TABLE OF CONTENT

S.NO. CONTENTS PAGE NO.

1. Introduction 6-14
2. Review of Literature 15-17
3. Objectives 18-19
4. Research Methodology 20-23
5. Data Analysis and Interpretation 24-34
6. Findings and Suggestions 35-36
7. Limitations 37-38
8. Conclusions 39-40
9. Bibliography 41-42
10. Annexure 43-50

1
 CHAPTER-1
INTRODUCTION

2
INTRODUCTION
Leverage is used to describe the firm’s ability to use fixed cost assets or funds to magnify the
return to its owners. James van Home has defined leverage, as “the employment of an asset or
funds for which the firm pays a fixed cost or fixed return.” In other words, Leverage is the
employment of fixed assets or funds for which a firm has to meet fixed costs or fixed rate of
interest obligation irrespective of the level of activities or the level of operating profit.

When a firm uses fixed assets, it Results in fixed operating costs. Similarly, when a firm uses
those sources of finance in its capital structure on which it is required to pay fixed cost or fixed
rate of interest, it results in fixed financial costs. Higher is the degree of leverage higher is the
risk and higher is the expected return and vice versa.

The leverage can be favorable or unfavorable as the fixed cost or return has to be paid
irrespective of the volume of sales, the amount of such cost or return has a significant effect on
the profits available for equity shareholders.

3
Types of Leverage Analysis:

Operating Leverage
Operating Leverage is defined as “the firm’s ability to use fixed operating costs to magnify
effects of changes in sales on its earnings before interest and taxes”. In other words operating
leverage is the tendency of the operating profit to vary disproportionately with sales. It is said to
exist when a firm has to pay fixed cost regardless of volume of output or sales.

The operating leverage shows the relationship between the changes in sales and the changes in
fixed operating income. Thus, the operating leverage has an impact mainly on fixed costs and
also on variable costs and contribution. Of course, there will be no operating leverage if there are
no fixed operating costs.

The operating leverage can be calculated by adopting the following formula:

Financial Leverage
The financial leverage is defined as the ability of a firm to use fixed financial charges to magnify
the effects of changes in operating profits, on the firm’s earning per share. In other words, the
financial leverage is the tendency of a residual net income to vary disproportionately with
operating profit. It indicates the change that takes place in the taxable income as a result of
change in the operating income.

The financial leverage can be computed by adopting the following formula:

4
Combined Leverage
The operating leverage explains the operating risk and financial leverage explains the financial
risk of the firm. However, a firm has to look into overall risk or total risk of the firm i.e.,
operating risk as well as financial risk. Hence, if we combine the operating risk and financial
risk, the result is combined leverage. Combined leverage thus expresses the relationship between
revenue on account of sales and the taxable income.

The combined leverage can be computed by adopting following formula:

5
COMPANY PROFILE

6
7
8
 HDFC BANK

HDFC Bank, a subsidiary of the Housing Development Finance Corporation, was founded in
1994 and is headquartered in Mumbai, Maharashtra, India.Manmohan Singh, the then Union
Finance Minister, launched the company's first corporate headquarters and a full-service
branch at Sandoz House in Worli.The bank's distribution network had 5,500 branches in 2,764
cities as of 30 June 2019. In fiscal year 2017, it installed 430,000 point - of - sale terminals
and issued 23,570,000 debit cards and 12 million credit cards. As of March 21, 2020, it had
1,16,971 permanent employees.

VISION

To be the premiere financial partner in ensuring sustainable housing and living standards.

MISSION

Committed to provide financial solutions for sustainable living and assist entrepreneurs
in value additional.

VALUE

The goal of HDFC Bank is to become a world - class Indian bank. It aims to accomplish two
things: First and foremost, to be the preferred banking service provider for the target retail and
wholesale customer categories. The second goal is to generate profitable growth that is in line
with the bank's risk appetites. The bank is dedicated to upholding the highest ethical
standards, professional integrity, corporate governance, and regulatory compliance possible.

9
The corporate concept of HDFC Bank is founded on five basic values:

• Customer focus
• Product leadership
• People
• Sustainability
• Operational excellence

Products and Services

HDFC Bank provides a number of products and services such as wholesale banking, retail
banking, treasury, auto loans, two-wheeler loans, personal loans, loans against property,
consumer durable loan, lifestyle loan and credit cards
Whole sale banking
Wholesale banking is the provision of services by banks to larger customers or organizations
such as mortgage brokers, large corporate clients, mid-sized companies, real estate developers
and investors, international trade finance businesses, institutional customers (such as pension
funds and government entities/agencies), and services offered to other banks or other financial
institutions. Wholesale finance refers to financial services conducted between financial
services companies and institutions such as banks, insurers, fund managers, and stockbrokers.

Retail Banking
Retail banking, also known as consumer banking or personal banking, is the provision of
services by a bank to the general public, rather than to companies, corporations or other
banks, which are often described as wholesale banking. Banking services which are regarded
as retail include provision of savings and transactional accounts, mortgages, personal loans,
debit cards, and credit cards. Retail banking is also distinguished from investment banking or
commercial banking. It may also refer to a division or department of a bank which deals with
individual customers.

Credit Cards
Credit card is a payment card issued to users (cardholders) to enable the cardholder to pay a

merchant for goods and services based on the cardholder's accrued debt (i.e., promise to the
10
 card issuer to pay them for the amounts plus the other agreed charges). The card issuer

(usually a bank or credit union) creates a revolving account and grants a line of credit to the
cardholder, from which the cardholder can borrow money for payment to a merchant or as a cash
advance. There are two credit card groups: consumer credit cards and business credit cards. Most
cards are plastic, but some are metal cards (stainless steel, gold, palladium, titanium), and a few
gemstone-encrusted metal cards.

Subsidiaries
1-HDFC SECURITIES

HDFC Securities Limited is a financial services Limited is a financial services intermediary

and a subsidiary of HDFC Bank, a private sector bank in India. HDFC Securities was founded
in the year 2000 and is headquartered in Mumbai with its branches across major cities
and towns in India.

Products and services:

• Equities: Investment in stocks of listed companies.
• Mutual funds: Investment in mutual funds including equity, hybrid, tax saving or
debt schemes from asset management companies.
• SIPs: Systematic investment plan that allows
automated investments.
• IPOs: Investment in initial public offerings (IPO).
• Derivatives: Hedge or speculate on the price movement of stocks or index through
its derivative products.
• Bonds, NCDs and Corporate FDs: Investment in fixed income instruments such as bonds,
NCDs and Corporate FDs

2-HDFC ERGO General Insurance company:

HDFC ERGO is a 51:49 joint venture firm between HDFC International AG, one of the
insurance entities of the Munich Re Group in Germany operating in the insurance field under
the BFSI sectors. The company offers products in the retail, corporate and rural sectors. The
retail sector products are health, motor, travel, home, personal accident and cybersecurity

11
policy. Corporate products include liability, marine and poverty insurance. Rural sector caters
the farmers with crop insurance and cattle insurance.

3- HDFC Financial Services Limited:

HDFC Financial Services, a subsidiary company of HDFC Bank, is one of the biggest Non-
Banking Financial Company (NBFC) in our country who provides a variety of loans and
finance to the people. It is known for providing various easy financial services and loans to
their customers such as:
• Personal loan
• Doctor loan
• New to Credit loan
• Gold loan
• Car loan
• Loan against property
• Loan against insurance policies
• Two-wheeler loans and many more

4- Next Gen Publishing:

Next Gen Publishing Ltd was incorporated in October 2004 and commercial operations from
January 2005 with the promise of offering the finest in the field of publishing. It is a
publishing company created by its parent companies Forbes Group, a subsidiary of Shapoorji
Pallonji Group and HDFC Bank. Its services include the following:
• Print Magazines
• Awards properties

12
13
 CHAPTER – 2

REVIEW OF LITERATURE

REVIEW OF LITERATURE:

A literature review is a description of the literature relevant to a particular field or topic. It gives
an overview of what has been said, who the key writers are, what are the prevailing theories and
hypotheses, what questions are being asked and what methods and methodologies are appropriate
and useful. As such, it is not in itself primary research, but rather it reports on other findings.
Ali Ataullah (2004) Concluded that there is still room for improvement in the efficiency of bank
in both the countries. A step forward for the liberalization programmer, therefore, is not only to
deregulate interest rates and enhance the level of competition but also to strengthen the
institutional structure to support good practices in the banking industry.

Gupta Sumeet&VermaRenu (2008) concluded that management of non-performing assets and

risk emanating from adverse event is the key to higher profitability of the Indian banking.
Transparency and good governance would work as principal guiding force in present scenario.

Dr. Ibrahim Syed M (2011) concluded that this is diagnostic and exploratory in nature and makes
use secondary data. The study finds and concludes that the scheduled commercial bank in India
have significantly improved their operational performance.

Dr. Dhanabhakyam M &Kavitha M. (2012) studied that bank have to re-orient their strategies in
the light of their own strength and the kind of market in which their likely to operate on. In the
perspective of this domestic and international development, the banking sector has to chart
perfect for development. Gupta Shipra (2012) concluded that- Public and Private sector bank
both are giving good service in India. Financial condition of any bank is measured by the help of
financial ratio. A leverage ratio cannot do the job alone it needs to be complemented by other
prudential tools or measures to ensure a comprehensive picture of the buildup of leverage in
individual bank or banking groups as well as in the financial system. Sharma Esha (2012)
concluded that- The liberalized policy of the govt. of India permitted entry to the ICICI in the
banking; the industry has witnessed a generation of private players. That’s why the present paper
special emphasis has been laid down on the financial analysis of the bank by using different
research ant statistical tools. GejalakshamiSandanam& et.al (2012), Concluded that the public
sector bank performed remarkably well during the period than that of the private sector bank the
overall regression analysis show that the financial performance of the banking industries
strongly.

GoelCheenu &Rekhi Bhutani Chitwan (2013) concluded that the analysis supports that new bank
are more efficient than old ones. The public sector bank are as not profitable as other sectors are.
It means that efficiency and profitability are inter related. Sai Naga Radha V & et.al. (2013)
concluded that net profit margin, operating profit margin, return on capital employed, return on
equity and debt equity ratio there is no significant difference in these ratios before after merger.

15
Dr Richa Jain, Prof. Mitali Amit Shelankar & Prof Bharti Sumit Mirchandani, (2015) Tools /
Techniques of financial statement analysis, the various tools and techniques of financial
statement analysis are

 Trend Percentage Analysis: It is also known as Intra firm comparison in which the financial
statements of the same company for few years are compared for some important series of
information.

 Comparative Statement: These are the statement of financial positions at different periods of
time. The financial position is shown in a comparative form over two period of time.

 Common Size Statements: The common size statements, balance sheet and income statements
are shown in terms of percentages. The data is shown as percentage of total assets, liabilities and
sales.

 Ratio Analysis: It is a technique of analysis and interpretation of financial statements. It is the

process of establishing and interpreting various financial ratios for helping in taking decisions.

 Funds Flow Statements: It is a statement of studying the changes in the financial position of a
business enterprise between the beginning and the end it is a statement indicating rises of funds
for a period of time.

 Cash Flow Statements: It shows the changes in cash flow between two periods.

16
 CHAPTER- 3
OBJECTIVES

OBJECTIVES:

• To analysis the leverage of HDFC bank and interpret the outcomes.

17
• To analysis different of ratios in HDFC bank.

18
 CHAPTER - 4
RESEARCH METHODOLOGY

19
RESEARCH METHODOLOGY

Research is a process through which an individual or the researcher helps to search the definite or
useful information from the number of respondents to evaluate or solve the problem-related
questions. In fact, research is an art of scientific investigation or technique. In other words, some
people say that research is a systematized effort to gain knowledge and it is a process of
collecting, evaluating, and interpreting information to answer questions.

Methodology is a set of methods to be employed in a scientific study. In short, research for

knowledge through objective and systematic method of finding solutions of problems is research
methodology. In research methodology, we generally consider what problem is going to be
addressed, what are the objectives and hypothesis of the study and how to conduct the research,
collect data, organize and evaluate the data and reach at logical conclusion. Methodology of
research depends upon the nature of topic to be studied, data to be collected and analyzed,
expertise of researcher on the method etc. Therefore, research methodology relates to the
application of appropriate analytical tool and techniques in order to arrive at the conclusion.

RESEARCH DESIGN:

The purpose of the methodology is to design the research procedure. This includes the overall
design, the sampling procedure, the data collection method and analysis procedure. Marketing
research is the systematic gathering recoding and analyzing of data about problem retaining to
the marketing of goods and services. The essential purpose of marketing research is to provide
information, which will facilitate the identification of an opportunity of problem situation and to
assist manager in arriving at the best possible decisions when such situations are encountered.

Basically there are two types of researches, which according to their applicability, strength,
weaknesses, and requirements used before selecting proper type of research, their suitability
must be seen with respect to a specific problem two general types of researches are exploratory
and conclusive.

20
Conclusive Research: It is also known as quantitative research; it is designed to help executives
of action that is to make decision. When a marketing executive makes a decision are course of
action is being selected from among a number of available. The alternatives may be as few as
two or virtually infinite.

They may be well defined or only vaguely glimpsed. Conclusive research provides information,
which helps the executives make a rational decision. In some instances, particularly if any
experiment is run, the research may come close to specifying the precise alternatives to choose,
in their cases especially with descriptive studies the research will only particularly clarify the
situation and much will be left to the executive’s judgment.

The characteristic features of research are as follows:

➢ Flexible Design

➢ Non-Probability Sampling Design

➢ No pre-planned design for analysis

➢ Unstructured instruments for collection of data

➢ No fixed decisions about the operational procedures

21
Secondary Data
Secondary data analysis can save time that would otherwise be spent collecting data and,
particularly in the case of quantitative data, can provide larger and higher-quality databases
that would be unfeasible for any individual researcher to collect on their own. In addition,
analysts of social and economic change consider secondary data essential, since it is
impossible to conduct a new survey that can adequately capture past change and/or
developments. However, secondary data analysis can be less useful in marketing research,
as data may be outdated or inaccurate.

Secondary data refers to data that is collected by someone other than the primary user.
Common sources of secondary data for social science include censuses, information collected
by government departments, organizational records, and data that was originally collected for
other research purposes. Primary data, by contrast, are collected by the investigator
conducting the research.

There are various secondary sources of data collection. Some of these include –

22
• Books, Magazines, and Newspapers – Newspapers, and magazines also carry out surveys
and interviews of their own on various aspects like socio-economic conditions, crimes in
the country, etc.

• Reports – Industries and trade associations also publish reports periodically which
contain data regarding trade, production, exports, imports, and the like. The information
in these reports will facilitate different types of secondary research

• Publications by Renowned Organizations – Organizations like WHO, ICMR, and other

renowned national and international bodies carry out timely surveys and case studies of
their own which they then publish on their websites. The data and statistics in these
surveys can be accessed by almost everyone by visiting their official website

• Research Articles – Several websites publish research papers by scholars and scientists
from respective fields like medicine, finance, economics, etc., which act as secondary
data information.

• Government Data – Data released by the government of any country is one of the largest
sources of secondary data. Sometimes, the central or state government sets up committees
to look into some issues. These committees publish reports based on their investigation,
which function as a valuable source of secondary data. three financial years i.e., 2020-21
and 2021-22.

Tools for analysis

➢ Bar chart (Bar charts will be used for comparing two or more values that will be taken
over time or on different conditions, usually on small data set)

➢ Pie-chart (Circular chart divided in to sectors, illustrating relative magnitudes or

frequencies).

23
 CHAPTER – 5
DATA ANALYSIS AND
INTERPRETATION

24
Profitability Ratio

This ratio shows the earning ability of organization. The operating efficiency of the firm and its
ability to ensure adequate return to its shareholders depends ultimately on the profits earned by it.
The profitability of the firm can be measured by its profitability ratio.

Operating Profit Margin

The operating margin measures how much profit a company makes on a dollar of sales after
paying for variable costs of production, such as wages and raw materials, but before paying
interest or tax. It is calculated by dividing a company’s operating income by its net sales. Higher
ratios are generally better; illustrating the company is efficient in its operations and is good at
turning sales into profits.
The formula for operating margin is:

OPERATING PROFIT MARGIN =

Year 2020-2021 2021-2022 2022-2023

RATIO 11.38 -3.50 5.58

7.00

6.00

5.00

4.00

3.00

2.00

1.00

0.00
2020-21 2021-22 2022-23

Operating profit ratio

25
Return on Assets (ROA)

The term return on assets (ROA) refers to a financial ratio that indicates how profitable a
company is in relation to its total assets. Corporate management, analysts, and investors can use
ROA to determine how efficiently a company uses its assets to generate a profit.

The metric is commonly expressed as a percentage by using a company's net income and its
average assets. A higher ROA means a company is more efficient and productive at managing its
balance sheet to generate profits while a lower ROA indicates there is room for improvement.

Return on assets =

Year 2020-2021 2021-2022 2022-2023

RATIO 0.72 1.31 1.65

00
2020-21 2021-22 2022-23

Return on assets

26
Leverage Ratio
A leverage ratio is any one of several financial measurements that look at how much capital
comes in the form of debt (loans) or assesses the ability of a company to meet its financial
obligations. The leverage ratio category is important because companies rely on a mixture of
equity and debt to finance their operations, and knowing the amount of debt held by a
company is useful in evaluating whether it can pay off its debts as they come due.

Debt-to-Equity Ratio=

Year 2020-2021 2021-2022 2022-2023

RATIO 0.00 0.00 0.00

1.00

0.90

0.80

0.70

0.60

0.50

0.40

0.30

0.20

0.10
0.00 0.00 0.00
0.00
2020-21 2021--22 2022-23
22
Series 1 Column2 Column1

27
Fixed Asset Turnover Ratio

The fixed asset turnover ratio (FAT) is, in general, used by analysts to measure operating
performance. The fixed asset balance is used as a net of accumulated depreciation. A higher
fixed asset turnover ratio indicates that a company has effectively used investments in fixed
assets to generate sales.

FIXED ASSETS TURNOVER RATIO =

Year 2020-2021 2021-2022 2022-2023

RATIO 0.09 0.08 0.07

0.10
0.09
0.08
0.07
0.06
Axis
Title

0.05
0.04
0.03
0.02
0.01
0.00
2021 2022 2023

Fixed Asset Turnover Ratio

Liquidity Ratios
Liquidity ratios are an important class of financial metrics used to determine a debtor's ability to
pay off current debt obligations without raising external capital. Liquidity ratios measure a
company's ability to pay debt obligations and its margin of safety through the calculation of
metrics including the current ratio, quick ratio, and operating cash flow ratio .

28
Current Ratio= Current Liabilities /Current Asset

The Current Ratio

The current ratio measures a company's ability to pay off its current liabilities (payable within
one year) with its total current assets such as cash, accounts receivable, and inventories. The
higher the ratio, the better the company's liquidity position:

Year 2020-2021 2021-2022 2022-2023

RATIO 0.80 0.63 1.02

The Quick Ratio

The quick ratio measures a company's ability to meet its short-term obligations with its most
liquid assets and therefore excludes inventories from its current assets. It is also known as
the acid-test ratio:

Quick Ratio = "Quick Assets" / Current Liabilities

Year 2020-2021 2021-2022 2022-2023

RATIO 16.62 17.58 18.77

29
 19.00

18.50

18.00

17.50

17.00

16.50

16.00

15.50
2020-21 2021-22 2022-23
Series 1 Column2 Column1

The Quick Ratio

Payout Ratio:

The payout ratio is a financial metric showing the proportion of earnings a company pays its
shareholders in the form of dividends, expressed as a percentage of the company's total earnings.
On some occasions, the payout ratio refers to the dividends paid out as a percentage of a
company's cash flow. The payout ratio is also known as the dividend payout ratio.

Dividend Payout Ratio

The dividend payout ratio is the ratio of the total amount of dividends paid out to shareholders
relative to the net income of the company. It is the percentage of earnings paid to shareholders
via dividends. The amount that is not paid to shareholders is retained by the company to pay off
debt or to reinvest in core operations. It is sometimes simply referred to as simply the payout
ratio.

Dividend Payout Ratio=

Year 2020-2021 2021-2022 2022-2023

RATIO 0.00 2.00 5.00

30
 Dividend Payout Ratio

Earning Retention Ratio

The retention ratio is the proportion of earnings kept back in the business as
retained earnings. The retention ratio refers to the percentage of net income that
is retained to grow the business, rather than being paid out as dividends. It is the
opposite of the payout ratio, which measures the percentage of profit paid out to
shareholders as dividends. The retention ratio is also called Earning

Retention Ratio =

Year 2020-2021 2021-2022 2022-2023

RATIO 75.10 100 100

31
CASA Ratio
CASA stands for current account Savings account. And CASA ratio is the ratio of deposits in
savings and current accounts to the total deposit in the bank. The more the ratio value, the better

Year 2020-2021 2021-2022 2022-2023

RATIO 10.60 46.28 48.69

32
CASH EARNINGS PER SHARE

Cash earnings per share (cash EPS), or more commonly called operating cash flow, is a financial
performance measure comparing cash flow to the number of shares outstanding. Cash EPS
differs from the more popular net profit measure, earnings per share (EPS), which compares net
income.

Year 2020-2021 2021-2022 2022-2023

RATIO 13.72 24.96 35.27

70.00

60.00

50.00

40.00

30.00

20.00

10.00

0.00
2020--21 2021-22 2022-23
21

33
 Chapter- 6
FINDINGS AND
SUGGESTIONS

34
 FINDINGS

 Profit before tax of the year ended March 31,2022 (FY2022) was Rs.5,117crore (US$
1,009),compared to Rs.5,056 crore (US$ 997 million) for the year ended March 31,2021
(FY2021).

 The Net Interest Margin (NIM) has been fluctuating from the range of 3.85% to 4.05% in
the last 5 fiscal years. Currently, it stands at 3.82% as of FY221-22.
 RoA has been more or less constant for the company, currently at 1.89%, which is a very
positive sign.

 Operational Ratios
 Gross NPA for the bank has fallen from FY21 (1.36) to 1.26, which a positive sign for
the company. A similar improvement is also visible in the Net NPA, currently standing at
0.36.
 The CASA ratio for the bank is 42.23%, which has been seeing a continuous fall since
FY20 (48.03%). However, there has been a spike rise in FY21 as in FY22, it was 43.25
and in FY20, again came to the almost same level of 43.5. o
 In FY19, Advance Growth witnessed a massive spike from 18.71 level in FY120 rising to
o 24.47%.

SUGGESTIONS

 Bank should try to finance more and more projects. Financing will help it to earn higher
profit.

 To achieve the objective of Rural development it should open more and more branchesin
different rural areas of the country.it will facilitate in providing help to rural poor
farmers and other living below the poverty line.Bank can appoint commission agents for
different area who can encourage genral public to invest in the capital of the bank and
make more deposits in HDFC BANK.

 Though the bank has been successful in increasing deposits but to further improve upon
such situation it can introduce some new and attractive schemes for public. Such
schemes can be in the form of higher rate of interest and short maturity period for FD`s
etc.

 The expense to income ratio seems stagnant (82 to 85%) in these 3 years. The synergy of
large scale operations may need to be looked into.

 Last but no least, bank should adopt branch automation experiments to control the
operational cost

35
CHAPTER - 7
LIMITATIONS

36
Limitations of the study

1. The study is restricted only the Three financial years i.e. 2020-21, 2021-22 and 2022-23.
2. The study completely based on secondary data and the accuracy of the analysis depends
on the data obtained.

3. This study may not be extensive enough to cover all the ratios to be considered in
evaluating the financial soundness of the bank accurately.

37
 Chapter - 8
CONCLUSION

38
CONCLUSION

 HDFC bank has positioned itself as a bank which gives higher standard of services
through product innovation for the diverse need of individual and corporate clients.

 Overall Prospects of the bank looks good. HDFC is doing well in its performance.

 To maintain the same position in market it as to concentrate on liquidity position and

make the investment in good class of asset to earn more returns.

 HDFC should also concentrate highly on expenses which is increasing year by year
which would lead to decrease in the profitability of the firm.

 We have analysis that financial ratio from beginning of each month for all the assets in
the year 2020-21, 2021-22 and 2022-23.

39
 Chapter – 9
BIBOLOGRAPHY

40
BIBOLOGRAPHY

Books:
 Financial & Management Accounting By TS Reddy & Dr.Y.Hari Prasad Reddy

 Principles and practice of management by Prasad L M (Author)

Websites:
● www.google.com

● www.HDFC bank.com

● www.moneycontrol.com

41
CHAPTER -10
ANNEXURE

42
BALANCE SHEET OF HDFC MAR 23 MAR 22 MAR 21
BANK (in Rs. Cr.)

12 months 12 months 12 months

EQUITIES AND
LIABILITIES

SHAREHOLDER'S FUNDS

Equity Share Capital 1,389.97 1,383.41 1,294.76

TOTAL SHARE CAPITAL 1,389.97 1,383.41 1,294.76

Revaluation Reserve 3,195.66 3,093.59 3,114.87

Reserves and Surplus 165,659.93 143,029.08 112,091.29

Total Reserves and Surplus 168,855.59 146,122.67 115,206.16

TOTAL SHAREHOLDERS 170,511.97 147,509.19 116,504.41

FUNDS

Deposits 1,064,571.61 932,522.16 770,968.99

Borrowings 107,231.36 91,630.96 162,896.76

Other Liabilities and Provisions 68,982.79 58,770.37 47,994.99

TOTAL CAPITAL AND 1,411,297.74 1,230,432.68 1,098,365.15

LIABILITIES

ASSETS

Cash and Balances with Reserve 60,120.82 46,031.19 35,283.96

Bank of India
43
Balances with Bank Money at 107,701.54 87,097.06 83,871.78
Call and Short Notice
BALANCE SHEET OF 2020-21, 2021-22, 2022-23

STATEMENT OF RATIOS OF YEARS 2020-21, 2021-22, 2022-23

RATIOS

KEY MAR 23 MAR 22 MAR 21

FINANCIA
L RATIOS
OF HDFC
BANK (in
Rs. Cr.)

PER
SHARE
RATIOS

Basic EPS 33.66 24.01 12.28

(Rs.)

Diluted 32.98 23.67 12.08

EPS (Rs.)

Cash EPS 35.27 24.96 13.72

(Rs.)

44
Book Value 240.75 208.78 175.15
[Excl.
Reval
Reserve]/S
hare (Rs.)

Book Value 245.35 213.25 179.96

[Incl. Reval
Reserve]/S
hare (Rs.)

Dividend/ 5.00 2.00 0.00

Share (Rs.)

Operating 124.28 114.38 115.54

Revenue /
Share (Rs.)

Net 33.58 23.41 12.25

Profit/Shar
e (Rs.)

PER
EMPLOYE
E RATIOS

Interest 8,160,551. 8,011,976. 7,531,118.

Income/ 87 81 58
Employee
(Rs.)

Net Profit/ 2,205,083. 1,639,765. 798,519.16

Employee 96 48
(Rs.)

Business/ 181,738,41 168,734,30 142,596,98

Employee 2.40 3.89 1.88

45
(Rs.)

PER
BRANCH
RATIOS

Interest 159,421,45 150,243,58 140,492,70

Income/ 6.63 3.36 5.86
Branch
(Rs.)

Net Profit/ 43,077,686 30,749,495 14,896,341

Branches .78 .06 .85
(Rs.)

Business/ 3,550,372, 3,164,168, 2,660,140,

Branches 927.65 725.60 804.47
(Rs.)

KEY
PERFORM
ANCE
RATIOS

ROCE (%) 2.92 3.10 2.67

CASA (%) 48.69 46.28 45.11

Net Profit 27.02 20.46 10.60

Margin (%)

Operating 5.58 -3.50 -11.38

Profit
Margin (%)

46
Return on 1.65 1.31 0.72
Assets (%)

Return on 13.94 11.21 6.99

Equity /
Networth
(%)

Net 3.36 3.16 3.02

Interest
Margin (X)

Cost to 40.65 42.57 45.79

Income (%)

Interest 6.12 6.43 6.80

Income/Tot
al Assets
(%)

Non- 1.31 1.54 1.49

Interest
Income/Tot
al Assets
(%)

Operating 0.34 -0.22 -0.77

Profit/Total
Assets (%)

Operating 1.89 1.75 1.96

Expenses/
Total
Assets (%)

Interest 2.75 3.26 3.78

Expenses/

47
Total
Assets (%)

VALUATIO
N RATIOS

Enterprise 1,619,193. 1,380,175. 1,108,657.

Value (Rs. 56 57 40
Cr)

EV Per Net 18.75 17.44 14.82

Sales (X)

Price To 3.03 2.78 1.85

Book Value
(X)

Price To 5.88 5.08 2.81

Sales (X)

Retention 94.06 100.00 100.00

Ratios (%)

Earnings 0.05 0.04 0.04

Yield (X)

48
49