HDFC BANK: COMPANY PROFILE

HDFC Bank was established in 1994 and • Type: Public

has since become one of the largest and • Industry: Banking and Financial
most successful private sector banks in Services
India. The bank is known for its customer- • Founded: August 1994
centric approach, advanced technology • Headquarters: Mumbai,
infrastructure, and a wide range of
Maharashtra, India
financial products and services.
.
 FINANCIAL PERFORMANCE ANALYSIS OF HDFC

⚬ Q2 FY24:Net profit rose by 50% YoY to Rs ⚬ FY23:Net profit grew by 23.5% YoY to Rs
1 15,976 crore.
2
36,945 crore.
⚬ Net interest income grew by 21% YoY. ⚬ Net interest income increased by 17.2% YoY.
⚬ Asset quality remained stable with gross NPA ratio ⚬ Gross NPA ratio was 1.2%.
at 1.2%.

3 ⚬ Profitability:Net profit margin: 28.0% in FY22

(up from 24.8% in FY21).
⚬ Return on equity (ROE): 17.0% in FY22.
⚬ Liquidity:Current ratio: 10.07 times in FY22.
⚬ Solvency:Debt-to-equity ratio: 7.2 in FY22.
⚬ Capital adequacy ratio: 18.7% in FY22.
 Introduction to Banking Product
Derivatives

Banking product derivatives are financial

instruments whose value is derived from an
underlying asset, index, or interest rate. They are
used by HDFC Bank to manage risk and provide
potential returns for investors.
 Types of Banking Product Derivatives
Offered by HDFC Bank

Stock Options Interest Rate Swaps Commodity Derivatives

Derivatives where the Agreements between two parties Derivatives based on

underlying asset is a stock. They to exchange interest rate cash commodities such as gold, oil, or
provide the right, but not the flows, based on a notional agricultural products, allowing
obligation, to buy or sell a stock principal amount over a specific investors to gain exposure to the
at a certain price. period. price movement of these assets.
Benefits and Risks of Banking
Product Derivatives

1 Benefits
Provide a means to hedge against market risks and volatility, reducing the impact of
adverse market movements on a portfolio.

2 Risks
Due to leverage, derivatives can result in large losses relative to initial investment if
the market moves against the position taken.
THANK YOU