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The document provides information about HDFC Bank, including its founder Hasmukh Bhai Parekh, incorporation in 1994, board of directors, major functions, capital structure, network across India and internationally, key accounts, new logo and tagline, services offered, achievements, vision, mission, values, and financial analysis including various ratios. The ratios analyzed include current ratio, quick ratio, debt-equity ratio, NAV ratio, net profit ratio, and return on capital employed ratio. Recommendations are provided to improve inventory management and market share.

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Prepared By- Damani vivek. Khambholiya Manan. SUBMITTED TO :- Pokar Bhargav. MS. Anupama Goswami. Hirpara Sailesh Rasadiya Mehul.
Founder of HDFC Hasmukh Bhai parekh In 1956 he began his financial affairs. In 1992, government of India honored him with Padma Bhushan. In 1994 he abode the earth.
HDFC BANK Housing Development Finance Corporation HDFC Bank was incorporated in August 1994 Among the first in new generation commercial banks 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 the RBI's liberalization of the Indian Banking Industry in 1994. Registered office in Mumbai, India Listed in NSE and BSE
BOARD OF DIRECTORS Mr. Jagdish Kapoor , chairman of HDFC Bank. Mr. Aditya Puri, Managing director Keki Mistry, Managing Director Mr. Harish Engineer, Executive directors Mr. A Rajan, Country Head-Operations Mr. Rahul Bhagat, Vice president
HDFC Focuses on Understanding the needs of customers and offering them superior product and service. Leveraging technology to service customers quickly and conveniently. To create quality of consumers and not quantity of Consumers. Providing and enabling environment to foster growth and learning for the employees.
THE THREE MAJOR FUNCTIONS OF HDFC BANK HDFC Bank deals with three key business segments:- Retail Banking Services Wholesale Banking Services Treasury Operations
Capital Structure The authorized capital of HDFC Bank is Rs550 crore (Rs5.5 billion). The paid-up capital is Rs424.6 crore (Rs.4.2 billion). The HDFC Group holds 19.4% of the bank's equity Roughly 28% of the equity is held by Foreign Institutional Investors (FIIs) and the bank has about 570,000 shareholders
NETWORK 761 branches 1977 ATMs in the country 327 cities in India 16 branches in Middle east 6 in Africa Representative offices in Hong Kong, New York, London & Singapore
Astudyonfinancialanalysisofhdfcbank 121208024517-phpapp02
Accounts of Religious institutions Shree siddhivinayak Ganpat Dargah khwaja sahib ,Ajmer Laxmi narayan mandir Delhi Mata vaishno devi Mandir Jagan Nath temple Shirdi Sai baba Golden temple Amarnath temple
ASSOCIATE COMPANIES
NEW LOGO AND TAG LINE
SERVICES ATM Credit Cards Net Banking Phone Banking Mobile Banking Loans
Achievements HDFC Bank merged with TIMES BANK in 2000. HDFC Bank merged with CENTURION BANK OF PUNJAB in 2007. HDFC Bank wins the Asian Banker Best Retail Bank in India Award 2008 for outstanding performance. HDFC Bank chosen as one of Asia Pacifics best 50 companies by Forbes magazine. 'Best Bank in the Private Sector 2008.' HDFC Bank ties up with Qatar National Bank.
VISION Increase market share in Indias banking sector Leverage technology platform Maintain standards for asset quality Focus on high earnings growth with low volatility Develop innovative products and services
MISSION Mission is to be "a World Class Indian Bank Benchmarking ourselves against: international standards and best practices in terms of product offerings, technology, service levels, risk management and audit & compliance.
VALUES Business philosophy is based on four core values Customer Focus Operational Excellence Product Leadership People
Analysis and Interpretation
RATIO ANALYSIS CLASSIFICATION OF RATIOS
Current Ratio Current ratio = Current assets Current liabilities 1.47 1.48 1.46 1.44 1.42 1.36 1.39 in % 1.40 1.38 1.36 1.34 1.32 2010 2011 2012 year
Interpretation: - An ideal current ratio is 2:1. The ratio 2:1 is considered as a safe margin of solvency due to the fact that if the current assets are reduced to half i.e. 1 instead of 2 then the creditors will be able to get their payments in full. Here, it shows that the bank has 1.36:1, 1.47:1 & 1.39:1 which is quite satisfactory but can be improved by better turnover and profit and also by decreasing liabilities.
Quick Ratio Quick ratio = quick asset Current liability 0.69 0.7 0.6 0.55 0.6 0.5 0.4 in % 0.3 0.2 0.1 0 2010 2011 2012 year
Interpretation If the ratio 1:1 then firm has enough cash on hand to meet all current liabilities. In cash position ratio 1:1 is satisfactory result. In 2009-2010 years ratio is 0.55:1 & 2010-11 years ratio is0.60:1 & 2011-12 years ratio is 0.69. It means the good position for the bank. In the cash position ratio cash is increase in 2010-11 compare with 2009-10. And also marketable securities increase in 2012
Debt Equity Ratio Debt Equity Ratio: = Long Term liability *100 Shareholders Fund 4.98 5 4.39 4.06 4.5 4 3.5 3 in % 2.5 2 1.5 1 0.5 0 2010 2011 2012 year
Interpretation This ratio is continues increasing but the figures are not satisfactory. This ratio indicates equity capital or owners capital is increasing. It should be 10 times higher than the present position.
NAV Ratio Net Assets Value(NAV) :- = Equity Shareholders Fund No. Of Equity Share 3.86 0.87 0.868 0.866 0.864 4.57 4.34 0.862 in % 0.86 0.858 0.856 0.854 2010 2011 2012 year
Interpretation In this ratio, total assets are far more than external liabilities. The banks treated solvent. In solvency ratio in 2010 is 4.57:1 and increase in 2011 is 4.35, it means that outside liabilities is always less than total assets.
Net profit ratio Net profit ratio = Net profit 100 Sales 12.37 12.37 12.4 12.35 12.3 in % 12.25 12.2 12.2 12.15 12.1 2010 2011 2012 year
Interpretation Generally this ratio is required 10 to 15%. If it is more than 15% than it shows good position but if it under 15% it is not good but required position is good. In 2010- 11the net profit ratio is 12.20%, & in 2011-12 the net profit ratio is 12.37% it is good for bank.
RAM ratio Return on capital employed ratio = Net profit X 100 Capital Employed 1.6 1.6 1.595 1.59 in % 1.585 1.58 1.58 1.58 1.575 1.57 2010 2011 2012 year
Interpretation Return on capital employed is stable around 1.60%. This ratio also shows wrote position. Because this is not satisfactory return on capital employed. In accordance to banking industry it should be between 2% to 4%. So that it can be said that return on capital employed is lower.
Recommendations Better inventory management is required because its consistently decreasing which is an obstacle to be in competition They are market leader but their nearest competitor is very close with respect to market share. So if they want to compete with them it is necessary to utilize their resource in best way
CONCLUSION Success is achieved by those who try where there is nothing to lose by trying and a great deal to gain if successful, by all means try The study may be a helpful step ahead in increasing the morale of each Employee By studying this, Bank will can come to know that what effective measure can be take to maintain the effective use of resources. Such results and conclusions are definitely helpful in order to achieve goals of the organization in this modern business world. There is a lot to be said for valuing a company, it is no easy task. I hope that I have helped shed some light on this topic and that you will use this information to make educated investment decision.
Astudyonfinancialanalysisofhdfcbank 121208024517-phpapp02

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Astudyonfinancialanalysisofhdfcbank 121208024517-phpapp02

  • 1. Prepared By- Damani vivek. Khambholiya Manan. SUBMITTED TO :- Pokar Bhargav. MS. Anupama Goswami. Hirpara Sailesh Rasadiya Mehul.
  • 2. Founder of HDFC Hasmukh Bhai parekh In 1956 he began his financial affairs. In 1992, government of India honored him with Padma Bhushan. In 1994 he abode the earth.
  • 3. HDFC BANK Housing Development Finance Corporation HDFC Bank was incorporated in August 1994 Among the first in new generation commercial banks 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 the RBI's liberalization of the Indian Banking Industry in 1994. Registered office in Mumbai, India Listed in NSE and BSE
  • 4. BOARD OF DIRECTORS Mr. Jagdish Kapoor , chairman of HDFC Bank. Mr. Aditya Puri, Managing director Keki Mistry, Managing Director Mr. Harish Engineer, Executive directors Mr. A Rajan, Country Head-Operations Mr. Rahul Bhagat, Vice president
  • 5. HDFC Focuses on Understanding the needs of customers and offering them superior product and service. Leveraging technology to service customers quickly and conveniently. To create quality of consumers and not quantity of Consumers. Providing and enabling environment to foster growth and learning for the employees.
  • 6. THE THREE MAJOR FUNCTIONS OF HDFC BANK HDFC Bank deals with three key business segments:- Retail Banking Services Wholesale Banking Services Treasury Operations
  • 7. Capital Structure The authorized capital of HDFC Bank is Rs550 crore (Rs5.5 billion). The paid-up capital is Rs424.6 crore (Rs.4.2 billion). The HDFC Group holds 19.4% of the bank's equity Roughly 28% of the equity is held by Foreign Institutional Investors (FIIs) and the bank has about 570,000 shareholders
  • 8. NETWORK 761 branches 1977 ATMs in the country 327 cities in India 16 branches in Middle east 6 in Africa Representative offices in Hong Kong, New York, London & Singapore
  • 10. Accounts of Religious institutions Shree siddhivinayak Ganpat Dargah khwaja sahib ,Ajmer Laxmi narayan mandir Delhi Mata vaishno devi Mandir Jagan Nath temple Shirdi Sai baba Golden temple Amarnath temple
  • 12. NEW LOGO AND TAG LINE
  • 13. SERVICES ATM Credit Cards Net Banking Phone Banking Mobile Banking Loans
  • 14. Achievements HDFC Bank merged with TIMES BANK in 2000. HDFC Bank merged with CENTURION BANK OF PUNJAB in 2007. HDFC Bank wins the Asian Banker Best Retail Bank in India Award 2008 for outstanding performance. HDFC Bank chosen as one of Asia Pacifics best 50 companies by Forbes magazine. 'Best Bank in the Private Sector 2008.' HDFC Bank ties up with Qatar National Bank.
  • 15. VISION Increase market share in Indias banking sector Leverage technology platform Maintain standards for asset quality Focus on high earnings growth with low volatility Develop innovative products and services
  • 16. MISSION Mission is to be "a World Class Indian Bank Benchmarking ourselves against: international standards and best practices in terms of product offerings, technology, service levels, risk management and audit & compliance.
  • 17. VALUES Business philosophy is based on four core values Customer Focus Operational Excellence Product Leadership People
  • 18. Analysis and Interpretation
  • 20. Current Ratio Current ratio = Current assets Current liabilities 1.47 1.48 1.46 1.44 1.42 1.36 1.39 in % 1.40 1.38 1.36 1.34 1.32 2010 2011 2012 year
  • 21. Interpretation: - An ideal current ratio is 2:1. The ratio 2:1 is considered as a safe margin of solvency due to the fact that if the current assets are reduced to half i.e. 1 instead of 2 then the creditors will be able to get their payments in full. Here, it shows that the bank has 1.36:1, 1.47:1 & 1.39:1 which is quite satisfactory but can be improved by better turnover and profit and also by decreasing liabilities.
  • 22. Quick Ratio Quick ratio = quick asset Current liability 0.69 0.7 0.6 0.55 0.6 0.5 0.4 in % 0.3 0.2 0.1 0 2010 2011 2012 year
  • 23. Interpretation If the ratio 1:1 then firm has enough cash on hand to meet all current liabilities. In cash position ratio 1:1 is satisfactory result. In 2009-2010 years ratio is 0.55:1 & 2010-11 years ratio is0.60:1 & 2011-12 years ratio is 0.69. It means the good position for the bank. In the cash position ratio cash is increase in 2010-11 compare with 2009-10. And also marketable securities increase in 2012
  • 24. Debt Equity Ratio Debt Equity Ratio: = Long Term liability *100 Shareholders Fund 4.98 5 4.39 4.06 4.5 4 3.5 3 in % 2.5 2 1.5 1 0.5 0 2010 2011 2012 year
  • 25. Interpretation This ratio is continues increasing but the figures are not satisfactory. This ratio indicates equity capital or owners capital is increasing. It should be 10 times higher than the present position.
  • 26. NAV Ratio Net Assets Value(NAV) :- = Equity Shareholders Fund No. Of Equity Share 3.86 0.87 0.868 0.866 0.864 4.57 4.34 0.862 in % 0.86 0.858 0.856 0.854 2010 2011 2012 year
  • 27. Interpretation In this ratio, total assets are far more than external liabilities. The banks treated solvent. In solvency ratio in 2010 is 4.57:1 and increase in 2011 is 4.35, it means that outside liabilities is always less than total assets.
  • 28. Net profit ratio Net profit ratio = Net profit 100 Sales 12.37 12.37 12.4 12.35 12.3 in % 12.25 12.2 12.2 12.15 12.1 2010 2011 2012 year
  • 29. Interpretation Generally this ratio is required 10 to 15%. If it is more than 15% than it shows good position but if it under 15% it is not good but required position is good. In 2010- 11the net profit ratio is 12.20%, & in 2011-12 the net profit ratio is 12.37% it is good for bank.
  • 30. RAM ratio Return on capital employed ratio = Net profit X 100 Capital Employed 1.6 1.6 1.595 1.59 in % 1.585 1.58 1.58 1.58 1.575 1.57 2010 2011 2012 year
  • 31. Interpretation Return on capital employed is stable around 1.60%. This ratio also shows wrote position. Because this is not satisfactory return on capital employed. In accordance to banking industry it should be between 2% to 4%. So that it can be said that return on capital employed is lower.
  • 32. Recommendations Better inventory management is required because its consistently decreasing which is an obstacle to be in competition They are market leader but their nearest competitor is very close with respect to market share. So if they want to compete with them it is necessary to utilize their resource in best way
  • 33. CONCLUSION Success is achieved by those who try where there is nothing to lose by trying and a great deal to gain if successful, by all means try The study may be a helpful step ahead in increasing the morale of each Employee By studying this, Bank will can come to know that what effective measure can be take to maintain the effective use of resources. Such results and conclusions are definitely helpful in order to achieve goals of the organization in this modern business world. There is a lot to be said for valuing a company, it is no easy task. I hope that I have helped shed some light on this topic and that you will use this information to make educated investment decision.

Editor's Notes

  • #7: liberalization of the financial market in India, corporate need more sophisticated risk management information advice and product structure. including working capital finance trade services, transactional services, cash management
  • #11: There are more than 50 religious institutes which open there account in HDFC bank recently some of the famous temples are