratio is 0.55:1 & 2010-11year’s ratio is0.60:1 & 2011-12 year’s ratio is 0.69. Itmeans the good position for the bank. In the cashposition ratio cash is increase in 2010-11 comparewith 2009-10. And also marketable securities increasein 2012
  • •Debt – Equity RatioDebt Equity Ratio: = Long Term liability *100 Shareholders Fund 4.98 5 4.39 4.06 4.5 4 3.5 3in % 2.5 2 1.5 1 0.5 0 2010 2011 2012 year
  • Interpretation•This ratio is continues increasing but thefigures are not satisfactory. This ratioindicates equity capital or owner’s capitalis increasing. It should be 10 times higherthan the present position.
  • •NAV Ratio•Net Assets Value(NAV) :- = Equity Shareholder’s Fund No. Of Equity Share 3.86 0.87 0.868 0.866 0.864 4.57 4.34 0.862in % 0.86 0.858 0.856 0.854 2010 2011 2012 year
  • Interpretation• In this ratio, total assets are far more than externalliabilities. The banks treated solvent. In solvency ratioin 2010 is 4.57:1 and increase in 2011 is 4.35, itmeans that outside liabilities is always less than totalassets.
  • •Net profit ratio Net profit ratio = Net profit ×100 Sales 12.37 12.37 12.4 12.35 12.3in % 12.25 12.2 12.2 12.15 12.1 2010 2011 2012 year
  • Interpretation • Generally this ratio is required 10 to 15%.If it is more than 15% than it shows good position butif it under 15% it is not good but required position isgood. • In 2010- 11the net profit ratio is 12.20%,& in 2011-12 the net profit ratio is 12.37% it is goodfor bank.
  • •RAM ratioReturn on capital employed ratio = Net profit X 100 Capital Employed 1.6 1.6 1.595 1.59 in % 1.585 1.58 1.58 1.58 1.575 1.57 2010 2011 2012 year
  • Interpretation• Return on capital employed is stable around 1.60%.This ratio also shows wrote position. Because this is notsatisfactory return on capital employed. In accordanceto banking industry it should be between 2% to 4%. Sothat it can be said that return on capital employed islower.
  • RecommendationsBetter inventory management is required because it’s consistently decreasing which is an obstacle to be in competitionThey are market leader but their nearest competitor is very close with respect to market share. So if they want to compete with them it is necessary to utilize their resource in best way
  • CONCLUSIONSuccess is achieved by those who try where there is nothing to lose by trying and a great deal to gain if successful, by all means try”•The study may be a helpful step ahead in increasing themorale of each Employee• By studying this, Bank will can come to know that whateffective measure can be take to maintain the effective use ofresources.• Such results and conclusions are definitely helpful in orderto achieve goals of the organization in this modern businessworld.•There is a lot to be said for valuing a company, it is no easytask. I hope that I have helped shed some light on this topicand that you will use this information to make educatedinvestment decision.