A comparative study of share prices of HDFC bank and ICICI Bank using quantitative techniques. 30 days stock price of HDFC bank and ICICI bank. techniques used: correlation, mean, standard deviation, range, coefficient of variation,etc

1. Submitted By:
Divya Anand (21/013)
Gunjan Sachdeva (21/014)
Gurpreet Singh (21/015)
Jasanpreet Kaur (21/016)

2. Brief History of HDFC Bank
Profile:-
HDFC Bank Limited is an Indian financial services company based in
Mumbai, Maharashtra that was incorporated in August 1994 by
Hasmukh bhai prakash. HDFC Bank is the fifth largest bank in India by
assets and currently has a nationwide network of 3,119 Branches and
11,088 ATM's in 1,891 Indian towns and cities. Their single-minded
focus on product quality and service excellence has helped them
garner the appreciation of both national and international
organizations.
Mission:-
Our 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. The objective is to build sound customer
franchises across distinct businesses so as to be a preferred provider
of banking services for target retail and wholesale customer
segments, and to achieve a healthy growth in profitability, consistent
with the Bank's risk appetite. We are committed to do this while
ensuring the highest levels of ethical standards, professional
integrity, corporate governance and regulatory compliance.
Products and services:-
Travelers cheques
Credit card
Home loan
Personal loan
Foreign currency cash

3. Brief History of ICICI Bank
Profile:-
ICICI Bank is India's largest private sector bank. It is founded in 1955
by as a joint venture of World Bank. ICICI bank launched internet
banking operations in 1988. In 2000, ICICI bank became the first
Indian bank to list on the New York stock exchange. It is the second
largest bank. The Bank has a network of 3,382 branches and 10,943
ATMs in India, and has a presence in 19 countries, including India.
ICICI Bank's equity shares are listed in India on BSE and the NSE of
India Limited and its American Depositary Receipts (ADRs) are listed
on the New York Stock Exchange (NYSE).
Mission:-
The mission statement is to the first choice for customers and to
create value. ICICI Bank expects their employees to abide by the
vision and mission statement.
Products and Services:-
Travelers cheques
Credit card
Personal banking
Business banking
NRI banking
Insurance
Investment

4. MEAN
For HDFC Bank
Total value of shares (∑x) = 18886.35
No. of shares (n) = 30
Mean = ∑x/n
= 18886.35/30
= 629.545
For ICICI Bank
Total value of shares (∑x) = 27256.45
No. of shares (n) = 30
Mean = ∑x/n
= 27256.45/30
= 908.54833

5. Graphical Presentation
INTERPRETATION:
The above chart shows that ICICI Bank has a high average share value
than HDFC Bank. Thus its market value is higher as compared to
HDFC Bank.
Mean
HDFC 629.545
ICICI 908.54833
0
100
200
300
400
500
600
700
800
900
1000
SharePrice
Mean

6. Median
For HDFC Bank
No. of shares (n) = 30
Median = (Value at (N/2) Position + Value at (N/2+1) Position)/2
= (621.35+625.35)/2
= 623.35
For ICICI Bank
No. of shares (n) = 30
Median = (Value at (N/2) Position + Value at (N/2+1) Position)/2
= (902.45+905.95)/2
= 904.2

7. Graphical Presentation
INTERPRETATION:
The above chart shows that ICICI Bank has a high median value as
compared to HDFC Bank. Since it describes the behavior of the entire
set of numbers we can say that ICICI Bank shares have a high median
value.
MEDIAN
HDFC 623.35
ICICI 904.2
0
100
200
300
400
500
600
700
800
900
1000
SharePrice
MEDIAN

8. Range
For HDFC Bank
Range = maximum(xi) - minimum(xi)
where xi represents the set of values.
Maximum Value = 695.15
Minimum Value = 561.90
Range = 695.15 – 561.90
= 133.25
For ICICI Bank
Range = maximum(xi) - minimum(xi)
where xi represents the set of values.
Maximum Value = 1062.85
Minimum Value = 802.60
Range = 1062.85- 802.60
= 260.25
INTERPRETATION:
The range is the size of the smallest interval which contains all the
data and provides an indication of statistical dispersion. It is
measured in the same units as the data. Here, the range of shares of
ICICI bank is higher than HDFC Bank.

9. Variance
For HDFC Bank
Variance =
= 1356.5331
For ICICI Bank
Variance =
= 4737.05646

10. Graphical Presentation
INTERPRETATION:
The variance of ICICI Bank Shares is very higher than HDFC Bank
shares which shows a high Market Risk.
VARIANCE
HDFC 1356.53316
ICICI 4737.05646
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
SharePrice
VARIANCE

11. Standard Deviation
For HDFC Bank
Variance = 1356.5332
Standard Deviation =
= 36.831
For ICICI Bank
Variance = 4737.05646
Standard Deviation =
= 68.826

12. Graphical Presentation
INTERPRETATION:
A large standard deviation indicates that the data points are far from
the mean and a small standard deviation indicates that they are
clustered closely around the mean. Since ICICI bank shares have a
high standard deviation it indicates that the shares are far from the
mean.
STANDARD DEVIATION
HDFC 36.83114
ICICI 68.82628
0
10
20
30
40
50
60
70
80
SharePrice
STANDARD DEVIATION

13. Coefficient of Variation
For HDFC Bank
Standard Deviation ( σ ) = 36.83
Mean ( ) = 629.545
Coefficient of Variation (Cv) = Standard Deviation / Mean * 100
= 36.83/629.545 * 100
= 5.9 %
FOR ICICI Bank
Standard Deviation ( σ ) = 68.82
Mean ( ) = 908.548
Coefficient of Variation (Cv) = Standard Deviation / Mean * 100
= 68.82/908.548 * 100
= 7.6%

14. Graphical Presentation
INTERPRETATION:
Since the value of coefficient of variation is high of ICICI Bank, it
indicates a high Standard Risk. Whereas the value of coefficient of
variation of HDFC Bank is lower as compared to ICICI Bank. Thus
shows a relatively lower standard risk.
Coefficient of Variation
HDFC 5.90%
ICICI 7.60%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
CoefficientofVariation
Coefficient of Variation

15. Skewness
For HDFC Bank
Mean = 629.545
Median = 623.35
Standard Deviation = 36.83
Skewness (Sk) = 3(Mean- Median)/Sd
Sk = 3(629.545-623.35)/36.83
= 0.168
For ICICI Bank
Mean = 908.548
Median = 904.2
Standard Deviation = 68.82
Skewness (Sk) = 3(Mean- Median)/Sd
Sk = 3(908.548-904.2)/68.82
=0 .0632

16. INTERPRETATION:
Skewness of HDFC Bank is more than ICICI Bank. It implies that
HDFC’s share price are more scattered than ICICI Bank

17. Correlation
Correlation =
Where,
X = Value of HDFC
Y = Value of ICICI
Correlation = 0.70877
INTERPRETATION:
As correlation approaches zero there is less of a relationship
(closer to uncorrelated). The closer the coefficient is to either
−1 or 1, the stronger the correlation between the variables.
Since the correlation is near to zero in this case, there is less
of a relationship.

18. Conclusion
Quantitative
Technique Conclusion
Mean
ICICI Bank average is Higher whereas HDFC Average
is Low
Median
Higher Median in ICICI significant that it is reliable as
compare to HDFC Bank
Range
ICICI Bank has more statistical dispersion as compare
to HDFC Bank
Variance
Investment in ICICI Bank is more risk but in case of
HDFC Bank it is not risky
Standard
Deviation
ICICI Bank has a larger standard deviation which
indicates that the data points are far from the mean
and in case of HDFC Bank small standard deviation
indicates that they are clustered closely around the
mean
Coefficient of
Variance
ICICI is not preferable due to higher CV value when
compare with HDFC Bank
Skewness
ICICI shares are not scattered whereas HDFC shares
are
Correlation ICICI Bank and HDFC Bank share has no relationship

19. APPENDIX:
Statistical Data of HDFC
Date Close
27-08-2013 561.9
26-08-2013 611.3
23-08-2013 607.55
22-08-2013 588.7
21-08-2013 593.35
20-08-2013 584.75
19-08-2013 584.7
16-08-2013 587.9
14-08-2013 621.35
13-08-2013 620.5
12-08-2013 602.2
08-08-2013 610.5
07-08-2013 601.2
06-08-2013 608.65
05-08-2013 632.7
02-08-2013 631.25
01-08-2013 632.2
31-07-2013 609.75
30-07-2013 625.35
29-07-2013 632.5
26-07-2013 644.7
25-07-2013 654.2
24-07-2013 660.15
23-07-2013 683.35
19-07-2013 680.8
18-07-2013 684
17-07-2013 662.65
16-07-2013 678.65
15-07-2013 695.15

20. 12-07-2013 694.4
Statistical Data of ICICI Bank
Date Close
27-08-2013 802.6
26-08-2013 830.45
23-08-2013 853.05
22-08-2013 831.1
21-08-2013 829.55
20-08-2013 830.4
19-08-2013 815.35
16-08-2013 858.6
14-08-2013 905.95
13-08-2013 892.55
12-08-2013 867.05
08-08-2013 875.05
07-08-2013 868.25
06-08-2013 866.35
05-08-2013 902.45
02-08-2013 887.1
01-08-2013 914.2
31-07-2013 909.05
30-07-2013 926.05
29-07-2013 928.6
26-07-2013 932.35
25-07-2013 935.35
24-07-2013 952.85
23-07-2013 989.8
19-07-2013 959.05
18-07-2013 985.1
17-07-2013 980.2
16-07-2013 1003.2
15-07-2013 1062.85

21. 12-07-2013 1061.95