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8/22/2019 finanial analysis of HDFC bank
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Financial Analysis ofHDFC Bank
By:
Ruchita Agarwal
PGFB 1244
Housing Development Finance Corporation Bank
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About The Company
Hasmukh Bhai Parekhis the founder of HDFC Bank.
The bank was incorporated in August 1994, in the name of HDFC
Bank Limited, with its registered office in Mumbai.
The Bank started its operations as scheduled Commercial Bank inin January 1995.
It was the first to receive an in-principle approval from RBI to
set up a Bank in private sector, as part of the RBIs liberalization
of the Indian Banking Industry in 1994.
Listed in BSE, NSE, NYSE.
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Major Functions of HDFC Bank
Retail Banking Services
Wholesale Banking Services
Treasury Operations
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Network
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Financial Analysis
Financial Analysis refers to an assessment of the viability,
stability and profitability of a business.
Purpose to do Financial Analysis
To know the earning capacity or profitability.
To know the financial strengths.
To know the trend of business.
To know the efficiency of management.
To provide the useful information to management.
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Ratio Analysis
Ratios are well known and most widely used tools of
financial analysis.
A ratio gives the mathematical relationship between one
variable and another.
Accounting ratios are relationships, expressed in
quantitative terms between figures which have a cause
and effect relationship or which are connected with each
other in some manner or the other.
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Current Ratio
A liquidity ratio that measures a company's ability to pay short-termobligations. The Current Ratio formula is:
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Current Ratio
Current Ratio
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Earning Per Share
The portion of a company's profit allocated to each outstanding share ofcommon stock. Earnings per share serves as an indicator of a
company's profitability.
0
10
20
3040
50
60
70
80
90
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Earning Per Share
Earning Per Share
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Dividend Per Share
Dividend per share (DPS) is the total dividends paid out over an entireyear divided by the number of outstanding ordinary shares issued.
0
2
4
6
8
10
12
14
16
18
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Dividend Per Share
Dividend Per Share
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Net Profit Ratio
0
2
4
6
8
10
12
14
16
18
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Net Profit Ratio
Net Profit Ratio
It measures how much out of every dollar of sales a company actuallykeeps in earnings.
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Credit Deposit Ratio
The portion of loans generated by banks from the deposit received.Credit deposit ratio is a tool used to study the liquidity position of the
bank.
A high ratio shows that there is more amounts of liquid cash with the bank
to met its clients cash withdrawals.
0
10
20
3040
50
60
70
80
90
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Credit Deposit Ratio
Credit Deposit Ratio
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Learning Outcomes
How to maintain the statements.
Importance of Financial statements in a company.
Importance of Ratio.
And the impact of Ratio on working of the company.
Know about the banking terms.
Services given by the Bank.
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Suggestions & Recommendations
As a result they should do decline in average outstanding share and
increase its net income so that EPS will increase.
We can see that in 2011 Dividend is highest but after that they fall
down and unable to reach that point so company should increase the
dividend decrease the number of shares.
Credit Deposit ratio of HDFC Bank in 2013 was 35.99% that meansbank is not earning an optimum return , HDFC Bank should focus on
increasing the customer deposits so that it can increase its Credit
Deposit Ratio and make it stability like it did in last four years from
2009 to 2012.
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Net profit Rs.6,726 crore. An increase of 30.2%
compared to the previous year.
Balance sheet size: Rs 400,332 crore. An
increase of 18.5% compared to the previousyear.
Total deposits: Rs 296,247 crore. An increase of
20.1% compared to the previous year.
Total advances: Rs 239,721 crore. An increaseof 22.7% compared to the previous year.
Highlights
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