BIG BIG EIGHT PRIVATE BANKS IN INDIA

[BANKS WITH TOTAL ASSETS OF

MORE THAN ₹ 3 TRILLION AS ON
31-MARCH-2024]
COMPARISON - FINANCIAL
AND OTHER PARAMETERS–
FIVE-YEARS FY2020 to FY2024
+ Q1 FY2025
Net Interest Income = Interest Income – Interest Expenses for the period
Interest Income includes income from all Advances, Investment, Interbank Lending,
Standing Deposit Facility with RBI, Reverse Repo etc. Interest Expenses on the other hand
include interest on Deposits and Interest on all types of Borrowings including Bonds, Call
Borrowings, Repo / MSF etc.
Other Income : Income by way of Commission, Exchange Profit, Rent on Lockers,
Income from Marketing and Distribution of Third Party products – It includes all
incomes other than Interest Income
Net Revenue = Net Interest Income + Other Income
This is the denominator for calculation of Cost to Income Ratio
Operating Costs includes Employee Cost and all other expenses excluding Interest
Expenses and Provisions. Other Operating Expenses includes : Rent, Software,
Electricity, Power, Network Expenses, Travelling, Conveyance, Telephone, Postage,
Courier, Housekeeping, Security, Depreciation, etc. etc.
Employee Cost is the largest component of Operating
Expenses, it includes, Payments to employees towards Salary, Perquisites, Bonus,
Ex-gratia payments
Operating Profit is equal to Net Revenue MINUS Total Operating Expenses.
Operating Profit is also referred to as Profit before any Provisions
Profit Before Tax = Operating Profit MINUS All provisions excluding Provision for
Corporate Tax. These provisions include Provision for Non-Performing Assets,
Provision for Standard Assets, Provisions for contingencies and other Losses, Other
Miscellaneous provisions [Excluding Tax Provision]
Net Profit or Profit after Tax (PAT) is calculated by subtracting Tax Expenses –
Current Tax as well as Deferred Tax from the Profit Before Tax. It is the same as
Operating Profit MINUS all provisions including Provisions for Tax
Deposits include Current Accounts, Savings Accounts and Term Deposits (Fixed
Deposits, Recurring Deposits)
CASA includes two types of deposit accounts – Current Accounts and Savings
Account. Current Accounts are opened for Business and Professional enterprises for
carrying out day to day business transactions. In terms RBI directives, no interest
can be paid on Current Account. It is thus No Cost Deposit.
CASA includes two types of deposit accounts – Current Accounts and Savings
Account. Savings accounts are transactional accounts for salaried people,
Households etc., it carries a low rate of interest – ranging between 3 per cent to 5/6
percent. It is part of Low Cost Deposit of the Bank
Net Advances = Gross Advances Less Provisions for Non-Performing Advances.
Advances includes Cash Credit, Overdraft, Demand Loans, Term Loans, Packing
Credit, Bills Purchased, Bills Discounted, Post Shipment Credit etc.
Investments include Investments for the purpose of maintaining Statutory Liquidity Ratio (SLR)
and for other purposes – the Non-SLR investments. SLR investments include investment in
approved Government Securities, T-Bills, State Govt Loans etc. Non-SLR investments include
investments in Corporate Bonds and securities, investments in Subsidiaries etc.
Paid-up Capital is the contribution towards Face Value of the Equity Shares of the
Bank. It does not include premium collected while issuing shares.
RANKING NOT RELEVANT FOR THIS PARAMETER, HENCE, BANKS LISTED IN ALPHABETIC
ORDER
Reserves and Surplus include various types of Revenue Reserves and Capital
Reserves. It also include amount of Share premium collected by the bank while
issuing shares. Revenue reserves are created out of profits which is retained by the
Bank. Capital reserves include capital gains carried to Reserves & Surplus
Balance Sheet Size is equal to the total of all Assets (or Total of all Liabilities). Sum of Paid up
Capital, Reserves and Surplus, Deposits, Borrowings and Other Liabilities/Provisions – is total of
all liabilities, while Sum of Cash/RBI balances, Other Bank Balances, Investments, Advances,
Fixed Assets and Other Assets – is total of all assets
Total Number of Branches have been taken from the Annual Reports / Investor Presentations.
For certain banks, wherever available branches situated overseas have been added to the
figure of Domestic Branches mentioned in the Annual Reports/Presentations
Total Number of ATMs include both On Site and Off-Site ATMs. The figures have
been taken from the RBI’s website under the head Statistics
Total Number of Employees have been taken from Annual Reports / Investor
Presentations, For a few banks No. of Employee information is not available for Q1
FY24 & Q1 FY25
Total Number of Debit Cards are the outstanding Debit Cards. The figures have
been taken from the RBI’s website under the head Statistics
Total Number of Credit Cards are the outstanding Credit Cards – Cards in Force.
The figures have been taken from the RBI’s website under the head Statistics
Total Number of POS Terminals implies the number of Point of Sales installed as part
of Merchant Acquiring Business. The figures have been taken from the RBI’s website
under the head Statistics
Total Number of Micro ATMs (Number of Hand-held machines) with Business
Correspondents who are authorised to part small value of cash after getting
authorisation through modified POS Machines. Information has been taken from
RBI’s website under the head Statistics. Data is available from March 2021 onwards
Total Number of QR Codes installations data from 31-March-2021 has been taken
from RBI’s website under the head Statistics
Capital Adequacy Ratio or Capital to Risk Assets Ratio (CRAR) is equal to Tier I +
Tier II Capital divided by Total Risk Weighted Assets (aggregated for all three types
of Risks – Credit, Market and Operational) as on date of Balance Sheet or Quarterly
Results
Tier I Capital is equal to Tier I Capital divided by Total Risk Weighted Assets
(aggregated for all three types of Risks – Credit, Market and Operational) as on
date of Balance Sheet or Quarterly Results. Tier I Capital has two components :
Common Equity Tier I Capital + Additional Tier I Capital
CET I Ratio is equal to Common Equity Tier I Capital divided by Total Risk Weighted Assets
(aggregated for all three types of Risks – Credit, Market and Operational) as on date of
Balance Sheet or Quarterly Results. Common Equity Tier I Capital is also referred to as Core
Capital and is most permanent Capital of the Bank.
Gross NPA Ratio is equal to Gross Non-Performing Assets divided by Gross
Advances as on the date of Balance Sheet / Q1 end date. RANKING IS BASED ON
ASCENDING ORDER
Net NPA Ratio is equal to Net Non-Performing Assets divided by Net Advances as
on the date of Balance Sheet / Q1 end date. RANKING IS BASED ON ASCENDING
ORDER
CASA Ratio is the ratio of Current Account + Saving Account divided by Total
Deposits. For FY ending, information for all banks is = Global CASA / Global
Deposits.
CA Ratio is the ratio of Current Account divided by Total Deposits. For FY ending,
information for all banks is = Global CA / Global Deposits. But as on Q1 (FY25/FY24)
SA Ratio is the ratio of Savings Account divided by Total Deposits. For FY ending,
information for all banks is = Global SA / Global Deposits.
Cost to Income Ratio = Total Operating Expenses (which includes Employee Cost)
divided by Net Revenue. Net Revenue = Net Interest Income + Other Income.
RANKING IS BASED ON ASCENDING ORDER
Employee Cost to Net Revenue = Employee Cost divided by Net Revenue. Net
Revenue = Net Interest Income + Other Income.
RANKING IS BASED ON ASCENDING ORDER
Net Interest Margin = Net Interest Income divided by Average Earning Assets
For Q1 (FY 2024-25 ) & Q1 (FY 2023-24), NIM is ANNUALIZED
Return on Average Assets = Net Profit (PAT) divided by Average Total Assets
For Q1 (FY 2024-25 ) & Q1 (FY 2023-24), ROAA is ANNUALIZED
Return on Average Net Worth = Net Profit (PAT) divided by Average Net Worth
For Q1 (FY 2024-25 ) & Q1 (FY 2023-24), ROANW is ANNUALIZED
Earnings Per Share (EPS) = Net Profit (PAT) divided by Average Number of Equity Shares
Outstanding during the year. For Q1 (FY 2024-25 ) & Q1 (FY 2023-24), EPS is for 3 Months and is
NOT annualized.
RANKING NOT RELEVANT FOR THIS PARAMETER, HENCE, BANKS LISTED IN ALPHABETIC ORDER
Dividend for FY 2019-20 is NIL for every bank in terms of RBI’s instructions in the wake of
Pandemic. However, HDFC Bank had already distributed special interim dividend of Rs. 2.50
per share in 2019 – on account of completion of 25 years of the Bank.
RANKING NOT RELEVANT FOR THIS PARAMETER, HENCE, BANKS LISTED IN ALPHABETIC ORDER
Dividend Payout Ratio = Total amount of Dividend including Dividend Distribution Tax (when
applicable) divided by Net Profit of the Bank for the Year. For the Banks where Dividend
Payout Ratio is not available in Annual Report, the same has been calculated by dividing
Dividend Per Share by the Earnings Per Share as an approximate value. RANKING NOT
RELEVANT FOR THIS PARAMETER, HENCE, BANKS LISTED IN ALPHABETIC ORDER
 Compiled / Created by
Gurvinder Singh Kharbanda
Consultant Trainer – HR Learning & Development – HDFC Bank Ltd