Performance analysis of

Banking sector in India

SUBMITTED BY :
N A M E : S U R A J R AWAT
ROLL NO : 21BCMN037
SUBMITTED TO : SWATI PRAJAPAT SEMESTER : 6TH
 OVERVIEW OF BANKING SECTOR IN INDIA

The banking sector in India is a vital component of the country's

economy, consisting of various types of banks such as public sector
banks, private sector banks, foreign banks, cooperative banks, and
regional rural banks. Regulated by the Reserve Bank of India (RBI), it
facilitates financial intermediation, provides a wide range of banking
services, and plays a crucial role in fostering economic growth and
development. Over the years, the sector has witnessed significant
reforms, including liberalization, digitization, and financial inclusion
initiatives, aimed at expanding access to banking services and enhancing
efficiency. Despite facing challenges like non-performing assets (NPAs),
regulatory compliance, and technological advancements, the banking
sector continues to evolve and adapt to meet the changing needs of the
Indian economy and its diverse customer base
 Ratio Analysis of HDFC bank

1. Margin Ratios
2019 2020 2021 2022 2023
Net interest margin 3.97 3.79 3.85 3.64 3.67
Operating profit margin 3.32 1.97 3.51 4.7 7.16
Net profit margin 21.34 22.33 24.78 28.06 27.02

2.Return Ratios
2019 2020 2021 2022 2023
Return on Equity 14.53 15.45 15.17 15.58 15.89
ROCE 3.45 3.43 3.57 3.38 3.1
Return on Assets 1.72 1.72 1.76 1.79 1.81

3.Valuation Ratios
2019 2020 2021 2022 2023
P/E 13.91 17.29 25.81 21.38 19.48
P/B 4.11 2.68 3.92 3.3 3.1

4. Other Ratios
2019 2020 2021 2022 2023
CASA 42.32 42.18 46.07 48.13 44.37

Capital Adequacy Ratios 17.11 18.52 18.79 18.9 19.26

 18
30
16
25
14

20 12

Net interest margin 10 Return on Equity

15 Operating profit ROCE
margin 8
Return on Assets
10 Net profit margin 6

4
5
2

0 0
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023

60 30

50 25

40 20

CASA
30 15 P/E
Capital Adequacy Ratios
P/B
20 10

10 5

0 0
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
SWOT ANALYSIS OF HDFC BANK
 RATIO ANALYSIS OF SBI

1. Margin Ratios
2019 2020 2021 2022 2023
Net interest margin 2.5 2.59 2.51 2.49 2.7
Operating profit margin -29.14 -29.63 -29.82 -27.81 -18.8
Net profit margin 1.21 6.73 8.73 12.53 16.12

2.Return Ratios
2019 2020 2021 2022 2023
Return on Equity 0.98 8.69 8.89 12.53 16.8
ROCE 0 1.94 1.77 1.57 1.74
Return on Assets 0.05 0.47 0.46 0.65 0.93

3.Valuation Ratios
2019 2020 2021 2022 2023
P/E 124.32 8.89 14.51 12.45 8.4
P/B 1.22 0.77 1.29 1.56 1.41

4. Other Ratios
2019 2020 2021 2022 2023
CASA 45.74 44.17 45.4 44.51 42.66

Capital Adequacy Ratios 13 13.33 13.74 13.85 14.68

20
18

16
10
14
0 12
2019 2020 2021 2022 2023
Net interest margin
10 Return on Equity
-10 Operating profit margin
Net profit margin 8 ROCE
Return on Assets
-20 6

4
-30
2

-40 0
2019 2020 2021 2022 2023

50 140
45
120
40
35 100
30
25 CASA 80
P/E
20 Capital Adequacy Ratios P/B
60
15
10 40
5
20
0
2019 2020 2021 2022 2023 0
2019 2020 2021 2022 2023
SWOT ANALSIS OF SBI BANK
 COMPARATIVE ANALYSIS

NET INTEREST MARGIN

• Hdfc bank has decreased its net

4.5
interest margin in last 5 years form
4
3.97 to 3.6 in year ending 2019 to
3.5
2023 .
3
• Sbi maintain it,s net interest margin
2.5
HDFC ratio in last 5 years
2 SBI

1.5

0.5

0
2019 2020 2021 2022 2023
 COMPARATIVE ANALYSIS

RETURN ON EQUITY

18
HDFC shows stable
16

14
growth in last 5 years
12
On the other hand sbi
10
HDFC
shows over 90% growth
8 SBI in last 5 years
6

0
2019 2020 2021 2022 2023
 COMPARATIVE ANALYSIS

CASA

CASA HDFC maintain CASA

49
ratio above 42% in last 5
48 years which is more than
47

46
industry average .
HDFC
45 SBI CASA ratio of sbi has
44

43 decreased from 45.4 % in

42

41
2019 to 42.66% in 2023.
40

39
2019 2020 2021 2022 2023
 COMPARATIVE ANALYSIS

CAPITAL ADEQUACY RATIO

25
Both banks performing
20
well and shows stable
growth in last 5 years .
15

HDFC
SBI
10

0
2019 2020 2021 2022 2023
THANK YOU!