Ratio Analysis Of

Submitted in partial fulfilment of the requirement of

B.COM
Submitted by
ARPITA PRIYADARSHANI RAJU
ROLL NO – BC16- 004
EXAM ROLL NO -011603CM039
B.COM FINAL YEAR (2016 – 2019)
Under the guidance of
SMT. ANNAPURNA SAHOO

KHALLIKOTE AUTONOMOUS COLLEGE

BERHAMPUR (GANJAM)

PIN -760001

1
 CERTIFICATE

This is to certify that ARPITA

PRIYADARSHANI RAJU student of B.Com.
Honours in Accountancy of Khallikote
Autonomous College has worked under my
supervision and guidance for her Project Work and
prepared a Project Report with the title RATIO
ANALYSIS OF HDFC BANK which she is
submitting, is her genuine and original work to the
best of my knowledge.

Signature:
(Smt Annapurna Sahoo)
Date:
Place :Berhampur

2
 DECLARATION

I hereby declare that the Project Work with the title “RATIO
ANALYSIS OF HDFC BANK” submitted by me under the
guidance of Smt. ANNAPURNA SAHOO for the partial
fulfilment of the degree of B.Com. Honours in Accountancy
under KHALLIKOTE AUTONOMOUS COLLEGE is my
original work and has not been submitted earlier to any other
University /Institution for the fulfilment of the requirement for
any course of study.
I also declare that no chapter of this manuscript in whole or in
part has been incorporated in this report from any earlier work
done by others or by me. However, extracts of any literature
which has been used for this report has been duly
acknowledged providing details of such literature in the
references.

Signature:
Name: ARPITA PRIYADARSHANI
RAJU
Place: BERHAMPUR
Date:

3
 ACKNOWLEGEMENT

Project work is never the work of an individual. It is more a

combination of ideas, suggestions, and contribution and work
involving many jobs. One of the most important parts of
writing a report is the opportunity to thank all those who have
contributed to it. The list of expression of thanks, no matter
how extensive, is always incomplete and inadequate. This
acknowledgement is no exception.
I want to express my sincere gratitude towards who provided
me with her expert guidance and invaluable suggestion.
I would like to thank my classmates and all those who directly
or indirectly helped me in one or the other way in the
successful completion of the project.

ARPITA PRIYADARSHANI RAJU

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CONTENTS:- page

CHAPTER 1: EVOLUTION OF BANKS 6

CHAPTER 2 : PROFILE OF HDFC BANK 11

2.1 Introduction
2.2 Profile of HDFC Bank
2.3 Ratings /Awards

CHAPTER 3:PRODUCT &SERVICES OF HDFC BANK

21

CHAPTER 4: RATIO ANALYSIS & OVERVIEW 27

4.1 Meaning of Ratios
4.2 Nature of Ratio Analysis
4.3 Importance of Ratio Analysis
4.4 Classification of Ratios
CHAPTER 5 : DATA ANALYSIS & INTERPRETATION
35

CHAPTER6 : CONCLUSION 44
6.1 Suggestions
6.2 Bibliography
5
 CHAPTER - 1

EVOLUTION OF BANKS

The concept of banking has been around for centuries and has had to
evolve with changing human needs. In today’s digital age we have
seen a major transformation in the financial services industry. What
was for many decades a largely unchanging industry, is now
constantly evolving, with many banks battling to keep up.
How has technology changed the way we bank and where is digital
transformation taking us? Let’s go back to the very beginning and see
how financial services got to where it is today.

The beginning of banks

The practice of safe-keeping dates back to 2000BC. Ancient
cultures had ways of depositing and storing wealth. They
funded this through lending fees and taxes. Merchant banks
were the original banks, with merchants trading in
commodities like grain, loaning it to farmers and traders who
carried goods between cities.

The birth of currency

Currency grew out of taxation. In the early days of the ancient
empires, healthy pigs would be used as tax. As empires grew
this was no longer suitable, so coins were introduced. But the
coins needed to be kept in a safe place, so wealthy people held
accounts in their temples. There were fewer withdrawals of

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coins than there were deposits, so wealthy merchants took to
lending these coins, with interest.

Goldsmiths of London
Modern banking and the practice of issuing banknotes emerged in the
17th century. Wealthy merchants began storing their gold with
goldsmiths of London in secure vaults, and at a fee. The goldsmiths
would issue a receipt for each deposit based on quality and quantity.
If a customer wanted to spend the money they could use the piece of
paper to draw coins from the bank. In time they were able to simply
use the paper as payment in shops. Paper receipts were soon seen as
being as good as metal, and paper money was born.

The modern bank

In 1695 the Bank of England was the first bank to issue permanent
banknotes. These were initially handwritten and issued on deposit or
as a loan. They would pay the bearer the value of the note on demand.
By the 18th century, banks offered clearing facilities, security
investments, cheques and overdraft protections. Cheques were widely
used from then on, and changed the way money was transferred.

Enter technology….
Developments in communications allowed banks to dramatically
increase size and geographical spread. With the rise of computers
came credit and debit cards, making cheques irrelevant.
The first version of a credit card was issued by oil companies and
department stores. They were used to create customer loyalty and
improve customer services. The first bank card was introduced in
1946 by a New York bank called Biggins’ Bank. The bank would

7
reimburse the merchant and then obtain payment from the customer.
General purpose credit cards were born in 1966 when credit-issuing
banks joined together to create interbank associations, MasterCard
and Visa.
In 1969 the first automatic teller (ATM) made an appearance in New
York at Chemical Bank. This technology revolutionised the banking
industry, as customers no longer had to visit a bank for basic financial
transactions.
With the rise of the internet, came electronic fund transfers and
internet banking. Online banking was officially introduced by
mainstream banks in 1994. Early adopters saw the benefit and
convenience of it straight away, but many customers remained
hesitant because they didn’t trust the security features. In the 2000s
online banking became mainstream, thanks to e-commerce. Banks
began to offer online products and services, cementing its legitimacy
for consumers. Today over 99% of payments are made electronically.
The 2000s also saw the rise of online money transfer systems like
PayPal, which is a payment processor for online vendors, auction sites
and other commercial users.

The unbanked
Mobile technology gave rise to mobile payments, which
allowed people to pay for services and products using their
mobile device, rather than using cash or credit cards. This has
been particularly popular in Africa and the Middle East, as the
unbanked market has now been given access to financial
services. The user will have an account with a mobile
company and can deposit, draw and send and receive cash
without having an account with a traditional bank.

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A look to the bank of the future
The bank of the future is one that offers a secure banking
environment, as well as flexible and personalised banking services for
its customers.
Banks are replacing pin numbers and passwords with biometric
authentication, allowing customers to check balances and access
investments securely via mobile devices. Customers no longer have to
remember complex passwords and it reduces the risk of fraud for the
bank.
To stay competitive and to keep up with customer expectations, banks
are also turning to new technologies such as machine learning and
data analytics. These are enabling them to offer customers highly
personalised, tailored and customised products and services that have
been adapted to the current economic situation.

Reimaging the customer experience for a digital world

Financial institutions are working hard to deliver more value through
insights and relevant offers that data-driven technologies can provide.
The Dutch online bank Knab is presenting all of a customer’s
financial information in one dashboard – even if this information is
held with another bank. This gives customers a much clearer view of
their overall financial situation.
Banks already have a great deal of data on their customers, including
how they shop, save and access financial services. The challenge is
knowing what to do with that data. Customer relationship and
analytics technologies like Microsoft Dynamics and Cortana
Intelligence Suite allow banks to mine actionable insights from the
data they already have, in a way that respects privacy and compliance,
and provide new services, like the Knab dashboard, that win and
retain customers .
9
Additionally, tools like Office 365 and Microsoft Dynamics CRM are
offering bank employees a 360-degree view of their customers’
financial details, allowing them to anticipate customer needs and
predict additional services that they may require in the future.

10
 CHAPTER - 2

PROFILE OF HDFC BANK

2.1 Introduction
HDFC Bank which was promoted by Housing Development Finance
Corporation Limited; (HDFC), concentrates in four areas – corporate
banking, treasury management, custodial services and retail banking.
It has entered the banking consortia of over 50 corporates for
providing working capital finance, trade services, corporate finance
and merchant banking. It is also providing sophisticated product
structures, sound advice and fine pricing mainly in areas of foreign
exchange and derivatives, money market sand debt trading and equity
research through its state-of-the-art dealing room. With its
sophisticated and customer friendly facilities & services including
multi-branch access, ATMs & cluster deposits and is well positioned
to establish a significant niche for itself in retail banking.

2.2 PROFILE OF HDFC

HDFC Bank was incorporated in the August 1994 and promoted by
Housing Development Finance Corporation Limited; (HDFC) India's
premier housing finance company. The bank was incorporated in the
name of, HDFC Bank Limited', with its registered office in Mumbai,
India. HDFC Bank commenced operations as a Scheduled
Commercial Bank in the year January 1995 .

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 PROMOTER
HDFC is India’s premier housing finance company and enjoys an
impeccable track record in India as well as in international markets.
Since its inception in 1977, the Corporation has maintained a
consistent and healthy growth in its operations to remain the market
leader in mortgages. Its outstanding loan portfolio covers well over a
million dwelling units. HDFC has developed significant expertise in
retail mortgage loans to different market segments and also has a
large corporate client base for its housing related credit facilities.
With its experience in the financial markets, strong market reputation,
large shareholder base and unique consumer franchise, HDFC was
ideally positioned to promote a bank in the Indian environment.

 BUSINESS FOCUS
HDFC Bank’s mission is to be a World Class Indian Bank. The
objective is to build sound customer franchises across distinct
businesses so as to be the preferred provider of banking services for
target retail and wholesale customer segments, and to achieve healthy
growth in profitability, consistent with the bank’s risk appetite. The
bank is committed to maintain 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.

 CAPITAL STRUCTURE
As on 31st March, 2018 the authorized share capital of the Bank is
Rs. 650 crore. The paid-up share capital of the Bank as on the said
date is Rs520,83,15,734/- ( 2604157867 ) equity shares of Rs. 2/-
each). The HDFC Group holds 20.86 % of the Bank's equity and
about 18.16 % of the equity is held by the ADS / GDR Depositories

12
(in respect of the bank's American Depository Shares (ADS) and
Global Depository Receipts (GDR) Issues). 33.44 % of the equity is
held by Foreign Institutional Investors (FIIs) and the Bank has
5,48,942 shareholders.
The shares are listed on the Bombay Stock Exchange Limited and The
National Stock Exchange of India Limited. The Bank's American
Depository Shares (ADS) are listed on the New York Stock Exchange
(NYSE) under the symbol 'HDB' and the Bank's Global Depository
Receipts (GDRs) are listed on Luxembourg Stock Exchange under
ISIN No US40415F2002.

 DISTRIBUTION NETWORK
HDFC Bank is headquartered in Mumbai. As of March 31, 2018, the
Bank’s distribution network was at 4,787 branches in 2,691cities . All
branches are linked on an online real-time basis. Customers across
India are also 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 11,766 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.

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  MANAGEMENT
Mrs. Shyamala Gopinath holds a Master’s Degree in Commerce and
is a CAIIB. Mrs. Gopinath has 39 years of experience in financial
sector policy formulation in different capacities at RBI. As Deputy
Governor of RBI for seven years and member of the Board. Mrs.
Gopinath had been guiding and influencing the national policies in the
diverse areas of financial sector regulation and supervision,
development and regulation of financial markets, capital account
management, management of government borrowings, forex reserves
management and payment and settlement systems.
The Managing Director, Mr. Aditya Puri, has been a professional
banker for over 25 years and before joining HDFC Bank in 1994 was
heading Citibank's operations in Malaysia .The Bank's Board of
Directors is composed of eminent individuals with a wealth of
experience in public policy, administration, industry and commercial
banking. Senior executives representing HDFC are also on the Board
.Senior banking professionals with substantial experience in India and
abroad head various businesses and functions and report to the
Managing Director. Given the professional expertise of the
management team and the overall focus on recruiting and retaining
the best talent in the industry, the bank believes that its people are a
significant competitive strength.

 TECHNOLOGY
HDFC Bank operates in a highly automated environment in terms of
information technology and communication systems. All the bank’s
branches have online connectivity, which enables the bank to offer
speedy funds transfer facilities to its customers. Multi-branch access
is also provided to retail customers through the branch network and
Automated Teller Machines (ATMs).
The Bank has made substantial efforts and investments in acquiring
the best technology available internationally, to build the
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infrastructure for a world class bank. In terms of core banking
software, the Corporate Banking business is supported by Flex cube,
while the Retail Banking business by Fin ware, both from i-flex
Solutions Ltd. The systems are open , scale able and web-enabled.
The Bank has prioritised its engagement in technology and the
internet as one of its key goals and has already made significant
progress in web-enabling its core businesses. In each of its businesses,
the Bank has succeeded in leveraging its market position, expertise
and technology to create a competitive advantage and build market
share.

 BUSINESS PROFILE
HDFC Bank caters to a wide range of banking services covering
commercial and investment banking on the wholesale side and
transactional / branch banking on the retail side. The bank has three
key business segments:

 Wholesale Banking
The Bank’s target market is primarily large, blue-chip manufacturing
companies in the Indian corporate sector and to a lesser extent, small
& mid-sized corporates and agri-based businesses. For these
customers, the Bank provides a wide range of commercial and
transactional banking services, including working capital finance,
trade services, transactional services, cash management, etc. The bank
is also a leading provider of structured solutions, which combine cash
management services with vendor and distributor finance for
facilitating superior supply chain management for its corporate
customers. Based on its superior product delivery / service levels and
strong customer orientation, the Bank has made significant inroads
into the banking consortia of a number of leading Indian corporates
including multinationals, companies from the domestic business

15
houses and prime public sector companies. It is recognised as a
leading provider of cash management and transactional banking
solutions to corporate customers, mutual funds, stock exchange
members and banks.
 Treasury
Within this business, the bank has three main product areas - Foreign
Exchange and Derivatives, Local Currency Money Market & Debt
Securities, and Equities. With the liberalisation of the financial
markets in India, corporates need more sophisticated risk management
information, advice and product structures. These and fine pricing on
various treasury products are provided through the bank’s Treasury
team. To comply with statutory reserve requirements, the bank is
required to hold 25% of its deposits in government securities. The
Treasury business is responsible for managing the returns and market
risk on this investment portfolio.

 Retail Banking
The objective of the Retail Bank is to provide its target market
customers a full range of financial products and banking services,
giving the customer a one-stop window for all his/her banking
requirements. The products are backed by world-class service and
delivered to customers through the growing branch network, as well
as through alternative delivery channels like ATMs, Phone Banking,
NetBanking and Mobile Banking.

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

16
Personal Loans and Loans for Two-wheelers. It is also a leading
provider of Depository Participant (DP) services for retail customers,
providing customers the facility to hold their investments in electronic
form.

HDFC Bank was the first bank in India to launch an International

Debit Card in association with VISA (VISA Electron) and issues the
MasterCard Maestro debit card as well. The Bank launched its credit
card business in late 2001. By March 2015, the bank had a total card
base (debit and credit cards) of over 25 million. The Bank is also one
of the leading players in the “merchant acquiring” business with over
235,000 Point-of-sale (POS) terminals for debit / credit cards
acceptance at merchant establishments. The Bank is well positioned
as a leader in various net based B2C opportunities including a wide
range of internet banking services for Fixed Deposits, Loans, Bill
Payments, etc.

2.3 RATINGS /AWARDS

 Credit Rating
HDFC Bank has its deposit programmes rated by two rating agencies
- Credit Analysis & Research Limited. (CARE) and Fitch Ratings
India Private Limited. The bank's Fixed Deposit programme has been
rated 'CARE AAA (FD)' [Triple A] by CARE, which represents
instruments considered to be "of the best quality, carrying negligible
investment risk".
CARE has also rated the bank's Certificate of Deposit (CD)
programme "PR 1+" which represents "superior capacity for
repayment of short term promissory obligations". Fitch Ratings India
Pvt. Ltd. (100% subsidiary of Fitch Inc.) has assigned the "tAAA
(ind)" rating to the bank's deposit programme, with the outlook on the
rating as "stable". This rating indicates "highest credit quality" where
"protection factors are very high".
17
HDFC Bank also has its long term unsecured, subordinated (Tier II)
Bonds of Rs.4 billion rated by CARE and Fitch Ratings India Private
Limited. CARE has assigned the rating of "CARE AAA" for the Tier
II Bonds while Fitch Ratings India Pvt. Ltd. has assigned the rating
"AAA (ind)" with the outlook on the rating as "stable". In each of the
cases referred to above, the ratings awarded were the highest assigned
by the rating agency for those instruments.

 Corporate Governance Rating:

The bank was one of the first four companies, which subjected itself
to a Corporate Governance and Value Creation (GVC) rating by the
rating agency, The Credit Rating Information Services of India
Limited (CRISIL). The rating provides an independent assessment of
an entity's current performance and an expectation on its "balanced
value creation and corporate governance practices" in future. The
bank was assigned a 'CRISIL GVC Level 1' rating in January 2007
which indicates that the bank's capability with respect to wealth
creation for all its stakeholders while adopting sound corporate
governance practices is the highest

 Awards and Accolades :

HDFC Bank began operations in 1995 with a simple mission: to be a
"World-class Indian Bank". We realized that only a single-minded
focus on product quality and service excellence would help us get
there. Today, we are proud to say that we are well on our way towards
that goal.
Over the years, the Bank has received recognition and awards from
several leading organizations and publications, both domestic and
international

18
Some important awards that the Bank won:
2019

FE Best Bank Awards Best Bank: New Private Sector

2018

The Economic Times Company of the Year

Corporate Excellence
Awards 2018

Aadhaar Excellence • Best Performing Private Bank in Total

Awards 2018 Aadhaar Generation & Update
• Best Performing Private Bank in Total
Aadhaar Generation & Update - In House
Model
• Best Performing Branch of HDFC Bank
in Total Aadhaar Generation & Update
for Kidwai Nagar Branch, Kanpur, Uttar
Pradesh.

NASSCOM AI Game Innovative Application in AI - Virtual

Changer Awards 2018 Agent Engine

Institutional Investor Ranked in four categories -

2018 All-Asia
Executive Team - • Best IR Professional: 2nd Rank among
Survey banks in Asia (ex-Japan)
• Best CEO: 2nd Rank
• Best CFO: 1st Rank
• Best IR Company: 3rd Rank

19
BrandZ's Top 100 HDFC Bank featured for the fourth time
Global Brands List in the BrandZ's Top 100 Global Brands
List

14th Visa Asia Pacific India and South Asia Champion Security
Security Summit Award 2018

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 CHAPTER – 3

PRODUCT & SERVICES OF HDFC BANK

Incorporated in the year 1994, HDFC Bank is one of the largest

privately-owned financial institutions in the country. Its headquarters
are located in Mumbai, Maharashtra. Operating through a network of
4,729 branches and 12,259 ATM’s in 2,669 cities and towns of India,
the bank offers a wide range of products and services that cater to
different customer segments. Its product gamut includes personal
banking, wholesale banking, credit cards and loans such as personal
loan, business loan, housing loan, auto loan, loan against property,
etc. HDFC is also one of the most advanced banks in terms of
technology offering user-friendly online banking portal and mobile
app.
Some popular product offerings by HDFC Bank are :

 BUSINESS LOAN
To help small and medium scale businesses grow and flourish more,
HDFC Bank offers business loans loaded with a host of benefits.
These loans are tailor-made to suit the unique needs of a business and
are available at competitive interest rates. There is no need to pledge
an asset as collateral for business loans and the application process is
also transparent. Additional features like 60-second eligibility check,
disbursal within 48 hours, dropline overdraft facility and the credit
protect plan together make this loan a great option for small
businesses. Business loans up to Rs. 50 Lakhs can be availed at
HDFC Bank .

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 CREDIT CARD
HDFC Bank is the largest credit card provider in the country and
offers an exciting range of credit cards that match the needs of
different types of customers and their spending habits. You can find
all types of cards in HDFC Bank’s gamut- premium, super-premium,
co-branded, travel, regular and commercial. Unmatched benefits and
discounts are provided on these cards in the form of airport lounge
access, frequent flier miles, movie tickets, cashbacks, rewards and
direct discounts. HDFC Credit Cards are universally acceptable and
facilitate cashless transactions across several merchants both online
and offline.

 DEBIT CARD
To save the customers from the hassles of withdrawing cash every
time they want to make a transaction, HDFC Bank offers a
complimentary debit card to its savings account holders. These cards
are secured with a PIN and OTP secured at the time of making online
transactions. Times Points Debit Card, Easy Shop Platinum Debit
Card, Jet Privilege HDFC Bank Signature Debit Card and RuPay
Premium Debit Card are some popular debit cards by HDFC Bank.
Based on the type of debit card, you can avail benefits like fuel
surcharge waiver, cashback, high daily limit and air miles earnings.
You can also customize your daily limit by calling the bank’s
customer service desk.
International Debit Card:
With this card, the accountholder can enjoy shopping at over
15,000 establishments in India and over 80 lakh establishments in
over 140countries. He can also withdraw cash from 900 ATM's in
India and over 5.3 lakh ATM's across the globe. The amount spend on
cards is automatically debited from Saving Account.
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 PERSONAL LOAN
Meet your urgent financial needs with HDFC Bank personal loan.
Offered at competitive rates, personal loan can be used to provide for
a number of financial needs such as wedding, vacation, debt
consolidation and more. HDFC Bank provides personal loans at easier
terms and conditions and with hassle-free documentation. Some of its
benefits are listed below-

 Loan amount up to Rs. 40 Lakhs

 Loan disbursal in less than 4 hours
 Hassle-free application and minimal documentation
 Low EMIs

 EDUCATION LOAN
HDFC Bank also offers education loans at attractive interest rates to
help the students pursue education in their dream institute whether in
India or abroad. Loans up to Rs. 10 Lakhs can be availed at HDFC
Bank which is also eligible for tax exemption under section 80(E) of
the Income Tax Act, 1961. For high-value loans, collateral security is
required which includes fixed deposit, LIC, NSC or a residential
property. The bank also offers a flexible repayment tenure- loans
below Rs. 7.5 Lakhs can be paid within 10 years and those above Rs.
7.5 Lakhs have a maximum tenure of 15 years. Transparent procedure
and doorstep services make this a great option to fund higher
education.

 SAVINGS ACCOUNT
Different types of savings accounts can be opened with HDFC Bank
with the sole purpose of saving money and earning interest, namely-
 Savings Account
 Savings Max Account
 Women’s Savings Account
23
 Kids Advantage Account
 Senior Citizens Account
 Family Savings Group Account
 Basic Savings Bank Deposit Account
 Government/Institutional Savings Account
 BSBDA Small Account
 Government Scheme Beneficiary Savings Account
 Account holders get complimentary debit card with these accounts
which can be used to make cashless transactions at several stores.

 FIXED DEPOSIT
Invest your money into HDFC Bank Fixed Deposit and earn high
interest on it. Fixed deposits, being the most popular investment
instrument in India, attracts people from all walks of life. HDFC
Bank allows them to invest their money with benefits of flexibility
and security. Senior citizen can avail 0.50 percent higher interest rate.
Existing customers can book their deposit by logging into the net
banking portal. You can also appoint nominees or avail sweep-in
facility.

 GOLD LOAN
HDFC Bank offers gold loans to help its customers fulfil their
immediate need for cash such as wedding expenses, business
expansion, education or medical needs. These loans require minimal
documentation and ensure quick fund disbursal. The pledged gold
jewellery is kept under secure storage to ensure safety. Some of its
advantages include -
 Flexible rates of interest
 Minimal documentation
 Disbursal within 45 minutes
 Secure storage of the pledged gold

24
 HOME LOAN
Customers can avail home loan from HDFC Bank at highly
competitive rates of interest. This loan can be availed for the purpose
of buying a house or to build one. Outstanding home loan from other
banks can also be transferred to HDFC Bank at lower rates of interest.
HDFC Bank ensures a hassle-free application process and easy
documentation formalities. You can also get pre-approved home loan
and go house hunting with more confidence. Some of the reasons why
you must avail HDFC Bank home loan are-
 Attractive interest rates
 Special lower rates of interest for women borrowers
 Safe document storage
 Quick processing and disbursal

 LOAN AGAINST PROPERTY

You can also avail loan against property with HDFC Bank to fulfil
your personal and business needs. Both residential and commercial
properties can be put forward as collateral and up to 60 percent of the
property’s value can be given to the borrower. Hassle-free loan
processing and quick disbursal make it a worthy option to fund your
immediate financial needs. Low EMIs, high loan amount and
competitive pricing are a few more advantages of loan against
property by HDFC.

 CAR LOAN
HDFC Bank offers car loans for purchasing a new car or a pre-owned
car at highly attractive rates of interest. Ranging from a compact car
to a luxury sedan with lavish features, loans can be availed to fund
any dream vehicle. Up to 100 percent financing is offered by HDFC
Bank and there is flexible loan tenure for up to a period of 7 years.
25
HDFC Car Loan can be taken for a highest amount of Rs. 3 Crores.
Customers can check their eligibility for this loan within 60 seconds
by filling some basic details and can be approved in just 30 minutes.
Some special benefits on car loan are provided to existing customers
of HDFC Bank.

26
 CHAPTER – 4

RATIO ANALYSIS &OVERVIEW

4.1 MEANING OF RATIOS

A relationship between various accounting figures, which are
connected with each other expressed in mathematical terms, is called
accounting ratios. According to Kennedy and Macmillan, "The
relationship of one item to another expressed in simple mathematical
form is known as ratio."
Robert Anthony defines a ratio as – "simply one number expressed in
terms of another." Accounting ratios are very useful as they briefly
summarise the result of detailed and complicated computations.
Absolute figures are useful but they do not convey much meaning. In
terms of accounting ratios, comparison of these related figures makes
them meaningful. It is difficult to say which business concern is more
efficient unless figures of capital investment or sales are also
available . Analysis and interpretation of various accounting ratio
gives a better understanding of the financial condition and
performance of a business concern.

4.2 NATURE OF RATIO ANALYSIS

Ratio analysis is a technique of analysis and Interpretation of financial
statements. It is the process of establishing and interpreting various
ratios for helping in making certain decisions. It is only a means of
understanding of financial strengths and weaknesses of a firm. There
are a number of ratios which can be calculated from the information
given in the financial statements, but the analyst has to select the
appropriate data and calculate only a few appropriate ratios. The
following are the steps involved in the ratio analysis .

27
 Selection of relevant data from the financial statements depending
upon the objective of the analysis.

 Comparison of the calculated ratios with the ratios of the same firm
in the past, or the ratios developed from projected financial
statements or the ratios of some other firms or the comparison with
ratios of the industry to which the firm belongs.

4.3 IMPORTANCE OF RATIO ANALYSIS

Ratio analysis does two things, immediately. The first thing is it
allows the company to compare itself with other like companies. If
management feels things aren't going well, they can help pinpoint the
problem through comparing their ratios with other companies. They
may have several ratios that are comparable, but a couple which are
way off. That might be where the problem .
Also, ratio analysis may help by comparing your company with prior
periods. If a particular ratio is declining when it would be better if it
were staying the same or increasing, then again looking at the ratios
are important to find out where the problem lies. Ratios are important
to spot trends easily.

4.4 CLASSIFICATION OF VARIOUS RATIOS

A) Liquidity Ratios :
It is also known as liquidity ratios. it includes the following
1) Measures ability of a company to meet its current obligations.
2) Indicates short term financial stability of a company.
3) Indicates present cash solvency and ability to remain solvent in
times of adversities

28
To measure the liquidity of a firm the following ratios can be
calculated
 Current Ratio
The current ratio is a liquidity ratio that measures a company's ability
to pay short-term and long-term obligations. To calculate the ratio,
analysts compare current assets to current liabilities. Current assets
include cash, accounts receivable, inventory and other assets that are
expected to be turned into cash in less than a year. Current liabilities
include accounts, wages, taxes payable, and the current portion of
long-term debt. The formula for calculating a company’s current ratio
is as follows:
Current Ratio = Current Assets / Current Liabilities
Interpretation :
A ratio under 1 indicates that the company’s debts that will need to be
paid in a year or less are greater than its assets (either cash or
expected to be converted to cash within a year or less.) A current ratio
less than one would not be concerning if the company has a much
higher receivables turnover than payables turnover. For example,
retail companies collect very quickly from consumers but have a long
time to pay their suppliers. Because of this imbalance, a current ratio
below 1 is normal within the industry group.

 Quick Ratio
Quick ratio is also known as acid test ratio. It indicates immediate
ability of a company to pay off its current obligations. And also shows
the solvency and financial soundness of the business. Greater the ratio
stronger the financial position of the company .

Quick ratio = Quick asset / Quick liabilities

29
Interpretation:
A figure of 1 is considered to be the normal quick ratio, as it indicates
that the company is fully equipped with sufficient assets that can be
instantly liquidated to pay off its current liabilities . So the standard
quick ratio should be 1:1 .

 Absolute liquid Ratio

The relationship between the absolute liquid assets and current
liabilities is established by this ratio. Absolute Liquid Assets take into
account cash in hand, cash at bank, and marketable securities or
temporary investments.

Absolute liquid ratio = Absolute liquid assets /Current liabilities

Interpretation :
The most favourable and optimum value for this ratio should be 1: 2.
It indicates the adequacy of the 50% worth absolute liquid assets to
pay the 100% worth current liabilities in time.

B)Profitability Ratios :
The primary objectives of business undertaking are to earn profits .
Because profit is the engine, that drives the business enterprise . It
measures the overall efficiency of the business. It indicates whether
utilization of business assets and funds are done efficiently and best
way or not , so as to generate adequate profits or returns.

30
Profitability ratios are :
 Net profit Ratio :
Net profit ratio (NP ratio) is a popular profitability ratio that shows
relationship between net profit after tax and net sales. It is computed
by dividing the net profit (after tax) by net sales.

Net profit ratio = net-profit after tax / net sales*100

Interpretation :
For the purpose of this ratio, net profit is equal to gross profit minus
operating expenses and income tax. All non-operating revenues and
expenses are not taken into account because the purpose of this ratio
is to evaluate the profitability of the business from its primary
operations. Examples of non-operating revenues include interest on
investments and income from sale of fixed assets. Examples of non-
operating expenses include interest on loan and loss on sale of assets.

 Gross Profits
It shows the operating efficiency of the business .It measures the
efficiency of production as well as pricing. Decrease in the ratio
indicates reduction in selling price or increase in the cost of
production or decline in the business activity .
Gross profit ratio = Gross profit / Sales *100

 Expense Ratio
Expense ratio (expense to sales ratio) is computed to show the
relationship between an individual expense or group of expenses and
sales. It is computed by dividing a particular expense or group of
expenses by net sales. Expense ratio is expressed in percentage.

31
Expense ratio= particular expense / net sales *100
Interpretation :
Expense ratio shows what percentage of sales is an individual expense
or a group of expenses. A lower ratio means more profitability and a
higher ratio means less profitability.
Analyst must be careful while interpreting expense to sales ratio.
Some expenses vary with the change in sales (i.e variable expenses).
The ratio for such expenses normally does not change significantly as
the sales volume increases or decreases. For fixed expenses (rent of
building, fixed salaries etc.), the ratio changes significantly as the
sales volume changes. The ratio is helpful in controlling and
estimating future expenses.

 Return on investment :
Return on investment (ROI) is the performance measure used to
evaluate the efficiency of investment. It compares the degree and
timing of gains from investment directly to the degree and timing of
investment costs. It is one of most frequently used approaches for
assessing the financial consequences of business investments,
decisions, or actions.

ROI = Profit after tax/Shareholder’s fund*100

Interpretation :
If an investment has a positive ROI and there are no other chances
with a higher ROI, then the investment should be undertaken. A
higher ROI means that investment gains compare positively to the
investment costs. HDFC bank’s return on investment ratio is more or
less in the same year.

32
C) Capital Structure Ratios :
The capital structure is how a firm finances its overall operations and
growth by using different sources of funds. Debt comes in the form of
bond issues or long-term notes payable, while equity is classified as
common stock, preferred stock or retained earnings .
Capital structure ratios are :

 Debt equity ratio :

Debt to equity ratio is a long term solvency ratio that indicates the
soundness of long-term financial policies of a company. It shows the
relation between the portion of assets financed by creditors and the
portion of assets financed by stockholders. As the debt to equity ratio
expresses the relationship between external equity (liabilities) and
internal equity (stockholder’s equity), it is also known as “external-
internal equity ratio”.

Debt equity ratio = Debt / Equity (OR) External equity /Internal

equity
Interpretation :
A ratio of 1 (or 1:1) means that creditors and stockholders equally
contribute to the assets of the business. A less than 1 ratio indicates
that the portion of assets provided by stockholders is greater than the
portion of assets provided by creditors and a greater than 1 ratio
indicates that the portion of assets provided by creditors is greater
than the portion of assets provided by stockholders.

 Proprietary Ratio:
The proprietary ratio (also known as the equity ratio) is the proportion
of shareholders' equity to total assets, and as such provides a rough

33
estimate of the amount of capitalization currently used to support a
business
Proprietary ratio = Proprietors fund / Total assets
Interpretation :
The proprietary ratio shows the contribution of stockholders' in total
capital of the company. A high proprietary ratio, therefore, indicates a
strong financial position of the company and greater security for
creditors. A low ratio indicates that the company is already heavily
depending on debts for its operations.

 Solvency Ratio :
Solvency ratio is a key metric used to measure an enterprise’s ability
to meet its debt and other obligations. The solvency ratio indicates
whether a company’s cash flow is sufficient to meet its short-term and
long-term liabilities. The lower a company's solvency ratio, the
greater the probability that it will default on its debt obligations.

Solvency ratio = Total outsider`s fund / Total assets

(OR)
1 – Proprietary ratio
Interpretation :
A stronger or higher ratio indicates financial strength .

34
 CHAPTER – 5

DATA ANALYSIS & INTERPRETATION

Credit Deposit Ratio

Credit-Deposit Ratio is the proportion of loan-assets created by a
bank from the deposits received. Credits are the loans and advances
granted by the bank. In other words, it is the amount lent by the bank
to a person or an organization which is recovered later on. Interest is
charged from the borrower. Deposit is the amount accepted by bank
from the savers and interest is paid to them.
Table No.1: Credit Deposit Ratio (in %)
YEAR Bank Credit (in Bank deposits HDFC Bank
crores) ( in crores )

2013-14 195420.03 246706.45 79.21

2014-15 239720.64 296246.98 80.92
2015-16 303000.27 367337.48 82.49
2016-17 365495.03 450795.64 81.08
2017-18 464593.96 546424.19 85.02
Mean 81.74
Standard 2.17
deviation
Standard error 0.97
Coefficient of 2.66
variance
CA GR 1.79%
Table 1 shows that over the course of five financial years of study the
mean of Credit Deposit Ratio in HDFC Bank is 81.74% . The
Compound Growth Rate in HDFC Bank is 1.79%. The credit deposit
ratio of HDFC Bank was highest in 2017-18 (85.02%) and lowest in
2013-14 (79.21).
35
Interest Expenses to Total Expenses
Interest Expenses to Total Expenses reveals the expenses incurred on
interest in proportion to total expenses. Banks accepts deposits from
savers and pay interest on these accounts. This payment of interest is
known as interest expenses. Total expenses include the amount spent
in the form of staff expenses, interest expenses, overhead expenses
and other operating expenses etc
Table No.2: Interest Expenses to Total Expenses (in %)
YEAR Interest Total expenses HDFC bank
expenses (in crores)
(in crores)
2013-14 14989.58 27362.96 54.78
2014-15 19253.75 35191.21 54.71
2015-16 22652.90 40576.80 55.83
2016-17 26074.24 47250.34 55.18
2017-18 32629.93 58676.96 55.61
Mean 55.22
Standard 0.49
deviation
Standard error 0.22
Co efficient of 0.89
variance
CA GR 0.38%

The ratio of interest expenses to total expenses in HDFC Bank was

also increased from 54.71% to 55.83% during the period 2014-15 to
2015-16, afterward it was decreased from 55.83% to 55.18% during
the period 2015-16 to 2016-17 but further it was increased to 55.61%
in 2017-18.

36
Interest Income to Total Income
Interest Income to Total Income shows the proportionate contribution
of interest income in total income. Banks lend money in the form of
loans and advances to the borrowers and receive interest on it. This
receipt of interest is called interest income. Total income includes
interest income, non-interest income and operating income.
Table No.3: Interest Income to Total Income in HDFC Bank (in %)
YEAR Interest income Total income HDFC BANK
(in crores) (in crores )
2013-14 27286.35 3530.05 83.88
2014-15 35064.87 41917.50 83.65
2015-16 41135.53 49055.18 83.86
2016-17 48469.90 57466.26 84.34
2017-18 60221.45 70973.17 84.85
MEAN 84.12
Standard 0.48
deviation
Standard error 0.22
Coefficient of 0.57
variance
CA GR 0.29%

The ratio of interest income to total income in HDFC Bank is

increased from 83.65% to 84.85% during the year 2014-15 to 2017-
18. The growth rate of HDFC Bank is 0.29%.

37
Other Income to Total Income
Other income to total income reveals the proportionate share of other
income in total income. Other income includes noninterest income
and operating income. Total income includes interest income, non-
interest income and operating income.

Table No.4 : Other Income to Total Income in HDFC Bank

(in%)
YEAR Other income Total income HDFC bank
2013-14 5243.69 32530.05 16.12
2014-15 6852.62 41917.50 16.35
2015-16 7919.64 49055.18 16.14
2016-17 8996.35 57466.26 15.66
2017-18 10751.72 70973 15.15
Mean 15.88
Standard 0.48
deviation
Standard error 0.22
Coefficient of 3.04
variance
CA GR -1.54%
The table 4 shows that the ratio of other income to total income of
HDFC Bank was also increased from 16.12% in 2013-14 to 16.35%
in 2014-15. Afterward the share of other income in total income of
HDFC Bank was decreased from 16.35% to 15.15% during 2014-15
to 2017-18.

Net Profit Margin

Net Profit Margin reveals the financial results of the business activity
and efficiency of management in operations. The table 5 shows the

38
net profit margin in HDFC Bank during the period 2013-14 to 2017-
18.

Table No.5: Net Profit Margin in HDFC Bank (in %)

YEAR Net profit Total income HDFC Bank
(in crores ) ( in crores)
2013-14 5167.09 32530.05 15.88
2014-15 6726.28 41917.50 16.05
2015-16 8478.38 49055.18 17.28
2016-17 10215.92 57466.26 17.78
2017-18 12296.21 70973.17 17.33
MEAN 16.86
Standard 0.84
deviation
Standard error 0.38
Coefficient of 5.01
variance
CA GR 2.19%
The table 5 shows that the ratio of net profits to total income of
HDFC Bank was increased from 15.88% to 17.78 during the period of
2013-14 to 2016-17, and decreased from 17.78% to 17.33% during
the period of 2016-17 to 2017-18. However, the net profit margin
was higher in HDFC Bank (2.19%) .

Net Worth Ratio

Net worth Ratio is used for measuring the overall efficiency of a
firm. This ratio establishes the relationship between net profit and the
proprietor’s funds.

39
 Table No.6: Net Worth Ratio (in %)
YEAR Proprietor`s Net profit HDFC Bank
fund (in crores (in crores)
)
2013-14 469.34 5167.09 9.08
2014-15 475.88 6726.28 7.07
2015-16 479.81 8478.38 5.66
2016-17 501.3 10215.9 4.91
2017-18 505.64 12296.21 4.11
Mean 6.17
Standard 1.96
deviation
Standard error 0.88
Coefficient of 31.81
variance
CA GR -17.97%

It is clear from the table 6 that the net worth ratio was decreased from
9.08% to 4.11% during 2013-14 to 2017-18 in HDFC Bank .
Total Income
The total income indicates the rupee value of the income earned
during a period. The higher value of total income represents the
efficiency and good performance.
Table No.7: Growth in Total Income HDFC Bank (in Crores)
YEAR Total income % change
2013-14 32530.05 0.00
2014-15 41917.50 77.60
2015-16 49055.18 66.31
2016-17 57466.26 56.1
2017-18 70973.17 45.83
MEAN 50388.43
Standard deviation 14716.34

40
Standard error 681.35
Coefficient of 29.21
variance
CA GR 21.54%

The table 7 shows that the mean value of total income of HDFC bank
was (Rs.50,388.43crores) during the period of study . However, the
rate of growth regarding total income was higher in HDFC Bank
(21.54%)

Total Expenditure
The total expenditure reveals the proportionate share of total
expenditure spent on the development of staff, interest expended and
other overheads. The higher value of total.
Table No.8: Total Expenditure of HDFC Bank (in Crores)
YEAR Total expenditure % change
2013-14 7362.96 0
2014-15 35191.21 77.76
2015-16 40576.80 67.43
2016-17 47250.34 57.91
2017-18 58676.96 46.63
MEAN 41811.65
Standard deviation 11917.82
Standard error 5329.81
Coefficient of 28.50
variance
CA GR 21.01%
The table 8 discloses that the mean value of total expenditure of
HDFC Bank was (Rs.41,811.65 crore) during the period of study. In
HDFC Bank, the annual growth rate of expenditure was highest
(77.76%) in the year of 2014-15 and was lowest (46.63%) in the year
of 2017-18.

41
Advances
Advances are the credit facility granted by the bank. In other words, it
is the amount borrowed by a person from the Bank. It is also known
as “Credit” granted where the money is disbursed and recovery of
which is made later on.

Table No.9: Total Advances of HDFC Bank (in Crores )

YEAR Total advances % change
2013-14 195420.03 0
2014-15 239720.64 81.52
2015-16 303000.27 64.50
2016-17 365495.03 53.47
2017-18 464593.96 42.06
MEAN 313645.99
Standard deviation 106100.52
Standard error 47449.59
Coefficient of 33.83
variance
CA GR 24.17%

Table 9 presents that the mean of advances of HDFC Bank was

(3,13,645.99 ). Rate of growth was 24.17 % . Table also shows the per
cent Change in advances over the period of 5 years. In case of HDFC
Bank advances were continuously increased (with a decreasing trend)
.
Deposits
Deposit is the amount accepted by bank from the savers in the form of
current deposits, savings deposits and fixed deposits and interest is
paid to them.

42
 Table No.10: Total Deposits of HDFC Bank (in Crores)
YEAR Total deposit % change
2013-14 247706.45 0
2014-15 29626.98 83.28
2015-16 367337.48 67.16
2016-17 450795.64 54.73
2017-18 546424.19 45.15
MEAN 381502.15
Standard deviation 120041.48
Standard error 53684.18
Coefficient of 31.47
variance
CA GR 21.99%
Table 10 presents that the mean of deposits of HDFC Bank was
381502.15. The rate of growth was (21.99%) in HDFC Bank during
the period of study. Table also shows the per cent Change in Deposits
over the period of 5 years. In HDFC Bank Deposits were
continuously increasing over the period of study.

43
 CHAPTER 6

CONCLUSION

The beginning of banks

The practice of safe-keeping dates back to 2000BC. Ancient
cultures had ways of depositing and storing wealth. They
funded this through lending fees and taxes. Merchant banks
were the original banks, with merchants trading in
commodities like grain, loaning it to farmers and traders who
carried goods between cities.

The modern bank

In 1695 the Bank of England was the first bank to issue permanent
banknotes. These were initially handwritten and issued on deposit or
as a loan. They would pay the bearer the value of the note on demand.
By the 18th century, banks offered clearing facilities, security
investments, cheques and overdraft protections. Cheques were widely
used from then on, and changed the way money was transferred.
Profile Of Hdfc
HDFC Bank was incorporated in the August 1994 and promoted by
Housing Development Finance Corporation Limited; (HDFC) India's
premier housing finance company. The bank was incorporated in the
name of, HDFC Bank Limited', with its registered office in Mumbai,
India. HDFC Bank commenced operations as a Scheduled
Commercial Bank in the year January 1995 .
HDFC Bank which was promoted by Housing Development Finance
Corporation Limited; (HDFC), concentrates in four areas – corporate
banking, treasury management, custodial services and retail banking.

44
It has entered the banking consortia of over 50 corporates for
providing working capital finance, trade services, corporate finance
and merchant banking. It is also providing sophisticated product
structures, sound advice and fine pricing mainly in areas of foreign
exchange and derivatives, money market sand debt trading and equity
research through its state-of-the-art dealing room. With its
sophisticated and customer friendly facilities & services including
multi-branch access, ATMs & cluster deposits and is well positioned
to establish a significant niche for itself in retail banking.

Business Loan
To help small and medium scale businesses grow and flourish more,
HDFC Bank offers business loans loaded with a host of benefits.
Credit Card
HDFC Bank is the largest credit card provider in the country and
offers an exciting range of credit cards that match the needs of
different types of customers and their spending habits.
Debit Card
To save the customers from the hassles of withdrawing cash every
time they want to make a transaction, HDFC Bank offers a
complimentary debit card to its savings account holders.
Personal Loan
Meet your urgent financial needs with HDFC Bank personal loan.
Offered at competitive rates, personal loan can be used to provide for
a number of financial needs such as wedding, vacation, debt
consolidation and more.

45
Education Loan
HDFC Bank also offers education loans at attractive interest rates to
help the students pursue education in their dream institute whether in
India or abroad.
Savings Account
Different types of savings accounts can be opened with HDFC Bank
with the sole purpose of saving money and earning interest
Fixed Deposit
Invest your money into HDFC Bank Fixed Deposit and earn high
interest on it.
Gold Loan
HDFC Bank offers gold loans to help its customers fulfil their
immediate need for cash such as wedding expenses, business
expansion, education or medical needs.
Home Loan
Customers can avail home loan from HDFC Bank at highly
competitive rates of interest.
Loan Against Property
You can also avail loan against property with HDFC Bank to fulfil
your personal and business needs.
Car Loan
HDFC Bank offers car loans for purchasing a new car or a pre-owned
car at highly attractive rates of interest.

A relationship between various accounting figures, which are

connected with each other expressed in mathematical terms, is called

46
accounting ratios . Ratio analysis is a technique of analysis and
Interpretation of financial statements. It is the process of establishing
and interpreting various ratios for helping in making certain decisions.
It is only a means of understanding of financial strengths and
weaknesses of a firm. There are a number of ratios which can be
calculated from the information given in the financial statements, but
the analyst has to select the appropriate data and calculate only a few
appropriate ratios.

Table 1 shows that over the course of five financial years of study the
mean of Credit Deposit Ratio in HDFC Bank is 81.74% . The
Compound Growth Rate in HDFC Bank is 1.79%. The credit deposit
ratio of HDFC Bank was highest in 2017-18 (85.02%) and lowest in
2013-14 (79.21).
The ratio of interest expenses to total expenses in HDFC Bank was
also increased from 54.71% to 55.83% during the period 2014-15 to
2015-16, afterward it was decreased from 55.83% to 55.18% during
the period 2015-16 to 2016-17 but further it was increased to 55.61%
in 2017-18.
The ratio of interest income to total income in HDFC Bank is
increased from 83.65% to 84.85% during the year 2014-15 to 2017-
18. The growth rate of HDFC Bank is 0.29%.
The table 4 shows that the ratio of other income to total income of
HDFC Bank was also increased from 16.12% in 2013-14 to 16.35%
in 2014-15. Afterward the share of other income in total income of
HDFC Bank was decreased from 16.35% to 15.15% during 2014-15
to 2017-18.
The table 5 shows that the ratio of net profits to total income of
HDFC Bank was increased from 15.88% to 17.78 during the period of
2013-14 to 2016-17, and decreased from 17.78% to 17.33% during
the period of 2016-17 to 2017-18. However, the net profit margin
was higher in HDFC Bank (2.19%) .

47
It is clear from the table 6 that the net worth ratio was decreased from
9.08% to 4.11% during 2013-14 to 2017-18 in HDFC Bank .
The table 7 shows that the mean value of total income of HDFC bank
was (Rs.50,388.43crores) during the period of study . However, the
rate of growth regarding total income was higher in HDFC Bank
(21.54%)

The table 8 discloses that the mean value of total expenditure of

HDFC Bank was (Rs.41,811.65 crore) during the period of study. In
HDFC Bank, the annual growth rate of expenditure was highest
(77.76%) in the year of 2014-15 and was lowest (46.63%) in the year
of 2017-18.
Table 9 presents that the mean of advances of HDFC Bank was
(3,13,645.99 ). Rate of growth was 24.17 % . Table also shows the per
cent Change in advances over the period of 5 years. In case of HDFC
Bank advances were continuously increased (with a decreasing trend)
.
Table 10 presents that the mean of deposits of HDFC Bank was
381502.15. The rate of growth was (21.99%) in HDFC Bank during
the period of study. Table also shows the per cent Change in Deposits
over the period of 5 years. In HDFC Bank Deposits were
continuously increasing over the period of study.

SUGGESTIONS :

1. Effective and regular follow up of the end use of funds sanctioned

is required to ascertain any embezzlement or diversion of funds . This
process can be undertaken every quarter so that any account
converting to NPA can be properly accounted for .
2 . Combining traditional wisdom with modern statistical tools like
Value-at -risk analysis and Markov Chain Analysis should be
48
Employed to assess the borrowers . This is to be supplemented by
information sharing among the bankers about the credit history of the
borrower . In case of new borrowers , especially corporate borrowers
,proper analysis of the cash flow statement of last five years is to be
done carefully .
3. A healthy Banker – borrower relationship should be developed .
Many instances have been reported about forceful recovery b the
banks ,which is against corporate ethics . Debt recovery will be much
easier in a congenial environment .
4 . Assisting the borrowers in developing his entrepreneurial skills
will not only establish a good relation between the borrowers but also
help the bankers to keep a track of their funds .

BIBLIOGRAPHY :
1.BOOKS :
Marketing Management (10th edition ) , Marketing Management (3rd
edition ) , Research Methodology (2nd edition ), Research
Methodology (3rd edition )

AUTHORS:
Philip Kotler ,V.S Ramaswamy ,C.R Kothary ,S.P Kasande

2. NEWS PAPERS:
 Times of India
 Financial Express

3. Websites :
www.hdfcbank.com , www.google.com

49