The document describes a study comparing the risk positions of Canara Bank and HDFC Bank. It outlines the hypotheses being tested related to capital adequacy ratio, liquidity risk, and credit risk. It then describes the secondary data sources used, sampling design which focuses on these two banks, and statistical techniques like t-tests that will be used for analysis. Key variables that will be compared include capital adequacy ratio, debt-equity ratio, advances to assets, and government securities to investments. Historical data is also presented for these variables for both banks.

1. Type of Research Designs Used

2. Hypothesis
• H0: There is no significant difference between the
Capital Adequacy Ratio of Canara Bank and HDFC
bank
• H1: There is significant difference between the
Capital Adequacy Ratio of CANARA BANK and
HDFC bank
• H0: There is no significant difference in Liquidity
Risk position between CANARA BANK and HDFC
bank.
• H2: There is significant difference in Liquidity Risk
position between CANARA BANK and HDFC bank.

3. • H0: There is no significant difference in Credit
Risk position between CANARA BANK and
HDFC bank.
• H3: There is significant difference in Credit
Risk position between CANARA BANK and
HDFC bank.

4. Data sources
• The present study utilizes both primary and
secondary data sources. The secondary data
sources primarily consisted of the following:
• Published studies in various international and
national journals and conference proceedings
• Articles published in periodicals.
• Information contained in websites such as RBI
website, websites of various banks in India,

5. Sampling Design
• The investigation is based on the secondary
data which has been collected from various
websites, journals, Newspapers and articles
and various other resources.
• Researcher has chosen banks from public and
private sectors and then analyzed the data of
public and private sector.

6. • compared the performance of private and
public banks on the basis of variable like
• Capital Adequacy Ratio (CAR)
• Debt-Equity Ratio(D/E)
• Total Advances to Total Assets(ADV/AST)
• G-Secs to Total Investments (G-Sec/Inv)

7. 1) To make the study more manageable.
2) Telebanking services were not that widely adopted
and this service was offered by the scheduled
commercial banks only in a few select branches located
in the metros and major urban centres. Only some
banks were offering this service.
3) Though mobile banking has tremendous potential, the
service provisioning was only in the initial phases by
most of the banks and hence it was yet to gain wide
spread awareness and acceptance.

8. Sampling procedure
• The units of analysis or sampling elements
were the bank from public sector Canara Bank
and from the private sector, HDFC Bank

9. Statistical Techniques
• The primary data collected from the respondents
were tabulated and analysed using the Statistical
Package for Social Sciences (SPSS. 21).
• The statistical tools such as the
• weighted means,
• independent sample t-test and
• one way Regression analysis was used to test the
impact of variables on performance level of bank
of public and private sector.

10. • Correlation tests were used to find out the
pairwise relationships between various
variables Capital Adequacy Ratio (CAR) , Debt-
Equity Ratio(D/E) , Total Advances to Total
Assets(ADV/AST) ,G-Secs to Total Investments
(G-Sec/Inv) under study

11. Camel Based Performance Analysis
• Since exposure to credit risk continues to be
the leading source of problems in banks
world-wide
• The Basel Committee is issuing this document
in order to encourage banking supervisors
globally to promote sound practices for
managing credit risk.

12. • The principles clearly applicable to the business
of lending, they should be applied to all activities
where credit risk is present.
• While the exact approach chosen by individual
supervisors will depend on a host of factors,
including their on-site and off-site supervisory
techniques and the of the Basel Committee agree
that the principles set out in this paper should be
used in evaluating a bank’s credit risk
management system.

13. • A further particular instance of credit risk
relates to the process of settling financial
transactions. If one side of a transaction is
settled but the other fails, a loss may be
incurred that is equal to the principal amount
of the transaction.

14. Principles for the Assessment of Banks’
Management of Credit Risk
A. Establishing an appropriate credit risk
environment
Principle 1: The board of directors should have
responsibility for approving and periodically
(at least annually) reviewing the credit risk
strategy and significant credit risk policies of
the bank.

15. • Principle 2: Senior management should have
responsibility for implementing the credit
• risk strategy approved by the board of
directors and for developing policies and
• procedures for identifying, measuring,
monitoring and controlling credit risk.

16. • Principle 3: Banks should identify and manage
credit risk inherent in all products and activities.
• Principle 4: Banks must operate within sound,
well-defined credit-granting criteria. These
criteria should include a clear indication of the
bank’s target market and a thorough
understanding of the borrower or counterparty,
as well as the purpose and structure of the credit,
and its source of repayment.

17. • Principle 5: Banks should establish overall
credit limits at the level of individual
borrowers and counterparties, and groups of
connected counterparties that aggregate in a
comparable and meaningful manner different
types of exposures, both in the banking and
trading book and on and off the balance
sheet.

18. • Principle 6: Banks should have a clearly-
established process in place for approving new
credits as well as the amendment, renewal and
re-financing of existing credits.
• Principle 7: All extensions of credit must be made
on an arm’s-length basis. In particular, credits to
related companies and individuals must be
authorised on an exception basis, monitored with
particular care and other appropriate steps taken
to control or mitigate the risks of non-arm’s
length lending.

19. • Principle 8: Banks should have in place a
system for the ongoing administration of their
various credit risk-bearing portfolios.
• Principle 9: Banks must have in place a system
for monitoring the condition of individual
credits, including determining the adequacy of
provisions and reserves.

20. • Principle 10: Banks are encouraged to develop and
utilise an internal risk rating system in managing credit
risk. The rating system should be consistent with the
nature, size and complexity of a bank’s activities.
• Principle 11: Banks must have information systems and
analytical techniques that enable management to
measure the credit risk inherent in all on- and off-
balance sheet activities. The management information
system should provide adequate information on the
composition of the credit portfolio, including
identification of any concentrations of risk.

21. • Principle 12: Banks must have in place a
system for monitoring the overall composition
and quality of the credit portfolio.
• Principle 13: Banks should take into
consideration potential future changes in
economic conditions when assessing
individual credits and their credit portfolios,
and should assess their credit risk exposures
under stressful conditions.

22. • Principle 14: Banks must establish a system of independent,
ongoing assessment of the bank’s credit risk management
processes and the results of such reviews should be
communicated directly to the board of directors and senior
management.
• Principle 15: Banks must ensure that the credit-granting
function is being properly managed and that credit
exposures are within levels consistent with prudential
standards and internal limits. Banks should establish and
enforce internal controls and other practices to ensure that
exceptions to policies, procedures and limits are reported
in a timely manner to the appropriate level of management
for action.
• .

23. • Principle 16: Banks must have a system in place for
early remedial action on deteriorating credits,
managing problem credits and similar workout
situations.
• Principle 17: Supervisors should require that banks
have an effective system in place to identify, measure,
monitor and control credit risk as part of an overall
approach to risk management. Supervisors should
conduct an independent evaluation of a bank’s
strategies, policies, procedures and practices related to
the granting of credit and the ongoing management of
the portfolio.

24. Establishing an Appropriate Credit Risk
Environment
• Principle 1: The board of directors should have
responsibility for approving and periodically (at least
annually) reviewing the credit risk strategy and significant
credit risk policies of the bank.
• The credit risk strategy should give recognition to the goals
of credit quality, earnings and growth. Every bank,
regardless of size, is in business to be profitable and,
consequently, must determine the acceptable risk/reward
trade-off for its activities, factoring in the cost of capital. A
bank’s board of directors should approve the bank’s
strategy for selecting risks and maximising profits.

25. • The credit risk strategy of any bank should
provide continuity in approach. Therefore, the
strategy will need to take into account the
cyclical aspects of any economy and the
resulting shifts in the composition and quality
of the overall credit portfolio.

26. • The credit risk strategy and policies should be
effectively communicated throughout the
banking organisation. All relevant personnel
should clearly understand the bank’s approach
to granting and managing credit and should
be held accountable for complying with
established policies and procedures.

27. • The board should ensure that senior
management is fully capable of managing the
credit activities conducted by the bank and
that such activities are done within the risk
strategy, policies and tolerances approved by
the board.
• The board of directors should ensure that the
bank’s remuneration policies do not contradict
its credit risk strategy.

28. • Principle 2: Senior management should have
responsibility for implementing the credit risk
strategy approved by the board of directors
and for developing policies and procedures for
identifying, measuring, monitoring and
controlling credit risk. Such policies and
procedures should address credit risk in all of
the bank’s activities and at both the individual
credit and portfolio levels

29. • Senior management of a bank is responsible
for implementing the credit risk strategy
approved by the board of directors.
• A cornerstone of safe and sound banking is
the design and implementation of written
policies and procedures related to identifying,
measuring, monitoring and controlling credit
risk.

30. • Banks should develop and implement policies
and procedures to ensure that the credit
portfolio is adequately diversified given the
bank’s target markets and overall credit
strategy. In particular, such policies should
establish targets for portfolio mix as well as
set exposure limits on single counterparties
and groups of connected counterparties,
particular industries or economic sectors,
geographic regions and specific products.

31. • In order to be effective, credit policies must be
communicated throughout the organisation,
implemented through appropriate procedures,
monitored and periodically revised to take into
account changing internal and external
circumstances.
• When banks engage in granting credit
internationally, they undertake, in addition to
standard credit risk, risk associated with
conditions in the home country of a foreign
borrower or counterparty.

32. • Banks should develop and implement policies
and procedures to ensure that the credit portfolio
is adequately diversified given the bank’s target
markets and overall credit strategy.
• In order to be effective, credit policies must be
communicated throughout the organisation,
implemented through appropriate procedures,
monitored and periodically revised to take into
account changing internal and external
circumstances.

33. • When banks engage in granting credit
internationally, they underta ke, in addition to
standard credit risk, risk associated with
conditions in the home country of a foreign
borrower or counterparty.
• Banks that engage in granting credit
internationally must therefore have adequate
policies and procedures for identifying,
measuring, monitoring and controlling country
risk and transfer risk in their international lending
and investment activities.

34. • The basis for an effective credit risk management
process is the identification and analysis of
existing and potential risks inherent in any
product or activity.
• Banks must develop a clear understanding of the
credit risks involved in more complex credit-
granting activities (for example, loans to certain
industry sectors, asset securitisation, customer-
written options, credit derivatives, credit-linked
notes).

35. • New ventures require significant planning and
careful oversight to ensure the risks are
appropriately identified and managed.
• It is critical that senior management determine
that the staff involved in any activity where there
is borrower or counterparty credit risk, whether
established or new, basic or more complex, be
fully capable of conducting the activity to the
highest standards and in compliance with the
bank’s policies and procedures.

36. • Principle 4: Banks must operate within sound,
well-defined credit-granting criteria. These
criteria should include a clear indication of the
bank’s target market and a thorough
understanding of the borrower or
counterparty, as well as the purpose and
structure of the credit, and its source of
repayment.

37. • Establishing sound, well-defined credit-
granting criteria is essential to approving
credit in a safe and sound manner.
• Banks must receive sufficient information to
enable a comprehensive assessment of the
true risk profile of the borrower or
counterparty.

38. • Banks need to understand to whom they are
granting credit. Therefore, prior to entering
into any new credit relationship, a bank must
become familiar with the borrower or
counterparty and be confident that they are
dealing with an individual or organisation of
sound repute and creditworthiness.

39. • Banks should have procedures to identify
situations where, in considering credits, it is
appropriate to classify a group of obligors as
connected counterparties and, thus, as a single
obligor.
• Many banks participate in loan syndications or
other such loan consortia. Some institutions
place undue reliance on the credit risk analysis
done by the lead underwriter or on external
commercial loan credit ratings.

40. • Granting credit involves accepting risks as well as
producing profits. Banks should assess the
risk/reward relationship in any credit as well as
the overall profitability of the account
relationship.
• In considering potential credits, banks must
recognise the necessity of establishing provisions
for identified and expected losses and holding
adequate capital to absorb unexpected losses.

41. • Banks can utilise transaction structure,
collateral and guarantees to help mitigate risks
(both identified and inherent) in individual
credits but transactions should be entered
into primarily on the strength of the
borrower’s repayment capacity.

42. • Netting agreements are an important way to
reduce credit risks, especially in interbank
transactions. In order to actually reduce risk, such
agreements need to be sound and legally
enforceable.
• Where actual or potential conflicts of interest
exist within the bank, internal confidentiality
arrangements (e.g. “Chinese walls”) should be
established to ensure that there is no hindrance
to the bank obtaining all relevant information
from the borrower.

43. Capital Adequacy Ratio of HDFC Bank
YEAR CAR
2020 18.52
2019 17.1
2018 14.82
2017 14.6
2016 15.53
2015 16.79
2014 16.07

44. Capital Adequacy Ratio of Canara Bank
Year CAR
2020 14.14
2019 9.73
2018 9.2
2017 11.66
2016 11.28
2015 12.21
2014 11.52

45. • The result obtained has been presented under
following headings:
• 1. Risk Management of CANARA BANK and
HDFC bank
• 2. Correlation between various variables of
Risk Management.

46. • efficiency of financial systems around the world. CAR is
critical to ensure that banks
• have enough cushion to absorb a reasonable amount of
losses before they become
• insolvent.
• Capital adequacy ratios act as indicators of bank leverage.
The following ratios
• measure capital adequacy
• Capital Adequacy Ratio (CAR)
• Debt-Equity Ratio(D/E)
• Total Advances to Total Assets(ADV/AST)
• G-Secs to Total Investments (G-Sec/Inv)

47. • H0: There is no significant difference between the
Capital Adequacy Ratio of CANARA BANK and
HDFC bank
• H1: There is significant difference between the
Capital Adequacy Ratio of CANARA BANK and
HDFC bank
• Researcher collected the data of HDFC and
CANARA BANK from 2014 to 2020 and analyzed
the data to find out the financial health of both
banks.

48. Debt Equity Ratio (in Percentage)
YEAR Debt Equity Ratio HDFC Debt Equity Ratio PNB
2014
9.4300 13.5100
2015
8.0700 13.4900
2016
8.3100 16.7400
2017
8.0800 17.1000
2018
8.6200 18.4000
2019
7.0300 17.1500
2020
7.5600 13.0700
Total
8.1571 15.6371

49. Group Statistics
Bank N Mean Std. Deviation Std. Error Mean
Debt Equity Ratio HDFC
HDFC
7 8.1571 .76358 .28861
PNB
7 15.6371 2.19862 .83100

51. Financial Charges Coverage Ratio of HDFC Bank and PNB
(In Percentage)
YEAR Financial Charges Coverage Ratio HDFC Financial Charges Coverage Ratio PNB
2014
2.0200 1.6000
2015
2.0500 1.6200
2016
2.0100 1.6000
2017
2.0800 1.7500
2018
2.2300 1.5900
2019
2.1700 1.6100
2020
2.2600 1.6800
Total Mean
2.1171 1.6357

54. • Financial charges coverage ratio measures a
firm's ability to cover its charges, such as debt
payments, interest expense, and equipment
lease expense. It shows how well a company's
earnings can cover its expenses. Financial
coverage ratio fails the test of homogeneity.
Data is significant at 95 percent level
(t=10.809, df=9.553, sig=.000) From table it
can be concluded that HDFC is performing
better than PNB at this front.

55. Total Advances to Total Asset Ratio of HDFC and PNB
YEAR Total Advance to Total Asset Ratio HDFC Total Advance to Total Asset Ratio PNB
2014
61.6400 63.4600
2015
61.9000 63.0700
2016
62.7200 61.7800
2017
64.2000 58.2400
2018
61.8800 56.6400
2019
65.8400 59.1300
2020
64.9300 56.8000
Total
63.3014 59.8743

56. Group Statistics
Bank N Mean Std. Deviation Std. Error Mean
Total Advance to Total
Asset Ratio
HDFC
7 63.3014 1.68260 .63596
PNB
7 59.8743 2.88208 1.08932

58. • Total advances to total assets ratio measures the total
loans outstanding as a percentage of total assets. The
higher this ratio indicates a bank is loaned up and its
liquidity is low. The higher the ratio, the more risky a
bank may be to higher defaults.
• This test fails the assumption of homogeneity, value of(
t=2.717, sig=.02). From above table it is evident that in
2014 Total advance to total asset ratio of PNB is more
than HDFC but in 2020 it has improved and this ratio of
HDFC was more than the PNB.

59. Government securities to Total
Investmentof HDFC and PNB
(In Percentage)
YEAR Government Securities to Total Investments Government Securities to Total Investments
2014
.7800 .7800
2015
.7200 .8200
2016
.8100 .3000
2017
.7600 .7800
2018
.7800 .7600
2019
.8300 .8000
2020
3.4100 .8500
Total
1.1557 .7271

60. Group Statistics
Bank N Mean Std. Deviation Std. Error Mean
Government Securities to
Total Investments
HDFC
7 1.1557 .99467 .37595
PNB
7 .7271 .19068 .07207

62. YEAR CARHDFC CARPNB
2014
16.0700 11.5200
2015
16.7900 12.2100
2016
15.5300 11.2800
2017
14.5500 11.6600
2018
14.8200 9.2000
2019
17.1100 9.7300
2020
18.5200 14.1400
Total Mean
16.1986 11.3914

63. Table Paired Sample T Test
Paired Samples Statistics
Mean N Std. Deviation Std. Error Mean
Pair 1
CARHDFC
16.1986 7 1.39351 .52670
CARPNB
11.3914 7 1.62729 .61506

64. Paired Samples Test
Paired Differences t df Sig. (2-tailed)
Mean Std. Deviation Std. Error
Mean
95% Confidence Interval of the
Difference
Lower Upper
Pair 1
CARHDFC -
CARPNB
4.80714 1.38842 .52478 3.52306 6.09122 9.160 6 .000

65. • there is difference in mean value of PNB and HDFC bank. The mean
value of HDFC is 16.19 whereas mean value of PNB is 11.39 for
given years. This shows that HDFC is performing better than PNB.
• A per the results of paired t test tha value of t is 9.16 and value of p
is less than .01 which is significant at 99 percent confidence level.
So Result shows that there is significance differencebetween the
Capital Adequacy Ratio of PNB and HDFC bank.
• On the basis of Analysis researcher rejects Null hypothesis
• H0: There is no significant difference between the Capital
Adequacy Ratio of PNB and HDFC bank And accepts alternative
hypothesis
• H1: There is significant difference between the Capital Adequacy
Ratio of PNB and HDFC bank

66. LIQUIDITY RATIO
• The following ratios are used to measure the
liquidity.
• Liquid Assets Deposits (LA/ DD)
• Liquid Assets to Total Deposits (LA/TD).
• Liquid Assets to Total Assets (LA/TA)
• G-Sec to Total Assets (G-Secs/TA)
• Approved Securities/Total Assets(AS/TA)

67. Group Statistics
Bank N Mean Std. Deviation Std. Error Mean
Current ratio
HDFC
7 .0514 .01215 .00459
PNB
7 .0357 .01397 .00528

69. • Current ratio implies the financial capacity of a
company to clear off the current obligations by
using its current assets. Any current ratio lower
than 1 implies a negative financial performance.
Equal varaitaion are assumed as per the result of
T test. Test value is significat at 95% confidence
level, Value of (t=2.245,sig=.044). In table the
total mean value for HDFC bank is .05 and for
PNB this ratio is even lesser, it is .035 for both
banks current ratio is lesser than 1 , this indicates
that the financial performance of both banks are
negative. HDFC is performing better than PNB.

70. Group Statistics
Bank N Mean Std. Deviation Std. Error Mean
Liquid Assets to Total
Deposit Ratio
HDFC
7 9.3586 3.00149 1.13445
PNB
7 12.2657 1.92198 .72644

72. • The liquidity deposit ratio tells how much total liquidity
you have in hand out of Total Deposit receipt. Sample
Bank’s operational efficiency depend on inflow and
outflow of Cash. Inflow of Cash pertaining to a Bank
denotes all types of Deposits including Cash deposits.
Under the study, mean scores for these banks stood
above 9 and 12 it is above the prescribed limit of
RBI.As per the result of independent T-test equal
variances assumed, value of t test is not signifiacant
(t=-2.518, sig=.052). There is no significance difference
in liquid asset to total deposit ratio of HDFC and PNB.

73. • H0: There is no significant difference in
Liquidity Risk position between PNB and
HDFC bank.
• H2: There is significant difference in Liquidity
Risk position between PNB and HDFC bank.

74. Bank N Mean Std. Deviation Std. Error Mean
Current ratio
HDFC
7 .0514 .01215 .00459
PNB
7 .0357 .01397 .00528

76. • Current ratio implies the financial capacity of a
company to clear off the current obligations by
using its current assets. Any current ratio lower
than 1 implies a negative financial performance.
Equal varaitaion are assumed as per the result of
T test. Test value is significat at 95% confidence
level, Value of (t=2.245,sig=.044). In table the
total mean value for HDFC bank is .05 and for
PNB this ratio is even lesser, it is .035 for both
banks current ratio is lesser than 1 , this indicates
that the financial performance of both banks are
negative. HDFC is performing better than PNB.

77. Bank N Mean Std. Deviation Std. Error Mean
Liquid Assets to Total
Deposit Ratio
HDFC
7 9.3586 3.00149 1.13445
PNB
7 12.2657 1.92198 .72644

79. • The liquidity deposit ratio tells how much total liquidity
you have in hand out of Total Deposit receipt. Sample
Bank’s operational efficiency depend on inflow and
outflow of Cash. Inflow of Cash pertaining to a Bank
denotes all types of Deposits including Cash deposits.
Under the study, mean scores for these banks stood
above 9 and 12 it is above the prescribed limit of
RBI.As per the result of independent T-test equal
variances assumed, value of t test is not signifiacant
(t=-2.518, sig=.052). There is no significance difference
in liquid asset to total deposit ratio of HDFC and PNB.

80. Paired Samples Test
Paired Differences t df Sig. (2-tailed)
Mean Std. Deviation Std. Error
Mean
95% Confidence Interval of the
Difference
Lower Upper
Pair 1
Liquidity Ratio
HDFC -
Liquidity Ratio
PNB
.01571 .02225 .00841 -.00487 .03630 1.868 6 .111

81. •
• The liquidity ratio is the requirement whereby banks must hold an amount of high-
quality liquid assets that's enough to fund cash outflows for 30 days. Liquidity
ratios are measures a company's ability to meet its short-term financial
obligations. For a healthy business, a current ratio will generally fall between 1.5
and 3. If current liabilities exceed current assets i.e., the current ratio is below 1,
then the company may have problems meeting its short-term obligations. In case
of HDFC the mean value of Liquidity ratio is .05 and mean value of PNB is .03
which is lower than 1 which indicates the bad financial health of the bank. As per
paired T test the value of T is 1.868 at 95 percent confidence value the p value in
this case is greater than the required value at 95 percent confidence level .On the
basis of Analysis researcher rejects the Null hypothesis
• H0: There is no significant difference in Liquidity Risk position between PNB and
HDFC bank.
• And accepts alternative hypothesis
• H2:There is significant difference in Liquidity Risk position between PNB and HDFC
bank.

82. Group Statistics
Bank N Mean Std. Deviation Std. Error Mean
GNPA
HDFC
7 1.1171 .18373 .06944
PNB
7 12.1886 4.72485 1.78583

84. • The insight of table shows that the mean of
gross NPA of HDFC bank is 1.117 whereas in
case of PNB it is 12.1, which is much higher.
Assumption of homogeneity is not met, value
of t is significant at 95% confidence level (t=-
6.195, sig=.001). This shows that there is
significance difference between GNPA of HDFC
and PNB. PNB is much stressed than HDFC and
financial health of PNB is not sound.

85. • Net NPA is arrived at when the principal amount is
deducted by any payments received by the bank from
the borrower with respect to the loan and also includes
the amount the bank receives through its insurance
claims or provisions set for the loan.Value of Net NPA
for HDFC Bank is .3286 while the value of Net NPA for
PNB is 6.70, which is much higher than the HDFC bank.
• Assumption of homogeneity is not met. Value of t test
is significant(t=-5.951,sig=.001)
• From the above table it can be inferred that HDFC is
financially sounder than the PNB.

86. Correlation between Various
Variables of Risk Management

87. Relationship Between Variables Of Capital Adequacy Ratio Of HDFC Bank:
CARHDFC Debt Equity Ratio
HDFC
Financial Charges
Coverage Ratio
HDFC
Total Advance to
Total Asset Ratio
HDFC
Government
Securities to Total
Investments HDFC
CARHDFC
Pearson Correlation
1 -.508 .386 .451 .737*
Sig. (1-tailed)
.122 .196 .155 .029
Debt Equity Ratio
HDFC
Pearson Correlation
-.508 1 -.478 -.862** -.355
Sig. (1-tailed)
.122 .139 .006 .218
Financial Charges
Coverage Ratio
HDFC
Pearson Correlation
.386 -.478 1 .475 .623
Sig. (1-tailed)
.196 .139 .140 .068
Total Advance to
Total Asset Ratio
HDFC
Pearson Correlation
.451 -.862** .475 1 .444
Sig. (1-tailed)
.155 .006 .140 .159
Government
Securities to Total
Investments HDFC
Pearson Correlation
.737* -.355 .623 .444 1
Sig. (1-tailed)
.029 .218 .068 .159
*. Correlation is significant at the 0.05 level (1-tailed).
**. Correlation is significant at the 0.01 level (1-tailed).

88. Relationship Between Variables Of Capital Adequacy Ratio Of PNB:
CARPNB Debt Equity Ratio
PNB
Financial Charges
Coverage Ratio
PNB
Total Advance to
Total Asset Ratio
PNB
Government
Securities to Total
Investments PNB
CARPNB
Pearson Correlation
1 -.810* .493 .082 .155
Sig. (1-tailed)
.014 .130 .431 .370
Debt Equity Ratio
PNB
Pearson Correlation
-.810* 1 -.054 -.446 -.326
Sig. (1-tailed)
.014 .455 .158 .238
Financial Charges
Coverage Ratio PNB
Pearson Correlation
.493 -.054 1 -.397 .299
Sig. (1-tailed)
.130 .455 .189 .258
Total Advance to
Total Asset Ratio
PNB
Pearson Correlation
.082 -.446 -.397 1 -.289
Sig. (1-tailed)
.431 .158 .189 .265
Government
Securities to Total
Investments PNB
Pearson Correlation
.155 -.326 .299 -.289 1
Sig. (1-tailed)
.370 .238 .258 .265
*. Correlation is significant at the 0.05 level (1-tailed).
b. Listwise N=7

89. Table Correlation between Variables of Liquidity Ratio of HDFC
Correlationsc
Liquidity Ratio HDFC Current ratio HDFC Liquid Assets to Total
Deposit Ratio
Liquid Assets to Total
Assets Ratio (%)
Government
Securities to Total
Asset
Liquidity Ratio HDFC
Pearson Correlation
1 1.000** -.362 -.380 .180
Sig. (1-tailed)
.000 .213 .201 .350
Current ratio HDFC
Pearson Correlation
1.000** 1 -.362 -.380 .180
Sig. (1-tailed)
.000 .213 .201 .350
Liquid Assets to Total
Deposit Ratio
Pearson Correlation
-.362 -.362 1 1.000** -.789*
Sig. (1-tailed)
.213 .213 .000 .018
Liquid Assets to Total
Assets Ratio (%)
Pearson Correlation
-.380 -.380 1.000** 1 -.787*
Sig. (1-tailed)
.201 .201 .000 .018
Government
Securities to Total
Asset
Pearson Correlation
.180 .180 -.789* -.787* 1
Sig. (1-tailed)
.350 .350 .018 .018
**. Correlation is significant at the 0.01 level (1-tailed).
*. Correlation is significant at the 0.05 level (1-tailed).

90. Table Correlation between Variables of Liquidity Ratio of PNB
Liquidity Ratio PNB Current Ratio PNB Liquid Assets to
Total Deposit Ratio
Liquid Assets to
Total Assets Ratio
(%)
Government
Securities to Total
Asset
Liquidity Ratio PNB
Pearson Correlation
1 1.000** .208 .273 .429
Sig. (1-tailed)
.000 .327 .277 .168
Current Ratio PNB
Pearson Correlation
1.000** 1 .208 .273 .429
Sig. (1-tailed)
.000 .327 .277 .168
Liquid Assets to Total
Deposit Ratio
Pearson Correlation
.208 .208 1 .991** -.513
Sig. (1-tailed)
.327 .327 .000 .120
Liquid Assets to Total
Assets Ratio (%)
Pearson Correlation
.273 .273 .991** 1 -.464
Sig. (1-tailed)
.277 .277 .000 .147
Government
Securities to Total
Asset
Pearson Correlation
.429 .429 -.513 -.464 1
Sig. (1-tailed)
.168 .168 .120 .147
**. Correlation is significant at the 0.01 level (1-tailed).

91. Table Correlation between Variables of Credit Risk Ratio of HDFC
NETNPAHDFC GNPAHDFC ROAHDFC Return on capital HDFC
NETNPAHDFC
Pearson Correlation
1 .968** -.390 .827*
Sig. (1-tailed)
.000 .194 .011
GNPAHDFC
Pearson Correlation
.968** 1 -.227 .909**
Sig. (1-tailed)
.000 .312 .002
ROAHDFC
Pearson Correlation
-.390 -.227 1 -.154
Sig. (1-tailed)
.194 .312 .371
Return on capital HDFC
Pearson Correlation
.827* .909** -.154 1
Sig. (1-tailed)
.011 .002 .371

92. Table Correlation between Variables of Credit Risk Ratio of PNB
NETNPAPNB GNPAPNB ROAPNB Return on Capital PNB
NETNPAPNB
Pearson Correlation
1 .861** -.801* -.749*
Sig. (1-tailed)
.006 .015 .026
GNPAPNB
Pearson Correlation
.861** 1 -.875** -.864**
Sig. (1-tailed)
.006 .005 .006
ROAPNB
Pearson Correlation
-.801* -.875** 1 .920**
Sig. (1-tailed)
.015 .005 .002
Return on Capital PNB
Pearson Correlation
-.749* -.864** .920** 1
Sig. (1-tailed)
.026 .006 .002
**. Correlation is significant at the 0.01 level (1-tailed).
*. Correlation is significant at the 0.05 level (1-tailed).