finanial analysis of hdfc bank

8/22/2019 finanial analysis of HDFC bank

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Financial Analysis ofHDFC Bank

By:

Ruchita Agarwal

PGFB 1244

Housing Development Finance Corporation Bank


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About The Company

Hasmukh Bhai Parekhis the founder of HDFC Bank.

The bank was incorporated in August 1994, in the name of HDFC

Bank Limited, with its registered office in Mumbai.

The Bank started its operations as scheduled Commercial Bank inin January 1995.

It was the first to receive an in-principle approval from RBI to

set up a Bank in private sector, as part of the RBIs liberalization

of the Indian Banking Industry in 1994.

Listed in BSE, NSE, NYSE.


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Major Functions of HDFC Bank

Retail Banking Services

Wholesale Banking Services

Treasury Operations


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Network


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Financial Analysis

Financial Analysis refers to an assessment of the viability,

stability and profitability of a business.

Purpose to do Financial Analysis

To know the earning capacity or profitability.

To know the financial strengths.

To know the trend of business.

To know the efficiency of management.

To provide the useful information to management.


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Ratio Analysis

Ratios are well known and most widely used tools of

financial analysis.

A ratio gives the mathematical relationship between one

variable and another.

Accounting ratios are relationships, expressed in

quantitative terms between figures which have a cause

and effect relationship or which are connected with each

other in some manner or the other.


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Current Ratio

A liquidity ratio that measures a company's ability to pay short-termobligations. The Current Ratio formula is:

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

Mar '13 Mar '12 Mar '11 Mar '10 Mar '09

Current Ratio

Current Ratio


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Earning Per Share

The portion of a company's profit allocated to each outstanding share ofcommon stock. Earnings per share serves as an indicator of a

company's profitability.

0

10

20

3040

50

60

70

80

90


Earning Per Share

Earning Per Share


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Dividend Per Share

Dividend per share (DPS) is the total dividends paid out over an entireyear divided by the number of outstanding ordinary shares issued.

0

2

4

6

8

10

12

14

16

18


Dividend Per Share

Dividend Per Share


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Net Profit Ratio

0

2

4

6

8

10

12

14

16

18


Net Profit Ratio

Net Profit Ratio

It measures how much out of every dollar of sales a company actuallykeeps in earnings.


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Credit Deposit Ratio

The portion of loans generated by banks from the deposit received.Credit deposit ratio is a tool used to study the liquidity position of the

bank.

A high ratio shows that there is more amounts of liquid cash with the bank

to met its clients cash withdrawals.

0

10

20

3040

50

60

70

80

90





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Learning Outcomes

How to maintain the statements.

Importance of Financial statements in a company.

Importance of Ratio.

And the impact of Ratio on working of the company.

Know about the banking terms.

Services given by the Bank.


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Suggestions & Recommendations

As a result they should do decline in average outstanding share and

increase its net income so that EPS will increase.

We can see that in 2011 Dividend is highest but after that they fall

down and unable to reach that point so company should increase the

dividend decrease the number of shares.

Credit Deposit ratio of HDFC Bank in 2013 was 35.99% that meansbank is not earning an optimum return , HDFC Bank should focus on

increasing the customer deposits so that it can increase its Credit

Deposit Ratio and make it stability like it did in last four years from

2009 to 2012.


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Net profit Rs.6,726 crore. An increase of 30.2%

compared to the previous year.

Balance sheet size: Rs 400,332 crore. An

increase of 18.5% compared to the previousyear.

Total deposits: Rs 296,247 crore. An increase of

20.1% compared to the previous year.

Total advances: Rs 239,721 crore. An increaseof 22.7% compared to the previous year.

Highlights


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finanial analysis of hdfc bank

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