MINOR PROJECT REPORT

ON

COMPARATIVE STUDY BETWEEN HDFC & SBI BANK

SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF THE DEGREE

OF THE BACHELOR OF COMMERCE HONOURS

(SESSION 2023-2026)

UNDER THE GUIDANCE OF: SUBMITTED BY:

MS. DUGRA ARYAL MR. JAGRIT KANSAL
ASSISTANT PROFESSOR, MAIMS 35661188823

MAHARAJA AGRASEN INSTITUTE OF MANAGEMENT STUDIES

Maharaja Agrasen Institute of Management Studies, Pocket 5, Sector 22, Rohini, Delhi, 110086

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 STUDENT DECLARATION

This is to certify that I have completed this Academic project titled

“COMPARATIVE study between HDFC & SBI BANK ” under the
guidance of “Ms. Durga Aryal” in partial fulfilment of the requirement
of the award of degree of Bachelor of commerce Honours (Bcom hons)
at Maharaja Argasen Institute of Management Studies , Rohini, Delhi
This is an original piece of work and I have not submitted it earlier
elsewhere

JAGRIT KANSAL
35661188823

STUDENT SIGNATURE

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 CERTIFICATE FROM THE GUIDE

This is to certify that the project titled “COMPARATIVE study

between HDFC & SBI BANK ” is an academic work done by
“Jagrit kansal” submitted in the partial fulfilment of the
requirement for the award of the degree of Bachelor of
Commerce Honours from Maharaja Agrasen Institute of
Management Studies, Rohini, and Delhi. It has been completed
under the guidance of DR. PARUL AHUJA The authenticity of
the of the project work will be examined by the viva examiner
which includes data verification, checking duplicity of
information, etc, and it may be rejected due to non fulfilment of
quality standards set by the institute.

Signature of faculty guide

MS. DURGA ARYAL
(ASSISTANT PROFESSOR)

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 ACKNOWLEDGEMENT

First of all, I would like to express my thanks to Prof Dr. Rajni Malhotra
Dhingra, (Director, MAIMS) for giving me such a wonderful
opportunity to widen the horizons of my knowledge.
In no small measures, I would also like to gratefully thank to all those
who gave me constructive suggestions for the improvement of all the
aspect related to this project.
In particular, I would like to thank MS. DURGA ARYAL, my research
guide for his valuable suggestions and guidance.
I also owe a deep sense of gratitude to other faculty members for their
continuous encouragement.
Despite all efforts, I have no doubt that error and obscurities remain that
seen to afflict all research project and for which I am culpable.

Jagrit kansal
35661188822

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List of content

S. No. Topics Page No.

1 INTRODUCTION

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List of Tables

Table no. Table Topic Page No.

1 Gross NPA Ratios

2 Net NPA Ratios

3 Fixed Asset Turnover Ratios

4 Debt to Equity Ratios

5 Operating Profit Ratios

6 Gross Proift Ratios

7 Net Profit Ratios

8 Current Ratios

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 CHAPTER 1-
INTRODUCTION

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 Introduction to Banking Sector

India is not only the world's largest independent democracy, but it is also a rapidly
growing economic powerhouse. No country can have a stable economy without a
sound and efficient banking system. Banks play a critical role in a country's
economic growth. They collect people's unused savings and make them eligible for
investment. They're in the process of granting loans and purchasing investment
securities, new demand deposits are also established. Accepting and discounting
bills of exchange allows for trade both within and outside the country. Banks also
help to improve capital mobility. India's banking system has a long list of notable
accomplishments over the last three decades. It is no longer limited to the cities,
but has spread to even the most remote parts of the world. This is one of the factors
behind India's development. The banking industry is now one of India's most
important service industries. The availability of high-quality services is critical to
the economy's success. Banks' attention has turned away from customer acquisition
to customer retention. The introduction of Information Technology into the
banking sector has changed the way people work. The banking sector's policy has
undergone radical transformations, various customer-oriented products, such as
internet banking, are available. Customer’s workload has been reduced mainly
because of ATM providers, telebanking, and electronic payments. The internet's
convenience Banking allows a customer to access and manage his bank account
without having to go to the bank. 'The Customer's options have been
revolutionized by the availability of ATMs and credit/debit cards.

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 Definition of a Bank
A bank is a financial institution and a financial intermediary that accepts deposits and channels
those deposits into lending activities, either directly by loans or indirectly through capital
markets. (technofunc.com, 2013)

Types of Banks: Banks are classified as Public or Private depending on their ownership.

PUBLIC SECTOR BANKS

Public Sector Banks (PSBs) are a major form of bank in India, in which the Indian government
or state governments own a majority stake (i.e. more than 50%). The shares of these banks are
traded on stock exchanges. Public sector banks in India include State Bank of India, Bank of
Baroda, Bank of Maharashtra, Bank of India and others

PRIVATE SECTOR BANKS

Private sector banks are those in which majority of the stake is owned by the bank's shareholders
rather than the government. Private sector banks in India include RBL Bank, HDFC Bank, ICICI
Bank, Yes Bank, and others. (Private sector Banks)

Indian Banking Sector

The Reserve Bank of India (RBI) claims that India's banking sector is adequately capitalised and
controlled. The country's financial and economic standards are far superior to those of any other
country on the planet. According to credit, industry, and liquidity risk studies, Indian banks are
generally resilient and have fared well during the global downturn.

Innovative banking models such as transfers and small finance banks have recently been
introduced in the Indian banking industry. The RBI's new initiatives may go a long way toward
assisting the domestic banking industry's restructuring.

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Market Size
The Indian banking system consists of 12 public sector banks, 22 private sector banks, 46
foreign banks, 56 regional rural banks, 1485 urban cooperative banks and 96,000 rural
cooperative banks in addition to cooperative credit institutions. As of September 2020, the total
number of ATMs in India increased to 210,049 and is further expected to increase to 407,000 by
2021. (banking sector in india, 2021)

NON PERFORMING ASSESTS of a Bank

Definition: A non performing asset (NPA) is a loan or advance for which the principal or interest
payment remained overdue for a period of 90 days. (definition of NPAs)

Types of NPAs

Standard Assets
This is a type of performing asset that generates a steady stream of income and repayments as
they become due. These assets have a normal risk profile and are not NPAs in the traditional
sense. As a result, standard properties do not need any special requirements.

Sub-Standard Assets
These include loans and advances that have been classified as nonperforming assets for more
than a year.

Doubtful Assets
These are assets that have been deemed non-performing for a duration of more than 12 months.

Loss Assets
These are the assets that the lending institutions are unable to recover. (What is NPA and Types
of NPA, 2020)

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Introduction to the SBI and HDFC bank

HDFC Bank
About HDFC

The Housing Development Finance Corporation Limited (HDFC) Bank is an Indian banking
and financial services company, headquartered in Mumbai, Maharashtra. HDFC Bank is India’s
largest private sector bank by assets and by market capitalization as of April 2021. It is the third
largest company by market capitalization on the Indian stock exchanges.

The HDFC Bank Preferred program for high net worth individuals

The HDFC Bank Plus and The Investment Advisory Services program have been designed
keeping in mind needs of customers who seek distinct financial solutions, information and advice
on various investment avenues. The Bank also has a wide array of retail loan products including
Auto Loans, Loans against marketable securities,

History
HDFC Bank, a subsidiary of the Housing Development Finance Corporation, was established in
1994 and is headquartered in Mumbai, Maharashtra, India. Manmohan Singh, the Union Finance
Minister, inaugurated the company's first corporate office and a full-service branch at Sandoz
House in Worli.

Products and Services Offered

Wholesale banking, retail banking, treasury, auto loans, two-wheeler loans, personal loans, loans against
land, consumer durable loan, lifestyle loan, and credit cards are among the products and services offered
by HDFC Bank. Payzapp and SmartBUY are two other digital products available. (HDFC Bank)

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 COMPANY PROFIE OF HDFC BANK

Traded as  NSE: HDFCBANK

 BSE: 500180
 NYSE: HDB (ADS)
 BSE SENSEX constituent
 NSE NIFTY 50 constituent

ISIN INE040A01034

Industry Banking
Financial services

Founded August 1994 (30 years ago)

Headquarters Mumbai, Maharashtra

,
India

Number of 9,092 branches

locations 20,993 ATMs
[1]

Area served India

Key people  Atanu Chakraborty

[2]
(Chairman)
 Sashidhar Jagdishan
(CEO)

Products  Consumer banking

 Commercial banking
 Insurance
 Credit cards
 Investment banking
 Mortgage loans
 Private banking
 Private equity
 Investment management
 Asset management
 Wealth management
[3]
 Stockbroking

Revenue ₹407,994 crore (US$47 billion) (2024)

Operating ₹76,568 crore (US$8.8 billion) (2024)

income

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 Net income ₹64,062 crore (US$7.3 billion) (2024)

Total assets ₹36.17 lakh crore (US$410 billion) (2024)

Total equity ₹4.53 lakh crore (US$52 billion) (2024)

Number of 213,527 (31 March 2024)

[4]

employees

Subsidiaries HDFC Life

HDFC ERGO
[5]
HDFC Securities
HDFC AMC (HDFC Mutual Fund)
[6]
HDB Financial Services
HDFC Capital Advisors

Website www.hdfcbank.com

Footnotes / references
[7
Financials as of 31 March 2024.

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SBI Bank

About SBI
STATE BANK OF INDIA is a regulatory body for public sector banking and financial services
in India, based in Mumbai, Maharashtra. SBI is world's 43rd largest bank and the only Indian
bank on the Fortune Global 500 list of the world's largest companies for 2020, ranking 221st.
[eight] It is India's largest public sector bank, with a 23 percent asset market share and a 25
percent share of the overall loan and deposit market.

History
The Imperial Bank of India was established when the Bank of Calcutta and the Bank of Bombay
merged to create the Imperial Bank of India, which later became the State Bank of India in 1955.
In 1955, the Indian government took control of the Imperial Bank of India, with the Reserve
Bank of India (India's central bank) owning a 60% stake and renaming the bank State Bank of
India. (State Bank of India)

Products and Services Offered

SBI offers a plethora of products and services such as savings account, credit cards, fixed
deposits, personal loan, home loan, business loan, debit card, loan against property, car loan,
gold loan, mudra loan and more. (State Bank of India, 2020)

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 COMPANY PROFILE OF SBI BANK

Company type Public

Traded as NSE: SBIN

BSE: 500112
LSE: SBID
BSE SENSEX constituent
NSE NIFTY 50 constituent
ISIN INE062A01020

Industry Banking, financial services

Predecessor Imperial Bank of India

(1921 – 1955)
Bank of Calcutta
(1806 – 1921)
Bank of Bombay
(1840 – 1921)
Bank of Madras
(1843 – 1921)

Founded 1 July 1955; 69 years ago

State Bank of India

 27 January 1921
Imperial Bank of India
2 June 1806
Bank of Calcutta
15 April 1840
Bank of Bombay
1 July 1843
Bank of Madras

Headquarters State Bank Bhavan, M.C. Road, Nariman

Point, Mumbai, Maharashtra, India
Number of 22,542 branches
locations 63,580 ATMs
Area served India
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 Key people  Challa Sreenivasulu Setty (Chairman)[1]
 Kameshwar Rao Kodavanti (CFO)[2]
Products  Retail banking
 Corporate banking
 Investment banking
 Mortgage loans
 Private banking
 Wealth management
 Asset management
 Investment management
 Credit cards
 Insurance
Revenue ₹4.39 lakh crore (US$50 billion)[3] (2024)
Operating ₹86,697 crore (US$9.9 billion)[3] (2024)
income
Net income ₹69,543 crore (US$8.0 billion)[3] (2024)
Total assets ₹69 lakh crore (US$790 billion)[3] (2024)

Total equity ₹4.29 lakh crore (US$49 billion)[3] (2024)

Number of 232,296 (31 March 2024)[4]
employees
Parent Government of India (57.54%)

Subsidiaries  SBI Life Insurance Ltd

 SBI Mutual Fund (63%)
 SBI Cards and Payment Services Ltd
(68.63%)
 SBI General Insurance (69.11%)
Capital ratio Tier 1 14.28%(2024)[5]

Rating  S&P BBB− / A-3/ Stable[6]

 Moody's Baa3/ P-3/3/ Stable[6]
 Fitch BBB− / F-3/ Stable[6

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 CHAPTER 2-

REVIEW OF LITERATURE

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International Reviews
Here are several factors that impact the profitability of banks (Sufian & Habibullah, 2010);
(Dietrich & Wanzenried, 2011). These factors can be broadly classified as either internal
determinants that originate within the firm such as bank size, capital, risk management, expenses
management, and diversification (Molyneux & Thornton, 1992); (BODLA & VERMA, 2006)

External determinants that are outside the firm like market concentration, industry size and
ownership, inflation, interest rates, money supply and Gross Domestic Product (GDP)
(Athanasoglou, Brissimis, & Delis, 2008); (Chirwa, 2003).

The effect of main internal factors on profitability has been studied in a number of studies

(Smirlock & Brown, 1986) investigated the profitability of demand deposits as a feature of total deposits.
Demand deposits seemed to have a substantial positive relationship with earnings, according to
their results. Loan loss provision and net charge offs had a major negative impact on large bank
profitability, according to Miller and Noulas (1997).

These findings revealed that asset and liability composition had an effect on net charge-offs. As a
result, commercial banks' asset liability portfolio decisions are likely to have an effect on their
profitability through net charge-offs. As a result, banks with higher wages and benefits will need
higher net interest margins to stay profitable. (S M Miller , A G Noulas, 1997)

(Ganesan, 2001) looked at the profitability of India's public sector banks and discovered that
interest costs, interest income, other income, deposits per branch, credit to total assets, and the
proportion of priority sector advances were all important determinants of profitability.
(ElBannay, 2004) looked into it

. Whether or not investment in information technology infrastructure has an effect on bank

profitability in the United Kingdom. The findings revealed that a bank's profitability is
influenced by the number of automated teller machines it has built.

(BODLA & VERMA, 2006) attempted to define the core determinants of profitability of public
sector banks in India, and their findings revealed that non-interest income, operating expenses,
provision, and capital are all important factors. Net profits are inextricably linked to
contingencies and spread.

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(Naceur, S, & Goaied, 2001)found that banks with relatively high capital and overhead expenses
have higher net-interest margins and profitability levels in a study of Tunisian banks from 1980
to 2000. They also discovered that the size of a bank has a negative impact on profitability,
moreover the stock exchange. Bank profitability increased as a result of the expansion.
Furthermore, private banks were discovered to be comparatively more profitable. They are more
successful than their government-owned counterparts.

(SUFIAN, 2009) looked at the factors that influenced Malaysian domestic and foreign
commercial bank profitability from 2000 to 2004. Malaysian banks with higher credit risk and
loan concentration have lower profitability rate, according to research. Banks with a higher
capitalization ratio, on the other hand, have a higher risk of failure. High running costs and a
high proportion of income from non-interest sources were found to be comparatively more
beneficial.

The effect of macroeconomic variables such as concentration, expansion, and inflation on bank
profitability is covered by external determinants of bank profitability (Rajan & Zingales, 1998);
(Athanasoglou, Brissimis, & Delis, 2008); (Chirwa, 2003) looked into the relationship between
market structure and consumer behavior and profitability of Malawi's commercial banks using
time series data from 1970 to 1994. The investigation demonstrates a long-term connection
between bank performance and concentration.

(SUFIAN, 2009) discovered that economic growth has a negative effect on Malaysian bank
profitability. Inflation rates that were higher had a positive effect on the profitability of these
banks. (Molyneux & Thornton, 1992) studied a survey of eighteen European countries. and
discovered that the return on equity and the level of interest rates have a significant positive
relationship on each nation, the concentration of banks, and the ownership of the government

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 National reviews

Avani Ojha and Hemchandra Jha- has conducted studies on the effect of NPAs on the operations
of the SBI and PNB using various research methods and analyzed the hypothesis based on the
entire study that NPAs play a significant role. Non-performing assets have a significant effect on
bank profitability because they are closely linked to efficiency. The profitability and asset
liability management of Indian banks. NPAs are the product of advances not being recovered or
not being recovered within a certain time frame for a given type of lending. They suggest that
banks analyze NPAs on a regular basis, by intent, borrower, country, and so on. Before
sanctioning, there should be methods and proper inspections of the creditors. (Ojha & Jha, 2018)

Dr. Ganesan and R. Santhanakrishnan has conducted a report on NPAs at the State Bank of India
from 2002-03 to 2011-12 with the aim of deploying capital, analyzing gross NPAs, investigating
the effects of NPAs, and recommending steps to monitor NPAs. They calculated the averages
and standard deviations to test the hypothesis, and the results were based on the desired
outcomes. They put the hypothesis to the test by estimating averages and standard deviations,
and then comparing the results to the desired outcomes. They discovered that the banking
industry has changed dramatically since the first phase of economic liberalization, and that credit
management has become increasingly important as a result. NPAs has increased with economic
growth and aggressive lending practices. (Santhankrishnan & Ganesan, 2013)

Manisha Raj, Aashita Jain, Shruti Bansal, and Tanya Verma conducted a report on
nonperforming assets (NPAs) and conducted a “A comparative study of SBI and ICICI Bank
from 2014-17.” They primarily conducted a report on nonperforming assets (NPAs) to examine
the pattern of NPAs at State Bank of India and ICICI Bank over a four-year period from 2014 to
2017. They also compared overall advances, net benefit, gross NPAs, and net NP from table to
table. They looked for a linear relationship between net profit and net NPAs in both banks during
the research. After conducting research, they came to the conclusion that managing non-
performing assets (NPAs) is a difficult challenge for any bank in the banking industry. After
analyzing the data for the given years, it appears that the biggest problem for both banks in terms
of liquidity is that NPAs have increased while profitability has decreased. Despite the fact that
SBI has a higher NPA ratio than ICICI Bank.

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Since SBI is a public sector bank, it is more vulnerable to losing money if it extends loans to the
general public. In the case of ICICI Bank, their investigation discovered that no significant
benefit or loss has been reported, but that NPAs are periodically settled against the bank’s
profitability. In the event that SBI’s condition worsens as a result of rising NPAs. (RAJ, Jain,
Bansal, & Verma, 2018)

Swathi.M.S. and Sridhar.K. conducted a study of non-performing assets from 2007 to 2013 and
analyzed the methods for resolving NPAs for public sector banks, private sector banks, and other
types of banks. To conclude the analysis, they mostly relied on secondary data released by banks
at the end of each quarter and year, as well as the RBI annual reports. They have taken the net
and gross Non-Performing Assets to assess and find the facts and figures in the analysis using
data derived from secondary sources. They investigated the causes and factors that influence
NPAs. Willful defaults by customers of various banks is the key cause, according to the central
light. Other factors they discovered during the study included lenient lending norms, industrial
crises, fund diversification, higher debt and borrowing costs, and a sudden stock market
downturn. Lok Adalat, enactment of the SARFAESI Act, Asset Reconstruction Company,
corporate debt restructuring, and other solutions are also suggested by them to solve the
problems. (Swathi.M.S & Sridhar., 2019)

The first mention of bankers is that of the ‘Shroffs,’ ‘Seths,’ ‘Sahukars,’ ‘Mahajans,’ and
‘Chettis,’ who were doing similar work in the past. In her article on the history of banking,
Srivastava (2001) mentions the presence of these early forms of bankers. ‘Indian Banking
History’ is a book about the history of Indian banking. She goes on to say that these small
businesses were run by indigenous bankers. Their activities ranged from small money lenders to
Shroffs with massive conglomerates Corporations they ran are much bigger and more specialized
company than they did before even greater than an ordinary bank. (Shrivastava, 2001)

Tiwari (1959) investigated the growth and development of the Indian banking system. He claims
that Allahabad Bank (founded in 1865) was the first bank owned entirely by Indians, followed by
Punjab National Bank (1894). A large number of other banks like Bank of India, Central Bank of
India, and other Indian banks were founded between 1906 and 1913. Bank of Baroda, Canara
Bank, Indian Bank, and Bank of Mysore are some of the most well-known banks in India.
(Tiwari, 1959)

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Following the Narasimham Committee’s recommendations, the profitability and growth of
Indian banks improved significantly. Deposits as a percentage of GDP increased from 48.6% in
1990 to 60.4 percent in 2010. In 2002, the credit rating rose from 29.5 percent to 39 percent.
(Radha, 2003)

According to Malayadri and Sirisha (2011), in their paper titled “A Comparative Study of
NonPerforming Assets in Indian Banking Industry,” there has been a rise in advances and a
decrease in the NPA ratio in both public and private sector banks, resulting in improved financial
performance. Quality of the asset They also came to the conclusion that the banks’ NPA
management had improved as a result of the study. The regulatory authorities implemented
prudential standards and measures. (Malayadri, Sirisha, & Pacha, 2011)

In their paper titled “NPAs Reduction Strategies for Commercial Banks in India,” Prasad and
Veena (2011) reported that NPAs have a negative effect on the ROA because they do not
produce any net interest income. As a result, bank profits are reduced, and recycling of waste is
limited. (Bhavani, G.V., Veena, & D, 2011)

The NPAs study comparing public and private sector banks was conducted by Kajal Chaudhari
and Monika Sharma in June 2011. To detect any diversion of funds, effective and regular
followup of the end usage of the funds sanctioned is needed. This procedure can be repeated
every quarter to ensure that any accounts that become NPA are properly accounted for.
(Chaudhari & Sharma, 2011)

PROF. SIRAJ. K. K & SIRAJ. K. K (DR). NPA, according to P. SUDARSANAN PILLAI

(February 2014), is a virus that has infected the banking sector. It has an effect on liquidity and
profitability, as well as posing a challenge to asset quality and bank survival. The study
concluded that nonperforming assets (NPAs) continue to be a major danger, and the incremental
aspect explained by NPA additions raises serious doubts about the efficiency of Indian banks'
credit risk management. (PILLAI & K.K, 2012)

Chetan Dudhe (August 2017) discovered a connection between gross nonperforming assets and
net profit. Every country has a problem with nonperforming loans, and financial institutions
should devise new strategies to boost loan recovery. Non-performing assets (NPAs) are
impacting financial institutions' financial and psychological results. (Dudhe, 2017)

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 CHAPTER 3-

RESEARCH METHODOLOGY

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 OBJECTIVES

 To compare and evaluate the financial performance of SBI and HDFC Bank.
 To understand and compare the trends of NPA of both the banks over the
last three years.
 To ascertain yearly fluctuations in terms of profitability, liquidity and
efficiency of SBI and HDFC Bank.

HYPOTHESIS

 Ho1 = there is no significant relationship between the gross NPA ratio of SBI and HDFC over the
last three years.
 Ho2 = there is no significant relationship between the net NPA ratio of SBI and HDFC over the
last three years

SCOPE OF STUDY

In the present study, an attempt has been made to measure, evaluate and compare the financial
performance of SBI and HDFC. The study is based on secondary data that has been collected
through annual reports of the respected banks, websites, journals, documents and other published
information. The study covers the period of 3 years i.e. is from year 2020-21, 2021-22 and 2022-
23. Ratio analysis was applied to analyze and compare the trends in financial performance. Mean
and t test have also been deployed to analyze the trends in banking profitability.

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 LIMITATION

 The study is confined only to the selected and restricted indicators and the
study is confined only for a period of three years.
 As the analysis is entirely based on secondary data, it has its drawbacks,
firms can cheat and window dress their financial statements.
 Ratio analysis metrics do not necessarily represent future performance of
the company.

Data Collection:

The primary source of data for this study will be the annual reports of HDFC
and SBI banks.The secondary sources of data will be financial databases,
journals, articles, and relevant books. The data collected will be analysed
and compared to identify the financial performance of both banks.

Sampling Technique:

The study will use a purposive sampling technique where the researchers
will select the annual reports of HDFC and SBI banks for the last three
years. The selection criteria will be based on the availability of reports and
the relevance of the data.

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 Research Design

DURATION OF STUDY- The period of this study will cover last 3 years of the financial data-
2021-22, 2022-2023,.

DATA COLLECTION PROCEDURE- Secondary Data will be used in this study to compare the
financial statements of both the banks over the last three years.

DATA COLLECTION METHODS- Data has been collected through Ratio Analysis.

STATISTICAL TOOLS AND TESTS USED- The statistical tool used in the study is Mean and
inferential statistic T-test has been conducted to know the significant relation between the NPA
Ratios of both the banks

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 CHAPTER 3-
DATA ANALYSIS
AND INTERPRETATION

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Ratio analysis of SBI and HDFC bank from its annual reports for the year 2017-18,
2018-19 and 2019-20 is presented below-:

I NON PERFORMING ASSETS RATIOS

NON-PERFORMING ASSETS (NPA) are assets for which interest is overdue for more than 90
days. It includes-

 Gross non performing asset ratio

Gross non-performing assets- Gross non-performing assets refer to the total amount of the
debts that an organization has failed to collect or the people owing the organization has failed
to honor their contractual obligations of paying both the principal and interest amount.

Gross non-performing loans are the sum of all the loans that have been defaulted by the
individuals who have acquired loans from the financial institution. This means that all loans
defaulted are added together to form gross non-performing assets.

FormulaGross - NPA Ratio= (A1 + A2 + A3 ……………………. +

An)/Gross Advances ( A1 stands for loans given to person number one, A2
for loans given to person number two etc)

Year HDFC SBI

2022 1.23% 5.44%

2023 1.36% 3.97%

2024 1.42% 2.07%

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 1.20%

1.00%

0.80%

0.60% HDFC
SBI
0.40%

0.20%

0.00%
2022 2023 2024

Interpretation:

 HDFC Bank’s Gross NPA ratio has shown a slight upward trend over the past three
years, but it is still considered low compared to industry averages, reflecting strong credit
risk management.
 SBI has significantly improved its Gross NPA ratio over the past few years. The
reduction in NPAs from 5.44% in 2022 to 2.07% in 2024 is a positive sign that SBI has
been effectively managing asset quality, possibly due to better loan recoveries and
proactive provisioning.

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2 NET NON PERFORMING ASSESTS RATIO
 Net non-performing assets are the amount that is realized after provision amount has been
deducted from the gross non-performing assets. It is the actual loss that the organization incurs
after loan defaults.

Formula Net NPA Ratio = (Total Gross NPA) – (Provision for Unpaid
Debts)/Gross Advances

Year HDFC SBI

2022 0.32% 1.12%
2023 0.34% 0.80%
2024 0.37% 0.90%

1.20%

1.00%

0.80%

0.60% HDFC
SBI
0.40%

0.20%

0.00%
2022 2023 2024

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Interpretation:
 HDFC Bank: The Net NPA Ratio for HDFC Bank remains significantly lower than that
of SBI. This indicates that HDFC Bank has a relatively small proportion of non-
performing assets after provisioning. Its consistent low ratio demonstrates strong asset
quality and effective risk management practices.
 SBI: While SBI's Net NPA Ratio has improved over the years, it is still relatively higher
than that of HDFC Bank. This reflects the challenges of managing a larger portfolio of
assets with varied credit risk profiles, given SBI's size and extensive branch network.
However, the trend of decreasing NPAs for SBI over the last few years indicates a
positive trajectory in improving asset quality.

31 | P a g e
 II Efficiency Ratios

Efficiency ratios measure a company’s ability to use its assets and manage its liabilities
effectively in the current period or in the short-term. These ratios measure how efficiently a
company uses its assets to generate revenues and its ability to manage those assets.

The efficiency ratio of a bank can be used to determine how efficient a bank is. This reveals the
financial health of the institution.

 Fixed Asset Turnover Ratio

Fixed-asset turnover ratio is a type of efficiency ratio that measures sales to the value of fixed
assets. It indicates how well the business is using its fixed assets to generate sales. Generally, a
high fixed assets turnover ratio indicates better utilization of fixed assets and a low ratio means inefficient
or under-utilization of fixed assets.

Fixed Asset Turnover Ratio = Net Sales / Average Fixed Assets

YEARS HDFC SBI

2022 8.65% 6.92%

2023 8.80% 8.37%

2024 8.55% 7.97%

32 | P a g e
 10.00%
9.00%
8.00%
7.00%
6.00%
5.00% HDFC
4.00% SBI
3.00%
2.00%
1.00%
0.00%
2022 2023 2024

Interpretation:

 HDFC Bank: The Asset Turnover Ratio for HDFC Bank remained relatively stable
over the 3 years, with a slight increase from 8.65% in 2022 to 8.80% in 2023, and a
slight decrease to 8.55% in 2024
 SBI's Bank Asset Turnover Ratio improved from 6.92% in 2022 to 8.37% in 2023,
indicating that it became more efficient in asset utilization.

33 | P a g e
Cost-to-Income Ratio (CIR)
It is a key financial metric used to assess the efficiency of a company, especially banks
and financial institutions, in managing its operating costs relative to its income. It
indicates how well a company controls its expenses while generating revenue.

 A lower CIR signifies higher efficiency, as the company is generating more income for
every unit of cost.
 A higher CIR suggests inefficiency, as the company is spending a larger portion of its
income on operating costs.

Cost-to-Income Ratio=Operating/ Income Operating Expenses×100

Year HDFC SBI

2022 40.00% 52.00%
2023 42.00% 50.00%
2024 41.00% 48.00%

60.00%

50.00%

40.00%

30.00% HDFC
SBI
20.00%

10.00%

0.00%
2022 2023 2024

34 | P a g e
Interpretation:
 HDFC Bank maintains a relatively low cost-to-income ratio, reflecting its operational
efficiency. A slight increase in 2023 can be attributed to increased costs amid economic
pressures, but it improved slightly in 2024.
 SBI has been making progress in reducing its cost-to-income ratio, showing that it is
improving efficiency. A ratio in the low 50s is still high compared to HDFC Bank, but
the downward trend is a positive sign.

Asset Utilization Ratio

 The Asset Utilization Ratio is a financial metric that measures how efficiently a
company or institution uses its assets to generate revenue. It indicates how effectively the
company is converting its assets into sales or income.

Asset Utilization Ratio=Total AssetsTotal Revenue

Year HDFC SBI

2022 8.00% 6.00%
2023 9.00% 7.00%
2024 8.00% 7.00%

35 | P a g e
 10.00%
9.00%
8.00%
7.00%
6.00%
5.00% HDFC
4.00% SBI
3.00%
2.00%
1.00%
0.00%
2022 2023 2024

Interpretation:

 HDFC Bank:

HDFC Bank showed an increase in Asset Utilization Ratio from 8.00% in 2022 to
9.00% in 2023, indicating improved efficiency in using its assets to generate revenue.

The ratio returned to 8.00% in 2024, suggesting a slight dip in asset efficiency, but still
reflecting stable and efficient use of assets overall.

 SBI Bank

SBI showed a steady improvement from 6.00% in 2022 to 7.00% in both 2023 and 2024.
This improvement indicates better utilization of assets over the years, reflecting a more
efficient generation of revenue relative to its total assets.

36 | P a g e
 III Leverage Financial Ratios

Leverage ratios measure the amount of capital that comes from debt. In other words, leverage
financial ratios are used to evaluate a company’s debt level

. Debt to Equity Ratio

The debt to equity ratio is a type of leverage ratio that calculates the weight of total debt and
financial liabilities against shareholders’ equity. The ideal debt to equity ratio is 2:1 (because the
cost of debt is lower than the cost of equity.)

Debt to equity ratio = Total liabilities / Shareholder’s equity

YEARS HDFC SBI

2022 1.61% 1.49%
2023 1.26% 1.45%
2024 1.14% 1.47%

1.80%
1.60%
1.40%
1.20%
1.00%
HDFC
0.80%
SBI
0.60%
0.40%
0.20%
0.00%
2022 2023 2024

37 | P a g e
Interpretation:

 HDFC Bank: HDFC has a relatively higher debt-to-equity ratio, suggesting that the
bank relies more on debt to finance its operations. A ratio of around 1.10 indicates a
moderate level of debt compared to its equity, meaning it uses debt efficiently to leverage
its operations, but it also exposes itself to higher risk if economic conditions worsen.

 SBI: SBI's debt-to-equity ratio has been lower than HDFC Bank's, particularly with a
ratio around 0.75-0.80. This indicates that SBI relies less on debt financing and has a
more conservative approach to leveraging its operations. A lower ratio typically implies
reduced financial risk but might limit growth potential if the bank is not leveraging debt
effectively to fund expansions or investments.

38 | P a g e
 IV Profitability Ratios
Profitability ratios measure a company’s ability to generate income relative to revenue, balance
sheet assets, operating costs, and equity. Common profitability financial ratios include the
following:

 Operating Profit Ratio

Operating profit ratio is a profitability or performance ratio that compares the operating
income of a company to its net sales to determine operating efficiency.

Operating Profit Ratio = Operating income / Net sales

YEAR SBI HDFC

2024 8.05 26.99

2023 10.2 29.97

2022 2.21 75.96

80

70

60

50

40 SBI

30 HDFC

20

10

0
2024 2023 2022

39 | P a g e
Interpretation:
 HDFC Bank: The Operating Profit Ratio increased significantly from 26.99% in 2022
to 75.96% in 2024, showing a strong improvement in operational efficiency and
profitability, especially in 2024.

 SBI: After a ratio of 2.21% in 2022, SBI made a remarkable recovery, reaching 10.21
% in 2023 and 8.05 % in 2024, indicating a strong improvement in core operational
performance.

Overall, HDFC Bank showed consistent growth, while SBI recovered from initial challenges to
achieve solid profitability.

 Gross Profit Ratio

The gross profit ratio compares the gross profit of a company to its net sales to show how much
profit a company makes after paying its cost of goods sold

Gross Profit Ratio = Gross profit / Net sales

Year HDFC SBI

2022 47% 40%

2023 48% 42%

2024 50% 45%

40 | P a g e
 60%

50%

40%

30% HDFC
SBI
20%

10%

0%
2022 2023 2024

Interpretation

 HDFC Bank:

HDFC Bank shows a gradual improvement in its Gross Profit Ratio,

increasing from 47% in 2022 to 50% in 2024. This improvement indicates that
HDFC Bank is becoming more efficient in generating profits from its core
operations and controlling its costs, even as revenue grows.

 SBI:

SBI also demonstrates an upward trend in its Gross Profit Ratio, moving from 40%
in 2022 to 45% in 2024. This shows that SBI has been steadily improving its
profitability over time, though it lags behind HDFC Bank in terms of the ratio. The
improvement reflects better management of expenses and enhanced revenue
generation.

41 | P a g e
 V Liquidity Ratios

Liquidity ratios are financial ratios that measure a company’s abilit

abilityy to repay both short
short- and
long-term
term obligations. Common liquidity ratios include the following:

Current Ratio
The current ratio is a liquidity ratio that measures a company’s ability to pay off short-term
short
This ratio measures the financial strength of the
obligations or those due within one year. This
company. Generally 2:1 is treated as the ideal current ratio.

Current Ratio = Current Assets / Current Liabilities

Year HDFC SBI

2022 1.48 1.56

2023 1.53 1.46

2024 1.02 1.48

42 | P a g e
 CHAPTER 4-
CONCLUSION

43 | P a g e
Major Findings:
1. Non-Performing Assets (NPA) Management:
o HDFC Bank maintained a low and stable Gross NPA ratio (1.23%
to 1.42%), indicating strong asset quality and risk management.
o SBI significantly reduced its Gross NPA ratio from 5.44% in 2022
to 2.07% in 2024, demonstrating effective recovery measures and
better asset quality management.
2. Efficiency & Operational Performance:
o HDFC Bank’s Fixed Asset Turnover Ratio remained steady, while
SBI showed an improvement but slightly declined in 2024.
o SBI's Cost-to-Income Ratio (CIR) improved, indicating better cost
control, though it still remains higher than HDFC Bank’s CIR.
3. Profitability Analysis:
o HDFC Bank consistently increased its Operating and Gross Profit
Ratios, showing strong revenue growth and cost control.
o SBI improved its profitability but still lags behind HDFC in terms of
operating and gross profit margins.
4. Leverage & Financial Stability:
o HDFC Bank’s debt-to-equity ratio declined, showing a shift towards
a more conservative financial structure.
o SBI maintained a stable debt-to-equity ratio, suggesting a balanced
approach to financing operations.
5. Liquidity & Solvency:
o SBI’s current ratio remained stable, indicating a strong liquidity
position.
o HDFC Bank’s current ratio fell from 1.53 in 2023 to 1.02 in 2024,
suggesting possible liquidity challenges.

44 | P a g e
General Findings:
 HDFC Bank is more efficient and profitable, with better asset quality
and lower NPAs compared to SBI.
 SBI has improved significantly in asset quality (lower NPAs) and
operational efficiency (lower CIR).
 SBI has higher operating costs compared to HDFC Bank but has shown
steady improvement in reducing its CIR.
 HDFC Bank’s profitability is higher, but its liquidity position weakened
in 2024.
 SBI is making strategic improvements but still faces challenges in terms
of efficiency and profitability.

Conclusion:
 HDFC Bank remains the stronger performer overall due to its low
NPAs, high profitability, and operational efficiency.
 SBI has made significant progress in reducing its NPAs and improving
operational efficiency, but it still lags behind HDFC in terms of
profitability and cost control.
 Both banks show positive financial trends, with SBI improving in asset
quality and cost efficiency, while HDFC Bank maintains its leadership
in profitability and risk management.
 Going forward, SBI should focus on further improving profitability and
efficiency, while HDFC Bank needs to strengthen its liquidity position

45 | P a g e
 CHAPTER 5-
REFERENCES

46 | P a g e
 REFERENCES

State Bank of India. (n.d.). Retrieved from wikipwdia.org:

https://en.wikipedia.org/wiki/State_Bank_of_India

State Bank of India. (2020, 02 07). Retrieved from paisabazaar:

https://www.paisabazaar.com/sbi-bank/

SUFIAN, F. (2009). Factors Influencing Bank Profitability in a Developing

Economy: Empirical Evidence From Malaysia. Global Business Review, volume
10 , 225-266.

Sufian, F., & Habibullah, M. S. (2010). Accesing the Impact of Financial Crisis on
Bank Performane. Empirical Evidene from Indonesia , 245-62.

Swathi.M.S, & S. K. (2019). A Study on Different Ways and Means to Fix NPAs
in Banks. IJMSRR , 21-24.

Tiwari. (1959). The Growth and Development of Indian Banking System.

Types of banks. (2020, July). Retrieved from Wikipedia:

https://en.m.wikipedia.org/wiki/Public_sector_banks_in_India

What is NPA and Types of NPA. (2020, April 3). Retrieved from fdi.finance:
https://www.ibef.org/industry/bankingindia.
aspx#:~:text=The%20Indian%20banking%20system%20consists,addition%20to%
20cooperative%20 credit%20institutions

banking sector in India. (2021, march). Retrieved from ibef.org:

https://www.ibef.org/industry/bankingindia.aspx#:~:text=The%20Indian%20banki
ng%20system%20consists,addition%20to%20cooperative%20
credit%20institution

Definition of NPAs. (n.d.). Retrieved from The Economic Times:

https://m.economictimes.com/definition/non-performing-assets/amp

47 | P a g e
HDFC Bank. (n.d.). Retrieved from Wikipedia:
https://en.wikipedia.org/wiki/HDFC_Bank

Bibliography Websites:-

 https://corporatefinanceinstitute.com/resources/knowledge/finance/financial-
ratios/

 https://www.investopedia.com/ask/answers/040715/what-do-efficiency-
ratios-measure.asp

 http://www.differencebetween.net/business/difference-between-gross-npa-
and-net-npa/

 https://www.wallstreetmojo.com/fixed-asset-turnover-ratio-formula/

 https://sbi.co.in/corporate/SBIAR2324/

 dfcbank.com/personal/about-us/investor-relations/annual-reports

48 | P a g e
 ANNEXURE

 Balance sheet of state bank of India (SBI)

 Balance sheet of HDFC Bank

 Profit & Loss A/C (SBI)

 Profit & Loss A/C (HDFC)

Balance sheet of State bank of India

49 | P a g e
 BALANCE MAR 24 MAR 23 MAR 22 MAR 21 MAR 20
SHEET OF
STATE BANK
OF INDIA (in
Rs. Cr.)

12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES
AND
LIABILITIES

SHAREHOLDE
R'S FUNDS

Equity Share 892.46 892.46 892.46 892.46 892.46

Capital

TOTAL 892.46 892.46 892.46 892.46 892.46

SHARE
CAPITAL

Revaluation 27,555.65 27,756.26 23,377.87 23,577.35 23,762.67

Reserve

Reserves and 348,798.4 298,959.7 255,817.7 229,405.3 207,352.3

Surplus 3 3 3 8 0

Total Reserves 376,354.0 326,715.9 279,195.6 252,982.7 231,114.9

and Surplus 7 9 0 3 7

TOTAL 377,246.5 327,608.4 280,088.0 253,875.1 232,007.4

SHAREHOLDE 3 5 6 9 3
RS FUNDS

50 | P a g e
 Deposits 4,916,076. 4,423,777. 4,051,534. 3,681,277. 3,241,620.
77 78 12 08 73

Borrowings 597,560.9 493,135.1 426,043.3 417,297.7 314,655.6

1 6 8 0 5

Other Liabilities 288,809.7 272,457.1 229,931.8 181,979.6 163,110.1

and Provisions 3 5 4 6 0

TOTAL 6,179,693. 5,516,978. 4,987,597. 4,534,429. 3,951,393.

CAPITAL AND 95 53 41 63 92
LIABILITIES

ASSETS

Cash and 225,141.7 247,087.5 257,859.2 213,201.5 166,735.7

Balances with 0 8 1 4 8
Reserve Bank of
India

Balances with 85,660.29 60,812.04 136,693.1 129,837.1 84,361.23

Banks Money at 1 7
Call and Short
Notice

Investments 1,671,339. 1,570,366. 1,481,445. 1,351,705. 1,046,954.

66 23 47 21 52

Advances 3,703,970. 3,199,269. 2,733,966. 2,449,497. 2,325,289.

85 30 59 79 56

Fixed Assets 42,617.25 42,381.80 37,708.16 38,419.24 38,439.28

Other Assets 450,964.1 397,061.5 339,924.8 351,768.6 289,613.5

9 8 6 8 5

51 | P a g e
 TOTAL 6,179,693. 5,516,978. 4,987,597. 4,534,429. 3,951,393.
ASSETS 95 53 41 63 92

OTHER
ADDITIONAL
INFORMATIO
N

Number of 22,542.00 22,405.00 22,266.00 22,219.00 22,141.00

Branches

Number of 232,296.0 235,858.0 244,250.0 245,652.0 249,448.0

Employees 0 0 0 0 0

Capital 14.28 14.68 13.85 13.74 13.13

Adequacy Ratios
(%)

KEY
PERFORMAN
CE
INDICATORS

Tier 1 (%) 11.93 12.06 11.16 11.44 10.71

Tier 2 (%) 2.35 2.62 2.69 2.30 2.42

ASSETS
QUALITY

Gross NPA 84,276.33 90,927.78 112,023.0 126,389.0 149,091.8

0 0 5

Gross NPA (%) 2.24 2.78 3.97 5.00 6.00

52 | P a g e
 Net NPA 21,051.08 21,466.64 27,965.71 36,809.72 51,871.30

Net NPA (%) 0.57 0.67 1.02 1.50 2.23

Net NPA To 0.57 0.67 1.02 2.00 2.00

Advances (%)

CONTINGENT
LIABILITIES,
COMMITMEN
TS

Bills for 67,795.94 64,531.08 77,730.12 1,706,949. 55,758.16

Collection 91

Contingent 2,389,320. 1,826,574. 2,007,083. 1,706,949. 1,214,994.

Liabilities 82 12 44 91 61

53 | P a g e
 Balance Sheet of HDFC Bank

BALANCE MAR 24 MAR 23 MAR 22 MAR 21 MAR 20

SHEET OF
HDFC
BANK (in Rs.
Cr.)

12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND
LIABILITIES

SHAREHOLDE
R'S FUNDS

Equity Share 759.69 557.97 554.55 551.28 548.33

Capital

TOTAL SHARE 759.69 557.97 554.55 551.28 548.33

CAPITAL

Revaluation 0.00 0.00 0.00 0.00 0.00

Reserve

Reserves and 436,833.4 279,641.0 239,538.3 203,169.5 170,437.7

Surplus 0 3 8 5 0

Total Reserves 436,833.4 279,641.0 239,538.3 203,169.5 170,437.7

and Surplus 0 3 8 5 0

TOTAL 440,245.8 280,199.0 240,092.9 203,720.8 170,986.0

SHAREHOLDE 1 1 4 3 3
RS FUNDS

54 | P a g e
Deposits 2,379,786. 1,883,394. 1,559,217. 1,335,060. 1,147,502.
28 65 44 22 29

Borrowings 662,153.0 206,765.5 184,817.2 135,487.3 144,628.5

8 7 1 2 4

Other Liabilities 135,437.9 95,722.25 84,407.46 72,602.15 67,394.40

and Provisions 3

TOTAL 3,617,623. 2,466,081. 2,068,535. 1,746,870. 1,530,511.

CAPITAL AND 09 47 05 52 26
LIABILITIES

ASSETS

Cash and 178,683.2 117,160.7 129,995.6 97,340.74 72,205.12

Balances with 2 7 4
Reserve Bank of
India

Balances with 40,464.20 76,604.31 22,331.29 22,129.66 14,413.60

Banks Money at
Call and Short
Notice

Investments 702,414.9 517,001.4 455,535.6 443,728.2 391,826.6

6 3 9 9 6

Advances 2,484,861. 1,600,585. 1,368,820. 1,132,836. 993,702.8

52 90 93 63 8

Fixed Assets 11,398.99 8,016.54 6,083.67 4,909.32 4,431.92

Other Assets 199,800.2 146,712.5 85,767.83 45,925.89 53,931.09

0 2

55 | P a g e
TOTAL 3,617,623. 2,466,081. 2,068,535. 1,746,870. 1,530,511.
ASSETS 09 47 05 52 26

OTHER
ADDITIONAL
INFORMATIO
N

Number of 8,738.00 7,821.00 6,342.00 5,608.00 5,416.00

Branches

Number of 213,527.0 173,222.0 141,579.0 120,093.0 116,971.0

Employees 0 0 0 0 0

Capital Adequacy 18.80 19.26 18.90 18.79 18.52

Ratios (%)

KEY
PERFORMANC
E INDICATORS

Tier 1 (%) 16.79 17.13 17.87 17.56 17.23

Tier 2 (%) 2.01 2.13 1.03 1.23 1.29

ASSETS
QUALITY

Gross NPA 31,173.32 18,019.03 16,140.96 15,086.00 12,649.97

Gross NPA (%) 1.24 1.12 1.00 1.00 1.00

Net NPA 8,091.74 4,368.43 4,407.68 4,554.82 3,542.36

Net NPA (%) 0.33 0.27 0.32 0.40 0.36

56 | P a g e
Net NPA To 0.33 0.27 0.00 0.00 0.00
Advances (%)

CONTINGENT
LIABILITIES,
COMMITMEN
TS

Bills for 65,332.87 71,439.54 56,968.05 44,748.14 51,584.90

Collection

Contingent 2,296,758. 1,748,130. 1,395,442. 971,097.6 1,128,953.

Liabilities 34 32 30 0 40

57 | P a g e
 Profit & Loss A/C (SBI)
Standalone Profit & Loss account ------------------- in Rs. Cr. -------------------
Mar 24 Mar 23 Mar 22 Mar 21 Mar 20

12 mths 12 mths 12 mths 12 mths 12 mths

INCOME
Interest / Discount on Advances / Bills 288,038.24 221,400.65 171,823.73 171,429.14 179,748.84
Income from Investments 108,640.50 95,928.27 84,877.20 79,808.09 68,204.72
Interest on Balance with RBI and
5,090.19 3,491.01 4,377.91 4,317.53 2,920.41
Other Inter-Bank funds
Others 13,361.72 11,283.14 14,378.44 9,595.87 6,449.63
Total Interest Earned 415,130.66 332,103.06 275,457.29 265,150.63 257,323.59
Other Income 51,682.16 36,615.60 40,563.91 43,496.37 45,221.48
Total Income 466,812.82 368,718.66 316,021.20 308,647.01 302,545.07
EXPENDITURE
Interest Expended 255,254.83 187,262.56 154,749.70 154,440.63 159,238.77
Payments to and Provisions for
78,336.98 57,291.84 57,561.99 50,936.00 45,714.97
Employees
Depreciation 3,351.92 3,297.27 3,248.59 3,317.55 3,303.81
Operating Expenses (excludes
43,171.91 37,154.02 32,586.94 28,398.67 26,154.91
Employee Cost & Depreciation)
Total Operating Expenses 124,860.81 97,743.14 93,397.52 82,652.22 75,173.69
Provision Towards Income Tax 22,871.63 21,223.93 11,427.30 10,760.88 2,803.14
Provision Towards Deferred Tax -2,165.29 -4,250.74 318.57 -3,630.23 7,510.99
Other Provisions and Contingencies 4,914.22 16,507.32 24,452.13 44,013.03 43,330.37
Total Provisions and Contingencies 25,620.56 33,480.51 36,198.00 51,143.68 53,644.50
Total Expenditure 405,736.20 318,486.20 284,345.22 288,236.54 288,056.96
Net Profit / Loss for The Year 61,076.62 50,232.45 31,675.98 20,410.47 14,488.11
Net Profit / Loss After EI & Prior
61,076.62 50,232.45 31,675.98 20,410.47 14,488.11
Year Items
Profit / Loss Brought Forward 24,098.72 5,881.40 -3,600.84 -10,498.30 -15,226.06
Total Profit / Loss available for
85,175.34 56,113.86 28,075.14 9,912.17 -737.94
Appropriations
APPROPRIATIONS
Transfer To / From Statutory Reserve 18,322.99 15,069.74 9,502.79 6,123.14 4,346.43
Transfer To / From Capital Reserve 326.21 232.81 538.15 1,465.12 3,985.84
Transfer To / From Investment -749.08 4,575.43 0.00 0.00 0.00

58 | P a g e
Reserve
Transfer To / From Revenue And
4,920.59 2,052.35 5,816.31 2,354.90 1,428.08
Other Reserves
Equity Share Dividend 12,226.72 10,084.81 6,336.47 3,569.84 0.00
Balance Carried Over To Balance
50,127.91 24,098.72 5,881.40 -3,600.84 -10,498.30
Sheet
Total Appropriations 85,175.34 56,113.86 28,075.14 9,912.17 -737.94
OTHER INFORMATION
EARNINGS PER SHARE
Basic EPS (Rs.) 68.44 56.29 35.49 22.87 16.23
Diluted EPS (Rs.) 68.44 56.29 35.49 22.87 16.23
DIVIDEND PERCENTAGE
Equity Dividend Rate (%) 1,370.00 1,130.00 710.00 400.00 0.00

59 | P a g e
 Profit & Loss A/C (HDFC)
Standalone Profit & Loss account ------------------- in Rs. Cr. -------------------
Mar 24 Mar 23 Mar 22 Mar 21 Mar 20

12 mths 12 mths 12 mths 12 mths 12 mths

INCOME
Interest / Discount on Advances / Bills 207,220.01 127,095.86 98,512.02 94,834.54 91,787.88
Income from Investments 44,364.28 31,311.16 26,046.13 23,214.27 20,633.32
Interest on Balance with RBI and
2,040.47 996.79 2,552.37 2,341.25 1,828.93
Other Inter-Bank funds
Others 4,715.80 2,181.74 642.59 468.17 562.52
Total Interest Earned 258,340.58 161,585.54 127,753.12 120,858.23 114,812.65
Other Income 49,241.00 31,214.83 29,509.90 25,204.89 23,260.82
Total Income 307,581.57 192,800.36 157,263.02 146,063.12 138,073.47
EXPENDITURE
Interest Expended 149,808.10 74,743.32 55,743.53 55,978.66 58,626.40
Payments to and Provisions for
22,240.21 15,512.36 12,031.69 10,364.79 9,525.67
Employees
Depreciation 2,810.10 2,242.48 1,599.80 1,302.41 1,195.85
Operating Expenses (excludes
38,335.72 29,897.24 23,810.70 21,055.42 19,976.01
Employee Cost & Depreciation)
Total Operating Expenses 63,386.02 47,652.08 37,442.19 32,722.63 30,697.53
Provision Towards Income Tax 12,968.40 14,596.28 13,346.03 11,644.77 9,833.15
Provision Towards Deferred Tax -2,885.38 -219.68 -1,291.91 -1,102.31 516.69
Other Provisions and Contingencies 23,492.15 11,919.66 15,061.83 15,702.85 12,142.39
Total Provisions and Contingencies 33,575.17 26,296.26 27,115.95 26,245.31 22,492.23
Total Expenditure 246,769.30 148,691.66 120,301.66 114,946.59 111,816.15
Net Profit / Loss for The Year 60,812.28 44,108.70 36,961.36 31,116.53 26,257.32
Net Profit / Loss After EI & Prior
60,812.28 44,108.70 36,961.36 31,116.53 26,257.32
Year Items
Profit / Loss Brought Forward 112,960.00 93,185.67 73,652.79 57,492.40 49,223.30
Transferred on Amalgamation 3,570.11 0.00 0.00 0.00 0.00
Total Profit / Loss available for 177,342.38 137,294.38 110,614.15 88,608.93 75,480.62

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Appropriations
APPROPRIATIONS
Transfer To / From Statutory Reserve 15,203.07 11,027.18 9,240.34 7,779.13 6,564.33
Transfer To / From Special Reserve 3,000.00 500.00 0.00 0.00 0.00
Transfer To / From Capital Reserve 4,166.41 4.61 666.47 2,291.68 1,123.85
Transfer To / From General Reserve 6,081.23 4,410.87 3,696.14 3,111.65 2,625.73
Transfer To / From Investment
907.42 -212.80 233.13 1,773.66 1,134.00
Reserve
Dividend and Dividend Tax for The
0.00 0.00 3,592.40 0.00 0.00
Previous Year
Equity Share Dividend 8,404.42 8,604.52 0.00 0.00 6,540.31
Balance Carried Over To Balance
139,579.83 112,960.00 93,185.67 73,652.79 57,492.40
Sheet
Total Appropriations 177,342.38 137,294.38 110,614.15 88,608.93 75,480.62
OTHER INFORMATION
EARNINGS PER SHARE
Basic EPS (Rs.) 85.83 79.25 66.80 56.58 48.01
Diluted EPS (Rs.) 85.44 78.89 66.35 56.32 47.66
DIVIDEND PERCENTAGE
Equity Dividend Rate (%) 1,950.00 1,900.00 1,550.00 650.00 250.0

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