A

SUMMER TRAINING REPORT

ON

“A Comprehensive Study On
Financial Analysis

OF H.D.F.C. BANK
SUBMITTED TO

IN PARTIAL FULFILMENT OF THE REQUIREMENT

FOR THE AWARD OF
MASTER DEGREE IN BUSINESS
FOR THE SESSION 2009-11

Under the guidance of: Submitted by:

SANJAY RAHUJA SHRUTI
BRANCH MANAGER MBA II
HDFC BANK, JIND

KURUKSHETRA UNIVRSITY POST GRADUATE

REGIONAL CENTRE, JIND - 126102

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2
 PREFACE

Using a new pattern based on proper integration of formal teaching and actual
practice the M.B.A. program of Kurukshetra University,Kurukshetra has it course for six
weeks industrial training, after the second semester, so as the students could begin to
have the feeling of business environment right in the beginning. Practical training
constitutes an integral part of management studies. Training gives an opportunity to the
students to expose them to the industrial environment, which is quite different from the
classroom teaching.

The practical knowledge is an important suffix to the theoretical knowledge. One

cannot rely merely upon theoretical knowledge. Is has to be coupled with practical for it
to be fruitful. The training also enables the management students to themselves see the
working conditions under which they have to work in the future.

After Liberalization of Indian economy sense is changed because of Multi

National Companies continuously coming with their technical expertise and improved
management concepts. Industrial activity in India has become a thing to watch and I
really wanted to be a part of it and it is essential for me being a finance student.

I consider myself lucky to get my summer training in HDFC BANK Jind. I

underwent six weeks of training. It really helped me to get a practical insight into the
actual business environment and provide me an opportunity to make my Financial
Management concepts more clear. The advantage of this sort of integration which
promotes guided adjustment to 4 corporate culture, functional, social and other norms
with formal teaching
Are:
• To Bridge the gap between theory and practice
• To install feeling of belongingness and acceptance
• To cultivate proper temperament & to generate much morale
• To help students identify their strong & weak points in the following &
appreciating organization activities.

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 DECLARATION

I SHRUTI, studying in Department Of Management, Kurukshetra University, Kurukshetra,

do hereby declare that this project has been prepared by me, under the guidance of Mr.
Sanjay Rahuja Branch Manager,HDFC Bank Jind. This is after undergoing the training
in the said organization, which is in partial fulfillment for the requirement of two-year full
time MBA degree.

I further declare that this project report has not been submitted earlier to any other
University or Institute for the award of any degree or diploma.

Signature of the Candidate

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 ACKNOWLEDGEMENT

"Sometimes our light goes out

But is blown into flame by another human being

Each of us owes deepest thanks

To those who have rekindled this light"

No work is a single man’s effort. Cooperation, guidance and coordination are

required at various levels for the successful completion of a project. There is always a
sense of gratitude that one likes it express towards the persons who helped to change an
effort in a success. The opportunity to express my indebtedness to people who have
helped me to accomplish this task.

I deem it a proud privilege to extend my greatest sense of gratitude to my guide

MISS SONIA MITTAL (ASSISTANT MANAGER, HDFC BANK jind) for the keen
interest, inspiring guidance, Continuous encouragement, valuable suggestions and
constructive criticism throughout the pursuance of this report.

My sincere thanks are due to MR. Sanjay Rahuja (BRANCH MANAGER) for
their valuable support in helping me to gain this opportunity of being associated with an
organization of such esteem.

Last but not least it would be unfair if I don’t extend my indebtedness to my parents
and all my friends for their active cooperation which was of great help during the course
of my training project.

SHRUTI
MBA (Final Year)

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 EXECUTIVE SUMMARY

“Undertake something is difficult,

It will do you good,
Unless you try to do something
Beyond what you have already mastered
You will never grow”.
--RONALDE.OSBORN

I did my training in HDFC BANK Jind. The concept of this project is to check whether
HDFC BANK is performing well year after year or lacking in performance. The
performance can be evaluated by doing Financial Analysis of Financial Statements of
Bank. The Purpose of this project is to evaluate the performance of HDFC BANK. It
primarily aims at learning the various factors that can help me evaluation Process.

I have tried to find out the reasons or ground where it is lacking. I have also tried to find
out the areas of improvement. In order to do financial analysis of co. the various tools
like RATIO ANALYSIS, COMPARATIVE FINANCIAL STATEMENT AND TREND
PERCENTAGES have been used. In statistical tools, I’ve used CORRELATION, TIME
SERIES ANALSIS (TREND VALUES).

In Hypothesis testing, I’ve used ANOVA TEST. The project also includes Objective of
study, Research Methodology, Analysis and Interpretation, Findings recommendations
limitation of study conclusion bibliography and Annexure.

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 Table of Content
Topic Page No.

Chapter 1 - Introduction
Bank’s Profile 9-27
a. Promoters
b. Business Focus
c. Capital Structure
d. Business Profile
e. Growth and Present status of Industry
f. Achievements of Bank
g. Loans and Cards
h. Board of Directors
About the Topic 28-33
Chapter 2 – Research Methodology
Meaning of Research 35
Problem Statement 36
Objective of study 37
Data Base 38-39
Analysis Tools 40
Research Design 40-41
Chapter 3 – Analysis and Interpretation
Ratio Analysis- Theoretical Portion 43-52
Ratio Analysis- Practical Portion 53- 62
Chapter 4 – Result & Findings

SWOT Analysis of HDFC Bank 64

Summary of Learning Experience 65
Findings & Recommendation 66
Conclusion 67
Annexure
Profit &Loss A/c 68
Balance Sheet 69
Bibliography 70
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8
 INTRODUCTION OF BANKING

Meaning and definition

Bank is an institution that deals in money and its substitutes and provides crucial
financial services. The principal type of baking in the modern industrial world is
commercial banking & central banking. Banking Means "Accepting Deposits for the
purpose of lending or Investment of deposits of money from the public, repayable on
demand or otherwise and withdraw by cheque, draft or otherwise.
"Banking Companies (Regulation) Act, 1949

The concise oxford dictionary has defined a bank as "Establishment for custody of
money which it pays out on customers order." Intact this is the function which the bank
performed when banking originated. "Banking in the most general sense, is meant the
business of receiving, conserving & utilizing the funds of community or of any special
section of it. By H.Wills & J.Bogan"

A banker of bank is a person, a firm, or a company having a place of business where

credits are opened by deposits or collection of money or currency or where money is
advanced and waned. By Findlay Shera

A Bank
• Accept deposits of money from public,
• Pays interest on money deposited with it.
• Lends or invests money
• Repays the amount on demand,
• Allow the money deposited to be with drawn by cheque or draft.

ORIGIN OF WORD BANK

The origin of the word bank is shrouded in mystery. According to one view point the
Italian business house carrying on crude from of banking were called ban chi ban Cheri"

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According to another viewpoint banking is derived from German word "Branch" which
mean heap or mound. In England, the issue of paper money by the government was
referred to as arising a bank.

BANKING SYSTEM IN INDIA

We can identify there distinct phases in the history of Indian banking:

1. Early phase from 1786-1969.

2. Nationalization of banks and up to 1991 prior to banking sector Reforms.

3. New phase of Indian banking with the advent of financial banking. Banking in India
has its origin as early or Vedic period. It is believed that the transitions from many.
Lending to banking must have occurred even before Manu, the great Hindu furriest, who
has devoted a section of his work to deposit and advances and laid down rules relating to
the rate of interest. During the mogul period, the indigenous banker played a very
important role in lending money and financing foreign trade and commerce.

During the days of the East India Company it was the turn of agency house to carry on
the banking business. The General Bank of India was the first joint stock bank to be
established in the year 1786. The other which followed was the Bank of Hindustan and
Bengal Bank. The Bank of Hindustan is reported to have continued till 1906. While other
two failed in the meantime. In the first half of the 19th century the East India Company
established there banks, the bank of Bengal in 1809, the Bank of Bombay in 1840 and the
Bank of Bombay in1843. These three banks also known as the Presidency banks were the
independent units and functioned well. These three banks were amalgamated in 1920 and
new bank, the Imperial Bank of India was established on 27th January, 1921.

With the passing of the State Bank of India Act in 1955 the undertaking of the Imperial
Bank of India was taken over by the newly constituted SBI. The Reserve Bank of India
(RBI) which is the Central bank was established in April, 1935 by passing Reserve bank
of India act 1935. The Central office of RBI is in Mumbai and it controls all the other
banks in the country.

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 PROFILE OF THE ORGANISATION

HOUSING DEVELOPMENT FINANCE CORPORATION (HDFC BANK)

INTRODUCTION

The project was carried out for understanding the customer preference & attributes
towards saving Account of HDFC Bank and its market potential.HDFC Bank was
established in the year 1994, they are old player in banking sector, The bank has
two principle client segments –customer and asset management. The bank follows
values such as – Integrity, teamwork, respect, professionalism, & Mission. The
segment of bank we are considering here is- Corporate banking. The product out of
which have chosen for research is Saving Accounts. This research helps us in
finding out the customers view regarding the product and Services offered by the
HDFC bank and awareness by promotion and also identifying the market potential
of the product offered by the HDFC bank.
The housing development finance corporation limited (HDFC) 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 RBI liberalization of Indian banking industry in
1994. The bank was in corporate in Aug. 1994 in the name of HDFC Bank Ltd. With its
registered office in Mumbai, India, HDFC Bank commenced operations as scheduled
commercial bank in January 1995.

PROMOTOR

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 1997, the corporation
has maintained a consistent and healthy growth in its operations to remain a market
leader in mortgage. Its outstanding loan portfolio covers well over a million dwelling
units.

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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, a strong 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 bank has aim to build sound
customer franchises across district business so as to be the prefer provider of banking
services in the segment that the bank operates in 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 and regulatory compliance. HDFC bank's business philosophy is based on four
core values:

1. Operational Excellence
2. Customer Focus
3. Product Leadership
4. People.

CAPITAL STRUCTURE
The authorized capital of HDFC bank is Rs. 45000 Lakhs. The issued, subscribed and
paid-up capital is divided into 836, 46 lacks equity shares @ Rs.10/- each.

TIMES BANKS AMALGAMATION

In a mile stone transaction in Indian banking industry, Times bank limited (another new
private sector bank promoted by Bennett, Coleman & Co. time’s group) was merged with
HDFC bank ltd., effective February 26, 2000. As per the scheme of amalgamation
Approved by the share holders of both banks and Reserve bank of India.

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DISTRIBUTION NETWORK

HDFC bank has its Headquarters in Mumbai. The bank at present has an enviable
network of 535branches spread over 312 cities across the country. All branches are linked
on an online real time basis. Customers in 189 locations are also serviced through phone
banking.

The banks expansion plans take into account the need to have a presence in all major
industrial and commercial centers where its corporate customers are located as well as the
need to build a strong retail customer base for both deposits and loans products. Being a
Clearing settlement bank to various leading stock exchanges, the bank has branches in
centers where the NSE/BSE have a strong and active member base. The bank also have a
network of 1323ATM's across there cities.

TECHNOLOGY

HDFC bank operates in a highly automated environment in terms of information

technology and communication systems. The entire bank's branches have connectivity
which enables the bank to offer speedy funds transfer facility 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 infrastructure for a world class bank has prioritized
its engagement in technology and the internet as one of its key goals and has already
made significant progress in web enabling its core business. In each office its business,
the Bank has succeeded in leveraging its market position, expertise and technology to
create a competitive advantage and build market share.

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BUSINESS PROFILE
HDFC Bank caters to wide range of banking services covering both commercial and
investment banking on the wholesale side and transactional branch banking on the retail
side. The bank three key business areas

1. WHOLESALE BANKING SERVICES

The Bank's target is primary large blue-chip manufacturing companies in the Indian
corporate sector and to a lesser extent, emerging mid sized corporate. For these corporate
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 structure solution which combines cash
management services with vendors 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 in roads into the Banking consortia of a number of leading
India corporate including Multinationals, Companies from the domestic business house
and prime public sector companies. It is recognized as a leading provider of cash
management and transactional Banking solutions to corporate customers, Mutual Funds,
Stock Exchange Members and Bank.

2. RETAIL BANKING SERVICES

The objective of retail bank is to provide its target market customer a full range of
financial products and banking service, giving the customer a one-stop window for all
his/her banking requirements. The products are backed by world-class services and
delivered to the customers through the growing branch network as well as though
alternative delivery channels like ATMs, phone banking, net banking and mobile
banking.
The HDFC bank preferred programs for high net worth individuals, the HDFC bank plus
and the investment advisory services program have been designed keeping in mind heads
of customers who seek distinct financial solutions information and advice on various
investment avenues. The also had a wide array of retail ban products including auto
loans, loans against marketable securities, personal loans and loans for two wheelers. It is
14
also a leading provider of depository service to retail customers offering 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 election) and issue the master card Maestro debit card as
well. The debit card allows the use to directly debit his account at the point of purchase at
a merchant establishment, in India and overseas. The banks launch its credit card in
association with VISA in November 2002. The bank is also one of the leading players in
the "merchant acquiring" business with 26,400 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 interest banking
services for fixed deposit, loans, bill payments etc.

3. TREASURY OPERATIONS
Within this business the bank has three main product areas foreign exchange and
derivative, local currency, money market & debt securities and equities. With the
liberalization of the financial market in India, corporate need more sophisticated risk
management information advice and product structure. These and find pricing on various
treasury products are provided through the bank treasury team.

Growth and present status of the industry

Currently (2009), banking in India is generally fairly mature in terms of supply, product range
and reach-even though reach in rural India still remains a challenge for the private sector and
foreign banks. In terms of quality of assets and capital adequacy, Indian banks are considered to
have clean, strong and transparent balance sheets relative to other banks in comparable economies
in its region. The Reserve Bank of India is an autonomous body, with minimal pressure from the
government

The stated policy of the Bank on the Indian Rupee is to manage volatility but without any fixed
exchange rate-and this has mostly been true. With the growth in the Indian economy expected to
be strong for quite some time-especially in its services sector-the demand for banking services,
especially retail banking, mortgages and investment services are expected to be strong. One may
also expect M&As, takeovers, and asset sales. In March 2006, the Reserve Bank of India allowed

15
Warburg Pincus to increase its stake in Kotak Mahindra Bank (a private sector bank) to 10%.
This is the first time an investor has been allowed to hold more than 5% in a private sector bank
since the RBI announced norms in 2005 that any stake exceeding 5% in the private sector banks
would need to be vetted by them. Currently, India has 88 scheduled commercial banks (SCBs) -
27 public sector banks (that is with the Government of India holding a stake)after merger of New
Bank of India in Punjab National Bank in 1993, 29 private banks (these do not have government
stake; they may be publicly listed and traded on stock exchanges) and 31 foreign banks. They
have a combined network of over 53,000 branches and 17,000 ATMs. According to a report by
ICRA Limited, a rating agency, the public sector banks hold over 75 percent of total assets of the
banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively
Introduction of many more products and facilities in the banking sector in its reforms measure. In
1991, under the chairmanship of M Narasimham, a committee was set up by his name which
worked for the liberalization of banking practices.

The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a
satisfactory service to customers. Phone banking and net banking is introduced. The entire system
became more convenient and swift. Time is given more importance than money. In 1995, the
Brookings Institution published a paper entitled “The Transformation of the U.S. Banking
Industry: What a Long, Strange Trip It’s Been.” Using a breathtaking array of facts and figures,
the paper described in great detail the dramatic changes that had occurred in the U.S. commercial
banking industry over the 15 years from 1979 to 1994. The banking industry was transformed
during that period, according to the paper (p. 127), by “the massive reduction in the number of
banking organizations; the significant increase in the number of failures; the dramatic rise in off-
balance sheet activities; the major expansion in lending to U.S. corporations by foreign banks; the
widespread adoption of ATMs; and the opening up of interstate banking

The paper went on to explain that most of these major changes in banking could be traced to two
developments: (1) the extraordinary number of major regulatory changes during the period, from
deposit deregulation in the early 1980s to the relaxation of branching restrictions later in the
decade; and (2) clearly identifiable innovations in technology and applied finance, including
Improvements in information processing and telecommunication technologies, the securitization
and sale of bank loans, and the development of derivatives markets. Other research would later
confirm the paper’s assessments and its explanation of the course of events in the banking
industry over the period 1979–1994.

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Over the two decades 1984–2003, the structure of the U.S. banking industry indeed underwent an
almost unprecedented transformation—one marked by a substantial decline in the number of
commercial banks and savings institutions and by a growing concentration of industry assets
among a few dozen extremely large financial institutions. This is not news. As mentioned above,
the decline in the number of banking organizations has been ongoing for more than two decades
and has been well documented in the literature. Nevertheless, a brief overview will serve to
clarify both the scope of the decline and the increasing concentration of assets among the nation’s
largest banking organizations

At year-end 1984, there were 15,084 banking and thrift organizations (defined as commercial
bank and thrift holding companies, independent banks, and independent thrifts). By year-end
2003, that number had fallen to 7,842—a decline of almost 48 percent. Distributed by size, nearly
all the decline occurred in the community bank sector (organizations with less than $1 billion in
assets in 2002 dollars), and especially among the smallest size group (less than $100 million in
assets in 2002 dollars).Yet the community banking sector still accounts for 94 percent of banking
organizations.

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Present Status of the Organization

March 2007 March 2008 March 2009

Citied 228 316 452

Branches 535 684 1412

ATMs 1323 1605 3275

Housing Development Finance Corporation Limited, more popularly known as HDFC Bank Ltd,
was established in the year 1994, as a part of the liberalization of the Indian Banking Industry by
Reserve Bank of India (RBI). It was one of the first banks to receive an 'in principle' approval
from RBI, for setting up a bank in the private sector. The bank was incorporated with the name
'HDFC Bank Limited', with its registered office in Mumbai. The following year, it started its
operations as a Scheduled Commercial Bank. Today, the bank boasts of as many as 1412
branches and over 3275 ATMs across India. Am
In 2002, HDFC Bank witnessed its merger with Times Bank Limited (a private sector bank
promoted by Bennett, Coleman & Co. / Times Group). With this, HDFC and Times became the
first two private banks in the New Generation Private Sector Banks to have gone through a
merger. In 2008, RBI approved the amalgamation of Centurion Bank of Punjab with HDFC
Bank. With this, the Deposits of the merged entity became Rs. 1,22,000 crore, while the
Advances were Rs. 89,000 crore and Balance Sheet size was Rs. 1,63,000 crore.

ACHIEVEMENTS OF HDFC Bank

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Business Today- Monitor Group One of India's "Most Innovative
Survey Companies"

Financial Express- Ernst & Young Best Bank Award in the Private Sector
Award category

Global HR Excellence Awards 'Employer Brand of the Year 2007 -2008'

- Asia Pacific HRM Congress: Award - First Runner up, & many more

Business Today 'Best Bank' Award

Dun & Bradstreet – American Express 'Corporate Best Bank' Award

Corporate Best Bank Award 2007

The Bombay Stock Exchange and ' Best Corporate Social Responsibility
Nasscom Foundation's Business for Social Practice' Award
Responsibility Awards 2007

Outlook Money & NDTV Profit Best Bank Award in the Private sector
category.

The Asian Banker Excellence in Retail Best Retail Bank in India

Financial Services Awards

Asian Banker HDFC BANK Managing Director Aditya

Puri wins the
Leadership Achievement Award for India

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 LOANS

HDFC Bank offers wide variety of Loans Products: -

PERSONAL LOANS

• Borrow up to Rs 10, 00,000 for any purpose depending on your requirements

• Flexible Repayment options, ranging from 12 to 48 months

• Repay with easy EMIs

• One of the lowest interest rates.

• Hassle free loans – No guarantor/security/collateral required.

• Speedy loan approval.

• Convenience of service at your doorstep.

• Customer privileges

• If you are an HDFC Bank account holder, we have special rates for you.

• If you are an existing Auto Loan customer with a clear repayment of 12 months
or more from any of our approved financiers or us, you can get a hassle free
personal loan (without income documentation).

• If you are an existing HDFC Bank Personal Loan customer with a clear
repayment of 12 months or more, we can Top-Up your personal loan.

HOME LOANS: We offer home loans for individuals to purchase (fresh / resale) or
construct houses. Home loans can be applied for individually or jointly. HDFC finances
up to 85% maximum of the cost of the property (Agreement value + Stamp duty +
Registration charges).

Home Improvement Loan: HIL facilitates internal and external repairs and other
structural improvements like painting, waterproofing, and plumbing and electric works,
tiling and flooring, grills and aluminum windows. HDFC finances up to 85% of the cost
of renovation (100% for existing customers).

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Home Extension Loan: HEL facilitates the extension of an existing dwelling unit. All
the terms are the same as applicable to Home Loan.

Land Purchase Loan: Be it land for a dream house, or just an investment for the
future, HDFC Land Purchase Loan is a convenient loan facility to purchase land. HDFC
finances up to 70% of the cost of the land (Conditions Apply). Repayment of the loan can
be done over a maximum period of 10 years. Flexible repayment options to suit your
individual needs.

Loans cover Term Assurance Plan: HDFC Standard Life Insurance Company Ltd.
offers an insurance plan*, which is designed to ensure that life's uncertainties do not
affect your family's interests and your precious home. LCTAP provides a lump-sum
payment on the unfortunate demise of the life assured. This pure risk plan is designed in
a way that the cover decreases as you repay your home loan making it a low cost
premium insurance plan.

Automated Repayment of Home loan EMI: You can give us standing instructions
to repay your Home Loan EMIs directly from your HDFC Bank Savings Account, thus,
saving you the trouble of procuring, signing and tracking post-dated cheques. We also
offer In-house scrutiny of Property documents for your complete peace of mind.

Customer privileges: If you are an existing HDFC Bank Home Loan customer, you
can avail of other loans (such as Personal Loans, Car Loans, Two-wheeler Loans and
Loan against securities) at lower interest rates.

TWO WHEELER LOANS

• Flexible repayment options, ranging from 12 to 48 months available even at the

point of purchase.

• Repay through post-dated cheques with easy

• EMIs. Calculate your EMI.

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 • Hassle free loans - No guarantor required

• Speedy loan approval.

• Available for almost all models at attractive Interest rates.

• Free gifts from time to time on approval of your Two Wheeler Loan. (Watch this
space for more Details on the free gift promotion).

• Special Schemes to suit your needs

Fast Track: If a spot approval is what you need; this highly flexible scheme gets you a
loan of up to 70% with minimum interest rates.

Easy Loan -: This great scheme gets you a loan of up to up to 85% with minimal
documentation. All you need as a Surrogate Income proof is: - A copy of credit card and
credit card billing statement for the last 2 months

CAR LOANS

• Covers the widest range of cars and multi-utility vehicles in India.

• Avail 100% finance on your favorite car.
• Flexible repayment options, ranging from 12 to 84 months.
• Borrow up to 3 times your annual salary (for salaried professionals) and 6 times
of your annual income (for self employed professionals)*.
• Speedy processing - within 48 hours.
• Repay with easy EMIs.
• Attractive car loan plans - To Fastrack your loan, just choose the plan that is right
or you.
• Attractive Interest rates
• Hassle-free documentation.
• Customer Privileges
• If you are an HDFC Bank account holder, we have special rates for you.
• If you have had a Preferred Account or a Corporate Salary Account with HDFC
Bank for more than six months, you can get fast approvals on your loans with
minimal documentation.
• If you are an existing HDFC Bank Car Loan customer with a clear repayment of
12 months or more we can Top-Up your car loan to the extent of the original loan
value.

22
LOAN AGAINST PROPERTY

HDFC Bank brings to you Loan against Property (LAP). We can now take a loan
against your residential or commercial property, to expand your business, plan a dream
wedding, and fund your child's education and much more.

We can depend on us to meet all your business requirements even to purchase a new shop
or office for your business. Loan to purchase Commercial Property (LCP) is a specially
designed product to help you expand your business without reducing the capital from
your business. Features & Benefits:
• Loans from Rs. 2 Lacs onwards depending on your needs.
• Borrow up to 60% of market value of the property
• Flexibility to choose between an EMI based loan or an Overdraft - We also offer
to you overdraft against your self-occupied residential or commercial property
and you save money by paying interest only on the amount utilized!
• High tenure loans for ease of repayment.
• Attractive interest rates
• Simple and speedy processing.
• Specially designed products for Self Employed

CARDS

HDFC Bank offers a variety of cards to suit your different transactional needs. Our range
includes Credit Cards, Debit Cards and Prepaid cards. These cards offer you convenience
for your financial transactions like cash withdrawal, shopping and travel. These cards are
widely accepted both in India and abroad.
CREDIT CARDS
If there's something you've always wanted, don't wait any longer to get it. Just apply for
an HDFC Bank credit card. And make it happen today. You can pick one from many,
each designed with a special purpose and person in mind. Let's find one which one suits
you best:

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Silver Credit Card

Choose internationally accepted Silver Credit Card and enter a world of privileges and
savings.

Value plus Credit Card

A true value card that enables you to avail 5% cash back on all your purchases.

Health plus Credit Card

Cashless Mediclaim, discounts at participating hospitals, extra protection for your family.
You can rest assured with the Health plus Credit Card

Gold Credit Card

A card to match your lifestyle with features like International Business Travelers' Club
(IBTC) membership, special offers on air tickets and rewards redemption for air miles.

Titanium Credit Card

Limited Edition card with 24X7 concierge services, zero surcharge on fuel and
accelerated two-tier rewards programme.

DEBIT CARDS
Debit Cards that not only let withdraw cash from ATMs but also let you shop cashless
and hassle-free.

EAST SHOP INTERNATIONAL DEBIT CARD

• Daily Limits: Rs. 15000 at ATM's and Rs. 25000 at merchant establishments
• Access your bank account at over 8, 00,000 Visa/Maestro/Cirrus ATMs in India
and abroad.
• 0 % petrol surcharge at select BPCL Petrol pumps: As a Debit Card holder, no
surcharge would be levied on you at the petrol pumps.
• For purchases at 1, 10,000 outlets in India 13 million worldwide. The amount is
debited directly to your account.

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 • Use card overseas. Account is debited in Rupees regardless of the currency in
which spend.
• Zero Liability on fraudulent usage on lost or stolen cards.

Easy Shop International Gold Debit Card

• Daily Limits: Rs. 25000 at ATM's and Rs. 50000 at merchant establishments
• Cash Back: For every Rs. 100 that you will spend, you will receive Re. 1 as cash
back. This cash back is valid on all purchases made through the card, at all times
of the year!!!
• 0 % petrol surcharge at select Petrol pumps: As a Gold Card holder, no surcharge
would be levied on you at the petrol pumps.
• Zero Liability of fraudulent usage on lost and stolen cards: If it's not your
purchase you don't have to pay for it!! Your Debit Card is safer than ever!
Insurance cover: The following are included in the insurance covers:
• Death Cover by Air / Road - Sum assured Rs. 5,00,000
• Fire & Burglary for the items purchased under Debit Card (up to 6 months) – Sum
assured Rs. 50,000
• Loss of Baggage Insurance - Sum assured Rs. 20,000
• Exclusive offers and premium outlets: Special offers in association with program
partner Visa only for our Easy shop Gold Debit Card customers.

Easy Shop Woman's Advantage Debit Card

• Cash Back of Re. 1 for every Rs. 200 spent: For every Rs. 200 that you will spend
you will receive Re. 1 as cash back .This cash back is valid on all purchases made
through the card, at all times of the year!!!
• Specialized Services*: A unique service number will be available for Woman's
• Debit Card customers to avail information / booking for the services listed ahead.
Just call, quote your card number and use any of the services. These services are
subject to availability and rendered on a best effort basis.
• Entertainment assistance
• Dining Referral and Reservation Assistance

25
• Flower & Gift Delivery
• Movie Tickets
• Home assistance:
• Financial Planning & Advisory
• Services Assistance
• Electrical & Electronic Gadget Repair
• Assistance
• Pest Control Assistance
• Home Cleaning Assistance
• Wellness:
• Medical Check up Packages
• Nursing Care Arrangement
• 50% discount on locker fee: You will be entitled to a 50% discount on locker fee
for the 1st year. This waiver would be applicable for only one locker per card
Special discount on purchase of Gold Bars: Preferential pricing will be given to
you on purchase of Woman's Advantage Bars. In order to avail of the special
discount, pleas show your Woman's Advantage Debit Card at the branch.
• Insurance cover: You will be entitled to Personal Accident insurance cover of 2
lacs.
• Zero Liability: You will not have any liability to any fraudulent Point of Sale
transactions on the debit card, which take place up to 30 days prior to reporting
the card loss.
• Free Bill Pay: You will not be charged for Bill Pay Service, chargeable at Rs.100
p.a.
• Daily Limits: Rs. 15,000 at ATM's and Rs. 25,000 at merchant establish

26
 BOARD OF DIRECTORS

1) Mr. Jagdish kapoor, (Chairman)

Education

Master of Commerce
• Certified Associate of the Indian Institute of Bankers
Career Highlights

• Prior to joining the bank, Mr. Kapoor was Deputy Governor of the RBI.
• Mr. Kapoor has been re-appointed as a part-time Chairman of the Bank for a
period of three years with effect from July 6, 2004.
• Mr. Kapoor does not hold any equity shares in the Bank as on March 31, 2006.
2) Mr. Aditya Puri, (Managing Director)

Education

• Bachelor's degree in Commerce from Punjab University

• Associate member of the Institute of Chartered Accountants of India

Career Highlights
• Mr. Puri has been the Managing Director of the Bank since September 1994. He
has about 32 years of banking experience in India and abroad
• Mr. Puri holds 1, 87,953 equity shares in the Bank as on March 31, 2006.
Other DIRECTORS of HDFC bank are
• Mr. Keki Mistry
• Dr. Venkat Rao Gadwal
• Dr. Vineet Jain
• Mrs. Renu Karnad
• Mr. Arvind Pande
• Mr. Ranjan Kapoor (Resigned w.e.f. 29th March, 2006)
• Mr. Bobby Parikh (w.e.f. Jan. 9, 2004)
• Mr. Ashim Samanta
VICE PRESIDENT AND COMPANY SECRETARY

27
 • Mr. Sanjany
INTRODUCTION OF THE TOPIC

MEANING OF FINANCIAL STATEMENTS

Financial statements refer to such statements which contains financial information

about an enterprise. They report profitability and the financial position of the business at
the end of accounting period. The team financial statement includes at least two
statements which the accountant prepares at the end of an accounting period. The two
statements are

1. The Balance Sheet

2. Profit And Loss Account

They provide some extremely useful information to the extent that balance Sheet mirrors
the financial position on a particular date in terms of the structure of assets, liabilities and
owners equity, and so on and the Profit And Loss account shows the results of operations
during a certain period of time in terms of the revenues obtained and the cost incurred
during the year. Thus the financial statement provides a summarized view of financial
positions and operations of a firm.

MEANING OF FINANCIAL ANALYSIS

The first task of financial analysis is to select the information relevant to the
decision under consideration to the total information contained in the financial statement.
The second step is to arrange the information in a way to highlight significant
relationship. The final step is interpretation and drawing of inference and conclusions.
Financial statement is the process of selection, relation and evaluation.

Features of Financial Analysis

• To present a complex data contained in the financial statement in simple and

understandable form.
• To classify the items contained in the financial statement in convenient and
rational groups.
• To make comparison between various groups to draw various conclusions.
28
Purpose of Analysis of financial statements

• To know the earning capacity or profitability.

• To know the solvency.
• To know the financial strengths.
• To know the capability of payment of interest & dividends.
• To make comparative study with other firms.
• To know the trend of business.
• To know the efficiency of mgt.
• To provide useful information to mgt

Procedure of Financial Statement Analysis

The following procedure is adopted for the analysis and interpretation of financial
statements
• The analyst should acquaint himself with principles and postulated of accounting.
He should know the plans and policies of the management so that he may be able
to find out whether these plans are properly executed or not.
• The extent of analysis should be determined so that the sphere of work may be
decided. If the aim is find out. Earning capacity of the enterprise then analysis of
income statement will be undertaken. On the other hand, if financial position is to
be studied then balance sheet analysis will be necessary.
• The financial data be given in statement should be recognized and rearranged. It
will involve the grouping similar data under same heads. Breaking down of
individual components of statement according to nature. The data is reduced to a
standard form.
• A relationship is established among financial statements with the help of tools &
techniques of analysis such as ratios, trends, common size, fund flow etc.
• The information is interpreted in a simple and understandable way. The
significance and utility of financial data is explained for help in decision making.

29
 • The conclusions drawn from interpretation are presented to the management in
the form of report
TYPES OF FINANCIAL ANALYSIS

• External Analysis: Outsiders, who don’t have access to the detailed internal
accounting records of the business firm, do this analysis. These outsiders’ parties
are potential investor, creditors, government agencies, credit agencies & general
public.
• Internal Analysis: The analysis conducted by person who has access to the
internal accounting records of a business firm is known as internal analysis.
• Horizontal Analysis: Horizontal analysis refers to the comparison of financial
data of a company for several years. The figures of this type of analysis are
presented horizontally over a no. of columns. This type of analysis is also called
“Dynamic Analysis”
• Vertical Analysis: This analysis refers to the study of relationship of the various
items in the financial statements, of one accounting period. It is also known as
“Static analysis”.

FUNCTIONS OF FINANCE DEPARTMENT

The functions of finance department include the following areas:

1) Effective management of financial resources of the company.

2) Coordinates & Monitors the functions of accounts activities in the units/marketing
offers.
3) Establish and maintain systems of financial control, internal check and render advice
on financial & accounting matters including examination of feasibility report and detailed
project reports.
4) Establish and maintain proper system of budgetary control, cost control and
management reporting.
5) Maintain financial accounts and compile annual periodical accounts in accordance
with the companies Act, 1956, ensuring the audit of accounts as per law/Govt. directions.
6) Looks after overall funds management and arranges funds required for the capital
schemes and working capital form govt., banks and financial institutions etc.
30
7) Timely payment of all taxes, levies & duties under the Law, Maintenance of records
and filing returns statements connected with such taxes, levies and duties with the
appropriate authorities, as per law.
All the power involving financial implications are to e exercised in prior consultation
with head of concerned finance department.
In the event of any difference of opinion between the General Manger and the Head of
Finance Dept., the matter shall be referred to Managing Director who after consulting
Director (Finance) shall issue appropriate instruction after following the prescribed
procedures.

METHODS OF FINANCIAL ANALYSIS

A number of methods can be used for the purpose of analysis of financial Statements.
These are also termed as techniques or tools of financial Analysis. Out of these, and
enterprise can choose those techniques which are suitable to its requirements. The
principal techniques of financial analysis are

1. Comparative Financial Statements.

2. Common – size Statements
3. Trend Analysis
4. Funds Flow statements
5. Cash Flow Statement

Comparative Financial Statements

When financial statements figures for two or mote years are placed side-side to
facilitate comparison, these are called ‘comparative Financial Statements’.

Such statements not only show the absolute figures of various years but also
provide for columns to indicate to increase ort decrease in these figures from one year to
another. In addition, these statements may also show the change from one year to another
on percentage form. Such cooperative statements are of great value in forming the
opinion regarding the progress of the enterprise.

31
PURPOSE OR UTILITY OR IMPORTANCE OF
COMPARATIVE STATEMENTS
1. To make the Data simpler and more understandable
2. To indicate the Trend
3. To indicate the strong points weak points of the concern
4. To compare the firms performance with the average performance of the industry
5. To help in forecasting.

COMPARATIVE BALANCE SHEET

The Comparative Balance Sheet as on two or more different dates can be prepared to
show the increase or decrease in various assets, liabilities and capital. Such a comparative
Balance Sheet is very useful in studying the trends in a business enterprise.

COMPARATIVE PROFIT & LOSS ACCOUNT

Profit and loss account shows the net profit or net loss of a particular year whereas
comparative profit and loss account for a number of years provides the following
information
1. Rate of increase or decrease in gross profit.
2. Rate of increase or decrease in operating profit.
3. Rate of increase or decrease in cost of goods sales

4. Rate of increase or decrease in net profits.

32
 JUSTIFICATION OF THE STUDY

Financial Statements are prepared primarily for decision-making. They play a

dominant role in setting the framework of managerial decisions. But the information in
the financial statement is not an end in itself as no meaningful can be drawn from these
statements alone.
The information provided in the financial statement is of immense use in making
decisions through analysis and interpretation of financial statements. The financial
analysis is the process of identifying the financial strength and weakness of the firm by
properly establishing relationship between the items of the balance sheet and P&L A/C.
There are various methods or techniques used in analyzing financial statement
such as comparative statement, trend analysis, common size statement, schedule of
changes in working capital, fund flow and cash flow analysis, cost volume profit analysis
and “RATIO ANALYSIS”.
Ratio analysis is one of the most powerful tools of financial analysis. It is a
process of establishing and interpreting various ratios that the financial statements can be
analyzed more clearly and decisions made from such analysis.
Just like a DOCTOR examines his patient by recording his body temperature,
blood pressure etc before making his conclusion regarding the illness and before giving
his treatment, a financial analyst analysis the financial statement with various tools of
analysis before commenting upon the financial health or weaknesses of an enterprise.
The purpose of financial analysis is to diagnose the information contained in
financial statements so as to judge the profitability and financial soundness of the firm.
Financial statement analysis is an attempt to determine the significance and meaning of
financial statement data so that forecast may be made of the future earning, ability to pay
interest and debt maturities and profitability of a sound dividend policy.
A financial ratio is the relationship between two accounting figures expressed
mathematically ratio provide clues to the financial position of the concern. These are the
pointers and indicators of financial strength, soundness, position or weakness of an
enterprise. One can draw conclusions about the exact financial position of a concern with
the help of ratio

33
34
 RESEARCH METHODOLOGY

Meaning of Research
Research is defined as “a scientific and systematic search for pertinent information
on a specific topic”. Research is an art of scientific investigation. Research is a
systematized effort to gain now knowledge. It is a careful investigation or inquiry
especially through search for new facts in any branch of knowledge.

Research is an academic activity and this term should be used in a technical sense.
Research comprises defining and redefining problems, formulating hypothesis or
suggested solutions. Making deductions and reaching conclusions to determine whether
they if the formulating hypothesis. Research is thus, an original contribution to the
existing stock of knowledge making for its advancement.

The search for knowledge through objective and systematic method of finding solutions
to a problem is research. Research is defined as a human activity based on intellectual
application in the investigation of matter. The primary aim for applied research is
discovering, interpreting and the development of methods and systems for the
advancement of human knowledge on a wide variety of scientific matters of our world
and the universe.

The Methodology of the study is the entire set of procedures that have been conducted to
obtain meaningful conclusion for the project. It is the series of steps performed in a
rational order through which the results are obtained.

The procedure adopted for conducting the research requires a lot of attention as it has
direct bearing on accuracy, reliability and adequacy of results obtained. It is due to this
reason that research methodology, which we used at the time of conducting the research,
needs to be elaborated upon.

Research Methodology is a way to systematically study and solve the research problems.
If a researcher wants to claim his study as a good study, he must clearly state the
methodology adapted in conducting the research the research so that it way be judged by
the reader whether the methodology of work done is sound or not.

35
The Research Methodology here includes

• Meaning of Research.

• Research Problem.

• Research Design.

• Sampling Design.

• Data Collection method

PROBLEM STATEMENT
The first step while conducting research is careful definition of Research Problem. “To
ERR IS THE HUMAN” is a proverb which indicates that no one is perfect in this world.
Every researcher has to face many problems which conducting any research that’s why
problem statement is defined to know which type of problems a researcher has to face
while conducting any study. It is said that,

“Problem well defined is problem half solved.”

Basically, a problem statement refers to some difficulty, which researcher Experiences in

the context of either a theoretical or practical situation and wants to obtain the solution
for the same. The problem statement here is

“To make a Financial Analysis of Financial statements of HDFC BANK JIND”

Any successful business owner or investor is constantly evaluating the performance

of the companies they are involved with, comparing historical figures with its industry
competitors, and even with successful businesses from other industries. To complete a
thorough examination of any company's effectiveness, however, more needs to be looked
at than the easily attainable numbers like sales, profits, and total assets. Luckily, there
are many well-tested ratios out there that make the task a bit less daunting. Financial
ratio analysis helps identify and quantify a company's strengths and weaknesses, evaluate
its financial position, and shows potential risks. As with any other form of analysis,

36
financial ratios aren't definitive and their results shouldn't be viewed as the only
possibilities
The Ratio Analysis technique is the process of identifying the financial strength and
weakness of the firm by properly establishing relationship between the items of the
balance-sheet and the profit and loss account because the figures recorded in the financial
statements are absolutely incapable of revealing the soundness or otherwise of a
Company s financial position or performance. Thus the technique of Ratio Analysis has
been used which is supposed to be powerful tool for financial statements

OBJECTIVE OF THE STUDY

Objectives are the ends that states specifically how goal be achieved. Every study
must have an objective for which all the efforts have been done. Without objective no
research can be conducted and no result can be obtained. On the basis of objective all the
research process is followed. Objectives are the main aspect of every study. The objective
of the study gives direction to go through the research problem. It guides the researcher
and keeps him on track.
 The basic objective of studying the ratios of the Bank is to know the financial
position of the Bank.
 To draw the correct picture of the financial operations of the Bank in terms of
liquidity, solvency, turnover, profitability etc..
 To make vertical comparison of financial statements.
 To find out the reasons for unsatisfactory results.

I have two objectives regarding my research project. These are shown below:-
1. Primary objective
2. Secondary objective

1. Primary objective:-
• To study the software used in HDFC Bank
• To analyze the financial statements of the corporation to its true financial position
by the use of ratios

37
2. Secondary objective:-

• To find out the shortcomings in HDFC Bank

• To see whether HDFC is going well or not in different areas

• To inform about the financial condition of HDFC

• To inform the investor, enabling them to take the investment decision

DATA BASE
The process of data collection begins after a research problem has been defined and
research design ahs been chalked out. There are two types of data

PRIMARY DATA: It is first hand data, which is collected by researcher itself. Primary
data is collected by various approaches so as to get a precise, accurate, realistic and
relevant data. The main tool in gathering primary data was investigation and observation.
It was achieved by a direct approach and observation from the officials of the company.
Primary data are collected and gathered for the first time. Primary data are
Sought for their proximity to the truth and controls over error. Advantages of primary
data are
• Researchers can collect precisely the information they want.
• They usually can specify the operational definitions used and can eliminate, or
• At least monitor and record the extraneous influences on the data as they are
Gathered.

METHODS OF PRIMARY DATA

• OBSERVATION METHOD
• INTERVIEW METHODS
• QUESTIONAIRE METHOD
• SCHEDULE METHOD

38
SECONDARY DATA: It is the data which is already collected by someone else.
Researcher has to analyze the data and interprets the results. It has always been important
for the completion of any report.

It provides reliable, suitable, adequate and specific knowledge. I took data comprise
annual reports and post records. Bank has provided me annual reports from 2005-06 to
2008-09 by help of which, I prepared my report.

The valuable cooperation extended by staff members contributed a lot to fulfill the
requirements in the collection of data in order to complete the project. Various statistical
tools are applied depending on the research problem. In this study ratio analysis,
comparative financial statements analysis, common size statements and Trend Analysis
has been used for analyzing and interpreting the result.

Someone else collects secondary data. So, it becomes secondary information for the
research. Secondary data have had least one level of interpretation inserted between the
event and its recording. Reasons for using the secondary data are listed below

• they fill a need for specific reference or citation on some point

• Secondary data are an integral part of a larger research study

• Secondary data may be used as the sole basis for a research study

Collection of Data

Both the primary and secondary data has been collected from the market and the Bank
respectively. The secondary data are provided through the annual report; website etc. of
the Bank and the primary data was collected through the medium of face-to-face
intersection/interviews with the business person in the market.

Data once collected needed to be organization for further processing. Data collected by
me was carefully gone through then the relevant and useful matter was assorted and
properly organized. The data collected is no use unless and unstill it is given in
presentable form. Thus after proper organization the data is given in a presentable form

39
Analytical Tools

To analyzing the financial statement there has many type of analytical tools is used.
Some of these which I used are following:
 Ratio Analysis
 Trend Analysis
 Indices
 Comparative Statement Analysis

Research Design
A research designs is the arrangement of conditions for collection and analysis data in a
manner that aims to combine relevance to the research purpose with economy in
procedure. Research Design is the conceptual structure with in which research in
conducted. It constitutes the blueprint for the collection measurement and analysis of
data.
Research Design includes and outline of what the researcher will do form writing the
hypothesis and it operational implication to the final analysis of data. A research design is
a framework for the study and is used as guide in collection and analyzing the data. It is a
strategy specifying which approach will be used for gathering and analyzing the data. It
also includes the time and cost budget since most studies are done under these two cost
budget since most studies are done under theses tow constraints.
The design is such studies must be rigid and not flexible and most focus attention on the
following
• What is the study about?
• Why is the study being made
• Where will the study be carried out?
• Where can be required data be found?
• What period of time will the study include?
• What will be sample design?
• What techniques of data collection will be used?
• How will the data be analyzed?

40
Types of Research Design

Exploratory Research Design

This research design is preferred when researcher has a vague idea about the problem the
researcher has to explore the subject.

Experimental Research Design

The research design is used to provide a strong basis for the existence of casual
relationship between two or more variables.

Descriptive Research Design

It seeks to determine the answers to who, what, where, when and how questions. It is
based on some previous understanding of the matter.

Diagnostic Research Design

It determines the frequency with which something occurs or its association with
something else.

Research Design Used in this Project

Research Design chosen for this study is Descriptive Research Design. Descriptive study
is based on some previous understanding of the topic. Research has got a very specific
objective and clear cut data requirements.

41
42
 RATIO ANALYSIS

MEANING OF RATIO
Absolute figures expressed in financial statements by themselves are
meaningfulness. These figures often do not convey much meaning unless expressed in
relation to other figures. Thus, it can be say that the relationship between two figures,
expressed in arithmetical terms is called a ratio.
“According to R.N. Anthony.”
A ration is simply one number expressed in terms of another. It is found by dividing one
number into the other. According to Accountant’s Handbook by Wixom, Kell and
Bedford, “a ratio is an expression of the quantitative relationship between the numbers
.
Ratio Analysis
The term Ratio refers to the numerical and quantitative relationship between two
items or variables. This relationship can be exposed as Percentages Fractions Proportion
of numbers Ratio analysis is defined as the systematic use of the ratio to interpret the
financial statements. So that the strengths and weaknesses of a firm, as well as its
historical performance and current financial condition can be determined. Ratio reflects a
quantitative relationship helps to form a quantitative statement a single figure by itself
has no meaning but when expressed in terms of a related figure, it yields significant
inferences. For instance, the face that the net profits of a firm amount to say, Rs. 10 lakhs
throws no light on its adequacy or otherwise. The net profit figure has to be considered
in relation to other variables. If, therefore, net profits are shown in terms of their
relationship with items such as sales, assets, capital employed, equity capital and so on,
meaningful conclusions can be drawn regarding their adequacy.

Interpretation of Ratios
The interpretation of ratios is an important factor. Though calculation of ratios is
also important but it is only a clerical task whereas interpretation needs skill, intelligence
and foresightedness. The impacts of factors such as price level changes, change in

43
accounting policies, window dressing etc should be kept in mind when attempting to
interpret ratios. The interpretation of ratios can be made in following ways:

1. Intra firm comparison: Here the ratios of one organization may be compared with the
ratios of the same organization for the various years either the previous years or the
future years.
2. Inter firm comparison: The ratios of one organization may be compared with the
ratios of the other organization in the same industry and such comparison will be
meaningful as the various organizations, in the same industry may be facing similar kinds
of financial problems.

SIGNIFICANCE OF RATIO ANALYSIS

• It is helpful in decision making.
• It is helpful in simplifying financial statements.
• It is helpful in controlling costs.
• It is helpful in locating weak spots.
• It is helpful in measuring efficiency

CLASSIFICATION OF RATIOS

The ratios may be classified under various ways, which may use various criterions
to do the same. However for the convenience purpose, the ratios are classified under
following groups

1. Liquidity group
Liquidity group
2. Turnover group Liquidity group

3. Profitability group Miscellaneous

Miscellaneous Turnover group
group Turnover group
group
4. Solvency group and Ratio Analysis
Ratio Analysis

5. Miscellaneous group
Solvency group Profitability
Solvency group Profitability
and group
and group

44
 LIQUIDITY GROUP

The ratios computed under this group indicate the short-term position of the
organization and also indicate the efficiency with which the working capital is being
used. Commercial banks and short-term creditors may be basically interested in the ratios
falling under this group. Two most important ratios may be calculated under this group.

1) Current Ratio: -

Current Assets
It is calculate as, Current Liability

Current ratio indicates the backing available to current liabilities in the form of
current assets. In other words, higher current ratio indicates that there are sufficient assets
available with the organization, which can be converted in the form of cash. A current
ratio of 2:1 is supposed to be standard and ideal.

2) Liquid Ratio or Acid Test Ratio: -

Liquid Assets
It is calculated as, Liquid Liability

Here liquid assets include all assets except inventory and p/p expenses and liquid
liabilities except overdraft or cash credit or o/s expenses Liquid ratio indicates the
backing available to liquid liabilities in the form of liquid assets. The term liquid assets
indicate the assets, which can be converted in the form of cash without any reduction in
the value. Almost immediately whereas the term liquid liabilities which are required to be
paid almost immediately. In other words, a higher liquid ratio indicates that there are
sufficient assets available with the organization, which can be converted in the form of
cash almost immediately to pay off those liabilities, which are to be paid off almost

45
immediately. As such higher the liquid ratio better will be the situation. A liquid ratio of
1:1 is supposed to be standard and ideal.

TURNOVER GROUP

Ratios computed under this group indicate the efficiency of the organization to use
the various kinds of assets by converting them in the form of sales. Under this group the
following classification of ratios are made.

1) Fixed Assets Turnover Ratio:

Net Sales
It is calculated as,
Fixed Assets
A high fixed assets turnover ratio indicates the capability of the organization to
achieve maximum sales with the minimum investment in fixed assets. It indicates that the
fixed assets are turned over in the form of sales more number of times.

2) Current Assets Turnover Ratio:

Net Sales
It is calculated as,
Current Assets

A high current assets turnover ratio indicates the capability of the organization to
achieve maximum sales with the maximum investment in current assets. It indicates that
the current assets are turned over in the form of sales more number of times.

3) Working Capital Turnover Ratio:

Net Sales
It is calculated as, Working Capital

A high working capital turnover ratio indicates the capability of the organization to
achieve maximum sales with the minimum investment in the working capital. It indicates
that working capital is turned over in the form of sales more number of times.

4) Inventory or Stock Turnover Ratio:

Cost of Goods Sold

It is calculated as,
Avg. Inventry

46
 A high inventory turnover ratio indicates that maximum sales turnover is achieved
with the minimum investment in inventory. As such as a general rule, high inventory
turnover ratio is desirable.

5) Debtors Turnover Ratio:

It is calculated as,
Net Credit Sales
Closing Sundry Debtors

This ratio indicates the speed at which the sundry debtors are converted in the
form of cash. However the intention is not correctly achieved by making the calculation
in this way. As such this ratio is normally supported by the calculation period, which is
calculated as below.

a) Calculation of Daily Sales:

It is calculated as,
Net Credit Sales
No. of Working Days

b) Calculation of Collection Period:

It is calculated as,
Closing Sundry Debtors
Daily Sales

The average collection period as computed above should be compared with the
normal credit period extended to the customers. If the average collection period is more
than the normal credit period allowed to the customers, it may indicate over investment in
debtors which may be the result of over extension of credit period, liberalization of credit
term, ineffective collection procedure and so on.

Capital Turnover Ratio:

It is calculated as,
Net Sales
Capital Employed

47
 This ratio indicates the efficiency of the organization with which the capital
employed is being utilized. A high capital turnover ratio indicates the capability of the
organization to achieve maximum sales with minimum amount of capital employed. As
such higher the capital turnover better will be the situation.

SOLVENCY GROUP

Ratios computed under this group indicate the long-term financial prospects of the
company. The shareholders debenture holders and other lenders of long-term finance/
term loan may be basically under this group. Following ratios may be computed under
this group.

1) Debt-equity Ratio:
External Liabilitie s
It is calculated as, Shareholde r' s Fund

Debt-equity ratio indicates the state of shareholders or owners in the organization vis-
à-vis that of the creditors. It indicates the cushion available to the creditors on liquidation
of the organization. A high debt-equity ratio may indicate that financial status of the
creditors is more than that of the owners. A very high debt-equity ratio may make the
proportion of investment in the organization a risky one. On the other hand a very low
debt equity rate may mean that the borrowing capacity of the organization is being
underutilized.

2) Proprietary Ratio:
Total Assets
It is calculated as, Owners Fund

This ratio indicates the extent to which the owner s funds are sunk in different kinds
of assets. If the owner s fund exceeds fixed assets, it indicates that a part owners fund
invested in the current assets also and if owners fund are less than fixed assets it indicates
that the creditors finance a part of fixed assets either by long term or short term.
3) Interest Coverage Ratio: -
PBIT
It is calculated as, Interest Charges

48
 This ratio indicates protection available to the lenders of long-term capital in the
form of funds available to pay the interest charges i.e. profits. Normally a high ratio will
desirable but too high a ratio may indicate underutilization of the borrowing capacity of
the organization whereas too low a ratio may indicate excessive long-term borrowings or
inefficient operation.

PROFITABILITY GROUP

1) Gross Profit Ratio:

Gross Profit
It is calculated as, ×100
Net Sales
The gross profit ratio indicates the relation between production cost and sales and
efficiency with which the goods are produced or purchased. A high gross profit ratio
may indicate that the organization is able to produce or purchase at a relatively lower
cost.

2) Net Profit Ratio:

Net Profit
It is calculated as, ×100
Net Sales
The net profit ratio indicates that portion of sales available to the owners after the
consideration of all types of expenses and costs either operating or non-operating or
normal or abnormal. A high net profit ratio indicates higher profitability of the
business.

3) Operating Ratio:
It is calculated as,
COGS + Oprt Exp.
×100
Net Sales

This ratio indicates the percentage of net sales, which is absorbed by the operating
cost. A high operating ratio indicates that only a small margin of sales is available to
meet the expenses in the form of interest, dividend and operating expenses. As such low
operating ratio will always be desirable.

OVERALL PROFITABILITY GROUP

49
1) Return on Assets:
Net Profit
It is calculated as, ×100
Total Assets

Return on assets measures the profitability of the investment in a firm. As such higher
return on assets will always be preferred. However Return on assets does not indicate the
profitability of various sources of funds, which finance total assets.
2) Return on Capital Employed:
It is calculated as,
Net Profit + Int. on Long Term Loans
×100
Capital Employed

Return on capital employed measure4s the profitability of the capital employed in the
business. A high return on capital employed indicates a better and profitable use of long-
term funds of owners and creditors. As such a high return on capital employed is
preferred.

3) Return on Shareholders’ Funds:

Net Profit
It is calculated as, ×100
Total Shareholde rs Funds

This ratio indicates the profitability of a firm in relation to the fund supplied by
the shareholders

MISCELLANEOUS GROUP

1) Capital Gearing Ratio:

Fixed Incone Bearing Capital
It is calculated as, Equuity Capital

A high capital-gearing ratio indicates that in the capital structure, fixed income
bearing securities are more in comparison to the equity capital in that case the Company
is said to be highly geared. On the other hand, if fixed income-bearing securities are less
as compared to equity capital the company is said to be lowly geared.

2) Earnings Per Share: -

Net profit after tax & Dividend
It is calculated as, No. of Equity Shares o/s

50
 It is widely used ratio to measure the profit available to the equity shareholders on a
per share basis. As such increasing Earning per Share may indicate the increasing trend
of current profits per equity share.

3) Dividend Payout Ratio: -

Dividend per Share
It is calculated as, ×100
Earning per Share

It measures the relationship between the earnings belonging to the equity

shareholders and the amount finally paid to them by way of dividend. It indicates the
policy of management to pay cash dividend.

ADVANTAGES OF RATIOS

 Ratios simplify the comprehension of financial statements. They tell the whole
story as a heap of financial data is condensed in them. They indicate the changes
in the financial condition of the business.
 They act as an index of the efficiency of enterprise. As such they serve as an
instrument of management control. It is an instrument for diagnosis of the
financial health of an enterprise. The efficiency of the various individual units
similarly situated can be judged through inter-firm comparisons.
 The ratio analysis can be if invaluable aid to management in the discharge of its
basic functions of forecasting, planning, co-ordination, communication and
control. A study of the trend of strategic ratio may help the management in this
respect. Past ratios indicate trends in cost, sales, profit and other relevant facts.
 The ratio analysis provides data for inter-firm comparison or intra-firm
comparison. Comparison cannot be made with absolute figures. Net profit of one
firm cannot be compared with the net profit of the other firm. But the percentages
of net profits can be compared to evaluate the performance. Similarly
performance and efficiency of different departments in the same firm can be
compared with the help of ratios.
 Investment decisions can at times be based on the conditions revealed by certain
ratios.
51
  They make it possible to estimate the other figure when one figure is known.

LIMITITIONS OF RATIO ANALYSIS

Though ratio analysis technique has got number of advantages, it attracts equal number of
disadvantages too. Some of important advantages are as follows:

 Different accounting policies may be followed by the constituent organization in

the industry.
 The ratios of the other organization May not be readily available
 The constituent organization in the same industry may vary from each other in
terms of age, location, extent of automation, quality of management and so on
 The technique of ratio analysis may prove to be inadequate in some situation if
there is difference of opinions regarding the interpretation of certain items while
computing certain ratios.
 As the ratios are computed on the basis of financial statements, the basic
limitation, which is applicable to the financial statements, is equally applicable in
case of the technique of ratio analysis also.

52
 FUNCTIONAL CLASSIFICATION IN VIEW OF
FINANCIAL
MANAGEMENT OR CLASSIFICATION
ACCORDING TO TESTS

Liquidity Ratios Long-term Activity Profitability Ratios

Solvency and Ratios
Leverage Ratio
(A)1. Current Ration Financial Operating 1) Inventory (A)In Relation to Sales.
2. Liquid Ration Composite Turnover 1. Gross Profit Ratio.
(Acid) Test or Ratio. 2. Operating Ratio.
Quick Ratio. 1. Debt. Equity 2) Debtors 3. Operating Profit
3. Absolute liquid or Ratio Turnover Ratio.
Cash Ratio. 2. Debt to Total 3) Fixed Assets 4. Net Profit Ratio.
4. Internal Measure Capital Ratio Turnover 5. Expenses Ratio
(b) 1. Debtors 3. Interest Ratio (B)In relation to
Turnover Ratio Coverage 4) Total Asset investments
2. Creditors Turnover 4. Cash Flow/ Debt Turnover 1. Return on
Ratio 5. Capital Gearing Ratio Investments.
3. Inventory 5) Working 2. Return on capital.
Turnover Capital 3. Return on Equity
Ratio Turnover Capital.
Ratio. 4. Return on total
6) Payables Resources
Turnover Ratio 5. Earning per share.
7) Capital 6. Price Earning Ratio.
Employed
Turnover

RATIO ANALYSIS- Practical portion

1. Current Ratio
= Current assets/ Current liabilities

53
Year 2007 2008 2009
Current Ratio 1.10 1.07 1.08

Current Ratio

1.11 1.1
1.1
1.09 1.08
CR

1.08 1.07 Ratio

1.07
1.06
1.05
2007 2008 2009
Year

Interpretation
If the C.R. is less than 2: 1, it indicates lack of liquidity and shortage of working
capital. But a much higher ratio, even though it is beneficial to the short-term creditors, is
not necessarily good for the company. A much higher ratio than 2 : 1 may indicate the
poor investment policies of the management. So liquidity of Bank is satisfactory

SUGGESTIONS
• Company should try to maintain the ratio at the standard level.
• Company should try to pay its liabilities in time, which will help it to maintain a
good financial position

2. QUICK RATIO
= Liquid assets/ Current liabilities

Year 2007 2008 2009

Quick Ratio 1.44:1 1.20:1 0.82

54
 QUICKRATIO

1.6
1.4
1.2
1
0.8 QUICKRATIO
0.6
0.4
0.2
0
2007-08 2008-09 2009-2010

INTERPRETATION
An acid test or quick ratio of 1:1 is considered satisfactory. As above diagram and
calculation shows that quick ratio of HMT is more than 1:1. So it is satisfactory. But it is
constantly decreasing. So it should be considered that it shouldn’t declines.

SUGGESTIONS
• Bank should maintain the standard. It should not be more than that nor be less
than standard ratio.
• Bank should try to make good investments in short term assets.

3. Interest coverage/debt service ratio

= Net profit (before interest and taxes)/ Fixed interest Charge

Year 2007 2008 2009

Interest coverage 2 2.09 2.38
ratio

55
 ICR

2.5 2.38
2.4
2.3
2.2 2.09
ICR

Ratio
2.1 2
2
1.9
1.8
2007 2008 2009
Year

Interpretation
Since this Ratio indicates the interest paying capability of firm and ideal Ratio is 6
to 7 times. So interest paying capacity of the firm is moderate.

4. Return on gross capital employed

= (Net profit / Gross capital employed) * 100

Gross capital employed= fixed assets + current assets

year 2007 2008 2009

Return on gross 26 28 24
capital employed

Ratio
30 28
28 26
Ratio

26 24 Ratio
24
22
2007 2008 2009
Year

56
Interpretation

Since profit is the overall objective of a business enterprise, this ratio is a

barometer of the overall performance of the enterprise. It measures how efficiently the
capital employed in the business is being used.

5. Return on shareholder’s Funds

= (Net profit / total Shareholders funds) *100

Year 2007 2008 2009

Return on 16.43 17.74 13.83
shareholders

Ratio

20 17.74
16.43
13.83
15
Ratio

10 Ratio

0
2007 2008 2009
Year

Interpretation

This Ratio indicates what amount of return has been given to the Share holders of
the firm which help in building the good will firm.

57
6. Net profit ratio

= Net Profit / Net sales *100

year 2007 2008 2009

Net profit ratio 20.58 17 15.72

NP Ratio

25
20.58
20 17
15.72
NP Ratio

15
Ratio
10

0
2007 2008 2009
Year

Interpretation
This Ratio measures the rate of net profit earned on sales. It helps in determining
the overall efficiency of the business operations. An increase in the ratio over the
previous year shows improvement in the overall efficiency and profitability of the
business.

7. Gross profit ratio

= (Gross profit / net sales) * 100

year 2007 2008 2009

Gross profit ratio 40.98 38.57 37.22

58
 GP Ratio

GP Ratio 42 40.98
40 38.57
37.22
38 Ratio
36
34
2007 2008 2009
Year

Ideal Ratio: Higher percentage, better it is

Interpretation

This ratio is compared with earlier years and there is a decline in gross profit ratio
from such comparison. It may be concluded that price of material purchased ,wages and
other direct charges may have gone up but the selling price may not have gone up in
proportion to increase in costs. This ratio differs from the ratio of gross profits to net
sales in as much as it is calculated after adding non-operating incomes, like interest,
dividends on investments etc to operating profits and deducting non-operating expenses
such as loss on sale of old assets, provisions for legal damage etc. from such profits. The
ratio is widely used as a measure of over-all profitability of company.

The company has constant rate of its net profits in the year 2006-07 and the 2007-08 but
it’s very much down in FY 2008-09 due to increase in total expenses of the company.
Sales volume is also decrease due to recession in FY 2008-09. But company has very
good recovery and increase the net profit by 124% as compared to last FY. Sales is also
increase by 40% for the last year

8. Operating ratio

59
 =cost of goods sold + Operating Expenses/net sales *100

Where
Cost of goods sold= opening stock + purchase + direct expenses- closing stock

Operating Expenses= Office and administrative expenses + selling and

distribution expenses +discount + bad debts+ interest on short term loans.

year 2007 2008 2009

Operating expenses 39.98 36.41 37.03
ratio

OR

41 39.98
40
39
38 37.03
OR

36.41 Ratio
37
36
35
34
2007 2008 2009
Year

Interpretation
This Ratio indicates the how much expenses has been spent on selling and
administration use of organization. Lower the ratio, better it is because it will leave
higher margin of profits on sales.

9. DIVIDEND PER SHARE (DPS)

= Dividend paid to equity shareholders / No. of equity Shares

Year 2007 2008 2009

Dividend per share 5.5 7 8.5

60
 DPS

10 8.8
8 7
5.5
DPS

6
Ratio
4
2
0
2007 2008 2009
Year

Interpretation
This Ratio indicates how much profit has been given in hand to the equity share
holders. This represents higher the ratio more is the good will of the firm.
Significance
DPS shows how much is paid as dividend to the shareholders on each share held.
In case of our company, it has not yet declared dividend because management believes
that there is a great potential of growth in telecom sector which is also evident by data
shows in industry structure, that’s why all profit is retained. In FYs 2007 and 2008
company gained equal dividend per share, but last year it was goes to down due to lower
profit earned by company. But in last FY again company pick up the point of Rs.15 per
share. So it shows company has good recovery

10. Price-earning (P.E) Ratio

=Market price per share / Earning per share

Year 2007 2008 2009

PE Ratio 27.74 26.29 28.8

61
 PE Ratio

28.8
29 27.74
27 26.29

25
PE ratio

23 Ratio
21
19
17
15
2007 2008 2009
Year

Interpretation
This ratio shows how much is to be invested in the market in this company’s
shares to get each rupee of earning on its shares. The ratio is used to measure whether the
market price of a share is high or low.
It simply shows the profitability of the firm on a per share basis, it doesn’t reflect
how much is paid as dividend and how much is retained as earning in the business. But as
a profitability index it is widely used ratio. .

62
63
 SWOT ANALYSIS

Strengths
 It has an extensive distribution network comprising of 319 branches in 166 cities
& one international office in Dubai this provides a competitive edge over the
competitions.
 The Bank has a strong retail depository base & has more than million customers
 Bank boasts of strong brand equity
 ISO 9001 certification for its depository & custody operations & for its back end
processing of retail operation & direct banking operations.
 The bank has a near competitive edge in area of operations
 The bank has a market leader in cash settlement service for the major stock
exchanges in its country
 HDFC Bank is one of the largest private sector bank working in India
 It has a highly automated environment in terms of information technology &
communication system
 Infrastructure is best
 It has many innovative products like kids Advantage scheme, NRI services

Weakness
 Account opening and delivery of cheque book take comparatively more time.
 Lack of availability of different credit products like CC Limit, Bill discounting
facilities.

Opportunities
 Branch expansion
 Door step services
 Greater liberalization in foreign ownership via FDI in Indian Pvt. Sector Banks
 Infrastructure improvements & better systems for trading & settlement in the
govt. Securities & foreign exchange markets
.

64
 Threats
 The bank has started facing competition from players like SBI, PNB Bank in the
finance market itself. This reduces the profit margins in the future.
 Some Pvt. Banks have 7 days banking.

Summary of Learning Experience-

Almost all the Banks offer similar features and facilities with their Savings accounts.
There are certain reasons for existing customers of Saving Account of any Bank to shift
to another Bank. The level of service in terms of delivering whatever is promised, fast
response in case of problems, is the most important benefit that the customers seek, from
the Bank they have a Saving Account with.
1. Network reach and visibility of a Bank is a very important criterion for the
customer while opening a Saving Account. We can also conclude from our
analysis that network reach in terms of Branches and ATMs is directly
proportional to the market share in case of Private Players.
2. In case of a new customer, if a bank approaches it first for opening a Saving
Account with them, then there is a good chance for the bank of getting many
future businesses and cross sales from the deal.
3. Aggressive Marketing is the key to increasing the market share in this area, since
the market has a lot of potential both in terms of untapped market.

Recommendations
After analyzing the ratios and financial statement I can conclude that company’s overall
performance is good which is also reflected by its P/E ratio but in certain areas it need
improvement. 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.
As in case of current ratio its ratio is almost half of our nearest peers. For current year the
NP margin is reduce, and market situation is very much price competitive so if they want
to decrease the gap of NP margin they should try to increase revenue by manufacturing.
65
When I see the return with respect to asset and equity their ratio is one-third as compare
to last year ratio.
Equity or capital investment has increased in the organization still it is showing a
decrease in earnings per share thus return on capital employed is also less as compared to
the previous year.

For improvement there are some recommendations:

1. Contract Sales Executive (CSE) should be trained to explain the product features
and its value added services to make customer’s product selection convenient.
2. Contract Sales Executive (CSE) should recommend right product to the right
customer so as to ensure a high degree of satisfaction among the customer.
3. The bank needs to make people aware about there products and the basic benefits they
can derive out of it. And also the differential features of its savings account as compared to
other banks.70% of the people did not even know about the concept, benefits and features of its
saving accounts.
4. The bank should also target small business unit for whom maintenance of the
AQB is not a problem as this segment is not much penetrated.
5. Though the bank offers free doorstep banking once a day this fact is also not
known to many customers or they still do not trust this service what ever the
reason the bank can popularize this service to gain an edge over nationalized
banks and Co-operative Banks.
6. Quality of service has been rated highly important by all demofigureic factors as a
reason for banking with a particular bank, Standard Chartered needs to improve
the services provided to its existing customers before attracting more in the future
and use word of mouth as a promotional tool to increase the sales potential of its
savings account

66
 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”
W. Clement Ston

The study may be a helpful step ahead in increasing the morale of each Employee and by
studying this, management 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.

67
 COMPARATIVE PROFIT AND LOSS
OF HDFC BANK
FOR THE YEAR ENDED 31st MARCH, 2009
COMPERATIVE INCOME
STATEMENT
For the year ended 31st march 2009

Particulars 2008 2009 INC/DEC %INC/DEC

INT INCOME 8303.34 12354.41 4051.07 48.78

(-)Cost of sales 2371.06 3663.56 1292.5 54.51

G.P(A) 5932.28 8690.85 2758.57 46.5

OPERATING EXP

Selling Exp 74.88 114.73 39.85 53.21

Adm EXP 1519.32 2247.48 728.16 47.92

Total Operating Exp(B) 1594.2 2362.21 768.01 48.17

Operating income(A-B) 4338.08 6328.64 1990.56 45.88

(+)O.Income 2855.79 3846.77 990.98 34.7

T.Inc 7193.87 10175.41 2981.54 41.44

(-)O.Exp 3956.31 6188.47 2232.16 56.42

Net income 3237.56 3986.94 749.38 23.14

(-)Tax 497.7 690.9 193.2 38.81

Net Profit 2739.86 3296.04 556.18 20.29

INTERPRETATION

Since the profit of the bank has been increased by 20.29% during last fiscal. So financial
of bank is satisfactory

68
Balance Sheet of HDFC Bank ------------------- in Rs. Cr. -------------------
Mar '06 Mar '07 Mar '08 Mar '09
12 mths 12 mths 12 mths 12 mths

Total Share Capital 313.14 319.39 354.43 425.38

Equity Share Capital 313.14 319.39 354.43 425.38
Share Application Money 0.07 0.00 0.00 400.92
Preference Share Capital 0.00 0.00 0.00 0.00
Reserves 4,986.39 6,113.76 11,142.80 14,226.43
Revaluation Reserves 0.00 0.00 0.00 0.00
Net Worth 5,299.60 6,433.15 11,497.23 15,052.73
Deposits 55,796.82 68,297.94 100,768.60 142,811.58
Borrowings 4,560.48 2,815.39 4,478.86 2,685.84
Total Debt 60,357.30 71,113.33 105,247.46 145,497.42
Other Liabilities & Provision 7,849.49 13,689.13 16,431.91 22,720.62
Total Liabilities 73,506.39 91,235.61 133,176.60 183,270.77
Mar '06 Mar '07 Mar '08 Mar '09
12 mths 12 mths 12 mths 12 mths

Cash & Balances with RBI 3,306.61 5,182.48 12,553.18 13,527.21

Balance with Banks, Money at Call 3,612.39 3,971.40 2,225.16 3,979.41
Advances 35,061.26 46,944.78 63,426.90 98,883.05
Investments 28,393.96 30,564.80 49,393.54 58,817.55
Gross Block 1,589.47 1,917.56 2,386.99 3,956.63
Accumulated Depreciation 734.39 950.89 1,211.86 2,249.90
Net Block 855.08 966.67 1,175.13 1,706.73
Capital Work In Progress 0.00 0.00 0.00 0.00
Other Assets 2,277.09 3,605.48 4,402.69 6,356.83
Total Assets 73,506.39 91,235.61 133,176.60 183,270.78
Contingent Liabilities 138,898.60 202,126.73 582,835.94 396,594.31
Bills for collection 5,239.26 7,211.88 17,092.85 17,939.62

Book Value (Rs) 169.24 201.42 324.38 344.44

69
.
BIBLIOGRAPHY

http://www.hdfc bank.com
http://www.moneycontrol.com
http://www.rediff.com
http://www.economictimes.com
http://www.wikipedia.com

http://www.scribd.com

http://www.ercap.org

http://www.wikipedia.com

http://www.nwda.gov.in

http://www.A2Zmba.blogspot.com

http://www.mbafin.blogspot.com

BOOKS
 FINANCIAL MANAGEMENT - I. M. PANDEY

 MANAGEMENT ACCOUNTANCY - PILLAI & BAGAVATI

70
 MANAGEMENT ACCOUNTING

 SHARMA & GUPTA INTERNET SITE

71