Net Profit:

The net profit ratio is a financial ratio, which helps to measure the profitability of
the firm. The net profit ratio shows that how much a company is efficient in
managing its work and costs. In short it shows the profit making capacity of the
firm.
Net profit ratio = Net Profit / Net Sales * 100

Interpretation: -
In the year 2015- 2016 HDFC bank had the highest net profit ratio with 20.41%
which indicates that the bank is efficient in managing works and cost accounting
and reducing its cost. A higher ratio indicates the efficiency of the firm. This
implies that the HDFC bank is very efficient, as it has managed to reduce its cost
and increase its profits.
However during the year 2018, Axis Bank’s net profit margin decreased
significantly by 7.78 % because Axis bank incurred a huge loss of Rs 2,188.74 crore
for the quarter ended March 2018 due to higher provisioning for bad loans.