For Office Use:

Grade

Communication for Managers

Group Assignment No. 1

“Company Report of HDFC BANK LIMITED”

Submitted by:-

Group No.: 47

S. No Name Roll No.

1 DEEPTANSHU K KASHYAP 201414
2 GRISH VASNANI 201419
3. HIMANSHI BANSAL 201424
4 RISHABH BHASKAR 201440
5 SANCHIT KUMAR ISRANI 201445
6 VIDIT MORE 201460

Section: D

Batch: MBA-FT (2020-2022)

Institute of Management, Nirma University

Date of Submission: 23rd December, 2020
Table of Contents

Executive Summary 1

Business Information 2

Organizational Information 8

Financial Performance Analysis 17

Appendix 19

Bibliography 23
EXECUTIVE SUMMARY

The Housing Development Finance Corporation Limited (HDFC) was one of the torchbearers in the
banking sector during the liberalization, privatization, and globalization era. In 2020, more than a
quarter of a century since it started functioning it has established itself as one of India leading private
banks. It covers vast verticals in financial services with main focus on retail banking, wholesale
banking and treasury. Its various financial products include credit cards, consumer banking, finance
and insurance, private banking, private equity and wealth management.

As on March 2020, HDFC bank has total assets of Rs. 15, 30,511.26 crores. The bank also has a MCap
(market capitalization) of 4.12, making it the largest private sector bank in India in terms of market
capitalization. It has total shareholder funds of Rs. 170,986 crores. As mandated by the Reserve Bank
of India it also maintains cash and reserve amounts with RBI to the tune of 72,205.12 crores. In the
second quarter of 2020 Non Performing Assets were 0.33% of net advances of the bank.

Mr Shashidhar Jagdishan took over as Managing director of HDFC bank from Aditya Puri on 27th Oct
2020. He also serves as the Chief Executive Officer. Mr. Arvind Arora is currently the country head of
the banking branch.

Page 1 of 26
BUSINESS INFORMATION

BFSI SECTOR- AN OUTLINE OF THE BANKING SYSTEM

BFSI stands for the Banking, monetary Services, and Insurance sector. It contains a significant portion
of the Indian economy comprising all Banking, Insurance, and Non-Banking monetary establishments.
The reciprocity between banking sector and government policies in conjunction with technology
advancement, strict rules, regulations and investments has helped the banking sector to grow
exponentially within the recent years. Banking is one in every of the foremost vital elements of the
BFSI business.

Banks plays a crucial role in any of the economic system by grouping deposits from households across
the state and makes the funds available there for investment. In current situation, the banking system
has become an integral part of any nation’s economic progress and is crucial for the monetary upbeat of
people, businesses, nations, and therefore the entire globe.

Banking sector is an establishment that provides banking and alternative monetary services to their
customers. Banks is a key player in the economic progress of any country within the globe. The
movement of capital taken care by the banking establishments results in economies to grow and
prosper. Businesses and governments want cash to work, and banks act as the channel between the
lenders and users of funds.

THE LAW OF BANKING

Banking law is a written agreement between the bank and client. a few the widely accepted rights and
obligations are:

 The checking account balance is the monetary position between the bank and therefore the
customer: once the account is in credit, the bank owes the balance to the customer; once the
account is overdrawn, the client owes the balance to the bank.
 The bank agrees to pay the customer's cheques up to the number standing to the credit of the
customer's account, and any in agreement order of payment limit.
 The bank might not pay from the client's account while not a mandate from the customer,
example cheques drawn by the client.
 The bank agrees to promptly collect the cheques deposited to the customer's account as the
customer's agent, and to credit the return to the customer's account.
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  The bank includes a right to mix the customer's accounts, since every account is simply a side
of identical credit relationship.
 The bank includes a lien on cheques deposited to the customer's account, to the extent that the
client is indebted to the bank.
 The bank should not disclose details of transactions through the client's account—unless the
customer consents, there's a public duty to disclose, the bank's interests need it, or the law
demands it.

INDUSTRY MARKET SIZE

Indian banking system contains of twenty-seven public sector banks, twenty-one personal sector banks,
forty-nine foreign banks, fifty-six regional rural banks, 1,562 urban cooperative banks and ninety-four,
384 rural cooperative banks. Public sector banks account for sixty-one.21% of the full banking assets in
FY19. In FY19, total assets publicly and personal banking sector were $1,422.97 bn and $741.79 bn,
severally.

Investments are that the second-largest elements in the assets aspect of banks’ balance sheets when
loans and advances are generally driven by government securities.

Further to the present, throughout 2019-2020 (up to December 2019), capital adequacy remained on top
of restrictive necessities despite the terrorist organization magnitude relation increasing.

Moreover, Recovery of stressed assets improved throughout 2019-20 through the IBC, 2016 and
Securitisation and Reconstruction of monetary Assets and social control of Security Interests
(SARFAESI) Act, 2002.

Banks continued to post sturdy growth in retail loans in 2018-2019. Housing loans were supported by
incentives like the Pradhan MantriAwasYojana (PMAY) and therefore the implementation of the
important Estate (Regulation and Development) Act (RERA). Moreover, rationalisation of risk weights
and provisioning on normal assets in bound classes of individual housing loans in Gregorian calendar
month 2017 gave a bonus to the section.

Page 3 of 26
INDUSTRY SEGMENTS

The Banking, Financial Services and Insurance Sector contributed a vast chunk in any Economy and it
comprises of all the Banking and Non-Banking Institutions, Insurance Companies, and Non-Banking
Financial Institutions. However, let us discuss the various segments of the Banking Industry.

1. Central Bank

Or as we know it as the Reserve Bank of India (RBI) in our country, this bank is positioned on top of
the entire Banking Industry of any country and it holds the regulatory powers and authority to supervise
the functioning of the Banking Industry in an Economy. It is also responsible for controlling the flow of
currency, keeping a tab on inflation and the Central Bank of the country is the only statutory body
which has the power to print the paper currency in a country.

2. Scheduled Commercial Banks

This the broad term given to the three categories of Banks in India which are;

i. Private Sector Banks

Refers to the banks in which the major stake or the equity is controlled by the private sector
i.e the private shareholders, currently there are 22 Private Sector Banks in India, and HDFC
is also a part of the same.
ii. Public Sector Banks
Refers to the Banks where the majority stake i.e more than 50% or 51% of total stake is
owned by the Government. Until 2020 there were a total of 27 Public Sector Banks
functioning in India, however in major reforms passed in 2020 this number was reduced
down to 12, where many of the Public Sector Banks were merged under a single bank.
iii. Foreign Banks
These are the banks that are headquartered outside India. These banks function in the
country and act as a source of bringing in foreign Investment and help in pushing up the
international transaction in the country. India currently has a total of 45 foreign Banks.

3. Co-operative Banks

These Banks are designed with a view to promote the social welfare in the country and are mainly
targeted towards serving the under privileged sections of the society, usually these banks function

Page 4 of 26
on the basis of a no profit no loss approach and are further divided into few categories based on the
geographic diversification in different levels like state level, regional level, district level, and the
urban or semi-urban parts of the country.

4. Regional Rural Banks

These banks are incorporated by the Government of India, and are primarily focused towards
serving the rural parts of the country and provide contribution in setting up the formal banking in
the rural areas.

5. Specialized Banks

As the name suggests these are the banks which are formed with the objective of providing aid and
assistance to particular or special industries. In India these are mainly of 3 types.

i. Export-Import Banks (EXIM Banks)

ii. National Bank of Agriculture and Rural Development (NABARD)
iii. Small Industries Development Bank of India (SIDBI)

6. Development Banks

These Banks are aimed at providing capital and finance for major development projects, their
modus operandi is based on promoting the social development and not earning profits. Some of the
noticeable ones in India are the State Finance Corporations (SFC) or the Industrial Finance
Corporation of India (IFCI)

7. Non-Banking Financial Institutions (NBFC)

These banks do not have the Banking License but they do provide a wide variety of Banking
Services to the General Public. They are usually focused on providing credit, loans, underwritings
or other financial assistance to the General Public or the Companies.

8. Payments Banks

This is a fairly new concept introduced in India recently, when the Online Banking Revolution in
India took place. These are popularly recognized as the PayTm Payments Banks, Airtel Payments
Banks, Jio Payments Banks. These generally provide mobile banking features to customers and
accept restricted deposits of up to 1 Lac rupees from the customers.
Page 5 of 26
GEOGRAPHICAL SPREAD

As discussed in the first segment of the report, The Banking Industry in India has always acted as a
booster to boost up the state of the economy by focusing on use of the different aspects of the Banking
Functionalities for different purposes to maximize the gains from the whole setup.

When we particularly talk about the geographical spread, the Indian Banking Industry has its root
strongly spread across all the parts of the country. However a major credit of introducing the Banking
Functionalities in rural sector goes to the Non-Banking Financial Companies, since they introduced the
banking functions of lending to the rural population in a systematic manner which ensured that the rural
poor does not get exploited by the Private Money Lenders in the Country.

It is really important for the Banks to have a wide geographical spread in the Country since the aim
should be to reduce the gap between the sections of economy, using the Banking Services for different
reasons. It becomes very important for banks to have a wide presence in the country, because now a
bank cannot make the mistake of having a selective presence in only the urban parts, but because the
rural population has started using more of the banking and allied services so it is a must for the banks to
be physically present in all the parts of the country.

Talking about the Private Sector banks, there has been a shift in the approach from being present only
in the Tier 1 cities to now being present in Tier 2 and Tier 3 states as well, with the realization that
Banking is no more a luxury but a necessity of the people of the country. Hence it becomes really
crucial for the banks to have a physical presence on a wider scale in all parts of the country and we
have witnessed how Government has also ensured the same with the introduction of the Regional Rural
Banks, the rural co-operative societies and the rural development banks.

Page 6 of 26
RECENT BUZZ IN THE BANKING INDUSTRY

 Dealing with the NPAs

This year we have witnessed how the banks have struggled with the bad loans or as we formally
like to call it the Non-Performing Assets (NPAs). With the pandemic this year, these have further
caused disruptions for the state owned banks and it has become a concern for the government to
address the issue at hand feasibly to get the credit cycle back on track.
https://www.livemint.com/news/india/multiple-bad-banks-needed-to-solve-npa-problem-cii-
11608484588060.html
 IWG’s Proposal on entry of Corporates in the Banking Industry
There has been a buzz in the market about the entry of the corporate houses in the industry and is
being seen as a move which can strengthen and build upon the idea of the AtmaNirbhar Bharat.
These proposals were presented by the Internal Working Group to the RBI, last month. However,
looking at the condition of the Banks and the multiple attempts to revive it, the cons here definetly
outweigh the pros as mixing Industries and Finance could lead to a disaster in the post pandemic.
https://theprint.in/opinion/should-corporates-run-banks-pros-cons-of-rbis-proposal-on-entry-of-
private-corporations/553658/
 Public Sector Banks merged, 27 to 12
In the start of 2020, the Banking Industry witnessed the largest reforms probably where a number
of public sector banks were merged into the existing Public Sector Banks and the no. of Banks
functioning was cut by more than half. This was a move made to strengthen the Indian Banks.
https://www.news18.com/news/business/govt-announces-merger-of-27-banks-into-12-heres-the-
highlights-from-fms-briefing-2291103.html
 Are Banks spending enough on Tech to sustain Digital India
There is a dire need for the Banks to scale up their investments in Tech from 2% to 8-10% for
effectively managing the rising numbers of Digital transactions, reports say. Banks must also focus
on building efficient systems for better and enhanced consumer experiences, and ensure that the
technical glitches are minimized and the benefits outweigh the costs to sustain in the long term.
https://inc42.com/features/are-indian-banks-spending-enough-on-tech-to-meet-rising-transactions/

Page 7 of 26
ORGANIZATIONAL INFORMATION

INTRODUCTION

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive a 'in
principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part
of the RBI's liberalization of the Indian Banking Industry in 1994. The bank was incorporated in
August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC
Bank commenced operations as a Scheduled Commercial Bank in January 1995. HDFC is India's
premier housing finance company and enjoys an impeccable track record in India as well as in
international markets. Since its inception in 1977, the Corporation has maintained a consistent and
healthy growth in its operations to remain the market leader in mortgages. Its outstanding loan portfolio
covers well over a million dwelling units. HDFC has developed considerable expertise in retail
mortgage loans to various market segments and also has a broad corporate customer base for its
housing based credit facilities. With its experience in the financial markets, a good business credibility,
broad shareholder base and unique customer franchise, HDFC was ideally placed to promote a bank in
the Indian climate.

HISTORY

HDFC BANK LTD, with registered office in Mumbai, India, was founded in August 1994 on behalf of
'HDFC Bank Limited.' In January 1995, HDFC Bank started to act as a Scheduled Commercial Bank.

Hasmukhbhai Parekh, founder and emeritus chairman of the HDFC party, had always been there with a
mission. One of the first to create a private sector bank was HDFC BANK LTD. On 30 August 1994
the Bank, with its registered office in Mumbai, was established under the name of 'HDFC Bank
Limited.' It began its operations on 16 January 1995 as the Scheduled Commercial Bank. The bank has
steadily expanded and is now one of the industry's key players.

In India and on foreign markets, HDFC is India's leading housing finance business and has a flawless
record. The company has continued to expand steadily and healthily since its establishment in 1977,
remaining a pioneer in mortgage rates. Its exceptional loan portfolio includes over a million residential
units.

Page 8 of 26
In addition to a broad corporate client base for its loan related housing services, it has established
considerable experience in the retail mortgage loan business. HDFC was ideally suited for the
promotion of an Indian Bank with its financial industry expertise, good market credibility, diverse
shareholder base, and unique customer franchise. The Times Bank merged with HDFC Bank Ltd,
effective Februar 26, 2000, as part of its milestonal transactions in the Indian banking sector.

MISSION

I. World Class Indian Bank

II. Benchmarking against international standards.
III. To build sound customer franchises across distinct businesses
IV. Best practices in terms of product offerings, technology, service levels, risk management and
audit & compliance.

VISION STATEMENT OF HDFC BANK

The HDFC Bank is dedicated to upholding the highest standards of conduct, professional honesty and
compliance with legislation. The ideology of HDFC Bank is based on the following four core values:

1. Excellence in service.

2. Focus Client.

3. Leadership of the product.

4. People. People.People.

HDFC Bank has the goal of offering a complete collection of financial and banking products to its
target market clients, allowing the consumer to fulfilall of their requirements one step away. The
HDFC Bank plus and the investment consulting services take account of customer requirements that
pursue different financial strategies, knowledge and guidance on different investment opportunities.

Page 9 of 26
BOARD OF DIRECTORS

PERSON DESIGNATION
Mr.VedantamSaikia Vice President
Mr.SashidarJagdishan Managing Director
Mr.AdityaPuri Executive Director
Mr.SashidarJagdishan Executive Director
Mrs.ShyamalaGopinath Director
Mr. Malay Patel Director
Mr.Umesh Chandra Sarangi Director
Mrs.RenuKarnad Director

TOP MANAGEMENT

PERSON DESIGNATION
HariIyer Equities & Private Banking and NRI
Business
Shaznin Patel Information Technology and Legal
Sumit Singh Treasury
Puneet Gupta Merchant Services
Anupama Singh Audit & Compliance
Dipesh Mehta Credit & Market Risk
MandeepMaitra H.R, Admin & Infrastructure

Page 10 of 26
INTEGRATED FINANCIAL SERVICES

SECURITISATION

HDFC CHUBB GENERAL

INSURANCE CO. LTD.

Future Activities

DISTRIBUTION

Page 11 of 26
PRODUCTS OF HDFC BANK

HDFC offers many different types of products to its customers, depending upon the type of service
they require. We will discuss few of them.

Account & Deposits Service

Banking needs to be straightforward. The efforts are worthwhile with HDFC Bank. Regardless of the
needs of our clients and the status of our jobs, we have a variety of solutions without exception. If you
are in a business and need a simple Savings Account or run a firm of your own and require a strong
banking partner, HDFC Bank may not only provide you with the ideal solution, but may also offer
items that will improve your future planning.

Saving plus Account

Present HDFC Bank Savings Plus Account for you with the best banking opportunity. With HDFC
Bank's Savings plus Account you now have access to some of the best banking facilities. You
essentially have to maintain a Rs. 10,000/- quarterly average balance.

Saving Max Account

Welcome to a comfortable world. Presenting your Max Savings account with the best advantages to
satisfy your banking. With just an average of Rs. 25,000/- you receive a range of premium services
fully free of charge from HDFC Bank.

Senior Citizen Account

HDFC Bank appreciates your needs and efforts and therefore provides a customer account that helps to
meet your needs in the best possible way, like an obliging kid.

No Frills Account

In an attempt to make banking easier for clients and more available, Bank has launched the Savings
Account 'No Frills,' which gives clients all the fundamental banking facilities. Customers can also take
advantage free of charge of services such as Net Banking. Zero Initial Pay in and a zero balance
account can be placed in this client.

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Institutional Saving Accounts

A specially designed account which provides both a savings and a current account with twin benefits.
The funds of customers continue to attract you as they enjoy fast banking and many other features. In a
Zero Balance account, all this and more.

ACHIEVEMENTS, AWARDS AND RECOGNITION

For the Financial year 2019-2020, HDFC was recognized with the following awards and achievements:

 It is awarded for the Marketing and Brand Innovation of the year by ET Innovation Awards
2020.
 It is recognized as Most Outstanding Company- Financial Sector by Asiamoney Asia’s
Outstanding Companies Poll 2019.
 It is ranked as India’s most valuable brand for the seventh consecutive year, in 2020 BrandZ
Top 75 Most Valuable Indian Brands.
 It is awarded as Best Bank in India by FinanceAsia Country Awards 2020.
 It is recognized as India’s best bank by Euromoney Awards for Excellence.
 It is certified as “Great Place to Work” for 2020. Also, ranked among top 10 best companies to
work for in India by Business Today.
 It is adjudged as Best Domestic bank in India and awarded as Asiamoney Best bank Award
2020.
 It is also voted as “Best Managed Company”, “Best governed”, ranked second for “Best
Environmental Stewardship”.
 It is awarded for Best Use of technology- Data Analytics/ Big Data/ BI (Jointly with SBI) by
Dun& Bradstreet Bank Tech Awards 2020.
 It is awarded as Bank of the Year (jointly with SBI) by Business Today.
 It is awarded as “Best large Bank” and “Best Fintech Engagement” by Business Today.
 It is awarded as Outstanding Company of the Year by CNBC-TV18 India Business Leader
Awards (IBLA) 2019-20.

Page 13 of 26
COMPETITORS

1. KOTAK MAHINDRA

Kotak Mahindra Bank Limited is an Indian private area bank, founded by Uday Kotak in 1985.
It’s headquartered in Mumbai, Maharashtra, India. It offers banking products and services for
corporate and retail clients in the zones of personal finance, investment banking, wealth
management and insurance.

2. ICICI BANK

ICICI bank was promoted in 1994 and was formed as a result of initiative by the World Bank,
representatives of Indian Industry and Government of India. It offers a wide range of banking
products and services, mainly in insurance, wealth management and personal finance segments.

3. STATE BANK OF INDIA

SBI, is the first bank established in 1806 as Bank of Calcutta in India. It is currently, the largest
public sector bank of India. It is headquartered in Mumbai, Maharashtra. It offers a wide range
of banking products and services from saving accounts, fixed deposits, personal finances to loan
facilities such as home loan, business loan, gold loan etc.

4. AXIS BANK

Axis Bank was earlier known as UTI Bank, started its operation in 1995. It is headquartered in
Mumbai, Maharashtra. The Bank offers the whole range of financial services to client segments
such as Large and Mid-Corporates, MSME, Agriculture and Retail Businesses.

5. INDUSIND BANK

IndusInd Bank was incorporated in 1994, Mr. Srichand P Hinduja (Head of the Hinduja Group),
being the promoter. The bank offers banking products and services including corporate banking,
retail banking, investment banking, personal finance, and treasury and foreign exchange

Page 14 of 26
ORGANIZATION STRUCTURE

Managing
Director
Ms. Raheema

Legal council

AGM-Admin AGM-Credit AGM-IT AGM-Finance

Mr. Athif Ms. Aishath Mr. Fathy Mr. Shafeeq

ADMIN/HR CREDIT AMNA IT Finance & Ac. Recovery

Department Department department Department Department department

Board of
Directors
(Chairperson)

Shahriah Managing Board

Internal Audit
Committee Director Secretariat

Page 15 of 26
MARKET GROWTH AND EXPANSION

HDFC Bank, a private area moneylender, detailed Saturday's net benefit expanded by 19.6%, from Rs.
5.568.16 billion in the main quarter of financial year 2020 to Rs. 6.658.62 billion in the principal
quarter, it tumbled to Rs.4,575.3 billion (20.6% of net deals), after Rs.4,970.3 billion in a similar period
a year ago.

The executives expect PSU piece of the overall industry (60% + area) in private banks to keep on
developing, offering the capacity to twofold their credit share from 7% to 8%. The theme of its
essential activity throughout the following five years is to obtain a portion of the client portfolio by
making a biological system across fragments. This incorporates a total computerized stage upgrade,
branch overhaul, improved installment foundation, the dispatch of a Virtual Relationship Management
(VRM) stage from 6 million clients to 25-30 million and non-clients. This is finished by developing the
presence with Metropolitan market. The board has just built up an environment of cards, retail
locations and dealer organizations (on the web and disconnected) on installment and replication stages
in areas, for example, medical care, car, shipper/affiliate biological systems and neighborhood markets.
I brought up that I had an arrangement. Orchestrating assets to make sure about your visionary
development venture considering monetary dangers is a major concern. Nonetheless, business advances
are an extraordinary choice for business people. HDFC Bank, one of the main banks in India, offers the
best business advances known as "business development credits" with various advantages that can be
custom fitted to suit your requirements. The eccentricity of HDFC Bank Business Growth Loan is that
it doesn't need ensures. With the correct advances, business people can understand their business vision
without monetary deterrents. The advances, in addition to other things, offer quick, unstable capital and
the most noteworthy loan fees in the business. HDFC Bank (HDFCBK) consistently builds its advance
and store piece of the overall industry all through the credit cycle and has become the first overseen
bank in Quite a while with solid productivity/development markers. Banks have had the option to beat
the vast majority of their rivals by improving the fineness of their asset reports, zeroing in on income
development, improving working influence through computerized activities, and overseeing getting
costs through solid endorsing.

Page 16 of 26
FINANCIAL ANAYLSIS

TOTAL INTEREST EARNED (Exhibit 2)

From the Statement of Profit and Loss we can see that the company’s earnings from the loans interest
amount has been growing since the past the 3 years. The total interest earned by the bank has increased
by 43.08% over the 3 years. This shows that the company has shown a consistent growth rate on year
to year basis.

TOTAL INCOME (Exhibit 2)

The total income of the bank includes total interest earned and income from other sources. The total
income has increased from 95,462 corers to 1,38,073 corers from the F.V. 2017-18 to 2019-20. The
income has increase by 44.71% over the past 3 years. The bank has been posting a very strong income
figures in the last 3 years.

NET PROFIT (Exhibit 2)

The Net Profit for the bank has increased by 8788.65 corers in F.Y. 2019-2020 compared to 2017-2018
, i.e. an increase by an 25% (approx ) increase on year to year basis. This shows that the bank is
consistently earning profit.

ASSETS AND LIABILITIES (Exhibit 1)

The Deposits done the bank customers have increased by nearly 50% with the three year time frame.
This means the customer trust the bank very much and are willing to have saving and current account
in this bank.
The Advance given by the bank has increased by 3.35369.79 crores over the past 3 years. This is the
costumer are taking loans from the bank to run their business. And this also means the bank will be
able to more interest from these loans.
The total Balance of the sheet has increased by 20 % (approx) on year on year basis. This shows that
the company has shown a consistent growth rate on year to year basis.

Page 17 of 26
CASH FLOW ACIVITY ANALYSIS (Exhibit 3)

The Bank has a very interesting Cash Flow. The Operating Activity has decreased by nearly 70,000
Crore in the F.Y. 2018-19 compared to 2017-18. Whereas the Financial Activity cash activity has also
declined by 25,559.64 crores in the F.Y. 20119-20 compared to 2017-18. The F.Y. 2018-19 had the
very high outflow of cash from the organization, reducing the cash with the organization by near 33%.

RATIO ANALYSIS (EXHIBIT 4)

The company Current Ratio is nearly .32 for all the 3 year, which is not good for the company as the
ideal current ratio should be between 1.2 to 2. This means the company doesn’t give enough liquid
assets to cover its short term liabilities.
The Gross Non-Performing Assets(NPA) of the banks has increased by 4043 crores over the past the 3
year bur the Gross NPA % has remain constant at 1% for past 3 year, which is good for the bank. As
this means the performing assets of the bank are earring money for the bank and there is not much
stress on them to earn for the NPA.
The dividend per share and the Equity dividend share % has declined drastically in F.Y. 2019-20
compared to 2018-19 by 83.33 % and 66.67 % respectively.
The Earning per Share Growth % has increase in the F.Y. 2019-20 compared to 2018-19 by nearly
60%.

Page 18 of 26
EXHIBITS

EXHIBIT 1: Balance sheet of HDFC BANK for the last 3 years

(Rupees in Crores)

PARTICULARS Mar-20 Mar-19 Mar-18

12 months 12 months 12 months
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 548.33 544.66 519.02
TOTAL SHARE CAPITAL 548.33 544.66 519.02
Revaluation Reserve 0 0 0
Reserves and Surplus 1,70,437.70 1,48,661.69 1,05,775.98
Total Reserves and Surplus 1,70,437.70 1,48,661.69 1,05,775.98
TOTAL SHAREHOLDERS FUNDS 1,70,986.03 1,49,206.35 1,06,295.00
Deposits 11,47,502.29 9,23,140.93 7,88,770.64
Borrowings 1,44,628.54 1,17,085.12 1,23,104.97
Other Liabilities and Provisions 67,394.40 55,108.29 45,763.72
TOTAL CAPITAL AND LIABILITIES 15,30,511.26 12,44,540.69 10,63,934.32
ASSETS
Cash and Balances with Reserve Bank of India 72,205.12 46,763.62 1,04,670.47

Balances with Banks Money at Call and Short 14,413.60 34,584.02 18,244.61
Notice
Investments 3,91,826.66 2,90,587.88 2,42,200.24
Advances 9,93,702.88 8,19,401.22 6,58,333.09
Fixed Assets 4,431.92 4,030.00 3,607.20
Other Assets 53,931.09 49,173.95 36,878.70
TOTAL ASSETS 15,30,511.26 12,44,540.69 10,63,934.32

Page 19 of 26
EXHIBIT 2: Statement of Profit & Loss of HDFC BANK for the last 3 years

(Rupees in Crores)

PARTICULARS Mar-20 Mar-19 Mar-18

12 months 12 months 12 months

INCOME
Interest / Discount on Advances / Bills 91,787.88 77,544.19 62,661.79
Income from Investments 20,633.32 19,997.46 16,222.37
Interest on Balance with RBI and Other Inter-Bank 1,828.93 635.7 523.88
funds
Others 562.52 794.7 833.31
TOTAL INTEREST EARNED 1,14,812.65 98,972.05 80,241.36
Other Income 23,260.82 17,625.88 15,220.30
TOTAL INCOME 1,38,073.47 1,16,597.94 95,461.66
EXPENDITURE
Interest Expended 58,626.40 50,728.83 40,146.49
Payments to and Provisions for Employees 9,525.67 7,761.76 6,805.74
Depreciation 1,195.85 1,140.10 906.34
Operating Expenses (excludes Employee Cost & 19,976.01 17,217.51 14,978.30
Depreciation)
TOTAL OPERATING EXPENSES 30,697.53 26,119.37 22,690.38
Provision Towards Income Tax 9,833.15 12,129.61 10,107.25
Provision Towards Deferred Tax 516.69 -1,008.12 -896.68
Other Provisions and Contingencies 12,142.39 7,550.08 5,927.49
TOTAL PROVISIONS AND CONTINGENCIES 22,492.23 18,671.57 15,138.06

TOTAL EXPENDITURE 1,11,816.15 95,519.77 77,974.93

NET PROFIT / LOSS FOR THE YEAR 26,257.32 21,078.17 17,486.73
NET PROFIT / LOSS AFTER EI & PRIOR YEAR 26,257.32 21,078.17 17,486.73
ITEMS
Profit / Loss Brought Forward 49,223.30 40,453.42 32,668.94
TOTAL PROFIT / LOSS AVAILABLE FOR 75,480.62 61,531.58 50,155.67
APPROPRIATIONS
APPROPRIATIONS
Transfer To / From Statutory Reserve 6,564.33 5,269.54 4,371.68
Transfer To / From Capital Reserve 1,123.85 105.34 235.52
Transfer To / From Revenue And Other Reserves 0 0 0
Dividend and Dividend Tax for The Previous Year 0 0 3,390.58

Equity Share Dividend 6,540.31 4,052.59 0

Tax On Dividend 0 0 0
Balance Carried Over To Balance Sheet 57,492.40 49,223.30 40,453.42
TOTAL APPROPRIATIONS 75,480.62 61,531.58 50,155.67

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EXHIBIT 3: Cash Flow of HDFC BANK for the last 3 years

(Rupees in Crores)

CASH FLOW OF HDFC BANK (in Rs. Cr.) Mar-20 Mar-19 Mar-18

12 months 12 months 12 months

NET PROFIT/LOSS BEFORE EXTRAORDINARY
ITEMS AND TAX 36,607.15 32,199.66 26,697.30
Net Cash Flow From Operating Activities -16,689.78 -56,054.67 26,074.07
Net Cash Used In Investing Activities -1,104.92 -1,326.12 -533.1
Net Cash Used From Financing Activities 22,851.79 15,718.00 48,411.43
Foreign Exchange Gains / Losses 213.99 95.35 10.59
NET INC/DEC IN CASH AND CASH
EQUIVALENTS 5,271.08 -41,567.44 73,962.99
Cash And Cash Equivalents Begin of Year 81,347.64 1,22,915.08 48,952.10
Cash And Cash Equivalents End Of Year 86,618.72 81,347.64 1,22,915.08

EXHIBIT 4: Financial Ratios of HDFC BANK for the last 3 years

(Rupees in Crores)

PARTICULARS Mar-20 Mar-19 Mar-18

PER SHARE RATIOS
Basic EPS (Rs.) 48.01 78.65 67.76
Diluted EPS (Rs.) 47.66 77.87 66.84
Cash EPS (Rs.) 50.07 81.59 70.88
Book Value [Excl. Reval Reserve]/Share (Rs.) 311.83 547.89 409.6
Book Value [Incl. Reval Reserve]/Share (Rs.) 311.83 547.89 409.6
Dividend/Share (Rs.) 2.5 15 13
Equity Dividend Rate (%) 250 750 650
Operating Revenue / Share (Rs.) 209.39 363.43 309.2
Net Profit/Share (Rs.) 47.89 77.4 67.38
KEY PERFORMANCE RATIOS
ROCE (%) 3.33 3.34 3.2
CASA (%) 42.23 42.37 43.49
Net Profit Margin (%) 22.86 21.29 21.79
Operating Profit Margin (%) 2.6 3.48 2.82
Return on Assets (%) 1.71 1.69 1.64
Return on Equity / Net worth (%) 15.35 14.12 16.45
Net Interest Margin (X) 3.67 3.87 3.76
Cost to Income (%) 38.52 38.41 39.62
Interest Income/Total Assets (%) 7.5 7.95 7.54
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Non-Interest Income/Total Assets (%) 1.51 1.41 1.43
Operating Profit/Total Assets (%) 0.19 0.27 0.21
Operating Expenses/Total Assets (%) 2 2.09 2.13
Interest Expenses/Total Assets (%) 3.83 4.07 3.77
VALUATION RATIOS
Enterprise Value (Rs. Cr) 16,92,584.96 16,24,316.38 12,98,053.53
EV Per Net Sales (X) 14.74 16.41 16.18
Price To Book Value (X) 2.76 4.23 4.62
Price To Sales (X) 4.12 6.37 6.12
Retention Ratios (%) 75.09 80.77 100
Earnings Yield (X) 0.06 0.03 0.04
Price/Cash EPS(x) 17.22 28.39 26.6
Dividend Yield (%) 0.29 0.65 0.69
EV/Net Sales(x) 5.38 7.56 7.65
EV/Core EBITDA(x) 12.66 18.82 18.82
EV/EBIT(x) 6.48 9.02 9.18
EV/CE(x) 0.4 0.6 0.58
M Cap / Sales 4.12 6.37 6.12
GROWTH RATIO
Core Operating Income Growth 16.46 20.32 20.99
Operating RATIO
Operating Profit Growth -18.84 -37.77 4.12
Net Profit Growth 24.57 20.54 20.19
BVPS Growth -43.08 33.76 17.33
Advances Growth 21.27 24.47 18.71
EPS Growth (%) 23.74 14.86 18.68
Liquidity Ratios
Total Debt/Equity(x) 0.06 0.05 0.13
Current Ratio(x) 0.34 0.32 0.31
Quick Ratio(x) 12.6 12.68 15.61
Interest Cover(x)
Total Debt/Mcap(x) 1.26 1.36 1.3
ASSETS QUALITY
Gross NPA 12,649.97 11,224.16 8,606.97
Gross NPA (%) 1 1 1
Net NPA 3,542.36 3,214.52 2,601.02
Net NPA (%) 0.36 0 0

Page 22 of 26
References :-

 https://www.hdfcbank.com/personal/about-us/overview/awards
 https://www.kotak.com/en/about-us.html
 https://www.icicibank.com/aboutus/history.page
 https://www.paisabazaar.com/sbi-bank/
 https://www.axisbank.com/about-us/corporate-profile
 https://www.business-standard.com/company/indusind-bank-5531/information/company-history
 https://www.capitalmarket.com/Company-Information/Information/About-Company/IndusInd-Bank-
Ltd/5531
 https://www.hdfc.com.mv/about/company-structure/#1513850522529-1ff78fb8-8a81
 https://www.motilaloswal.com/site/rreports/HTML/636558375327619587/index.htm
 https://www.hdfcbank.com/personal/resources/learning-centre/borrow/tips-on-how-to-grow-your-business
 https://www.financialexpress.com/market/hdfc-bank-rating-buy-new-leadership-looks-to-double-market-
share/2068573/
 https://www.managementstudyguide.com/impact-of-geography-on-banking-and-its-functions.htm
 https://en.m.wikipedia.org/wiki/HDFC_Bank#:~:text=A%20subsidiary%20of%20the%20Housing,Union%2
0Finance%20Minister%2C%20Manmohan%20Singh.
 https://www.technofunc.com/index.php/domain-knowledge/banking-domain/item/overview-of-banking-
industry
 https://www.ibef.org/industry/banking-india.aspx
 https://www.niit.com/india/knowledge-center-an-overview-of-the-banking-industry
 https://www.moneycontrol.com/financials/hdfcbank/balance-sheetVI/HDF01
 https://www.moneycontrol.com/financials/hdfcbank/profit-lossVI/HDF01#HDF01
 https://www.moneycontrol.com/financials/hdfcbank/cash-flowVI/HDF01#HDF01
 https://www.moneycontrol.com/financials/hdfcbank/ratiosVI/HDF01#HDF01
 https://stock-financials.valuestocks.in/en/hdfc-bank-ratio-analysis

Page 23 of 26
 UNDERTAKING

To Whom It May Concern

We, Deeptanshu K Kashyap, Grish Vasnani, Himanshi Bansal, Rishabh Bhaskar, Sanchit Kumar Israni
and Vidit More, hereby declare that this assignment is our original work and is not copied from anyone/
anywhere. If found similar to other sources, we shall take complete responsibility of the action, taken
thereof by, CFM Team.

Group No.: 47

Section: D

Batch: MBA – FT (2020 – 2022)

Date : 23/12/2020

NAME ROLL NO. SIGNATURE

Deeptanshu K Kashyap 201414

Grish Vasnani 201419

Himanshi Bansal 201424

Rishabh Bhaskar 201440

Sanchit Kumar Israni 201445

Vidit More 201460

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