SYNOPSIS

THE STUDY OF FINANCIAL ANALYSIS AT HDFC BANK

SUBMITTED BY: SUPRIYA

REG. NO-09WJCMA045

DON BOSCO INSTITUTE OF BIOSCIENCES & MANAGEMENT

STUDIES

Research Guide: Mr.Shekhar, Lecturer.

Submitted To: Bangalore University, Bangalore

 TITLE OF THE STUDY
“The study of financial analysis at HDFC bank”

GENERAL INTRODUCTION:

Finance is the life-blood of business. It is rightly termed as the science of money.

Finance is very essential for the smooth running of the business. Finance controls the
policies, activities and decision of every business.

Definition

“Finance is that business activity which is concerned with the organization and
conversation of capital funds in meeting financial needs and overall objectives of a business
enterprise.”- Wheeler

Financial management is that managerial activity which is concerned with the

planning and controlling of a firm financial reserve. Financial management as an academic
discipline has undergone fundamental changes as regards its scope and coverage. In the early
years of its evolution it was treated synonymously with the raising of funds. In the current
literature pertaining to this growing academic discipline, a broader scope so as to include in
addition to procurement of funds, efficient use of resources is universally recognized.

INDUSTRIAL BACKGROUND:

Meaning of Bank

According to banking regulation act of 1949 defines the term banking as accepting for
the purpose of lending or investment of deposits of money from the public, repay on demand
or otherwise and withdraw by cheques, draft or otherwise.

Kinds or types of bank: -

 Commercial bank
 Industrial bank
 Foreign exchange bank
 Co-operative bank
  Agricultural bank
 Land and development bank
 Saving bank
 Central bank

FINANCIAL ANALYSIS:

Financial analysis is the process of identifying the financial strengths and weakness
of the firm by properly establishing relationships between the items of the balance sheet and
profit and loss account. The purpose of financial analysis is to disclose the information
contained in the financial statements so as to judge the profitability and financial soundness
of the organization.

ANALYSIS AND INTERPRETATION:

Analysis of Financial statements is a process of scanning them with a view to get the
necessary information. Accordingly, there are a large number of persons who are interested
in the analysis of financial statements. However, even with the accompanying schedules, the
layman does not understand the statements. Except an expert analyst, others including the
management cannot follow and digest the information contained in the statements. Hence,
the need for analysis.

TECHNIQUES OF FINANCIAL STATEMENT ANALYSIS:

A financial analyst analyzes the financial statements by selecting the appropriate

techniques according to the purpose of analysis. Financial statements may be analyzed by
means of any of the following techniques.

 Comparative Statements
 Common-size Statements
 Trend Analysis
 Ratio Analysis
 Fund Flow Statements
 Cost-Volume-Profit A
 Analysis

Research design
Research design means a search of facts, answers to question and solution to the
problems. It is a prospective investigation. Research is a systematic logical study of an issue
or problem through scientific method. It is a systematic and objective analysis and recording
of controlled observation that may lead to the development of generalization, principles,
resulting in prediction and possibly ultimate control of events.

Research design is the arrangement of conditions for the collection and analysis of
data in manner that aims to combine relevance to the research purpose with relevance to
economy. There are various designs, which are descriptive and helpful for analytical
research.

OBJECTIVES OF THE STUDY

Based on the information furnished in the financial statements, the various
objectives of the ratio analysis are:

 To show the firm’s relative strength and weakness.

 To determine the financial condition and financial performance of the firm.
 To involve comparison for a useful interpretation of the financial statement
 The overall operating efficiency and performance of the bank.

NEED OF THE STUDY:

Any company would like to know its position against its competitors. The ultimate
performance indicator of any company is the financial parameters because invariably all costs
efficiencies; activities and solvency position of the company will be reflected in the financial
mirror.

The following are stated as the need for the study:

 To understand the volume of the profit and its reasonableness.

 To understand the movement of profit over a period of time.

 To know the reason for the variation in the profit.

 To know the present standing of the company.

SCOPE OF THE STUDY:

Ratio analysis is perhaps the first financial tools developed to analyze and interpret the
financial statement and is still used widely for this purpose. Financial performance analysis is
a well-researched area and innumerable studies have proved the utility and usefulness of this
analytical technique. This research seeks to investigate and constructively contribute to help:

 The bank in finding out the gray areas for improvement in performance

 The bank to understand its own position over time

 The managers to understand the contribution to the performance of the bank

 The present and potential investors outside parties such as the creditors, debtors, government
and many more to get an idea of the overall performance of the bank

LIMITATIONS OF THE STUDY:

 Definitions used are universal.

 Selected study period is sufficient.

 Selected financial ratio reflects the financial performance of the bank.

 Ultimate performance evaluation of the bank is shown in its financial assets.

SOURCES OF DATA:

Data is defined as group of non-random symbols in the form of text, image, or voice
representing quantities, actions as objects. Data is processed into a form that is meaningful to
the recipient and is of real and perceived value in the current or prospective actions or
decisions of the recipient.
Data are mainly classified into two groups:

 Primary data

 Secondary data

BIBLIOGRAPHY

Annual Report of HDFC Bank Limited

WEBSITES, WHICH ARE USED TO GATHER INFORMATION:

 www.hdfcbank.com