CONTENT

1. INTRODUCTION

2. CURRENT POSITION

3. TREND ANALYSIS (HORIZONTAL)

4. COMMON SIZE FINANCIAL STATEMENT (VERTICAL)

5. RATIO ANALYSIS

6. CAPITAL ADEQUACY RATIO (CAR)

7. REFRENCE

INTRODUCTION

HDFC Bank Limited is an Indian banking and financial services company

headquartered in Mumbai , Maharashtra

Incorporated in 1994 and is second largest private bank in India

Largest private sector bank by market capitalization as of December 2015, at

approximately Rs.2,67,293.02 crores.

HDFC Bank Limited is ranked 21st in India’s top 500 companies by revenue. (ET)

HDFC Bank Ltd. is ranked 58th among India's most trusted brands.

It is among the Top 50 most valued global bank in terms of market

capitalization.

It is the second-largest private lender in terms of asset size, ranks 45th, with a

market capitalization of $39 billion.

Mr. Aditya Puri is the Managing Director HDFC Bank, and has held this

position since 1994.

HDFC Bank offers the following core products:

Personal Banking Accounts & Deposits Loans Cards DMAT Investments Insurance Forex Premier Banking Private Banking

The Stock price of HDFC Bank Ltd. registered in BSE/NSE are 1060/1062

respectively.

The Bank’s distribution network was at 4014 branches in 2,464 cities in

India, the Bank also has a network of 11,766 ATMs across India .

The Bank has overseas branch operations in Bahrain, Hong Kong and

Dubai.

HDFC BANK OPERATIONS IN WORLD

COMPARISON

42%

35%

8%4%

11%

HDFC Bank

Revenue Total Exp PATTax Profit

43%

35%

8%3%

11%

ICICI Bank

Revenue Total Exp PATTax Profit

Revenue 61,267.27

Total Exp. 50,091.92

PAT 11,175.35Tax 4645Profit 15800.2

Revenue 60,212.17

Total Exp. 49,512.14

PAT 10,700.05Tax 5387.44Profit 16087.49

Intrest from advances

65%

Intrest from investment

20%

Commision,exchnage and brokerage

12%

Others4%

HDFC

Intrest from advances

80%

Intrest from investment

3%

Commision,exchnage and brokerage

16%

Others1%

ICICI

HORIZONTAL ANALYSIS Increase/(Decrease) Mar’15 Mar’14 Amount (Cr) % • Revenue 60,212.17 50,852.52 9359.65 18.40• Expenses 49,512.14 42,088.01 7424.13 17.63• Net Income 10,700.05 8,764.51 1935.54 22.08

These percentages were calculated bydividing each item by the base year.

TREND ANALYSIS

Year Mar’15 Mar’14 Mar’13 Mar’12 Mar’11

Revenue 60,212.17 50,852.52 42,993.98 34,185.72 24,628.38

Cost of sales 49,512.14 42,088.01 36,093.71 28,912.32 20,610.68

Profit 10,700.05 8,764.51 6,900.28 5,273.40 4,017.69

Year Mar’15 Mar’14 Mar’13 Mar’12 Mar’11

Revenues 244.48 % 206.47% 174.57% 138.80% 100%

Cost of sales 240.22 % 204.20% 175.12% 140.27% 100%

Gross profit 266.32 % 218.14% 171.74% 131.25% 100%

These percentages were calculated bydividing each item by the base year.

TREND PERCENTAGES

TREND ANALYSIS

2015 2014 2013 2012 20110

2000

4000

6000

8000

10000

12000

Profit

Profit

VERTICAL ANALYSIS

Consolidated Profit & Loss account in Rs . Cr.

Mar '15Mar ‘15 12 mths %

Income

Interest Earned 50,666.49 84.15

Other Income 9,545.68 15.85

Total Income 60,212.17 100

Expenditure

Interest expended 27,288.46 45.32

Employee Cost 5,162.68 8.43

Selling, Admin & Misc Expenses

16,380.55 26.76

Depreciation 680.45 1.13Preoperative Exp Capitalised 0 0

Operating Expenses 14,577.53 23.81Provisions & Contingencies 7,646.15 12.49

Total Expenses 49,512.14 82.229Net Profit for the Year 10,700.05 17.771

Capital and Liabilities: 2015 2015

Rs %

Equity Share Capital 501.3 0.084

Share Application Money 0

Preference Share Capital 0

Reserves 61,508.12 10.41

Net Worth 62,009.42 10.50

Deposits 450,795.64 76.34

Borrowings 45,213.56 7.65

Total Debt 496,009.20 83.99

Other Liabilities & Provisions 32,484.46

Total Liabilities 590,503.08 100

Assets

Cash & Balances with RBI 27,510.45 4.65

Balance with Banks, Money at Call 8,821.00 1.49

Advances 365,495.03 61.89Investments 166,459.95 28.18Gross Block 3,121.73 0.52

Revaluation Reserves 0

Accumulated Depreciation 0

Net Block 3,121.73 0.52Capital Work In

Progress 0

Other Assets 19,094.91 3.23Total Assets 590,503.07 100

Contingent Liabilities 997,538.88

Bills for collection 0Book Value (Rs) 247.39

RATIO ANALYSIS

1. Current ratioThe current ratio measures the company’s ability to pay current liabilities with current assets.

For 2015 CR = 27,510.45+8821.00 32484.46 = 1.11

CR Current AssetsCurrent Liabilities

2. Quick ratioThe quick ratio shows the company’s ability to pay all current liabilities if they come due immediately (without relying on the sale of its inventory).

For 2015 QR = 36331.45 32484.46 = 1.11

QR Current Assets InventoriesCurrent Liabilities

3. Cash ratio

The Cash ratio shows the company’s ability to pay all current liabilities if they come due immediately.

For 2015 Cash Ratio = 27510.45 32484.46 = 0.846

Cash RatioCash

Current Liabilities

4. Fixed Asset Turnover Ratio

For 2015 Fixed Asset Turnover = 50666.49 3121.734 = 16.23

Fixed Asset TurnoverSales

Net Fixed Assets

5. Total Asset Turnover Ratio

For 2015 Total Asset Turnover = 48469.90 590503.08 = 0.082

Total Asset Turnover SalesTotal Assets

6. Long -term debt ratio

For 2015 Long term Debt ratio = 45,213.56 + 496,009.20 590,503.07 = 0.916

LongtermDebt Ratio Long termDebtTotal Assets

7. Debt to equity ratio

Debt to equity ratio = Debt Equity

For 2015 Debt to equity ratio = 496009.20 501.3 = 989.44

8. Operating Profit Margin

For 2015 OPM = 15862.27 48469.90 = 0.327

OPM NetOperating IncomeSales

EBITSales

OPM =

9. Net Profit Margin (Return on Sales)

For 2015 NPM = 10700.03 48469.90 = 0.221

NPMNet Income

Sales

10. Return on Total Assets

For 2015 ROA = 10700.03 590503.07 = 0.018

ROANet IncomeTotal Assets

11. Return on Equity

For 2015 ROE = 10700.03 501.29 = 21.34

ROE Net IncomeTotalEquity

12. EPS EPS = Net Profit No of equity sharesFor 2015 EPS = 10215.91 239905.04 = 0.043

CAPITAL ADEQUACY RATIO

Capital Adequacy Ratio (CAR), also known as Capital to Risk (Weighted) Assets Ratio (CRAR), is the ratio of a bank's capital to its risk. 

It is a measure of a bank's capital. It is expressed as a percentage of a bank's risk weighted credit exposures.

This ratio is used to protect depositors and promote the stability and efficiency of financial systems around the world.

Two types of capital are measured: 1. Tier one capital 2. Tier two capital.

TIER 1 CAPITAL = (paid up capital + statutory reserves + disclosed free reserves) - (equity investments in subsidiary + intangible assets + current & b/f losses)

TIER 2 CAPITAL = A) Undisclosed Reserves + B) General Loss reserves + C) hybrid debt capital instruments and subordinated debts

CAR= Tier 1 capital + Tier 2 capital Risk weighted assets CAR=T1 +T2  ≥ 9% @

The percent threshold varies from bank to bank (10% in this case, a common requirement for regulators conforming to the Basel Accords and is set by the national banking regulator of different countries.

CAR= Tier 1 capital + Tier 2 capital Risk weighted assets

Tier 1 CapitalTier 1 = (paid up capital + statutory reserves + disclosed free reserves) - (equity investments in subsidiary + intangible assets + current & b/f losses )Tier 1 = ( 501.30+61,508.12+140)-(1950.74+2201.41+222.81+52.39)Tier 1 = 57722.07.

Tier 2 CapitalTier 2 =Undisclosed Reserves + General Loss reserves + hybrid debt capital instruments and subordinated debtsTier 2 =13244.22.

CAR = 57722.07+13244.22 ≥ 10% 422669.92 CAR = 16.79%

NOTE=( All figures in above is in Rs crores )

CAR = T1 +T2  ≥ 10% @

REFRENCE

• HDFC Annual report (2015 2014 2013 2012 2011)• The Economic Times Of India• Rediff.com• Bombay stock exchange• Investopedia

THANK YOU