ANALYSIS OF HDFC

BANK

Prepared By :-

Kuheli Hazara

Kunal Sharma

Megha Rawat

Makesh Nair

Manish Lakhchaura

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

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 (Rs5.5billion).

• 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 InstitutionalInvestors (FIIs) and the bank has about 570,000 shareholders

NETWORK

2,776 branches

10,490 ATM’s in the

country

1,399 cities in India

16 branches in Middle

east

6 in Africa

Representative offices

in Hong Kong, New York,

London & Singapore

ASSOCIATE COMPANIES

PEST ANALYSIS

POLITICAL FACTORS

1. Government Regulations

2. Stable Constituency

3. Fiscal Policy

ECONOMIC FACTORS

1. Market Performance

2. Global Standards

3. Inflation

• SOCIAL FACTORS

Community Initiatives

Income

• TECHNOLOGICAL

FACTORS

This is the era of information

technology and due to net

banking, online transaction, online

RTGS, clearing system helps the

industry a lot.

SWOT ANALYSIS

Strengths

1. Extensive distribution network consisting of 2,776 branches in 10,749 cities

2. Strong brand equity

3. ISO 9001 certification

Weakness

1. Account opening and delivery of cheque book takes more time.

2. Lack of availability of different CC limits, bill discounting facilities.

Opportunity

1. Door step services

2. Branch expansion

Threats

1. Facing competition from competitors like SBI, PNB.

Analysisand

Interpretation

• RATIO ANALYSIS

• CLASSIFICATION OF RATIOS

Ratio Analysis

Current Ratio

Quick Ratio

Debt-Equity Ratio

Net Assets value Ratio

Net Profit Ratio

RCE Ratio

Current Ratio

Current Ratio(2012)

HDFC 0.08

ICICI 0.13

SBI 0.05

0

0.02

0.04

0.06

0.08

0.1

0.12

0.14

HDFC 2012 ICICI 2012 SBI 2012

Current Ratio

Current Ratio

INTERPRETATION

It increased by 2012 by 0.02%.

Quick Ratio

Quick Ratio(2012)

HDFC 6.20

ICICI 16.71

SBI 12.05

0

2

4

6

8

10

12

14

16

18

HDFC 2012 ICICI 2012 SBI 2012

Quick Ratio

Quick Ratio

INTERPRATATION

It decreased by 0.69% in 2012.

Debt – Equity Ratio

DER(2012)

HDFC 9

ICICI 7.2

SBI 14.8

0

2

4

6

8

10

12

14

16

HDFC 2012 ICICI 2012 SBI 2012

Debt Equity Ratio

DEBT EQUITY RATIO

INTERPRETAION

In 2012 debt equity ratio has increased by 3.9%.

NAV Ratio

NAV Ratio(2012)

HDFC 0.12

ICICI 0.09

SBI 0.10

0

0.02

0.04

0.06

0.08

0.1

0.12

0.14

HDFC 2012 ICICI 2012 SBI 2012

Asset turnover Ratio

Asset turnover Ratio

INTERPRETATION

It increased by 0.01% in 2012.

Earning per share

EPS (2012)

HDFC 26.51

ICICI 56.09

SBI 221.39

0

50

100

150

200

250

HDFC 2012 ICICI 2012 SBI 2012

Earning Per Share

EARNING PER SHARE

INTERPRETATION

IN 2012 EARNING PER SHARE IS DECREASE BY 62%.

Dividend per share

DPS (2012)

HDFC 4.30

ICICI 16.50

SBI 35.00

0

5

10

15

20

25

30

35

40

HDFC 2012 ICICI 2012 SBI 2012

Dividend Per Share

DIVIDEND PER SHARE

INTERPRETATION

Dividend per share decreased by 12.50%.

Dividend yield ratio

DYR(2012)

HDFC 0.67%

ICICI 1.52%

SBI 1.58%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1.60%

1.80%

HDFC 2012 ICICI 2012 SBI 2012

Dividend Yield Ratio

DIVIDEND YIELD RATIO

INTERPRETATION

In 2012 it’s increased by 0.13%.

Price earning ratio

PER(2012)

HDFC 21.6

ICICI 15.75

SBI 10.00

0

5

10

15

20

25

HDFC 2012 ICICI 2012 SBI 2012

Price Earning Ratio

Price Earning Ratio

INTERPRETATION

In 2012 price earning is decrease by 6.5%.