Ratio analysis of hdfc bank for last 5 years pdf

Analysis of financial performance of banks in india. Financial performance of banks is compared in two time periods. 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. Hdfc bank limited was founded in 1994 and is based in mumbai, india.

Hdfc bank balance sheets, financial statements the. If the npa ratio for the last 10 years stays below 1% then that is a sign of good management. Independent auditors report for consolidated financial statements. 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. Moreover, it determines the ability of the bank to meet its current obligations, its operating efficiency and its performance. Since, both the banks belong to the private sector of the indian banking industry, they aimed. 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. Scheduled commercial banking sector by using data from the past ten years 2001. Proportion analysis was connected to dissect and think about the. The fundamental goals of the study are to assess the financial performance of icici bank and hdfc bank.

Table 5 clearly explains that longterm solvency of the company. Hdfc bank profit and loss reports the economic times. The service sector has been in the drivers seat registering cagr of 8% in the last. Financial statements are prepared primarily for decisionmaking. The inventory of the firm in the first year has been sold very slow. 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. 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. A financial ratio is a relative magnitude of two financial variables taken from a businesss financial statements, such as sales, assets, investments and share. It is more in the case sbi in first 2 years and hdfc dominated in the last 3 years. Ratios of sbi and hdfc bank does not differ significantly. Hdfc bank annual reports financial statements of hdfc bank. A project report on financial performance based on ratios at hdfc bank. Latest technologies and standards are constantly being adopted to keep the database userfriendly, comprehensive and uptodate.

The evebitda ntm ratio of hdfc bank limited is significantly lower than its historical 5 year average. Technical strength is currently calculated around around 5 to 6 pm. Hdfc bank began operations in 1995 with a simple mission. Review of literature noulas and ketkar 1996 conducted a study to examine the technical and scale efficiency of banks.

Pdf the global growth continued to remain sluggish in every year. Liquidity ratio of the firm is not better liquidity position in over the five years. Npa ratio is used to measure the asset quality of the banks loan books. Analysis of financial position and performance of public and private.

Over the last ten years, hdfc bank has grown at a compounded annual growth rate of 29. 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. This metric is considered a valuation metric that confirms whether the earnings of a company justifies the stock price. Interfirm comparison ratio analysis not only throws the light on the. Hdfc bank key financial ratios, hdfc bank financial statement. Comparison was based on the past 5 years from financial year 201011 to financial year 201415. As at march 31, 2018, the total number of banking outlets and atms were 4,787 and 12,635 respectively. During the past 3 years, the average book value per share growth rate was 20. At hdfc bank ratio analysis is equally useful for assessing the long term viability of a firm. Hdfc bank consolidated december 2019 net interest income nii at rs 15,127. It shows that the firm had not sufficient liquid assets. 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. In 1975, the company entered the hospitality business with t.

Over the last 5 years, revenue has grown at a yearly rate of 19. 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. Since it looks at the average over the last 10 years, shiller pe ratio is also called pe10. So liquidity of hdfc is improved compared to sbi in the last 3 years.

Over the last few years, several parts of the country have been severely. Mean and compound growth rate cgr have also been deployed to analyze the trends in banking business profitability. Were convergence of financial institution in to bank and 1 was due other. Review of literature 21 bharathi pathak 2003 18 makes a study of the financial operations of new generation private sector banks in india. 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. Responsiveness awards 2005 named the bank most customer responsive company banking and financial services. Review of literature many studies have undertaken by researchers on the performance of indian commercial banking. During the past 12 months, hdfc bank s average book value per share growth rate was 32. Ratio of net profit to total deposit has been decreased in last year by. Hdfc bank key financial ratios, hdfc bank financial. The hdfc bank was incorporated on august 1994 by the name of hdfc bank limited, with its registered office in mumbai, india.

Hdfc was amongst the first to receive an in principle approval from the reserve bank. Ratio analysis of hdfc final equity finance banks scribd. 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 debt to equity ratio of 5 means that debt holders have a 5 times more claim on assets than equity holders. Business insights one of the most obvious, but less tangible, rewards of fundamental analysis is the development of a thorough understanding of the business. Share price, corporate actions, valuation, research report, financials and more complete track record of hdfc bank ltd from indias independent mutual fund research house. For fy 201617, hdfc bank disbursed a total amount of. 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. During the past 10 years, the average book value per share growth rate was 17. Stock analysis of hdfc bank,strength, birds eye view.

This study has been carried out to evaluate the financial performance of hdfcbank. At hdfc bank ratio analysis is equally useful for assessing the long term. Its current market capitalisation stands at rs 518718. Financial ratios analysis in determination of bank performance in the german banking sector. Further, hdfc bank digitized payments at over 1,200 milk cooperatives across the nation. The book value is essentially the tangible accounting value of a firm compared to the market value that is shown. Hdfc bank fact sheet, hdfc bank financial results equitymaster.

Hdfcbank s earnings are forecast to decline next year, so we cant calculate its peg ratio. It is found that profit before provisions to total funds ratio of sbi and hdfc bank moved in negative direction over the study period. The price to earnings ratio pe ratio is calculated by taking the stock price eps ttm. Fundamental analysishdfc bankequity research report. Download as doc, pdf, txt or read online from scribd. View the latest hdb financial statements, income statements and financial ratios. Founder of hdfc hasmukh bhai parekh in 1956 he began his financial affairs. Get hdfc bank latest key financial ratios, financial statements and hdfc bank detailed profit and loss accounts. The study is to assess the monetary execution of icici bank and hdfc bank. Ratio analysis was applied to analyze and compare the trends in banking business and financial performance.

It has taken steps pertaining to delinquency management like rootcause analysis of critical. Hdfc was amongst the first to receive an in principle approval from the reserve bank of india rbi to set up a. Capital structure ratio years 2011 2012 20 debtequity 0. To study and compare the financial performance of pnb and hdfc bank through ratios analysis. Company, including debt equity ratio, turnover ratio etc. Ratio analysis hdfc bank ltd financial performance ratios. Have a look at hdfc banks annual reports for latest and all the past years. Ratio analysis of hdfc final free download as word doc. Strength is based on deep analysis, back testing and historical trend analysis using machine learning.

In the next year it has shown improvement when the bank spent. Hdfc bank yearly results, hdfc bank financial statement. There is no significant difference between cost to income ratio of pnb and hdfc bank. According to these financial ratios hdfc bank limiteds valuation is way below the market valuation of its sector. Dec 08, 2012 a study on financial analysis of hdfc bank 1.

Itc ltd itc was incorporated on august 24, 1910, under the name imperial tobacco company of india ltd. Npa in icici bank and hdfc bankhave made an attempt to study the nonperforming assets of icici and hdfc bank. 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. A project report on financial performance based on ratios at. Company report financial statement analysis of hdfc bank.

Financial appraisal international journal of engineering and. Technical analysis, charts, strength of hdfc bank hdfcbank. Analysis of financial statement formal assignment report. For the quarter ended march 2020, hdfc bank has posted a net profit of rs 69 bn up 17. The current company valuation of hdfc bank limited is therefore way below its valuation average over the last five years. For fy 2017, hdfc bank s net interest margins stood at a healthy 4. Figures of the previous periods have been regrouped reclassified wherever necessary to conform to current periods classification. Fundamental analysis can help uncover companies with valuable assets, a strong balance sheet, stable earnings, and staying power.

Asset turnover salesassets 6 investors 5 4 creditors 3 hdfc icici 2 manager 1 0 mar08 mar09 mar10 mar11 mar12 8. Hdfc life insurance company balance sheets, financial. During the past 5 years, the average book value per share growth rate was 19. And there is an increase in the movement of the inventories but it slightly decreased in the last year.

There isnt necesarily an optimum pe ratio, since different industries will have different ranges of pe ratios. So goodwill of sbi comparatively more by the next years. Read on for a complete analysis of hdfc bank s quarterly results. Responsibility csr projects, which are guided by our csr policy. For fy 2017, hdfc banks net interest margins stood at a healthy 4. Project report on ratio analysis of sbi pdf state bank of indiaratio analysis. Have a look at hdfc bank s annual reports for latest and all the past years. Pdf this study has been carried out to evaluate the financial performance. Today capitaline corporate database cover more than 35,000 listed and unlisted indian companies.

Npa are those assets for which interest is overdue for more than 3 months. As of june 30, 2019, it had 5, branches and,395 automated teller machines in 2,764 citiestowns. Nothing eats away at a bank s profits more than loan loss provisions. Retail banking, project and corporate finance, working capital finance. Pdf financial ratios analysis in determination of bank. Hdfc bank has committed to maintaining excellent financial records since its existence.