CHAPTER 1 : A STUDY ON FINANCIAL PERFORMANCE OF HDFC

BANK AND ICICI BANK

INTRODUCTION

HDFC Bank and ICICI Bank are two of the largest private sector banks in India, both playing
crucial roles in the country's financial sector. HDFC Bank, established in 1994, has grown
rapidly to become one of India's leading banks, known for its extensive branch network,
innovative products, and excellent customer service. Similarly, ICICI Bank, founded in 1994
as well, has established itself as a prominent player in the Indian banking industry, offering
a wide range of financial products and services to its Both HDFC Bank and ICICI Bank
provide traditional banking services such as savings accounts, current accounts, loans, and
investments, catering to the diverse needs of individual and corporate customers. They have
leveraged technology to offer convenient banking solutions, including internet banking,
mobile banking, and digital payment platforms, enhancing accessibility and efficiency for
their customers. Moreover, HDFC Bank and ICICI Bank have expanded their presence
beyond India, with operations and subsidiaries in various countries, offering international
banking services and catering to the needs of non-resident Indians and global businesses. In
addition to core banking services, both banks offer a range of specialized financial products
such as insurance, mutual funds, wealth management, and investment banking services. They
have dedicated teams of professionals to provide personalized financial advice and solutions
to meet the unique requirements of their clients. HDFC Bank and ICICI Bank are renowned
for their extensive branch networks, spanning across urban and rural areas, ensuring
accessibility to banking services for a wide range of customers. This expansive reach plays a
crucial role in promoting financial inclusion and empowerment across India. HDFC Bank
and ICICI Bank offer a diverse range of products and services tailored to meet the diverse
needs of their customers. From basic savings and current accounts to specialized financial
products such as loans, insurance, investment options, and wealth management services,
these banks cater to various financial requirements. HDFC Bank and ICICI Bank have been
pioneers in leveraging technology to enhance banking operations and customer experience.
They offer advanced digital banking platforms, including internet banking, mobile banking
apps, and digital payment solutions, making banking convenient and efficient for their
customer. With a focus on innovation, HDFC Bank and ICICI Bank have introduced several
ground breaking initiatives in the banking sector. These include initiatives such as instant
account opening, contactless payments, and personalized banking solutions, setting new
benchmarks for customer service and satisfaction. Both banks have a strong commitment to

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compliance and risk management, ensuring the safety and security of their customers' funds
and data. They adhere to stringent regulatory standards and implement robust internal
controls to mitigate financial risks effectively. HDFC Bank and ICICI Bank have expanded
their presence beyond the borders of India, establishing subsidiaries and branches in various
countries. This global footprint enables them to serve the banking needs of non-resident
Indians, multinational corporations, and international clients, contributing to India's growing
influence in the global financial landscape. Both banks have earned reputations for their
strong corporate governance practices, transparent operations, and ethical conduct. They
prioritize integrity, accountability, and fairness in all their dealings, earning the trust and
confidence of their stakeholders. HDFC Bank and ICICI Bank have demonstrated resilience
and adaptability in navigating various economic challenges and market fluctuations over the
years. Their robust business models, strategic vision, and agility have enabled them to sustain
growth and profitability amidst evolving market dynamics. As leaders in the Indian banking
sector, HDFC Bank and ICICI Bank continue to play instrumental roles in driving economic
growth, fostering financial inclusion, and shaping the future of banking in India. Their
relentless pursuit of excellence and commitment to innovation position them as cornerstones
of India's financial system, poised to navigate future opportunities and challenges with
resilience and foresight.

➢ 1.1 OVERVIEW OF HDFC BANK

HDFC Bank, established in 1994, has emerged as one of the leading private sector banks in
India, renowned for its robust financial performance, extensive branch network, and
innovative product offerings. With a strong focus on customer-centricity and technological
innovation, HDFC Bank has become synonymous with trust, reliability, and excellence in
the Indian banking industry. The bank offers a comprehensive range of financial products
and services, including savings accounts, current accounts, fixed deposits, loans, credit cards,
investment and wealth management solutions, and digital banking platforms. HDFC Bank's
commitment to superior customer service is evident through its personalized banking
experience, competitive interest rates, quick loan approvals, and convenient digital banking
solutions. Moreover, HDFC Bank has played a pivotal role in promoting financial inclusion
and empowering millions of individuals and businesses across India through its extensive
branch network and innovative initiatives. With a strong emphasis on corporate governance,
risk management, and compliance, HDFC Bank has consistently delivered sustainable
growth and value to its shareholders while maintaining its position as a market leader in the

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 Indian banking sector. Overall, HDFC Bank's unwavering dedication to excellence, coupled
with its customer-centric approach and robust business fundamentals, underscores its status
as a stalwart of India's financial landscape.

• VISION:-

To be the premiere financial partner in ensuring sustainable housing and living standards.

• MISSION:-

Committed to provide financial solutions for sustainable living and assist entrepreneurs in
value additional.

• VALUE:-

The goal of HDFC Bank is to become a world - class Indian bank. It aims to accomplish two
things: First and foremost, to be the preferred banking service provider for the target retail
and wholesale customer categories. The second goal is to generate profitable growth that is
in line with the bank's risk appetites. The bank is dedicated to upholding the highest ethical
standards, professional integrity, corporate governance, and regulatory compliance possible.

❖ 1.1.1 PRODUCT AND SERVICES:-

HDFC Bank provides a number of products and services such as wholesale banking, retail
banking, treasury, auto loans, two-wheeler loans, and personal loans, loans against property,
consumer durable loan, lifestyle loan and credit cards.

1. Whole sale banking:-

Wholesale banking is the provision of services by banks to larger customers or organizations
such as mortgage brokers, large corporate clients, mid-sized companies, real estate

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 developers and investors, international trade finance businesses, institutional customers (such
as pension funds and government entities/agencies), and services offered to other banks or
other financial institutions. Wholesale finance refers to financial services conducted between
financial services companies and institutions such as banks, insurers, fund managers, and
stockbrokers

WHOLESALE BANKING PRODUCT AND SERVICES

1. Corporate Finance: Solutions for raising finance through structured and specialized
products.
2. Cash Management Services: Streamlining resources to optimize cash flow and
liquidity management.
3. Trade Finance Services: Facilitating international trade through services like foreign
inward remittance and collection of export bills.
4. Investment Banking: Offering project appraisal, structured finance, mergers and
acquisitions, and corporate advisory services.
5. Treasury Services: Managing forex and interest rate risks, along with providing
investment options.
6. Structured Loans: Tailored lending solutions to meet specific business requirements.
7. Export Credit: Providing pre-shipment and post-shipment financing options to
exporters.
8. Clearing Sub-membership: Services for financial institutions to facilitate clearing
operations.
9. ATM Tie-ups: Partnership opportunities for other banks to expand their ATM
network.
10. Custodial & Depository Services: Safekeeping of securities and facilitating
transaction settlements.
11. SGL Maintenance: Managing government securities in the Subsidiary General
Ledger.
12. Corporate Internet Banking (ENet): Secure online platform for corporate banking
transactions.
13. Financial Institutions Group (FIG): Banking solutions for financial service
providers.
14. Trusts: Services tailored for the unique needs of trusts, including investment and
custodial services.
15. Real Estate Finance: Financing solutions for real estate developers and investors.

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2. Retail Banking:-
Retail banking, also known as consumer banking or personal banking, is the provision of
services by a bank to the general public, rather than to companies, corporations or other
banks, which are often described as wholesale banking. Banking services which are regarded
as retail include provision of savings and transactional accounts, mortgages, personal loans,
debit cards, and credit cards. Retail banking is also distinguished from investment banking
or commercial banking. It may also refer to a division or department of a bank which deals
with individual customers

RETAIL BANKING PRODUCTS AND SERVICES

1. Savings Accounts: Various types of savings accounts for students, entrepreneurs, salaried
employees, and senior citizens.
2. Current Accounts: Multiple current account options for different business needs,
allowing for numerous transactions and easy fund withdrawal.
3. Personal Loans: Quick personal loans with attractive interest rates and minimal
documentation.
4. Home Loans: Home financing options with automated repayment and competitive interest
rates.
5. Car Loans: Up to 100% funding for new car purchases with flexible loan tenures.
6. Education Loans: Financial support for students studying in India and abroad, with tax
benefits under section 80(E).
7. Gold Loans: Loans against gold with flexible interest rates and minimal documentation.
8. Business Loans: Loans up to ₹50 lakh for unique business needs, with easy documentation
and attractive interest rates.
9. Credit Cards: A variety of credit cards with exclusive offers and rewards.
10. Debit Cards: Debit cards linked to savings or current accounts for easy access to funds.
11. Fixed Deposits: Fixed deposit schemes with high returns and preferential rates for senior
citizens.
12. Recurring Deposits: Recurring deposit schemes with flexible tenure options.
13. Demat Accounts: Services for dematerialization of securities for investment and trading.
14. Safe Deposit Lockers: Secure lockers for the safekeeping of valuables.
15. Net Banking: Online banking services for convenient management of finances.

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 Credit card is a payment card issued to users (cardholders) to enable the cardholder to pay a
merchant for goods and services based on the cardholder's accrued debt (i.e., promise to the
card issuer to pay them for the amounts plus the other agreed charges). The card issuer 6
(usually a bank or credit union) creates a revolving account and grants a line of credit to the
cardholder, from which the cardholder can borrow money for payment to a merchant or as a
cash advance. There are two credit card groups: consumer credit cards and business credit
cards. Most cards are plastic, but some are metal cards (stainless steel, gold, palladium,
titanium), and a few gemstone-encrusted metal cards.

Subsidiaries:-

1. HDFC Securities:
HDFC Securities Limited is a financial services Limited is a financial services intermediary
and a subsidiary of HDFC Bank, a private sector bank in India. HDFC Securities was founded
in the year 2000 and is headquartered in Mumbai with its branches across major cities and
towns in India.

Products and services:

• Equities: Investment in stocks of listed companies.
• Mutual funds: Investment in mutual funds including equity, hybrid, tax saving or
debt schemes from asset management companies.

• SIPs: Systematic investment plan that allows automated investments.

• IPOs: Investment in initial public offerings (IPO).
Derivatives: Hedge or speculate on the price movement of stocks or index through its
derivative products.

• Bonds, NCDs and Corporate FDs: Investment in fixed income instruments such as bonds,
NCDs and Corporate FDs

2. HDFC ERGO General Insurance company:

HDFC ERGO is a 51:49 joint venture firm between HDFC International AG, one of the
insurance entities of the Munich Re Group in Germany operating in the insurance field under
the BFSI sectors. The company offers products in the retail, corporate and rural sectors. The
retail sector products are health, motor; travel, home, personal accident and cybersecurity 7

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 policy. Corporate products include liability, marine and poverty insurance. Rural sector caters
the farmers with crop insurance and cattle insurance.

3. HDFC Financial Services Limited:

HDFC Financial Services, a subsidiary company of HDFC Bank, is one of the biggest
Nonbanking Financial Company (NBFC) in our country who provides a variety of loans and
finance to the people. It is known for providing various easy financial services and loans to
their customers such as:

• Personal loan
• Doctor loan
• New to Credit loan
• Gold loan

• Car loan
• Loan against property
• Loan against insurance policies
• Two-wheeler loans and many more
4. Next Gen Publishing: Next Gen Publishing Ltd was incorporated in October 2004 and
commercial operations from January 2005 with the promise of offering the finest in the field
of publishing. It is a publishing company created by its parent companies Forbes Group, a
subsidiary of Shapoorji Pallonji Group and HDFC Bank. Its services include the following:

• Print Magazines
• Awards properties
• Digital Publishing

➢ 1.2 OVERVIEW OF ICICI BANK

ICICI Prudential Life Insurance Company Limited (ICICI Prudential Life) is promoted by
ICICI Bank Limited and Prudential Corporation Holdings Limited. ICICI Prudential Life
began its operations in the fiscal year 2001. On a retail weighted received premium basis
(RWRP), it has consistently been amongst the top companies in the Indian life insurance
sector. Our Assets Under Management (AUM) at December 31, 2023 were `2,866.76 billion.
At ICICI Prudential Life, we operate on the core philosophy of customer-centricity. We offer
long-term savings and protection products to meet the different life stage requirements of our

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customers. We have developed and implemented various initiatives to provide cost-effective
products, superior quality services, consistent fund performance and a hassle-free claim
settlement experience to our customers. In FY2015 ICICI Prudential Life became the first
private life insurer to attain assets under management of `1 trillion. ICICI Prudential Life is
also the first insurance company in India to be listed on National Stock Exchange (NSE) and
Bombay Stock Exchange (BSE).

Vision: To build an enduring institution that serves the protection and long-term saving
needs of customers with sensitivity.

Customer First: Keep customers at the centre of everything we do

Humility: Be open to learn and change

Passion: Demonstrate infectious energy to win and excel

Integrity: Do the right thing

Boundarylessness: Treat organisation agenda as paramount

1.2.1 PRODUCT AND SERVICES OF ICICI BANK

ICICI Bank offers a wide range of products to cater to the diverse needs of its customers.
For wholesale customers, it provides services like Corporate Internet Banking, Trade Online,
Transaction Banking, Global Markets, Asset-Backed Securities (ABS), Mortgage-Backed
Securities (MBS), Corporate Loan Sell-down, and Direct Loan Assignment Buyouts.

On the retail front, ICICI Bank offers a variety of products including Savings Account,
Family Wealth Account, Home Loans, Car Loans, Foreign Exchange Services. Demat
Account, and Insurance products covering Life, Health, Travel, and Senior citizen Health
Insurance. It also provides Tax Solutions such as Goods and Services Tax (GST) and Tax e-
filing.

Customers can avail Personal Loan, Credit Cards, and various investment options like Fixed
Deposit, National Pension System, Public Provident Fund, and Mutual Fund. For the Agri &

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 Rural sector, it offers Instant Gold Loan, Agriculture Term Loan, Tractor Loan, and Micro
Banking. These products are designed to meet the financial needs of individuals, families,
businesses, and rural customers.

1.WHOLESALE BANKING

Wholesale banking is the provision of services by banks to larger customers or organizations

such as mortgage brokers, large corporate clients, mid-sized companies, real estate
developers and investors, international trade finance businesses, institutional customers (such
as pension funds and government entities/agencies), and services offered to other banks or
other financial institutions. Wholesale finance refers to financial services conducted between
financial services companies and institutions such as banks, insurers, fund managers, and
stockbrokers

❖ WHOLESALE BANKING PRODUCT AND SERVICES

1. Corporate Loans: Tailored loan products for corporates to fund capital expenditures and
business expansion.
2. Working Capital Finance: Solutions to manage day-to-day operational expenses for
businesses.
3. Trade Finance: Services to facilitate international trade, including letters of credit and bank
guarantees.
4. Cash Management Services: Efficient management of cash flows and collections for
corporates.
5. Treasury Services: Offering management of foreign exchange and interest rate risks.
6. Structured Finance: Customized financing solutions for complex financial requirements.
7. Project Finance: Long-term funding for industrial and infrastructure projects.
8. Supply Chain Financing: Financial solutions to optimize working capital and improve cash
flow.
9. Non-Fund Based Facilities: Bank guarantees, letters of credit, and other non-fund based
credit facilities.
10. Investment Banking: Advisory services for mergers and acquisitions, restructurings, and
raising capital.

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 11. Corporate Internet Banking: Digital banking platform for corporates to manage their
banking transactions.
12. Merchant Services: Payment solutions for businesses to accept various modes of payments.
13. Commercial Cards: Corporate credit cards for business expenses and vendor payments.
14. Forex and Derivatives: Foreign exchange services and derivative products for hedging and
trading.
15. Government Sector Banking: Specialized banking services for government departments and
public sector units.

2.Retail BANKING
Retail banking, also known as consumer banking or personal banking, is the provision of
services by a bank to the general public, rather than to companies, corporations or other
banks, which are often described as wholesale banking. Banking services which are regarded
as retail include provision of savings and transactional accounts, mortgages, personal loans,
debit cards, and credit cards. Retail banking is also distinguished from investment banking
or commercial banking. It may also refer to a division or department of a bank which deals
with individual customers

❖ RETAIL BANKING PRODUCT AND SERVICES

Retail baking refers to the production and sale of baked goods in small quantities directly to
consumers, typically through bakeries, grocery stores, or specialty shops. Retail bakers may take
orders from customers, prepare baked products to order, and often serve customers directly.

1. Saving Accounts: A variety of savings accounts with different benefits and features to cater
to individual needs.
2. Current Accounts: Tailored for businesses, these accounts facilitate numerous transactions
with ease.
3. Fixed Deposits (FDs): Investment products offering attractive interest rates and varying
tenures for secure savings.
4. Recurring Deposits (RDs): Allows customers to save a fixed amount every month and earn
interest.
5. Home Loans: Financing options for purchasing or constructing homes with flexible
repayment terms.
6. Personal Loans: Unsecured loans for personal or professional needs with quick disbursal.
7. Car Loans: Loans for purchasing new or pre-owned cars with convenient repayment options.

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8. Credit Cards: A range of cards offering rewards, cashback, and various other benefits.
9. Debit Cards: Enables easy access to funds in the savings or current accounts for transactions.
10. Demat Account: Services for dematerialization of securities for investment and trading
purposes.
11. Gold Loans: Loans against gold ornaments with quick processing and disbursal.
12. Agricultural Banking: Specialized products and services catering to the needs of the
agricultural sector.
13. Rural Banking: Banking solutions tailored for rural customers, including microfinance and
farm equipment financing.
14. NRI Banking: Dedicated services for non-resident Indians, including remittances and
investment options.
15. Internet Banking: Online banking platform providing a wide array of services for convenient
banking.

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 CHAPTER :2 OBJECTIVE OF THE STUDY

• To Study the Financial performance of HDFC & ICICI bank.

• To Study the profitability of the HDFC & ICICI bank.
• To Study about assests of both the bank.

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 CHAPTER – 3 LITERATURE OF REVIEW

1. K. Srinivasan, L. Saroja. (2013). the study by K. Srinivasan and L. Saroja (2013) aimed to
investigate customer perceptions of service quality at HDFC Bank in Hyderabad, India. The
authors used a survey to collect data from 200 HDFC Bank customers, and they analyzed the
data using statistical tools such as factor analysis and regression analysis.
The study found that customers perceived HDFC Bank to be providing high-quality services,
with a significant positive correlation between customer satisfaction and service quality. The
authors identified six dimensions of service quality, including reliability, assurance, tangibility,
empathy, responsiveness, and convenience, and found that all six dimensions had a significant
impact on customer satisfaction.
The study concludes that HDFC Bank should continue to focus on improving service quality,
especially in the areas of reliability, assurance, and empathy. The authors suggest that HDFC
Bank should invest in staff training and development, improve communication with customers,
and enhance the physical environment of bank branches to improve service quality and
customer satisfaction.

2. B. Sudha, P. Rajendran. (2019). The study by B. Sudha and P. Rajendran (2019) aimed to
analyze the financial performance of HDFC Bank in India. The authors used financial ratios to
evaluate the bank's profitability, liquidity, asset quality, and capital adequacy over a five- year
period from 2013 to 2017.
The study found that HDFC Bank's profitability ratios, such as return on assets (ROA) and
return on equity (ROE), were consistently high over the five-year period, indicating efficient
management of its assets and equity. The liquidity ratios showed that HDFC Bank had a
comfortable level of liquidity to meet its short-term obligations. The asset quality ratios
indicated that the bank had maintained a low level of non-performing assets (NPAs) over the
five-year period, indicating good credit risk management practices. Finally, the capital
adequacy ratio (CAR) showed that HDFC Bank had adequate capital to absorb potential losses
and meet regulatory requirements.
The authors conclude that HDFC Bank has a strong financial performance and is well-
positioned to maintain its market leadership position in the banking industry. They suggest that
HDFC Bank should continue to focus on maintaining its asset quality and liquidity, while also
investing in technology and innovation to enhance its service offerings and customer experien
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3. A. Jaiswal, C. Jain. (2016). The study by A. Jaiswal and C. Jain (2016) aimed to examine the
employee engagement practices at HDFC Bank Ltd., one of the largest private sector
banks in India. The authors used a survey to collect data from 150 employees across different
departments and levels of the bank, and they analyzed the data using statistical tools such as
frequency distribution and chi-square analysis.
The study found that employee engagement practices at HDFC Bank were generally
satisfactory, with most employees reporting a positive attitude towards their work, the
organization, and their colleagues. The authors identified several factors that contributed to
employee engagement, including job satisfaction, employee recognition, training and
development, communication, and work-life balance.
The study also found that there were some areas for improvement, particularly in the areas of
employee recognition and work-life balance. The authors suggested that HDFC Bank should
focus on developing a formal recognition program to acknowledge employee contributions and
provide more flexibility in work arrangements to improve work-life balance.
Overall, the study concludes that employee engagement practices at HDFC Bank are generally
effective, but there is room for improvement in certain areas to maintain employee satisfaction
and retention.

4. Nandini Thakur. (2020). The study by Nandini Thakur (2020) aimed to investigate the impact
of digitalization on customer satisfaction at HDFC Bank, one of the largest private sector banks
in India. The author used a case study approach and collected data from both primary and
secondary sources. The primary data was collected through a survey of 150 customers of
HDFC Bank, while secondary data was collected from the bank's annual reports and other
relevant sources.
The study found that digitalization has had a significant positive impact on customer
satisfaction at HDFC Bank. The author identified several digital initiatives undertaken by the
bank, such as mobile banking, internet banking, and digital wallets, which have helped improve
customer experience and satisfaction. The study found that customers appreciated the
convenience and ease of use of these digital services, which allowed them to access banking
services anytime, anywhere, and without the need to visit a physical bank branch.
The study also found that digitalization has helped HDFC Bank to improve its operational
efficiency, reduce costs, and increase revenue. The author suggested that HDFC Bank should
continue to invest in digitalization to maintain its competitive advantage and enhance customer.

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 Overall, the study concludes that digitalization has had a positive impact on customer
satisfaction at HDFC Bank and is likely to be an important driver of growth and success .

5. R. Malini, A. Meharaj Banu. (2019). The study by R. Malini and A. Meharaj Banu (2019)
aimed to examine the brand image of HDFC Bank among its customers in Coimbatore city,
India. The authors used a survey to collect data from 200 customers of HDFC Bank in
Coimbatore and analyzed the data using statistical tools such as frequency distribution,
correlation analysis, and regression analysis.
The study found that HDFC Bank has a strong brand image among its customers in Coimbatore
city, with most customers perceiving the bank as reliable, trustworthy, and customer-oriented.
The authors identified several factors that contributed to the brand image of HDFC Bank,
including service quality, customer satisfaction, brand awareness, and brand loyalty.
The study also found that there were some areas for improvement, particularly in the areas of
brand awareness and brand loyalty. The authors suggested that HDFC Bank should focus on
increasing its visibility and promoting its brand through various marketing channels to improve
brand awareness. They also suggested that the bank should focus on building stronger
relationships with its customers to improve brand loyalty.
Overall, the study concludes that HDFC Bank has a strong brand image among its customers
in Coimbatore city, but there is room for improvement in certain areas to maintain customer
satisfaction and retention. The authors suggest that HDFC Bank should focus on improving its
brand awareness and building stronger customer relationships to enhance its brand image and
maintain its competitive edge.

6. Mabwe Kumbirai, Robert Webb. (2010). The paper by Mabwe Kumbirai and Robert Webb
(2010) compared the financial characteristics of private and public banks in Zimbabwe. The
authors analyzed the financial statements of five private and five public banks for the period
2004 to 2008, and used various financial ratios to compare the performance of the two groups.
The study found that private banks generally outperformed public banks in terms of
profitability, asset quality, and efficiency. Specifically, private banks had higher returns on
assets (ROA) and returns on equity (ROE), lower non-performing loans (NPLs) ratios, and
higher cost-to-income ratios (indicating greater efficiency) than public banks.
In contrast, public banks had higher capital adequacy ratios (CAR) and larger loan portfolios,
indicating a greater capacity to absorb losses and a larger market share, respectively.

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 The authors attributed the differences in performance to factors such as differences in
ownership structure, management practices, and regulatory environments. They suggested that
public banks could improve their performance by adopting some of the practices and strategies
used by private banks, such as focusing on profitability, improving efficiency.
Overall, the study highlights the differences in financial performance between private and
public banks in Zimbabwe and suggests ways in which public banks can improve their
performance to remain competitive in the banking industry.

7. Dr. Gagandeep Sharma, Dr. Divya Sharma. (2017). The paper by Dr. Gagandeep Sharma
and Dr. Divya Sharma (2017) examines the impact of demonetization on the Indian banking
industry, with a focus on selected banks. The study used a mixed-method approach involving
both primary and secondary data sources.
The authors found that demonetization had a significant impact on the banking industry,
especially in the short-term. The study revealed that there was a surge in deposits and a decrease
in lending during the demonetization period, which resulted in higher liquidity for banks.
However, there was also a rise in non-performing assets (NPAs) and a decline in profitability
in the banking sector in the aftermath of demonetization. The study found that some of the
banks that were studied were more affected by demonetization than others. For instance, private
sector banks were found to have better adapted to the changes brought about by demonetization,
compared to public sector banks. The authors suggest that this could be due to differences in
their customer segments, as well as differences in management practices. Overall, the study
suggests that demonetization had both positive and negative impacts on the Indian banking
industry. The authors recommend that banks should focus on enhancing their technological
capabilities and improving their risk management practices to mitigate the negative impacts of
demonetization in the future.

8. B. Sudha, P. Rajendran. (2019). The paper by B. Sudha and P. Rajendran (2019) presents a
study on the financial performance analysis of HDFC Bank in India. The authors conducted a
detailed analysis of the financial statements of HDFC Bank for the period 2013-2018, using
various financial performance indicators such as profitability ratios, liquidity ratios, solvency
ratios, and efficiency ratios.

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 The study found that HDFC Bank had consistently performed well in terms of profitability,
liquidity, solvency, and efficiency ratios during the study period. The bank's net profit had
steadily increased, and it had a good return on assets and return on equity. The study also found
that the bank had maintained a healthy level of liquidity and had a strong capital structure.
The authors also compared HDFC Bank's financial performance with that of other private sector
banks in India, such as ICICI Bank and Axis Bank. The study found that HDFC Bank had
performed better than these banks in terms of profitability, efficiency, and solvency ratios.
Overall, the study suggests that HDFC Bank had maintained a strong financial position during
the study period and had consistently performed well in various financial performance
indicators. The findings of this study could be useful for investors, analysts, and policymakers
in assessing the financial performance of HDFC Bank and making informed decisions.

9. Dr. Seema Pandit, Jash Gandhi. (2021). The study conducted by Dr. Seema Pandit and Jash
Gandhi in 2021 aimed to identify the factors that affect customer satisfaction with reference to
HDFC Bank. The research used a survey questionnaire to collect data from a sample of 200
customers of HDFC Bank in Mumbai. The study found that customer satisfaction is positively
impacted by various factors, such as service quality, responsiveness, reliability, empathy,
tangibles, and convenience. The study recommends that HDFC Bank should focus on
improving these factors to enhance customer satisfaction and loyalty.

10. Ahmed Arif Almazari. (2012). The study by Ahmed Arif Almazari (2012) aimed to
investigate the impact of customer relationship management (CRM) dimensions on customer
satisfaction and loyalty in the banking sector in Libya. The study used a quantitative approach,
and data was collected from 305 customers of four major Libyan banks using a structured
questionnaire. The study found that CRM dimensions, including communication, reliability,
trust, and empathy, had a significant positive impact on customer satisfaction and loyalty. The
results suggested that banks should focus on building strong relationships with their customers
by improving their communication channels, providing reliable and trustworthy services, and
showing empathy towards their customers. This would lead to increased customer satisfaction
and loyalty, which could result in improved financial performance and a competitive advantage
in the banking sector.

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11. Shweta Yadav, & Jonghag Jang. (2021). The article analyzes the impact of the COVID-19
pandemic on the Indian banking industry with a specific focus on HDFC Bank. It examines the
bank's financial performance, customer behaviour, and the measures taken by the bank to
mitigate the impact of the pandemic. The study finds that HDFC Bank was able to maintain its
financial performance during the pandemic, despite the challenges faced by the industry. It also
identifies several key measures taken by the bank to address the impact of the pandemic,
including the adoption of digital technologies and the implementation of measures to support
customers and employees. The study concludes that HDFC Bank's ability to adapt quickly to
the changing circumstances of the pandemic has helped it to maintain its position as a leading
player in the Indian banking industry.

12. Singh, A. B., & Tandon, P. (2012). The paper examines the measurement of service quality
in the banking sector, with a special reference to HDFC Bank. The study is conducted through
a survey of 100 customers of HDFC Bank in Lucknow, India, and the SERVQUAL model is
used to measure the service quality provided by the bank. The five dimensions of the
SERVQUAL model, including reliability, responsiveness, assurance, empathy, and tangibles,
are analyzed in the context of HDFC Bank's service quality. The findings indicate that HDFC
Bank is providing high-quality services to its customers in terms of reliability, responsiveness,
and assurance dimensions. However, there is scope for improvement in empathy and tangibles
dimensions, according to the customers' perceptions. The study concludes that the measurement
of service quality is crucial for banks to maintain a competitive advantage and to meet
customers' expectations.

13. Vijay Hemant Sonaje, & Shriram S. Nerlekar. (2017). The article examines the customer
perception towards digital banking services with reference to HDFC Bank in India. The study
was conducted on a sample of 150 respondents from Pune city. The results showed that the
majority of the customers were satisfied with the digital banking services offered by HDFC
Bank, particularly in terms of convenience, accessibility, and reliability. The study also
highlighted the challenges faced by the customers while using digital banking services, such
as technical issues, security concerns, and lack of awareness. Overall, the study emphasizes the
importance of understanding customer perception towards digital banking services to improve
customer satisfaction and retention in the banking industry.

18
14. Nagalekshmi V S, & Vineetha S Das. (2018). The article is about the impact of HR (Human
Resource) practices on employee performance in HDFC Bank, India. The study aimed to
identify the impact of HR practices such as recruitment and selection, training and
development, performance appraisal, and compensation on employee performance. The
researchers used a questionnaire-based survey method to collect data from 150 employees
working in HDFC Bank. The findings of the study suggest that HR practices have a significant
impact on employee performance in HDFC Bank, and there is a positive relationship between
HR practices and employee performance. The study recommends that HDFC Bank should
focus on enhancing its HR practices to improve employee performance and maintain its
competitive position in the market.

15. Murad Mohammad Galif Al-Kaseasbah and Abdel KarimSalimIssaAlbkour (2018) The
article investigates the impact of e-marketing on customer loyalty in the Jordanian banking
sector. The authors conducted a survey on a sample of 400 bank customers and used regression
analysis to examine the relationship between e-marketing and customer loyalty.
The results indicated that e-marketing has a positive impact on customer loyalty in the
Jordanian banking sector. Additionally, the study found that the dimensions of e-marketing,
including website quality, email marketing, online advertising, and social media marketing, are
positively associated with customer loyalty. The study provides insights for banks to improve
their e-marketing strategies to enhance customer loyalty.

16. Priyangajha (2018) “Analyzing Financial Performance (2011-18) The article titled
"Analyzing Financial Performance (2011-18) of Public Sector Banks (PNB) and Private Sector
Banks (ICICI) in India" by Priyangajha, published in the ICTACT Journal of Management
Studies in August 2018, compares the financial performance of two banks in India, Punjab
National Bank (a public sector bank) and ICICI Bank (a private sector bank), from 2011 to
2018. The study uses various financial ratios such as liquidity ratios, solvency ratios, and
profitability ratios to evaluate the financial health of these banks. The author concludes that
ICICI Bank performed better in terms of profitability and liquidity, while PNB lagged behind
in these areas. However, PNB had better solvency ratios compared to ICICI Bank. The study
provides insights into the financial performance of public and private sector banks in India and
can be useful for investors and stakeholders.

19
17. Vinod Kumar and Bhawna Malhotra (2017). The article by Vinod Kumar and Bhawna
Malhotra (2017) explores the financial performance of private banks in India using the CAMEL
model. The study analyzes the financial statements of five private banks for a period of five
years from 2011-2016. The study found that the banks had performed well in terms of capital
adequacy, asset quality, and management efficiency. However, the banks need to focus on
improving their earnings and liquidity position. Overall, the study concludes that private banks
in India are financially sound and have the potential for growth in the future.

18. Jaiswal and Jain (2016) The study conducted by Jaiswal and Jain in 2016 compares the
financial performance of two major banks in India, SBI and ICICI. The authors used secondary
data from the annual reports of the banks for the years 2010 to 2015 and applied financial ratio
analysis to evaluate their performance. The study found that ICICI Bank performed better than
SBI in terms of profitability, asset quality, and management efficiency, while SBI performed
better in terms of liquidity and solvency. Overall, the study provides insights into the financial
performance of these banks and highlights areas where they can improve their performance.

19. Gupta (2014) The article by Gupta (2014) presents an empirical study on the financial
performance of ICICI Bank, a leading private sector bank in India, using financial ratios
analysis. The study aims to compare the performance of ICICI Bank with its major competitors
in the Indian banking industry, such as HDFC Bank, Axis Bank, and State Bank of India (SBI).
The study analyzes various financial ratios, including profitability ratios,

20. liquidity ratios, solvency ratios, and efficiency ratios, for the period from 2007 to 2013. The
findings suggest that ICICI Bank has performed better than its competitors in terms of
profitability, liquidity, and efficiency, while its solvency position needs improvement. The
study recommends that ICICI Bank should focus on improving its capital adequacy and asset
quality to strengthen its solvency position. Overall, the study provides valuable insights into
the financial performance of ICICI Bank and its competitive position in the Indian banking
industry.

20
21. The results show that both banks have improved their financial performance during the study
period, but ICICI Bank has performed better than HDFC Bank in terms of profitability,
efficiency, and liquidity ratios. The study concludes that ratio analysis is an effective tool for
comparing the financial performance of banks and making informed investment decisions.

22. Yadav, S., & Jang, J. (2021). The article examines the impact of the COVID-19 pandemic on
HDFC Bank, one of the largest private sector banks in India. The study analyzed the bank's
financial performance, customer behaviour, and digital adoption during the pandemic period.
The findings indicate that the bank's profits and asset quality were affected by the pandemic,
but the bank's strong digital infrastructure helped in maintaining customer satisfaction and
loyalty. The study also suggests that HDFC Bank and other banks need to adopt innovative
strategies to sustain their growth and profitability in the post-pandemic period.

23. Singh, R., & Gupta, S. (2018). Conducted a comparative analysis of the financial performance
of HDFC Bank and ICICI Bank. The study aimed to evaluate and compare the financial
indicators and ratios of both banks to assess their performance and identify any significant
differences.
The researchers analyzed key financial ratios, including profitability, liquidity, and asset quality
indicators, to assess the banks' financial health. They examined various financial performance
metrics, such as return on assets (ROA), return on equity (ROE), net interest margin (NIM),
non-performing assets (NPAs), and capital adequacy ratio (CAR).
Through their analysis, the authors found that both HDFC Bank and ICICI Bank demonstrated
sound financial performance. However, there were differences in certain financial indicators
between the two banks. For instance, HDFC Bank exhibited higher profitability ratios, such as
ROA and ROE, indicating better efficiency in generating profits from its assets and equity.
ICICI Bank, on the other hand, had a higher NIM, indicating a better ability to generate net
interest income.
Overall, the study provided insights into the financial performance of HDFC Bank and ICICI
Bank, highlighting their strengths and areas for improvement. The findings can be useful for
investors, analysts, and policymakers in evaluating the banks and making informed decisions
regarding their financial operations.

21
24. Kumar, R., & Goyal, A. (2020). Conducted a study on the financial performance analysis of
HDFC Bank. The objective of the study was to assess the bank's financial performance by
analyzing various financial indicators and ratios. The researchers examined key financial
ratios, including profitability ratios, liquidity ratios, and efficiency ratios, to evaluate HDFC
Bank's financial health. They also analyzed asset quality indicators and capital adequacy ratios
to assess the bank's risk management and capital position.
Based on their analysis, the authors found that HDFC Bank exhibited strong financial
performance. The bank demonstrated consistent profitability, with healthy returns on assets and
equity. It also maintained a sound liquidity position and efficient utilization of its assets.
Additionally, HDFC Bank showed effective risk management practices with low levels of non-
performing assets and a robust capital adequacy ratio.
The study provided valuable insights into the financial performance of HDFC Bank,
highlighting its strengths and stability. The findings can be useful for investors, analysts, and
stakeholders in assessing the bank's financial position and making informed decisions.

25. Parida, P., & Rout, N. (2017). Conducted a study titled "Determinants of Customer Loyalty
in Banking Sector: A Study of HDFC Bank" published in the Journal of Commerce and
Management Thought. The study aimed to identify and analyze the factors influencing
customer loyalty specifically in the context of HDFC Bank.
The researchers investigated various determinants of customer loyalty, including customer
satisfaction, perceived service quality, trust, perceived value, and switching costs. They
collected primary data through a structured questionnaire administered to a sample of HDFC
Bank customers.
By analyzing the collected data, the authors identified the significant determinants of customer
loyalty and their impact on customer behaviour. The study highlighted the importance of
customer satisfaction, perceived service quality, trust, perceived value, and switching costs in
influencing customer loyalty towards HDFC Bank.
The findings of the study contribute to a better understanding of the factors that drive customer
loyalty in the banking sector, specifically in the case of HDFC Bank. The research outcomes
can be valuable for the bank in enhancing its customer loyalty strategies and improving overall
customer satisfaction.

26. Sharma, R., & Sharma, D. (2021). Conducted a study titled "An Analysis of Digital Banking
Adoption in HDFC Bank" published in the International Journal of Business and
22
 Management Invention. The study aimed to analyze the adoption of digital banking services
among customers of HDFC Bank.
The researchers collected primary data through a structured questionnaire administered to a
sample of HDFC Bank customers. The questionnaire included items related to the usage and
satisfaction with various digital banking services offered by the bank, such as mobile banking,
internet banking, and electronic payment systems.
By analyzing the collected data, the authors examined the level of digital banking adoption
among HDFC Bank customers and identified the factors influencing their adoption behaviour.
The study also assessed the satisfaction levels of customers with the digital banking services
provided by HDFC Bank.
The findings of the study provide insights into the current state of digital banking adoption in
HDFC Bank and shed light on the factors that drive customers to adopt digital banking services.
The research outcomes can assist HDFC Bank in formulating strategies to further enhance its
digital banking offerings and improve customer satisfaction in this domain.

27. Palani, Rajendran & Phil, M & Sudha, B. (2019). This study has been carried out to evaluate
the financial performance of HDFC Bank .HDFC was amongst the first to receive an 'in
principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector.
The bank at present has an enviable network of over 4,805 branches spread over cities across
India. All branches are linked on an online real time basis. Customers in over 500 locations are
also servicing through telephone banking. The bank also has a network of about over 12,860
networked ATMs 2,657 across cities and towns. HDFC Bank provides a number of products
and services including wholesale banking and retail banking, treasury, auto loans, two wheeler
loans, personal loans, loans against property, consumer durable loans, life style loan, credit
cards and the various digital products. The financial performance of above mentioned bank has
been evaluated for the past five year’s i.e.2015, 2016, 2017, 2018 and 2019. The data analyzed
by ratio analysis such as current ratio, cash position ratio, fixed assets ratio, debt-equity ratio
and proprietary ratio and give interpretation to each ratio. To conclude this article the financial
soundness of the bank is satisfactory during the study period.

28. Shanmugam, N. & Yamuna, T. (2023). The study entitled the financial performance analysis
and Company. The objective of this study is to compare the current financial performance with
last five years and to study the existing financial position of Company. The data used in this
study is secondary data through annual report. The data that used in this study, comparative

23
 balance sheet, common size balance sheet, comparative balance sheet analysis ,that the current
liabilities is higher than the current asset in every year and it is to be suggest that the company
can concentrate on their increasing the level of the current asset. So
the company improves this financial position. The study of financial performance on The
Company has revealed the great deal of their various financial aspects for five years. Findings
of the study, Table shows, current assets and current liabilities over a period of 10 years from
2012-2013 to 2021- 2022. The Interest Incidence % (times) mean 25.65 and its Standard
Deviation is 24.25 Coefficient of Variation is 23.40 and CAGR is 23.28 Interest Incidence %
(times) is high during period 2013– 2014. It indicates the firm is fluctuation trend in this ratio
during the whole study period 2013-14 - 2021- 2022.Conclude this study. It helps to understand
the working of the bank. From the study of financial performance of HDFC BANK it can be
concluded that the bank has satisfactory position with regard to profitability and the bank needs
to improve its liquidity and solvency.

29. Karthika, K. (2021). This study has been carried out to evaluate the financial performance of
HDFC bank. HDFC was amongst the First to receive an 'in principle' approval from the Reserve
Bank of India (RBI) to set up a bank in the private sector. HDFC Bank is the second largest
Private sector Bank in India and one of the top 5 banks in the country. The bank has a network
of 5000+branches and 16000+ATMs in 2902 cities/towns. HDFC Bank provides a number of
products and services including wholesale banking and retail banking, treasury, auto loans, two
wheeler loans, personal loans against property, consumer durable loans, life style loan, credit
cards and the various digital products. The Financial performance of above mentioned bank
has been evaluated for the past years i.e. 2017, 2018, 2019, 2020, 2021. The data analyzed by
ratio analysis such as current ratio, liquid ratio, fixed assets ratio, debt- equity ratio and net
profit ratio and give interpretation to each ratio. To conclude this financial soundness of the
bank is satisfactory during the study period.

30. Sultana, Nazia & Raja, Banka (2021). The Indian finance and banking fabric has many
players in which cooperative banks play an important role. Financial reforms and
economic instability have placed tremendous burden on urban cooperative banks
(UCBs). These banks need transformation to withstand the changing circumstances as
most of the UCBs in the State of Telangana have small share capital , membership,
outstanding loans, working capital and profit. In this background, the present study
intends to focus on the CAMEL model analysis of selected UCBs in Telangana state
24
 CHAPTER :4 NEED FOR STUDY

a. BENCHMARKING: Comparing the financial performance of ICICI Bank and HDFC

Bank allows for benchmarking against industry peers, enabling identification of areas of
strength and weakness.
b. STRATEGIC PLANNING: Insights gained from studying the financial performance
of ICICI Bank and HDFC Bank can inform strategic planning, including expansion into
new markets, product diversification, and technological innovations
c. COST EFFICIENCY: Analyzing financial performance metrics helps identify
opportunities for cost reduction and operational efficiency, leading to improved
profitability for ICICI Bank and HDFC Bank
2. LONG-TERM SUSTANABILITY: By continuously monitoring and improving
financial performance, ICICI Bank and HDFC Bank can ensure long-term sustainability
and resilience in an increasingly dynamic and competitive banking environment.

25
 CHAPTER: 5 RESEARCH METHODLOGY

Research methodology refers to the systematic approach, techniques, and procedures used
by researchers to conduct research, gather data, analyze information, and draw
conclusions. It encompasses the following key components

1. RESEARCH DESIGN: his involves outlining the overall plan and structure of the
research, including the research objectives, scope, and timeframe. It specifies the methods
and procedures to be employed in collecting and analyzing data.

2. DATA COLLECTION METHOD: Researchers use various methods to gather data

relevant to their research objectives. These methods may include surveys, interviews,
observations, experiments, archival research, and analysis of existing datasets.

3. DATA ANALYSIS: Once data is collected, researchers analyze it to derive meaningful

insights and conclusions. Data analysis techniques may include quantitative methods (e.g.,
statistical analysis, regression analysis) and qualitative methods (e.g., thematic analysis,
content analysis) depending on the nature of the data and research questions.

4. VALADITY AND RELIABILITY: Researchers strive to ensure the validity and reliability
of their findings. Validity refers to the accuracy and truthfulness of the research findings,
while reliability pertains to the consistency and stability of the results over time and across
different contexts.

5. EATHICAL CONSIDERATION: Research methodology involves ethical considerations,

such as ensuring the privacy and confidentiality of research participants, obtaining informed
consent, avoiding harm, and maintaining integrity in research practices.

6. RESEARCH INSTRUMENT: Researchers use various instruments and tools to collect

data, such as questionnaires, surveys, interview protocols, observation checklists, and
experimental procedures.

26
7. DATA INTERPETERATION: Researchers interpret the collected data to make sense of
patterns, trends, relationships, and associations. They critically analyze the findings in the
context of existing literature and theoretical frameworks to draw meaningful conclusions.

8. LIMITATIONS AND DELIMITATIONS: Researchers acknowledge the limitations and

delimitations of their study, including constraints related to sample size, data availability,
research design, and methodology. They discuss these limitations to provide transparency
and context for interpreting the findings.

• THERE ARE TWO METHOD OF COLLECTION DATA

A. PRIMARY METHOD COLLECTION OF DATA

1. Surveys: Surveys involve administering structured questionnaires to a sample of

respondents to gather information about their opinions, attitudes, behaviors, or experiences.
Surveys can be conducted through various means, including face-to-face interviews,
telephone interviews, paper-based surveys, or online surveys.

2. Interviews: Interviews involve direct interaction between the researcher and the participant
to collect data through guided conversations. Interviews can be structured (with
predetermined questions), semi-structured (with a combination of predetermined and open-
ended questions), or unstructured (allowing for free-flowing conversation). Interviews can
be conducted face-to-face, over the phone, or via video conferencing.

3. Observational research: involves systematically observing and recording behaviors,

events, or phenomena in their natural settings. Observations can be participant observations
(where the researcher actively participates in the observed activity) or non-participant
observations (where the researcher observes from a distance). Observational data can
provide rich qualitative insights into behaviors and interactions.

4. Experiments: it involve manipulating one or more variables to observe the effect on another
variable while controlling for other factors. Experiments are commonly used in scientific
research to establish cause-and-effect relationships. Researchers can conduct experiments in
controlled laboratory settings or real-world environments.

27
5. Focus groups: It involve bringing together a small group of individuals to discuss a specific
topic or issue under the guidance of a moderator. Focus groups encourage interaction and
group dynamics, allowing researchers to explore diverse perspectives, opinions, and
attitudes on a particular topic.

6. Diaries: Diaries and logs involve participants recording their thoughts, experiences,
behaviors, or activities over a period of time. Diaries and logs provide longitudinal data and
allow researchers to capture participants' experiences in real-time.

7. Questionnaires: Questionnaires are structured instruments used to collect data from

respondents by asking a series of questions. Questionnaires can be administered in various
formats, such as paper-based questionnaires, online surveys, or mobile surveys.
Questionnaires are often used to gather quantitative data but can also include open-ended
questions for qualitative insights

B. SECONDRY METHOD COLLECTION OF DATA

1. Literature Review: Conducting a comprehensive review of existing literature, including

academic journals, books, conference proceedings, government reports, industry
publications, and white papers. A literature review provides valuable insights into previous
research, theoretical frameworks, methodologies, and key findings related to the research
topic.

2.Archival Research: Accessing archives, repositories, and databases that contain historical
records, documents, and datasets relevant to the research topic. Archives may include
government archives, organizational archives, library collections, and digital repositories.
Archival research allows researchers to access primary sources of information and historical
data for analysis.

3. Government Sources: Utilizing data and reports published by government agencies,

departments, and bureaus. Government sources provide a wide range of statistical data,
demographic information, economic indicators, policy documents, and regulatory reports.
Examples of government sources include the Bureau of Labor Statistics, Census Bureau,
Federal Reserve, and various regulatory agencies.

28
4.Industry Reports: Accessing market research reports, industry analyses, and trade
publications published by research firms, consulting firms, and industry associations.
Industry reports provide insights into market trends, competitive landscapes, consumer
behavior, and industry benchmarks. Examples of industry reports include those published
by Nielsen, Gartner, IBISWorld, and Forrester.

5.Academic Databases: Accessing academic databases and online libraries to search for
scholarly articles, research papers, dissertations, and conference proceedings relevant to the
research topic. Academic databases such as PubMed, JSTOR, Scopus, and Google Scholar
provide access to a vast collection of peer-reviewed literature across various disciplines.

6. Financial Databases: Accessing financial databases and information services that

provide data on financial markets, companies, stocks, bonds, and economic indicators.
Financial databases such as Bloomberg, Thomson Reuters Eikon, FactSet, and Morningstar
provide access to financial statements, market data, analyst reports, and company profiles.

7. Media Sources: Reviewing newspapers, magazines, news websites, and online media
sources to gather current events, news articles, editorials, and opinion pieces relevant to the
research topic. Media sources provide insights into public opinions, current trends, and real-
time events shaping the research context.

8. Social Media and Online Platforms: Analyzing data from social media platforms, online
forums, blogs, and discussion groups to gather insights into public opinions, sentiment
analysis, and online interactions related to the research topic. Social media monitoring tools
such as Hootsuite, Brandwatch, and Sprout Social enable researchers to track and analyze
social media data.

29
 CHAPTER: 6
DATA ANALYSIS & INTERPRETATION

➢ 6.0 FINANCIAL ANALYSIS

Financial analysis is the process of evaluating businesses, projects, budgets, and other
finance-related transactions to determine their performance and suitability. Typically,
financial analysis is used to analyse whether an entity is stable, solvent, or profitable enough
to warrant a monetary investment. Financial analysis is used to evaluate economic trends,
set financial policy, build long-term plans for business activity, and identify projects or
companies for investment. This is done through the synthesis of financial numbers and data.
A financial analyst will thoroughly examine a company's statements—the income financial
statement, balance sheet, and cash flow statement. Financial analysis can be conducted in
both corporate finance and investment finance settings.One of the most common ways to
analyze financial data is to calculate ratios from the data in the financial statements
to compare against those of other companies or against the company's own historical
performance.For example, return on assets (ROA) is a common ratio used to determine how
efficient a company is at using its assets and as a measure of profitability. This ratio could
be calculated for several companies in the same industry and compared to one another as
part of a larger analysis.

Price/ Earning Ratio

The price-to-earnings ratio depicts the company's share price relative to its earnings per share.
This ratio is used to determine whether the company is overvalued or undervalued. As of January
2024, the P/E ratio for ICICI Bank is 18.37, whereas for HDFC Bank, it is 19.8.

Price to Book Value

The P/B ratio measures a company's market value relative to its book value. Value investors use
this ratio to identify the best investment opportunities. A ratio under one is considered ideal.

As of January 2024, HDFC Bank's P/B ratio is 2.64, whereas ICICI Bank's is 3.24.

Earning Per Share

EPS or earnings per share is a value depicting the earnings in one share out of all the outstanding
shares based on the net income. The EPS for ICICI Bank is 56.01, and for HDFC Bank, it is 74.20.

30
 A. FINANCIALS
PROFIT AND LOSS AC OF HDFC BANK

ROFIT & LOSS ACCOUNT MAR 24 MAR 23 MAR 22 MAR 21 MAR 20

OF HDFC BANK (in Rs. Cr.)

12 mths 12 mths 12 mths 12 mths 12 mths

INCOME

Interest / Discount on Advances 207,220.01 127,095.86 98,512.02 94,834.54 91,787.88

/ Bills

Income from Investments 44,364.28 31,311.16 26,046.13 23,214.27 20,633.32

Interest on Balance with RBI 2,040.47 996.79 2,552.37 2,341.25 1,828.93

and Other Inter-Bank funds

Others 4,715.80 2,181.74 642.59 468.17 562.52

TOTAL INTEREST 258,340.56 161,585.54 127,753.12 120,858.23 114,812.65

EARNED

Other Income 49,240.99 31,214.83 29,509.90 25,204.89 23,260.82

TOTAL INCOME 307,581.55 192,800.36 157,263.02 146,063.12 138,073.47

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 0.00 2,242.48 1,599.80 1,302.41 1,195.85

Operating Expenses (excludes 41,145.80 29,897.24 23,810.70 21,055.42 19,976.01

Employee Cost & Depreciation)

TOTAL OPERATING 63,386.01 47,652.08 37,442.19 32,722.63 30,697.53

EXPENSES

Provision Towards Income Tax 10,083.03 14,596.28 13,346.03 11,644.77 9,833.15

31
Provision Towards Deferred 0.00 -219.68 -1,291.91 -1,102.31 516.69
Tax

Other Provisions and 23,492.14 11,919.66 15,061.83 15,702.85 12,142.39

Contingencies

TOTAL PROVISIONS AND 33,575.17 26,296.26 27,115.95 26,245.31 22,492.23

CONTINGENCIES

TOTAL EXPENDITURE 246,769.28 148,691.66 120,301.66 114,946.59 111,816.15

NET PROFIT / LOSS FOR 60,812.27 44,108.70 36,961.36 31,116.53 26,257.32

THE YEAR

NET PROFIT / LOSS 60,812.27 44,108.70 36,961.36 31,116.53 26,257.32

AFTER EI & PRIOR YEAR
ITEMS

Profit / Loss Brought Forward 0.00 93,185.67 73,652.79 57,492.40 49,223.30

TOTAL PROFIT / LOSS 0.00 137,294.38 110,614.15 88,608.93 75,480.62

AVAILABLE FOR
APPROPRIATIONS

APPROPRIATIONS

Transfer To / From Statutory 0.00 11,027.18 9,240.34 7,779.13 6,564.33

Reserve

Transfer To / From Capital 0.00 4.61 666.47 2,291.68 1,123.85

Reserve

Transfer To / From Revenue 0.00 0.00 0.00 0.00 0.00

And Other Reserves

Dividend and Dividend Tax for 0.00 8,604.52 3,592.40 0.00 0.00
The Previous Year

Equity Share Dividend 0.00 0.00 0.00 0.00 6,540.31

Tax On Dividend 0.00 0.00 0.00 0.00 0.00

Balance Carried Over To 0.00 112,960.00 93,185.67 73,652.79 57,492.40

Balance Sheet

TOTAL APPROPRIATIONS 0.00 137,294.38 110,614.15 88,608.93 75,480.62

32
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 1,550.00 650.00 250.00

INTERPRETRATION

• HDFC Bank demonstrated significant revenue growth primarily driven by increased

interest income and other income streams.
• However, expenses also increased, primarily due to higher interest expenses, employee
costs, and operating expenses.
• The bank maintained strong profitability, as evidenced by the steady increase in net
profit over the years.
• Appropriations increased, including higher dividends, reflecting the bank's commitment
to shareholder returns and compliance with regulatory requirements.

33
 BALANCESHEET OF HDFC BANK

BALANCE SHEET MAR 24 MAR 23 MAR 22 MAR 21 MAR 20

OF HDFC BANK (in
Rs. Cr.)

12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND
LIABILITIES

SHAREHOLDER'S
FUNDS

Equity Share Capital 759.69 557.97 554.55 551.28 548.33

TOTAL SHARE 759.69 557.97 554.55 551.28 548.33

CAPITAL

Revaluation Reserve 0.00 0.00 0.00 0.00 0.00

Reserves and Surplus 436,833.39 279,641.03 239,538.38 203,169.55 170,437.70

Total Reserves and 436,833.39 279,641.03 239,538.38 203,169.55 170,437.70

Surplus

TOTAL 437,593.08 280,199.01 240,092.94 203,720.83 170,986.03

SHAREHOLDERS
FUNDS

Deposits 2,379,786.2 1,883,394. 1,559,217. 1,335,060.22 1,147,502.

8 65 44 29

Borrowings 662,153.07 206,765.57 184,817.21 135,487.32 144,628.54

Other Liabilities and 138,090.63 95,722.25 84,407.46 72,602.15 67,394.40

Provisions

TOTAL CAPITAL 3,617,623.0 2,466,081. 2,068,535. 1,746,870.52 1,530,511.

AND LIABILITIES 6 47 05 26

ASSETS

34
Cash and 178,683.22 117,160.77 129,995.64 97,340.74 72,205.12
Balances with
Reserve Bank of
India

Balances with 40,464.19 76,604.31 22,331.29 22,129.66 14,413.60

Banks Money at
Call and Short
Notice

Investments 702,414.96 517,001.43 455,535.69 443,728.29 391,826.66

Advances 2,484,861. 1,600,585. 1,368,820. 1,132,836. 993,702.88

52 90 93 63

Fixed Assets 11,398.97 8,016.54 6,083.67 4,909.32 4,431.92

Other Assets 199,800.20 146,712.52 85,767.83 45,925.89 53,931.09

TOTAL 3,617,623. 2,466,081. 2,068,535. 1,746,870. 1,530,511.26

ASSETS 06 47 05 52

OTHER
ADDITIONAL
INFORMATIO
N

Number of 0.00 7,821.00 6,342.00 5,608.00 5,416.00

Branches

Number of 0.00 173,222.00 141,579.00 120,093.00 116,971.00

Employees

Capital 18.80 19.26 18.90 18.79 18.52

Adequacy Ratios
(%)

KEY
PERFORMAN
CE
INDICATORS

Tier 1 (%) 0.00 17.13 17.87 17.56 17.23

Tier 2 (%) 0.00 2.13 1.03 1.23 1.29

35
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

Net NPA To 1.98 0.27 0.00 0.00 0.00

Advances (%)

INTERPRETRATION

o Growth: HDFC Bank has shown robust growth in equity, deposits, borrowings, and
advances, indicating strong business expansion and customer base growth.
o Profitability: Significant increase in reserves and surplus indicates strong profitability.
o Liquidity and Investment: The bank maintains strong liquidity and has significantly
increased its investment assets.
o Capital Adequacy: The bank is well-capitalized with stable capital adequacy ratios.
o Asset Quality: While there is a slight increase in NPAs, the bank maintains relatively
low levels of net NPAs, indicating controlled asset quality issues.
o Expansion: The increase in branches and employees reflects the bank's ongoing
expansion efforts.

36
 PROFIT AND LOSS ACCOUNT OF ICICI BANK

PROFIT & LOSS ACCOUNT OF MAR 24 MAR 23 MAR 22 MAR 21 MAR 20

ICICI BANK (in Rs. Cr.)

12 mths 12 mths 12 mths 12 mths 12 mths

INCOME

Interest / Discount on Advances / 110,943.93 83,942.97 63,833.56 57,288.81 57,551.11

Bills

Income from Investments 28,630.99 20,888.46 16,409.27 16,539.78 14,673.21

Interest on Balance with RBI and 1,791.39 1,850.51 1,560.83 1,631.91 682.15
Other Inter-Bank funds

Others 1,524.63 2,549.40 4,570.89 3,657.77 1,891.85

TOTAL INTEREST EARNED 142,890.94 109,231.34 86,374.55 79,118.27 74,798.32

Other Income 22,957.77 19,831.45 18,517.53 18,968.53 16,448.62

TOTAL INCOME 165,848.71 129,062.79 104,892.08 98,086.80 91,246.94

EXPENDITURE

Interest Expended 68,585.22 47,102.74 38,908.45 40,128.84 41,531.25

Payments to and Provisions for 15,141.99 12,059.93 9,672.75 8,091.78 8,271.24

Employees

Depreciation 0.00 1,304.84 1,152.31 1,058.40 947.12

Operating Expenses (excludes 23,990.74 19,488.52 15,889.47 12,397.26 12,394.63

Employee Cost & Depreciation)

TOTAL OPERATING EXPENSES 39,132.73 32,873.24 26,733.32 21,560.83 21,614.41

Provision Towards Income Tax 13,599.56 10,254.48 6,297.68 4,665.66 3,746.03

Provision Towards Deferred Tax 0.00 270.25 971.72 -675.62 2,371.20

Other Provisions and Contingencies 3,642.93 6,665.58 8,641.42 16,214.40 14,053.23

TOTAL PROVISIONS AND 17,242.49 17,190.31 15,910.82 20,204.44 20,170.46

CONTINGENCIES

37
TOTAL EXPENDITURE 124,960.44 97,166.29 81,552.58 81,894.11 83,316.13

NET PROFIT / LOSS FOR THE 40,888.27 31,896.50 23,339.49 16,192.68 7,930.81
YEAR

NET PROFIT / LOSS AFTER EI & 40,888.27 31,896.50 23,339.49 16,192.68 7,930.81
PRIOR YEAR ITEMS

Profit / Loss Brought Forward 0.00 43,671.34 31,009.07 21,327.47 17,879.57

TOTAL PROFIT / LOSS 0.00 75,567.84 54,348.56 37,520.15 25,810.38

AVAILABLE FOR
APPROPRIATIONS

APPROPRIATIONS

Transfer To / From Statutory 0.00 7,974.20 5,834.90 4,048.20 1,982.80

Reserve

Transfer To / From Capital Reserve 0.00 87.82 1,574.20 130.23 395.44

Transfer To / From Revenue And 0.00 5,000.00 0.00 1,500.00 0.00

Other Reserves

Dividend and Dividend Tax for The 0.00 0.00 0.00 0.00 645.31
Previous Year

Equity Share Dividend 0.00 3,479.45 1,385.23 0.00 0.00

Tax On Dividend 0.00 0.00 0.00 0.00 0.00

Balance Carried Over To Balance 0.00 56,356.99 43,671.34 31,009.07 21,327.47

Sheet

TOTAL APPROPRIATIONS 0.00 75,567.84 54,348.56 37,520.15 25,810.38

OTHER INFORMATION

EARNINGS PER SHARE

Basic EPS (Rs.) 58.38 45.79 33.66 24.01 12.28

Diluted EPS (Rs.) 57.33 44.89 32.98 23.67 12.08

DIVIDEND PERCENTAGE

Equity Dividend Rate (%) 0.00 400.00 250.00 100.00 0.00

38
 INTERPETRAION

o ICICI Bank's profit and loss account reflects steady growth in both interest and non-
interest income over the years.
o While interest expenses increased, the bank managed to maintain and grow its
profitability.
o Increased provisions and contingencies suggest a proactive approach to risk
management and compliance with regulatory requirements.
o The bank maintained a positive trend in earnings per share, reflecting shareholder value
creation.
o Dividend payments varied but generally reflected the bank's profitability and dividend
distribution policy.

39
 BALANCE SHEET OF ICICI BANK

BALANCE SHEET MAR 24 MAR 23 MAR 22 MAR 21 MAR 20

OF ICICI BANK (in
Rs. Cr.)

12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND
LIABILITIES

SHAREHOLDER'S
FUNDS

Equity Share Capital 2,810.00 1,396.78 1,389.97 1,383.41 1,294.76

TOTAL SHARE 2,810.00 1,396.78 1,389.97 1,383.41 1,294.76

CAPITAL

Revaluation Reserve 0.00 3,062.46 3,195.66 3,093.59 3,114.87

Reserves and Surplus 235,589.32 195,495.25 165,659.93 143,029.08 112,091.29

Total Reserves and 235,589.32 198,557.72 168,855.59 146,122.67 115,206.16

Surplus

TOTAL 238,399.32 200,715.38 170,511.97 147,509.19 116,504.41

SHAREHOLDERS
FUNDS

Deposits 1,412,824.95 1,180,840.70 1,064,571.61 932,522.16 770,968.99

Borrowings 124,967.58 119,325.49 107,231.36 91,630.96 162,896.76

Other Liabilities and 95,322.73 83,325.08 68,982.79 58,770.37 47,994.99

Provisions

TOTAL CAPITAL 1,871,514.58 1,584,206.65 1,411,297.74 1,230,432.68 1,098,365.15

AND LIABILITIES

ASSETS

Cash and Balances with 89,711.70 68,526.17 60,120.82 46,031.19 35,283.96

Reserve Bank of India

40
Balances with Banks 50,214.31 50,912.10 107,701.54 87,097.06 83,871.78
Money at Call and
Short Notice

Investments 461,942.27 362,329.74 310,241.00 281,286.54 249,531.48

Advances 1,184,406.39 1,019,638.31 859,020.44 733,729.09 645,289.97

Fixed Assets 10,859.84 9,599.84 9,373.82 8,877.58 8,410.29

Other Assets 74,380.07 73,200.50 64,840.12 73,411.21 75,977.67

TOTAL ASSETS 1,871,514.58 1,584,206.65 1,411,297.74 1,230,432.68 1,098,365.15

OTHER
ADDITIONAL
INFORMATION

Number of Branches 0.00 5,900.00 5,418.00 5,266.00 5,324.00

Number of Employees 0.00 126,660.00 105,844.00 98,750.00 99,319.00

Capital Adequacy 16.33 18.34 19.16 19.12 16.11

Ratios (%)

KEY
PERFORMANCE
INDICATORS

Tier 1 (%) 0.00 17.60 18.35 18.06 14.72

Tier 2 (%) 0.00 0.74 0.81 1.06 1.39

ASSETS QUALITY

Gross NPA 27,961.68 299,860.70 33,294.92 40,841.42 40,829.09

Gross NPA (%) 2.16 2.87 4.00 8.00 6.00

Net NPA 5,377.79 51,500.70 6,931.04 9,117.66 9,923.24

Net NPA (%) 0.42 0.51 0.81 2.10 1.54

Net NPA To Advances 2.37 0.51 1.00 2.00 2.00

(%)

41
 INTERPRETRATION

o ICICI Bank's balance sheet reflects steady growth in equity, deposits, and advances over
the years.
o The bank maintained a strong liquidity position with significant cash balances and short-
term investments.
o While investments and lending activities increased, the bank also managed to maintain
capital adequacy and liquidity ratios within regulatory limits.
o Asset quality metrics showed some fluctuations but generally remained within
manageable levels, indicating effective risk management practices.

42
 o 6.1 REVENUE

DATA HDFC BANK ICICIBANK

2019 12634 10236

2020 12403 11014

2021 17312 11351

2022 17718 11515

2023 18118 11615

TABLE NO 6.1

AMOUNT IN CRORE YEARLY

₹ 18,118.00
₹ 17,718.00
HDFC BANK ICICIBANK
₹ 17,312.00
₹ 12,634.00

₹ 12,403.00

₹ 11,615.00
₹ 11,515.00
₹ 11,351.00
₹ 11,014.00
₹ 10,236.00

2019 2020 2021 2022 2023

Figure 6.1

INTERPRETATION

• HDFC Bank demonstrates strong and consistent growth throughout

2023, especially notable in the second half of the year.
• ICICI Bank also shows growth but at a slower rate compared to HDFC
Bank.
• The financial performance of HDFC Bank is significantly higher than
ICICI Bank across all the quarters presented.

43
 o 6.2 NET WORTH

YEARS HDFC BANK ICICI BANK

2020 ₹ 1,54,174.00 ₹ 1,29,755.00

2021 ₹ 2,10,443.00 ₹ 1,67,176.00

2022 ₹ 2,48,047.00 ₹ 1,88,033.00

2023 ₹ 2,90,298.00 ₹ 2,21,185.00

TABLE NO 6.2

HDFC BANK ICICI BANK

YEARLY

₹ 2,90,298.00
₹ 2,48,047.00

₹ 2,21,185.00
₹ 2,10,443.00

₹ 1,88,033.00
₹ 1,67,176.00
₹ 1,54,174.00

₹ 1,29,755.00

2020 2021 2022 2023

Figure 6.2

INTERPRETATION

• HDFC Bank shows strong, consistent growth over the four years, with financial
amounts increasing every year. The bank's financial base nearly doubled from 2020 to
2023.
• ICICI Bank also exhibits steady growth, with financial amounts increasing each year.
While ICICI Bank's financial growth is notable, HDFC Bank's financial base and
growth rate are higher.
• Both banks demonstrate robust financial health and growth trends, but HDFC Bank
leads in overall financial performance across the years analyzed PROFIT

44
6.3 YEARLY PERFORMANCE

Row Labels HDFC BANK ICICIBANK

2019 17718 11515

2020 12634 10236

2021 12403 11014

2022 17312 11351

2023 18718 11815

TABLE NO 6.3

₹ 18,718.00
₹ 17,718.00
₹ 17,312.00
HDFC BANK ICICI BANK
₹ 12,634.00

₹ 12,403.00

₹ 11,815.00
₹ 11,515.00
₹ 11,315.00
₹ 11,014.00
₹ 10,236.00

2019 2020 2021 2022 2023

Figure 6.3

INTERPRETRATION

• HDFC Bank demonstrates strong and consistent growth throughout 2023, especially
notable in the second half of the year.
• ICICI Bank also shows growth but at a slower rate compared to HDFC Bank.
• The financial performance of HDFC Bank is significantly higher than ICICI Bank
across all the quarters presented.

45
o Return On Equity 6.4

YEARS HDFC BANK ICICI BANK

2019 16.5 3.25

2020 16.4 7.25

2021 14.61 12.56

2022 16.67 14.94

2023 17 17.53
TABLE 6.4

RE T URN IN %
HDFC BANK ICICI BANK

20
17.53
18 16.67 17
16.5 16.4
16 14.61 14.94

14 12.56

12

10
7.25
8

6
3.25
4

0
2019 2020 2021 2022 20.23

Figure 6.4
INTERPRETRATION

This data suggests that while HDFC Bank started with a much stronger growth performance,
ICICI Bank has shown impressive improvements and has managed to overtake HDFC Bank
in growth rate by the end of the five-year period. This could indicate a successful strategy
implementation or market adaptation by ICICI Bank in the later year

46
Return On Assets 6.5

HDFC
NO. of year BANK ICICI BANK

2019 1.83 0.36

2020 1.89 0.77

2021 1.9 1.39

2022 1.94 1.77

2023 1.95 2.13

TABLE NO 6.5

RETURN IN %
HDFC BANK ICICI BANK

2.5

2.13

1.9 1.94 1.95

2 1.89
1.83
1.77

1.5 1.39

1
0.77

0.5 0.36

0
2019 2020 2021 2022 2023

Figure 6.5

INTERPRETRATION

This data suggests that while HDFC Bank started with a stronger ROA, ICICI Bank has
shown remarkable improvement and efficiency gains over the period, eventually surpassing
HDFC Bank in terms of ROA. This indicates that ICICI Bank has become more effective in
converting its assets into net income over time, reflecting successful strategic initiatives or
operational enhancements

47
Net Interest Margin 6.6

NO. OF
YEAR HDFC BAN ICICI BANK

2019 3.76 3.09

2020 3.64 3.78

2021 3.83 3.4

2022 3.82 3.55

2023 4.04 4.14

TABLE NO 6.6

MARGIN IN %
HDFC BAN ICICI BANK

4.5 4.14
4.04
3.76 3.78 3.83 3.82
4 3.64 3.55
3.4
3.5
3.09
3

2.5

1.5

0.5

0
2019 2020 2021 2022 2023

Figure 6.6

INTERPRETRATION

This data suggests that while HDFC Bank maintained a higher and more stable net profit margin
in the early years, ICICI Bank showed greater volatility but ultimately improved its efficiency
significantly, surpassing HDFC Bank in the final year. This indicates a successful enhancement in
profitability management for ICICI Bank towards the end of the period.

48
 6.B Demographic Profile Investors
Table 6.B : Demographic profile investors
Demographics No. of respondents Percentage of respondents
Age
Less than 20 years 0 0
20-40 20 40
Greater than 40 30 60
Total 50 Total 50
Qualification
Matric 0 0
Under Graduate 25 50
Post Graduate 25 50

Total 50 Total 100

Occupation
Service 19 38
Profession 6 12
Business 15 30
Student 10 20

Total 50 Total 100

Income (per month)
Less than Rs.20000
Rs.20000-40000 10 20
Greater than 40000 25 50
15 30
Total 100 Total 100

Analysis & Interpretation: It was found that the major population of investors was

greater than 40yrs and 60% was of 20-40 yrs. And 50% respondents were under

graduate and 50% were post graduate. 35% of respondents were doing service. And

majority of respondents i.e. 50% earn income between Rs.20000-40000 per month. It

means majority of investors was greater than

40years having income in between Rs 20000-40000.

49
Statement 6.1.: How would you rate the overall financial stability of HDFC Bank and ICICI
Bank?
Table No 6.1.: Rate the overall financial stability of HDFC Bank and ICICI Bank.
No. of Percentage of
Ratting
Respondents Respondents

Excellence 18 36%
Good 15 30%
Average 10 20%

Bad 7 14%

Total 50 100%

Table6.1
Rate the overall financial stability of HDFC Bank and ICICI Bank.

ratting

14%
36%
20%

30%

Excellence Good Average Bad

Figure 6.1
Analysis & Interpretation
• Excellence (36%): The largest segment, shown in green, indicates that a majority of
respondents, 18 out of 50, rated the subject as excellent. This suggests a high level of
satisfaction or quality.
• Good (30%): The red segment represents 15 respondents who rated the subject as
good, indicating a positive reception, though not as high as the excellence category.
• Average (20%): Represented by the yellow segment, 10 respondents felt the subject
was average, suggesting it meets expectations but doesn’t exceed them.
• Bad (14%): The smallest segment, in blue, shows that 7 respondents rated the subject
as bad, indicating areas that might need improvement.

50
Statement 6.1.: What is your perception of HDFC Bank’s and ICICI Bank’s profitability compared
to industry ?
Table No.2: perception of HDFC Bank’s and ICICI Bank’s profitability compared to industry.

No. of Percentage of
Perception
Respondents Respondents

Higher 15 30%

Similar 18 36%

lower 15 30%

Bad 5 10%

Total 50 100%

Figure no. 6.perception of HDFC Bank’s and ICICI Bank’s profitability compared to industry.

perception

14%
36%
20%

30%

Excellence Good Average Bad

Analysis & Interpretation HDFC Bank and ICICI Bank are both strong performers in

the Indian banking industry. HDFC Bank’s profitability is notable within its peer group,

while ICICI Bank’s growth in core operating profit and net interest income highlights

its robust financial health. Both banks’ strategies and performance metrics suggest they

are well-positioned to maintain their profitability in the competitive banking landscape.

51
Statement 6.3: How satisfied are you with HDFC Bank’s and ICICI Bank’s return on assets
(ROA) No. of Percentage of
Satisfaction
Respondents Respondents

Very satisfied 15 30%

satisfied 18 36%

Normal 15 30%

Not satisfied 5 10%

Total 50 100%

Figure no. 6.3 How satisfied are you with HDFC Bank’s and ICICI Bank’s return on assets (ROA)

satisfaction

14%
36%
20%

30%

Excellence Good Average Bad

Analysis & Interpretation

Customers and investors looking at ROA as a measure of bank performance would likely
be satisfied with both HDFC Bank and ICICI Bank. Their ROAs indicate that they are
managing their assets effectively to generate profits, which is a positive sign for
stakeholders.

52
Statement 6.4: Rate HDFC Bank’s and ICICI Bank’s efficiency in managing their
operating expenses.

No. of Percentage of
Ratting
Respondents Respondents

Highly efficient 15 30%

Efficient 20 40%

Natural 15 30%

Total 50 100%

Figure no. 6.4 Rate HDFC Bank’s and ICICI Bank’s efficiency in managing their operating
expenses.

ratting

30% 30%

40%

Highly efficient Efficient Efficient

Analysis & Interpretation

HDFC Bank’s significant increase in operating expenses may be indicative of aggressive

expansion or investment, which could lead to higher future revenues but currently suggests
a decrease in efficiency. In contrast, ICICI Bank’s moderate increase and focus on digital
efficiency suggest a more conservative and potentially more efficient approach to expense
management. Investors and analysts typically prefer a lower operating expense ratio as it
indicates a bank’s ability to convert income into profit. It’s important to consider these
figures in the context of each bank’s overall strategy and market conditions. For personalized
financial advice, consulting with a financial advisor is recommended. This analysis is based
on publicly available data and is not intended as financial advice.

53
Statement 6.5: How would you assess HDFC Bank’s and ICICI Bank’s asset quality
in terms of non-performing assets (NPAs)?

No. of Percentage of
Ratting
Respondents Respondents

Excellence 18 36%
Good 15 30%
Average 10 20%

Bad 7 14%

Total 50 100%

Figure no.6.5 HDFC Bank’s and ICICI Bank’s asset quality in terms of non-
performing assets (NPAs)?

ratting

14%
36%
20%

30%

Excellence Good Average Bad

Analysis & Interpretation

• Excellence (36%): The largest segment, shown in green, indicates that a majority of
respondents, 18 out of 50, rated the subject as excellent. This suggests a high level of
satisfaction or quality.
• Good (30%): The red segment represents 15 respondents who rated the subject as good,
indicating a positive reception, though not as high as the excellence category.
• Average (20%): Represented by the yellow segment, 10 respondents felt the subject was
average, suggesting it meets expectations but doesn’t exceed them.
• Bad (14%): The smallest segment, in blue, shows that 7 respondents rated the subject as
bad, indicating areas that might need improvement

54
Statement 6.6: What is your opinion on HDFC Bank's and ICICI Bank's liquidity
position?

No. of Percentage of
Satisfaction
Respondents Respondents

Very satisfied 15 30%

satisfied 18 36%

Normal 15 30%

Not satisfied 5 10%

Total 50 100%

Figure no. 6.6 customers opinion on HDFC Bank's and ICICI Bank's liquidity position

opinion

14%
36%
20%

30%

Excellence Good Average Bad

Analysis & Interpretation

Customers and investors looking at opinion as a measure of bank performance would

likely be satisfied with both HDFC Bank and ICICI Bank. Their opinion indicate that
they are managing their assets effectively to generate profits, which is a positive sign for
stakeholders.

55
 Statement 6.7: How confident are you in HDFC Bank's and ICICI Bank's
ability to meet their short-term obligations?
No. of Percentage of
Confident
Respondents Respondents

Very Confident 15 30%

Confident 10 20%

Natural 20 40%

Not Confident 5 10%

Total 50 100%

Figure no. 6.7 confident about HDFC Bank's and ICICI Bank's ability to meet their
short-term obligations

confident

10%

30%

40%

20%

Very Confident Confident Natural Not Confident

Analysis & Interpretation

Both banks prioritize efficient working capital management, which is crucial for meeting
short-term obligations. Their strategies, liquidity, and compliance contribute to their
confidence in handling short-term financial responsibilities. Remember that these analyses
are based on publicly available data and should not be considered financial advice

56
Statement 6.8: Rate the effectiveness of HDFC Bank's and ICICI Bank's capital management
strategies.

No. of Percentage of
Ratting
Respondents Respondents

Highly efficient 15 30%

Efficient 10 10%

Natural 16 32%

Ineffective 9 18%

Total 50 100%

Figure no. 6.8 effectiveness of HDFC Bank's and ICICI Bank's capital management strategies.

ratting

20%

33%

36% 11%

Highly efficient Efficient Natural Ineffective

Analysis & Interpretation

The pie chart from the image you provided, while not directly linked to the banks’ specific
data, suggests a general sentiment of efficiency in capital management, with the majority of
the segments indicating ‘Highly efficient’ and ‘Efficient’ ratings. This aligns with the
positive assessments found in the financial analyses.

57
Statement 6.9 How would you assess HDFC Bank's and ICICI Bank's market share growth in
their respective sectors?

No. of Percentage of
Market share
Respondents Respondents
growth
Growing 22 44%

Stable 17 34%

Declining 11 22%

Total 50 100%

Figure no. 6.9: HDFC Bank's and ICICI Bank's market share growth in their respective sectors?

market share growth

22%

44%

34%

Growing Stable Declining

Analysis & Interpretation

The pie chart from the image you provided, while not directly linked to the banks’ specific
data, suggests a general sentiment of growth and stability in market share, with the
majority of the segments indicating ‘Growing’ and ‘Stable’ ratings. This aligns with the
positive assessments found in the financial analyses.

58
Statement 6.10 Rate HDFC Bank's and ICICI Bank's ability to manage risk
effectively.

No. of Percentage of
Ratting
Respondents Respondents

Highly efficient 15 30%

Efficient 10 10%

Natural 16 32%

Ineffective 9 18%

Total 50 100%

Figure no 6.10 Rate HDFC Bank's and ICICI Bank's ability to manage risk effectively.

ratting

20%
33%

36% 11%

Highly efficient Efficient Natural Ineffective

Analysis & Interpretation

HDFC Bank and ICICI Bank have demonstrated a strong commitment to risk management
through their structured frameworks, regular stress testing, and use of advanced
technologies. Their proactive approaches to identifying and mitigating risks reflect
positively on their ability to manage risk effectively. The pie chart image you provided,
while not directly linked to the banks’ specific data, suggests a general sentiment of
efficiency in risk management, with a majority indicating ‘Highly efficient’ and ‘Efficient’
ratings. This aligns with the positive assessments found in the financial analyses.

59
 CHAPTER: 7 OBSERVATIONS & FINDING

Findings:
• Growth Trends: HDFC Bank has consistently shown robust growth in various financial
metrics such as equity, deposits, advances, and revenues compared to ICICI Bank.
However, ICICI Bank also demonstrates steady growth over the years.

• Profitability: Both banks have maintained strong profitability, as evidenced by

increasing net profits over the years. HDFC Bank has shown a higher net profit margin
compared to ICICI Bank.

• Asset Quality: Both banks have managed their asset quality well, with relatively low
levels of non-performing assets (NPAs). However, HDFC Bank has consistently
maintained lower NPAs compared to ICICI Bank.

• Liquidity and Capital Adequacy: Both banks have strong liquidity positions and meet
regulatory capital adequacy requirements. HDFC Bank has generally higher capital
adequacy ratios compared to ICICI Bank.

• Operational Efficiency: ICICI Bank has shown improvements in operational efficiency

metrics such as Return on Equity (ROE), Return on Assets (ROA), and Net Interest
Margin (NIM) over the years, eventually surpassing HDFC Bank in some aspects.

Age:
The majority of investors are over 40 years old (60%).
A significant portion (40%) are between 20-40 years old.
There are no investors below 20 years old.

Qualification:
Equal distribution of qualifications: 50% are undergraduates and 50% are postgraduates.
No respondents with only matric qualifications.

60
Occupation:
Diverse occupational backgrounds with a significant number in service (38%).
Business (30%), students (20%), and professionals (12%) also represent a notable share of
the respondents.
Income:

Income distribution is fairly spread out.

Majority (50%) earn more than Rs. 40,000 per month.
30% earn between Rs. 20,000-40,000, and 20% earn less than Rs. 20,000.
Financial Stability of HDFC Bank and ICICI Bank

Overall Financial Stability:

36% of respondents rate the banks' financial stability as excellent.
30% rate it as good, 20% as average, and 14% as bad.
Indicates a high level of confidence in the banks' stability.
Profitability Perception Compared to Industry

Profitability:
36% believe the banks' profitability is similar to the industry standard.
30% rate it higher, and another 30% rate it lower.
Only 10% perceive it as bad, indicating overall positive sentiment towards profitability.
Satisfaction with Return on Assets (ROA)

Return on Assets:
36% of respondents are satisfied, while 30% are very satisfied.
30% consider it normal, and 10% are not satisfied.
Majority satisfaction indicates effective asset management by both banks.
Efficiency in Managing Operating Expenses

Operating Expenses:
40% find the banks efficient, 30% highly efficient, and 30% neutral.
No respondents rated them as inefficient, highlighting effective expense management.

61
Asset Quality in Terms of Non-Performing Assets (NPAs)

NPAs:
36% rate the asset quality as excellent, and 30% as good.
20% find it average, and 14% rate it as bad.
Majority view the asset quality positively, suggesting strong asset management practices.
Liquidity Position

Liquidity:
36% are satisfied with the banks' liquidity positions.
30% are very satisfied, and 30% rate it as normal.
Only 10% are not satisfied, indicating overall positive perception of liquidity management.
Confidence in Meeting Short-term Obligations

Short-term Obligations:
30% are very confident and 20% are confident in the banks' ability.
40% are neutral, and 10% are not confident.
Indicates a general confidence in the banks' working capital management.
Effectiveness of Capital Management Strategies

Capital Management:
30% rate the strategies as highly efficient, and 20% as efficient.
32% are neutral, and 18% find them ineffective.
Suggests a generally positive but varied perception of capital management efficiency.
Market Share Growth

Market Share:
44% perceive the market share as growing, and 34% as stable.
22% see it as declining.
Majority view indicates confidence in market positioning.
Risk Management Ability

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Risk Management:
30% rate risk management as highly efficient, and 20% as efficient.
32% are neutral, and 18% find it ineffective.
Reflects overall confidence in the banks' ability to manage risks effectively.

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 CHAPTER: 8 SUGGESATION / RECOMMENDATION

• Bank should focus on increasing the current assets and decreasing the current liability
to maintain satisfactory level of current ratio.
• The bank needs to improve the long-term financial position.
• The bank should follow the recommendations of financial auditor.
• The bank should take steps to improve its overall efficiency.
• The bank has to reduce its overall debt.
• The Company can invest more in current assets than in working capital.
• The Company can improve the net profit by reducing interest and financial charges.
• The Company has to increase its current asset and improves the sort-term financial position
and cost of goods sold has be reduced.
• The Return on Assets Ratio is becoming lower every year. It shows that bank’s management
having less efficient in managing the balance sheet in generating profits. So, I suggest the
bank to focus on generating profits for the Bank.
• The Ratio of Interest Income to Total Assets was lower in the past years. It shows that
Interest Income on loans are reduced when it is compared to the assets of the bank. I suggest
the bank to focus more on lending loans to the customers.
• The CASA Ratio is decreasing after 2017- 18, the term deposits are high in these years, and
current & Savings account deposits are lower when it is compared to the term deposits. So,
the bank is paying more interest on the term deposits, it may reduce the profit of the concern.
The Bank has to focus on the customers who made current and savings deposits on the bank.
• The Net Profit Margin is continuously increasing every year, I suggest the Management of
Bank to go on the same way and to improve additional technology factors which make
customer more user-friendly and also it helps the bank to remain No.1 Bank by customers
in India in the future years also.
• Banks should obey the RBI norms and provide facilities as per the norms, which are not
being followed by the banks. While the customer must be given prompt services and the
bank officer should not have any fear on mind to provide the facilities as per RBI norms to
the units going

• ICICI bank can multiply return on assets by increasing assets or by increasing

profitability of the bank. Profitability may be increased by granting more loans, earning
higher interest on loans and passing the same to depositors.,

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• ICICI bank has to invest its cash in order to give maximum benefits to ICICI bank and
charge more interest from the beneficiary companies
• The banks has to maintain proper reserve for the profitability of the bank. The banks has to
maintain proper assets to have a good long term financial. t.
• So it is suggested that ICICI Bank have to increase its income and reduce its expenses to
maximize the profit.
• ICICI bank should reduce variable cost and improve the customer loyalty and improve
services offered to customer
• Market Positioning: Analyze HDFC Bank's strategies for market expansion and customer
acquisition, which have contributed to its strong growth. Evaluate ICICI Bank's strategies
for catching up with competitors and gaining market share.
• Risk Management: Investigate the risk management practices of both banks, particularly in
managing asset quality and provisions for bad loans. Compare the effectiveness of risk
mitigation strategies between the two banks.
• Operational Efficiency: Study the initiatives undertaken by ICICI Bank to improve
operational efficiency and profitability, leading to enhanced ROE, ROA, and NIM. Identify
areas where HDFC Bank can further improve efficiency to maintain its competitive edge.
• Investment Strategies: Examine the investment portfolios of both banks and assess their
impact on overall profitability and risk management. Provide recommendations for
optimizing investment strategies to maximize returns while minimizing risks.
• Regulatory Compliance: Evaluate how both banks comply with regulatory requirements,
particularly in terms of capital adequacy, liquidity management, and reporting standards.
Provide suggestions for ensuring ongoing compliance with regulatory guidelines.
• Future Outlook: Predict future trends in the banking industry and assess how HDFC Bank
and ICICI Bank are positioned to capitalize on these opportunities. Provide
recommendations for strategic initiatives to sustain growth and profitability in the long term.
• From the questionnaire of the following point to be noted

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 CHAPTER: 9 CONCLUSION

Over the years the Indian Banking Sector has passed through various phases. The first phase
is considered as the ‘infancy’ phase up to independence i.e. 1974. During this time period
banking system developed on the privatized basis. The total numbers of commercial banks
have been 648 with total deposits of Rs. 1.80 crore, advances of Rs. 475 crore and Credit
Deposit ratio of 43.99 percent on the eve of independence. For the development and the
growth of banking sector several important steps have been taken up such as nationalization
of Reserve Bank of India in 1948, enactment of Banking Regulation Act in 1949, emergence
of State Bank of India in 1955 and its subsidiary banks during 1959- 60 etc. In 1967 Indian
Government 338 initiated the scheme of social control and 14 major Indian Scheduled
Commercial Banks have been nationalized. It have been reported that 73 scheduled
commercial banks having total deposits of Rs. 4661 crore, advances of Rs. 3599 crore and
credit-deposit ratio of 77.5 percent on the eve of nationalization. Nationalization of banks
has been considered as one of the bold and major steps in the process of banking sector
reforms in India. As a result of this Public Sector Banks control over 90 percent of banking
business. Indian banking structure emerged as strong and viable with rigorous control
enforced by the RBI during this period.
The post nationalization period has been earmarked with rapid branch expansion, wide
geographical penetration impressive growth in deposit mobilization as well as in credit
expansion. However, there have been several adverse factors such as high reserve
requirements deterioration in quality of loan assets, priority and weaker section advances,
high fixed and operating costs, organizational weakness, lack of internal control, defective
accounting policies, under capitalization, political interference etc. which severely damaged
productivity, profitability and efficiency of banking sector.
Since Independence Banking Sector has been dominated by Private Sector Banks, 14 major
scheduled banks were nationalized in the year 1969 and 6 more were nationalized in the year
1980. But Reserve Bank of India has issued guidelines immediately after liberalization,
Privatization and a globalization. Policy adopted by India in 1993 RBI has issued specific
guidelines for Private Banks. Today Private Sector Banks are comparatively performing
better than Public Sector Banks therefore the study is mainly focusing on three private banks
namely AXIS, HDFS and ICICI Bank for the period 2005-06 to 2014-15. The following
revelations

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The main aim of this study to cheque the financial performance of this banks of these two
private leading banks. financial statement analysis plays an important role to check the
financial performance.
This study reveals that the performance of HDFC bank Is far morebetter than the performance
of ICICI bank. This study reveals the overall performance of these two banks with the
respected to their consecutive five year Past data and from these study I got to know that

ICICI bank performance is not satisfactory as compared with HDFC bank.

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 CHAPTER :10 BIBLIOGRAPHY

• HDFC Integrated Annual Report 2021 -2023.

• HDFC Integrated Annual Report 2020 -2022.
• HDFC Integrated Annual Report 2019 -2021.
• HDFC Integrated Annual Report 2018 -2018.
• HDFC Integrated Annual Report 2017 -2019
• ICICI Bank Annual Report FY2023.
• ICICI Bank Annual Report FY2022.
• ICICI Bank Annual Report FY2021.
• ICICI Bank Annual Report FY2020.
• ICICI Bank Annual Report FY2019

REFERENCE
▪ https://www.moneycontrol.com/annuareport/hdfcbank/directors report/HDF01#HDF01
▪ https://www.hdfcbank.com/personal/about - us/investor -relations/financial -results
▪ https://www.moneycontrol.com/financials/ici cibank/balance -sheetVI/ICI02
▪ https://www.macrotrends.net/stocks/charts/IB N/icici -bank/financial -statements
▪ https://www.icicibank.com/aboutus/annual.pa ge
▪ https://www.icicibank.com/managed - assets/docs/investor/annual -reports/2021/ICICI - Bank
-Annual -Report -FY2021.pdf

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 CHAPTER:11 ANNEXURE

1. How would you rate the overall financial stability of HDFC Bank and ICICI Bank?
a) Excellent
b) Good
c) Average
d) Bad

2. What is your perception of HDFC Bank's and ICICI Bank's profitability compared to
industry peers?
a) Higher
b) Similar
c) Lower
d) Unsure

3. .Rate HDFC Bank's and ICICI Bank's efficiency in managing their operating expenses.
a. Highly efficient
b. Efficient
c. Neutral

4. How would you assess HDFC Bank's and ICICI Bank's asset quality in terms of non-
performing assets (NPAs)?
a. Excellent
b. Good
c. Average
d. Poor

5. .What is your opinion on HDFC Bank's and ICICI Bank's liquidity position?
a. Strong
b. Satisfactory
c. Neutral
d. Weak

6. .How confident are you in HDFC Bank's and ICICI Bank's ability to meet their short-term
obligations?
a. Very confident
b. Confident
c. Neutral
d. Not confident

7. .Rate the effectiveness of HDFC Bank's and ICICI Bank's capital management strategies.
a. Highly effective
b. Effective
c. Neutral
d. Ineffective
e. Highly ineffective

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8. How would you evaluate HDFC Bank's and ICICI Bank's asset growth compared to their
peers?
a. Higher
b. Similar
c. Lower

9. Rate the transparency and disclosure practices of HDFC Bank and ICICI Bank.
a. Excellent
b. Good
c. Average
d. Poor

10. How would you assess HDFC Bank's and ICICI Bank's market share growth in their
respective sectors?
a. Growing
b. Stable
c. Declining
d. Unsure

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