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Study about financial performance of HDFC bank using ratio analysis

Primary Objective

 To study the financial performance of HDFC bank using ratio


Secondary Objective

 To know the growth rate of the Bank.

 To study about the profitability position of HDFC Bank.
 To study about the future positioning of HDFC Bank.
 To give suggestions for improving the performance of bank.


Literature Review section comprises the literature on performance of bank, dimensions of

the performance of bank as; corporate social responsibility and performance indicator for
measuring the financial aspect, and the analytical hierarchy process model.

Joseph Jesly and Vetrivel, (2012) have studied the financial performance in connection with
Activity Based Costing, and concluded that better cost predictions, loss making products are
identified. The ABC can be used for cost reduction, DSS (Decision Support System) budgeting
and better performance measurement in order to improve the financial performance of the
Aggarwal Nisha, Gupta Neeti-HDFC provides full assistance to the creation, expansion and
modernization of industrial enterprises within the private sector in India and encourages the
participation of private capital, both internal and external, in such enterprises.

Khan M.Y Recently HDFC ltd. (along with two of its subsidiaries, HDFC Personal Finance
services Ltd, and HDFC Capital services ltd) has been merged with HDFC bank ltd; effective
from 2002. The erstwhile DFI has thus ceased to exist. Its main objective is to encourage and
promote private ownership of industrial investment and expansion of investment markets.

Singh A.B Tondon P. (2012) examined the financial performance of HDFC bank, public sector
and private sector respectively. The study

found that HDFC is performing well and financially sound.

Srinivas K., Saroja L (2013) analyzed the Financial Performance of HDFC bank. For this
purpose of analysis of financial performance of the HDFC bank using camel’s model with t-
test. The result showed that HDFC bank financial performance is high compared with other

Financial Performance of HDFC Bank Harish Kumar Singla has concerned with examining the
profitability position of the bank. The study reveals that the profitability position was
reasonable during the period of study when compared with the previous years. From the
study of the financial performance analysis of selected banks, it can be concluded that the
financial positions of banks is reasonable. Debt equity ratio is maintained at an adequate
level throughout and NPAs also witnessed a decline during the study period. The Return on
Investment remains at a very low position, which is a worrying factor. We can conclude that
the banking sector, which is going through major reforms, is one of the emerging sectors
and will grow at a sustained rate over a period of time profitability, efficiency and liquidity
of Hdfc banks.

Dr.Dimitrios p. Pertropulous 1 – George kyriazopoulos2 (2010) in his study he evaluated the

profitability, the efficiency and the liquidity of the Hdfc bank for the time period. The
analysis of the economic magnitudes of the Hdfc banks the groups of indexes such as: of
profitability, of efficiency and of liquidity are being implemented. From the analysis is
revealed that profitability and efficiency for the bank turn out to be very satisfactory. The
purpose is to present, to estimate and analyze the basic financial indexes of the bank that
become active at the present time. The estimation of the profitability and efficiency of the
Hdfc banks reaches satisfactory level.



The researcher has collected Secondary data for this study.

Secondary Data

In this present study, an attempt has been made to evaluate the financial performance of
HDFC. The study is based on the secondary data and the details are collected through
websites, magazines and journals. The time period of study is five years. Ratio analysis was
applied to analyze the performance of Hdfc bank. The Data collected has been tabulated
and analyzed by using ratio analysis.


Secondary data has been collected for this research. The data are collected from secondary
source such as websites, portals and journals. Five years data will be considered for the
financial performance using ratio analysis at Hdfc bank.

 Profit and Loss Accounts of HDFC Bank

 Common size balance sheet of HDFC Bank
 Financial Ratio Analysis
 Tables and Charts.


The major limitations of the present study are that the analysis is restricted to one particular
sector such as banking. It is confined to only measure the financial performance of Hdfc
bank using ratio analysis. The inherent limitation is secondary data. The published data is
not uniform and not properly disclosed by the bank. Hence this may be taken as another

1. The secondary data was taken from the annual reports of the banks. It
may be possible that the data shown in the annual reports may be
window dressed which does not show the actual position of the banks.
2. The study records restricted to a period of 5 years.
3. Ratio Analysis has its own limitations.
4. Although the time duration of the project is not up to the extent, the
collection of full-fledged data could not be achieved.

Financial performance can improve the financial strength of the bank. The efficient and
smooth functioning of all the activities of the bank depends upon the financial performance
of the bank. The financial performance analysis thus is a forward-looking exercise as it is
helpful in future financial planning decision making. It determine to analysis forecasting
future financial position. Through financial statement analysis, the present position and
operating efficiency of the bank as a whole and its different departments can be identified.
Further, the reasons for change in the profitability financial position of the bank can be
found and necessary measures can be taken.