Comparison of Financial and other Parameters of Big Eight Indian banks for five years

Because of Mergers* of PSU Banks in FY20 & FY21, Financials of Bank of Baroda as on / For FY ending 31-
March-2020; and Financials of PNB, Canara Bank and Union Bank of India as on / for FY ending 31-March-
2021 – are not comparable with financial figures of earlier years.

*Mergers >>
Merger w.e.f. 1-Apr-19
Merger w.e.f. 1-Apr-20 into
into

In addition to the above, Allahabad Bank merged into Indian Bank w.e.f. 1-Apr-20
Reserves and Surplus includes Statutory Reserves, Capital and Revenue Reserves including
Revaluation Reserves, Share Premium Balance and various other types of Reserves including
credit balance in Profit and Loss Account
Deposits include Demand Deposits (CASA – Current Account and Savings Account Deposits) and
Term Deposits.

Term Deposit includes Fixed Deposits, Recurring Deposits and Certificate of Deposits.
Current Accounts is part of Deposits of a Bank. They do not carry any interest obligation for the
bank.

Savings Account is a part of Deposits of a Bank. It is one of the two components of CASA
deposits (Low-Cost Deposit) of the bank. At HDFC Bank, Savings Accounts carry 3.0% rate of
interest for General Public and 4.0% rate of interest for Staff
CASA is the sum of Current Account and Savings Account Deposits as at the Balance Sheet Date

CASA to Total Deposit Ratio =

{Current Account Deposit + Savings Account Deposit} / Total Deposits
This ratio is as on the Balance Sheet Date
CA to Total Deposits : This is the ratio of Current Account Deposits to Total Deposits of the bank
as on the balance sheet date

SA to Total Deposits : This is the ratio of Savings Deposits to Total Deposits of the bank as on the
balance sheet date
Net Advances represents Funds Based Loans and Advances in the form of Bills Purchased and
Discounted, Term Loans, Packing Credit, Cash Credit, Overdraft etc., net of Provisions for NPAs.

Investments: represents both SLR as well as Non SLR investments. Investment in G-Sec and
Other Approved Securities, Investment in Shares, Investments in Bonds and Debentures of other
institutions/Banks, Investment in Subsidiaries, Joint Ventures etc. are few examples.
Net Interest Income is the difference between Total Interest Income and Total Interest Expended
for the financial year.

Other Income includes various types of Fee Based Incomes like Commission, Exchange Profits. It
includes all Income of the bank excluding Interest Income - Processing Fee, Commissions,
Exchange Profits, Rents, AMB/AQB Charges, etc..
Net Revenue is the Sum of Net Interest Income and Other Income. NET REVENUE = Net Interest
Income + Other Income

Operating Costs include all expenses of the Bank for FY excluding a) Interest Expended and b)
Provisions. Employees Cost, Rent, Electricity/Power/Water, Stationery, Printing, Marketing and
Advertisement, Housekeeping, Software Expenses, Postage, Courier, Repairs and Maint.,
Depreciation, Security, Training, Conveyance and Travel, Misc. Expenses are few examples.
Payments to and Provisions for Employees is part of Operating Cost representing Salary,
Allowances, Bonus etc. Paid/Provided for Employees. From FY 2021-22, fair-value of share
linked instruments (ESOP) granted after 31-Mar-21 is also being recognized as Expense.

Operating Profit is the difference between Net Revenue and Operating Costs. Operating Profit =
Net Revenue - Operating Cost
OR Operating Profit = Interest Income + Other Income - Interest Expenses - Operating Costs.
Profit Before Tax is equal to Operating Profit MINUS All provisions excluding Tax Provisions

Net Profit is equal to Profit Before Tax Less Tax Expenses. It can also be expressed as :
Operating Profit MINUS all provisions including Tax Provisions. It is the net of Profit and Loss
Account for the financial year.
Risk Weighted Assets is the sum of RWA – Credit Risk, RWA – Market Risk; RWA – Operational
Risk, It has been taken from Annual Reports, wherever not available, it has been arrived at by
Dividing Common Equity Tier I capital by the CET-I Ratio available.

Capital Adequacy Ratio is the Ratio of Total Capital (Tier I + Tier II) to the Aggregate Risk Weighted
Assets (i.e., Risk Weighted Assets for Credit Risk + Risk Weighted Assets for Market Risk + Risk
Weighted Assets for Operational Risk)
Tier I Ratio is the Ratio of Tier I Capital to the Aggregate Risk Weighted Assets (i.e., RWA for
Credit Risk + RWA for Market Risk + RWA for Operational Risk). Tier I Capital includes two
components: Common Equity Tier I capital and Additional Tier I Capital

Common Equity Tier I Ratio is the Ratio of Common Equity Tier I Capital to the Aggregate Risk
Weighted Assets (i.e., Risk Weighted Assets for Credit Risk + Risk Weighted Assets for Market
Risk + Risk Weighted Assets for Operational Risk).
Gross NPA is the Closing Balance of Gross Non-Performing Assets as provided in the Annual
Report of individual Banks

Net Non-Performing Assets is equal to Gross NPA MINUS Provisions for Non-Performing Assets.
The figures have been taken from respective annual reports of Banks
Gross NPA Ratio is the ratio of Gross-Non-Performing Assets to Gross Advances

Net NPA Ratio is the ratio of Net Non-Performing-Assets to Net Advances

Net Interest Margin is calculated by Dividing Net Interest Income by the Average Earning Assets
during the Financial Year. NIM or Net Interest Margin = (Interest Income - Interest Expenses)
DIVIDED BY Average Earning Assets

Earning Per Share is calculated by Dividing Profit After Tax (i.e., Net Profit) by the Average No. of
Outstanding Equity Shares
Dividend Per Share is the amount of Interim Plus Final Proposed Dividend of the Bank.
# In terms of RBI directions, because of COVID, no Bank paid any dividend for FY 19-20. HDFC Bank had paid an interim
special dividend of ₹ 5 per share (pre-split) –i.e., ₹ 2.50 post split; in commemoration of 25 years of Bank’s operations

Dividend Pay-out Ratio = Total Dividend on Equity Shares PLUS Dividend Distribution Tax – if
applicable, DIVIDED BY Profit after Tax (Net Profit). In the absence of information for 2022,
Dividend Per share has been divided by Earnings Per Share to arrive at Dividend Payout Ratio. (as
now there is no Dividend Distribution Tax)
Return on Average Assets = Profit after Tax (i.e., Net Profit) divided by Average Total Assets

Cost to Income Ratio = Operating Cost divided by Net Revenue

Staff Cost to Net Revenue: Employee Cost as a percentage of Net Revenue (NII + Other Income)

Return on Equity : Net Profit (PAT) divided by Average Net Worth of the bank
Branches : As per Annual Report / Investors’ Presentation of Banks

No. of Total ATMs: This information has been taken from Annual Reports / Investors’
presentations / Press Releases of Annual Results and in the absence of information there, it has
been collated from RBI’s website on Data Releases.
No. of Credit Cards: This information has been taken from RBI Website under the Menu:
Data Releases>Monthly>No. of ATMs/Cards and POS

No. of Debit Cards: This information has been taken from RBI Website under the Menu:
Data Releases>Monthly>No. of ATMs/Cards and POS
No. of POS Terminals: This information has been taken from RBI Website under the Menu:
Data Releases>Monthly>No. of ATMs/Cards and POS

No. of Employees : information has been collated from the Annual Reports of the Banks. In case
of ICICI Bank information has been taken from Earnings Conference Call under P&L Details