A

PROJECT REPORT
ON

“A COMPREHENSIVE FINANCIAL STUDY OF HDFC BANK LTD”

Submitted to
G.S. College of Commerce & Economics Nagpur,

Affiliated to

Rashtrasant Tukadoji Maharaj Nagpur University,

In partial fulfillment for the award of the degree of

Bachelor of Business Administration

Submitted by
ANIKET RAJESH KHAWSHI

Under the Guidance of

DR. AFSAR SHEIKH

G.S College of Commerce and Economics (Autonomous),

Nagpur
Academic year 2023-24
 G.S College of Commerce and Economics (Autonomous),
Nagpur
Academic year 2023-24

CERTIFICATE

This is to certify that “ANIKET RAJESH KHAWSHI” has submitted the project report

titled “A COMPREHENSIVE FINANCIAL STUDY OF HDFC BANK LTD”, towards

partial fulfillment of BACHELOR OF BUSINESS ADMINISTRATION degree

examination. This has not been submitted for any other examination and does not form part

of any other course undergone by the candidate.

It is further certified that he has ingeniously completed his project as prescribed by

Rashtrasant Tukadoji Maharaj Nagpur University, Nagpur.

DR. AFSAR SHEIKH DR. AFSAR SHEIKH

(Project Guide) (Coordinator)

Place:- Nagpur
Date:-
 G.S College of Commerce and Economics (Autonomous),
Nagpur
Academic year 2023-24

DECLARATION

I here-by declare that the project with title “A COMPREHENSIVE FINANCIAL STUDY

OF HDFC BANK LTD” has been completed by me in partial fulfillment of BACHELOR

OF BUSINESS ADMINISTRATION degree examination as prescribed by Rashtrasant

Tukadoji Maharaj Nagpur University, Nagpur and this has not been submitted for any other

examination and does not form the part of any other course undertaken by me.

Place:- Nagpur ANIKET.R.KHAWSHI

Date:-
 G.S College of Commerce and Economics (Autonomous),
Nagpur
Academic year 2023-24

ACKNOWLEDGEMENT

With immense pride and sense of gratitude, I take this golden opportunity to express my

sincere regards to Dr. Praveen Mustoor Principal, of G.S. College of Commerce &

Economics Nagpur.

I am extremely thankful to my project guide Dr. Afsar Sheikh for his guideline thought out

the project. I tender sincere regards to co-ordinator, Dr. Afsar Sheikh for giving me

outstanding guidance enthusiastic suggestions and evaluable encouragement which helped

me in the completion of the project.

I will fail in my duty if I do not thank the non-teaching staff of the college for their co-

operation.

I would like to thank all those who helped me in making this project complete and

successful.

Place:- Nagpur ANIKET.R.KHAWSHI

Date:-
 INDEX
Sr. No. Title Page No.

1. Introduction 1-5

2. Company Profile 6-11

3. Research Study
 Relevance of study
 Objective
 Need of study 12-17
 Limitation
 Hypothesis

4. Literature Review 18-19

5. Research Methodology 20-21

6. Data Analysis & Interpretation 22-30

7. Hypothesis testing 31-32

8. Finding 33-34

9. Conclusion 35-36

10. Bibliography 37-38

Annexure 39-45
 G.S. COLLEGE OF COMMERCE AND ECONOMICS, NAGPUR

Chapter 1:

INTRODUCTION

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INTRODUCTION

The Housing Development Finance Corporation Limited (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, as part of

RBI's liberalisation of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in

the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced

operations as a Scheduled Commercial Bank in January 1995.

HDFC Bank Ltd., headquartered in Mumbai, India, is one of the leading private sector banks in India and is

renowned for its robust financial services offerings. Established in 1994, HDFC Bank has grown rapidly to

become one of the largest banks in India by assets, market capitalization, and branch network.

HDFC Bank Limited is an Indian financial services company was incorporated in August 1994. HDFC

Bank is the fifth or sixth largest bank in India by assets and the first largest bank by market capitalization

as of November 1, 2012. The bank was promoted by the Housing Development Finance Corporation, a

premier housing finance company (set up in 1977) of India.

HDFC Bank deals with three key business segments:

1) Wholesale Banking Services

2) Retail Banking Services

3) Treasury.

1) Wholesale banking:

It provides loans, non-fund facilities and transaction services to corporate, public sector units, government

bodies, financial institutions and medium scale enterprises, and other banking business, segment includes

income from banking activities, such as credit cards, debit cards, third party product distribution, primary

dealership business and the associated costs.

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2) Retail banking services:

It serves retail customers through a branch network and other delivery channels.

3) Treasury:

It primarily consists of net interest earnings from the Bank’s investment portfolio, money market

borrowing and lending, gains or losses on investment operations and on account of trading in foreign

exchange and derivative contracts.

HDFC Bank Limited (HDFC Bank) is a banking company engaged in providing a range of banking and

financial services, including commercial banking and treasury operations.

The objective is to provide favorable and best banking facilities for the target customers in retail and

wholesale and maximize profitability.

Founding and Background

HDFC Bank was incorporated in August 1994 as a wholly-owned subsidiary of Housing Development

Finance Corporation Limited (HDFC), India's premier housing finance institution. The bank was

established with the objective of providing a wide range of financial products and services to retail,

corporate, and institutional customers.

Business Model

HDFC Bank operates under a universal banking model, offering a comprehensive suite of banking and

financial services. Its offerings include retail banking, wholesale banking, treasury services, and other

financial products such as credit cards, loans, insurance, and investment banking services. The bank caters

to a diverse customer base ranging from individuals and small businesses to large corporations and

government entities.

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Market Presence

HDFC Bank has a widespread presence across India with a vast network of branches, ATMs, and digital

banking channels. Its extensive branch network enables it to serve customers in urban, semi-urban, and

rural areas, thereby contributing to financial inclusion efforts in the country. Additionally, HDFC Bank has

expanded its international footprint with operations in key global financial centers.

Technology and Innovation

HDFC Bank is renowned for its focus on technology and innovation in delivering banking services. It has

been at the forefront of digital transformation in the Indian banking industry, offering innovative digital

banking solutions such as internet banking, mobile banking, and digital wallets. The bank's emphasis on

technology-driven processes has enhanced customer convenience, efficiency, and security.

Corporate Governance and Sustainability

HDFC Bank places a strong emphasis on corporate governance, transparency, and ethical business

practices. It adheres to the highest standards of governance, guided by a well-defined framework and

regulatory compliance. The bank is committed to sustainability and social responsibility initiatives,

integrating environmental, social, and governance (ESG) considerations into its business operations and

decision-making processes.

Financial Performance

HDFC Bank has consistently delivered strong financial performance, characterized by robust revenue

growth, profitability, and asset quality. Its prudent risk management practices, diversified revenue streams,

and efficient cost management have contributed to its sustained success. The bank's financial strength and

stability have earned it recognition as a leading player in the Indian banking industry.

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HISTORY OF HDFC BANK

HDFC BANK LTD was incorporated in August 1994 in the name of 'HDFC Bank Limited ,with its

registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank

in January 1995.If ever there was a man with a mission it was Hasmukhbhai Parekh, Founder and

Chairman-Emeritus, of H.D.F.C Group. HDFC BANK LTD was amongst the first to set up a bank in the

Private sector. The bank was incorporated on 30th August 1994 in the name of ‘HDFC Bank Limited’,

with its registered office in Mumbai. It commenced operations as a Scheduled Commercial Bank on 16th

January 1995. The bank has grown consistently and is now amongst the leading players in the industry.

In 1994, HDFC Ltd received an "in principle" approval from the Reserve Bank of India (RBI) to establish a

private sector bank, following RBI's policy for liberalization of the Indian banking industry. In August of

that year, HDFC Bank Limited was incorporated with a registered office in Mumbai. It became a

Scheduled Commercial Bank in January 1995 and commenced operations. In April 2022, the merger of

HDFC Ltd and HDFC Bank was announced. HDFC Ltd is a leader in housing finance, while HDFC Bank

offers a broad range of financial products, including home loans. As of January 31, 2024, HDFC Bank's

distribution network comprised 8,143 branches and 20,688 ATMs/Cash Recycler Machines across 3,836

cities/towns. The amalgamation of HDFC Ltd's 737 outlets, including 214 offices of HDFC Sales Private

Limited, into the bank's network has been completed. The bank also has branches in four countries and

representative offices in Dubai, London, and Singapore. It offers home loan products to non-resident

Indians and persons of Indian origin.

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Chapter 2:

COMPANY PROFILE

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COMPANY PROFILE

The Housing Development Finance Corporation Limited or HDFC Ltd was among the first financial

institutions in India to receive an “in principle” approval from the Reserve Bank of India (RBI) to set up a

bank in the private sector. This was done as part of RBI’s policy for liberalisation of the Indian banking

industryin1994.

HDFC Bank was incorporated in August 1994 in the name of HDFC Bank Limited, with its registered

office in Mumbai, India. The bank commenced operations as a Scheduled Commercial Bank in January

1995.

On April 4, 2022 the merger of India’s largest Housing Finance Company, HDFC Limited and the largest

private sector bank in India, HDFC Bank was announced. HDFC Ltd, over the last 45 years has developed

one of the best product offerings making it a leader in the housing finance business. HDFC Bank enables

seamless delivery of home loans as a part of its wide product suite catering to urban, semi urban and rural

India.

As of February 29, 2024, the Bank’s distribution network was at 8,192 branches and 20,760 ATMs / Cash

Recycler Machine ( Cash deposit & withdrawal ) across 3,836 cities / towns. HDFC Ltd.’s distribution

network comprising 737 outlets, which include 214 offices of HDFC Sales Private Limited stands

amalgamated into the Bank’s network. The Bank’s international presence includes branches in 4 countries

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and 3 representative offices in Dubai, London and Singapore offering Home Loan products to Non-

Resident Indians and Persons of Indian Origin

The HDFC Legacy

HDFC Ltd was founded in 1977, when the Late Shri. HT Parekh, Founder and Chairman of HDFC Ltd,

dreamt of millions of middle-class citizens of India owning a home and not having to wait till their

retirement. Pioneering India’s housing finance industry, the late Shri. Parekh, a Padma Bhushan recipient,

built HDFC Ltd on a strong foundation of integrity, transparency, and professionalism. Taking the legacy

further Mr. Deepak Parekh, Chairman HDFC Ltd. and a Padma Bhushan awardee, not only made HDFC

the leader in Mortgages, but also transformed it into India's leading Financial Services conglomerate with a

presence in Banking, Asset Management, Life Insurance, General Insurance, Real Estate Venture Fund,

Education Loan and Education

Capital Structure

As on 31-March-2023, the authorized share capital of the Bank is ₹ 650 crore. The paid-up share capital of

the Bank as on the said date is ₹ 557,97,42,786 comprising of 557,97,42,786 equity shares of the face value

of ₹ 1/- each. The HDFC Group holds 20.87% of the Bank's equity and about 18.43% of the equity is held

by the ADS Depositories in respect of the Bank's American Depository Shares (ADS). Further, 26.30% of

the equity is held by Foreign Institutional Investors (FIIs) and the Bank has 22,90,092 shareholders.

The shares are listed on the BSE Limited (BSE) and The National Stock Exchange of India Limited (NSE).

The Bank's American Depository Shares (ADS) are listed on the New York Stock Exchange (NYSE) with

symbol 'HDB'.

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Distribution Network

HDFC Bank is headquartered in Mumbai. As of December 31, 2023, the Bank’s distribution network was

at 8,086 branches across 3,836 cities. Customers across India are serviced through multiple delivery

channels such as Phone Banking, Net Banking, Mobile Banking, and SMS based banking. The Bank's

expansion plans take into account the need to have a presence in all major industrial and commercial

centres, where its corporate customers are located, as well as the need to build a strong retail customer base

for both deposits and loan products. Being a clearing / settlement bank to various leading stock exchanges,

the Bank has branches in centres where the NSE / BSE have a strong and active member base. The Bank

also has a network of 18,089 ATMs across India. HDFC Bank's ATM network can be accessed by all

domestic and international Visa / MasterCard, Visa Electron / Maestro, Plus / Cirrus and American Express

Credit / Charge cardholders.

Vision, Mission And Values

HDFC Bank’s mission is to be a world class Indian bank. We have a two-fold objective: first, to be the

preferred provider of banking services for target retail and wholesale customer segments. The second

objective is to achieve healthy growth in profitability, consistent with the bank’s risk appetite.

The bank is committed to maintaining the highest level of ethical standards, professional integrity,

corporate governance and regulatory compliance. HDFC Bank’s business philosophy is based on five core

values: Operational Excellence, Customer Focus, Product Leadership, People and Sustainability.

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Key Peoples of HDFC Bank Ltd

1 Mr. Sashidhar Jagdishan Managing Director & Chief Executive Officer

2 Mr. Kaizad Bharucha Deputy Managing Director

3 Mr. Bhavesh Zaveri Executive Director

4 Mr. Srinivasan Vaidyanathan Chief Financial Officer

5 Mr. Santosh Haldankar Company Secretary

Product and Services offer by HDFC Bank Ltd

HDFC Bank provides a number of products and services including wholesale banking, retail banking,

treasury, auto loans, two-wheeler loans, personal loans, loans against property, consumer durable loan,

lifestyle loan and credit cards. Along with this various digital products are Payzapp and SmartBUY

 Consumer banking

 Private equity

 Commercial banking

 Investment management

 Insurance

 Asset management

 Credit cards

 Mutual funds

 Investment banking

 Exchange-traded funds

 Mortgage loans

 Index funds

 Private banking

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Subsidiaries

 HDFC Life

 HDFC ERGO

 HDFC Securities

 HDFC Asset Management Company

 HDFC Mutual Fund

 HDB Financial Services

 HDFC Credila Financial Service

Financial Year 2022-23

Revenue ₹2.05 lakh crore (US$26 billion)

Operating income ₹615 billion (US$7.7 billion)

Net income ₹459.97 billion (US$5.8 billion)

Total assets ₹25.3 lakh crore (US$320 billion)

Total equity ₹2.85 lakh crore (US$36 billion)

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Chapter 3:
RESEARCH STUDY

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RELEVANCE OF STUDY

 Highlight the economic significance of HDFC Bank as a major player in the banking sector.

 Discuss its role in financial intermediation, contributing to economic growth, and providing

essential financial services.

 Discuss how the bank's performance can impact the broader financial market and economy.

 Mention the extensive customer base of HDFC Bank, including individuals, businesses, and other

entities.Explore the impact of the bank's financial health on the stability and confidence of its

customers.

 Discuss the relevance for investors, both institutional and individual, who may have a significant

stake in HDFC Bank.

 Address how the financial analysis can aid investors in making informed decisions.

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OBJECTIVES

 Assessing the overall financial performance of HDFC Bank to gauge its profitability, efficiency, and

effectiveness in utilizing resources.

 Comparing HDFC Bank's financial performance with industry benchmarks and competitors to

identify relative strengths and weaknesses.

 Assisting in strategic planning by identifying areas of improvement, potential growth opportunities,

and potential challenges.

 Analyzing the composition of HDFC Bank's capital structure to determine the balance between debt

and equity.

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NEED OF STUDY

 Investors require a thorough understanding of HDFC Bank's financial health to make informed

investment decisions. A detailed analysis can assist them in evaluating the potential risks and

returns associated with investing in the bank's stocks or bonds.

 Financial analysis helps in identifying and managing financial risks. By assessing HDFC Bank's

risk exposure and risk management strategies, the study contributes to ensuring the bank's stability

and resilience.

 For HDFC Bank's management, a comprehensive financial analysis provides insights into areas of

strength and weakness. It aids in strategic planning by highlighting opportunities for growth, areas

for improvement, and potential challenges in the competitive landscape.

 Understanding how HDFC Bank compares with competitors in the financial market is crucial for

maintaining and enhancing its competitiveness. The analysis helps in identifying areas where the

bank can outperform or needs improvement.

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LIMITATIONS

 Data Limitations:

o Availability and accuracy of financial data may be constrained by the bank's disclosure

practices or changes in accounting standards.

o The historical nature of financial data may not capture real-time fluctuations or emerging

trends.

 Industry Dynamics:

o Changes in the banking industry or regulatory environment may affect the generalizability

of findings over time.

o Market conditions, competitive landscape, or technological advancements might evolve,

impacting the relevance of the analysis.

 External Factors:

o External economic shocks, geopolitical events, or unforeseen circumstances can

significantly influence the accuracy of financial forecasts.

o Currency fluctuations, interest rate changes, or global economic downturns may impact the

bank's financial stability.

 Information Bias:

o The study might be limited by the accuracy and completeness of the information provided

by the bank.

 Assumptions and Simplifications:

o Certain assumptions or simplifications made during the analysis might oversimplify the

complex reality of HDFC Bank's financial operations.

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HYPOTHESIS

Hypothesis 1: Profitability Trends

Null Hypothesis (H₀): There is no significant change in HDFC Bank's profitability over the analyzed period.

Alternative Hypothesis (H₁): HDFC Bank's profitability has experienced a significant increase or decrease.

Hypothesis 2: Debt-to-Equity Ratio

Null Hypothesis (H₀): HDFC Bank's debt-to-equity ratio remains constant over the analyzed period.

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Chapter 4:
LITERATURE REVIEW

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LITERATURE REVIEW

S. Muruganantham and S. K. Nerdish (2021)‘A study on financial performance analysis of HDFC Ltd’

analyzed financial performance through ratio analysis and examined the financial position with the use of

different ratios. The objectives of the study are to study the growth aspect of HDFC bank and measure its

financial results. The study has been made on various aspects of the bank like interest, loans, assets,

expenses, deposits, etc. The findings of the study reveals that the bank has minority issues in managing the

deposits and all aspects are going well.

Nandhini Thakuelr 2020), “The study is conducted on financial statement analyses of HDFC Bank with the

time period of 2013-2018. The tools used in this study were ratio analysis, cash and fund flow analyses.

The objective is to measure the efficiency of various properties of bank. Researchers find that bank’s

financial performance was strong and suggested to providing more housing loans to the development of the

citizen of India.”

Rajedran P (2019) analyzed the performance of HDFC Bank. Researcher explained about HDFC bank’s

history. Current ratio, cash position ratio, Debt equity ratio, proprietary ratio was good. The study finds that

part of the working capital of the bank was financed by long-term funds. Researcher concluded with a

result as HDFC Bank was the largest private sector in India and it’s financial performance was strong

during the period study.’

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Chapter 5:
RESEARCH METHODOLOGY

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METHODOLOGY

This study is quantitative meaning it primarily deals with financial statements of HDFC Bank for the past

four years. This study is based on secondary data which is taken from the bank's website and the annual

reports. The data is analyzed by the ratio analysis and the performance of the bank is clearly explained for

the study period.

Secondary data is the data, which is collected from published source. I have collected data from various

sources such as bank's annual report of previous year, different document prepared by the bank and from

various reference books also.

After the data collection of both the sources, I have analyzed the data & conducted various financial

statement analysis & prepared various graphs. After analyzing the data J have derived a conclusion and

have made suggestions based on my analysis.

Period of Study 2020 To 2023

Framework of analysis Financial Statements

Tools and Techniques Ratio analysis

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Chapter 6:
DATA ANALYSIS & INTERPRETATION

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DATA ANALYSIS & INTERPRETATION

RATIO ANALYSIS OF HDFC BANK

Ratio analysis is a widely used tool of financial analysis. It is identified as the systematic use of ratio to

interpret the fined statement, so that the strength & weakness of the forms as well as its historical

performance & current financial condition can be determined. The term ratio refers to the numbers or

quantative relationship between two items or variables.

Ratios which are used in this project:-

1) LIQUIDITY RATIO

 Current ratio

 Quick ratio

 Inventory turnover ratio

2) PROFITABILITY RATIO

 Operating ratio

 Gross profit ratio

 Net profit ratio

3) LEVERAGE RATIOS

 Debt-to-Equity Ratio

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Current Ratio
Year Current Ratio

FY 0.80
2019-20
FY 0.63
2020-21
FY 1.02
2021-22
FY 1.53
2022-23

INTERPRETATION
The current ratio was 0.80, which means the company had more short-term liabilities than assets during

this fiscal year. In 2021 the current ratio decreased further to 0.63. This suggests a worsening liquidity

position compared to the previous fiscal year. The current ratio increased significantly to 1.02 in year

2022.The current ratio further improved to 1.53 in 2023. This suggests a continued strengthening of the

company's liquidity position. It indicates that the company has significantly more short-term assets than

liabilities, which is generally considered favorable from a financial stability perspective.

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Quick Ratio
Year Quick Ratio

FY 16.62
2019-20
FY 17.58
2020-21
FY 18.77
2021-22
FY 19.48
2022-23

INTERPRETATION
The increasing trend in the quick ratio reflects improving financial health and liquidity management within

the company over the specified period. This suggests that the company has been progressively

strengthening its ability to meet its short-term financial obligations using its liquid assets. A higher quick

ratio generally indicates a healthier financial position and greater liquidity

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Inventory Turnover Ratio

Year Inventory Turnover Ratio

FY 0.06
2019-20
FY 0.06
2020-21
FY 0.07
2021-22
FY 0.07
2022-23

INTERPRETATION
The inventory turnover ratio remained at 0.07, indicating that the improvement seen in the previous year

was sustained. However, the turnover rate is still relatively low, and further improvements may be needed

to optimize inventory management.

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Net Profit Margin

Year Net Profit Margin (%)

FY 22.86
2019-20
FY 25.74
2020-21
FY 28.93
2021-22
FY 27.29
2022-23

INTERPRETATION
The company had a net profit margin of 22.86% in financial year 2019-20. The net profit margin increased

to 25.74% in 2021. This indicates an improvement in profitability compared to the previous fiscal year. In

2022 the net profit margin further increased to 28.93%. This suggests continued improvement in the

company's financial performance. Although still high, the net profit margin decreased slightly to 27.29% in

2023. This could indicate that the company faced challenges such as rising costs or a slowdown in revenue

growth compared to the previous year.

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Operating Profit Margin

Year Operating Profit
Margin

FY 12.66
2019-20
FY 14.69
2020-21
FY 16.52
2021-22
FY 18.26
2022-23

INTERPRETATION
The operating profit margin continued to rise to 18.26%. This indicates a sustained trend of improving

operational efficiency over the years. The company may have implemented strategies to enhance

productivity, control costs, or increase pricing, resulting in higher operating profits relative to revenue.

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Gross Profit Margin

Year Gross Profit Margin

FY 11.62
2019-20
FY 13.61
2020-21
FY 15.26
2021-22
FY 16.87
2022-23

INTERPRETATION
The trend shows a positive trajectory in the company's gross profit margin, indicating improving efficiency

in producing and selling goods or services. This trend is generally favorable as it signifies better

profitability at the gross level, which is essential for covering operating expenses and generating operating

and net profits.

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Debt-to-Equity Ratio
Year Debt-to-equity Ratio

FY 7.56
2019-20
FY 7.22
2020-21
FY 7.26
2021-22
FY 7.46
2022-23

INTERPRETATION
The trend shows a relatively high and stable level of debt relative to equity financing over the years. While

a high debt-to-equity ratio can provide tax benefits and leverage opportunities, it also increases financial

risk. It's essential for the company to carefully manage its debt levels to ensure it remains sustainable and

manageable in the long term.

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Chapter 7:
HYPOTHESIS TESTING

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Hypothesis Testing

Hypothesis 1

From the research study, it was found that alternate hypothesis i.e., " HDFC Bank's profitability has

experienced a significant increase recent years has been accepted and null hypothesis is rejected.

Hypothesis 2

Null Hypothesis is rejected i.e.,“ HDFC Bank's debt-to-equity ratio remains constant over the analyzed

period.”

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Chapter 8:
FINDINGS

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Findings

 The current ratio indicates that bank liquidity and repayment of debts are sound during the period of

study.

 The trend shows a positive trajectory in the company's profitability over the years, with fluctuations

possibly reflecting changes in the business environment or company strategies.

 The trend shows a significant improvement in the company's liquidity position over the years,

moving from a situation of potential liquidity challenges to a more favorable position with ample

short-term assets to cover its short-term obligations.

 The company's inventory turnover ratio has remained relatively low over the years, suggesting

potential inefficiencies in inventory management that could impact cash flow and profitability.

Further analysis and potential adjustments to inventory management practices may be necessary to

improve the turnover ratio and optimize operations.

 While a high debt-to-equity ratio can provide tax benefits and leverage opportunities, it also

increases financial risk. It's essential for the company to carefully manage its debt levels to ensure it

remains sustainable and manageable in the long term.

 The proprietary ratio of the HDFC Bank has shown an increasing trend during the study period, it

shows that the company increased during the study period because of an increase in fixed assets.

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Chapter 9:
CONCLUSION

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Conclusion

After analyzing the data collected from HDFC Bank's annual reports and website, the researcher concluded

that the bank's financial performance was strong during the study period of five financial years from 2020

to 2023. This is noteworthy as HDFC Bank is the largest private sector bank in India. Various financial

ratios were used to conduct the analysis.

HDFC Bank is a largest private sector bank in India. The research was on financial performance of HDFC

Bank for four years from 2020 -2023. The data has been collected from annual reports of the bank and the

web site. The data was analyzed through ratio analysis. The research presented sought to know the

financial viability and financial health of HDFC Bank. For this tables and ratio analysis were used to

analyze and interpret the information obtained.

Ratio analysis of financial statement shows that bank’s current ratio is better growth than the quick ratio

and fixed/worth ratio. It means bank has invested more in current assets than the fixed assets and liquid

assets. Bank have given more advances to its customer and they have less cash in their hand. Profitability

ratio of bank is lower than as compared to previous year.

Thus, the ratio analysis and trend analysis and analysis of cash flow statement shows that HDFC Bank’s

financial position is good. Bank’s profitability is increasing but not at high rate. Bank’s liquidity position is

fair but not good because bank invest more in current assets than the liquid assets. As we all know

that HDFC Bank is on the first position among all the private sector bank of India in all areas but it should

pay attention on its profitability and liquidity. Bank’s position is stable.

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Chapter 10:

BIBLIOGRAPHY

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Bibliography

 S. Murugananthamand S. K. Modish (2021) “A study on Financial Performance Analysis of

HDFC Ltd.”

 Nandidi Thakuelr (2020) The study in conduct of financial statement analysis of HDFC Bank.

 P Rajedra (2019) analyzed the performance of HDFC Bank.

Websites:
https://en.wikipedia.org/wiki/HDFC_Bank

https://www.hdfcbank.com

https://www.goodreturns.in/

https://www.macrotrends.net

https://www.moneycontrol.com/

https://www.scribd.com

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ANNEXURE

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Balance Sheet

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BALANCE SHEET OF HDFC MAR 23 MAR 22 MAR 21 MAR 20

BANK (in Rs. Cr.)

12 mths 12 mths 12 mths 12 mths

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS

Equity Share Capital 557.97 554.55 551.28 548.33

TOTAL SHARE CAPITAL 557.97 554.55 551.28 548.33

Revaluation Reserve 0.00 0.00 0.00 0.00

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

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

TOTAL SHAREHOLDERS 280,199.01 240,092.94 203,720.83 170,986.03

FUNDS

Deposits 1,883,394.65 1,559,217.44 1,335,060.22 1,147,502.29

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

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

TOTAL CAPITAL AND 2,466,081.47 2,068,535.05 1,746,870.52 1,530,511.26

LIABILITIES

ASSETS

Cash and Balances with Reserve 117,160.77 129,995.64 97,340.74 72,205.12

Bank of India

Balances with Banks Money at Call 76,604.31 22,331.29 22,129.66 14,413.60

and Short Notice

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

Advances 1,600,585.90 1,368,820.93 1,132,836.63 993,702.88

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

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

TOTAL ASSETS 2,466,081.47 2,068,535.05 1,746,870.52 1,530,511.26

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OTHER ADDITIONAL
INFORMATION

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

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

Capital Adequacy Ratios (%) 19.26 18.90 18.79 18.52

KEY PERFORMANCE
INDICATORS

Tier 1 (%) 17.13 17.87 17.56 17.23

Tier 2 (%) 2.13 1.03 1.23 1.29

ASSETS QUALITY

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

Gross NPA (%) 1.12 1.00 1.00 1.00

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

Net NPA (%) 0.27 0.32 0.40 0.36

Net NPA To Advances (%) 0.27 0.00 0.00 0.00

CONTINGENT LIABILITIES,
COMMITMENTS

Bills for Collection 71,439.54 56,968.05 44,748.14 51,584.90

Contingent Liabilities 1,748,130.32 1,395,442.30 971,097.60 1,128,953.40

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