INDUSTRY PROFILE &

COMPANY PROFILE

1
 INDUSTRY PROFILE
INTRODUCTION OF BANKING
"Bank is an institution whose Debts widely accepted in settlement of other people's debts to each

other".

The banking company in India defined the Band, in the companies Act.1949, as the one

"which transacts the business of banking which means the accepting for the purpose of

lending to invests of deposits of money from the public. The deposits, which repayable on

demand withdrawal by check, draft orders.

TYPES OF BANKING
Several types of banks have come in to existence performing different specialized functions based

upon the functions performed by them; banks may be classified into different types;

1) COMMERCIAL BANKS:
They are a joint stock bank which acts as different kinds of deposits from the public and
grant short term loans. Their main aims Is to provide security of funds to depositors and
make profits for their share holders. As their deposits are mainly for short periods, they
cannot lend money for long periods. They mainly finance business and trade for short periods
to meet their day - to - day transactions. They may provide finance in the form of cash credits
our drafts or loans. They also provide finance by discounting bills of exchange.

2) INDUSTRIAL BANKS
These banks are also called investment banks. They provide long terms finance to industries
ranging over a few decades. They finance long term projects and developmental plans. T hey
receives long term projects deposits from the public.

3) AGRICULTURE BANKS
The commercial industrial banks are not able to meet the financial requirements of agriculture.
Agriculture requires both short term and long-term finance. Frames requires short term finance
to buy seeds, fertilizers, implements etc.,

2
4) CO-OPERATIVE BANKS:
The banks are formed to supply credit to members on easy terms. They do not aim at

profit in their operations. They attract depositors from the farmers and promote thrift by

offering slightly higher rates of interests than commercial banks. They provide credit

facility to needy framers and small-scale industries.

5) EXCHANGE BANKS:
The specialized in financing the import and export trade of the country. They purchase bills
from exporters and sell them to importers. They provide remittance facilities and trade
information to their clients.

6) SAVE-INH BANKS:
These banks collect small and scattered savings of the low- and middle-income group people.
These banks receive small amounts, deposits and withdrawals are restricted. Bank offer
minimum interest on these deposits.

7) CENTRAL BANK:
The central bank controls the entire banking system in the country. It operates the currency and
credit system in the country. It acts as an agent and adviser to the government and works in the
best interests of the nation with out any profit motive in ts operations.

Historically, a bank has been a place where depositors could park money and borrowers could

borrow. The typical spread of the bank was raising money through deposits and leading it to

corporate clients. This made the relationship with the retail consumer rather passive.

The commercial banking structure in India consists of:

Scheduled Banks in India

Unscheduled Banks in India

Scheduled Banks in India constitute those banks which have been included in the Second

Schedule of Reserve Bank of India (RBI) Act, 1934. RBI in turn includes only those banks in

this schedule which souterrain laid down vide section42 (6)(a) of the act.

3
As on 30th June, 1999, there were 300 scheduled banks in India having a total network of

64,919 branches. The scheduled commercial banks in India comprises of State bank of India

and its associates (8), nationalized banks (19), foreign banks (45), private sector banks (32),

co-operative banks and regional rural banks.

"Non-schedule bank in India" means a banking company as in clause (c) of section 5 of the
banking regulation act, 1949 (18 of 1949). Which is not a schedule bank"

The following are the schedule public sector banks in India:

State bank of India
State bank of banker and Jaipur
State bank of Hyderabad
State bank of Indore
State bank of Mysore
State bank of Patiala
State bank of Saurashtra
State bank of Travancore
Andhra bank
Allahabad bank
The Following are the scheduled private sector Banks in India:
Vysya Bank Ltd e
UTI Bank Ltd
Induslnd Bank Ltd
HDFC Banking Corporation Bank Ltd
Global trust Bank Ltd e
HDFC Bank Ltd
Bank of Punjab Ltd e
IDBI Bank Ltd
Top19 large Banks in INDIA:

1 1 HDFC

3 3 ANB Amro

4 6 Corporation
bank

4
 5 19 n ra an

6 2 City bank NA

7 21 Punjab
national Bank

8 9 Standard
charted

9 13 UTI Bank

10 12 HDFC

HDFC Bank is India's largest private sector bank with total assets of Rs. 5,946.42 billion (US$
99 billion) at March 31, 2019 and profit after tax Rs. 98.18 billion (US$ 1,637 million) for the
year ended March 31, 2019.HDFC Bank currently has a network of 3,839 Branches and
19,943

ATM's across India.

COMPANY PROFILE
The symbol of HDFC Bank represents the vision and operations very precisely where infinite
"ka" reflects our global Indian personality. The "ka" is uniquely Indian while its curve forms the
infinite sign, which is universal. One of the basic tenants of economics is that man's needs are
unlimited. The infinite "ka" symbolizes that we have an infinite number of ways to meet those
needs.

GENISIS OF HDFC BANK

KMBL has come into existence in March 2003 through the conversion of HDFC bank limited
into a Commercial Bank. HDFC is one of India's leading financial institutions, offering
complete financial solutions that encompass every sphere of life. From commercial banking,

5
to stock broking, to mutual funds, to life insurance, to investment banking, the group caters to
the financial needs of individuals and corporate.

The group has a net worth of over Rs.1,550 crore and employs over 3,000 employees in
its various businesses. With a presence in 60 cities in India and offices in New York,
London, Dubai and Mauritius, it services a customer base of over HDFC is fairly big
and widely based with cross border operations. In 2008, the group had net worth of over
Rs 5,824 crores and employed over 20,000 people in its various business with a presence
of 100 cities in
India and offers in New York, London, Mauritius. Debit cards base increased to

HDFC bank is the flagship company of the group. The company was incorporated in 1985 and
over the years has spread its business into the entire spectrum of financial services either
directly or through subsidiaries. In February 2003, the company reached a new milestone when
it was given license to carry on banking business by the Reserve Bank of India. It was the first
company in India to convert to a bank. The company has been in retail leading since mid
1990's. With the conversion into bank retail liabilities, treasury and corporate banking
segments have been added.

JOURNEY TO BANK: A SPECTACULAR METAMORPHOSIS

The HDFC group was incorporated in 1985 as a HDFC Capital Management Finance Limited.
This company was promoted by UDAY HDFC, SIDNEY, PINTO AND HDFC AND

COMPANY

Industrialist HARISH MAHINDRA and ANAND MAHINDRA took a stake in 1986 and

thus the company changed its name to HDFC FINANCE LTD.

HDFC group chairman is Mr.KM GHERDA

HDFC vice chairman and managing director is Mr. UDAY HDFC

HDFC chairman of board of directors is Mr. SHANKAR ACHARYA.

6
OVERVIEW OF HDFC GROUP OF COMPANIES
HDFC Group of companies has various arms to help its reach objectives. They are
1) HDFC Investment Banking.
2) HDFC Institutional Equities.
3) HDFC Securities.
4) HDFC Car Finance.
5) HDFC Life Insurance.
6) HDFC Mutual Fund.
7) HDFC International Subsidiaries.

HDFC INVESTMENT BANKING:

HDFC investment banking is a India's premier investment bank which is a strategic joint venture
between HDFC Bank which is holding 75% and Goldman Sachs which is holding 25%. HDFC
investment banking offers a full-service investment banking solution to its clients by combining
the global reach and expertise of GOLDMAN SACHS,
HDFC investment banking identifies structures and executes merges, acquisitions, divestitures
and issuance a debt and equity and also provides innovative solutions to corporate and
government enterprise. In equity business, HDFC investment bank works with top rated
companies in accessing the public and private equity markets and providing innovative financing
solutions. HDFC investment banking pioneered the concept of book-built equity offering in India
with the IPO of Hughes Software Systems Ltd and has raised equity through book building for
some of the largest equity deals ever done in domestic market.

AWARDS:
HDFC Investment Banking achievements are awesome and hence got crowned with many as it
deseue.s.-HDFC investment banking has been awarded

"BEST DOMESTIC EQUITY HOUSE" by Asia money in 2003, 2004, 2006, 2007 &
2008.
> "BEST INVESTMENT BANK IN INDIA" by finance Asia in 2003, 2004, 2006 &
2008.

7
 "BEST INVESTMENT BANK IN INDIA" by Global finance in 2004 and 2005.
"BEST EQUITY HOUSE IN INDIA" by Euro money in 2003, 2004, 2005, 2007 &
2008.
India's equity house of the year by IFR Asia in 2004.
"BEST BROKERAGE FIRM IN INDIA BY ASIA MONEY in 2007"
"BEST PERFORMANCE EQUITY BROKERAGE" in India CNBC financial
advisor awarded in 2008
HDFC Bank wins 4 awards at the D&B-Polaris Financial Technology Banking Awards
2014
HDFC Bank has won three awards at the Business Today India's Best Banks Awards
in
2018
In the Asia money FX poll 2019, corporates have voted HDFC Bank the Best Domestic
Provider for FX Products and Services in India in 2019
HDFC INSTITUTIONAL EQUITIES

HDFC institutional equities focus on catering to the institutional clients including foreign

institutional investors, banks, mutual funds and insurance companies.

HDFC research analysts were ranked top 3 in institutional investors 2004 all Asia ranking, It

caters to institutional clients of India, London, New York, Hong Kong, Singapore, Japan and

Middle east. The full-service research team's sectoral analysis covers all the major areas of the

India economy and constantly delivers comprehensive high-quality research across a wide

spectrum of industries.

HDFC SECURITIES

HDFC securities are a strategic joint venture between HDFC BANK (holding 75%) &
GOLDMAN SACHS (holding 25%) is India's leading brokerage and securities
distribution house. HDFC securities has been ranked the largest distributor of initial
public offerings for 2006-2007 by PRIME database and has been awarded India's best
equity house for 2008 by Finance Asia, Best broker in India for 2008 by Finance Asia
and best equities house in India for 2008 by Euro money.

8
The non-institutional division of HDFC securities offers both offline and online broking.

Apart from broking services, the non-institutional segment offers wide range of products

including portfolio management services, margin lending, depository services and other fee-

based activities.

The private client group (PCG) of the company provides investment advisory services to High

Net Worth individuals, Non-Resident Indians (NRIs) Investor Trusts and Corporate.

management were in excess of Rs. 28 billion. HDFC securities average daily volume

5,300 crores (in 2008).

HDFC CAR FINANCE

During 2005, the HDFC Group's ownership in HDFC Primus Limited (KMPL) has gone up to
100% following the acquisition of 40% stake held by Ford Credit International (FCI). The
primary business of KMPL is to finance passenger cars, multi-utility vehicles in India for
retail customers and working capital and infrastructure requirements of dealers. KMPL offers
finance for both new as well as used cars,

KMPL offers car financing primarily in the form of loans. KMPL also offers inventory funding

to car dealers and has entered into strategic arrangement with various car manufacturers in

India for being their preferred financier. KMPL has established a centralize customer services

activity to ensure high quality and timely response to customer needs.

HDFC LIFE INSURANCE

As a financial year 2008 first year regular premium 1,046 crores, 61 crores single
premium,
585 crores renewal premium.

HDFC MUTUAL FUND

HDFC Mutual Fund was established in 1998, right from starting it has built a reputation as a
innovator among other things it has given Indian mutual fund industry its first guilt fund, first
multi-manager equity fund of funds, first theme fund dedicated to globally competitive Indian

9
companies, first investor loyalty scheme and first SMS-based information service which has led
the way for rest of the industry. HDFC Mutual goal is to offer investors a full range of products,
across the risk-return spectrum, to enable them to build wealth and achieve their financial goals.
To achieve this, it tries to make investing in mutual funds a simple and convenient process for all
investors, by constantly upgrading its service levels and relying on innovation to make the
difference.
HDFC INTERNATIONAL SUBSIDIARIES
The international subsidiaries offer brokerage and asset management services to high net worth
individuals and institutions based outside India through its range of offshore India funds, as well
as through specific advisory and discretionary investment management mandates from
institutional investors. HDFC International Ltd is the investment manager to over US $375 mn in
equity assets invested into India through various funds. The international subsidiaries also dealing
depository receipts and lead manage and underwrite international issuances of securities.

HDFC REAL ESTATE FUND

The group has launched HDFC Realty Fund, a SEBI registered venture capital fund, with
a focus on the Indian real estate and allied sectors. The primary objective of the fund is to
invest in and provide finance to real estate sector and allied activities in Indian with an
intention to generate superior risk adjusted returns.

NRI SERVICES
HDFC BANK offers a diverse set of NRI- centric financial solutions including
investments, remittances and deposits. Ranging from NRE/NRO/FCNR accounts, Demat
accounts are the value-added benefits like At-par cheques, at home services, free inward
funds transfer, mandate facility etc. The investment product ranges from mutual fund to
insurance. The bank's Portfolio Investment scheme (PINS) enables to deal in equities in
secondary market. We offer a platform that includes a bank account a demit account and a
broking account through HDFC securities.

10
 CHAPTER-IV
DATA ANALYSIS AND
INTERPRETATION
WORKING CAPITAL POSITION ANALYSIS IN HDFC BANK
Net working Capital (CURRENT ASSETS - CURRENT LIABILITIES)

Table 1 - Common Size Analysis

(in ercenta e)
Particulars 2017-2018 2018-2019 2019-2020 20202021 20212022

ASSETS
Cash and Balances with the reserve 9.83 3.75 4.71 5.57 6.28
bank of India
Balance with bank's money at call 1.71 2.77 0.94 1.26 1.07
and short notice
Investments 22.76 23.34 25.60 25.40 22.02
Advances 61.87 65.83 64.92 64.84 66.17

Fixed assets 0.33 0.32 0.28 0.28 0.29

Other assets 3.46 3.95 3.52 2.62 4.14

TOTAL ASSETS 100 100 100 100 100

EQUITIES AND
LIABILITIES
SHAREHOLDERS FUND
Equity and share capital 0.04 0.04 0.03 0.03 0.02
J
Reserves and surplus 9.94 11.94 11.13 11.63 4 8
/
Deposits 74.13 74.17 74.97 76.42 75.37
Borrowings 11.57 9.40 9.44 7.75 8.93
Other liabilities and provision 4.30 4.42 4.40 4.15 4.08

TOTAL CAPITAL AND 100

11 100 100 100 100
LIABILITIES
 Chart I - Trend Anal sis

INTERPRETATION

The above table 1 shows the common size statement of HDFC

bank for a period of five years from 2018 to 2022. The bank's
major assets are comprised of advances and investments, with
cash and balances with the Reserve Bank of India also making a
significant contribution. The largest liability is deposits with
76.42 percentage in the year 2021, followed by borrowings
with 11.57 percentage in the year 2018 and other liabilities and
provisions with 4.42 percentage in 2019. The shareholders'
funds comprise a relatively small percentage of the total
liabilities and equity, with reserves and surplus being the
largest component with 11.94 percentage in 2019. Overall, the
bank has maintained a stable balance sheet over the five-year
period, with little change in the proportion of assets and
liabilities.
The decrease in cash and balances with the Reserve Bank of
India in 2019 and 2020 could be a cause for concern, but this
was offset by an increase in investments in those years. The
increase in advances
(DUUICC. uteu uatit'
Particulars 20172018 20182019 20192020 2020. 20212022
2021
ASSETS

12
Cash and borrowings with 176.19 -55.32 54.40 34.81 33.54
reserve bank in India

Balances with bank's money at 65.03 -98.10 -58.32 53.53 0.91

call and shorts notice
Investments 12.93 19.97 34.83 13.24 2.66
Advances 18.71 21.27 14 -87.9
Fixed assets -0.53 11.72 9.97 10.77 23.92
Other assets 12.67 33.33 9.67 -14.84 86.75
TOTAL ASSETS 23.16 16.97 22.97 14.13 18.4
EQUITIES AND
LIABILITIES
SHAREHOLDERS FUND
Equity share capital 1.27 4.94 0.67 0.53 0.59
Reserves and surplus 18.91 40.54 14.64 19.20 17.90
Deposits 22.5 17.03 24.30 16.34 16.79
Borrowings 66.29 -4.89 23.52 -6.32 36.40
Other Liabilities and provisions -19.30 20.4 22.29 7.72 16.26

TOTAL CAPITAL AND 23.16 16.97 22.97 14.13 18.41

LIABILITIES

13
INTERPRETATION

The table shows the balances sheet of the HDFC bank for the years 2017-
2018 through 2021-2022. The assets of the bank consist of cash and
borrowings with the Reserve Bank of India, balances with banks,
investments, advances, fixed assets, and other assets. Over the fiveyear
period, the bank's assets increased by 18.4 percentage, mainly driven by
an increase in cash and borrowings with the Reserve Bank of India with
176.19 percentage in 2017-2018, balances with banks with 65.03
percentage in 2017-2018, and investments with 34.83 percentage in 2019-
2020, while advances decreased significantly by 87.9 percentage in 2021-
2022. On the other hand, the equities and liabilities of the bank include
equity share capital, reserves and surplus, deposits, borrowings, and other
liabilities and provisions. The banles total capital and liabilities increased
by 18.41 percentage over the five-year period, with borrowings showing a
significant increase with 36.40 percentage in 2021-2022. The banles
reserves and surplus, which represent its accumulated profits, have shown
a fluctuating trend, with a sharp increase in 2018-2019 with
40.54 percentage followed by a decline with 14.64 percentag
Current ratio current assests/current liabilities
Mar Mar Mar Mar Mar Mar Mar
Year '16 '17 '18 '19 '20 '21 '22
667 ,398
Current . 817,983. 1,023,448. 1,191,336. 1,472,148. 1,696,035. 1,976,683.
Assets 7 4 1 4 6 2 5
636,167. 774,377 957,639.33 1,095,334 1,359,525. 1,828,442.
Current 9 . . 3 1,543,149.
Liabilities 5 4 9 1
 1.05 1.06 1.07 1.09 1.08 1.10 1.08
Current
Ratio

CURRENT RATIO

n. 10

Mar Mar Mar Mar Mar Mar Mar

' 16 ' 17 ' 18 ' 19 ' 20 ' 21 ' 22 CURRENT RATIO

1 . 08 . 08
Years

CURRENT RATIO

INTERPRETATION: The graph shows the current ratio of HDFC Bank over a period of seven years. A
higher
current ratio is considered better as it mdicates that HDFC Bank has more assets than it needs to cover its
shortterm liabilities. HDFC Bank's current ratio in the chart has fluctuated between 1.02 and I. 10 over the
seven year
period. HDFC Bank's average current ratio is 1.07. This is a healthy current ratio and shows that HDFC
Bank is in a good position to meet its short-term obligations.
b) Quick Ratio:
Quick Ratio = Quick Assets/Current Assets
Year Mar '16 Mar '17 Mar Mar '19 Mar Mar '21 Mar '22
'18 '20
Quick Assets 202,804 365,115.3 371,935.5 478,445.3 563,198.6 607,862.6
. 263,415.
4
1
Current 708,845. 863,840. 1,244,540 1,746,870. 2,068,535.
Liabilities 6 . 52 04
33 69 26
u

QUCIK RATIO
0.34 0.3

uQUCIK PATIO
0 . 30
¯Years
• QUCIK RATIO
INTERPRETATION: The graph shows that the quick liquidity ratio of
HDFC Bank has been steadily declining over the last seven years.
In March 2016, the quick ratio was 0.29. By March 2022 it had
fallen to 0.29. This means that HDFC Bank will no longer be able
to meet its short-term obligations with its most liquid assets.
This would increase the short-term liabilities of HDFC Bank and
hence reduce the quick liquidity ratio. Another possibility is
that HDFC Bank has sold its most liquid assets. This would reduce
the current assets of HDFC Bank and thereby reduce the liquidity
ratio.
2) Solvency Ratio:
Solvency Ratio = Total Asset / Total Debt

Mar
Year Mar '16 Mar '17 Mar '18 Mar '19 Mar '20 Mar '22
'21
Total 708,845. 863,840. 1,063,934
 Asset 5 2 .3
7 1 9 7 3 5
Total 599,442. 717,668. 911,875.6 1,040,226 1,744,034
3
Debt 6 5 1 .0 .6
6 3 5 4 5
1.18 1.20 1.17 1.20 1.18 1.19 1.19
Solvenc
y Ratio

Solvency Ra tio
1.21

Years
Solvency Ratio

INTERPRETATION: It is a bar graph showing the debt-to-equity ratio of a HDFC BANK

over a seven-year period, from 2016 to 2022. The debt-to-equity ratio is a financial metric
that measures a HDFC BANK's total liabilities by its total shareholders' equity. The graph
shows that HDFC BANK's debt-to-equity ratio has been steadily increasing over the past
seven years. In 2016, the debt-to-equity ratio was 1.18. In 2022, it had increased to 1.19. It
means that HDFC BANK is using more debt to finance its operations.
3) Return on equity (ROE):

ROE = Net Income / Shareholders' Equity

 Year Mar '16 Mar '17 Mar '18 Mar '19 Mar '20 Mar '21 Mar '22

Net Income 9,570.60 14,486.19 17,097.56 13,528.08 14,114.92 15,413.68 21,899.52

verage 505.64 512.51 519.02 544.6 548.33 551.28 554.55

Shareholder'
Equity
eturn on qulty 3 2 .27 32. 25. 2 3
2.

Return on Equi ty
45.0

39.4 Y
Years

Return on Equity

INTERPRETATION: It is a graph showing the Return on equity

ratio of a HDFC BANK over a sevenyear period, from 2016 to
2022. Return on equity (ROE) is the measure of HDFC Bank
net income divided by its shareholders' equity. ROE is a
gauge of a corporation's profitability and how efficiently
it generates those profits. The higher the ROE, the better
a company is at converting its equity financing into
profits. The graph shows that HDFC BANK's Return on equity
ratio has been steadily increasing over the past seven
years. In 2016, the Return on equity ratio was 18.93. In
2022, it had increased to 39.49. This means that the HDFC
BANK is using more debt to finance its operations. In
contrast, a declining ROE can mean that management is
making good decisions on reinvesting capital in productive
assets.
4) Return on assets (ROA):
ROA = Net Income / Total Assets
Year ar'16 Mar Mar '18 Mar '19 Mar '20 Mar '21 Mar '22
'17
Net 9,570. 14,486 17,097. 13,528.0 14,114. 15,413.6 21,899.5
Incom 60 .1 56 8 92 8 2
e 9
Total 708,84 863,84 1,244,54 1,746,87 2,068,53
Asset 5. 0. 0. 0. 5.
s 57 31 69 27 53 05
20
Retur 1.35 1.68 1.61 1.09 0.92 0.88 1.06
n on
Asset
s
(ROA)

Return on Assets (ROA)

 1.80 1 68 .61

• Return on Assets (RON} I.SS¯ 1 .

6B
Years
On Assets IROA)

INTERPRETATION: Return on assets (ROA) measures how efficient HDFC Bank

management is in generating profit from their total assets on their balance sheet. ROA is
shown as a percentage, and the higher the number, the more efficient HDFC Bank
management is at managing its balance sheet to generate profits. The graph shows that the
HDFC BANK's Return on assets ratio has been steadily increasing over the past seven years.
In 2016, the Return on assets ratio was 1.35. In 2022, it had increased to 1.06. A higher ROA
means HDFC Bank is more efficient and productive at managing its balance sheet to
generate profits while a lower a Lower ROA indicates there is room for improvement.
COMPARATIVE BALANCE SHEET
1) Table showing comparative balance sheet of financial year Mar-2016 to Mar-2017
Mar '16 Mar '17 Amount Of Increase Percentage Of
Particulars
Capital and
Liabilities:
Total Share 505.64 512.51
Ca ital 6.87 6.87 1.36 1.36
Equity 23.25
Ca ital 505.64 88,949.84 1 23.09
Reserves 89 462.35 17.79
Net Worth
 39.63
Deposits 19.72 54.42
Borrowings 7
Ota e t
er 599,442.66 56,709.32
Liabilities
Provis ions 36 725.13 863,840.20 154994.64
Liabilities 708,845.56

Balances with
30,058.31 37,896.88 7838.57 26.08
RBI

Banks, Money at
Call
464 593.96 554 568.20

Investments 163,885.77 214,463.34 50577.57 30.86

Gross Block 3,343.16 3,626.74 283.58 .48
Net B oc 3,343.16 3,626.74 283.58 8.48
t er ssets
Tota ssets 708,845.57 863,840.20
INTERPRETATION: During the financial year 2016-2017 the fixed asset is increased by 8.48 %
and also other asset and other liability and provision increase, the bank borrowings is increased by
39.63 % and investment is increased by 30.86 0/0. The other liabilities have been increased by 54.42
0,/0. The bank has to focus on increasing fixed assets.
2) Table showing comparative balance sheet of financial year Mar-2017 to Mar-2018
Mar '17 Mar '18 Amount Of Percentage Of
Particulars Increase /Decrease Increase/Decrease
aprta an
Liabilities:
Total Share 512.51 519.02 6.51 1.27
Ca ital
 Equity Share
512.51 519.02 6.51 1.27
Capital
Reserves
Net Worth
Deposits
Borrowings
Total Debt
Other
Liabilities &
Provis ions 56,709.32 45,763.72 -10945.6 -19.30
Ota
Liabilities
sse s
as
Balances with
RBI 37,896.88 104,670.47 66773.59 176.20
a nce WI
Banks, Money
at Call
7189.39 65.03
554,568.20 658,333.09 103764.89 18.71
242,200.24 27736.9 12.93
3,626.74 3,607.20 -19.54 -0.54
3,626.74 3,607.20 -19.54 -0.54
42 229.82 36 878.70 -5351.12 -12.67
863,840.20 200094.11 23.16

INTERPRETATION: During the financial year 2017 -2018 the fixed asset decreased by .54 %
and also other asset and other liability and provision decreases, the bank borrowings is increased
by 66.29 % and investment is increased by 12.93 %. The other liabilities have been decreased by
19.3 %. The bank has to focus on increasing fixed assets.
3) Table showing comparative balance sheet of financial year Mar-2018 to Mar-2019
Mar '18 Mar '19 Amount Of Increase Percentage Of
/Decrease Increase/Decrease
Particulars
 aplta an
Liabilities:
Total Share 519.02 544.66 25.64 4.94
Ca ital
Equity Share
Ca ital 519.02 544.66 25.64 4.94
Reserves
Net Worth
Deposits
Borrowings
Total Debt
Other
Liabilities &
Provis ions 45,763.72 55,108.29 9344.57 20.42
Tota
Liabilities
ssets
as
Balances with
RBI 104,670.47 46,763.62 -57906.85 -55.32
a w
Bank, Money a
Call 16339.41 89.56
658,333.09 819,401.22
242,200.24 290,587.88
3,607.20 4,030.00
3,607.20 4,030.00
36,878.70 49,173.95
1,244,540.69

INTERPRETATION: During the financial year 2018-2019 borrowings decreased by 4.89 %

cash and

Balance
 RBI decreased by 55.32. While banks' deposit increased by 17.04% and advances increased by
24.47%.
fixed asset isll.72%. HDFC bank has to increase the cash and balance with RBI. The
borrowing of bank
has
been
decre
ased
by -
4.89
%. 5)
Table
showi
ng
comp
arativ
e
balan
ce
sheet
of
finan
cial
year
Mar-
2020
to
Mar-
2021.
Mar '20 Mar '21 Amount Of Increase Percentage Of
Particulars /Decrease Increase/Decrease
apl a an
Liabilities:
o r
Capital
 qui y are
548.33 551.28 2.95 0.54
Capital
eserves
Net Worth 170,986.03 203,720.83 32734.8 19.14
De osits 1,147,502.29 187557.93 16.34
Borrowings 144,628.54 135,487.32 -9141.22 -6.32
Total 178416.71 13.81
Debt
Other
Liabilities & 67,394.40 72,602.15 5207.75 7.73
216359.26 14.14
Total
Liabilities

Cash &
72,205.12 97,340.74 25135.62 34.81
Balance with
Banks, Mone 7716.06 53.53
993,702.88 14.00
Advances 139133.75
Investments
2
1 01 63 12
Gross
Block 44 1. 2 477.4 10.77
Net Block
4 431.92 4 909.32 477.4 10.77
Other Assets 53,931.09 45,925.89 -8005.2 14.84

INTERPRETATION: During the financial year 2020-2021 borrowings is decreased by 6.32% and
other assets decreased by 14.84 and deposit, investments, advances is increased.
4) Table showing comparative balance sheet of financial year Mar-2019 to Mar-2020
 Mar '19 Mar '20 Amount Of Increase Percentage Of
Particulars /Decrease Increase/Decrease
Capital and Lia
ilitie
Total Share 544.6 548.33 3.67

Equity Share 544.66 548.33 3.67 0.67

Reserves
Net Worth
Deposits
Borrowings
Total Debt
Other
55,108.29 67,39
Liabilities & 12286.11 22.29
4.40
Provisions 285970.57 22.98
Total
Liabilities
Assets
Cash & 54.40
Balances with 25441.5
RBI
Balance with
Bank, Money t -20170.42 -58.32
Call
vances 819,401.22 993,702.88
nves men s 2
401. 2
ross oc 401.92 9.97
4757.14 9.67
285970.58 22.98
INTERPRETATION: During the financial year 2019-2020 Balance with other banks
decreased by 58.32

and henks advance, investments and deposit increased. Which is good for the bank due to this
bank can generate profit.
 6 Table showin com arative balance sheet of financial ear Mar-2021 to Mar-2022.

Mar '21 Mar '22 Amount Of Increase Percentage Of

ecrease ncrease ecrease
IN Capital and
TE Total Share
551.28 554.55 3.27 0.59
RP
Equity Share
RE
203,169.55 239,538.38 36368.83 17.90
TA Reserves
203,720.83 240,092.93 36372.1 17.85
TI Net Worth
De osits 224157.22 16.79
ON
Borrowings 135,487.32 184,817.21 49329.89 36.41
:
Total Debt 273487.11 18.60
Other
Liabilities &
Provisions 72,602.15 84,407.46 11805.31 16.26
Total 321664.52 18.41
Liabilities
Assets
Cash &
Balances with
RBI 97,340.74 129,995.64 32654.9 33.55
Balance with
Banks, Money
at Call 201.63 0.91
Advances 235984.3 20. 3
Investments 07. 2.
Gross Block 7 .35 23. 2
Net Block
t er ssets
Ota ssets
1 2
During the financial year 2021-2022 borrowings has been increase by 36.41%. All the assets
like cash and balance with RBI is 33.555, Balances with Other Banks is 0.91%, Investments
is 2.66%,
Advances is 20.83%, Fixed Assets is 23.92 and Other Assets is 86.75% increase in 2021-2022.
FINDINGS
The HDFC Bank's current ratio and quick ratio point to a good liquidity position and the bank's capacity
to fulfil its shortterm commitments. HDFC Bank's current ratio has fluctuated between 1.02 and 1.09
over the seven years, indicating a healthy but slightly declining liquidity position.
The quick ratio has steadily declined from 0.35 to 0.25, suggesting a decrease in the bank's ability to meet short term

obligations with its most liquid assets. The debt-to-equity ratio has significantly increased f rom0.50 to 1.21, indicating a

growing reliance on debt to finance operations. This could be a potential concern

for investors, as it may increase the bank's vulnerability to economic downturns.
ROE has seen a remarkable increase from 18.93% to 39.49%, indicating that the bank is efficiently
generating profits from its shareholders' equity. ROA has also shown a slight increase from 1.35% to
1.06%, suggesting efficient asset management for profitability. In the financial year 2017-18 the fixed
assets of the bank increased by Il .72 % from
the previous year. There was only 59.32 % increase in the capital of the bank in 2021-
2022. While the balances with other banks increased to
91.11 % in the year. The bank deposits increased by 16.79 % and the advances provided increased by 20.83
%. During the
financial year 2021-2022 the cash balance has been increased by 33.55%. During the financial year
2017 -2018 the fixed asset decreased by .54 % and also other asset and other liability and
provision decreases, the bank borrowings is increased by 66.29 % and investment is
increased by 12.93 %. The other liabilities have been decreased by 19.3 %. The bank has to
focus on increasing fixed assets.
a741
During the financial year 2021-2022 borrowings has been increase by 36.41%. All the assets like cash
and balance with RBI is 33.555, Balances with Other Banks is 0.91%, Investments is 2.66%, Advances
is 20.83%, Fixed
Assets is 23.92 and Other Assets is 86.75% increase in 2021-2022. HDFC Bank appears to be in a good
financial position, with
healthy profitability and a decent current ratio.
However, the increasing debt-to-equity ratio and declining quick ratio warrant Somers's
caution, as they could pose risks in the future.

CONCLUSIONS
The financial analysis of HDFC Bank reveals both strengths and concerns.

Positively, the bank shows strong profitability, with an impressive rise in Return on Equity (ROE) over the
last seven years, and a slight improvement in Return on Assets (ROA), indicating effective asset
management.
The research focuses on evaluating the financial performance and stability of the bank,
providing insights into Its operational mechanisms. An examination of HDFC BANK's
financial outcomes reveals that the institution maintains a commendable profitability level.
However, there is a notable necessity for enhancements in its liquidity and solvency
aspects. Should the bank augment its operational efficiency, it is poised for enhanced
success in the forthcoming period. It is imperative for the bank to strategize and execute
such measures to consistently outperform its competitors.
1. Khanna, -Shikhar. Issue 4 Www.Jetir.Org (ISSN-2349-5162). JETIR2304094 Journal of
Emerging Technologies and Innovative Research vol. 10 www.jetir.org (2023).
2. A STUDY OF RATIO ANALYSIS OF HDFC BANK: AN EVALUATION OF ITS

FINANCIAL
PERFORMANCE. International Journal of Progressive Research in
Engineering Management and Science
(2023) doi:10.58257/ijprems30606. 3. Current Research in Mutual Funds and Stock Market.
(2023).
4. Upreti, D. R. & Kulshrestha, S. A Theoretical Review on Factors of Working Capital
Management. Nepal
Journal of Multidisciplinary Research 5, 47—60 (2022).
5. Priyadharshini, T. & Menaka, M. A. A STUDY ON WORKING CAPITAL
MANAGEMENT

ON MARUTI
SUZUKI AND HYUNDAI MOTOR LIMITED IN INDIA. in EPRA International
Journal of Multidisciplinary
a742
Research (IJMR)-Peer Reviewed Journal (2021). doi:10.36713/epra2013. 6. Mba, 0., Trivedi, R.,
Ruhela, S. & Ranjan, O. Working Capital Management and Its Impact on
Profitability of Indian Banking Sector. 20, 3658-3666 (2021).
7. Acharya, S. A Study on Analysis of Working Capital Management with Special Reference
to

Private Sector
Banks in India. International Journal for Research in Engineering Application
& Management (IJREAM) 06,
2454-9150 (2021). 8. Rohit Kanda, M. Working Capital Management: A Case study of
OCM.
www.iosrjournals.org (2015).

WEBSITE
https://www.hdfcbank.c
om
https://www.moneycont
rol.com/
https://www.investoped
ia.com/
 COMPARATIVE BALANCE SHEET OF VASISTHA
CONSTRUCTIONS FOR
THE YEAR ENDING 31ST MARCH 2021 & 2022

PERCENTAGE
INCREASE/
PARTICULARS 31-3-2021 31-3-2022 INCREASE /
DECREASE
DECREASE

SOURCES OF FUNDS

SHARE HOLDERS FUNDS

Share capital 34500000 34500000 0
Reserves & surplus

LOAN FUNDS
Secured Loans 1680141897 1992249027 516197530 40.01454707
Unsecured Loans 44588001
DIFERRED TAX LIABILITY (Net) 203202275
293619778 431662282 177646503 46.8798047
TOTAL

APPLICATION OF FUNDS

FIXED ASSETS
Gross Block 1652543218 1985079419 532536201 42.51939345
Less: Depreciation Net Block
146651902 192884194 47232472 44.7058319
191966882 239339398 67772519 39.50214791
INVESTMENTS
CURRENT ASSETS LOANS &
ADVANCESS
Inventories 944150165 1599191691 2550821% 27.01929262
Sundry Debtors
Cash & Bank Balances
Loans & Advances
246598944 407776990 191578046 65.3603960
TOTAL
Less: CURRENT LIABILITIES &
PROVISIONS 648141567 1819396170 771704663 159.0157999
Current liabilities
Provisions

NET CURRENT ASSETS 293619778 431662282 177646503 46.8798047

MISCLLANEOUS EXPENDITURE
TOTAL
INTERPRETATION

1. The comparative balance sheet of the company reveals that during the year 2014 there
has been a decrease in current assets of Rs. 1915780465 i.e., 65%. While current liabilities
have decreased by Rs. 771704963 i.e., 159%. This fact depicts that the company is suffering
with inadequate working capital to meet its short-term obligation. While there

2. is increase in fixed assets value to the extent of Rs. 472324722 to that of current
liabilities. This fact depicts that the company has diverted its loans in the form of

working capital to meet its short-term obligation. On the whole the overall financial

position of the company

3. is satisfactory.
 COMMON SIZE BALANCE SHEET OF VASISTHA
CONSTRUCTIONS FOR
THE YEAR ENDING 31ST MARCH 2022-2023

PERCENTAGE PERCENTAG
PARTICULARS 31-3-2022 31-3-2023
OF CHANGE CHANGE

SOURCES OF FUNDS

SHARE HOLDERS FUNDS

Share capital 34500000 2.36 34500000 2.145755982
Reserves & surplus

LOAN FUNDS
Secured Loans 614933051 41.76 555991859 33.91960433
Unsecured Loans
DIFERRED TAX LIABILITY Net

TOTAL 186054191 140 193918488 140

APPLICATION OF FUNDS

FIXED ASSETS
Gross Block 541950837 37.08561619 624427166 38.14568779
Less:
De reciation Net Block
46864403 32.0870008 52498655 32.0280752
54988654 3.764949219 198141591 14.25541992
INVESTMENTS
CURRENT ASSETS LOANS &
ADVANCESS
Inventories 508199559 34.79391419 578425269 35.28823319
Sundry Debtors Cash & Bank
Balances
Loans & Advances
177649275 94.2453565 176419003 83.2257182
TOTAL
Less: CURRENT LIABILITIES &
PROVISIONS 414723831 28.15548834 391561650 23.8631685
Current liabilities
Provisions

NET CURRENT ASSETS 186054191 140 193918488 140

MISCLLANEOUS EXPENDITURE

TOTAL
INTERPRETATION

1. An analysis of current assets of both the years shows that the percentage of current
assets to that of total assets is 94% in the year 2018 and reduced to 83% in the year 2019
and in the both the years the company is having adequate working capital.

2. An analysis of current liabilities to that of shareholders funds shows that the percentage
of debt is less than the equity that iS a good sign i.e., the company's solvency is sound. To
run the company, it has to depend on working capital.

3. Company's reserve capacity is very good. All the fixed assets are well utilized and

investments are made regularly.