Ratio analysis of hdfc bank for last 5 years pdf

To compare the present and previous years performance of hdfc bank. A low debt to equity ratio indicates lower risk, because debt holders have less claims on the companys assets. A project report on financial performance based on ratios at. Share price, corporate actions, valuation, research report, financials and more complete track record of hdfc bank ltd from indias independent mutual fund research house. Moreover, it determines the ability of the bank to meet its current obligations, its operating efficiency and its performance.

Its current market capitalisation stands at rs 518718. Hdfcbank s earnings are forecast to decline next year, so we cant calculate its peg ratio. According to these financial ratios hdfc bank limiteds valuation is way below the market valuation of its sector. An interest coverage ratio below 1 indicates the company is not generating sufficient revenues to satisfy interest expenses here we see the ratio for hdfc bank is on the lower side indicating hdfc bank s interest expenses are very high as compared to previous years. Table 5 clearly explains that longterm solvency of the company. Review of literature noulas and ketkar 1996 conducted a study to examine the technical and scale efficiency of banks. The amalgamation added significant value to hdfc bank in terms of increased branch network, geographic reach, and customer base, and a bigger pool of skilled manpower hdfc bank ltd. In 1975, the company entered the hospitality business with t. The study is to assess the monetary execution of icici bank and hdfc bank. View the latest hdb financial statements, income statements and financial ratios. For fy 201617, hdfc bank disbursed a total amount of. Over the last 5 years, revenue has grown at a yearly rate of 19.

For fy 2017, hdfc bank s net interest margins stood at a healthy 4. This study has been carried out to evaluate the financial performance of hdfcbank. To study and compare the financial performance of pnb and hdfc bank through ratios analysis. Hdfc bank fact sheet, hdfc bank financial results equitymaster. Hdfc bank limited was founded in 1994 and is based in mumbai, india. Analysis of financial position and performance of public and private. During the past 12 months, hdfc bank s average book value per share growth rate was 32. Asset turnover salesassets 6 investors 5 4 creditors 3 hdfc icici 2 manager 1 0 mar08 mar09 mar10 mar11 mar12 8. Nov 06, 2012 pricetoearnings ratio it is a valuation ratio of a companys current share price compared to its per share earnings pe ratio average stock priceearning per share the pe ratio for hdfc.

Hdfc life insurance company balance sheets, financial. Financial ratios analysis in determination of bank performance in the german banking sector. Responsibility csr projects, which are guided by our csr policy. The bank, through various collaborative efforts, provides free sms advice on weather, cropping and harvesting. Over the last ten years, hdfc bank has grown at a compounded annual growth rate of 29.

Technical analysis, charts, strength of hdfc bank hdfcbank. Further, hdfc bank digitized payments at over 1,200 milk cooperatives across the nation. Fundamental analysis can help uncover companies with valuable assets, a strong balance sheet, stable earnings, and staying power. The bank has also been named best domestic bank in india in the asset triple a country awards 2005. It is arrived at by dividing the net profit by average assets, which is the average of total assets in the current year and previous year. Pdf the global growth continued to remain sluggish in every year. The profile has been compiled to bring to you a clear and an unbiased view of the companys key strengths and weaknesses and the potential opportunities and threats. Itc ltd itc was incorporated on august 24, 1910, under the name imperial tobacco company of india ltd. Ratio of net profit to total deposit has been decreased in last year by. It shows that the firm had not sufficient liquid assets. As at march 31, 2018, the total number of banking outlets and atms were 4,787 and 12,635 respectively. Over the last few years, several parts of the country have been severely.

Npa in icici bank and hdfc bankhave made an attempt to study the nonperforming assets of icici and hdfc bank. Download as doc, pdf, txt or read online from scribd. Ratio analysis of hdfc final free download as word doc. Project report on ratio analysis of sbi pdf state bank of indiaratio analysis. Analysis of financial performance of banks in india. Interfirm comparison ratio analysis not only throws the light on the.

Ratio analysis hdfc bank ltd financial performance ratios. Fundamental analysishdfc bankequity research report. Pdf this study has been carried out to evaluate the financial performance. Hdfc bank has committed to maintaining excellent financial records since its existence. There is no significant difference between cost to income ratio of pnb and hdfc bank. The evebitda ntm ratio of hdfc bank limited is significantly lower than its historical 5 year average. During the past 3 years, the average book value per share growth rate was 20. It has taken steps pertaining to delinquency management like rootcause analysis of critical.

Hdfc bank yearly results, hdfc bank financial statement. Capital structure ratio years 2011 2012 20 debtequity 0. For the quarter ended march 2020, hdfc bank has posted a net profit of rs 69 bn up 17. Independent auditors report for consolidated financial statements. At hdfc bank ratio analysis is equally useful for assessing the long term. Hdfc bank key financial ratios, hdfc bank financial statement. Review of literature many studies have undertaken by researchers on the performance of indian commercial banking. In the next year it has shown improvement when the bank spent. At hdfc bank ratio analysis is equally useful for assessing the long term viability of a firm. The hdfc bank was incorporated on august 1994 by the name of hdfc bank limited, with its registered office in mumbai, india. Get hdfc bank latest key financial ratios, financial statements and hdfc bank detailed profit and loss accounts. Review of literature 21 bharathi pathak 2003 18 makes a study of the financial operations of new generation private sector banks in india. Responsiveness awards 2005 named the bank most customer responsive company banking and financial services. Hdfc bank profit and loss reports the economic times.

Hdfc was amongst the first to receive an in principle approval from the reserve bank of india rbi to set up a. Strength is based on deep analysis, back testing and historical trend analysis using machine learning. On the other hand, the ratio which represent the result less than 1. As of june 30, 2019, it had 5, branches and,395 automated teller machines in 2,764 citiestowns. Technical strength is currently calculated around around 5 to 6 pm. The inventory of the firm in the first year has been sold very slow. A project report on financial performance based on ratios at hdfc bank. Formed in 1986, capital market publishers india pvt ltd pioneered corporate databases and stock market magazine in india. Analysis of financial statement formal assignment report.

Majid 2005 compared the productive efficiency of islamic and conventional banks in malaysia. Today capitaline corporate database cover more than 35,000 listed and unlisted indian companies. Hdfc banks using comparative analysis for the period. Npa ratio is used to measure the asset quality of the banks loan books. Financial performance of banks is compared in two time periods. So liquidity of hdfc is improved compared to sbi in the last 3 years. A financial ratio is a relative magnitude of two financial variables taken from a businesss financial statements, such as sales, assets, investments and share.

The book value is essentially the tangible accounting value of a firm compared to the market value that is shown. Apr 22, 2020 the balance sheet page of hdfc life insurance company ltd. Nothing eats away at a bank s profits more than loan loss provisions. Hdfc bank began operations in 1995 with a simple mission. If the npa ratio for the last 10 years stays below 1% then that is a sign of good management. The bank has consistently been a part of several social security schemes launched by the government, and is now recognized as a leader among the private sector banks involved in pradhan mantri jeevan jyoti bima yojana, pradhan mantri suraksha bima yojana and atal pension yojana. Founder of hdfc hasmukh bhai parekh in 1956 he began his financial affairs. Company, including debt equity ratio, turnover ratio etc.

Rediff moneywiz, the personal finance service from equips the user with tools and information in the form of graphs, charts, expert advice, and more to stay uptodate and make informed decisions. Latest technologies and standards are constantly being adopted to keep the database userfriendly, comprehensive and uptodate. During the past 5 years, the average book value per share growth rate was 19. Were convergence of financial institution in to bank and 1 was due other. Jan 25, 2019 financial ratios are widely used to analyze a bank s performance, specifically to gauge and benchmark the bank s level of solvency and liquidity. Financial statements are prepared primarily for decisionmaking. Hdfcbank pe ratio explanation the pe ratio can be viewed as the number of years it takes for the company to earn back the price you pay for the stock.

Business insights one of the most obvious, but less tangible, rewards of fundamental analysis is the development of a thorough understanding of the business. There are no respondents in hdfc in age group 55 and older whereas 10 respondents are in same age group from sbi. It is more in the case sbi in first 2 years and hdfc dominated in the last 3 years. Since it looks at the average over the last 10 years, shiller pe ratio is also called pe10. Liquidity ratio of the firm is not better liquidity position in over the five years. Hdfc was amongst the first to receive an in principle approval from the reserve bank. The service sector has been in the drivers seat registering cagr of 8% in the last. Dec 08, 2012 a study on financial analysis of hdfc bank 1. Ratio analysis was applied to analyze and compare the trends in banking business and financial performance.

Hdfc bank annual reports financial statements of hdfc bank. Npa are those assets for which interest is overdue for more than 3 months. And there is an increase in the movement of the inventories but it slightly decreased in the last year. So goodwill of sbi comparatively more by the next years. The fundamental goals of the study are to assess the financial performance of icici bank and hdfc bank. Hdfc bank balance sheets, financial statements the. Scheduled commercial banking sector by using data from the past ten years 2001.

Figures of the previous periods have been regrouped reclassified wherever necessary to conform to current periods classification. Financial appraisal international journal of engineering and. Proportion analysis was connected to dissect and think about the. Price to book value is a valuation ratio that is measured by stock price book value per share. Ratios of sbi and hdfc bank does not differ significantly. A debt to equity ratio of 5 means that debt holders have a 5 times more claim on assets than equity holders. This metric is considered a valuation metric that confirms whether the earnings of a company justifies the stock price. For fy 2017, hdfc banks net interest margins stood at a healthy 4. During the past 10 years, the average book value per share growth rate was 17. Have a look at hdfc banks annual reports for latest and all the past years. The price to earnings ratio pe ratio is calculated by taking the stock price eps ttm. Read on for a complete analysis of hdfc bank s quarterly results. Retail banking, project and corporate finance, working capital finance.

Stock analysis of hdfc bank,strength, birds eye view. Company report financial statement analysis of hdfc bank. Hdfc bank key financial ratios, hdfc bank financial. Comparison was based on the past 5 years from financial year 201011 to financial year 201415. Hdb pe ratio explanation the pe ratio can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. There isnt necesarily an optimum pe ratio, since different industries will have different ranges of pe ratios. Since, both the banks belong to the private sector of the indian banking industry, they aimed. Pdf financial ratios analysis in determination of bank. It is found that profit before provisions to total funds ratio of sbi and hdfc bank moved in negative direction over the study period. Npa ratio is used to measure the asset quality of the bank s loan books. Have a look at hdfc bank s annual reports for latest and all the past years.

Five banks indusind bank, centurion bank, hdfc bank, icici bank and uti bank are taken up for financial analysis for a period of five years from 199697 to 200001. The current company valuation of hdfc bank limited is therefore way below its valuation average over the last five years. Mean and compound growth rate cgr have also been deployed to analyze the trends in banking business profitability. Hdfc bank ltd balance sheet financials capital market. Leverage ratio indicating the relative proportion of shareholders equity and debt used to finance a companys assets. Ratio analysis of hdfc final equity finance banks scribd. Hdfc bank consolidated december 2019 net interest income nii at rs 15,127.