general research

1. A COMPARATIVE ANALYSIS OF FINANCIAL PERFORMANCE
INDICATORS BETWEEN PUNJAB NATIONAL BANK
AND HDFC BANK
After the end of the nationalization the Indian bank system with a big branch net and a
wide range of finance instruments has considerably developed. Because the bank branch grows
today at rapid speed and competition, it has more than 11.75150 employees and has 1.09811
branches in completely India and 171 branches abroad and has inserts at the rate of 67,504.54
milliards and bank loans of Rs. 52,604.59 milliards administers.
The banking sector has a very important place in our Indian economy. The height of the
profit indicates the efficiency of the organisation, the greater the profit higher the growth rate.
The profitability depends on the actual use of the means to earn maximum profit for the growth.
The present research paper is an attempt to make a comparative study between the growth rate
in the Punjab Nationwide to bank and the bank HDFC. As a growth analysis of both banks for
a period of 5 years, so from 2017 to 2021, it is made. The most important growth parameters at
banks are the growth of the clear profit, the growth of the net assets, ROA (Return on Assets)
and NPA
INTRODUCTION
The banking is one single branch which encloses one dozen enterprises, like
Corporate Banking, Investment banking, Small business Banking, administration of
property, capital markets et cetera. In addition, is the private customer's business which
distinguishes itself by a big number of customers, accounts and transactions, a variety
of products and services, a high dependence on technology and an excellent cooperation
between banks, retail dealers? Enterprises and consumers
Banks have more capacities than they can be of use; consumers need a bank
account to receive state achievements; and the banks further consolidate to a small
number of major banks. This consolidation can be a good one or a bad thing. Absolutely
smaller banks will have to develop successful strategies to be able to compete with big
banks, and such a competition will be of benefit for the customers. Hope could be that
even if we have a handful of banks at the end, they compete at least with each other and
do not feel fine, the competition together begin. But this could be a dream. We need a
real competition.
After the end of the nationalisation the Indian bank system with a big branch net
and a wide range of finance instruments has considerably developed. How the bank
branch grows 2017. The bank has a paid-up capital of 370.91 crore like in March, 2017,
at the age of more than 120 years of purposeful existence, more than 8.9 crore customers
by 6200 branches she has grown. What concerns the bank HDFC, it was founded in
2014 by the reserve bank of India. It was the first bank which received the approval
from the RBI to be based as private Sector bank. The capital deposited in March, 2016
amounts to Rs. 501.2990,634, the company capital rate amounts to 16.1% and to 3659
branches with 11766 cash machines in March,2017.

2. OBJECTIVE OF STUDY
 To check growth rate of the both to examined banks
 The growth compare between private (bank HDFC) and the bank of the public sector (PNB)
RESEARCH METHODOLOGY
With the present study it concerns the secondary data which are collected from different
magazines, reports by RBI and business reports of banks, moneycontrol.com. The study
time is limited, from 2016-17 to 2020-21
CONCEPT OF GROWTH
Growth is to be grown the draught for the banking sector in a profitable manner,
in assets, in the number of the branches and networks in the number of the cash
machines, in the company capital rate, but less in percent of the NPA.
Every year the aims are fixed by the banks to reach them, different kinds of
patterns are initiated and the interest is adapted for inserts and loans. The increase of the
business per employee of the bank is valued in comparison to the year before. Company
profit, clear profit, yields share, dividend share, capital yield, company capital yield,
interest cover rates are the other graduations to measure the growth of an enterprise for
a longer period. Growth also indicates to compare the clear profit of the current year to
the last year's profit.
All this depends, primarily, on the factor which is very important in the latest
scenario, is the customer satisfaction and the quick services of the banks. Also the
technology factor affects very much hardly the growth. The bank which makes
available the customer which they grow fast on every growth parameter, the quick
services.
COMPARISON OF NET ASSETS GROWTH
The net property is the sum of the property side of the balance which excludes a
regulation for the depreciation fund or the assets stated to the book value less write-off
costs or the market value of the property value to disarm, less the expected loss or the
transfer to reserve compared with this property value. This sum of the assets side
excludes the fictive property if on the assets side of the balance like pre - expenditures,
discounts have been reflected paid interest on the issue of shares or debentures, from
capital etc. The net property encloses both kinds of assets, i.e., the capital assets, as well
as the present property which owns the enterprise which is in the possession of the
concerning enterprise. These assets form the basis to enable the enterprises, to carry out
her business activity to the proceed and to strengthen her position during the coming
years. These assets are provided by the enterprise from different springs in the liability
side of the enterprise, i.e. owner fund and borrowed funds or the internal resources of
the enterprise from profits.

3. An indicator of how profitable a bank is relative to its total assets. ROA gives an
idea as to how efficient management is at using its assets to generate earnings.
Calculated by dividing a company's annual earnings by its total assets. Sometimes this
is referred to as "return on investment".
The formula for return on assets is: Net Income / Total Assets
BANK
YEAR
Mar’21 Mar’20 Mar’19 Mar’18 Mar’17 AVERAGE
PNB 6.40 6.47 6.62 6.26 6.56 6.462
HDFC
6.91 7.50 7.95 7.54 8.02 7.584
In PNB return on assets is 6.56 during the year Mar’17. This ratio represented
mixed trend during the study period and decreased up to level of 6.40 in the year
Mar’21. This shows net decrease of 0.16 as compared to the year Mar’17. The
average of this ratio during the study period is 6.46.
0
1
2
3
4
5
6
7
8
9
Mar’21 Mar’20 Mar’19 Mar’18 Mar’17 AVERAGE
RETURN ON ASSETS
PNB
HDFC

4. In HDFC Bank Ltd. Return on assets is 8.02 during the year Mar’17.
This ratio represented increasing trend during the study period and reached up
to 6.91 in the year Mar’21. The average of this ratio during the study period is
7.58.
GROWTH RATE OF NET PROFIT / LOSS
The group profit is that what is left from the turnover of an enterprise after
deduction of all costs. It becomes called also as a clear profit, profit or, all in all. The
net income which is not paid in dividends is added to the profit reserves. The rising
(sinking) clear profit is a good (bad) sign for the profitability of an enterprise.
Enterprises with consistent and rising group profit in the course of the time are valued
by the stockholders very positively.
The clear profit is on other base for the comparison of the achievement of these
both banks PNB and HDFC. The clear profit growth concerning the Punjab Nationwide
bank and the bank HDFC was calculated by the production of the clear profit after
taxes to judge the absolute growth of the clear profit by taxes.
Net Profit PNB and HDFC Bank
Years PNB HDFC
Amount Amount
Mar’21 2,021.62 31,116.53
Mar’20 336.19 26,257.32
Mar’19 -9975.49 21,078.17
Mar’18 -12282.82 17,486.73
Mar’17 1324.80 14,549.64
The table shows the trends in net profit of PNB and HDFC Bank. Table reveals
information about the CAGR of both banks. It presents that CAGR for net profit of
HDFC Bank is more than PNB. Gap between CAGR for net profit of PNB is too far from
HDFC Bank.

5. It shows the trends in AGR of NET Profit of PNB and HDFC Bank. It shows
AGR for net profits of HDFC Bank is positive all years but diminishing year on year
and CAGR for net profit of bank (13.22) is more than PNB.
On other side AGR for net profits of PNB is diminishing and it negative after FY
Mar’18 to upto end and CAGR for net profit of PNB (- 17.09) is negative. Table
indicates that performance of HDFC Bank in term of net profit is better compare to
PNB.
-15,000.00
-10,000.00
-5,000.00
0.00
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
30,000.00
35,000.00
Mar’21 Mar’20 Mar’19 Mar’18 Mar’17
PNB
HDFC

6. NPA (NON-PERFORMING ASSETS)
A debt obligation with which the borrower to the designate credit grantor has
paid no before agreed interest and capital repayments for a longer period. The
Non-Performing Asset gains to the credit grantor, hence, no yields in the form of
capital and interest payments
An asset becomes non performing when it ceases to generate income for the
bank. In this respect, the RBI has prescribed a standard norm of 5 percent
maximum. All the banks in India are required to follow this.
Net NPA
NPA Ratio = ------------- x 100
Total Advances
Where Net NPA = Gross NPA‘s – Provision for NPA‘s And Total
Advances = Total Advances are taken as per the amount shown in the assets
side of the balance Sheet of the bank. All banks have to make full provisions
for NPA‘s as per the prudential norms of RBI.
Net NPA Ratio
BANK
YEAR
AVERAGE
Mar’21 Mar’20 Mar’19 Mar’18 Mar’17
PNB 6.00 6.00 7.00 11.00 8.00 7.6
HDFC 0.00 0.00 0.00 0.00 0.00 0.00

7. In PNB, Net NPA Ratio is 8.00 during the year Mar’17. This ratio
represented increasing trend during the study period and increased up to level
of 6.00 in the year Mar’21. This shows net decrease of 2.00 as compared to
the year Mar’17. The average of this ratio during the study period is 7.6.
In HDFC Bank, Net NPA Ratio is 0.00 during the year Mar’17. This
ratio represented decreasing trend during the study period and decreased up to
level of 0.00 in the year Mar’21. This shows net decrease of 0.00 as
compared to the year Mar’17. The average of this ratio during the study
period is 0.00.
In PNB, Net NPA Ratio is 8.00 during the year Mar’17. This ratio represented
increasing trend during the study period and increased up to level of 6.00 in the year
Mar’21. This shows net decrease of 2.00 as compared to the year Mar’17. The average
of this ratio during the study period is 7.6.
In HDFC Bank, Net NPA Ratio is 0.00 during the year Mar’17. This ratio represented
decreasing trend during the study period and decreased up to level of 0.00 in the year
0
2
4
6
8
10
12
Mar’21 Mar’20 Mar’19 Mar’18 Mar’17 Average
Net NPA Ratio
PNB
HDFC

8. M ar’21. This shows net decrease of 0.00 as compared to the year M ar’17. The
average of this ratio during the study period is 0.00.