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Summer Internship Project

A Comprehensive Study of the Financial Analysis of HDFC Bank

Submitted in partial fulfillment of the


Requirements for the award of Masters of Business Administration
&Post Graduate Program in Management

Submitted to:
Prof. Sanjiv Dhir
Faculty
Amity Global Business School

Submitted by:
Abhirama B Sarepaka
Enrolment No: A30701913063
MBA Batch 2013-2015

ACKNOWLEDGMENT
To merely say thank you is not enough. There is always some individual who comes to
your aid as a messiah and brings you into the light of knowledge and wisdom. They say
that all the people who help you in your quest for knowledge are like bricks and concrete
in a wall. They support you in all your endeavors big and small.
I am forever indebted to Mr. Shiraz Malik, Branch Manager, HDFC Bank Sector 9,
Chandigarh for allowing me to do my summer internship in his organization. His
sustained support and encouragement was the guiding light behind my efforts. I am also
in debt to my mentors Mr. Shiraz Malik, Branch Manager and Ms. Raman Mann,
Branch Operations Manager, HDFC Bank Sector 9, Chandigarh for helping me clear
the confusion that clouded my judgment and guide me through the various phases of the
internship project. Their persistence with me helped me attain knowledge and
understanding with tenacity.
Teachers are the guide who take us on the quest for knowledge and wisdom. Dr. Shivali
Dhingra, Director, Amity Global Business School and Prof. Sanjiv Dhir have been
the lighthouse in a dark sea of ignorance. They have stood firm and helped me navigate
the difficult waters of ignorance to reach the shores of knowledge and wisdom. I am
honored to have such mentors who have taken the pains to come to my rescue whenever I
was out of my depths.
Finally, the support of my parents, friends and colleagues and everyone who are too many
to be named has always held me in good stead in my times of tribulations. I draw my
sense of strength, resilience, responsibility and dedication to my work from them. I
cannot thank them enough for all the support they have extended to me.

Abhirama B Sarepaka

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Page

S. No.

Abbreviation

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.

ABM
ADM
ATAT
ATM
AU
B2C
BSE
c/f
EM
FDI
Govt.
HDFC

13.

HPSCARDB

14.

IJAFMR

15.
16.
17.
18.
19.

KDCC
NPM
NRI
NSE
P&L A/C

20.

PCARDB

21.
22.
23.
24.
25.
26.
27.
28.
29.
30.

PM
PNB
POS
RBI
ROA
ROE
Rs.
SBI
SWOT
w.e.f.

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List of Abbreviations
Unabbreviated form
Assistant Branch Manager
Asset Desk Management
Average Total Asset Turnover
Automatic Teller Machine
Asset Utilization
Business to Customer
Bombay Stock Exchange
Carry forward
Equity Multiplier
Foreign Direct Investment
Government
Home Development Finance Corporation
Himachal Pradesh State Cooperative Agricultural and
Rural Development Bank
International Journal of Accounting and Financial
Management Research
Karimnagar District Central Cooperative Bank
Net Profit Margin
Non-Resident Indian
National Stock Exchange
Profit and Loss Account
Primary Cooperative Agricultural and Rural
Development Bank
Profit Margin
Punjab National Bank
Point of Sale
Reserve Bank of India
Returns of average Assets
Returns on average Equity
Rupees
State Bank of India
Strengths, Weaknesses, Opportunities and Threats
With effect from

Page

List of Tables
Table 1.
Table 2.
Table 3.
Table 4.
Table 5.
Table 6.
Table 7.
Table 8.
Table 9.
Table 10.
Table 11.
Table 12.
Table 13.
Table 14.
Table 15.
Table 16.
Table 17.
Table 18.
Table 19.
Table 20.
Table 21.
Table 22.

Balance Sheet for HDFC Bank from 2008-09 till 2012-13 (values in
crores)
Income Statement for the financial years 2008-09 until 2012-13
Current Ratio Values for the financial years 2008-09 until 2012-13
Liquid Assets to Total Assets Ratio for the Financial Years 2008-09 until
2012-13.
Acid Test Ratio for the financial years ending March 2009 until March
2013.
Credit to Deposit Ratio for HDFC Bank for the Financial Years 2008-09
until 2012-2013.
Debt Equity Ratio for HDFC Bank for the Financial Years 2008-09 until
2012-2013.
Indebtedness Ratio for HDFC Bank for the Financial Years 2008-09 until
2012-2013.
Fixed Assets to Net Worth Ratio for HDFC Bank for the Financial Years
2008-09 until 2012-2013.
Net Worth for HDFC Bank for the Financial Years 2008-09 until 20122013.
Net Capital Ratio for HDFC Bank for the Financial Years 2008-09 until
2012-2013.
Returns on Equity Ratio for HDFC Bank for the Financial Years 2008-09
until 2012-2013.
Net Profit to Total Assets Ratio for HDFC Bank for the Financial Years
2008-09 until 2012-2013.
Net Profit to Net Worth Ratio for HDFC Bank for the Financial Years
2008-09 until 2012-2013.
Net Profit to Fixed Assets Ratio for HDFC Bank for the Financial Years
2008-09 until 2012-2013.
Gross Ratio for HDFC Bank for the Financial Years 2008-09 until 20122013.
Operating Ratio for HDFC Bank for the Financial Years 2008-09 until
2012-2013.
Management Ratio for HDFC Bank for the Financial Years 2008-09 until
2012-2013.
Establishment Ratio for HDFC Bank for the Financial Years 2008-09 until
2012-2013.
Values for HDFC Bank for DuPont Analysis for the Financial Years 200809 until 2012-2013.
DuPont Analysis Figures for the Financial Years 2008-09 until 2012-2013.
Average Time per transaction of two counters on three consecutive days as

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Table 23.
Table 24.
Table 25.
Table 26.
Table 27.
Table 28.
Table 29.
Table 30.
Table 31.
Table 32.
Table 33.
Table 34.
Table 35.
Table 36.
Table 37.
Table 38.
Table 39.
Table
Annex-1.
Table
Annex-2.
Table
Annex-3.

part of Time Motion Studies.


Cumulative Average Time per transaction for each counter as part of Time
Motion Studies.
Footfall on 5 working days during business hours at the Counter: Tellers
and the respective Daily total footfall.
Footfall on 5 working days during business hours at the Counter: Welcome
Desk and the respective Daily total footfall.
Footfall on 5 working days during business hours at the Counter: Asset
Desk Management and the respective Daily total footfall.
Footfall on 5 working days during business hours at the Counter: Assistant
Branch Manager and the respective Daily total footfall.
Footfall on 5 working days during business hours at the Counter: New
Accounts and the respective Daily total footfall.
Footfall on 5 working days during business hours at the Counter: Current
Accounts and the respective Daily total footfall.
Footfall on 5 working days during business hours at the Counter: PB
Authorizer-1 and the respective Daily total footfall.
Footfall on 5 working days during business hours at the Counter: Locker
Operations and the respective Daily total footfall.
Footfall on 5 working days during business hours at the Counter: PB
Authorizer-2 and the respective Daily total footfall.
Footfall on 5 working days during business hours at the Counter:
Relationship Manager-1 and the respective Daily total footfall.
Footfall on 5 working days during business hours at the Counter:
Relationship Manager-2 and the respective Daily total footfall.
Footfall on 5 working days during business hours at the Counter:
Relationship Manager-3 and the respective Daily total footfall.
Footfall on 5 working days during business hours at the Counter: Forex-1
and the respective Daily total footfall.
Footfall on 5 working days during business hours at the Counter: Forex-2
and the respective Daily total footfall.
Footfall on 5 working days during business hours at the Counter: Forex-3
and the respective Daily total footfall.
Footfall on 5 working days during business hours at the Counter: Forex
Teller and the respective Daily total footfall.
Individual Time taken for each transaction at 2 counters on three days for
Cash Deposits.
Individual Time taken for each transaction at 2 counters on three days for
Cheques Deposits.
Individual Time taken for each transaction at 2 counters on three days for
Cheques Encashment.

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Figure 1.
Figure 2.
Figure 3.
Figure 4.
Figure 5.
Figure 6.
Figure 7.
Figure 8.
Figure 9.
Figure 10.
Figure 11.
Figure 12.
Figure 13.
Figure 14.
Figure 15.
Figure 16.
Figure 17.
Figure 18.
Figure 19.
Figure 20.
Figure 21.
Figure 22.

List of Figures
Current Ratio Values for the financial years 2008-09 until 2012-13
Liquid Assets to Total Assets Ratio for the Financial Years 2008-09 until
2012-13.
Acid Test Ratio for the financial years ending March 2009 until March
2013.
Credit to Deposit Ratio for HDFC Bank for the Financial Years 2008-09
until 2012-2013.
Debt Equity Ratio for HDFC Bank for the Financial Years 2008-09 until
2012-2013.
Indebtedness Ratio for HDFC Bank for the Financial Years 2008-09 until
2012-2013.
Fixed Assets to Net Worth Ratio for HDFC Bank for the Financial Years
2008-09 until 2012-2013.
Net Worth for HDFC Bank for the Financial Years 2008-09 until 20122013.
Net Capital Ratio for HDFC Bank for the Financial Years 2008-09 until
2012-2013.
Returns on Equity Ratio for HDFC Bank for the Financial Years 2008-09
until 2012-2013.
Net Profit to Total Assets Ratio for HDFC Bank for the Financial Years
2008-09 until 2012-2013.
Net Profit to Net Worth Ratio for HDFC Bank for the Financial Years
2008-09 until 2012-2013.
Net Profit to Fixed Assets Ratio for HDFC Bank for the Financial Years
2008-09 until 2012-2013.
Gross Ratio for HDFC Bank for the Financial Years 2008-09 until 20122013.
Operating Ratio for HDFC Bank for the Financial Years 2008-09 until
2012-2013.
Management Ratio for HDFC Bank for the Financial Years 2008-09 until
2012-2013.
Establishment Ratio for HDFC Bank for the Financial Years 2008-09 until
2012-2013.
Values for HDFC Bank for DuPont Analysis for the Financial Years 200809 until 2012-2013.
Graphical representation of the average time for cash deposits at two
counters as part of Time Motion Studies.
Graphical representation of the average time for Cheques Deposits at two
counters as part of Time Motion Studies.
Graphical representation of the average time for Cheques Encashment at
two counters as part of Time Motion Studies.
Graphical representation of the Footfall at the Teller counters during
business hours on 5 working days and categorization as per date.

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Figure 23.
Figure 24.
Figure 25.
Figure 26.
Figure 27.
Figure 28.
Figure 29.
Figure 30.
Figure 31.
Figure 32.
Figure 33.
Figure 34.
Figure 35.
Figure 36.
Figure 37.
Figure 38.
Figure 39.

Graphical representation of the Footfall at the Teller counters during


business hours on 5 working days and categorization as per hour of
operation.
Graphical representation of the Footfall at the Welcome Desk counter
during business hours on 5 working days and categorization as per Date.
Graphical representation of the Footfall at the Welcome Desk counter
during business hours on 5 working days and categorization as per hour of
operation.
Graphical representation of the Footfall at the Asset Desk Management
counter during business hours on 5 working days and categorization as
per Date.
Graphical representation of the Footfall at the Asset Desk Management
counter during business hours on 5 working days and categorization as
per hour of operation.
Graphical representation of the Footfall at the Assistant Branch Manager
counter during business hours on 5 working days and categorization as
per Date.
Graphical representation of the Footfall at the Assistant Branch Manager
counter during business hours on 5 working days and categorization as
per hour of operation.
Graphical representation of the Footfall at the New Account counter
during business hours on 5 working days and categorization as per Date.
Graphical representation of the Footfall at the New Account counter
during business hours on 5 working days and categorization as per hour of
operation.
Graphical representation of the Footfall at the Current Accounts counter
during business hours on 5 working days and categorization as per Date.
Graphical representation of the Footfall at the Current Accounts counter
during business hours on 5 working days and categorization as per hour of
operation.
Graphical representation of the Footfall at the PB Authorizer-1 counter
during business hours on 5 working days and categorization as per Date.
Graphical representation of the Footfall at the PB Authorizer-1 counter
during business hours on 5 working days and categorization as per hour of
operation.
Graphical representation of the Footfall at the Locker Operations counter
during business hours on 5 working days and categorization as per Date.
Graphical representation of the Footfall at the Locker Operations counter
during business hours on 5 working days and categorization as per hour of
operation.
Graphical representation of the Footfall at the PB Authorizer-2 counter
during business hours on 5 working days and categorization as per Date.
Graphical representation of the Footfall at the PB Authorizer-2 counter
during business hours on 5 working days and categorization as per hour of
operation.

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Figure 40.
Figure 41.
Figure 42.
Figure 43.
Figure 44.
Figure 45.
Figure 46.
Figure 47.
Figure 48.
Figure 49.
Figure 50.
Figure 51.
Figure 52.
Figure 53.
Figure
Annex-1.
Figure
Annex-2.
Figure
Annex-3.

Graphical representation of the Footfall at the Relationship Manager-1


counter during business hours on 5 working days and categorization as
per Date.
Graphical representation of the Footfall at the Relationship Manager-1
counter during business hours on 5 working days and categorization as
per hour of operation.
Graphical representation of the Footfall at the Relationship Manager-2
counter during business hours on 5 working days and categorization as
per Date.
Graphical representation of the Footfall at the Relationship Manager-2
counter during business hours on 5 working days and categorization as
per hour of operation.
Graphical representation of the Footfall at the Relationship Manager-3
counter during business hours on 5 working days and categorization as
per Date.
Graphical representation of the Footfall at the Relationship Manager-3
counter during business hours on 5 working days and categorization as
per hour of operation.
Graphical representation of the Footfall at the Forex-1 counter during
business hours on 5 working days and categorization as per Date.
Graphical representation of the Footfall at the Forex-1 counter during
business hours on 5 working days and categorization as per hour of
operation
Graphical representation of the Footfall at the Forex-2 counter during
business hours on 5 working days and categorization as per Date.
Graphical representation of the Footfall at the Forex-2 counter during
business hours on 5 working days and categorization as per hour of
operation.
Graphical representation of the Footfall at the Forex-3 counter during
business hours on 5 working days and categorization as per Date.
Graphical representation of the Footfall at the Forex-3 counter during
business hours on 5 working days and categorization as per hour of
operation.
Graphical representation of the Footfall at the Forex Teller counter during
business hours on 5 working days and categorization as per Date.
Graphical representation of the Footfall at the Forex Teller counter during
business hours on 5 working days and categorization as per hour of
operation.
Individual Time taken for each transaction at Counter-A on three days for
Cash Deposits.
Individual Time taken for each transaction at Counter-B on three days for
Cash Deposits.
Individual Time taken for each transaction at Counter-A on three days for
Cheques Deposits.

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Figure
Annex-4.
Figure
Annex-5.
Figure
Annex-6.

Individual Time taken for each transaction at Counter-B on three days for
Cheques Deposits.
Individual Time taken for each transaction at Counter-A on three days for
Cheques Encashment.
Individual Time taken for each transaction at Counter-B on three days for
Cheques Encashment.

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Table of Contents

Page

List of Abbreviations....................................................................................................................3
List of Tables.................................................................................................................................5
List of Figures...............................................................................................................................7
INTRODUCTION OF BANKING............................................................................................14
MEANING AND DEFINITION:...........................................................................................14
ORIGIN OF WORD BANK:.................................................................................................15
ORIGIN OF BANKING:........................................................................................................15
BANKING SYSTEM IN INDIA............................................................................................15
A HISTORICAL PERSPECTIVE:........................................................................................15
FUNCTIONS OF BANKS..........................................................................................................16
PRIMARY FUNCTIONS.......................................................................................................16
SECONDARY FUNCTIONS.................................................................................................17
UTILITY FUNCTIONS:........................................................................................................17
i) CLASSIFICATION ON BASIS OF OWNERSHIP.....................................................17
1. PUBLIC SECTOR BANK..........................................................................................17
2. PRIVATE SECTOR BANKS......................................................................................18
3. CO-OPERATIVE BANKS.........................................................................................18
ii) CLASSIFICATION IN ACCORDANCE TO RBI ACT 1935......................................18
1. SCHEDULED BANK.................................................................................................19
2. NON-SCHEDULED BANK.......................................................................................19
iii)
CLASSIFICATION ACCORDING TO FUNCTION...............................................19
1. COMMERCIAL BANKS...........................................................................................19
2. SAVING BANKS.........................................................................................................19
3. FOREIGN EXCHANGE BANKS.............................................................................20
4. INDUSTRIAL BANKS...............................................................................................20
5. INDIGENIOUS BANKS.............................................................................................20
6. CENTRAL BANK.......................................................................................................20
7. AGRICULTURAL BANK..........................................................................................21
PROFILE OF THE ORGANIZATION....................................................................................22
INTRODUCTION..................................................................................................................22
PROMOTOR..........................................................................................................................22
BUSINESS FOCUS................................................................................................................22
TIMES BANKS AMALGAMATION....................................................................................23
DISTRIBUTION NETWORK...............................................................................................23
TECHNOLOGY.....................................................................................................................23
BUSINESS PROFILE............................................................................................................24
1. WHOLESALE BANKING SERVICES....................................................................24
2. RETAIL BANKING SERVICES:..............................................................................24
3. TREASURY OPERATIONS......................................................................................25
SWOT ANALYSIS OF HDFC BANK.......................................................................................27
STRENGHS:...........................................................................................................................27
WEAKNESS:..........................................................................................................................27
OPPORTUNITY:....................................................................................................................28
THREATS:..............................................................................................................................28

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JUSTIFICATION OF THE STUDY.....................................................................................28


OBJECTIVE OF THE STUDY.................................................................................................30
INTRODUCTION OF THE TOPIC.........................................................................................31
MEANING OF FINANCIAL STATEMENTS:....................................................................31
MEANING OF FINANCIAL ANALYSIS.............................................................................31
TYPES OF FINANCIAL ANALYSIS....................................................................................32
FUNCTIONS OF FINANCE DEPARTMENT.....................................................................33
METHODS OF FINANCIAL ANALYSIS............................................................................33
COMPARATIVE FINANCIAL STATEMENTS..................................................................34
PURPOSE OR UTILITY OR IMPORTANCE OF COMPARATIVE STATEMENTS....34
FORMS OF PRESENTING COMPARATIVE STATEMENTS.........................................34
COMPARATIVE BALANCE SHEET..................................................................................34
ADVANTAGES OF COMPARATIVE BALANCE SHEET................................................34
COMPARATIVE PROFIT & LOSS ACCOUNT.................................................................35
TREND ANALYSIS................................................................................................................35
RATIO ANALYSIS.................................................................................................................35
MEANING:.........................................................................................................................35
TYPES OF RATIOS...........................................................................................................35
OBJECTS AND ADVANTAGES OR USES OF RATIO ANALYSIS.................................35
LIMITATION OF RATIO ANALYSIS.................................................................................36
CLASSIFICATION OF RATIOS..........................................................................................36
CASH-FLOW STATEMENT.................................................................................................37
REVIEW OF LITERATURE....................................................................................................38
RESEARCH METHODOLOGY..............................................................................................42
TYPES OF RESEARCH DESIGN:.......................................................................................44
DATA COLLECTIONS..........................................................................................................45
DATA...................................................................................................................................46
DATA SOURCES................................................................................................................46
DATA PERIOD...................................................................................................................46
TOOLS USED.....................................................................................................................46
DATA ANALYSIS & INTERPRETATION...............................................................................50
CURRENT RATIO:................................................................................................................53
LIQUID ASSETS TO TOTAL ASSETS RATIO..................................................................54
ACID TEST RATIO...............................................................................................................55
SOLVENCY RATIOS.............................................................................................................58
DEBT-EQUITY RATIO.........................................................................................................58
INDEBTEDNESS RATIO......................................................................................................59
FIXED ASSETS TO NET-WORTH RATIO.........................................................................60
NET WORTH.........................................................................................................................62
NET CAPITAL RATIO:.........................................................................................................63
PROFITABILITY RATIOS...................................................................................................64
NET PROFIT TO TOTAL ASSETS RATIO........................................................................65
NET PROFIT TO NET WORTH RATIO.............................................................................66
NET PROFIT TO FIXED ASSETS RATIO.........................................................................67
EFFICIENCY RATIOS..........................................................................................................68
GROSS RATIO.......................................................................................................................69

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OPERATING RATIO.............................................................................................................70
MANAGEMENT RATIO.......................................................................................................71
ESTABLISHMENT RATIO...................................................................................................72
DUPONT ANALYSIS.............................................................................................................73
TIME AND MOTION STUDIES..............................................................................................39
MOTION STUDY...................................................................................................................39
TIME STUDY.........................................................................................................................39
TECHNIQUES OF MOTION AND TIME STUDY.............................................................39
RELATIONSHIP AND UTILIZATION OF MOTION AND TIME STUDY.....................40
RESEARCH METHODOLOGY FOR TIME MOTION STUDIES..................................47
METHODOLOGY FRAMEWORK.................................................................................47
RESEARCH DESIGN........................................................................................................47
VARIABLES.......................................................................................................................47
BASIC PROCEDURE FOR RESEARCH........................................................................48
DATA COLLECTION........................................................................................................48
SYSTEMATIC OBSERVATION.......................................................................................48
STOPWATCH TIME STUDY...........................................................................................48
PROCESS CHART.............................................................................................................49
DATA ANALYSIS...............................................................................................................49
RECOMMENDATIONS AND CONCLUSIONS:..................................................................104
LIMITATIONS OF STUDY.....................................................................................................105

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INTRODUCTION OF BANKING
MEANING AND DEFINITION:
In nonprofessional terms, a bank is any financial institution that deals with money and
provides financial services. The primary form of banking present in the modern industrial
world is commercial banking & central banking.
Banking Means "Accepting Deposits for the purpose of lending or Investment of deposits
of money from the public, repayable on demand or otherwise and withdraw by cheques,
draft or otherwise."
-Banking Companies (Regulation) Act, 1949
According to the concise oxford dictionary, a bank is "Establishment for custody of
money, which it pays out on customers order." In fact this is the function which the bank
performed when banking originated." Banking in the most general sense, is meant the
business of receiving, conserving & utilizing the funds of community or of any special
section of it."
-By H. Wills & J. Bogan
"A banker of bank is a person, a firm, or a company having a place of business where
credits are opened by deposits or collection of money or currency or where money is
advanced and waned.
-By Findlay Sheras
Thus, A Bank may be defined as an institute that:

Accepts deposits of money from public.


Pays interest on money deposited with it.
Lends or invests money.
Repays the amount on demand.
Allow the money deposited to be withdrawn by cheques or draft.

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ORIGIN OF WORD BANK:


The origins of the word bank is unclear. According to a source, the Italian business
houses that carried on the crude from of banking were called banchi bancheri". However,
according to another source, banking is derived from German word "Branck" which
mean heap or mound. In England, the issue of paper money by the government was
referred to as raising a bank.
ORIGIN OF BANKING:
The origins of the simplest form of banking can be traced to the origin of authentic
history. Once the benefits of money as a medium of exchange were recognized, the
importance of banking was developed and enhanced as it provided a safer option of
storage of money. This safe haven ultimately evolved and grew into the modern day
financial institutions i.e. the modern commercial banks that accept deposits, extend loans
and enhance the value of the money kept with them.
BANKING SYSTEM IN INDIA
A HISTORICAL PERSPECTIVE:
Formal banking Practices were established in England and Germany and Italy years
before they were formally initiated in India. However, the history of modern Banking in
India can be identified into three distinct phases:
1. Early phase from 1786-1969.
2. Nationalization of banks and up to 1991 prior to banking sector reforms.
3. New phase of Indian banking with the advent of financial banking.
Banking in India has its origin as early or Vedic period. It is believed that the transitions
from many lending to banking must have occurred even before Manu, the great Hindu
furriest, who has devoted a section of his work to deposit and advances and laid down
rules relating to the rate of interest. During the Mogul period, the indigenous

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banker played a very important role in lending money and financing foreign trade and
commerce.
During the days of the East India Company, it was the turn of agency house to carry on
the banking business. The General Bank of India was the first joint stock bank to be
established in the year 1786. The others that followed were the Bank of Hindustan and
Bengal Bank.
The Bank of Hindustan is reported to have continued until 1906. While other two failed
in the meantime. In the first half of the 19th century, the East India Company established
there banks, The Bank of Bengal in 1809, The Bank of Bombay in 1840 and The Bank of
Bombay in 1843. These three banks also known as the Presidency banks were the
independent units and functioned well. These three banks were amalgamated in 1920 and
new bank, the Imperial Bank of India was established on 27 January 1921.
With the passing of the State Bank of India Act in 1955, the undertaking of the Imperial
Bank of India was taken over by the newly constituted SBI. The Reserve Bank of India
(RBI), which is the Central bank, was established in April 1935 by passing Reserve bank
of India act 1935.The Central office of RBI is in Mumbai and it controls all the other
banks in the country. In the wake of Swadeshi Movement, number of banks with the
Indian management were established in the country namely, Punjab National Bank Ltd.,
Bank of India Ltd., Bank of Baroda Ltd., Canara Bank. Ltd.
On 19 July 1969, 14 major banks of the country were nationalized and on 15 April 1980,
6 more commercial private sector banks were taken over by the government.

FUNCTIONS OF BANKS
PRIMARY FUNCTIONS

Acceptance of Deposits
Making loans & advances
Loans

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Overdraft
Cash Credit
Discounting of bills of exchange

SECONDARY FUNCTIONS

Agency functions
Collection of cheques & Bills etc.
Collection of interest and dividends.
Making payment on behalf of customers
Purchase & sale of securities
Facility of transfer of funds
To act as trustee & executor.

UTILITY FUNCTIONS:

Safe custody of customers valuable articles & securities.


Underwriting facility
Issuing of travelers cheques letter of credit
Facility of foreign exchanges
Providing trade information
Provide information regarding credit worthiness of their customer

There are different ways of classifying banks. Some classify banks based on the
ownership of the bank, while others classify the banks of India in accordance to the
Reserve Bank Act 1935. Banks may also be classified based on the function they perform
apart from the normal banking activities.
i)

CLASSIFICATION ON BASIS OF OWNERSHIP

Like any commercial institution, a bank is also classified based on ownership.


1. PUBLIC SECTOR BANK

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Banks owned by the Government are known as Public Sector Banks. The Government
runs these Banks. In India 14 banks were nationalized in 1969 & in 1980 another six
banks were also nationalized. Therefore in 1980 the number of nationalized bank 20.
Currently there are 21 nationalized banks in operation in India. All these banks
are belonging to public sector category. The primary objective of the public sector banks
is Welfare. Banks such as Allahabad Bank, Andhra Bank, Bank of Baroda, Bank of India,
Canara Bank, Bank of Maharashtra, Corporation Bank, IDBI Bank, etc. come under this
category of banks.
2. PRIVATE SECTOR BANKS
These banks are owned and run by the private sector. The private sector banks are sub
categorized into old and new private sector banks with the old banks being the ones that
existed from before the nationalization of banks in 1969. The new banks in the private
sector started after getting their banking licenses since the liberalization of 1990s. Banks
such as Axis Bank, ICICI bank, HDFC Bank, Indusind Bank, Kotak Mahindra Bank, etc.
come under the purview of the Private Sector Banks. An individual has control over their
banks in proportion to the share of the banks held by him.
3. CO-OPERATIVE BANKS
Co-operative banks are those financial institutions. They provide short-term & medium
term loans to their members. Co-operative banks are in every state in India. Its branches
at district level are known as the central co-operative bank. The central co-operative bank
in turn has its branches both in the urban & rural areas. Every state co-operative bank is
an apex bank that provides credit facilities to the central co-operative bank. It mobilized
financial resources from richer section of urban population by accepting deposit and
creating the credit like commercial bank and borrowing from the money market. It also
gets funds from RBI.
ii)

CLASSIFICATION IN ACCORDANCE TO RBI ACT 1935

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Banks are classified into following two categories based on Reserve Bank Act. 1935.
1. SCHEDULED BANK
These banks have paid up capital of at least Rs. 5 lakhs. These are like a joint stock
company. It is a co-operative organization. These banks find their mention in the second
schedule of the reserve bank.
2. NON-SCHEDULED BANK
These banks are not mentioned in the second schedule of reserve bank and paid up capital
of these banks is less then Rs. 5 lakhs. The number of such bank is gradually decreasing
in India.
iii)

CLASSIFICATION ACCORDING TO FUNCTION

Based on functions banks are classified as under:1. COMMERCIAL BANKS


The commercial banks generally extend short-term loans to businesspersons & traders.
Since their deposits are for a short period only. They cannot lend money for a long
period. These banks perform various types or agency job for their customers. These banks
are not in position to grant long-term loans to industries because their deposits are only
for a short period. The majority of joint stock banks in India are commercial banks that
finance trade & commerce only.
2. SAVING BANKS
The principle function of these banks is to collect small saving across the country and put
them into productive use. These banks have shown marked development in Germany &
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Japan. These banks were established in City of Hamburg, Germany in 1765. In India, a
department of post offices functions as a saving banks.
3. FOREIGN EXCHANGE BANKS
These are special types of banks, which specialize in financing foreign trade. Their main
function is to make international payments through purchase & sale of exchange bills. As
it well known, the exporters of country prefer to receive the payments for exports in their
own currency. Thus, these banks convert home currency into foreign currency and vice
versa. It is on this account that these banks have to keep with themselves stock of the
currency of various countries. Along with that, they have to open branches in foreign
countries to carry on their business.
4. INDUSTRIAL BANKS
The industrial banks extends long-term loans to industries. In fact, they also help
industrials firms to sell their debentures and shares. Sometimes, they even underwrite the
debentures & shares of big industrial concerns.
5. INDIGENIOUS BANKS
These banks found their origin in India. These banks made significant contribution to the
development of agricultural and industries before independence. Mahajans, rural
moneylenders have been the forerunner of these banks in India.
6. CENTRAL BANK
The central bank occupies a pivotal position in the monetary and banking structure of the
country. The central bank is the undisputed leader of the money market. As such, it
supervises controls and regulates the activities of commercial banks affiliated with it. The
central bank is also the higher monetary institution in the country charged with the duty

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& responsibility of carrying out the monetary policy formulated by the government.
India's central bank known as The Reserve Bank of India was set up in 1935.
7. AGRICULTURAL BANK
The commercial and the industrial banks are not in a position to meet the credit
requirements of agriculture. Hence, there arises the need for setting up special type of
banks of finance agriculture. The credit requirement of the farmers are two types. Firstly,
the farmers require short-term loans to buy seeds, fertilizers, ploughs and other inputs.
Secondly, the farmers require long-term loans to purchase land, to effect permanent
improvements on the land to buy equipment and to provide for irrigation works.
There are two types of agriculture banks.
1. Agriculture co-operative banks
2. Land mortgage banks. The farmer provide short-term credit, while the letter
extend long-term loans to the farmers.
Only with a proper knowledge of the types of banks and their functions, it is possible to
understand the profile of the present bank.

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PROFILE OF THE ORGANIZATION


INTRODUCTION
The housing development finance corporation limited (HDFC) was amongst the first to
receive an "in-principle" approval from the reserve bank of India (RBI) to set up a bank
in the private sector, as part of RBI liberalization of Indian banking industry in 1994. The
bank was in corporate in Aug. 1994 in the name of HDFC Bank Ltd. With its registered
office in Mumbai, India, HDFC Bank commenced operations as scheduled commercial
bank in January 1995.
PROMOTOR
HDFC is India's premier housing finance company and enjoys an impeccable record of
accomplishment in India as well as in international markets. Since its inception in 1967,
the corporation has maintained a consistent and healthy growth in its operations to remain
a market leader in mortgage. Its outstanding loan portfolio covers well over a million
dwelling units. HDFC has developed significant expertise in retail mortgage loans to
different market segments and has a large corporate client base for its housing related
credit facilities. With its experience in the financial markets, a strong franchise, HDFC
was ideally positioned to promote a bank in the Indian environment.
BUSINESS FOCUS
HDFC Bank's mission is to be an excellent Indian bank. The bank has aimed to build
sound customer franchises across district business to be the prefer provider of banking
services in the segment that the bank operates in and to achieve healthy growth in
profitability, consistent with the bank's risk appetite. The bank is committed to maintain
the highest level of ethical standards, professional integrity and regulatory compliance.
HDFC Bank's business philosophy is based on four core values:
1. Operational Excellence
2. Customer Focus

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3. Product Leadership
4. People
TIMES BANKS AMALGAMATION
In a milestone transaction in Indian banking industry, Times Bank Limited (another new
private sector bank promoted by Bennett, Coleman & Co. Times group) was merged with
HDFC Bank ltd., effective February 26, 2000. As per the scheme of amalgamation
approved by the shareholders of both banks and Reserve Bank of India.
DISTRIBUTION NETWORK
HDFC Bank has its Headquarters in Mumbai. The bank, as on 31 March 2013, has a vast
network of 3062 branches spread over 1845 cities across the country. All branches are
linked on an online real time basis. The banks expansion plans take into account the need
to have a presence in all major industrial and commercial centers where its corporate
customers are located as well as the need to build a strong retail customer base for both
deposits and loans products. Being a clearing settlement bank to various leading stock
exchanges, the bank has branches in centers where the NSE/BSE have a strong and active
member base. The bank also has a network of 10743 ATM's across their cities.
TECHNOLOGY
HDFC Bank operates in a highly automated environment in terms of information
technology and communication systems. The entire bank's branches have connectivity
that enables the bank to offer speedy funds transfer facility to its customers. Multi branch
access is also provided to retail customers through the branch network and automated
teller machines (ATMs).
The bank has made substantial efforts and investments in acquiring the best technology
available internationally to build the infrastructure for an excellent bank has prioritized its
engagement in technology and the internet as one of its key goals and has already made

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significant progress in web enabling its core business. In each office its business, the
Bank has succeeded in leveraging its market position, expertise and technology to create
a competitive advantage and build market share.
BUSINESS PROFILE
HDFC Bank caters to wide range of banking services covering both commercial and
investment banking on the wholesale side and transactional branch banking on the retail
side. The bank three key business areas:
1. WHOLESALE BANKING SERVICES
The Bank's target is primary large blue-chip manufacturing companies in the Indian
corporate sector and to a lesser extent, emerging midsized corporate. For these corporate
the Bank provides a wide range of commercial and transactional Banking services
including working capital finance trade services, transactional services, cash management
etc. The Bank is also a leading provider of structure solution that combine cash
management services with vendors and distributor finance for facilitating superior supply
chain management for its corporate customers. Based on its superior levels of product
delivery service and strong customer orientation, the Bank has made significant inroads
into the Banking consortia of a number of leading India corporate including
Multinationals, Companies from the domestic business house and prime public sector
companies. It is recognized as a leading provider of cash management and transactional
Banking solutions to corporate customers, Mutual Funds, Stock Exchange Members and
Bank.
2. RETAIL BANKING SERVICES:
The objective of retail bank is to provide its target market customer a full range of
financial products and banking service, giving the customer a one-stop window for all
his/her banking requirements. The products are backed by excellent services and
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delivered to the customers through the growing branch network as well as though
alternative delivery channels like ATMs, phone banking, net banking and mobile banking.
The HDFC Bank preferred programs for high net worth individuals, the HDFC Bank plus
and the investment advisory services program have been designed keeping in mind heads
of customers who seek distinct financial solutions information and advice on various
investment avenues. The also had a wide array of retail ban products including auto
loans, loans against marketable securities, personal loans and loans for two wheelers. It is
also a leading provider of depository service to retail customers offering customers the
facility to hold their investments in electronic form. HDFC Bank was the first bank in
India to launch an international debit card in association with VISA (Visa electron) and
issue the master card Maestro debit card as well. The debit card allows the use to directly
debit his account at the point of purchase at a merchant establishment, in India and
overseas. The bank launch its credit card in association with VISA in November 2002.
The bank is also one of the leading players in the "merchant acquiring" business with
243, 000 point of sale (POS) terminals for debit/credit cards acceptance at merchant
establishments. The bank is well positioned as a leader in various net based Business to
Customer (B2C) opportunities including a wide range of interest banking services for
fixed deposit, loans, bill payments etc.
3. TREASURY OPERATIONS
Within this business, the bank has three main product areas foreign exchange and
derivative, local currency, money market & debt securities and equities. With the
liberalization of the financial market in India, corporate need more sophisticated risk
management information advice and product structure. These and find pricing on various
treasury product are provided through the bank treasury team.

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BOARD OF DIRECTOR
Mr. Jagdish Kapoor, (Chairman)
Mr. Aditya Puri, (Managing Director)
Mr. Keki Mistry
Dr. Venkat Rao Gadwal
Dr. Vineet Jain
Mrs. Renu Karnad
Mr. Arvind Pande
Mr. Ranjan Kapoor (Resigned w.e.f. 29 March 2006)
Mr. Bobby Parikh (w.e.f. Jan. 9, 2004)
Mr. Ashim Samanta
VICE PRESIDENT AND COMPANY SECRETARY
Mr. Sanjany Dongre
AUDITOR
M/s P.C Hansotia & Co.
Chartered Accountant
REGISTERED OFFICE
HDFC BANK HOUSE
Senapati Bapat Marg,
Lower Parel, Mumbai 40013
Tel. No. 66521000
Fax No. 24960737
Website: www.hdfcbank.com

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SWOT ANALYSIS OF HDFC BANK


Every organization big or small has to conduct a SWOT (Strengths, Weaknesses,
Opportunities and Threats) analysis so that it may be able to direct its strategies and
efforts in converting its weaknesses into strengths and threats into opportunities.
Even HDFC Bank has its strengths and weaknesses.
STRENGHS:
1. It has an extensive distribution network comprising of 3062 branches in1845
cities & one international office in Dubai this provides competitive edge over the
competitions.
2. The Bank has a strong retail depository base & has more than million customers.
3. Bank boasts of a strong brand equity.
4. ISO 9001 certification for its depository & custody operations & for its backend
processing of retail operation & direct banking operations.
5. The bank has a near competitive edge in area of operations.
6. The bank has a market leader in cash settlement service for the major stock
exchanges in its country.
7. HDFC Bank is one of the largest private sector bank working in India.
8. In terms of market capitalization, HDFC Bank is the largest Bank and the sixth
largest company.
9. It has a highly automated environment in terms of information technology &
communication system.
10. Infrastructure is best.
11. It has many innovative products like kids Advantage scheme, NRI services.
WEAKNESS:
1. Account opening and delivery of cheques book take comparatively more time.
2. Lack of availability of different credit products like CC Limit, Bill discounting
facilities.
OPPORTUNITY:
1. Branch expansion
2. Door step services
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3. Greater liberalization in foreign ownership via FDI in Indian Pvt. Sector Banks.
4. CC/ OF Facilities.
5. Infrastructure improvements & better systems for trading & settlement in the
govt. securities & foreign exchange markets.
THREATS:
1. The bank has started facing competition from players like SBI, PNB in the
finance market itself. This reduce the profit margins in the future.
2. Some Private Banks have 7 days banking.
JUSTIFICATION OF THE STUDY
Financial Statements are prepared primarily for decision-making. They play a dominant
role in setting the framework of managerial decisions. However, the information in the
financial statement is not an end in itself as no meaningful can be drawn from these
statements alone. The information provided in the financial statement is of immense use
in making decisions through analysis and interpretation of financial statements.
The financial analysis is the process of identifying the financial strength and weakness of
the firm by properly establishing relationship between the items of the balance sheet and
P&L A/C. There are various methods or techniques used in analyzing financial statement
such as comparative statement, trend analysis, and common size statement, schedule of
changes in working capital, fund flow and cash flow analysis, cost volume profit analysis
and RATIO ANALYSIS.
Ratio analysis is one of the most powerful tool of financial analysis. It is a process of
establishing and interpreting various ratios that the financial statements can be analyzed
more clearly and decisions made from such analysis. Just like a Doctor examines his
patient by recording his body temperature, blood pressure etc. before making his
conclusion regarding the illness and before giving his treatment, a financial analyst
analysis the financial statement with various tools of analysis before commenting upon

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the financial health or weaknesses of an enterprise. The purpose of financial analysis is to


diagnose the information contained in financial statements to judge the profitability and
financial soundness of the firm. Financial statement analysis is an attempt to determine
the significance and meaning of financial statement data so that forecast may be made of
the future earning, ability to pay interest and debt maturities and profitability of a sound
dividend policy.
A financial ratio is the relationship between two accounting figures expressed
mathematically ratio provide clues to the financial position of the concern. These are the
pointers and indicators of financial strength, soundness, position or weakness of an
enterprise. One can draw conclusions about the exact financial position of a concern with
the help of ratios.

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OBJECTIVE OF THE STUDY


Objectives are the ends that states specifically how goal be achieved. Every study must
have an objective for which all the efforts have been done. Without an objective, there is
no research and no result. Based on objective all the research process is followed.
Objectives are the main aspect of every study. The objective of the study gives direction
to go through the research problem. It guides the researcher and keeps him on track.
The primary objective of the present study is to assess financial condition of the bank by
using ratios.
The following are the other objectives of the study.
1. To know about HDFC bank and its operations with a specific reference to
Sector 9 Chandigarh Branch.
2. To understand the technological services provided by HDFC Sector 9
Chandigarh Branch.

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INTRODUCTION OF THE TOPIC


MEANING OF FINANCIAL STATEMENTS:
Financial statements refer to such statements, which contains financial information about
an enterprise. They report profitability and the financial position of the business at the
end of accounting period. The team financial statement includes at least two statements
that the accountant prepares at the end of an accounting period. The two statements are 1. The Balance Sheet
2. Profit and Loss Account
They provide some extremely useful information to the extent that balance Sheet mirrors
the financial position on a particular date in terms of the structure of assets, liabilities and
owners equity, and so on and the Profit And Loss account shows the results of operations
during a certain period of time in terms of the revenues obtained and the cost incurred
during the year. Thus, the financial statement provides a summarized view of
financial positions and operations of a firm.
MEANING OF FINANCIAL ANALYSIS
The first task of financial analysis is to select the information relevant to the decision
under consideration to the total information contained in the financial statement. The
second step is to arrange the information in a way to highlight significant relationship.
The final step is interpretation and drawing of inference and conclusions. Financial
statement is the process of selection, relation and evaluation.
Features of Financial Analysis

To present a complex data contained in the financial statement in simple and


understandable form.
To classify the items contained in the financial statement inconvenient and
rational groups.
To make comparison between various groups to draw various conclusions.

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Purpose of Analysis of financial statements

To know the earning capacity or profitability.


To know the solvency.
To know the financial strengths.
To know the capability of payment of interest & dividends.
To make comparative study with other firms.
To know the trend of business.
To know the efficiency of management.
To provide useful information to management

Procedure of Financial Statement Analysis


The following procedure is adopted for the analysis and interpretation of financial
statements:The analyst should acquaint himself with principles and postulated of accounting. He
should know the plans and policies of the managements that he may be able to find out
whether these plans are properly executed or not.
The extent of analysis should be determined so that the sphere of work may be decided. If
the aim is, find out. Earning capacity of the enterprise then analysis of income statement
will be undertaken. On the other hand, if financial position is to be studied then balance
sheet analysis will be necessary.
The financial data be given in statement should be recognized and rearranged. It will
involve the grouping similar data under same heads. Breaking down of individual
components of statement according to nature. The data is reduced to a standard form.
A relationship is established among financial statements with the help of tools &
techniques of analysis such as ratios, trends, common size, fund flow etc.
The information is interpreted in a simple and understandable way. The significance and
utility of financial data is explained for help indecision making.
The conclusions drawn from interpretation are presented to the management in the form
of reports.
TYPES OF FINANCIAL ANALYSIS
A) Classification based on natural used
a) External Analysis: Outsiders, who do not have access to the detailed internal
accounting records of the business firm, do this analysis. These outsiders parties are
potential investor, creditors, government agencies, credit agencies & public.

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b) Internal Analysis: The analysis conducted by person who has access to the
internal accounting records of a business firm is known as internal analysis.
B) On the basis of Method of Analysis:
a) Horizontal Analysis: Horizontal analysis refers to the comparison of financial data of
accompany for several years. The figures of this type of analysis are presented
horizontally over a no. of columns. This type of analysis is also called Dynamic
Analysis.
b) Vertical Analysis: This analysis refers to the study of relationship of the various items in
the financial statements, of one accounting period. It is also known as Static analysis.
FUNCTIONS OF FINANCE DEPARTMENT
The functions of finance department include the following areas:
1) Effective management of financial resources of the company.
2) Coordinates & Monitors the functions of accounts activities in the units/marketing
offers.
3) Establish and maintain systems of financial control, internal check and render advice
on financial & accounting matters including examination of feasibility report and detailed
project reports.
4) Establish and maintain proper system of budgetary control, cost control and
management reporting.
5) Maintain financial accounts and compile annual periodical accounts in accordance
with The Companies Act, 1956, ensuring the audit of accounts as per law/Govt.
directions.
6) Looks after overall funds management and arranges funds required for the capital
schemes and working capital form govt., banks and financial institutions etc.
7) Timely payment of all taxes, levies & duties under the Law, Maintenance of records
and filing returns statements connected with such taxes, levies and duties with the
appropriate authorities, as per law. All the power involving financial implications are to
be exercised in prior consultation with head of concerned finance department. In the
event of any difference of opinion between the General Manger and the Head of Finance
Dept., the matter shall be referred to Managing Director who after consulting Director
(Finance) shall issue appropriate instruction after following the prescribed procedures.
METHODS OF FINANCIAL ANALYSIS
A number of methods can be used for the purpose of analysis of financial statements.
These are also termed as techniques or tools of financial analysis. Out of these, and

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enterprise can choose those techniques that are suitable to its requirements. The principal
techniques of financial analysis are:
1. Comparative Financial Statements.
2. Common size Statements
3. Trend Analysis
4. Funds Flow statements
5. Cash Flow Statement
COMPARATIVE FINANCIAL STATEMENTS
When financial statements figures for two or more years are placed side-side to facilitate
comparison, these are called comparative Financial Statements. Such statements not
only show the absolute figures of various years but also provide for columns to indicate
to increase or decrease in these figures from one year to another. In addition, these
statements may also show the change from one year to another on percentage form. Such
cooperative statements are of great value in forming the opinion regarding the progress of
the enterprise.
PURPOSE OR UTILITY OR IMPORTANCE OF COMPARATIVE STATEMENTS
1.
2.
3.
4.
5.

To make the Data simpler and more understandable


To indicate the Trend.
To indicate the strong points weak points of the concern.
To compare the firms performance with the average performance of the industry.
To help in forecasting

FORMS OF PRESENTING COMPARATIVE STATEMENTS


1. To show only the absolute data of various items or in other words to show only
rupee amounts of various items.
2. To show the increases and decreases in data in terms of money values.
3. To show the increases and decreases in data in terms of percentages.
4. Comparison expressed in ratios.
5. Use of cumulative figures and averages
COMPARATIVE BALANCE SHEET
The Comparative Balance Sheet as on two or more different dates can be prepared to
show the increase or decrease in various assets, liabilities and capital. Such a comparative
Balance Sheet is very useful in studying the trends in a business enterprise.

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ADVANTAGES OF COMPARATIVE BALANCE SHEET


1. Helpful for comparison.
2. Helpful in knowing changing in the size of items.
3. Helpful in knowing trends.
4. Link between income statement and Balance sheet
COMPARATIVE PROFIT & LOSS ACCOUNT
Profit and loss account shows the net profit or net loss of a particular year whereas
comparative profit and loss account for a number of years provides the following
information
1. Rate of increase or decrease in gross profit.
2. Rate of increase or decrease in operating profit.
3. Rate of increase or decrease in cost of goods sales.
4. Rate of increase or decrease in net profit.
5. Rate of increase or decrease in sales.
TREND ANALYSIS
Trend percentage are very useful is making comparative study of the financial statements
for a number of years. These indicate the direction of movement over a long time and
help an analyst of financial statements to form an opinion as to whether favorable or
unfavorable tendencies have developed. This helps in future forecasts of various items.
For calculating trend percentages, any year may be taken as the base year. Each item of
base year is assumed equal to 100 and on that basis, the percentage of item of each year
calculated.
RATIO ANALYSIS
MEANING:
Absolute figures expressed in financial statements by themselves are meaningfulness.
These figures often do not convey much meaning unless expressed in relation to other
figures. Thus, it can be say that the relationship between two figures, expressed in
arithmetical terms is called a ratio.
According to R.N. Anthony. A ration is simply one number expressed in terms
of another. It is found by dividing one number into the other.
TYPES OF RATIOS
Proportion or Pure Ratio or Simple ratio.
Rate or so many Times.

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Percentage
Fraction.

OBJECTS AND ADVANTAGES OR USES OF RATIO ANALYSIS


1.
2.
3.
4.
5.
6.
7.
8.
9.

Helpful in analysis of financial statements.


Simplification of accounting data.
Helpful in comparative study.
Helpful in locating the weak spots of the business.
Helpful in forecasting
Estimate about the trend of the business
Fixation of ideal standards
Effective control
Study of financial soundness.

LIMITATION OF RATIO ANALYSIS


1.
2.
3.
4.
5.
6.
7.
8.
9.

False accounting data gives false ratios


Comparisons not possible of different firms adopt different accounting policies.
Ratio analysis becomes less effective due to price level change
Ratios may be misleading in the absence of absolute data.
Limited use of a single Ratio.
Window-Dressing
Lack of proper standards.
Ratio alone are not adequate for proper conclusions
Effect of personal ability and bias of the analyst.

CLASSIFICATION OF RATIOS
In view of the financial management or according to the tests satisfied, various ratios
have been classified as below
Liquidity Ratios: These ratios measure the short-term solvency or financial position of a
firm. These ratios are calculated to comment upon the short-term paying capacity of a
concern or the firms ability to meet its current obligations.
Long Term Solvency and Leverage Ratios: Long-term solvency ratios convey a firms
ability to meet the interest cost and repayment schedules of its long-term obligation e.g.
Debit Equity Ratio and Interest Coverage Ration. Leverage Ratios.

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Activity Ratios: Activity ratios are calculated to measure the efficiency with which the
resource of a firm have been employed. These ratios are also called turnover ratios
because they indicate the speed with which assets are being turned over into sales e.g.
debtors turnover ratio.
Profitability Ratios: These ratios measure the results of business operations or overall
performance and effective of the firm e.g. gross profit ratio, operating ratio or capital
employed. Generally, two types of profitability ratios are calculated.
(a) In relation to Sales
(b) in relation in Investment
CASH-FLOW STATEMENT
A cash flow statement is a statement showing inflows (receipts) and outflows
(payments) of cash during a particular period. In other words, it is a summary of sources
and applications of each during a particular span of time.

Objectives of Cash Flow Statement:


Useful for Short-Term Financial Planning.
Useful in Preparing the Cash Budget.
Comparison with the Cash Budget.
Study of the Trend of Cash Receipts and Payments.
It explains the Deviations of Cash from Earnings.
Helpful in Ascertaining Cash Flow from various separately.
Helpful in Making Dividend Decisions.

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REVIEW OF LITERATURE
Anil Kumar Soni & Harjinder Pal Singh Saluja (2013) used financial ratios to evaluate
the performance of the District Central Cooperative Bank plays a vital role in the
agriculture and rural development of the Rajnandgaon. The study revealed that financial
position of this bank analyzed by ratio analysis techniques. It is found that the position
solvency, liquidity and profitability are satisfactory. The efficiency ratios indicated a
medium level of the expenditure over the gross income. Profitability of the bank was very
low due to the heavy over dues and low rate of recovery.
Hosamani (1995) used various ratios to evaluate the performance of Malaprabha
Grameena Bank in Karnataka. Profitability ratios were negative (-43%) due to higher
burden ratio (3.11%) compared to spread (2.96%).
Pathania and Sharma (1997) studied the working of Himachal Pradesh State Cooperative
Agricultural and Rural Development Bank, which lends money on a long-term basis for a
variety of end users. The financial durability of the bank was measured and data were
presented on the long term financial strength, debt to equity ratio, fixed assets to net
worth ratio, the short- term financial performance, and the current ratio. It was concluded
that the financial position of the bank was not sound, with liabilities exceeding equity.
Patil (2000) used various financial ratios to evaluate the performance of Primary
Cooperative Agricultural and Rural Development Banks in Dharwad district of
Karnataka. The study revealed that the current ratio was more than unity and acid test
ratio was less than unity, while the net worth and profitability ratios were negative for all
the banks in all the periods except for PCARDB, Dharwad.
Shekhar et al. (1999) employed financial ratio analysis for the Karimnagar District
Central Cooperative Bank in Andhra Pradesh, India. Financial ratios relating to solvency,
liquidity, profitability, efficiency and strength of the bank were analyzed for the period
1985/86-1994/95.
Siddhanti (1999) used various financial ratios to analyze financial performance of Indian
Farmers Fertilizers Cooperative and opined that the current ratio of the institution
between 1987-88 and 1997-98 was ranging from 2.62 to 2.52 as against the standard
norm of 2:1. The debt equity ratio during the period was between 1.05 and 1.07 as against
standard norm of 1:1.
At the end, we can conclude that the Financial Statement Analysis has a great effect on
the future prospects of the any organization.

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TIME AND MOTION STUDIES


MOTION STUDY
According to Ralpha M. Barnes (2001), Frank and Lillian M. Gilbreth are known as the
parents of motion study. Gilbreth begin investigation to find the best way of performing
a given task trough analyzing the motions used by his workmen and he easily saw how to
make improvements. He also possessed for analyzing work motion situations to enhance
their ability for shorter or less fatiguing motions to improve the work environment. The
research included the elimination of all useless motions and the reduction of those
remaining motions. The elimination of this unwanted waste known as work
simplification. According Fred (1992), Elton Mayo started their research known as the
human relations movement and he discovered that people work better when their attitude
is better. He undertook a research project to study what factors affected productivity in
the Hawthorne plant. Their studied took place between 1924 and 1933.

TIME STUDY
According to Fred E. Mayers (1992), time study was developed by Frederick W. Taylor in
about 1880 which he is the first person to use a stopwatch to study and measure work
content with his purpose to define a fair days work. He called as Father of Time Study.
Among his study is Taylor Shoveling Experiment, which he studied between 400 and
600 men that using his own shovel from home to moving material from mountains of
coal, coke and iron ore in around two mile-long yards. Taylor identify that there have
different size of shovels and he wondered which shovel was the most efficient. Thus, he
used a stopwatch and measured everything that workers did. He recorded the data for
every work in various ways with varied of shovels size, durations to done their work,
number of breaks and work hours. The results were fantastic which it reduced time,
saving numbers of workers and budgeting for every year.

TECHNIQUES OF MOTION AND TIME STUDY


Motion study has the greatest potential for savings. We can by eliminating the task or
combining the task with some task. We can rearrange the elements of work to reduce the
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work content and we can simplify the operation by moving part. Thus, among the
techniques for motion study are:
i.
ii.
iii.
iv.
v.

Process charts
Flow diagrams
Operation charts
Flow process charts
Multiple activity charts

Gilbreths used flow diagrams to show movement of product around an entire plant
because they gave an accurate geographical picture of the entire process. They also
develop methods study techniques such as cyclograph, chronocyclographs, movie
cameras, etc. The techniques of time study start with the last motion technique and it
shows the close relationship between motion study and time study. The techniques of
time study are:
i.
ii.
iii.
iv.

Stopwatch time study


Expert opinion standards
Predetermined time standards
Work sampling time standards

Frederick W. Taylor used a stopwatch and a clipboard to record the time and findings of
his study (Foster, 2003). Motion and Time study technique can be used widely for variety
of research. For example, Ann Hendrich, Marilyn Chow, Boguslaw A. Skierczynski,
Zhenqiang Lu (2008) used this techniques to study spend time of nurse at hospital. L.
Aharonson Daniel (1996) used time studies in A&E department. While, Jeffrey S. Smith
(2003) survey that many production and manufacturing used simulation as alternative
way to develop new effective system.

RELATIONSHIP AND UTILIZATION OF MOTION AND TIME STUDY


Motion and time study helps management determine how much is produced by workers
in a specific time frame, therefore making it easier to predict work schedules and output.
Motion and Time Study is a scientific method designed by two different people for the
same purpose, to increase productivity and reduce time. The two methods evaluate work
and try to find ways to improve processes. Frank B. Gilbreth invented motion study
designed to determine the best way to complete a job. Frederick W. Taylor designed Time

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Study; it measures how long it takes a worker to complete a task. Time and Motion Study
has become a necessary tool for businesses to be successful today.
Time and Motion Study is very important in production control. Now, Offices, Banks,
Department Stores, and Hospitals use Motion and Time Study. Offices use it to measure
and simplify work in order to reduce costs. Banks use it to help team members reach their
sales goals (Foster, 2003).

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RESEARCH METHODOLOGY
The procedure adopted for conducting the research requires a lot of attention as it has
direct bearing on accuracy, reliability and adequacy of results obtained. It is due to this
reason that research methodology, which used during the research, needs elaboration.
Research Methodology is a way to systematically study and solve the research problems.
If a researcher wants to claim his study as a good study, he must clearly state the
methodology adapted in conducting the research the research so that it may be judged by
the reader whether the methodology of work done is sound or not.
The Research Methodology here includes.
1.
2.
3.
4.
5.
6.

Meaning of Research.
Research Problem.
Research Design.
Sampling Design.
Data Collection method.
Analysis and interpretation of Data.

Meaning Research:
Research is defined as a scientific and systematic search for pertinent information on a
specific topic.
Research is an art of scientific investigation. Research is a systematized effort to gain
now knowledge. It Isa careful investigation or inquiry especially through search for new
facts in any branch of knowledge. Research is an academic activity and this term should
be used in a technical sense. Research comprises defining and redefining problems,
formulating hypothesis or suggested solutions. Making deductions and reaching
conclusions to determine whether they if the formulating hypothesis. Research is thus, an
original contribution to the existing stock of knowledge making for its advancement. The

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search for knowledge through objective and systematic method of finding solutions toe
problem is research.
Research Problem
The first step while conducting research is careful definition of Research Problem. To
ERR IS THE HUMAN is a proverb that indicates that no one is perfect in this world.
Every researcher has to face many problems which conducting any research thats why
problem statement is defined to know which type of problems a researcher has to face
while conducting any study. It is said that, Problem well defined is problem half
solved.
A problem statement refers to some difficulty, which researcher experiences in the
context of either a theoretical or a practical situation and wants to obtain the solution for
the same.
The problem statement here is To make Financial Analysis of Financial statements of
HDFC BANK.
Research Design
A research designs is the arrangement of conditions for collection and analysis data in a
manner that aims to combine relevance to the research purpose with economy in
procedure. Research Design is the conceptual structure with in which research in
conducted. It constitutes the blueprint for the collection measurement and analysis of
data. Research Design includes and outline of what the researcher will do form writing
the hypothesis and it operational implication to the final analysis of data. A research
design is framework for the study and is used as guide in collection and analyzing the
data. It is a strategy specifying which approach will be used for gathering and analyzing
the data. It also include the time and cost budget since most studies are done under these
two-cost budget since most studies are done under theses tow constraints.
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The design is such studies must be rigid and not flexible and most focus attention on the
following.
1. What is the study about?
2. Why is the study being made?
3. Where will the study be carried out?
4. What type of data is required?
5. Where can be required data be found?
6. What period will the study include?
7. What will be sample design?
8. What techniques of data collection will be used?
9. How will the data be analyzed?
10. In what style will the report be prepared?
TYPES OF RESEARCH DESIGN:

Experimental research design


Exploratory research design
Descriptive & diagnostic research

Exploratory Research Design: This research design is preferred when researcher has a
vague idea about the problem the researcher has to explore the subject.
Experimental Research Design: The research design is used to provide strong basis for
the existence of casual relationship between two or more variables.
Descriptive Research Design: It seeks to determine the answers to who, what, where,
when and how questions. It is based on some previous understanding of the matter.
Diagnostic Research Design: It determines the frequency with which something occurs
or its association with something else.
Research Design Used in this Project

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Research Design chosen for this study is Descriptive Research Design. Descriptive study
is based on some previous understanding of the topic. Research has a very specific
objective and clear-cut data requirements.
Sampling Design
Sampling is necessary because it is almost impossible to examine the entire parent
population (i.e. the entire universe) various factors such as time available cost, purpose of
study etc. make it necessary for the researchers to choose a sample. It should be neither
too small nor too big. It should be manageable. The sample size of past 5 years is taken
for present study due to time limitation.
DATA COLLECTIONS
The process of data collection begins after a research problem has been defined and
research design has been chalked out. There are two types of data, Primary and
Secondary.
Primary Data: It is first hand data, which is collected by researcher itself. Primary data
is collected by various approaches to get a precise, accurate, realistic and relevant data.
The main tool in gathering primary data was investigation and observation. It was
achieved by a direct approach and observation from the officials of the company.
Secondary Data: It is the data, which is already collected by someone else. Researcher
has to analyze the data and interprets the results. It has always been important for the
completion of any report. It provides reliable, suitable, adequate and specific knowledge
took data comprise annual reports and post records. The secondary data for the purpose of
the analysis represents the annual reports of years 2008-09 until 2012-2013. The valuable
cooperation extended by staff members contributed a lot to fulfill the requirements in the
collection of data in order to complete the project. Various statistical tools are applied
depending on the research problem. In this study ratio analysis, comparative financial
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statements analysis, common size statements and Trend Analysis has been used
for analyzing and interpreting the result.
The present study has been carried with the help of following research methodology to
achieve above stated objectives.
DATA
The present study was done by using the secondary data.
DATA SOURCES
Secondary data has been collected from company web sites, records

http://www.hdfcbank.com/aboutus/cg/annual_reports.htm

http://www.moneycontrol.com/india/stockpricequote/banksprivatesector/hdf
cbank/HDF01

International Journal of Accounting and Financial Management Research


(IJAFMR)

DATA PERIOD
This study has been carried with five years of data. The data period is from the financial
years 2008-2009 to 2012-2013.
TOOLS USED
Ratio analysis is used to evaluate relationships among financial statement items. The
ratios are used to identify trends over time for one company or to compare two or more
companies at one point in time. Financial statement ratio analysis focuses on three key
aspects of a business: liquidity, profitability, and solvency.

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DuPont Analysis: is used to compute the Return on Investment by considering the


various measures like Net Profit Ratio and Capital Turnover Ratio.
Forecasting Financial Statements is the process of estimating future business
performance (sales, costs, earnings).Corporations use forecasting to do financial
planning, which includes assessment of their future financial needs.
RESEARCH METHODOLOGY FOR TIME MOTION STUDIES
METHODOLOGY FRAMEWORK
Several methods will be used to achieve research objectives. After the literature review,
observation and collecting data is needed. The complete field data collection will be
tested before it will be used for data analysis.
The problems and nonproductive in the work process can be identified based on the data
collection and their analysis. Then, the result from the data testing will be determined
whether the result can be used or not and if there are any incomplete data, the data
collection will be executed again until it fulfills the objective requirement. After all the
data and analysis are complete, proposal and opinion may be given to the organization.

RESEARCH DESIGN
This research was conducted through field study. Field study is all the methods of
research are made from direct observations towards the live study situations. Researcher
collected data by observing and recorded the research subject during the observation.
According to Tunnell, 1977, the event from the field study is a matter of real situation in
the live condition continuously. The matter is not invent, on design or pause for the
research purpose.

VARIABLES
The variables in this study can be classified into two types, which are independent (time
and motion technique and dependent variable (the work process under consideration).
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This research used time and motion technique to study on improving the work process.
Meaning, the increasing of work process efficiency is depending on the time and motion
technique.

BASIC PROCEDURE FOR RESEARCH


There are four steps to complete this study. There are given below according to their
sequence:
a.
b.
c.
d.

Select: select the process or job to be studied.


Record: observe and record all the relevant facts related to the work process.
Examine: examine each recorded fact critically
Develop: develop the most efficient work process.

DATA COLLECTION
This research requires to collect data that are related to the time during the work process
occurs, the movement or distance for each process and number of products that they can
produces in specific time, which was collect based on several methods:
a. Systematic Observation
b. Stopwatch Time Study
c. Process Chart

SYSTEMATIC OBSERVATION
Systematic observation means researcher are required to observe the whole work process
in that industry, then select and focusing on which process or job that want to study.
Based on the observation, is needs to record everything happens in each process from the
start to finish the work process.

STOPWATCH TIME STUDY


Stopwatch time study is the work measurement to determine the baseline for future
improvement. It is also used to analyze a specific process by qualified workers in an
effort to find the most efficient ways in terms of time. Moreover, this method measures
the time necessary for a work process to be completed using the best ways. The time was
measured using snapback stopwatch equipment because it is easier and faster in data
recording. Moreover, this type of stopwatch is suitable for this research because it can

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develop accurate data. This allows the element times to be entered directly on the time
study sheet without the need for subtractions.

PROCESS CHART
Process chart is used to show facts as handling, inspection, operations, storage and delays
that occur in the work process, where it was happened when the process moves from one
process to another process until it finished. Each fact can be represented by symbols,
where it is used to describe the process steps.

DATA ANALYSIS
After all data is collected, the next step is analyzing the data thoroughly for each work
process. Analyzing data based on systematic observation and the process chart, which
recorded all the relevant facts about the work process. Thus identifying the sections of
the work force are nonproductive and take a long time in the work process.

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DATA ANALYSIS & INTERPRETATION


For the purpose of calculation on the financial ratios and their subsequent analysis and
interpretation, it is imperative to have the particulars of HDFC bank like Balance sheet
and income statement as follows:
March

March

March

2013

Total Share Capital


Equity Share
Capital
Share Application

Reserves
Net Worth
Deposits
Borrowings
Total Debt
Other Liabilities &
Provisions
Total Liabilities
Total Share Capital
Equity Share
Capital
Share Application

2010

2009

457.74

425.38

475.88

469.34

465.23

457.74

425.38

0.3

400.92

35,738.26

29,455.04

24,914.04

21,064.75

14,226.43

36,214.14
296,246.9

29,924.68
246,706.4

25,379.27
208,586.4

21,522.49
167,404.4

15,052.73

8
33,006.60
329,253.5

5
23,846.51
270,552.9

1
14,394.06
222,980.4

4
12,915.69
180,320.1

34,864.17

37,431.87

28,992.86

20,615.94

400,331.8

337,909.5

277,352.6

222,458.5

142,811.58
2,685.84
145,497.42
22,720.62
183,270.77

475.88

1
Assets
469.34

465.23

457.74

425.38

475.88

469.34

465.23

457.74

425.38

0.3

400.92

Money
Preference Share
Capital
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March

2012
2011
Capital & Liabilities
475.88
469.34
465.23

Money
Preference Share
Capital
Reserves
Revaluation

March

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Reserves
Revaluation
Reserves
Net Worth
Deposits
Borrowings
Total Debt
Other Liabilities &
Provisions
Total Liabilities
Total Share Capital

35,738.26

29,455.04

24,914.04

21,064.75

14,226.43

36,214.14
296,246.9

29,924.68
246,706.4

25,379.27
208,586.4

21,522.49
167,404.4

15,052.73

8
33,006.60
329,253.5

5
23,846.51
270,552.9

1
14,394.06
222,980.4

4
12,915.69
180,320.1

34,864.17

37,431.87

28,992.86

20,615.94

400,331.8

337,909.5

277,352.6

222,458.5

9
475.88

1
469.34

0
465.23

6
457.74

142,811.58
2,685.84
145,497.42
22,720.62
183,270.77
425.38

Table 1. Balance Sheet for HDFC Bank from 2008-09 till 2012-13 (values in crores)

Income
Interest Earned
Other Income
Total Income
Expenditure
Interest expended
Employee Cost
Selling and Admin
Expenses
Depreciation
Miscellaneous
Expenses
Preoperative Exp.
Capitalised
Operating Expenses
Provisions &
Contingencies
Total Expenses
Net Profit for the

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March

March

March

March

March

2013

2012

2011

2010

2009

35,064.87
6,852.62
41,917.49

27,286.35
5,243.69
32,530.04

19,928.21
4,335.15
24,263.36

16,172.90
3,983.10
20,156.00

16,332.26
3,470.63
19,802.89

19,253.75
3,965.38

14,989.58
3,399.91

9,385.08
2,836.04

7,786.30
2,289.18

8,911.10
2,238.20

2,647.25

2,510.82

3,395.83

2,851.26

651.67

542.52

497.41

394.39

359.91

11,320.41

5,873.42

5,205.97

3,169.12

3,197.49

11,236.12

9,241.64

8,045.36

7,703.41

7,290.66

4,701.34

3,221.46

3,004.88

1,545.11

1,356.20

35,191.21
6, 26.28

27,452.68
5, 167.09

20,435.32
3,926.40

17,034.82
2,948.70

17,557.96
2,244.94

Page 50

Year
Extraordinary Items
Profit brought forward
Total
Preference Dividend
Equity Dividend
Corporate Dividend
Tax
Per Share data
(Annualized
Earnings Per Share
(Rs)
Equity Dividend (%)
Book Value (Rs)
Appropriations
Transfer to Statutory
Reserves
Transfer to Other
Reserves
Proposed
Dividend/Transfer to
Govt.
Balance c/f to Balance
Sheet
Total

-4.47
8,399.65
15,121.46
0
1,309.08

-2.12
6,174.24
11,339.21
0
1,009.08

-2.65
4,532.79
8,456.54
0
767.62

-0.93
3,455.57
6,403.34
0
549.29

-0.59
2,574.63
4,818.98
0
425.38

222.48

163.7

124.53

91.23

72.29

28.27

22.02

84.4

64.42

52.77

275
152.2

215
127.52

165
545.53

120
470.19

100
344.44

1,785.08

1,250.08

997.52

935.15

641.25

672.63

516.7

392.64

294.87

224.5

1,531.56

1,172.78

892.15

640.52

497.67

11,132.18

8,399.65

6,174.24

4,532.79

3,455.57

15,121.45

11,339.21

8,456.55

6,403.33

4,818.99

Table 2. Income Statement for the financial years 2008-09 until 2012-13
Based on the above information, it is possible to analyze and produce ratios with
meaning.
CURRENT RATIO:
This ratio measures the degree of short-term liquidity of the bank. It indicates whether the
current assets are sufficient to meet the current liabilities. It is generally believed that a
good current ratio should be between 1.5:1 and 2:1.

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Generally, higher the value of this ratio, greater will be the margin and financial solvency
of the bank.
Current Ratio = Current Assets / Current Liabilities

current ratio=current
assets /current liabilities

March

March

March

March

March

2013

2012

2011

2010

2009

0.78

0.08

0.06

0.03

0.04

Table 3. Current Ratio Values for the financial years 2008-09 until 2012-13
The current assets included in this study were cash in hand, balance with other banks
(current account only), short-term loan-advances and bills receivables, interest receivable,
sundry debtors. The current liabilities included deposit (current account only), short-term
borrowings (cash credit overdraft), interest payable, sundry creditors, bills payables and
other short-term liabilities.

Current Ratio = Current Assets /Current Liabilities


0.78

0.08

0.06

0.03

0.04

current ratio=current assets /current liabilities


Figure 1.

Current Ratio Values for the financial years 2008-09 until 2012-13

INTERPRETATION: Current ratio is gradually improving. It is very low (0.03) in the


year 2010 and high (0.78) in the year 2013. This is because the bank raised more current
account deposits (current liabilities) during the year 2010, which results in the lower

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current ratio. Even though the current ratio is improving, it is not up to the mark (1.5:1 to
2:1) indicating the lower capacity to meet its short-term liabilities.
LIQUID ASSETS TO TOTAL ASSETS RATIO
The degree of liquidity performance adopted by the bank is depicted by this ratio.

Liquid Assets to Total Assets Ratio =


Liquid Assets / Total Assets

March

March

March March March

2013

2012

2011

2010

2009

0.07

0.06

0.11

0.13

0.10

Liquid Assets to Total Assets Ratio = Liquid Assets / Total Assets

Table 4. Liquid Assets to Total Assets Ratio for the Financial Years 2008-09 until 201213.
The liquid assets included cash in hand and balance with other banks (current account
only). Total assets included cash in hand, balance with other banks, investment, loan and
advances, fixed assets and other assets.

Liquid Assets to Total Assets Ratio = Liquid Assets / Total Assets


0.1

39873

0.13

40238
0.11

40603
40969
41334

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0.06
0.07

Page 53

Figure 2. Liquid Assets to Total Assets Ratio for the FY 2008-09 until 2012-13.
INTERPRETATION: Liquid Assets to Total Assets ratio increased from the year 2009
to 2011 and it was high (0.13) during 2010 because of the increase in money at call and
short notice during that period. The Liquidity Ratio gradually decreases and was very low
(0.06) in the year 2012 because of decrease in the maintenance of money with RBI and
very low maintenance of money at call and short-term notice.
ACID TEST RATIO
This ratio is called quick ratio or near money ratio. This represents the ratio between
quick assets and current liabilities and computed as follows

March

March

March

March

March

2013

2012

2011

2010

2009

Acid Test Ratio = Quick

7.97
6.2
6.79
7.03
5.15
Assets / Current Liabilities
Table 5. Acid Test Ratio for the financial years ending March 2009 until March 2013.
Acid Test Ratio = Quick Assets / Current Liabilities
The quick assets included cash in hand and balance with other banks (current account
only). The current liabilities included deposit (current account only), interest payable,
sundry creditors, bills payables and other short-term liabilities. Excluded short term
borrowings (cash credit overdraft)

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Acid Test Ratio = Quick Assets / Current Liabilities


7.97
6.79

6.2

7.03
5.15

Acid Test Ratio = Quick Assets / Current Liabilities


Figure 3. Acid Test Ratio for the financial years ending March 2009 until March 2013.
INTERPRETATION: Acid test ratio is increased from the year 2009 to 2010 and again
decreases during 2011 and 2012 and again increased in 2013.This is because of increase
in liquid assets(money at call and short notice) and decrease in current liabilities( interest
accrued) in 2010. It again decreases during 2011 and 2012 because of decrease in money
at call and short notice with other institutions.

March

March

March

March

March

2013

2012

2011

2010

2009

35.99

78.06

76.02

72.44

66.64

Credit Deposit Ratio = Total


Loan and Advances / Total
Deposit
Table 6. Credit to Deposit Ratio for HDFC Bank for the Financial Years 2008-09 until
2012-2013.

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Credit Deposit Ratio = Total Loan and Advances / Total Deposit


78.06

76.02

72.44

66.64

35.99

Credit Deposit Ratio = Total Loan and Advances / Total Deposit


Figure 4.

Credit to Deposit Ratio for HDFC Bank for the Financial Years 2008-09

until 2012-2013.
INTERPRETATION: Credit Deposit Ratio is increasing over the period indicating that
the bank is giving more loans from the deposited amount, which means that banks might
not have enough liquidity to cover any unforeseen fund requirements. This is because the
bank is increasing its cash credits, over drafts, loans repayable on demand components,
which may block the availability of fund.

SOLVENCY RATIOS
These ratios indicate banks involvement in the total resources and provide basis for
measuring leverage ratio.
These ratios indicate the ability of the bank to meet its medium as well as long-term
obligations and provide the basis for measuring the leverage effect on the bank. The
various ratios employed were as follows:
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DEBT-EQUITY RATIO
This ratio is called leverage ratio. This compares the banks stake in the business with
outside term liabilities. Lower value of the ratio indicates that the leverage effect will be
restricted to the minor role of debt and major capital being equity, the bank is supposed to
be trading on thick equity.
Debt Equity Ratio = Long Term Liabilities / Net Worth
In the above ratio, debt represents only long-term liabilities and not current liabilities
(deposit- fixed, saving), while equity refers to net worth after deducting intangible assets.
March

March

March

March

March

2013

2012

2011

2010

2009

Debt Equity Ratio = Long

8.18
8.24
8.22
7.78
9.49
Term Liabilities / Net Worth
Net worth includes statutory reserves, capital reserves, profits and other reserves and
share capital.
Table 7. Debt Equity Ratio for HDFC Bank for the Financial Years 2008-09 until 20122013.

Debt Equity Ratio = Long Term Liabilities / Net Worth


8.24

8.22

7.78

41334

40969

40603

40238

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9.49

8.18

39873

Page 57

Figure 5.

Debt Equity Ratio for HDFC Bank for the Financial Years 2008-09 until

2012-2013.
INTERPRETATION: In the financial year ending 31 March 2009, the Debt-Equity
Ratio was very high at 9.49. However, the ratio decreased to a low (7.78) in the year 2010
and increased gradually because of high increase in capital reserve (additions during the
year and opening balance). In 2011, 2012 change in capital reserve is very less but
liabilities are increasing and in 2013, the company increased its capital reserve, which
results in the decrement (8.18), a good sign.
INDEBTEDNESS RATIO
The ratio indicates the amount owed by the bank to creditors. The ratio reflects the
solvency position of the bank in a better way. The lower the ratio, the better is the
solvency position.
Indebtedness Ratio = Total Liabilities / Net Worth

Indebtedness Ratio = Total


Liabilities / Net Worth

March

March

March

March

March

2013

2012

2011

2010

2009

11.05

11.29

10.93

10.34

12.18

Table 8. Indebtedness Ratio for HDFC Bank for the Financial Years 2008-09 until 20122013.
The total liabilities included statutory reserves, capital reserves, revenue reserves,
deposit, borrowings, contingent liabilities, other liabilities and share capital.

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Indebtedness Ratio = Total Liabilities / Net Worth


12.18

39873
10.34

40238

10.93

40603

11.29

40969

11.05

41334
Figure 6.

Indebtedness Ratio for HDFC Bank for the Financial Years 2008-09 until

2012-2013.
INTERPRETATION: In 2009, the indebted ratio is very high at 12.18, which means
that the net liabilities of the bank were much higher than they were in the subsequent
years. Indebtedness ratio is also low in 2010 and again increased in 2011 and 2012 and
decreased in the 2013 because of change in capital reserve and increase in liabilities.
FIXED ASSETS TO NET-WORTH RATIO
Fixed Assets to Net-Worth Ratio = Fixed Assets / Net Worth

March

March

March

March

March

2013

2012

2011

2010

2009

9.90

9.93

9.22

8.69

10.64

Fixed Assets to Net-Worth


Ratio = Fixed Assets / Net
Worth
Table 9. Fixed Assets to Net Worth Ratio for HDFC Bank for the Financial Years 2008-09
until 2012-2013.

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The fixed assets included balance with other banks (Fixed deposit account only),
investment, long-term loan and advance, building and furniture. Fixed assets are
considered at their book values (cost less depreciation).

Fixed Assets to Net-Worth Ratio = Fixed Assets / Net Worth


9.9

41334

9.93

40969

9.22

40603

8.69

40238

10.64

39873

Fixed Assets to Net-Worth Ratio = Fixed Assets / Net Worth


Figure 7.

Fixed Assets to Net Worth Ratio for HDFC Bank for the Financial Years

2008-09 until 2012-2013.


INTERPRETATION: Fixed asset turn to net worth ratio is showing that Net worth is
frozen in the form of fixed assets in the year 2009. Later in the years 2011 & 2012 the
bank opened 558 new branches and 3400 new ATMs which required high infrastructure
and staffing expenses. These all shows that the bank is expanding more and it is resulting
in more assets and at the same time it also indicates the actual amount of fixed assets the
bank hold.
TESTS OF STRENGTH
This test provides a basis to know the real worth of the Bank. The term net-worth refers
to the owned funds employed in the business.

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NET WORTH
It indicates what the bank owes to the owners of the business. It measures the excess of
assets over outside liabilities, which indicates the soundness of the bank.
Net Worth = Total Assets Total liabilities (Outside/ External).
March

March

March

March

March

2013

2012

2011

2010

2009

253,792,70

215,224,90

Net Worth =
Total Assets
Total

362,141,37

liabilities

299,246,800

150,527,300

(Outside/
External)
Table 10. Net Worth for HDFC Bank for the Financial Years 2008-09 until 2012-2013.

Net Worth = Total Assets Total liabilities (Outside/ External)


41334; 362,141,373
40969; 299,246,800
40603; 253,792,700
40238; 215,224,900
39873; 150,527,300

41334

40969

40603

40238

39873

Figure 8. Net Worth for HDFC Bank for the Financial Years 2008-09 until 2012-2013.

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INTERPRETATION: Net worth of the bank is increasing year to year which indicates
the soundness of the bank. Even though there is a positive sign in equity, the strength of
the net worth is frozen in the form of fixed assets in the year 2009 resulting in high
(10.64). The expansion of the bank in terms of number of new branches (558) and new
ATMs (3400) required high infrastructural and staffing expenses and hence the net worth
of the bank is low in the years 2011 and 2012.

NET CAPITAL RATIO:


The ratio indicates the degree of liquidity of the bank in the end. It measures the degree
of availability of assets to pay off the long term liabilities. This ratio indicates the
relationship between total assets and liabilities of the bank.
This ratio would throw light on the real financial strength of the bank.
Net Capital Ratio = Total Assets / Total liabilities (Outside/ External).
March

March

March

March

March

2013

2012

2011

2010

2009

1.099

1.097

1.101

1.107

1.089

Net Capital Ratio = Total


Assets / Total liabilities
(Outside/ External)
Table 11. Net Capital Ratio for HDFC Bank for the Financial Years 2008-09 until 20122013.

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Net Capital Ratio = Total Assets / Total liabilities (Outside/ External)


39873

1.09
1.11

40238
1.1

40603
40969
41334

1.1
1.1

Figure 9. Net Capital Ratio for HDFC Bank for the Financial Years 2008-09 until 20122013.
INTERPRETATION: Net Capital Ratio is high (1.107, 1.101) in 2010 and 2011
because of increase in assets during these two years and is decreased in 2012 (1.097) and
again increased in 2013 (1.099) indicating the increase in external and outside liabilities.
PROFITABILITY RATIOS
These ratios were used to compare the return to the investment. Following were the
important ratios computed. This ratio provides a sound method of diagnosis of the
financial status and overall efficiency of the Bank. It indicates the profitability of the
investment and credit given by the bank.
NET PROFIT TO TOTAL ASSETS RATIO
This is ratio of profit on total assets of the bank and their employment. An increasing
trend over the years indicates the overall efficiency of the bank.

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Net profit to Total Assets Ratio = Net Profit / Total Assets.


March

March

March

March

March

2013

2012

2011

2010

2009

18.57%

17.27%

15.47%

13.70%

14.91%

Return on Equity
(ROE) = net profit/
total equity.
Table 12. Returns on Equity Ratio for HDFC Bank for the Financial Years 2008-09 until
2012-2013.

Return on Equity (ROE) = net profit/ total equity.


40969; 17.27%
40603; 15.47%
39873; 14.91%
40238; 13.70%

41334;
18.57%
41334
Figure 10.

40969

40603

40238

39873

Returns on Equity Ratio for HDFC Bank for the Financial Years 2008-09

until 2012-2013.
NET PROFIT TO TOTAL ASSETS RATIO
This is ratio of profit on total assets of the bank and their employment. An increasing
trend over the years indicates the overall efficiency of the bank.
Net profit to Total Assets Ratio = Net Profit / Total Assets.

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March

March

March

March

March

2013

2012

2011

2010

2009

0.017

0.015

0.014

0.013

0.012

Net profit to Total


Assets Ratio = Net
Profit / Total Assets
Table 13. Net Profit to Total Assets Ratio for HDFC Bank for the Financial Years 200809 until 2012-2013.

Net profit to Total Assets Ratio = Net Profit / Total Assets


0.02
0.02

41334
Figure 11.

40969

0.01

40603

0.01

40238

0.01

39873

Net Profit to Total Assets Ratio for HDFC Bank for the Financial Years

2008-09 until 2012-2013.


INTERPRETATION: Net Profit to total asset ratio in indicating the increasing trend that
reveals that the company is using its assets efficiently for generating the profits.
NET PROFIT TO NET WORTH RATIO
The ratio of net profit to net worth shows whether profitability is being maintained or not.
Net Profit to Net Worth Ratio = Net Profit / Net Worth.

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March

March

March

March

March

2013

2012

2011

2010

2009

0.186

0.173

0.155

0.137

0.149

Net Profit to Net


Worth Ratio = Net
Profit / Net Worth
Table 14. Net Profit to Net Worth Ratio for HDFC Bank for the Financial Years 2008-09
until 2012-2013.

Net Profit to Net Worth Ratio = Net Profit / Net Worth


0.19

0.17
0.16
0.14

41334
Figure 12.

40969

40603

40238

0.15

39873

Net Profit to Net Worth Ratio for HDFC Bank for the Financial Years

2008-09 until 2012-2013.


INTERPRETATION: Return On Equity is low (13.70) in 2010 because of high capital
reserves and less change in net profit from 2009 and it is increasing from 2010 because of
less change in capital reserve and high increase in net profits.
NET PROFIT TO FIXED ASSETS RATIO

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The ratio indicates whether the fixed assets are, being used profitability. A decline in the
ratio shows that either the assets are being kept idle or the business conditions are bad.
Net Profit to Fixed Assets Ratio = Net Profit / Fixed Assets

Net Profit to Fixed


Assets Ratio = Net

March

March

March

March

March

2013

2012

2011

2010

2009

1.875E-

1.73916E-

1.6775E-

1.5773E-

1.402E-

06

06

06

06

06

Profit / Fixed Assets

Table 15. Net Profit to Fixed Assets Ratio for HDFC Bank for the Financial Years 200809 until 2012-2013.

Net Profit to Fixed Assets Ratio = Net Profit / Fixed Assets


1.88E-06

41334
Figure 13.

1.74E-06

40969

1.68E-06

1.58E-06

40603

40238

1.40E-06

39873

Net Profit to Fixed Assets Ratio for HDFC Bank for the Financial Years

2008-09 until 2012-2013.


INTERPRETATION: Net profit to fixed assets indicates the positive trend showing that
the company is utilizing the assets effectively.
EFFICIENCY RATIOS
This test provides a clear picture of financial efficiency of the bank. It indicates the
profits for every rupee spent.

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Four ratios were adopted to assess the efficiency of the bank, viz., Gross Ratio, Operating
Ratio, Management Ratio and Establishment Ratio.

GROSS RATIO
This ratio helps to ascertain how efficiently the gross income of the bank was earned. The
ratio was computed as follows.
Gross Ratio = Total Expenses / Gross Income
The gross income included interest and discount, commission and brokerage and other
income. The total expenses included interest, salary, allowance, rent, legal expenses, audit
expenses and other provisions.

Gross Ratio
= Total
Expenses /
Gross
Income

March
2013

March
2012

March 2011

March
2010

March
2009

0.840

0.842

0.839

0.852

0.887

Table 16. Gross Ratio for HDFC Bank for the Financial Years 2008-09 until 2012-2013.

Gross Ratio = Total Expenses / Gross Income


39873; 0.89

39873
40238; 0.85

40238
40603
40969
41334

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40603; 0.84
40969; 0.84
41334; 0.84

Page 68

Figure 14.

Gross Ratio for HDFC Bank for the Financial Years 2008-09 until 2012-

2013.
INTERPRETATION: Gross ratio is high (0.887) in the year 2009 due to higher
expansion in the branch network and amalgamation of centurion bank which results in
the large amount of expenses and the ratio increased again in 2012 (0.844) because of
expansion of network from 2544 to 3062 branches and increase in ATMs from 8,913 to
10,743.
OPERATING RATIO
This ratio indicates the proportion of gross income being used for meeting the operating
expenses. An increase in the ratio indicates a decline in the efficiency of the bank.
Operating Ratio = Operating Expenses / Gross Income
The operating expenses included interest, salary; allowances, provident fund contribution,
rent, legal expenses, audit expenses and other expenses (excluded provisions).

Operating
Ratio =
Operating
Expenses /
Gross
Income

March

March

2013

2012

0.268

0.283

March 2011

0.330

March

March

2010

2009

0.385

0.368

Table 17. Operating Ratio for HDFC Bank for the Financial Years 2008-09 until 20122013.

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Operating Ratio = Operating Expenses / Gross Income


0.39

0.37

40238

39873

0.33
0.27

0.28

41334

40969

Figure 15.

40603

Operating Ratio for HDFC Bank for the Financial Years 2008-09 until

2012-2013.
INTERPRETATION: Operating Ratio is high during 2010 (0.382) because of increase
in payments and provisions to employees, stationary items, advertisement and publicity
during the year and it is decreased to 0.268 in 2013 due to less change in expenses and
higher increase of gross income.
MANAGEMENT RATIO
This ratio indicates the proportion of gross income being used for meeting the
management expenses. An increase in the ratio indicates a decline in the efficiency of the
bank.
Management Ratio = Management Expenses / Gross Income
The management expenses included salary; allowances, provident fund contribution, rent,
legal expenses, audit expenses and other expenses (excluded provisions).

Management
Ratio =
Management
Expenses /
Gross Income

March

March

March

March

March

2013

2012

2011

2010

2009

0.116

0.128

0.144

0.144

0.141

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Table 18. Management Ratio for HDFC Bank for the Financial Years 2008-09 until 20122013.

Management Ratio = Management Expenses / Gross Income


0.14

39873
40238

0.14

40603

0.14
0.13

40969
0.12

41334
Figure 16.

Management Ratio for HDFC Bank for the Financial Years 2008-09 until

2012-2013.
INTERPRETATION: Management ratio is high (0.144) in 2010 and 2011 because of
increase in salary expense as the employees increased due to the expansion of the
branches to semi urban areas. It gradually decreased as the company maintained its
expenses and increased its gross income.
ESTABLISHMENT RATIO
This ratio indicates the proportion of gross income being used for meeting the
establishment expenses. An increase in the ratio indicates a decline in the efficiency of
the bank.
Establishment Ratio = Establishment Expenses / Gross Income.
March

March

March

March

March

2013

2012

2011

2010

2009

0.095

0.105

0.117

0.115

0.114

Establishment
Ratio =
Establishment
Expenses /
Gross Income

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Table 18. Establishment Ratio for HDFC Bank for the Financial Years 2008-09 until
2012-2013.

Establishment Ratio = Establishment Expenses / Gross Income


0.11

0.1

0.12

0.12

0.11

Establishment Ratio = Establishment Expenses / Gross Income


Figure 17.

Establishment Ratio for HDFC Bank for the Financial Years 2008-09 until

2012-2013.
INTERPRETATION: Establishment ratio is high during the years 2010 2011 and 2012
because of huge expansion of the bank increase in costs like employee salaries and others
but the bank is gradually decreasing the expenses by generating more income in 2013.
DUPONT ANALYSIS
DuPont analysis tells us that three things affect ROE: - Operating efficiency, which is
measured by profit margin. - Asset use efficiency, which is measured by total asset
turnover. - Financial leverage, which is measured by the equity multiplier.
ROE = Profit Margin (Profit/Sales) * Total Asset Turnover (Sales/Assets) * Equity
Multiplier (Assets/Equity)

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Figure 18.

Values for HDFC Bank for DuPont Analysis for the Financial Years 2008-

09 until 2012-2013.
DuPont Financial Analysis Model is a rather straightforward method for assessing the
factors that influence a firms financial performance.
S.

Particular

March

March

March

March

March

No.
1

s
Average

2013
400,331.9

2012
337,909.4

2011
277,352.6

2010
222,458.5

2009

Assets
Average

36,214.14

29,924.68

25,379.27

21,522.49

15,052.73

Equity
Interest

35,064.87

27,286.35

19,928.21

16,172.90

16,332.26

Revenue
Noninterest

6,852.62

5,243.69

4,335.15

3,983.10

3,470.63

6,726.28

5,167.09

3,926.40

2,948.70

2,244.94

Revenue
5

Net Income

183,270.78

Table 20. Values for HDFC Bank for DuPont Analysis for the Financial Years 2008-09
until 2012-2013.
March
Return On

(5/2)

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ROE

2013
0.1857

March March March March


2012
0.172

2011
0.154

2010
0.137

2009
0.149

Page 73

Average Equity
Return On
Average Assets
Equity
Multiplier
Net Profit
Margin
Average Total
Asset Turn Over

(5/1)

ROA

0.0168

0.015

0.014

0.013

0.012

(1/2)

EM

11.0546

11.29

10.92

10.33

12.17

(5/(3+4))

NPM

0.1605

0.158

0.161

0.146

0.113

((3+4)/1)

ATAT

0.1047

0.096

0.087

0.090

0.108

Table 21. DuPont Analysis Figures for the Financial Years 2008-09 until 2012-2013.
Return on Equity (ROE): measures overall profitability of the financial institute per
rupee of equity
Return on Assets (ROA): measures profit generated relative to the financial institutes
assets.
Equity Multiplier (EM): measures the extent to which assets of the financial institute
are funded with equity relative to debt.
Profit Margin (PM): measures the ability to pay expenses and generate net income from
interest and noninterest income.
Asset Utilization (AU): measures the amount of interest and noninterest income
generated per dollar of total assets.
Return on Equity and Its Components
ROE is defined as:
ROE=

Net income

___

Total equity capital

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It measures the amount of net income after taxes earned for each Rupee of equity capital
contributed by the banks stockholders. Taking these data from the financial statements of
HDFC bank, ROE can be calculated into values as mentioned above in the table.
Generally, bank stockholders prefer ROE to be high. It is possible; however, that an
increase in ROE indicates increased risk. For example, ROE increases if total equity
capital decreases relative to net income. A large drop in equity capital may result in a
violation of minimum regulatory capital standards and an increased risk of insolvency for
the bank. An increase in ROE may simply result from an increase in a banks leverage
an increase in its debt-to-equity ratio.
Generally, bank stockholders prefer ROE to be high.
ROE can be decomposed into two components as
ROE = ROA x EM
ROA = Net Income X Total Assets
Total Assets Equity Capital
High values for these ratios produce high ROEs, but, as noted, managers should be
concerned about the source of high ROEs. For example, an increase in ROE due to an
increase in the EM means that the banks leverage, and therefore its solvency risk, has
increased. A further breakdown of a banks profitability is that of dividing (ROA) into its
profit margin (PM) and asset utilization (AU) ratio components
ROA= Net income X Total operating income
Total operating income Total assets
ROA= PM X AU

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PM measures the banks ability to control the expenses. AU measures the banks ability
to generate the income from assets.
INTERPRETATION: The overall ROE of the bank is increasing which is a good sign.
In 2009, ROE is 14.9% gradually it increases and recorded highest in the year 2013
(18.57). At the same time EM is fluctuating and decreased from 2009 (12.17) to 2010
(10.33) and again it increased in the year 2013 (11.054). This indicates that because of
high expansion bank has experienced some decrease during those years and now it is able
to have control over the assets. All the other components are indicating the soundness of
the bank.

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TIME MOTION STUDIES


Time motion studies have helped identify the efficiency of the counters under
consideration by timing the activities of the counters for three consecutive days.
Average Time duration for Transaction of 2 counters on three consecutive days
16-6-14- 16-6-14- 17-6-14- 17-6-14- 18-6-14- 18-6-14Cash Deposits
Cheques
Encashment
Cheques Deposit

A
03:46.1

B
02:43.5

A
03:56.4

B
02:43.8

A
03:58.0

B
02:56.4

03:33.5

04:52.7

04:24.4

03:27.6

04:15.7

03:48.9

02:40.8

01:36.0

02:49.8

02:03.2

02:29.1

01:47.0

Table 22. Average Time per transaction of two counters on three consecutive days as part
of Time Motion Studies.
Average Time per Transaction at 2 counters and their cumulative average time.
Counter A
03:35.1
Counter B
02:51.6
Average
03:13.3
Table 23. Cumulative Average Time per transaction for each counter as part of Time
Motion Studies.
Average Time for Cash Deposit

Figure 19. Graphical representation of the average time for cash deposits at two counters
as part of Time Motion Studies.

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Average Time for Cheque Deposit

Figure 20. Graphical representation of the average time for Cheques Deposits at two
counters as part of Time Motion Studies.
Average Time for Cheque Encashment

Figure 21. Graphical representation of the average time for Cheques Encashment at two
counters as part of Time Motion Studies.
From the above tables and graphs, it is evident that Counter-A is better performing than
Counter-B and that the average time for cheques deposit is lower than that for cash
deposits or cheques encashment. Cheques encashment occupies the most time or any of
the transactions. Counter-B is more consistent in time consumed for individual
transaction. Furthermore, on comparison of the variations of times for the transactions at
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the counters, it is observed that Counter-A shows more inter-day variations than CounterB.
In addition when seen as in relation with the footfall studies data, one can draw
conclusions that both counters encounter the most transactions on Monday followed by
Tuesday and decreases to a minimum on Wednesday. Furthermore, Counter-B handles a
higher volume of the footfall as compared to Counter-A. The detailed data can be found
in the annexures I & II.
FOOTFALL STUDIES
Footfall studies are a wonderful tool to analyze the flow of customers into the bank on a
particular day. These studies were conducted at the bank from Monday to Friday and for
the duration of the banking hours of 10am until 4pm.
The table below shows the number of customers who come to the tellers in HDFC Bank
Sector 9 Chandigarh during a usual business week. The duration of observation was from
Monday to Friday.

24-06-14
25-06-14
26-06-14
27-06-14
30-06-14

Tuesday
Wednesday
Thursday
Friday
Monday

10-

11-

12-

1-

2-

3-

Daily

11am
19
12
8
11
14

12pm
17
23
11
15
20

1pm
13
14
16
25
21

2pm
8
10
7
17
23

3pm
6
8
12
11
16

4pm
11
7
11
13
12

Total
74
74
65
92
106

Table 24. Footfall on 5 working days during business hours at the Counter: Tellers and
the respective Daily total footfall.
From the data above, it is clear that the busiest days for the tellers are Monday, Tuesday
and Friday. The total footfall is identical on Tuesday and Wednesday, decreases on
Thursday and peaks on Friday and Monday. However, the hour-to-hour footfall is varied
and the general trend is of a busier morning half as compared to a relaxed afternoon half
of the business hours.

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Foot Fall at Tellers over 5 working days during


Business Hours
25
23

19

17
13
8

11

16

14

12

10

41814

8 7

11

11

41816
11-12pm

17
11

23

16

14

13

12

41815
10-11am

15

12 11

20 21

41817

12-1pm

1-2pm

41820

2-3pm

3-4pm

Figure 22. Graphical representation of the Footfall at the Teller counters during business
hours on 5 working days and categorization as per date.
The above graph corroborates the data table given above further enforcing the point that
the teller counters encounter the most footfall on Monday, Tuesday and Friday. The above
data also confirms the data collected during the time motion studies that most influx of
customers is on Monday followed by Tuesday and the least on Wednesday.

Foot Fall at Tellers over 5 working days during Business Hours


25

23
19

17

15

14

12

11

11

13 14

17

16

10-11am

23

21

20

11-12pm
24-06-14

12-1pm
25-06-14

16
12 11

10
7

1-2pm
26-06-14

27-06-14

11

11

13 12

2-3pm

3-4pm

30-06-14

Figure 23. Graphical representation of the Footfall at the Teller counters during business
hours on 5 working days and categorization as per hour of operation.

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The above graph is another aspect of interpreting the data collected in the table given
above. It can be observed distinctly that the busiest hours of business are from 11am until
1pm. The number of customers visiting the teller counters are consistently on the higher
side during the business hours of 11am until 1pm. Furthermore, the inflow of customers
to the counters diminishes quite rapidly from 1pm onwards.
The general inflow of customers at the tellers is high during on Monday, Tuesday and
Friday with the lowest footfall on Wednesday.

24-06-14
25-06-14
26-06-14
27-06-14
30-06-14

Tuesday
Wednesday
Thursday
Friday
Monday

10-

11-

12-

1-

2-

3-

Daily

11am
5
10
5
6
9

12pm
4
5
7
5
8

1pm
4
6
8
11
11

2pm
4
7
4
10
8

3pm
2
3
5
6
8

4pm
4
4
7
7
5

Total
23
35
36
45
49

Table 25. Footfall on 5 working days during business hours at the Counter: Welcome
Desk and the respective Daily total footfall.

Foot Fall at Welcome Desk over 5 working days during Business Hours
11

10

4 4 4

41814

41815
10-11am

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7
5

7
4

41816
11-12pm

12-1pm

11

10

9
6

2-3pm

8 8
5

41817
1-2pm

41820
3-4pm

Page 81

Figure 24. Graphical representation of the Footfall at the Welcome Desk counter during
business hours on 5 working days and categorization as per Date.

Foot Fall at Welcome Desk over 5 working days during Business Hours
11 11

10

6
4

10

8
6

7
4

8
5

4
2

10-11am

11-12pm

12-1pm

24-06-14

25-06-14

1-2pm
26-06-14

7 7

2-3pm

27-06-14

4 4

3-4pm

30-06-14

Figure 25. Graphical representation of the Footfall at the Welcome Desk counter during
business hours on 5 working days and categorization as per hour of operation.
The general trend of the footfall at the welcome desk is of progressive increase to the end
of week and the inflow of customers to the welcome desk is uniformly higher on Friday
as compared to the other days of the week. The number of customers at the beginning of
the week is low as well as uniform throughout the day. However, on Friday and on
Monday, the number of customers is highest during 12 and 1pm. Moreover, on Friday, the
number of customers is consistently around the high mark during the business hour of 1
& 2pm. It may be seen that the influx of customers during last business hour is very low
on all the days of observation.

24-06-14
25-06-14
26-06-14
27-06-14
30-06-14

Tuesday
Wednesday
Thursday
Friday
Monday

Abhirama B Sarepaka
of 112

10-

11-

12-

1-

2-

3-

Daily

11am
3
1
0
0
0

12pm
2
1
0
1
1

1pm
1
0
1
1
1

2pm
2
2
1
1
1

3pm
0
0
1
1
1

4pm
0
0
1
0
0

Total
8
4
4
4
4

Page 82

Table 26. Footfall on 5 working days during business hours at the Counter: Asset Desk
Management and the respective Daily total footfall.

Foot Fall at ADM Counter over 5 working days during Business Hours
3

1 1

41814 0 0

1 1 1 1

0
0 0
41815
10-11am

1 1 1 1

0 0 41816

11-12pm

12-1pm

1-2pm

41817
2-3pm

1 1 1 1

41820

3-4pm

Figure 26. Graphical representation of the Footfall at the Asset Desk Management
counter during business hours on 5 working days and categorization as per Date.

Foot Fall at ADM Counter over 5 working days during Business Hours
3

0 0 0
10-11am

2 2

1 1

0
11-12pm
24-06-14

Abhirama B Sarepaka
of 112

1 1 1

0
12-1pm
25-06-14

1 1 1

1-2pm
26-06-14

27-06-14

1 1 1

0 2-3pm
0

0 3-4pm
0
0 0

30-06-14

Page 83

Figure 27. Graphical representation of the Footfall at the Asset Desk Management
counter during business hours on 5 working days and categorization as per hour of
operation.
The footfall at the ADM counter is uniform on all days of the week. In addition, there is
no footfall during 3 & 4pm on almost all the days of observation. In addition, there is
about one customer per hour at the ADM counter.

24-06-14
25-06-14
26-06-14
27-06-14
30-06-14

Tuesday
Wednesday
Thursday
Friday
Monday

10-

11-

12-

1-

2-

3-

Daily

11am
3
1
0
1
0

12pm
1
1
1
0
0

1pm
1
0
3
0
0

2pm
1
1
1
0
0

3pm
1
0
1
1
1

4pm
2
0
1
2
1

Total
9
3
7
4
2

Table 27. Footfall on 5 working days during business hours at the Counter: Assistant
Branch Manager and the respective Daily total footfall.

Foot Fall at ABM Counter over 5 working days during Business Hours
3

1 1 1 1

1 1

0
0 0
41815

41814

10-11am

11-12pm

1 1 1

1 1

041817
0 0

41816
12-1pm

1-2pm

2-3pm

0 041820
0 0
3-4pm

Figure 28. Graphical representation of the Footfall at the Assistant Branch Manager
counter during business hours on 5 working days and categorization as per Date.

Abhirama B Sarepaka
of 112

Page 84

Foot Fall at ABM Counter over 5 working days during Business Hours
3

0
0
10-11am

1 1 1

0 0
11-12pm
24-06-14

1 1 1

0
0 0
12-1pm
25-06-14

1-2pm0 0
26-06-14

1 1 1

0
2-3pm

27-06-14

0
3-4pm

30-06-14

Figure 29. Graphical representation of the Footfall at the Assistant Branch Manager
counter during business hours on 5 working days and categorization as per hour of
operation.
Here also, as in the case of the ADM counter, the ABM counter also sees very low
volumes of customers. The footfall at the ABM counter is on an average one customer
per business hour throughout the days of observation. However, it is noteworthy to
observe that three is a higher consistency in the influx of customers during the last hour
of the working hours of the bank. Another point to note is the lack of customer at the
ABM on a Monday between 10am and 2pm.

24-06-14
25-06-14
26-06-14
27-06-14
30-06-14

Tuesday
Wednesday
Thursday
Friday
Monday

Abhirama B Sarepaka
of 112

10-

11-

12-

1-

2-

3-

Daily

11am
1
2
0
0
0

12pm
2
1
1
1
1

1pm
1
1
1
2
0

2pm
0
0
1
1
1

3pm
0
0
1
0
2

4pm
1
2
1
0
0

Total
5
6
5
4
4

Page 85

Table 28. Footfall on 5 working days during business hours at the Counter: New
Accounts and the respective Daily total footfall.

Foot Fall at New Accounts over 5 working days during Business Hours
2

1 1

0 0
41814

1 1 1 1 1

0 0
41815
10-11am

11-12pm

41816
12-1pm

1-2pm

41817 0 0
2-3pm

0
41820

3-4pm

Figure 30. Graphical representation of the Footfall at the New Account counter during
business hours on 5 working days and categorization as per Date.

Foot Fall at New Accounts over 5 working days during Business Hours
2

1 1 1 1

0 0 0
10-11am

11-12pm
24-06-14

1 1 1

12-1pm 0
25-06-14

1 1 1

0 1-2pm
0
26-06-14

27-06-14

0 2-3pm
0
0

3-4pm0 0

30-06-14

Figure 31. Graphical representation of the Footfall at the New Account counter during
business hours on 5 working days and categorization as per hour of operation.

Abhirama B Sarepaka
of 112

Page 86

Again, the trend of the footfall at the New Accounts counter is virtually identical to those
seen with the ADM and the ABM counters. There is on average one customer per
business hour throughout on the days of observation of the New Accounts counter.
Furthermore, it is seen that during the initial hour of the banks operations i.e. 10am to
11am there is sporadic footfall. However, from 11am onwards the footfall is consistent
with a slight dip around 1pm.
In addition, there is no specific hoard of customers on any day during the week. There is
regular influx of customers to the tune of 4-5 customers per day.

24-06-14
25-06-14
26-06-14
27-06-14
30-06-14

Tuesday
Wednesday
Thursday
Friday
Monday

10-

11-

12-

1-

2-

3-

Daily

11am
2
1
0
0
0

12pm
1
0
1
1
0

1pm
1
0
1
0
2

2pm
1
1
1
1
0

3pm
0
2
1
1
1

4pm
1
0
1
0
1

Total
6
4
5
3
4

Table 29. Footfall on 5 working days during business hours at the Counter: Current
Accounts and the respective Daily total footfall.

Foot Fall at Currrent Accounts over 5 working days during Business Hours
2

1 1 1

41814 0

0 41815
0
10-11am

Abhirama B Sarepaka
of 112

1 1 1 1 1

0
11-12pm

41816
12-1pm

1-2pm

1 1

0
41817
2-3pm

1 1

0 0 41820
0

3-4pm

Page 87

Figure 32. Graphical representation of the Footfall at the Current Accounts counter
during business hours on 5 working days and categorization as per Date.

Foot Fall at Current Accounts over 5 working days during Business Hours
2

0 0 0
10-11am

1 1

0
0
11-12pm
24-06-14

0
0
12-1pm
25-06-14

1 1 1 1

1 1 1

1-2pm 0
26-06-14

27-06-14

0 2-3pm

0
0
3-4pm

30-06-14

Figure 33. Graphical representation of the Footfall at the Current Accounts counter
during business hours on 5 working days and categorization as per hour of operation.
Yet again, it can be seen that the trend of the footfall at the Current Accounts counter is
essentially indistinguishable to those seen with the New Accounts, ADM and the ABM
counters. There is on average one customer per business hour throughout on the days of
observation of the New Accounts counter. Furthermore, it is seen that during the initial
hour of the banks operations i.e. 10am to 11am there is intermittent footfall.
In addition, there is no specific hoard of customers on any day during the week. There is
regular influx of customers to the tune of 4-5 customers per day. However, it can be seen
that the footfall on a Friday is least with customers preferring to walk in after the
lunchtime. Furthermore, Thursday sees the most consistent entry of customers.

24-06-14

Tuesday

Abhirama B Sarepaka
of 112

10-

11-

12-

1-

2-

3-

Daily

11am
1

12pm
0

1pm
1

2pm
0

3pm
1

4pm
1

Total
4

Page 88

25-06-14 Wednesday
26-06-14 Thursday
27-06-14
Friday
30-06-14
Monday

1
0
0
1

0
0
0
0

0
0
2
1

0
1
0
0

0
1
0
0

0
1
0
1

1
3
2
3

Table 30. Footfall on 5 working days during business hours at the Counter: PB
Authorizer-1 and the respective Daily total footfall.

Foot Fall at PB Authorizer-1 over 5 working days during Business Hours


2

1 1

0 41814
0

1 1 1

0 41815
0 0 0 0
10-11am

0 0 41816
0

11-12pm

0 0 41817
0 0 0

12-1pm

1-2pm

2-3pm

0 41820
0 0

3-4pm

Figure 34. Graphical representation of the Footfall at the PB Authorizer-1 counter during
business hours on 5 working days and categorization as per Date.

Foot Fall at PB Authorizer-1 over 5 working days during Business Hours


2

1 1

0 0
10-11am

011-12pm
0 0 0 0
24-06-14

Abhirama B Sarepaka
of 112

0 0
12-1pm
25-06-14

0 1-2pm
0
0 0
26-06-14

27-06-14

0
0 0
2-3pm

0
0
3-4pm

30-06-14

Page 89

Figure 35. Graphical representation of the Footfall at the PB Authorizer-1 counter during
business hours on 5 working days and categorization as per hour of operation.
From the data and graphs, it is evident that there is essentially no footfall during the
period of 11am until 12pm. Furthermore, from 1pm until 2 pm the footfall is again
negligible. In addition, there is negligible footfall on Wednesday and for half of Thursday.
On Friday there is again, only two individuals have called upon the PB Authorizer-1.
Even on an average, the number of individuals walking to the PB Authorizer-1 has been
at best sporadic and consistently low.

24-06-14
25-06-14
26-06-14
27-06-14
30-06-14

Tuesday
Wednesday
Thursday
Friday
Monday

10-

11-

12-

1-

2-

3-

Daily

11am
1
1
0
0
1

12pm
0
0
0
0
0

1pm
1
0
0
2
1

2pm
0
0
1
0
0

3pm
1
0
1
0
0

4pm
1
0
1
0
1

Total
4
1
3
2
3

Table 31. Footfall on 5 working days during business hours at the Counter: Locker
Operations and the respective Daily total footfall.

Foot Fall at Locker Operations over 5 working days during Business Hours
2

0 41814
0

1 1

1 1 1

0 41815
0 0 0 0
10-11am

11-12pm

0 0 41816
0
12-1pm

0 0 41817
0 0 0
1-2pm

2-3pm

0 41820
0 0

3-4pm

Figure 36. Graphical representation of the Footfall at the Locker Operations counter
during business hours on 5 working days and categorization as per Date.

Abhirama B Sarepaka
of 112

Page 90

Foot Fall at Locker Operations over 5 working days during Business Hours
2

1 1

0 0
10-11am

011-12pm
0 0 0 0
24-06-14

0 0
12-1pm
25-06-14

0 1-2pm
0
0 0
26-06-14

27-06-14

0
0 0
2-3pm

0
0
3-4pm

30-06-14

Figure 37. Graphical representation of the Footfall at the Locker Operations counter
during business hours on 5 working days and categorization as per hour of operation.
The data indicates that the average footfall for locker operations in the bank is about one
person per hour per day. It is also seen that there is no influx of customers for locker
operations from 11am until 12pm. In addition, very rarely customers come to operate
their lockers from 1pm until 2pm. Even at other times during the day, the inflow is
erratic. Furthermore, the footfall on Wednesday and Friday is hardly one person during
the entire day.

24-06-14
25-06-14
26-06-14
27-06-14
30-06-14

Tuesday
Wednesday
Thursday
Friday
Monday

10-

11-

12-

1-

2-

3-

Daily

11am
1
1
0
1
1

12pm
1
1
0
1
0

1pm
1
0
1
2
0

2pm
1
1
0
0
1

3pm
0
0
0
0
2

4pm
0
1
0
0
0

Total
4
4
1
4
4

Table 32. Footfall on 5 working days during business hours at the Counter: PB
Authorizer-2 and the respective Daily total footfall.

Abhirama B Sarepaka
of 112

Page 91

Foot Fall at PB Authorizer-2 over 5 working days during Business Hours


2

1 1 1 1

1 1

41814 0 0

0
0
41815
10-11am

1 1

0 0 41816
0 0 0

11-12pm

12-1pm

0 0 0
41817

1-2pm

2-3pm

0 41820
0

3-4pm

Figure 38. Graphical representation of the Footfall at the PB Authorizer-2 counter during
business hours on 5 working days and categorization as per Date.

Foot Fall at PB Authorizer-2 over 5 working days during Business Hours


2

1 1

1 1

0
10-11am

1 1

0
0
11-12pm
24-06-14

0
0
12-1pm
25-06-14

1 1

0 0
1-2pm
26-06-14

27-06-14

0 2-3pm
0 0 0

0 3-4pm
0 0 0

30-06-14

Figure 39. Graphical representation of the Footfall at the PB Authorizer-2 counter during
business hours on 5 working days and categorization as per hour of operation.
From the data and graphs, it is evident that there is essentially negligible footfall during
the period of 2pm until 3pm. Furthermore, from 3pm until 4 pm the footfall is again
negligible. In addition, there is negligible footfall on Thursday and for most part of
Friday. Only on Monday and Tuesday, some activity can be seen at the PB Authorizer-2.

Abhirama B Sarepaka
of 112

Page 92

Still, on an average, the number of individuals walking to the PB Authorizer-2 has been at
best intermittent, irregular and consistently low.

24-06-14
25-06-14
26-06-14
27-06-14
30-06-14

Tuesday
Wednesday
Thursday
Friday
Monday

10-

11-

12-

1-

2-

3-

Daily

11am
1
1
0
0
1

12pm
1
1
0
0
0

1pm
1
0
0
1
1

2pm
0
0
0
1
1

3pm
0
0
0
0
2

4pm
2
0
0
2
1

Total
5
2
0
4
6

Table 33. Footfall on 5 working days during business hours at the Counter: Relationship
Manager-1 and the respective Daily total footfall.

Foot Fall at Relationship Manager-1 over 5 working days during Business Hours
2

1 1 1

0 0
41814

1 1

1 1

0 0 0 0
41815
10-11am

11-12pm

0 0 41816
0 0 0 0
12-1pm

1-2pm

0 0 41817 0
2-3pm

1 1

0 41820
3-4pm

Figure 40. Graphical representation of the Footfall at the Relationship Manager-1 counter
during business hours on 5 working days and categorization as per Date.

Abhirama B Sarepaka
of 112

Page 93

Foot Fall at Relationship Manager-1 over 5 working days during Business Hours
2

1 1

0 0
10-11am

1 1

0 0 0
11-12pm
24-06-14

1 1

0 0
12-1pm
25-06-14

1 1

0 1-2pm
0 0
26-06-14

0 2-3pm
0 0 0

27-06-14

0 0
3-4pm

30-06-14

Figure 41. Graphical representation of the Footfall at the Relationship Manager-1 counter
during business hours on 5 working days and categorization as per hour of operation.
At the Relationship Managers desk, the number of people visiting during the week
ranges from a trifling two people on a Wednesday and none on Thursday to six customers
on Monday and five on Tuesday. Additionally, the distribution of the customers coming
to the relationship managers desk during the day is again very uneven because no
specific pattern can be identified. However, it is evident from the data, the graphs that the
time from 2pm to 3pm is extremely low, and only on one day that customers came to the
desk during this time.

24-06-14
25-06-14
26-06-14
27-06-14
30-06-14
Table 34.

Tuesday
Wednesda

10-

11-

12-

1-

2-

3-

Daily

11am
1

12pm
1

1pm
1

2pm
1

3pm
0

4pm
2

Total
6

1
2
1
y
Thursday
2
1
0
Friday
0
1
0
Monday
0
2
2
Footfall on 5 working days during business

0
0
0
hours at

4
0
1
4
0
0
1
1
1
6
the Counter: Relationship

Manager-2 and the respective Daily total footfall.

Abhirama B Sarepaka
of 112

Page 94

Foot Fall at Relationship Manager-2 over 5 working days during Business Hours
2

1 1 1 1

41814 0

0 0 0
41815
10-11am

2 2

0 0 0
41816

11-12pm

12-1pm

1-2pm

1 1

0 0 0 0
41817
2-3pm

0
41820

3-4pm

Figure 42. Graphical representation of the Footfall at the Relationship Manager-2 counter
during business hours on 5 working days and categorization as per Date.

Foot Fall at Relationship Manager-2 over 5 working days during Business Hours
2

1 1

1 1

0
10-11am

1 1

0
0
11-12pm
24-06-14

0
0
12-1pm
25-06-14

1 1

0 0
1-2pm
26-06-14

27-06-14

0 2-3pm
0 0 0

0 3-4pm
0 0 0

30-06-14

Figure 43. Graphical representation of the Footfall at the Relationship Manager-2 counter
during business hours on 5 working days and categorization as per hour of operation.
From the graphs above, it is clear that the general distribution of customer inflow to the
relationship managers desk is uniform throughout the day and dwindles only in the last
two hours of business. In addition, Thursday and Friday are the lean days, while
Wednesday is a below average day. Monday and Tuesday see a higher than average
footfall with the desk on Monday being fully occupied throughout the day.
Abhirama B Sarepaka
of 112

Page 95

24-06-14
25-06-14
26-06-14
27-06-14
30-06-14

Tuesday
Wednesday
Thursday
Friday
Monday

10-

11-

12-

1-

2-

3-

Daily

11am
2
2
0
0
0

12pm
2
1
0
0
2

1pm
1
1
0
1
0

2pm
0
0
0
0
1

3pm
0
0
0
0
2

4pm
2
0
1
0
1

Total
7
4
1
1
6

Table 35. Footfall on 5 working days during business hours at the Counter: Relationship
Manager-3 and the respective Daily total footfall.

Foot Fall at Relationship Manager-3 over 5 working days during Business Hours
2 2

1 1

0 0
41814

0 0 0
41815
10-11am

11-12pm

0 041816
0 0 0
12-1pm

0 041817
0 0 0
1-2pm

2-3pm

0
41820

3-4pm

Figure 44. Graphical representation of the Footfall at the Relationship Manager-3 counter
during business hours on 5 working days and categorization as per Date.

Abhirama B Sarepaka
of 112

Page 96

Foot Fall at Relationship Manager-3 over 5 working days during Business Hours
2 2

0 0 0
10-11am

1 1

0 0
11-12pm

0
0
12-1pm

24-06-14

25-06-14

0 1-2pm
0 0 0
26-06-14

0 2-3pm
0 0 0

27-06-14

0
0
3-4pm

30-06-14

Figure 45. Graphical representation of the Footfall at the Relationship Manager-3 counter
during business hours on 5 working days and categorization as per hour of operation.
As was the case with the first Relationship Manager, the average footfall at the
relationship manager is essential the same. Again, the footfall from 1pm until 3 pm is
appalling. In addition, the relationship manager has only one person in the entire day on
Thursday as well as Friday. Monday and Tuesday see the most amount of traffic at the
relationship managers desk.

24-06-14
25-06-14
26-06-14
27-06-14
30-06-14

Tuesday
Wednesday
Thursday
Friday
Monday

10-

11-

12-

1-

2-

3-

Daily

11am
2
0
0
0
0

12pm
2
1
0
0
1

1pm
1
0
0
0
1

2pm
1
0
0
0
1

3pm
0
0
0
0
1

4pm
0
0
0
0
0

Total
6
1
0
0
4

Table 36. Footfall on 5 working days during business hours at the Counter: Forex-1 and
the respective Daily total footfall.

Abhirama B Sarepaka
of 112

Page 97

Foot Fall at Forex-1 over 5 working days during Business Hours

2 2

1 1

41814 0 0

1 1 1 1

0 0 0 0
41815

10-11am

0 0 41816
0 0 0 0

11-12pm

12-1pm

0 0 41817
0 0 0 0

1-2pm

2-3pm

41820

3-4pm

Figure 46. Graphical representation of the Footfall at the Forex-1 counter during business
hours on 5 working days and categorization as per Date.

Foot Fall at Forex-1 over 5 working days during Business Hours


2

0 0 0 0
10-11am

0 0
11-12pm
24-06-14

0 0 0
12-1pm
25-06-14

0 0 0
1-2pm
26-06-14

27-06-14

0 2-3pm
0 0 0

0 3-4pm
0 0 0 0

30-06-14

Figure 47. Graphical representation of the Footfall at the Forex-1 counter during business
hours on 5 working days and categorization as per hour of operation.
The forex-1 counter has an average footfall of one person per day. It has been observed
that on Thursday and Friday, there has been no traffic at the counter. The general footfall
has been on Monday and Tuesday with Wednesday receiving the average footfall of one
person. It has also been witnessed that the most footfall is from 11am until 2pm on the
days of observation. In addition, there is no traffic from 3 to 4pm. In addition, there is

Abhirama B Sarepaka
of 112

Page 98

negligible footfall from 2pm to 3pm and an average footfall during the first hour of
business.

24-06-14
25-06-14
26-06-14
27-06-14
30-06-14
Table 37.

Tuesday
Wednesda

10-

11-

12-

1-

2-

3-

Daily

11am
0

12pm
0

1pm
1

2pm
0

3pm
1

4pm
0

Total
2

0
0
1
y
Thursday
1
2
0
Friday
0
0
0
Monday
1
1
1
Footfall on 5 working days during business

1
0
0
1
4
0
0
0
0
0
0
0
3
hours at the Counter: Forex-2 and

the respective Daily total footfall.

Foot Fall at Forex-2 over 5 working


days during Business Hours
2
1

0 041814
0

0 041815
0 0 0

10-11am

11-12pm

0 0 0
41816
12-1pm

1 1 1

0 041817
0 0 0 0
1-2pm

2-3pm

0 0 0
41820
3-4pm

Figure 48. Graphical representation of the Footfall at the Forex-2 counter during business
hours on 5 working days and categorization as per Date.

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Page 99

Foot Fall at Forex-2


over 5 working days during Business Hours
2
1

010-11am
0 0

1 1

011-12pm
0 0
24-06-14

0 0
12-1pm
25-06-14

0 1-2pm
0 0 0 0
26-06-14

0 0 0 0
2-3pm

27-06-14

0 3-4pm
0 0 0

30-06-14

Figure 49. Graphical representation of the Footfall at the Forex-2 counter during business
hours on 5 working days and categorization as per hour of operation.
Again, the trend is very similar to the forex-1 counter. There is absolutely no influx of
customers to the forex-2 counter on Friday. In addition, there is an average footfall of
only 1-2 persons per day on the rest of the days. Tuesday and Wednesday show a very
marginal footfall that increases slightly on Thursday.
When evaluating the data based on footfall per business hour, it is seen that no customers
come to the counter during 1-2pm stretch. Furthermore, footfall from 2pm until 4pm is a
very meagre one person per hour. The relative higher footfall can be observed from 10am
until 1pm with an average of two persons per hour.

24-06-14
25-06-14
26-06-14
27-06-14
30-06-14

Tuesday
Wednesday
Thursday
Friday
Monday

10-

11-

12-

1-

2-

3-

Daily

11am
0
0
0
1
0

12pm
0
0
0
0
1

1pm
2
0
0
0
1

2pm
0
1
0
0
0

3pm
0
0
0
0
0

4pm
0
1
0
0
0

Total
2
2
0
1
2

Table 38. Footfall on 5 working days during business hours at the Counter: Forex-3 and
the respective Daily total footfall.

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Foot Fall at Forex-3 over 5 working days during Business Hours


2

0 0 41814
0 0 0

0 0 41815
0
0
10-11am

0 0 41816
0 0 0 0

11-12pm

12-1pm

1 1

0 41817
0 0 0 0

1-2pm

2-3pm

0 0 0
41820

3-4pm

Figure 50. Graphical representation of the Footfall at the Forex-3 counter during business
hours on 5 working days and categorization as per Date.

Foot Fall at Forex-3 over 5 working days during Business Hours


2

010-11am
0 0
0

011-12pm
0 0 0
24-06-14

0 0 0
12-1pm
25-06-14

0 1-2pm
0 0 0
26-06-14

27-06-14

0 2-3pm
0 0 0 0

0 3-4pm
0 0 0

30-06-14

Figure 51. Graphical representation of the Footfall at the Forex-3 counter during business
hours on 5 working days and categorization as per hour of operation.
Again, the trend is very similar to the other two forex counters. There is absolutely no
influx of customers to the forex-3 counter on Thursday. In addition, there is an average
footfall of only one person per day on the rest of the days.

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When evaluating the data based on footfall per business hour, it is seen that no customers
come to the counter during 2-3pm stretch. Furthermore, footfall from 10am until 12pm
and from 3pm until 4pm is a very meagre one person per hour. The relative higher
footfall can be observed from 12pm until 1pm with an average of two persons per hour.
In addition, the footfall is highly erratic and sporadic.

24-06-14
25-06-14
26-06-14
27-06-14
30-06-14

Tuesday
Wednesday
Thursday
Friday
Monday

10-

11-

12-

1-

2-

3-

Daily

11am
2
0
1
1
0

12pm
1
0
2
1
0

1pm
2
1
1
0
2

2pm
0
4
1
0
2

3pm
0
0
2
0
2

4pm
1
0
1
0
0

Total
6
5
8
2
6

Table 39. Footfall on 5 working days during business hours at the Counter: Forex Teller
and the respective Daily total footfall.

Foot Fall at Forex Teller over 5 working days during Business Hours
4

2
1

2
1

0 0
41814

0 0 41815 0 0
10-11am

11-12pm

2
1 1

2 2 2
1

0 0 0 0
41817

41816
12-1pm

1 1

1-2pm

2-3pm

0 0 41820

3-4pm

Figure 52. Graphical representation of the Footfall at the Forex Teller counter during
business hours on 5 working days and categorization as per Date.

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Foot Fall at Forex Teller over 5 working days during Business Hours
4

2
1 1

0
0
10-11am

2
1

0
0
11-12pm
24-06-14

1 1

0
12-1pm
25-06-14

0 1-2pm0
26-06-14

27-06-14

0 2-3pm
0
0

0
0 0
3-4pm

30-06-14

Figure 53. Graphical representation of the Footfall at the Forex Teller counter during
business hours on 5 working days and categorization as per hour of operation.

The forex teller sees an average footfall of five persons per day and a peak traffic of
seven people during the 1pm to 2pm business hour. The footfall is low at the beginning of
the day and gradually increases until 1pm and starts dwindling around 2pm. Furthermore,
Monday, Tuesday and Thursday sees a higher traffic as compared to Wednesday and
Friday. When comparing Wednesday and Friday, it is found that Wednesday has a higher
influx. Friday sees the least traffic of all the days of observation.

From the footfall studies and the time motion studies, it can be observed that Mondays
and Fridays are the busiest days for the tellers, while Wednesdays are busy days for the
welcome desk and for the rest of the branch, the spread of the influx of customers is fairly
uniform no specific pattern and busy or down time. These studies also indicate that the
time from 11am until 2pm handles the most traffic of customers in the branch. The last
hour of business reflects the lowest footfall on the days of observation.

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RECOMMENDATIONS AND CONCLUSIONS:

The bank has been growing good from the last five years indicating the positive

sign to the shareholders and the stakeholders.


Banks capital adequacy ratio is good and it is maintaining more than the BASEL-

III requirements
Amalgamation of centurion bank of Punjab in 2008 has some impact in its

functions and assets but it takes less time for the bank to regain its profits
The bank has been expanding its branches with less costs and expenses by

managing its human power and assets efficiently


Profitability and solvency ratios are indicating good soundness of the bank.
Efficiency ratios like management ,operating, operating and gross ratios are
indicating that the bank is effectively managing the employee costs and other

administrative costs
Current Ratios shows some negative indications regarding the maintenance of
current assets for current liabilities but actually banks maintain the capital to risk
free assets known as capital adequacy ratio for fulfilling the obligations which
was good for the bank.

The overall performance of the bank was good showing a positive sign to the
stakeholders.

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LIMITATIONS OF STUDY

The study considers financial ratio analysis Altman Z-score other factors like

CAGR, Altman Z-score and benchmarking to industry are ignored.


Findings are not confined to individual branch.
Although basic patterns of the Footfall studies and Time Motion studies have been
identified, they are however, subject to the various aspects such as deposit and
withdrawal patterns of month beginnings, weather, re-opening of schools and

colleges, etc.
Footfall and time motion studies are specific for a single branch of HDFC Bank
and cannot be generalized for all branches.

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BIBILIOGRAPHY
1. Ann Hendrich, Marilyn Chow, Boguslaw A. Skierczynski, Zhenqiang Lu (2008). A 36
Hospital Time and Motion Study: How Do Medical Surgical Nurses Spend Their
Time. The Permanente Journal Summer, Vol 12 No.3. Pages 25 34
2. B. Kumar (1999). Industrial Engineering. Khanna Publishers, Delhi
3. Brian Price (1989). Frank and Lillian Gibreth and the Manufacture and Marketing of
Motion Study, 1908 1924. Business and Economic History, Second Series, Volume
Eighteen, 1989 Business History Conference ISSN 0849 6825
4. Enugandula C S. (1999). Performance of KDCC bank in Andhra Pradesh. Indian
Economic Review Jan 227- 232.
5. Eok Su Sim, Hyoung Gon Lee, Jung Chul Lee, Jin Woo Park (2004). Efficient Work
Measurement System of
6. Foster (2003). Operational

Management

Time

and

Motion

Study.ppt.

www.freequality.org/sites_ free_quality_org/document/training
7. Fred E. Meyers (1992). Motion and Time Study Improving Work Methods and
Management. Prentice Hall Inc.
8. Grace Au, Ray J. Paul (1993). Visual Interactive Modelling: A Pictorial Simulation
Specification System. European Journal of Operation Research 91 (1996) Pages 14
26.
9. Harrell, Ghosh, Bowden (2004), Simulation Using ProModel Second Edition.
McGraw Hill
10. Hosamani, S.B. (1995). Performance and impact of Regional Rural Banks. A case
study of Malaprabha Grameena Bank in Karnataka. (Unpublished Ph.D. Thesis).
University of Agricultural Science Dharwad.
11. http://www.hdfcbank.com/aboutus/cg/annual_reports.htm
12. http://www.moneycontrol.com/india/stockpricequote/banksprivatesector/hdfcbank/H
DF01
13. International Journal of Accounting and Financial Management Research (IJAFMR)
14. Jay Heizer and Barry Render (2006). Operations Management Eight Edition.
Pearson Education
15. Jeffrey S. Smith (2003). Survey on the Use of Simulation for Manufacturing System
Design and Operation. Journal of Manufacturing Systems, Vol. 22 / No 2 2003 Pages
157 171
16. Kulwant Singh Pathania and Yoginder Singh (1998) A study of the performance of the
Himachal Pradesh cooperative banks. Indian Cooperative Review. 36 (2) 178-182.
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17. L. Aharonson Daniel (1996) Time Studies in A&E Departments A Useful Tool for
Management: Journal of Management in Medicine, Vol 10 No 3 Pages 15 22
18. Lawrence S. Aft (2001). Work Measurement and Method Improvement. John Wiley
and Sons Inc.
19. Manufacturing Cells Using Speech Recognition and Digital Image Processing
Technology. International Journal Manufacturing Technology 29 (2006) Pages 772 785
20. Marvin E. Mundel and David L. Danner (1994). Motion and Time Study Improving
Productivity. Seventh Edition. Prentice Hall Inc.
21. Ming Lu, Lap Chi Wong (2005). Comparison of Two Simulation Methodologies in
Modelling Construction System: Manufacturing Oriented PROMODEL vs
Construction Oriented SDESA. Journal of Automation 16 (2007) Pages 86 95
22. O. C Jensen, S. Stage, P. Noer (2004). Injury and Time Studies of Working Process in
Fishing. Journal of Safety Science 44 (2006) Pages 349 358
23. Patil, S.M. (2000) Performance of Primary Cooperative Agricultural and Rural
Development Bank in Dharwad district, Karnataka. (Unpublished Ph.D. Thesis)
University of Agricultural Science, Dharwad.
24. Ralph M. Barnes (2001). Motion and Time Study Design and Measurement of Work.
Seventh Edition. John Wiley and Sons Inc.
25. Russell and Taylor (2005). Operations Management Quality and Competitiveness
in a Global Environment. Fifth Edition. John Wiley and Sons Inc.
26. Siddhanti, S.A. (1999). Financial performance of Indian Farmers Fertilizers
Cooperative. Cooperative Perspective 34 (1) 43-46.
27. SMIDEC (2002). SMI Development Plan 2001 2005. SMIDP Executive Summary.
28. Surjit Angra, Rakesh Sehgal, Z. Samsudeen Noori (2004). Cellular Manufacturing
A Time Based Analysis to the Layout Problem. International Journal of Production
Economic 112 (2008) Pages 427 438
29. The Yankee Group Inc. (2001). Western Juniper Harvest System Trial. Final Report
for REACH Inc., Klamath Falls, Oregon.

Abhirama B Sarepaka
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ANNEXURE-I
Data collected and compiled for Time-Motion Studies.

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Averag
e

16-062014-A
02:15.4
07:38.1
02:39.7
02:44.0
05:05.3
03:08.9
02:55.9
02:43.2
03:38.1
02:49.3
02:46.9
03:45.2
03:45.2
02:57.8
04:56.0
03:01.3
06:02.1
03:56.1
03:49.9
08:35.2
03:01.3
02:41.0
02:16.3
03:08.2
03:59.4
03:39.8

16-062014-B
02:23.2
03:02.2
01:59.3
03:05.3
01:31.3
02:38.3
03:43.3
02:39.9
02:04.5
04:11.2
02:07.5
02:44.4
01:32.5
02:27.3
02:31.7
03:21.3
02:51.0
03:37.9
04:08.9
02:18.3
03:14.7
02:44.7
02:54.6
02:41.9
02:19.3
02:41.3
02:42.9
02:59.9
01:42.7

16-6-14-A

16-6-14-B

03:46.1

02:43.5

Cash Deposit
17-0617-062014-A
2014-B
10:23.1
03:13.5
03:02.2
02:39.7
04:59.0
02:13.9
03:05.3
05:05.3
03:31.0
03:08.9
02:38.3
02:55.9
03:43.3
02:43.2
03:39.9
03:38.1
03:19.2
02:49.3
04:11.2
02:16.3
03:55.1
02:27.3
04:45.1
02:31.7
02:53.0
02:07.5
03:39.0
01:59.4
03:21.3
03:01.3
03:48.2
02:41.0
03:37.9
02:15.4
04:08.9
01:49.3
04:59.9
02:24.2
03:14.7
06:02.1
02:44.7
03:01.3
02:54.6
02:41.3
03:41.8
02:42.9
04:15.8
02:59.9
01:42.7
02:41.0
02:16.3
02:07.5
01:59.4
01:38.9
17-6-14-A
17-6-14-B
03:56.4

02:43.8

18-062014-A
12:02.1
07:21.6
03:01.1
03:34.1
04:12.8
02:41.8
03:03.8
03:30.3
03:32.8
03:03.4
03:23.2
06:02.1
03:01.3
03:47.5
03:13.2
03:07.1
04:02.1
02:59.2
03:58.9
03:01.8
02:50.1
03:04.3
03:03.8
03:45.8
03:45.1

18-062014-B
05:31.3
03:17.5
04:17.2
01:33.0
01:44.9
02:36.2
03:15.3
03:43.7
02:18.3
02:19.3
02:41.9
02:44.7
02:59.9
03:18.8
02:43.8
03:12.3
01:59.8
02:41.3
02:42.9
02:54.6
02:41.2
03:45.9
02:51.5
03:49.2
02:59.3
01:42.7
03:14.7
04:08.9
03:16.1

18-6-14-A

18-6-14-B

03:58.0

02:56.4

Table Annex-1: Individual Time taken for each transaction at 2 counters on three days for
Cash Deposits.
Cheques Deposit
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1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Averag
e

16-062014-A
02:11.0
02:49.6
02:28.8
02:03.2
03:56.1
03:00.2
02:46.7
02:00.9
02:30.8
02:46.9
02:38.8
03:00.2
02:46.7
02:30.8
02:03.2
03:01.9
02:57.9

16-062014-B
01:36.0
01:02.2
00:49.3
02:13.3
01:42.3
01:39.8
02:32.3
01:34.9
01:49.3
01:43.7
00:53.1

17-062014-A
02:56.0
03:02.0
01:59.9
03:00.2
02:46.7
03:40.0
02:32.3
02:35.0
02:49.0
03:00.2
02:46.7

18-062014-A
02:43.2
02:45.9
02:34.1
03:00.2
02:46.7
02:30.8
02:03.2
02:00.9
01:57.3

18-062014-B
01:03.1
03:00.1
01:43.2
02:23.6
02:23.6
01:17.6
01:34.9
01:43.7
01:49.3
02:32.3
00:59.1
00:53.1

17-6-14-A

17-062014-B
02:11.0
01:59.3
02:28.8
02:03.2
01:57.3
02:13.3
01:42.3
02:00.9
02:30.8
01:59.5
02:38.8
01:43.7
00:53.1
02:30.8
02:03.2
02:00.9
01:57.3
04:41.9
17-6-14-B

16-6-14-A

16-6-14-B

18-6-14-A

18-6-14-B

02:40.8

01:36.0

02:49.8

02:03.2

02:29.1

01:47.0

Table Annex-2: Individual Time taken for each transaction at 2 counters on three days for
Cheques Deposits.

1
2
3
4
5
6
Averag
e

Cheques Encashment
17-0617-062014-A
2014-B
03:45.1
03:10.2
05:03.6
03:45.1

16-062014-A
03:45.1
03:10.2
03:45.1

16-062014-B
05:03.6
04:41.9

16-6-14-A

16-6-14-B

17-6-14-A

03:33.5

04:52.7

04:24.4

17-6-14-B

18-062014-A
03:16.9
05:43.1
03:48.9
03:45.1
03:16.9
05:43.1
18-6-14-A

18-062014-B
02:03.1
04:00.2
04:04.0
04:41.9

18-6-14-B

03:27.6

04:15.7

03:48.9

Table Annex-3: Individual Time taken for each transaction at 2 counters on three days for
Cheques Encashment.

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Time Taken for Cash Deposits at a Teller on 3 consecutive days-Counter A

16-6-2014-Cash Deposits

17-6-2014-Cash Deposits

18-6-2014-Cash Deposits

Figure Annex-1: Individual Time taken for each transaction at Counter-A on three days
for Cash Deposits.

Time Taken for Cash Deposits at a Teller on 3 consecutive days.-Counter B

Cash Deposits-16-6-14

Cash Deposits-17-6-14

Cash Deposits-18-6-14

Figure Annex-2: Individual Time taken for each transaction at Counter-B on three days
for Cash Deposits.

Time Taken for Cheque Deposits at a Teller on 3 Consecutive Days-Counter A

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Figure Annex-3: Individual Time taken for each transaction at Counter-A on three days
for Cheques Deposits.

Time Taken for Cheque Deposits at a Teller on 3 Consecutive Days-Counter B

Cheque Deposit-16-6-14
Cheque Deposits-18-6-14

Cheque Deposit-17-6-14

Figure Annex-4: Individual Time taken for each transaction at Counter-B on three days
for Cheques Deposits.

Time Taken for Cheque Encashment at a Teller on 3 Consecutive Days-Counter A

Figure Annex-5: Individual Time taken for each transaction at Counter-A on three days
for Cheques Encashment.

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Time Taken for Cheque Encashment at a Teller on 3 Consecutive Days-Counter B

Figure Annex-6: Individual Time taken for each transaction at Counter-B on three days
for Cheques Encashment.

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