A Study On Financial Performance of Banks in India

A
WINTER INTERNSHIP REPORT

ON
“A STUDY ON FINANCIAL PERFORMANCE OF TOP FIVE PRIVATE BANKS IN
INDIA”
IN THE PARTIAL FULFILMENT OF THE AWARD OF THE DEGREE OF MASTER

OF BUSINESS ADMINISTRATION
SUBMITTED BY,
ARJU H. KHENI
(SYMBA SEM-4)
UNDER THE GUIDANCE OF

DR. NAMRATA KHATRI
SUBMITTED TO,
DEPARTMENT OF BUSINESS & INDUSTRIAL MANAGEMENT
AFFILIATED TO VNSGU, SURAT
ACKNOWLEDGEMENT
I would like to thank to Veer Narmad South Gujarat University to include this winter training project in the
curriculum of MBA program in such a manner.
I would like to take these opportunities to express our deep and sincere gratitude to “Department of Business
and Industrial Management” that gave me a chance to show my capability and allowed me to carry out this
project.
A project of this nature involves the support of many peoples, I believe that I would be lacking in my duty if I
do express my sincere gratitude to them.
I am thankful to Dr. Namrata Khatri for giving me relevant and necessary guidance, and supporting me
understand of this project. Without her guidance this project would not have been the way it is.
YOURS SINCERELY,
ARJU H. KHENI
S.Y.MBA (SEM - 4)
EXECUTIVE SUMMERY
Banking system is an important constituent of overall economic system. It plays an important role in
mobilizing the nation’s savings and channelizing them into high investment priorities and better utilization.
The evolution of banking system in India is a gradual and continuous process since ancient times. The present
study is the most significant study to understand the contribution of private sector banks by studying about
their financial performance. The private sector commercial banks were established as Banking Companies as
per the Companies Act, 1956. In the Indian banking scene, the public sector banks have dominant position as
compared to private sector banks, but private sector banks are also gaining popularity and public faith due to
their customer oriented approach, efficient financial services and effective use of technology. Considering this
background, the study of financial performance of private sector commercial banks is apt to the situation and a
unique concept. The major objectives of this study are to review their financial performance through the
analysis and interpretation of their financial statements and to decide the best performing bank considering the
study period from 2012 to 2021.
The present study considers the sample of five private sector commercial banks in India. In order to undertake
the financial analysis the financial information of select banks is collected from secondary sources of data like
annual reports of the respective banks, Indian Banks’ Association reports and study material of Indian
Institute of Banking and Finance and other published sources.
The study is organized into fifth chapters as the first chapter deals with the introduction and brief history of
banking and profile of select banks is studied. The second chapter is involved the review of literature. The
third chapter gives a research methodology. The forth chapter deals with the financial analysis of select banks
using the technique of ratio analysis and annova test. Total 11 ratios have been computed to examine the
financial performance of banks. The fifth chapter specifies the findings, conclusions and suggestions.
The financial performance of select private sector banks is satisfactory in terms of liquidity, profitability,
operating efficiency and managerial efficiency using ratio and the same is also proved using ANOVA test.
The bank management in India must give equal importance to profitability and liquidity for their stability and
further growth. The Government must think seriously to pass the single comprehensive Act to regulate the
banking services in India and to ease the existing complex regulatory environment.
In this project I have taken the HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank and Induslnd
Bank on the basis of market capitalization. In this project I have used current ratio, cash deposit ratio, credit
deposit ratio, capital adequacy ratio, return on equity ratio, return on asset ratio, return on capital employed
ratio, net profit ratio, net worth ratio, interest spread ratio, proprietary ratio, total asset turnover ratio and debt
to equity ratio to measure the financial performance of the bank. Private Banks are banks owned by either the
individual or a general partner with limited partner.
TABLE OF CONTENT
DECLARATION…………………………………………………………………………………………………………..
COLLEGE CERTIFICATE………………………………………………………………………………........................
ACKNOWLEDEMENT…………………………………………………………………………………………………...
EXECUTIVE SUMMARY………………………………………………………………………………………………..
INTRODUCTION...............................................................................................................................................................3
 History of banking system.......................................................................................................................................4

 Advantages & Disadvantages of bank.....................................................................................................................6
 Structure of banking sector in India.......................................................................................................................11
 Adoption of banking Industry................................................................................................................................12
 Types of bank services….......................................................................................................................................15
 Industry profile.......................................................................................................................................................17
 Company profile....................................................................................................................................................18
 HDFC bank............................................................................................................................................................19
 ICICI bank.............................................................................................................................................................22
 Kotak Mahindra Bank............................................................................................................................................24
 Axis Bank..............................................................................................................................................................28
 IndusInd Bank.......................................................................................................................................................30
LITERATURE REVIEW…............................................................................................................................................32
RESEARCH METHODOLOGY....................................................................................................................................33
 Research Problem statement..................................................................................................................................33

 Objective of the study............................................................................................................................................33
 Scope of the study..................................................................................................................................................33
 Research Design.....................................................................................................................................................33
 Types of data..........................................................................................................................................................33
 Sources of Data.....................................................................................................................................................34
 Time span of data..................................................................................................................................................34
 Statistical tool.........................................................................................................................................................34
 Variables…............................................................................................................................................................34
 Limitation..............................................................................................................................................................34
DATA ANALYSIS & INTERPRETATION..................................................................................................................35
 Current ratio...........................................................................................................................................................36
 Cash deposit ratio...................................................................................................................................................38
 Credit deposit ratio.................................................................................................................................................40
 Net profit ratio........................................................................................................................................................42
 Net worth ratio.......................................................................................................................................................44
 Return on asset ratio..............................................................................................................................................46
 Return on capital employed ratio..........................................................................................................................48
 Interest spread.......................................................................................................................................................50
 Total asset turnover ratio.......................................................................................................................................52
 Proprietary ratio.....................................................................................................................................................54
 Deposit...................................................................................................................................................................56
FINDINGS & CONCLUSION.........................................................................................................................................59
BIBLIOGRAPHY.............................................................................................................................................................60
ANNEXURE…………………………………………………..…………………………………………………….……..
CHAPTER – 1
INTRODUCTION
A STUDY ON FINANCIAL PERFORMANCE OF TOP FIVE PRIVATE BANK IN INDIA
INTRODUCTION OF BANKING INDUSTRY IN INDIA:

The banking sector is the economy's backbone and a prerequisite for the country's survival. It
offers a wide range of financial services, including savings account, current account, ATM,
deposit, debit card, credit card, internet banking, investment, financial advice, and other financial
services. It plays an essential role our day to day transactions. They act as intermediaries, help us to
pool and channelize the savings. The banking industry's growth is dependent on the public's
traditional services, such as deposits and loans. The banking sector's primary purpose is to collect
money from depositors and lend it to those who are in need. Banks are the most prominent
participants in the financial and stock markets.
The fund is provided for the investment and economic development which contributes in the
overall performance. It developed into a division of our society which included corporations as
well as individual customers. The banking sector, as we all know, is the economy's backbone and
has a direct impact on economic development. Customer service, deposit and loan facilities, and
financial results are all factors that affect the bank's ability to grow. Following the privatization of
India's banking industry, the sector has experienced rapid growth, with public banks expanding
their services and earnings. In terms of financial performance, private sector banks are thought to
be better planned or structured than public or old private sector banks. Public and private sector
banks each have their own set of advantages and disadvantages, so before making any financial
decisions about a bank, it is vital to determine its financial efficiency, regardless of whether it is
public or private. Due to Covid-19 pandemic the public sector banks and private sector banks are
affected badly. As a result, financial performance review of public and private sector banks is
recommended.
Bank is very important part of our country. There are many types of Bank like, Commercial Bank,
Public Sector Bank, Private Sector Bank, Co-operative Bank etc. Private Sector Bank has two
types. First is Old Private Sector and second is New Private Sector Bank. From past few years
Indian banks have made achievements which are outstanding. Since a diversity of models and
advance technology has been emerged among finance industries, some of the traditional banking
eminences between banks, insurance companies, and securities firms have belittled. Though there
are changes in the banking sector still banks maintain and perform their primary role of accepting
deposits and lending funds from these deposits. In India the banks have been sported by an
expectant network of branches that cater the financial needs of all walks of people.
DEPARTMENT OF BUSINESS & INDUSTRIAL MANAGEMENT Page 1

The rapid transformation in the banking industry over the last decade has made the industry
stronger, cleaner, transparent, efficient, faster, disciplined and a lot morecompetitive. The banking
industry in India has a huge canvass of history, which covers the traditional banking practices from
the time of Britishers to the reforms period, nationalization to privatization of banks and now
increasing numbers of foreign banks in India. Therefore, banking in India has been through a long
journey. Rural banking and micro financing are the two gateways for the Indian banks to grow and
compete with international banks. As per the census of 2011, 58.7% of households are availing
banking services in the country. There are 102,343 branches of Scheduled Commercial Banks
(SCBs) in the country, out of which 37,953 (37%) bank branches are in the rural areas and 27,219
(26%) in semi-urban areas, constituting 63% of the total numbers of branches in semi-urban and
rural areas of the country. However, a significant proportion of the households, especially in rural
areas, are still outside the formal fold of the banking system. To extend the reach of banking to
those outside the formal banking system, Government and Reserve Bank of India (RBI) are taking
various initiatives from time to time.
Today those who have no education or minimal literacy are keen to know the financial
performance of the banks in which they deposit or make an invest. Earlier financial analysis was
done through only by going through the records and files but now we use tools or techniques to
make analysis. The use of technology has brought a revolution in the working style of the banks
and it has pervaded each and every aspect of human life in a drastic manner. Advent of anytime,
anywhere banking has become possible due to technology adoption. Life has changed enormously
due to gadgets and appliances becoming easy to use and that too, in affordable prices.
Mobile phones, Digital cameras, I- phones, Dish TV are now common household goods and no
more come in category of luxury items. Together with that, the entry of plastic money has opened
new avenues for cashless transactions considered safer and more convenient than watching every
time whether the wallets are still struck in our hip pockets, vanity bags or not when we move out
for shopping or on journeys.
Banks play a vital role in the Indian Economy because the banking industry handles finances in the
country including cash and credit. The main function of the banks is to accept deposits from the
public and grant credit to those who need some extra money for short-term as well as long-term
requirement. The Indian banking system has moved a long way from a totally regulated
environment to a deregulated market economy, even though there are many banks today merging
and going bankrupt. The RBI is the highest banking regulatory body in India. It was established by
the RBI Act, 1934 on 1st April 1935. Before that time, banking was handled by three private sector
banks which became Imperial Bank on the 1st January 1949. In India, ten public sector banks were
merged with four big public sector banks on 30th August 2019. Now the public sector banks in
India are only ten. Moreover, the number of private sector banks is reduced to twenty two.
Comparing and evaluating the financial performance of financial institutions is a very important.
However, fast and continuous changes in the global economic environment require more efforts
and serious interest from concerned bodies. The growth of the banking sector in the country has
also led to the development of several techniques for the measurement of the financial performance
as well as the use of different parameters for evaluating the performance of banks. The financial
performance of a bank is not only important to the management of banks but also important for
many stakeholders. Given this background, this study is an attempt to examine the financial
performance of eight selected private banks in India. It provides up-to-date financial analysis about
the performance of these selected banks in India, assisting in making decisions with regard to
investment.
Banking is an industry that handles cash, credit, and other financial transactions. Banks provide a
Safe place to Store extra cash and credit. They offer savings accounts, Certificates of Deposit, and
checking accounts. Banks use these deposits to make loans. These loans include home mortgages,
business loans, and car loans.
A Bank is a financial institution licensed to receive deposits and make loans. Two of the most
common types of banks are commercial/retail and investment banks. Depending on type, a bank
may also provide various financial services ranging from providing safe deposit boxes and
currency exchange to retirement and wealth management. The banks are the institutions that can
create credit
i.e. creation of additional money for lending Thus ‘creation of credit is the unique features of
banking. The Indian banking system consists of 12 public sector banks, 22 private sector banks, 44
foreign banks, 43 regional rural banks, 1,484 urban cooperative banks and 96,000 rural cooperative
banks in addition to cooperative credit institutions. As of March 2021, the total number of ATMs
in India increased to 213,575.
Banks make extra money by providing loans for different Product to the loan. The bank makes the
extra money by lending money to the eligible person at certain rates. Nowadays, banks provide
loans for various requirements such as study loan, car loan, home loan, personal loans, etc.
Different banks provide different loans at different interest rates.
Financial performance is the process of measuring how effectively a company utilizes its assets
from primary mode of business to raise incomes it also measure organizations whole financial
health over a particular period of time. Financial performance of the organization deals with the
financial strength or weakness of bank accurately establishing a relationship between the balance
sheet and income statement. This process used to clearly understand the growth of long-term and
short-term of bank. There are several ways to analyze data the researcher used ratio analysis in this
research. This analysis also- helpful determines the credit worthiness of the bank to evaluate the
market position among the competitors.
It is most important to decide appropriate parameter at the time of measuring financial performance
of banks. Till today many experts have given their opinion on parameters of financial performance
of banks, even enormous numbers of research are available on financial performance of banks
which has used different parameters for measuring financial performance. One more important
aspect which one should highlight at the time of selecting financial performance parameters is
availability of data on selected parameters for desired time period.
“The performance of banks in India has been assessed by considering variables, viz. branches,
deposits, advances, investments, spread, burden, business, operating profits, NPA, cost of deposits,
cost of borrowings, cost of funds, return on advances, return on investments, return on funds, net
profit, spread, burden and operating expenses and sectorial deployment of credit.”
Bank Asset size effect on the financial performance of banks has always been a controversial topic
among researchers, where some of them see that big bank enjoy economy of scale resulting in less
overhead express and thus leading to a better financial performance than smaller bank. Others see
that large bank suffers from bureaucracy which makes them slower in responding to economic
changes resulting in a lower profitability. Bank asset size effect on the financial performance of
bank is examined the both return on asset and return on equity.
According to the jokipii, many investor that large bank s in terms of asset size are more secured
and more profitable than small banks due to many reasons such as economy of scale and big banks
are better established than smaller bank. The financial performance of bank size is depending on

the asset of the bank so that the more the bank assets have the good financial performance. The
financial performance of bank age is depending on the older the banks are good financial
performance.
Meaning of Bank:
Banking is defined as “Accepting of deposits of money from public for the purpose of Lending or
Investment, repayable on demand or otherwise and withdrawal by cheque, draft, or otherwise”
The word bank derived from the Latin word banks or banca meaning a bench. A bank refers to the
function of accepting deposits, lending, repaying the deposited money on demand and functioning
as an agent of any national economic structure. The development of banking is an inventible pre-
condition.
History of Indian Banking System:

The first banks were Bank of Hindustan (1770-1829) and The General Bank of India, established
1786 and since defunct. Later on, the east India Company started three presidency banks with
government participation. The largest bank, and the oldest still in existence, is the State Bank of
India, which originated in the Bank of Calcutta in June 1806, which almost immediately became
the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank
of Bombay and the Bank of Madras, all three of which were established under charters from the
British East India Company.
The first Indian joint stock bank known as Oudh commercial bank was set up in 1880 and Punjab
National Bank was launched in 1894. There were as many as 648 commercial banksin India by the
end of 1947 and as many as 161 banks failed during 1913-14. Thus, there was great need of an
institution to control and regulate banking in the country.
The three banks merged in 1921 to form the Imperial Bank of India, which, upon India’s
independence, became the State Bank of India in 1955. For many years the presidencybanks acted
as quasi- central banks, as did their successors, until the Reserve Bank of India was established in
1935. In 1955, RBI acquired control on Imperial Bank of India, which wasrenamed as State Bank
of India. In 1959, SBI took over control of eight private banks floated in the erstwhile princely
states and making them as its 100% subsidiaries.
In 1969 the Indian government nationalized all the major banks that it did not already own and
these have remained under government ownership. They are run under a structure known as
‘profit-making public sector undertaking’ (PSU) and are allowed to compete and operate as
commercial banks. The Indian banking sector is made up of four types of banks, as well as the
PSUs and the state banks; they have been joined since the 1990s by new private commercial banks
and a number of foreign banks.
The banking industry saw a revolution after 14 major commercials were nationalized in June 1982.
More than 90% of the bank deposits come under the control of the government. Agricultural Credit
Development, Rural Planning and Credit Cell and agricultural refinance and Development
Corporation were combined together to set up Rational Bank for Agricultural and Rural
Development. In July 1982. Later the Exim Bank and National Housing Bank were set up in 1988
respectively. The banking industry saw a revolution after 14 major commercials were nationalized
in June 1982. More than 90% of the bank deposits come under the control of the government.

Advantages & Disadvantages of Banks:

Advantages of Banks:
1) Safety of Public Wealth:
Before the introduction of the modernized banking system, people used to save their money in hard
cash. They stored this cash in lockers, underground, with the grains, etc. There were so many
instances when the money got stolen, eaten by the rats or simply rot through the years. However,
the modern banking system completely eliminated the need to store hard cash. It actually helps
save a huge proportion of public wealth that used to get spoiled in storage.
2) Availability of Cheap Loans:

Before modern banks were established, people would borrow money from local money lenders,
landlords, merchants or other wealthy individuals. These loans were given at exorbitant interest
rates that most people couldn’t afford to pay, in the process the borrower would always remain in
debt. It was a vicious cycle. Modern banks started providing cheaper loans to the underprivileged
section of the society, breaking the whole expensive loans system.
3) Propellant of Economy:
Banks create money with a system called credit creation. With the help of credit creation, banks
can lend a lot more money than the deposits that it holds. When banks lend this money to
agriculture, industries, small businesses, and service providers, they are actually helping the
economy grow exponentially. This, in turn, creates employment and spending power. Overall this
one function of the bank is so powerful that the entire economy of any country relies on it.
4) Economies of Large Scale:

An extremely important benefit of any bank is its deep and wide reach through the branch banking
system and the benefits of large scale operations. The wider the bank can reach the better services
it can provide. Now a day’s banks provide services of net banking, card payments, ATM’s, etc. at
even the most far-fetched and backward areas. Due to these large scale operations, the services
have become extremely cheap, or sometimes even free.
5) Development in Rural Areas:

Banks aid rural development in more than one way. Firstly, the government makes it mandatory for
the banks to lend to specialized sectors such as agriculture, rural infrastructure, etc. This leads
to the development of modern infrastructure and methods in rural areas, thereby bringing in
growth. Secondly, with the banks opening their branches in the backward areas, the rural
population has benefits of modern bank facilities such as check-in accounts, ATM’s, locker
facility, etc. Furthermore, when a new bank branch opens in a village, it needs facilities such as 24-
hour electricity supply, internet connection, new staff etc. This creates employment and the
villagers can also benefit from facilities of electricity and internet.
6) Global Reach:
Many banks operate at the multinational level, this has helped people and businesses in a way that
was not possible before the establishment of modern banks. Multinational banks aids in remittance
of cash, exchanging one currency for another; aids in export by transferring documents and

payments; lend money to government, institutions and other world organizations. The reach of the
banks is unlimited and it has helped in making the world a global village.
Disadvantages of Banks:
1) Chances of Bank going Bankrupt:
The world economy goes through turbulent times every few years. Events such as great depression
of 1929, World War I & II, dot com bubble of 2000, or great recession of 2008, etc. expose banks
to unnatural risks. During delicate periods, if all the people decide to withdraw their money from
the bank, all at once, the bank will become bankrupt. Due to the function of credit creation, banks
never have enough money to pay all its customers at the same time. People, without a doubt, will
lose their money if the bank goes bankrupt.
2) Risk of Fraud and Robberies:

The rise in internet banking has given rise in cybercrime as well. Now more people are exposed to
the risk of credit card thefts, stolen passwords, net banking frauds, etc. There have been robberies
where robbers have stolen millions of dollars through the internet, without entering the bank
premises physically. With the rise in internet banking, there will be a more innovative way for
conmen and robbers to cheat people. This leaves the public vulnerable. This also increases the
expenses that banks have to incur to safeguard their systems, which are eventually charged from
the customers.
3) Risk of Public Debt:

This is not the risk of the bank per se, but this is the risk that people take on themselves while
dealing with a bank. Say a person is in the habit of maxing out his credit card every month and
repays the bare minimum then he will spiral into debt very fast. The habit of borrowing more than
a person can afford to repay is actually a personal bad habit, however, the easy lending policies of
banks add fuel to the fire. This can be damaging to people’s personal finances. It even affects
businesses that take term loans and working capital loans from the banks and cannot repay it.
Comparatively fewer businesses are affected by debt epidemic, but it still exists.
This brings us to the conclusion that modern banks have benefited society in many ways, and its
drawbacks are such that can be easily overcome by proper policies and due diligence efforts. Thus
overall the rise of banks has been a blessing for the economy and the society.

Structure of Banking Sector in India:

Reserve Bank of India is the Central Bank of our country. It was established on 1st April 1935
under the RBI Act of 1934. It holds the apex position in the banking structure. RBI performs
various developmental and promotional functions. As of now 26 public sector banks in India out of
which 21 are nationalized banks and 5 are State Bank of India and its associate banks. There are
total 92 commercial banks in India. Public sector banks hold near about 75% of the total bank
deposits in India.
Indian Banks are classified into commercial banks and Co-operative banks. Commercial banks
comprise: (1) Schedule Commercial Banks (SCBs) and non-scheduled commercial banks. SCBs
are further classified into private, public, foreign banks and Regional Rural Banks (RRBs); and (2)
Co-operative banks which include urban and rural Co-operative banks.
The Indian banking industry has its foundations in the 18th century, and has had a varied
evolutionary experience since then. The initial banks in India were primarily traders’ banks
engaged only in financing activities. Banking industry in the pre-independence era developed
with the Presidency Banks, which were transformed into the Imperial Bank of India and
subsequently into the State Bank of India.
The initial days of the industry saw a majority private ownership and a highly volatile work
environment. Major strides towards public ownership and accountability were made with
Nationalization in 1969 and 1980 which transformed the face of banking in India. The industry in
recent times has recognized the importance of private and foreign players in a competitive scenario
and has moved towards greater liberalization.
Banks are classified into classified into four categories:
 Commercial Banks
 Small Finance Banks
 Payments Banks
 Co-operative Banks
Commercial Banks can be further classified into public sector banks, private sector banks, foreign
banks and Regional Rural Banks (RRB). On the other hand, cooperative banks are classified into
urban and rural. Apart from these, a fairly new addition to the structure is payments bank.

Structure of Indian banking system is as follow:
Bank Classification in India
Commercial Small Finance Payments bank Co- Operative

Bank Bank bank
Public Sector Urban Co-op.
Foreign
State Co-op.
Private Sector
RRB
1) Commercial Bank:
Commercial Banks are regulated under the Banking Regulation Act, 1949 and their business model
is designed to make profit. Their primary function is to accept deposits and grant loans to the
general public, corporate and government. These institutions run to make profit. They cater to the
financial requirements of industries and various sectors like agriculture, rural development, etc. it is
profit making institution owned by government or private of both. Commercial banks can be
divided into,
 Public Sector Banks

 Private Sector Banks
 Foreign Banks
 Regional Rural Banks
a) Public Sector Banks:

These are the nationalized banks and account for more than 75 per cent of the total banking
business in the country. Majority of stakes in these banks are held by the government. In terms of
volume, SBI is the largest public sector bank in India and after its merger with its 5 associate banks
(as on 1st April 2017) it has got a position among the top 50 banks of the world.
There are a total of 12 nationalized banks in the country namely below:

Bank of Maharashtra Indian Bank

Bank of Baroda Punjab & Sind Bank
Bank of India Punjab National Bank
Canara Bank State Bank of India
Central Bank of India Union Bank of India
Indian Overseas Bank UCO Bank
b) Private Sector:
These include banks in which major stake or equity is held by private shareholders. All the banking
rules and regulations laid down by the RBI will be applicable on private sector banks as well.
Axis Bank Induslnd Bank
Bandhan Bank Jammu and Kashmir Bank
City Union Bank Karnataka Bank
Dhanlaxmi Bank Kotak Mahindra Bank
DCB Bank Karur Vysya Bank
Federal Bank Lakshmi Vilas Bank
HDFC Bank Nainital Bank
ICICI Bank RBL Bank
IDFC Bank South Indian Bank
IDBI Bank TamilNadu Mercantile Bank
YES Bank
c) Foreign Banks:
A foreign bank is one that has its headquarters in a foreign country but operates in India as a
private entity. These banks are under the obligation to follow the regulations of its home country as
well as the country in which they are operating. Given below is the list of foreign banks operating
in India.
Australia and New Zealand National Australia Bank Westpac Banking

Banking Group Ltd. Corporation
Bank of Bahrain & Kuwait AB Bank Ltd. Sonali Bank Ltd.
BSC
Bank of Nova Scotia Industrial & Commercial Bank BNP Paribas
of China Ltd.
Credit Agricole Corporate & Societe Generale Deutsche Bank
Investment Bank
HSBC Bank PT Bank Maybank Indonesia Mizuho Bank Ltd.
TBK
Sumitomo Mitsui Banking MUFG Bank, Ltd. Cooperatieve Rabobank
Corporation U.A.
Doha Bank Q.P.S.C Qatar National Bank (Q.P.S.C.) JSC VTB Bank
Sberbank United Overseas Bank Ltd FirstRand Bank Ltd
Shinhan Bank Woori Bank KEB Hana Bank
Industrial Bank of Korea Bank of Ceylon Credit Suisse A.G

CTBC Bank Co., Ltd. Krung Thai Bank Public Co. Abu Dhabi Commercial
Ltd. Bank Ltd.
Mashreq Bank PSC First Abu Dhabi Bank PJSC Emirates Bank NBD
Barclays Bank Plc. Standard Chartered Bank The Royal Bank of Scotland
plc
American Express Banking Bank of America Citibank
Corporation
J.P. Morgan Chase Bank N.A Kookmin Bank SBM Bank (India) Limited
DBS Bank India Limited
d) Regional Rural Banks:
These are also scheduled commercial banks but they are established with the main objective of
providing credit to weaker sections of the society like agricultural labourers, marginal farmers and
small enterprises. They usually operate at regional levels in different states of India and may have
branches in selected urban areas as well. Other important functions carried out by RRBs include.
 Providing banking and financial services to rural and semi-urban areas.
 Government operations like disbursement of wages of MGNREGA workers, distribution of
pensions, etc.
 Para-Banking facilities like debit cards, credit cards and locker facilities.
2) Small Finance Banks:
This is a niche banking segment in the country and is aimed to provide financial inclusion to
sections of the society that are not served by other banks. The main customers of small finance
banks include micro industries, small and marginal farmers, unorganized sector entities and small
business units. These are licensed under Section 22 of the Banking Regulation Act, 1949 and are
governed by the provisions of RBI Act, 1934 and FEMA.
Au Small Finance Bank Ltd. Jana Small Finance Bank Ltd.

Capital Small Finance Bank Ltd. North East Small Finance Bank Ltd.
ESAF Small Finance Bank Ltd. Suryoday Small Finance Bank Ltd.
Equitas Small Finance Bank Ltd. Utkarsh Small Finance Bank Ltd.
Fincare Small Finance Bank Ltd. Ujjivan Small Finance Bank Ltd.
3) Payments Bank:
This is a relatively new model of bank in the Indian Banking industry. It was conceptualized by the
RBI and is allowed to accept a restricted deposit. The amount is currently limited to Rs. 1 Lakh per
customer. They also offer services like ATM cards, debit cards, net-banking and mobile-banking.

4) Co-operative Banks:
Co-operative banks are registered under the Cooperative Societies Act, 1912 and they are run by an
elected managing committee. These work on no-profit no-loss basis and mainly serve
entrepreneurs, small businesses, industries and self-employment in urban areas. In rural areas, they
mainly finance agriculture-based activities like farming, livestock and hatcheries.
Urban Co-operative Banks State Co-operative Banks
a) Urban Co-operative Banks:
Urban Co-operative Banks refer to the primary cooperative banks located in urban and semi-urban
areas. These banks essentially lent to small borrowers and businesses centered around
communities, localities work place groups. According to the RBI, on 31st March, 2003 there were
2,104 Urban Co-operative Banks of which 56 were scheduled banks. About 79% of these are
located in five states, – Andhra Pradesh, Gujarat, Karnataka, Maharashtra and Tamil Nadu.
b) State Co-operative Banks:
A State Cooperative Bank is a federation of the central cooperative bank which acts as custodian of
the cooperative banking structure in the State. Banks can also be classified on the basis of
Scheduled and Non-Scheduled Banks. It is essential for every individual to check if they are
holding their savings or deposit account with a Scheduled Bank or Non-Scheduled Bank.
Scheduled Banks are also covered under the depositor insurance program of Deposit Insurance and
Credit Guarantee Corporation (DICGC), which is beneficial for all the account holders holding a
savings and fixed / recurring deposit account. Under DICGC, bank deposits of up to Rs 1 lakh,
including the fixed, savings, current and recurring deposits, per depositor per bank in the event
of bank failure are insured.
5) Scheduled Banks:
Scheduled banks are covered under the 2nd Schedule of the Reserve Bank of India Act, 1934. To
qualify as a scheduled bank, the bank should conform to the following conditions:
 A bank that has a paid-up capital of Rs. 5 Lakh and above qualifies for the schedule bank category.
 A bank requires to satisfy the central bank that its affairs are not carried out in a way that causes
harm to the interest of the depositors.
 A bank should be a corporation rather than a sole-proprietorship or partnership firm.
6) Non-scheduled Banks:
Non-scheduled banks refer to the local area banks which are not listed in the Second Schedule of
Reserve Bank of India. Non-Scheduled Banks are also required to maintain the cash reserve
requirement, not with the RBI, but with them.

Adoption of banking technology:

The IT revolution has had a great impact on the Indian banking system. The use of computers has
led to the introduction of online banking in India. The use of computers in the banking sector in
India has increased many folds after the economic liberalization of 1991 as the country's banking
sector has been exposed to the world's market. Indian banks were finding it difficult to compete
with the international banks in terms of customer service, without the use of information
technology. The RBI set up a number of committees to define and co-ordinate banking technology.
 In 1984 was formed the Committee on Mechanization in the Banking Industry (1984) whose
chairman was Dr. C Rangarajan, Deputy Governor, Reserve Bank of India. The major
recommendations of this committee were introducing MICR technology in all the banks in the
metropolises in India. This provided for the use of standardized cheque forms and encoders.
 In 1988, the RBI set up the Committee on Computerization in Banks (1988) headed by Dr. C
Rangarajan. It emphasized that settlement operation must be computerized in the clearing houses of
RBI in Bhubaneswar, Guwahati, Jaipur, Patna and Thiruvananthapuram. It further stated that there
should be National Clearing of inter-city cheques at Kolkata, Mumbai, Delhi, Chennai and MICR
should be made operational. It also focused on computerization of branches and increasing
connectivity among branches through computers. It also suggested modalities for implementing
on-line banking. The committee submitted its reports in 1989 and computerization began from
1993 with the settlement between IBA and bank employees' associations.
 In 1994, the Committee on Technology Issues relating to Payment systems, Cheque Clearing and
Securities Settlement in the Banking Industry (1994) was set up under Chairman W. S. Saraf. It
emphasized Electronic Funds Transfer (EFT) system, with the BANKNET communications
network as its carrier. It also said that MICR clearing should be set up in all branches of all those
banks with more than 100 branches.
 In 1995, the Committee for proposing Legislation on Electronic Funds Transfer and other
Electronic Payments (1995) again emphasized EFT system.
Indian Banking Industry Analysis:

Types of Bank Service:

There are 18 types of services provided by the bank:
1. Advancing of Loans:
Banks are profit-oriented business organizations. So they have to advance a loan to the public and
generate interest from them as profit. After keeping certain cash reserves, banks provide short-
term, medium-term, and long-term loans to needy borrowers.
2. Overdraft:
Sometimes, the bank provides overdraft facilities to its customers through which they are allowed
to withdraw more than their deposits. Interest is charged from the customers on the overdrawn
amount. Bank Overdraft is different from cash credit.
3. Discounting of Bills of Exchange:

Discounting of Bills of Exchange is another popular type of lending by modern banks. Through
this method, a holder of a bill of exchange can get it discounted by the bank. In a bill of exchange,
the debtor accepts the bill drawn upon him by the creditor (i.e., holder of the bill) and agrees to pay
the amount mentioned on maturity.
After making some marginal deductions (in the form of commission), the bank pays the bill’s value
to the holder. When the bill of exchange matures, the bank gets its payment from the party, which
had accepted the bill.
4. Check/Cheque Payment:
Banks provide cheque pads to the account holders. Account-holders can draw cheques upon the
bank to pay money. Banks pay for cheques of customers after formal verification and official
procedures.
5. Collection and Payment of Credit Instruments:

Different credit instruments such as the bill of exchange, promissory notes, cheques, etc., are used
in modern business. Banks deal with such instruments. Modern banks collect and pay different
types of credit instruments as the representative of the customers.6. Foreign Currency Exchange:
Banks deal with foreign currencies. As customers’ requirement, banks exchange foreign currencies
with local currencies, which is essential to settle down the dues in the international trade.
7. Consultancy:
Modern commercial banks are large organizations. In this function, banks hire financial, legal, and
market experts who advise customers regarding investment, industry, trade, income, tax, etc. They
can expand their function to consultancy business. However, for several reasons, banks need to
disclose customers’ information to government and regulatory authorities.
8. Bank Guarantee:
Customers are provided the facility of bank guarantee by modern commercial banks. When
customers have to deposit certain funds in governmental offices or courts for a specific purpose, a
bank can present itself as the guarantee for the customer instead of depositing funds by customers.

9. Remittance of Funds:
Banks help their customers in transferring funds from one place to another through cheques, drafts,
etc.
10. Credit cards:
A credit card is cards that allow their holders to make purchases of goods and services in exchange
for the credit card’s provider immediately paying for the goods or service, and the cardholder
promising to pay back the amount of the purchase to the card provider over a period of time, and
with interest.
11. ATMs Services:

ATMs replace human bank tellers in performing giving banking functions such as deposits,
withdrawals and account inquiries. Key advantages of ATMs include:
 24-hour availability
 Elimination of labor cost

 Convenience of location
12. Debit cards:

Debit cards are used to withdraw funds directly from the cardholders’ accounts electronically. Most
debit cards require a Personal Identification Number (PIN) to be used to verify the transaction.
13. Home banking:
Home banking is the process of completing the financial transaction from one’s own home instead
of utilizing a branch of a bank. It includes making account inquiries, transferring money, paying
bills, applying for loans, directing deposits.
14. Online banking:

Online banking is a service offered by banks that allows account holders to access their account
data via the internet. Online banking is also known as “Internet banking” or “Web banking.”Online
banking through traditional banks enables customers to perform all routine transactions, such as
account transfers, balance inquiries, bill payments, and stop-payment requests. Some even offer
online loans and credit card applications. Account information can be accessed anytime, day or
night, and can be done from anywhere.
15. Mobile Banking:

Mobile banking (also known as M-Banking) is a term used for performing balance checks, account
transactions, payments, credit applications, and other banking transactions through a mobile device
such as a mobile phone or Personal Digital Assistant (PDA),
16. Accepting Deposit:

Accepting deposits from savers or account holders is the primary function of a bank. Banks receive
the deposit from those who can save money but cannot utilize it in profitable sectors. People prefer
to deposit their savings in a bank because by doing so, they earn interest.
17. Priority banking:

Priority banking can include several various services, but some popular ones include free checking,
online bill pay, financial consultation, and information.
18. Private banking:
Personalized financial and banking services are traditionally offered to a bank’s digital, high-net-
worth individuals (HNWIs). For wealth management purposes, HNWIs have accrued far more
wealth than the average person, and therefore have the means to access a larger variety of
conventional and alternative investments.
Private Banks aim to match such individuals with the most appropriate options.

Industry Profile:
As per the Reserve Bank of India (RBI), India’s banking sector is sufficiently capitalized and well-
regulated. The financial and economic conditions in the country are far superior to any other
country in the world. Credit, market and liquidity risk studies suggest that Indian banks are
generally resilient and have withstood the global downturn well.
Indian banking industry has recently witnessed the roll out of innovative banking models like
payments and small finance banks. RBI’s new measures may go a long way in helping the
restructuring of the domestic banking industry.
The digital payments system in India has evolved the most among 25 countries with India’s
Immediate Payment Service (IMPS) being the only system at level five in the Faster Payments
Innovation Index (FPII).
Market Size:
The Indian banking system consists of 12 public sector banks, 22 private sector banks, 46 foreign
banks, 56 regional rural banks, 1485 urban cooperative banks and 96,000 rural cooperative banks
in addition to cooperative credit institutions As of November 2020, the total number of ATMs in
India increased to 209,282.Asset of public sector banks stood at Rs. 107.83 lakh crore (US$ 1.52
trillion) in FY20.
During FY16-FY20, bank credit grew at a CAGR of 3.57%. As of FY20, total credit extended
surged to US$ 1,698.97 billion. During FY16-FY20, deposits grew at a CAGR of 13.93% and
reached US$ 1.93 trillion by FY20.
According to the RBI, bank credit and deposits stood at Rs. 108.34 trillion (US$ 1.48 trillion) and
Rs. 151.67 trillion (US$ 2.08 trillion), respectively, as of June 04, 2021. Credit to non-food
industries stood at Rs. 108.02 trillion (US$ 1.47 trillion), as of June 04, 2021. Non-food industries
grew at 5.7% in January 2021 as against an increase of 8.5% in January 2020
Investments/Developments:
Key investments and developments in India’s banking industry include:
 In December 2020, in response to the RBI’s cautionary message, the Digital Lenders’ Association
issued a revised code of conduct for digital lending.
 As of June 2, 2021, the number of bank accounts opened under the government’s flagship financial
inclusion drive ‘Pradhan Mantri Jan Dhan Yojana (PMJDY)’ reached 42.44 crore and deposits in
Jan Dhan bank accounts totalled>Rs. 1.45 lakh crore (US$ 19.81 billion).
 On November 6, 2020, WhatsApp started UPI payments service in India on receiving the National
Payments Corporation of India (NPCI) approval to ‘Go Live’ on UPI in a graded manner.
 In October 2020, HDFC Bank and Apollo Hospitals partnered to launch the
‘HealthyLifeProgramme’, a holistic healthcare solution that makes healthy living accessible and
affordable on Apollo’s digital platform.
 In 2019, banking and financial services witnessed 32 M&A (merger and acquisition) activities
worth US$ 1.72 billion.
 In March 2020, State Bank of India (SBI), India’s largest lender, raised US$ 100 million in green
bonds through private placement.

 In February 2020, the Cabinet Committee on Economic Affairs gave its approval for continuation
of the process of recapitalization of Regional Rural Banks (RRBs) by providing minimum
regulatory capital to RRBs for another year beyond 2019-20 - till 2020-21 to those RRBs which are
unable to maintain minimum Capital to Risk weighted Assets Ratio (CRAR) of 9% as per the
regulatory norms prescribed by RBI.
 The NPAs (Non-Performing Assets) of commercial banks recorded a recovery of Rs. 400,000 crore
(US$ 57.23 billion) in the last four years including record recovery of Rs. 156,746 crore (US$
22.42 billion) in FY19.
Government Initiatives:
As per Union Budget 2021-22, the government will disinvest IDBI Bank and privatise two public
sector banks. As per Union Budget 2019-20, the Government proposed fully automated GST
refund module and an electronic invoice system that will eliminate the need for a separate e-way
bill.
Government smoothly carried out consolidation, reducing the number of Public Sector Banks by
eight. As of September 2018, the Government of India made Pradhan Mantri Jan Dhan Yojana
(PMJDY) scheme an open-ended scheme and added more incentives.
The Government of India planned to inject Rs. 42,000 crore (US$ 5.99 billion) in public sector
banks by March.
Achievements:
Following are the achievements of the Government:
 In May 2021, Unified Payments Interface (UPI) recorded 2.54 billion transactions worth Rs. 4.91
lakh crore (US$ 67.32 billion).
 According to the RBI, India’s foreign exchange reserves reached US$ 582.41 billion, as of April
16, 2021
 To improve infrastructure in villages, 204,000 point of sale (PoS) terminals have been sanctioned
from the Financial Inclusion Fund by National Bank for Agriculture & Rural Development
(NABARD).
 The number of transactions through immediate payment service (IMPS) reached 279.81 million
(by volume) and amounted to Rs. 2.66 trillion (US$ 36.50 billion) in May 2021.
Road Ahead:
Enhanced spending on infrastructure, speedy implementation of projects and continuation of
reforms are expected to provide further impetus to growth in the banking sector. All these factors
suggest that India’s banking sector is poised for a robust growth as rapidly growing businesses will
turn to banks for their credit needs.
Also, the advancement in technology has brought mobile and internet banking services to the fore.
The banking sector is laying greater emphasis on providing improved services to their clients and
upgrading their technology infrastructure to enhance customer’s overall experience as well as give
banks a competitive edge. India’s digital lending stood at US$ 75 billion in FY18 and is estimated
to reach US$ 1 trillion by FY23 driven by the five-fold increase in the digital disbursements.

Company Profile:
1) HDFC Bank:
HDFC Bank Limited is an Indian banking and financial

services company, headquartered in Mumbai, Maharashtra.
HDFC Bank is India's largest private sector bank by assets
and by market capitalization as of April 2021. It is the third
largest company by market capitalization on the Indian
stock exchanges. It is also the fifteenth largest employer in
India with nearly 120,000 employees. HDFC Bank was
incorporated in 1994 as a subsidiary of the Housing
Development Finance Corporation, with its registered
office in Mumbai, Maharashtra, India.
Its first corporate office and a full-service branch at Sandoz House, Worli were inaugurated by
the Union Finance Minister, Manmohan Singh. As of 30 June 2019, the Bank's distribution
network was at 5,500 branches across 2,764 cities. The bank also installed 430,000 POS terminals
and issued 23,570,000 debit cards and 12 million credit cards in FY 2017. It has a base of 1,16,971
permanent employees as of 21 March 2020.
HDFC Bank provides a number of products and services including wholesale banking, retail
banking, treasury, auto loans, two-wheeler loans, and personal loans, loans against property,
consumer durable loan, lifestyle loan and credit cards. Along with this various digital products are
Payzapp and Smart BUY.
HDFC Bank merged with Times Bank in February 2000. This was the first merger of two private
banks in the New Generation private sector banks category. ] Times Bank was established by
Bennett, Coleman and Co. Ltd., commonly known as The Times Group, India's largest media
conglomerate. In 2008, Centurion Bank of Punjab (CBoP) was acquired by HDFC Bank. HDFC
Bank's board approved the acquisition of CBoP for ₹95.1 billion in one of the largest mergers in
the financial sector in India.
In 2021, the bank acquired a 9.99% stake in FERBINE, an entity promoted by Tata Group, to
operate a Pan-India umbrella entity for retail payment systems, similar to National Payments
Corporation of India.
In March 2020, HDFC (parent company of HDFC BANK) made an investment of ₹1,000 crores
in Yes Bank. As per the scheme of reconstruction of Yes Bank, 75% of the total investment by the
corporation would be locked in for three years. On 14 March, Yes Bank allotted 100 crore shares
of the face value of ₹2 each for consideration of ₹10 per share (including ₹8 premium) to the
Corporation aggregating to 7.97 percent of the post issue equity share capital of Yes bank.

HDFC Bank Limited
Type Public
Traded as NSE: HDFCBANK

BSE: 500180
BSE SENSEX Constituent
NSE NIFTY 50 Constituent
ISIN INE040A01034
Industry Financial services
Founded August 1994 (27 years ago)
Headquarters Mumbai, Maharashtra,
India
Area served India
Key people Atanu Chakra borty(Chairman)
Sashidhar Jagdishan(CEO)
Products Credit cards

Consumer banking
Commercial banking
Finance and
insurance Investment
banking Mortgage
loans Private banking
Private equity
Wealth management
Revenue ₹155,885 crore (US$22 billion) (2021)
Operating ₹61,636 crore (US$8.6 billion) (2021)
income
Net income ₹31,857 crore (US$4.5 billion) (2021)

Total assets ₹1,746,870 crore (US$240 billion) (2021)
Total equity ₹203,169 crore (US$28 billion) (2020)
Owner Housing Development Finance Corporation
(25.7%)
Number of 120,093 (2021)
employees
Subsidiaries HDFC securities
HDB Financial Service
Website www.hdfcbank.com

2) ICICI Bank:
ICICI Bank Limited is an Indian financial services company with its registered office in Vadodara,
Gujarat, and corporate office in Mumbai, Maharashtra. It offers a wide range of banking products
and financial services for corporate and retail customers through a variety of delivery channels and
specialized subsidiaries in the areas of investment banking, life, non-life insurance, venture capital
and asset management. The bank has a network of 5,275 branches and 15,589 ATMs across India
and has a presence in 17 countries.
The bank has subsidiaries in the United Kingdom and Canada; Branches in United States,
Singapore, Bahrain, Hong Kong, Qatar, Oman, Dubai International center, china and south Africa
as well as representative offices in United Arab Emirates, Bangladesh, Malaysia and Indonesia.
The company's UK subsidiary has also established branches in Belgium and Germany.
ICICI Bank was established by the Industrial Credit and Investment Corporation of India (ICICI),
an Indian financial institution, as a wholly owned subsidiary in 1994 in Vadodara however the
parent company was formed in 1955 as a joint-venture of the World Bank, India's public-sector
banks and public-sector insurance companies to provide project financing to Indian industry. The
bank was founded as the Industrial Credit and Investment Corporation of India Bank, before it
changed its name to ICICI Bank. The parent company was later merged with the bank. ICICI Bank
launched Internet Banking operations in 1998.
ICICI's shareholding in ICICI Bank was reduced to 46 percent, through a public offering of shares
in India in 1998, followed by an equity offering in the form of American depositary receipts on
the NYSE in 2000. ICICI Bank acquired the Bank of Madura Limited in an all-stock deal in 2001
and sold additional stakes to institutional investors during 2001–02.
In the 1990s, ICICI transformed its business from a development financial institution offering only
project finance to a diversified financial services group, offering a wide variety of products and
services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999,
ICICI become the first Indian company and the first bank or a financial institution from non-Japan
Asia to be listed on the NYSE.
ICICI, ICICI Bank, and ICICI subsidiaries ICICI Personal Financial Services Limited and ICICI
Capital Services Limited merged in a reverse merger in 2002.

In 2008, following the 2008 financial crisis, customers rushed to ICICI ATMs and branches in
some locations due to rumors of an adverse financial position of ICICI Bank. The Reserve Bank of
India issued a clarification on the financial strength of ICICI Bank to dispel the rumors. In March
2020, the board of ICICI Bank Ltd. approved an investment of Rs 1,000 crore in Yes Bank Ltd.
This investment resulted in ICICI Bank Limited holding in excess of a five percent shareholding in
Yes Bank.
ICICI Bank offers products and services such as online money transfers, tracking services, current
accounts, savings accounts, time deposits, recurring deposits, mortgages, loans, automated lockers,
credit cards, prepaid cards, debit cards and digital wallets called ICICI pocket. ICICI bank
launched 'ICICIStack' which provides online services such as payment options, digital accounts,
instant car loans, insurance, investments, loans etc. ICICI Bank is the only Bank to cross Rs. 1
trillion Collections. We are the market leader in IPO Collection with a 34% share and 65% market
share in Retail and HNI Segment. Market Capitalization of ICICI Bank is Rs 5,02,739.35 crore.
Subsidiaries:
Domestic:
 ICICI Prudential Life Insurance Company Limited
 ICICI Lombard General Insurance Company Limited
 ICICI Prudential Asset Management Company Limited
 ICICI Prudential Trust Limited
 ICICI Prudential Pension Funds Management Company Limited
 ICICI Direct
 ICICI Securities Limited
 ICICI Securities Primary Dealership Limited
 ICICI Venture Funds Management Company Limited
 ICICI Home Finance Company Limited
 ICICI Investment Management Company Limited
 ICICI Trusteeship Services Limited
International:
 ICICI Bank Canada
 ICICI Bank UK PLC
 ICICI Bank USA
 ICICI Bank Germany
 ICICI Bank Eurasia Limited Liability Company
 ICICI Securities Holdings Inc.
 ICICI Securities Inc.
 ICICI International Limited.

ICICI Bank Limited
ICICI Bank Corporate Office in Bandra Kurla Complex, Mumbai
Formerly Industrial Credit and Investment Corporation of India
Type Public
Traded as BSE: 532174

NSE: ICICIBANK
NYSE: IBN
ISIN INE090A01021
Founded 5 January 1994; 27 years ago
Headquarters Vadodara, Gujarat ( Registered Office), Bandra Kurla
Complex, Mumbai ( Corporate Office)
Number of 5,275 (2020)
Location
Area served Worldwide
Key people Girish Chandra Chaturvedi (Chairperson)
Sandeep Bakhshi (MD & CEO)
Products Banking, commodities, credit cards, equities trading,
insurance, Investment management, mortgage loans,
mutual funds, private equity, risk management, wealth
management, asset management
income
Total assets ₹1,573,812 crore (US$220 billion) (2021)
Number of 97,354 (2020)
employees
Subsidiaries ICICI Prudential
ICICI Lombard
ICICI Securities
ICICI Direct
Website www.icicibank.com

3) Kotak Mahindra Bank:
Kotak Mahindra Bank Limited is an Indian banking & financial services company headquartered in
the city of Mumbai, India. It offers banking products and financial services for corporate and retail
customers in the areas of personal finance, investment banking, life insurance, and wealth
management. As of February 2021, it is the third largest Indian private sector bank by market
capitalization, with 1600 branches & 2519 ATMs.
In 1985, Uday Kotak founded what later became an Indian financial services conglomerate. In
February 2003, Kotak Mahindra Finance Ltd. (KMFL), the group's flagship company, received a
banking license from the Reserve Bank of India. With this, KMFL became the first non-banking
finance company in India to be converted into a bank. In a study by Brand Finance Banking 500
published in February 2014 by Banker magazine, KMBL was ranked 245th among the world's top
500 banks with a brand valuation of around US$481 million and brand rating of AA+.
Presently it is engaged in commercial banking, stock broking, mutual funds, life insurance and
investment banking. It caters to the financial needs of individuals and corporate. The bank has an
international presence through its subsidiaries with offices in London, New York, Dubai,
Mauritius, San Francisco and Singapore that specialize in providing services to overseas investors
seeking to invest into India.
Subsidiaries and associates:

Major subsidiaries of the Bank include:
 Kotak Mahindra Prime

 Kotak Mahindra Investments
 Kotak Securities
 Kotak Mahindra Capital
 Kotak Mahindra Life Insurance
 Kotak Mahindra General Insurance
 Kotak AMC
 Kotak Investment Advisors
 Kotak capital Company
Kotak Mahindra Bank
Type Public
BSE: 500247
Traded as
NSE: KOTAKBANK
ISIN INE237A01028
Founded February 2003; 18 years ago
Founders Uday Kotak
Headquarters Mumbai, India
Key people Prakash Apte
(Chairman)
Uday Kotak
(MD & CEO)
Products Banking, commodities, credit cards, equity trading,
insurance, investment management, mortgage loans,
mutual funds, private equity, risk management, wealth
management, asset management
Revenue ₹56,703 crore (US$7.9 billion) (2021)

income
Total assets ₹478,872 crore (US$67 billion) (2021)
Number of 71,000 (2021)
employees
Subsidiaries Kotak Mahindra General Insurance
Kotak Life Insurance
Kotak Mutual Fund
Kotak Securities
Kotak Mahindra Prime Ltd.
Airtel Payments Bank
Website www.kotak.com

4) Axis Bank:
Axis Bank Limited is an Indian banking and financial services company headquartered in
Mumbai, Maharashtra. It sells financial services to large and mid-size companies, SMEs and retail
businesses.
As of 30 June 2016, 30.81% shares are owned by the promoters and the promoter group (United
India Insurance Company Limited, Oriental Insurance Company Limited, National Insurance
Company Limited, New India Assurance Company Ltd, GIC, LIC and UTI). The remaining
69.19% shares are owned by mutual funds, FIIs, banks, insurance companies, corporate bodies and
individual investors.
The bank was founded on 3 December 1993 as UTI Bank, opening its registered office
in Ahmadabad and a corporate office in Mumbai. The bank was promoted jointly by the
Administrator of the Unit Trust of India (UTI), Life Insurance Corporation of India (LIC), General
Insurance Corporation, National Insurance Company, The New India Assurance Company, The
Oriental Insurance Corporation and United India Insurance Company. The first branch was
inaugurated on 2 April 1994 in Ahmadabad by Manmohan Singh, then finance minister of India.
In 2001 UTI Bank agreed to merge with Global Trust Bank, but the Reserve Bank of India (RBI)
withheld approval and the merger did not take place. In 2004, the RBI put Global Trust under
moratorium and supervised its merger with Oriental Bank of Commerce. The following year, UTI
bank was listed on the London Stock Exchange. In the year 2006, UTI Bank opened its first
overseas branch in Singapore. The same year it opened in Hong Kong. On 30 July 2007, UTI Bank
changed its name to Axis Bank. In 2009, Shikha Sharma was appointed as the MD and CEO of
Axis Bank. In 2013, Axis Bank's subsidiary an office in Shanghai, China. In 2007, it opened a
branch in the Dubai International Financial Centre and branches, Axis Bank UK commenced
banking operations. On 1 January 2019, Amitabh Chaudhri took over as MD and CEO. In year
2021,the Bank had reduced its stake in Yes Bank from 2.39 per cent to 1.96 per cent.
Services:
Retail banking: The bank offers lending services to individuals and small businesses, along with
liability products, card services, Internet banking, automated teller machines (ATM) services,
depository, financial advisory services, and Non-resident Indian (NRI) services. Axis bank is a
participant in RBI's NEFT enabled participating banks list. Corporate banking
Transaction banking: Axis Bank provides products and services related to transaction banking to
customers in areas of current accounts, cash management services, capital market services, trade,
foreign exchange and derivatives, cross-border trade and correspondent banking services and tax
collections on behalf of the Government and various State Governments in India.
Investment banking and trustee services: The bank provides investment banking and trusteeship
services through its owned subsidiaries. Axis Capital Limited provides investment banking
services relating to equity capital markets, institutional stock brokering besides M&A advisory.
Axis Trustee Services Limited is engaged in trusteeship activities, acting as a debenture trustee and
as a trustee to various securitization trusts.
International banking:
The bank offers corporate banking, trade finance, treasury and risk management through the
branches at Singapore, Hong Kong, DIFC, Shanghai and Colombo, and also retail liability products
from its branches at Hong Kong and Colombo. The representative office at Dhaka was inaugurated
during the current financial year.
Subsidiaries:
Axis Capital Ltd.
Axis Capital Ltd. was incorporated in India as a wholly owned subsidiary of the bank on 6
December 2005 and received its certificate of commencement of business on 2 May 2006. Certain
businesses of M/s. Enam Securities Pvt. Ltd. were merged with Axis Capital Ltd. as part of a
scheme and the following companies became direct subsidiaries of Axis Capital:
1. Axis Securities Ltd. (formerly Enam Securities Direct Pvt. Ltd.)

2. Axis Finance Ltd. (formerly Enam Finance Pvt. Ltd.)
3. Axis Securities Europe Ltd. (formerly Enam Securities Europe Ltd.)
4. Enam International Ltd., UAE (voluntarily dissolved with effect from 24 August 2014)
Axis Securities Ltd., Axis Finance Ltd. and Axis Securities Europe Ltd. later became direct
subsidiaries of the bank in line with the RBI directives.
Axis Securities Ltd.
Axis Securities Ltd. was incorporated in India on 21 July 2006. The sales and securities business,
including the retail broking business of Axis Capital Ltd, was merged with ASL on 25 May 2013.
ASL is a wholly owned subsidiary of the bank and offers retail asset products, credit cards and
retail brokerage services.
Axis Private Equity Ltd.
Axis Private Equity Ltd. was incorporated in India as a wholly owned subsidiary of the bank on 3
October 2006 and received its certificate of commencement on 4 December 2006. APE manages
investments, venture capital funds and offshore funds.
Axis Mutual Fund:
Axis Mutual Fund is a subsidiary of Axis Bank established in 2009 with in headquarters
in Mumbai.

Axis Bank Limited

Type Public
Traded as BSE: 532215
LSE: AXBC
NSE: AXISBANK
ISIN INE238A01034
Founded 3 December 1993; 27 years ago
Headquarters Mumbai, Maharashtra, India
Number of 4594 (2021)
Location
Key people Amitabh Chaudhary ( MD &CEO)
Shri Rakesh Makhija ( Chairperson)
Products Banking, commodities, credit cards, equity trading, insurance,
investment management, mortgage loans, mutual funds, private
equity, risk management, wealth management, asset
management
Operating ₹26,746 crore (US$3.7 billion (2021)
income
Total assets ₹1,010,325 crore (US$140 billion (2021)
Total equity ₹102,980 crore (US$14 billion)] (2021)
Owner Life Insurance Corporation (9.19%)
Specified Undertaking of Unit Trust of India (SUUTI) (4.68%)
General Insurance Corporation of India (1.15%)
The New India Assurance Company Limited (0.74%)
Number of 78,300 (2021)
employees
Subsidiaries Axis Asset Management Company Ltd.
Axis Mutual Fund Trustee Ltd.
Axis Capital Ltd.
Axis Finance Ltd.
Axis Securities Ltd.
A.TREDS Ltd.
Axis Bank UK Ltd.
Axis Trustee Services Ltd.

Free charge
Accelyst Solutions Private Ltd.
Axis Private Equity Ltd
Capital ratio 9.35% (December 2019)
Website www.axisbank.com

5) Induslnd Bank:
Induslnd Bank Limited is a new-generation Indian bank headquartered in Pune. The bank offers
commercial, transactional and electronic banking products and services. Induslnd Bank was
inaugurated in April 1994 by then Union Finance Minister Manmohan Singh. Induslnd Bank is the
first among the new-generation private banks in India.
The bank started its operations with ₹100 crores (10 billion) in capital, of which ₹60 crores were
raised by Indian residents and ₹40 crores were raised by Non-Resident Indians (NRI). The bank
specializes in retail banking services and is also working on expanding its network of branches all
across the country. According to the bank, its name is derived from the Indus Valley Civilization.
As on 31 December 2018, Induslnd Bank had 1,558 branches, and 2453 ATMs spread across
different geographical locations of the country. It also has representative offices in London, Dubai
and Abu Dhabi.
Mumbai has the largest number of bank branches followed by New Delhi and Chennai. The bank
has proposed to double its branch count to 1200 by March 2019. The bank began its operations on
17 April 1994 under the chairmanship of S. P. Hinduja with the primary objective of serving the
NRI community.
Induslnd Bank has appointed Sumant Kathpalia as the Managing Director and CEO with effect
from Tuesday for a period of three years. The appointment was announced as Romesh Sobti retired
as the MD & CEO of the Bank on Monday after a 12-year stint.
In a regulatory filing on Monday evening, the bank said that Kathpalia would take charge as
'Additional Director' on Tuesday and would be designated as MD and CEO.
R. Seshasayee, a chartered accountant, is the current chairman of the board. The other members on
the board are Rajiv Agarwal, Kanchan Chitale, Shanker Annaswamy, T. T. Ram Mohan, Akila
Krishnakumar, Arun Tiwari, and Siraj Chaudhry.
Induslnd Bank provide service like Branch banking, Consumer finance, corporate banking and
finance, commercial and transaction banking, cash management services, Trade Services utility,
Depository operations, treasury operations and wealth management.

Induslnd Bank Limited
Type Public
Traded as NSE: INDUSINDBK

BSE: 532187
Industry Banking
Financial Services
Founded April 1994 (27 years ago)
Founder S. P. Hinduja
Headquarters Pune, Maharashtra,

India
Key people Sumant Kathpalia

(MD & CEO)
Products Credit cards, Consumer

banking, Corporate banking, Finance
and Insurance, Mortgage loans, Private
banking, Wealth
management, Investment banking
Revenue ₹36,002 crore (US$5.0 billion) (2020)

income
Net income ₹4,417 crore (US$620 million) (2020)
Total assets ₹307,057 crore (US$43 billion)

(2020)
Owner Hinduja Group
Number of 30,674 (2020)[2]

employees
Subsidiaries BFIL
Capital ratio 15.31%
Website www.indusind.com

CHAPTER – 2
REVIEW OF LITERATURE
LITERATURE REVIEW:
 Medhat Tarawneh (2006) financial performance is a dependent variable and measured by
Return on Assets (ROA) and the intent income size. The independent variables are the size
of banks as measured by total assets of banks.
 Vasant desai (2007) The Reserve Bank of India plays a very vital role. It is known as the
banker’s bank. The Reserve Bank of India is the head of all banks. All the money
formulations of commercial banks are done under the Reserve Bank of India. The RBI
performs all the typical functions of a good central bank as it is involved in planning the
economy of the country. The main function is that the RBI should control their credit. It is
mandatory for the Bank to maintain the external value of the rupee. Major function is that it
should also control the currency.
 K. C. Sharma (2007) Banking has entered the electronic era. This has been due to reforms
introduced under the WTO compliances. Private sector banks have been permitted to open
their shops in the country. These banks are either foreign or domestic banks with foreign
partnerships. Some of them have been set up by Development Financial Institutions in
order to embrace concept of universal banking, as practiced in advanced countries. The
private sector on the other hand have began their high tech operations from the initial stage
and made the elite of the country to taste the best banking practices that happens in the
western countries. They have foreseen the digital world and have seen the emerging
electronic market, which has encouraged them to have a better customer service strategy
that would be able to deliver the things as per customer’s requirement.
 Fernando Ferreng (2012) it is generally agreed that recent economic crisis intensified
worldwide competition among financial institution. This competition has direct impact on
how bank deal with their customer and achieve its objectives performance evaluation of
banks is the key function for improving banks performance. Banks profitability and success
to a large extent depends on bank branch financial performance.
 Dr. Anurag B Singh and Ms.Priyanka Tandon (2012): The researcher has mentioned the
importance of the banking sector in the economic development of the country. In India
banking system is featured by large network of Bank branches, serving many kinds of
financial services of the people. The study is based on secondary data collected from
magazines, journals & other published documents. Which was a limitation since it’s
difficult to prove the geniuses of the data.
 E. Gordon and K. Natrajan (2014): The economic development of any country depends
on the existence of a well-organized financial system. It includes financial markets and
financial institutions which support the system. Financial system provides the
intermediation between savings and investment and promoters faster economic
development.
 C. Vanlalzawna (2018) used ratio analysis and the annova to evaluate the financial
performance of five private banks in Indian bank from 2012 to 2021.

CHAPTER – 3
RESEARCH METHODOLOGY
RESEARCH PROBLEM STATEMENT:

“A Study on Financial performance of top five Private Bank in India”
OBJECTIVE OF THE STUDY:
 To study the financial performance of HDFC bank, ICICI bank, Kotak Mahindra bank, Axis bank
and Induslnd bank.
 To analysis the liquidity and solvency position of the bank.
 To analyze which market position is strong with the use of ratio analysis.
 To Study and compare the profitability and financial position of HDFC bank, ICICI bank and
Kotak Mahindra bank, Axis bank and Induslnd bank.
 To find the variance of mean among the selected private sector bank.
SCOPE OF THE STUDY:
The study has conducted for five selected Indian private bank (HDFC bank, ICICI bank, Kotak
Mahindra bank, Axis bank and Induslnd bank) on the basis of market capitalization. The study has
understand for a period of 10 year initiating from 2012-2021. The aim of the study is to analysis of
profitability of selected Indian private bank. The techniques of Ratio Analysis have used to
compare the profitability of the selected Indian private bank. This study is also help to understand
the financial performance of India’s top five banks.
RESEARCH DESIGN:
There are mainly three types of research design.
 Exploratory
 Descriptive
 Causal
The research design of the study is descriptive.
TYPES OF DATA:
There are two types of data
1) Primary data
2) Secondary data
The information is collected from secondary data. Secondary data is research data that
has previously been gathered and can be accessed by researchers. I have collected data from the
different websites for carrying out my project. This study is highly depending on the secondary
data for the various facts and figures. In this project, the secondary data is collected from various
articles, journals and websites which were available online.

SOURCES OF DATA:
The information is collected through internet and website. The sources of data mainly included,
1) Money control
2) Investopedia
3) Yahoo Finance
4) Wikipedia
TIME SPAN OF DATA:
In this project report I have taken the secondary data of last 10 year 2012-2021.
STATISTICAL TOOLS:
The financial tools used for analysis are annova, charts and various ratios. I.e. Current Ratio, Cash
Deposit Ratio, Credit Deposit Ratio, Net profit ratio, Net worth ratio, Return on asset, Return on
capital employed, Total asset turnover ratio, Proprietary ratio.
VARIABLES:
 Return on Asset
 Market share
 Deposit
 Revenue
 Operational efficiency
 Credit risk
 Interest rate
 Shareholders’ equity
LIMITATION OF STUDY:
 Financial performance of banks is analyzed on the basis of selected time period.

 Generally, a bank's financial performance is measured by a various tools but here only few
tools have been used.
 The study completely based on secondary data and the accuracy of the analysis depends on
the data obtained.
 Time allocated for the project was not sufficient to go for detailed analysis of the
research problem.

CHAPTER – 4
DATA ANALYSIS &
INTERPRETATIONS
DATA ANALYSIS & INTERPRETATION:

Ratio Analysis:
1) Current Ratio:
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations
or those due within one year. It tells investors and analysts how a company can maximize the
current assets on its balance sheet to satisfy its current debt and other payables. A good current
ratio is between 1.2 to 2 which means that the business has 2 times more current assets than
liabilities to covers its debts. A current ratio below 1 means that the company doesn't have enough
liquid assets to cover its short-term liabilities.
Current Ratio = Current Assets

Current Liabilities
Current Ratio
Banks (%)
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Average
HDFC 1.5 1.2 1.4 2.5 0.8 1.0 1.1 0.9 0.8 0.6 1.2
ICICI 1.4 1.1 0.4 0.4 0.4 1.4 1.4 1.1 0.4 0.4 0.8
Axis 1.4 2.2 2.0 1.6 1.8 1.4 2.2 2.0 1.6 1.8 1.8
Kotak 3.5 1.7 1.6 1.9 0.9 1.9 3.5 1.7 1.6 1.9 2.0
Induslnd 4.7 1.7 1.7 1.7 2.1 1.4 2.9 2.5 3.3 3.1 2.5
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
HDFC ICICI Axis Kotak IndusInd


Testing of Hypothesis:
H0 = There is no significant difference in the Current Ratio of Financial performance various

private bank.
H1 = There is significant difference in the Current Ratio of financial performance of private bank.
ANOVA
Groups Count Sum Average Variance
HDFC 10 11.88321109 1.188321109 0.306095642
ICICI 10 8.450913535 0.845091353 0.189449779
Axis 10 17.92009594 1.792009594 0.102561603
Kotak 10 20.31284027 2.031284027 0.642174502
Induslnd 10 24.86008646 2.486008646 1.019853288
Source of
SS Df MS F
Variation
17.2376081 4.309402 9.533506
Between Groups 4
3 032 6
20.3412133 0.452026
Within Groups 45
2 963
37.5788214
Total 49
5
Level of Significance = 5% FCal = 9.533 FTab = 2.87 FCal > FTab
In the above table, the value with 5 % level of significance is 0.00 < 0.05. So, we reject the null
hypothesis. Therefore, it can be said that there is a difference in the Current ratio of selected Indian
private banks.
Interpretation:
Above table shows that the Average Current Ratio of Induslnd bank is the highest among the other
selected Indian private banks followed by HDFC, ICICI, Axis and Kotak. It indicates that the
current assets of Induslnd are higher as compared to the other selected Indian private banks. If the
Average current ratio of each bank is compared with banking industry average that is 1.66. It is
found that Axis, Kotak and Induslnd bank are doing better performance where as; ICICI and HDFC
are poor as compared to a Banking Industry Average.

2) Cash Deposit Ratios:
Cash Deposit ratio (CDR) is the ratio of how much a bank lends out of the deposits it has
mobilized. It indicates how much of a bank’s core funds are being used for lending, the main
banking activity. It can also be defined as Total of Cash in hand and Balances with RBI divided by
Total deposits. The amount of money a bank should have available as a percentage of the total
amount of money its customers have paid into the bank. This amount is calculated so that
customers can be sure that they will be able to take their money out of the bank if they want to.
Cash deposit ratio: Cash in hand + Balance
Total deposit
Cash Deposit Ratios

Banks (%)
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Average
HDFC 9.09 7.67 8.87 15.61 7.67 7.16 8.11 10.87 9.30 8.59 9.29
ICICI 15.97 12.83 15.19 15.70 14.42 15.37 15.97 12.83 15.19 15.70 14.92
Axis 8.96 15.23 12.35 9.64 12.28 8.96 15.23 12.35 9.64 12.28 11.69
Kotak 24.61 13.91 12.76 16.45 8.53 17.11 24.61 13.91 12.76 16.45 16.11
Induslnd 21.99 7.92 7.59 8.72 14.72 10.87 14.54 11.19 12.66 13.08 12.33
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012

H0 = There is no significant difference in the cash deposit Ratio of various Indian private banks.
H1 = There is significant difference in the cash deposit ratio of various Indian private banks.

HDFC 10 0.929403449 0.092940345 0.000603751
ICICI 10 1.491676767 0.149167677 0.000142034
Axis 10 1.169177299 0.11691773 0.000554784
Kotak 10 1.610933397 0.16109334 0.002614032
Induslnd 10 1.23259652 0.123259652 0.001810036
Source of Variation SS Df MS F
Between Groups 0.029154235 4 0.007288559 6.365956948
Within Groups 0.051521735 45 0.001144927
Total 0.08067597 49
hypothesis. Therefore, it can be said that there is a difference in the cash deposit ratio of selected
Indian private banks.
Interpretation:
Above table shows that the Average Cash deposit Ratio of Kotak bank is the highest among the
other selected Indian private banks followed by HDFC, ICICI, Axis and Induslnd. It indicates that
the cash to deposit of Kotak is higher as compared to the other selected Indian private banks. If the
Average cash deposit ratio of each bank is compared with banking industry average that is 12.87. It
is found that Kotak and ICICI are doing better performance whereas; Axis, Induslnd, HDFC are
poor as compared to a Banking Industry Average.

3) Credit Deposit Ratios:
Credit means loans given out to borrowers by the banks. Credits are assets of the Bank. Deposits
are the amount received from customers as deposits in the banks. Deposits are a liability to the
bank. So; credit-deposit ratio broadly means the ratio of assets and liabilities of the banks. The
credit-to-deposit (CTD) or loan-to-deposit ratio (LTD) is used for measuring a bank’s liquidity by
dividing the bank’s total loans disbursed by the total deposits received. It indicates how much of a
bank’s core funds are being used for lending which the main banking activity is.
Credit deposit ratio= total advance

Total deposit
Credit Deposit Ratios

Banks (%)
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Average
HDFC 88.87 91.05 94.22 88.79 91.04 89.27 85.15 85.93 83.50 80.65 87.85
ICICI 88.19 94.96 96.77 100.53 109.46 82.48 88.19 94.96 96.77 100.53 95.28
Axis 89.75 90.78 91.99 98.72 91.85 89.75 90.78 91.99 98.72 91.85 92.62
Kotak 95.96 108.29 107.72 107.45 106.51 90.43 95.96 108.29 107.72 107.45 103.58
Induslnd 82.98 102.35 95.65 95.59 89.34 95.07 92.79 91.07 81.90 82.77 90.95
150.00%
100.00%
50.00%
0.00%
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012

H0 = There is no significant difference in the credit deposit Ratio of various Indian private banks.
H1 = There is significant difference in the credit deposit ratio of various Indian private banks.
ANOVA
HDFC 10 8.784759884 0.878475988 0.001630124
ICICI 10 9.5284174 0.95284174 0.00583214
Axis 10 9.261951997 0.9261952 0.001108376
Kotak 10 10.35770553 1.035770553 0.004512577
Induslnd 10 9.095174278 0.909517428 0.004543166
Between Groups 0.142403038 4 0.03560076 10.09871417
Within Groups 0.158637442 45 0.003525276
Total 0.30104048 49
hypothesis. Therefore, it can be said that there is a difference in the credit deposit ratio of selected
Interpretation:
Above table shows that the Average Credit deposit Ratio of Kotak bank is the highest among the
other selected Indian private banks followed by HDFC, ICICI, Axis and Induslnd. It indicates that
the credit to deposit of Kotak is higher as compared to the other selected Indian private banks. If
the Average credit deposit ratio of each bank is compared with banking industry average that is
94.04. It is found that Kotak and ICICI are doing better performance whereas; Axis, Induslnd,
HDFC are poor as compared to a Banking Industry Average.

4) Net Profit Ratios:
It is the ratio of net profits to revenues for a company or business segment. Expressed as a
percentage, the net profit margin shows how much profit is generated from every $1 in sales, after
accounting for all business expenses involved in earning those revenues. The net profit percentage
is the ratio of after-tax profits to net sales. It reveals the remaining profit after all costs of
production, administration, and financing have been deducted from sales, and income taxes
recognized. As such, it is one of the best measures of the overall results of a firm, especially when
combined with an evaluationof how well it is using its working capital. It is also used to compare
the results of a business with its competitors.
Net Profit after interest & 𝑡𝑎𝑥

Net profit ratio= Net sales ∗ 100
Net Profit Ratios

Banks(%)
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Average
HDFC 20.44 18.56 18.09 18.31 17.75 17.23 17.77 17.24 16.05 15.43 17.69
ICICI 7.49% 4.33 7.65 10.00 10.78 10.78 14.35 14.68 13.65 11.91 10.56
Axis 8.97 2.35 7.19 0.79 6.89 8.97 2.35 7.19 0.79 6.89 5.24
Kotak 17.09 15.48 15.84 14.57 12.24 17.43 17.09 15.48 15.84 14.57 15.56
Induslnd -16.76 -0.66 0.69 15.67 13.53 10.85 14.73 13.86 12.63 12.55 7.71
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
-5.00%
-10.00%
-15.00%
-20.00%

H0 = There is no significant difference in the net profit Ratio of various Indian private banks.
H1 = There is significant difference in the net profit ratio of various Indian private banks.
ANOVA
HDFC 10 1.768564819 0.176856482 0.000189861
ICICI 10 1.056106983 0.105610698 0.001107896
Axis 10 0.523690748 0.052369075 0.001079125
Kotak 10 1.556236896 0.15562369 0.000237131
Induslnd 10 0.7709968 0.07709968 0.010663866
Between Groups 0.109126627 4 0.027281657 10.27334907
Within Groups 0.119500909 45 0.002655576
Total 0.228627536 49
hypothesis. Therefore, it can be said that there is a difference in the net profit ratio of selected
Interpretation:
Above table shows that the Average net profit Ratio of HDFC bank is the highest among the other
selected Indian private banks followed by Kotak, ICICI, Axis and Induslnd. It indicates that the net
profit ratio of HDFC bank is higher as compared to the other selected Indian private banks. If the
Average net profit ratio of each bank is compared with banking industry average that is 11.35. It is
found that Kotak and HDFC bank are doing better performance whereas; Axis, Induslnd, ICICI
Bank are poor as compared to an Banking Industry Average.

5) Net worth Ratio:
The net worth ratio states the return that shareholders could receive on their investment in a
company, if all of the profit earned were to be passed through directly to them. Thus, the ratio is
developed from the perspective of the shareholder, not the company, and is used to analyze
investor returns. The ratio is useful as a measure of how well a company is utilizing the shareholder
investment to create returns for them, and can be used for comparison purposes with competitors in
the same industry.
Net after tax profit
Net Worth Ratio =
Share holder Capital + Retained Earnings
Net Worth Ratio

Banks(%)
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Average
HDFC 15.18 15.48 14.61 16.94 16.65 17.25 16.94 19.84 18.83 17.46 16.92
ICICI 9.37 5.12 8.46 11.17 11.97 7.07 10.80 10.50 9.41 7.82 9.17
Axis 7.00 2.18 7.44 0.72 7.04 7.00 2.18 7.44 0.72 7.04 4.88
Kotak 12.82 12.22 12.18 12.86 10.28 11.67 12.82 12.22 12.18 12.86 12.21
Induslnd -13.84 -0.68 0.73 14.70 12.40 9.32 17.37 16.27 14.22 17.68 8.82
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
-5.00%
-10.00%
-15.00%
-20.00%

H0 = There is no significant difference in the net worth Ratio of various Indian private banks.
H1 = There is significant difference in the net worth ratio of various Indian private banks.
ANOVA
HDFC 10 1.691800809 0.169180081 0.000256888
ICICI 10 0.91684682 0.091684682 0.000439089
Axis 10 0.487589225 0.048758922 0.000895887
Kotak 10 1.22098688 0.122098688 6.21061E-05
Induslnd 10 0.881671039 0.088167104 0.010589524
Between Groups 0.080299273 4 0.020074818 8.198157667
Within Groups 0.110191443 45 0.002448699
Total 0.190490716 49
hypothesis. Therefore, it can be said that there is a difference in the net worth ratio of selected
Interpretation:
Above table shows that the Average net worth Ratio of HDFC bank is the highest among the other
selected Indian private banks followed by Kotak, ICICI, Axis, Induslnd. It indicates that the net
worth ratio of HDFC bank is higher as compared to the other selected Indian private banks. If the
Average net worth ratio of each bank is compared with banking industry average that is 10.4. It is
found that Kotak and HDFC bank are doing better performance whereas; Axis, Induslnd, ICICI
bank is poor as compared to a Banking Industry Average.

6) Return on Asset:
Return on Assets (ROA) is a type of return on investment (ROI) metric that measures the
profitability of a business in relation to its total assets. This ratio indicates how well a company is
performing by comparing the profit (net income) it’s generating to the capital it’s invested in
assets. The higher the return, the more productive and efficient management is in utilizing
economic resources. Below you will find a breakdown of the ROA formula and calculation.
Net Income
Return on Asset =
Average Total Assets
Return on Asset
Banks (%)
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
HDFC 8.66 9.30 9.60 9.19 9.65 10.18 9.92 10.10 10.54 10.02
ICICI 10.90 10.63 10.61 11.54 11.07 6.46 6.57 6.44 6.62 6.78
Axis 8.00 8.63 8.63 8.31 9.42 8.00 8.63 8.63 8.31 9.42
Kotak 11.36 11.64 11.49 12.30 11.64 11.86 11.36 11.64 11.49 12.30
Induslnd 9.80 11.65 10.06 9.96 10.42 10.65 11.13 11.71 11.42 11.10
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012

H0 = There is no significant difference in the return on asset Ratio of various Indian private banks.
H1 = There is significant difference in the return on asset ratio of various Indian private banks.
ANOVA
HDFC 10 0.971748631 0.097174863 3.07212E-05
10 0.876073931 0.087607393 0.000539577
ICICI
Axis 10 0.859743781 0.085974378 2.4771E-05
Kotak 10 1.17100852 0.117100852 1.20033E-05
Induslnd 10 1.078978418 0.107897842 5.05368E-05
Between Groups 0.007094878 4 0.001773719 13.48612255
Within Groups 0.005918482 45 0.000131522
Total 0.01301336 49
hypothesis. Therefore, it can be said that there is a difference in the return on asset ratio of selected
Interpretation:
Above table shows that the Average return on asset Ratio of Kotak bank is the highest among the
other selected Indian private banks followed by HDFC bank, ICICI, Axis, Induslnd. It indicates
that the return on asset of Kotak is higher as compared to the other selected Indian private banks. If
the Average return on assets of each bank is compared with banking industry average that is 9.92.
it is found that Induslnd, Kotak and HDFC bank are doing better performance whereas; Axis,
ICICI Bank are poor as compared to an Banking Industry Average.

7) Return on Capital Employed:
Return on capital employed (ROCE) is a financial ratio that can be used in assessing a company's
profitability and capital efficiency. In other words, this ratio can help to understand how well a
company is generating profits from its capital as it is put to use. The ROCE ratio is one of several
profitability ratios financial managers, stakeholders, and potential investors may use when
analyzing a company for investment.
Earnings before interest & 𝑡𝑎𝑥

Return on Capital Employed =
Shareholder′s Equity + Long Term Liability
Return on Capital Employed

Banks
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Average
HDFC 17.87 14.57 14.18 11.83 15.45 17.74 17.84 17.50 17.26 19.67 16.39
ICICI 5.22 2.69 3.94 5.99 4.93 7.52 6.02 5.52 4.39 4.19 5.04
Axis 4.74 1.21 3.12 0.30 3.51 4.74 1.21 3.12 0.30 3.51 2.58
Kotak 12.94 10.56 10.32 9.78 7.68 20.12 12.84 10.49 10.32 9.78 11.48
Induslnd -11.44 -0.38 0.40 8.88 10.90 7.10 8.42 9.20 10.56 8.74 5.24
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
-5.00%
-10.00%
-15.00%

H0 = There is no significant difference in the return on capital employed Ratio of various Indian
private banks.
H1 = There is significant difference in the return on capital employed ratio of various Indian
private banks.
ANOVA
HDFC 10 1.639127882 0.163912788 0.000542347
ICICI 10 0.504044261 0.050404426 0.000179418
Axis 10 0.257607442 0.025760744 0.000287683
Kotak 10 1.148322664 0.114832266 0.001147035
Induslnd 10 0.52380985 0.052380985 0.004980677
Between Groups 0.128246153 4 0.032061538 22.46099347
Within Groups 0.064234435 45 0.001427432
Total 0.192480588 49
hypothesis. Therefore, it can be said that there is a difference in the Return on capital employed
ratio of selected Indian private banks.
Interpretation:
Above table shows that the Average return on capital employed Ratio of HDFC bank is the highest
among the other selected Indian private banks followed by Kotak, ICICI, Axis and Induslnd. It
indicates that the return on capital employed of HDFC bank is higher as compared to the other
selected Indian private banks. If the Average return on capital employed of each bank is compared
with banking industry average that is 8.146. It is found that Kotak and HDFC bank are doing better
performance whereas; Axis, ICICI and Induslnd are poor as compared to an Banking Industry
Average.

8) Interest Spread:
The net interest rate spread is the difference between the average yields that a financial institution
receives from loans along with other interest-accruing activities and the average rate it pays on
deposits and borrowings. The net interest rate spread is a key determinant of a financial
institution’s profitability (or lack thereof).
Interest Spread = Interest Earned − Interest Expended
Interest Spread
Ban
ks Avera
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
ge
₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹
HDF
69,304 60,051 51,448 42,906 35,229 29,091 23,378 19,109 16,165 13,087 35,977
C .81 .87 .05 .36 .77 .99 .03 .57 .57 .28 .33
₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹
ICIC
40,170 32,804 27,900 26,104 25,297 25,297 22,645 19,768 16,599 12,981 24,956
-I .25 .11 .30 .15 .24 .24 .85 .64 .18 .61 .86
₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹
Axis 29,769 25,719 22,160 19,010 18,385 29,769 25,719 22,160 19,010 18,385 23,009
.98 .74 .18 .37 .74 .98 .74 .18 .37 .74 .20
₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹
Kota
17,573 14,748 12,664 10,866 9,278. 19,853 17,573 14,748 12,664 10,866 14,083
k .48 .15 .23 .70 67 .28 .48 .15 .23 .70 .71
₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹
Indu
13,527 12,058 8,846. 7,497. 6,062. 4,516. 3,420. 2,890. 2,232. 1,704. 6,275.
slnd
.90 .74 18 45 60 57 27 71 86 24 75
₹ 80,000.00
₹ 70,000.00
₹ 60,000.00
₹ 50,000.00
₹ 40,000.00
₹ 30,000.00
₹ 20,000.00
₹ 10,000.00
₹-
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012

H0 = There is no significant difference in the interest spread of various Indian private banks.
H1 = There is significant difference in the interest spread of various Indian private banks.
ANOVA
HDFC 10 359773.3 35977.33 376149966.4
ICICI 10 249568.57 24956.857 60972691.09
Axis 10 230092.02 23009.202 20254007.11
Kotak 10 140837.07 14083.707 11816050.15
Induslnd 10 62757.52 6275.752 17125820.72
Between Groups 5085554078 4 1271388519 13.0715614
Within Groups 4376866819 45 97263707.09
Total 9462420897 49
hypothesis. Therefore, it can be said that there is a difference in the interest spread of selected
Interpretation:
Above table shows that the Average interest spread of HDFC bank is the highest among the other
selected Indian private banks followed by Kotak, ICICI, Axis and Induslnd. It indicates that the
interest spread of HDFC bank is higher as compared to the other selected Indian private banks. If
the Average interest spread of each bank is compared with banking industry average that is
20860.67. It is found that Axis, ICICI bank and HDFC bank are doing better performance whereas;
Kotak and Induslnd are poor as compared to a Banking Industry Average.

9) Total Asset Turnover Ratios:
The total asset turnover ratio compares the sales of a company to its asset base. The ratio measures
the ability of an organization to efficiently produce sales, and is typically used by third parties to
evaluate the operations of a business. Ideally, a company with a high total asset turnover ratio can
operate with fewer assets than a less efficient competitor, and so requires less debt and equity to
operate. The result should be a comparatively greater return to its shareholders.
Asset Turnover = Total Sales

Beginning Asset + Ending Asset
2
Total Asset Turnover Ratios

Banks
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Average
HDFC 0.7 0.7 0.7 0.6 0.7 0.7 0.6 0.6 0.6 0.6 0.6
ICICI 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5
Axis 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6
Kotak 0.6 0.6 0.6 0.6 0.6 0.5 0.6 0.6 0.6 0.6 0.6
Induslnd 0.6 0.7 0.7 0.7 0.6 0.6 0.6 0.6 0.6 0.6 0.6
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0.0
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012


*H0 = There is no significant difference in the Total Asset turnover ratio of various Indian private
banks.
H1 = There is significant difference in the total asset turnover ratio of various Indian private banks.
ANOVA
HDFC 10 6.396441995 0.6396442 0.000830211
ICICI 10 5.178083769 0.517808377 0.000124625
Axis 10 6.283731978 0.628373198 3.98303E-05
Kotak 10 5.917941493 0.591794149 0.000899483
Induslnd 10 6.340727725 0.634072773 0.000784106
Between Groups 0.103331098 4 0.025832775 48.22684979
Within Groups 0.024104308 45 0.000535651
Total 0.127435406 49
hypothesis. Therefore, it can be said that there is a difference in the total asset turnover ratio of
selected Indian private banks.
Interpretation:
Above table shows that the Average total asset turnover of HDFC bank is the highest among the
other selected Indian private banks followed by Kotak, ICICI, Axis, Induslnd. It indicates that the
total asset turnover ratio of HDFC bank is higher as compared to the other selected Indian private
banks. If the Average asset turnover ratio of each bank is compared with banking industry average
that is 0.58. it is found that Axis, Induslnd, Kotak and HDFC bank are doing better performance
whereas; ICICI bank are poor as compared to an Banking Industry Average.

10) Proprietary ratio:
This ratio shows the proportion of total assets of a company which are financed by proprietors’
funds. The proprietary ratio is also known as equity ratio. It helps to determine the financial
strength of a company & is useful for creditors to assess the ratio of shareholders’ funds employed
out of total assets of the company.
Shareholder′s Equity
Proprietary Ratio =
Total Assets
The word “Proprietors” is a synonym for “owners of a business”, proprietors’ fund, in this case,
would only be the funds which belong to the owners/shareholders of the business. Proprietors’
funds are also known as Owners’ funds, Shareholders’ funds, Net Worth, etc.
Proprietary ratio
Banks
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Average
HDFC 11.66 11.16 11.89 9.93 10.29 10.17 10.40 8.77 8.99 8.86 10.21
ICICI 8.72 9.00 9.60 10.34 9.97 9.83 8.72 9.00 9.60 10.34 9.51
Axis 10.25 9.31 8.33 9.12 9.22 10.25 9.31 8.33 9.12 9.22 9.25
Kotak 15.04 14.62 14.95 13.94 13.85 17.72 15.15 14.75 14.95 13.94 14.89
Induslnd 11.87 10.99 9.50 10.60 11.36 12.39 9.42 9.97 10.13 7.86 10.41
20.00%
18.00%
16.00%
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012

H0 = There is no significant difference in the proprietary ratio of various Indian private banks.
H1 = There is significant difference in the proprietary ratio of various Indian private banks.
ANOVA
HDFC 10 1.021163408 0.102116341 0.000125828
ICICI 10 0.950953232 0.095095323 3.85283E-05
Axis 10 0.92465193 0.092465193 4.16614E-05
Kotak 10 1.488944858 0.148894486 0.000122942
Induslnd 10 1.040884389 0.104088439 0.000176655
Between Groups 0.021287227 4 0.005321807 52.62707509
Within Groups 0.004550534 45 0.000101123
Total 0.025837762 49
hypothesis. Therefore, it can be said that there is a difference in the Proprietary ratio of selected
Interpretation:
Above table shows that the Average proprietary ratio of Kotak bank is the highest among the other
selected Indian private banks followed by HDFC bank, ICICI, Axis, Induslnd. It indicates that the
proprietary ratio of Kotak is higher as compared to the other selected Indian private banks. If the
Average proprietary ratio of each bank is compared with banking industry average that is 10.856. it
is found that Kotak is doing better performance whereas; ICICI bank, Induslnd, axis, HDFC bank
are poor as compared to an Banking Industry Average.

11) Deposit:
There are many types of deposit.

1) Saving Deposits:
This type of deposits encourages saving habit among the public. The rate of interest is low.
At present it is about 4% p.a. Withdrawals of deposits are allowed subject to certain restrictions.
This account is suitable to salary and wage earners. This account can be opened in single name or
in joint names.
2) Fixed Deposits:
Lump sum amount is deposited at one time for a specific period. Higher rate of interest is
paid, which varies with the period of deposit. Withdrawals are not allowed before the expiry of the
period. Those who have surplus funds go for fixed deposit
3) Current Deposits:
This type of account is operated by businessmen. Withdrawals are freely allowed. No
interest is paid. In fact, there are service charges. The account holders can get the benefit of
overdraft facility.
4) Recurring Deposits:
This type of account is operated by salaried persons and petty traders. A certain sum of
money is periodically deposited into the bank. Withdrawals are permitted only after the expiry of
certain period. A higher rate of interest is paid.
Particulars 2021 2020 2019 2018 2017

HDFC ₹ 13,33,720.88 ₹ 11,46,207.13 ₹ 9,22,502.68 ₹ 7,88,375.14 ₹ 6,43,134.25
ICICI ₹ 8,00,784.46 ₹ 6,81,316.94 ₹ 5,85,796.11 ₹ 5,12,587.26 ₹ 4,51,077.39
Axis ₹ 7,07,623.42 ₹ 6,42,157.21 ₹ 5,50,745.94 ₹ 4,55,657.76 ₹ 4,14,982.68
Kotak ₹ 2,60,400.21 ₹ 2,24,824.26 ₹ 1,91,235.80 ₹ 1,55,540.00 ₹ 1,35,948.76
IndusInd ₹ 2,56,204.96 ₹ 2,02,039.81 ₹ 1,94,867.91 ₹ 1,51,639.17 ₹ 1,26,572.22
Particulars 2016 2015 2014 2013 2012

HDFC ₹ 5,45,873.29 ₹ 4,50,283.65 ₹ 3,67,080.33 ₹ 2,96,091.77 ₹ 2,46,539.58
ICICI ₹ 9,59,940.02 ₹ 8,00,784.46 ₹ 6,81,316.94 ₹ 5,85,796.11 ₹ 5,12,587.26
Axis ₹ 7,07,623.42 ₹ 6,42,157.21 ₹ 5,50,745.94 ₹ 4,55,657.76 ₹ 4,14,982.68
Kotak ₹ 2,78,871.41 ₹ 2,60,400.21 ₹ 2,24,824.26 ₹ 1,91,235.80 ₹ 1,55,540.00
IndusInd ₹ 93,000.35 ₹ 74,134.36 ₹ 60,502.29 ₹ 54,116.72 ₹ 42,361.55

₹ 1,600,000.00
₹ 1,400,000.00
₹ 1,200,000.00
₹ 1,000,000.00 HDFC
ICICI
₹ 800,000.00
Axis
₹ 600,000.00
Kotak
₹ 400,000.00
IndusInd
₹ 200,000.00
₹ 0.00
Interpretation:
As per the above chart, we cannot say that HDFC Bank in the year 2012 whether its deposits are
good or bad as it has an intermediate position at that time. HDFC bank deposits also increase over
time. HDFC bank deposits increase at an increasing rate. The upward slope of HDFC Bank is seen
going up from right to left over a period of time. The same slope is seen in IndusInd Bank as in
HDFC Bank. But the gap between the two is very wide. IndusInd Bank's deposit is far behind
HDFC Bank. But taking a view of a particular bank, IndusInd bank, it also increases deposits at
the increasing rate as HDFC Bank. Both ICICI bank and Axis Bank run the same in terms of
deposits. One thing to note here is that ICICI Bank has a slightly higher deposit ratio than Axis
Bank. In the year 2015-16, the deposits of both the banks showed a similar decline at a very short
distance. Since then, the deposits of both the banks have increased at an increasing rate. Similarly,
Kotak Bank's deposits have declined significantly during the period 2016-17 but since then, Kotak
Bank's deposits have increased at an increasing rate. The root cause may be the demonetization
carried out by the government of India in October 2016.

CHAPTER – 5
FINDINGS & CONCLUSION
Findings:
In this project report, I have studied the financial performance of selected five private banks in
India.
 Induslnd Bank is in far better position in Current ratio and up to some extent Kotak Bank
also which shows that the both bank have good current assets against Current liability.
Whereas the Axis Bank, HDFC bank and ICICI bank Current ratio indicated their current
assets are not enough to cover their current liability. I also found that the Annova test which
shows that the F-value is more than the significance level. i.e., 0.05. Therefore, rejected the
null hypothesis.
 Kotak bank shows that high cash deposit ratio as compared to the other private bank. It
indicates that depositors preferred to deposit their money in Kotak Bank due to high
solvency and liquidity than other bank. This thing happened due to high number of
customers of the bank then others bank. And also found that the annova test which shows
that there is significant difference between cash deposit ratio of various selected banks. It
means there are not only customers but also some other factors affect the bank cash deposit
ratio.
 Credit deposit ratio shows the how much loan sanctioned against total deposits. Where
credit deposit ratio of all the selected banks are somewhat same and performing well.
Where ratio of 2 banks Induslnd and HDFC bank are same over the years and there little
change happened through the years. Ratio of ICICI bank and Kotak Bank is very curious in
the year of 2016-2017. And performing in same direction. I also found that the Annova test
which shows that the F-value is more than the significance level. i.e., 0.05. Therefore,
rejected the null hypothesis.
 HDFC bank and Kotak Mahindra Bank net profit ratio is high as compared to other private
bank. This shows that the both bank perform efficient management in their business.
Overall performance of HDFC bank and Kotak Mahindra Bank are good. At the same time
ICICI bank, Axis Bank and Induslnd bank are running into losses. And I also found that the
annova test which shows that the F-value is more than the significance level. i.e., 0.05.
Therefore, rejected the null hypothesis.
 HDFC bank and Kotak Mahindra Bank net worth ratio is high as compared to other private
bank. This shows that the HDFC bank and Kotak Mahindra Bank have been given more
returns to shareholders compare to other bank. Net worth ratio of both the bank is parallel
to each other over the last 10 years. Both are somewhat same performing. Both are not
crossing each other that HDFC bank is performing well all time over the last 10 years. I
also found that the Annova test which shows that the F-value is more than the significance
level. i.e., 0.05. Therefore, rejected the null hypothesis.

 Kotak Mahindra bank and Induslnd bank return on asset is much more than the HDFC
bank, ICICI bank and Axis bank. Which Indicates Kotak Mahindra bank and Induslnd bank
have strong positioning according to return on asset ratio. Kotak Mahindra Bank gives the
higher return to their investor as compared to other bank. I also found that the Annova test
which shows that the F-value is more than the significance level. i.e., 0.05. Therefore,
rejected the null hypothesis.
 HDFC bank and Kotak Mahindra Bank ROCE are high as compared to the ICICI bank,
Axis Bank and Induslnd bank. Which indicates bank us its capital efficiently. ICICI bank,
Axis Bank and Induslnd bank that are not employing its capital effectively and is not
generating shareholder value. I also found that the Annova test which shows that the F-
value is more than the significance level. i.e., 0.05. Therefore, rejected the null hypothesis.
 HDFC bank Interest spread ratio is higher than the ICICI bank, Axis Bank, Kotak Mahindra
Bank and Induslnd bank. Which shows that the net interest income of bank after subtracting
interest expenditure. There are HDFC bank indicates linear upward curve with increasing
rate. On the basis of this income of HDFC bank is increasing at increasing rate over the last
10 years. Then ICICI bank earned interest parallel to HDFC bank with somewhat
decreasing rate. Induslnd bank interest income also increasing with very low increasing rate
and too much quite behind HDFC bank. Axis and Kotak Bank earned in same Direction
increasing and decreasing of interest income for the bank are same in different proportion. I
also found that the Annova test which shows that the F-value is more than the significance
level. i.e., 0.05. Therefore, rejected the null hypothesis.
 HDFC bank, Axis Bank, Kotak Mahindra Bank and Induslnd bank total asset turnover ratio
is high as compare to the ICICI bank. The total asset turnover ratio compares the sales of a
company to its asset base. This measures the ability of an organization to efficiently
produce sales, and is typically used by third parties to evaluate the operations of a business.
Ideally, a company with a high total asset turnover ratio can operate with fewer assets than
a less efficient competitor, and so requires less debt and equity to operate. The result should
be a comparatively greater return to its shareholders.
 Proprietary ratio of Kotak Bank performs very well than other four selected banks. Where
Proprietary ratio of Kotak Bank is all time high over last 10 years than other selected
private bank. It indicates that proportions of share holder’s equity to total assets are very
high. According to data analysis Kotak bank total share holders’ equity is more sufficient
against total assets and there are less chances of insolvency of Kotak bank. I also found that
the Annova test which shows that the F-value is more than the significance level. i.e., 0.05.
Therefore, rejected the null hypothesis.

Conclusion:
Bank is one of the things that has not manufactured anything and not sell it serves services to their
customers in terms of monetary value that is loan and accepting deposits then give interest to their
depositors and receive interest from their loan holders. Interest is the mainsource of the income
for the bank. Income of the bank is increasing it is good for the bank.
Today bank is become integral part of our society as well as of our nation. Thus, it can conclude
that banks are very important part our lives as well as for the fast economic growth of every
country. Present scenario calls for a paradigm shift in the banking sector to improve its resilience
and maintain financial stability. In this context, the government has recently announced new
banking reforms, involving the establishment of a creation of a Bad Bank, and privatization of
public sector banks (PSBs) to ease its burden in terms of mobilizing additional capital. Asset
Reconstruction Companies (ARCs) have been created to bring about a system for recovering Non
Performing Assets (NPAs) from the books of secured lenders and unlocking the value of Non-
Performing Assets (NPA). Reserve Bank of India (RBI) provides license for ARCs and ARCs are
empowered by the SARFAESI Act. Basically HDFC bank, ICICI bank, Kotak Mahindra bank,
Axis bank and IndusInd bank provide the neo banking service. A neo bank is basically a digital
bank without any physical branches. It is entirely online without being present at any specific
location. Neo banking is gaining popularity in India as well as across the world.
With various techniques applied in finding the financial performance of the HDFC bank, ICICI
bank, Kotak Mahindra bank, Axis bank and IndusInd bank, I conclude that HDFC bank net profit
ratio, Net worth ratio, Return on capital employed ratio, interest spread and Total asset turnover
ratio is good as compare to the other bank. Kotak Mahindra bank Cash deposit ratio, credit deposit
ratio, Return on asset ratio, total asset turnover ratio and deposit is good as compared to the other
bank. IndusInd bank total asset turnover ratio and current ratio is good as compared to the other
bank. Axis bank total asset turnover ratio is high as compared to the other private bank. ICICI
Bank Cash deposit ratio, credit deposit ratio, interest spread ratio and total asset turnover ratio is
good after the Kotak Mahindra bank and HDFC bank. Overall HDFC bank and Kotak Mahindra
bank has got satisfactory financial position in banking sector.

BIBLIOGRAPHY:
Websites:
 https://www.moneycontrol.com/financials/hdfcbank/profit-lossVI/HDF01
 https://www.moneycontrol.com/financials/hdfcbank/balance-sheetVI/HDF01
 https://www.moneycontrol.com/financials/icicibank/profit-lossVI/ICI02
 https://www.moneycontrol.com/financials/icicibank/balance-sheetVI/ICI02
 https://www.moneycontrol.com/financials/kotakmahindrabank/profit-lossVI/KMB
 https://www.moneycontrol.com/financials/kotakmahindrabank/balance-sheetVI/KMB
 https://www.moneycontrol.com/financials/axisbank/profit-lossVI/AB16
 https://www.moneycontrol.com/financials/axisbank/balance-sheetVI/AB16
 https://www.moneycontrol.com/financials/indusindbank/profit-lossVI/IIB
 https://www.moneycontrol.com/financials/indusindbank/balance-sheetVI/IIB
 https://en.wikipedia.org/wiki/HDFC_Bank
 https://en.wikipedia.org/wiki/ICICI_Bank
 https://en.wikipedia.org/wiki/Kotak_Mahindra_Bank
 https://en.wikipedia.org/wiki/Axis_Bank
 https://en.wikipedia.org/wiki/IndusInd_Bank
 https://www.paisabazaar.com/banking/
 https://www.ibef.org/industry/banking-india.aspx#:~:text=Market%20Size,- The%20Indian
%20banking&text=During%20FY16%2DFY20%2C%20deposits%20grew,a s%20of
%20June%2004%2C%202021
 https://localfirstbank.com/article/four-different-types-of-services-banking/
 https://www.en.investopedia.com
 https://efinancemanagement.com/financial-management/advantages-and-disadvantages-of-
banks

ANNEXURE
1) HDFC Bank Limited:
Profit & Loss account ------------------- in Rs. Cr. -------------------

Particulars Mar '21 Mar '20 Mar '19 Mar '18 Mar '17
12 mths 12 mths 12 mths 12 mths 12 mths
Income
Interest Earned 128,552.39 122,189.29 105,160.74 85,287.84 73,271.35
Other Income 27,332.88 24,878.97 18,947.05 16,056.60 12,877.63
Total Income 155,885.27 147,068.26 124,107.79 101,344.44 86,148.98
Expenditure
Interest expended 59,247.58 62,137.42 53,712.69 42,381.48 38,041.58
Employee Cost 13,676.67 12,920.13 10,451.15 9,193.90 8,504.70
Selling, Admin & Misc 49,719.25 43,437.68 36,277.68 30,241.44 23,429.11
Expenses
Depreciation 1,385.01 1,276.77 1,220.67 966.78 886.19
Operating Expenses 35,001.26 33,036.06 27,694.77 23,927.22 20,751.07
Provisions & Contingencies 29,779.67 24,598.52 20,254.73 16,474.90 12,068.93
Total Expenses 124,028.51 119,772.00 101,662.19 82,783.60 70,861.58
Mar '21 Mar '20 Mar '19 Mar '18 Mar '17
Net Profit for the Year 31,856.77 27,296.27 22,445.61 18,560.84 15,287.40
Minority Interest 23.56 42.31 113.18 51.34 36.72
Share Of P/L Of Associates 0.00 0.00 0.00 -0.52 -2.34
Net P/L After Minority 31,833.21 27,253.95 22,332.43 18,510.02 15,253.03
Interest & Share Of
Associates
Profit brought forward 61,817.69 52,849.61 43,098.98 34,532.33 24,853.04
Total 93,674.46 80,145.88 65,544.59 53,093.17 40,140.44
Equity Dividend 0.00 1,646.95 4,052.59 0.00 0.00
Corporate Dividend Tax 0.00 90.27 43.31 50.77 25.60
Per share data (annualized)
Earnings Per Share (Rs) 57.79 49.78 82.42 71.52 59.66
Book Value (Rs) 380.59 321.63 564.29 422.33 358.21
Appropriations
Transfer to Statutory 11,945.05 13,922.92 6,378.10 8,143.93 4,093.18
Reserves
Transfer to Other Reserves 3,111.65 2,625.73 2,107.81 1,748.67 1,454.96
Proposed Dividend/Transfer 0.00 1,737.22 4,095.90 50.77 25.60
to Gov
Balance c/f to Balance Sheet 78,594.20 61,817.69 52,849.61 43,098.98 34,532.33
Total 93,650.90 80,103.56 65,431.42 53,042.35 40,106.07
Income
Interest Earned 63,161.56 50,666.49 42,555.02 35,861.02 28,193.40
Other Income 11,211.65 9,545.68 8,297.50 7,132.96 5,992.32
Total Income 74,373.21 60,212.17 50,852.52 42,993.98 34,185.72
Expenditure
Employee Cost 6,306.14 5,162.68 4,494.47 4,201.79 3,573.09
Selling, Admin & Misc Expenses 20,442.14 16,380.55 13,459.41 11,533.21 9,678.94
Depreciation 738.03 680.45 688.68 663.26 554.16
Total Expenses 61,555.88 49,512.14 42,088.01 36,093.71 28,912.31
Share Of P/L Of Associates -3.73 -3.25 -3.63 -2.88 -3.64
Net P/L After Minority Interest & 12,801.33 10,688.89 8,743.49 6,869.64 5,247.02
Share Of Associates
Total 32,368.19 25,907.52 20,240.45 15,521.67 11,600.35
Equity Dividend 2,401.78 2,005.20 1,643.35 1,309.66 1,009.52
Per share data (annualized)
Earning Per Share (Rs) 50.70 42.69 36.53 29.00 22.47
Book Value (Rs) 293.90 251.96 184.10 154.00 128.74
Appropriations
Transfer to Statutory Reserves 3,382.86 2,877.17 2,227.79 1,810.06 1,262.45
Transfer to Other Reserves 1,229.62 1,038.58 855.84 672.63 516.72
Proposed Dividend/Transfer to Gov 2,914.13 2,429.74 1,928.32 1,532.40 1,173.41
Total 32,352.20 25,896.35 20,219.42 15,491.03 11,573.97
Balance Sheet ------------------- in Rs. Cr. -------------------
Capital and Liabilities:
Total Share 551.28 548.33 544.66 519.02 512.51
Capital
Equity Share 551.28 548.33 544.66 519.02 512.51
Capital
Reserves 209,258.91 175,810.38 153,128.00 109,080.11 91,281.44
Net Worth 209,810.19 176,358.71 153,672.66 109,599.13 91,793.95
Deposits 1,333,720.88 1,146,207.13 922,502.68 788,375.14 643,134.25
Borrowings 177,696.75 186,834.32 157,732.78 156,442.08 98,415.64
Total Debt 1,511,417.63 1,333,041.45 1,080,235.46 944,817.22 741,549.89
Minority 632.76 576.64 501.79 356.33 291.44
Interest
Other 77,646.07 70,853.63 58,395.80 48,413.49 58,708.88
Liabilities &
Provisions
Total 1,799,506.65 1,580,830.43 1,292,805.71 1,103,186.17 892,344.16
Liabilities
Assets
Cash & 97,370.36 72,211.00 46,804.59 104,688.21 37,910.55
Balances with
RBI
Balance with 23,902.17 15,729.11 35,013.05 18,373.35 11,400.57
Banks, Money
at Call
Advances 1,185,283.52 1,043,670.88 869,222.66 700,033.84 585,480.99
Investments 438,823.11 389,304.95 286,917.68 238,460.92 210,777.11
Gross Block 5,099.56 4,626.86 4,219.84 3,810.56 3,814.70
Net Block 5,099.56 4,626.86 4,219.84 3,810.56 3,814.70
Other Assets 49,027.92 55,287.64 50,627.89 37,819.29 42,960.24
Total Assets 1,799,506.64 1,580,830.44 1,292,805.71 1,103,186.17 892,344.16
Contingent 1,020,028.80 1,182,058.96 1,075,078.11 484,063.22 379,202.19
Liabilities
Book Value 380.59 321.63 564.29 422.33 358.21
(Rs)
Capital & Liabilities:
Total Share Capital 505.64 501.30 479.81 475.88 469.34
Equity Share Capital 505.64 501.30 479.81 475.88 469.34
Employee Stock 0.00 0.00 0.00 0.00 0.30
Opiton
Reserves 73,798.49 62,652.77 43,686.82 36,166.84 29,741.11
Net Worth 74,304.13 63,154.07 44,166.63 36,642.72 30,210.75
Deposits 545,873.29 450,283.65 367,080.33 296,091.77 246,539.58
Borrowings 71,763.45 59,478.25 49,596.72 39,496.61 26,334.15
Total Debt 617,636.74 509,761.90 416,677.05 335,588.38 272,873.73
Other Liabilities & 38,140.33 34,018.93 42,624.55 35,270.54 37,786.88
Provisions
Total Liabilities 730,261.82 607,096.53 503,619.97 407,722.98 341,055.02
Assets
Cash & Balances 30,076.58 27,522.29 25,357.22 14,630.88 14,991.63
with RBI
Balance with Banks, 8,992.30 9,004.13 14,556.21 12,900.28 6,183.53
Money at Call
Advances 487,290.42 383,407.97 315,418.86 247,245.12 198,837.53
Investments 161,683.34 164,272.61 119,571.06 110,960.41 96,795.11
Gross Block 3,479.70 3,224.94 3,026.28 2,773.32 2,377.91
Net Block 3,479.70 3,224.94 3,026.28 2,773.32 2,377.91
Other Assets 38,739.48 19,664.57 25,690.33 19,212.98 21,869.30
Total Assets 730,261.82 607,096.51 503,619.96 407,722.99 341,055.01
Contingent 877,017.38 997,583.52 744,115.98 746,227.84 884,004.64
Liabilities
Book Value (Rs) 293.90 251.96 184.10 154.00 128.74
2) ICICI Bank:
Income
Interest Earned 89,162.66 84,835.77 71,981.65 62,162.35 60,939.98
Other Income 72,173.81 64,950.33 59,324.85 56,806.75 52,457.65
Total Income 161,336.47 149,786.10 131,306.50 118,969.10 113,397.63
Expenditure
Employee Cost 11,050.91 11,156.75 9,425.26 8,333.53 7,893.26
Selling, Admin & 85,922.45 81,567.15 76,068.70 66,351.84 58,416.58
Misc Expenses
Depreciation 1,340.07 1,171.22 945.84 922.14 911.64
Provisions & 22,041.76 22,377.21 22,180.92 19,851.88 19,051.50
Contingencies
Total Expenses 140,972.52 138,560.64 125,617.34 109,869.56 102,057.31
Net Profit for the 20,363.97 11,225.47 5,689.16 9,099.54 11,340.33
Year
Minority Interest 1,979.65 1,659.16 1,434.92 1,387.36 1,151.95
Net P/L After 18,384.32 9,566.31 4,254.24 7,712.19 10,188.38
Minority Interest &
Share Of Associates
Profit brought 26,800.00 22,020.11 21,999.16 21,504.55 19,821.08
forward
Total 47,163.97 33,245.58 27,688.32 30,604.09 31,161.41
Equity Dividend 0.00 645.31 965.13 1,457.46 0.95
Corporate Dividend 0.00 228.24 193.31 233.14 228.04
Tax
Per share data (annualised)
Earning Per Share 29.44 17.34 8.83 14.16 19.47
(Rs)
Book Value (Rs) 223.34 185.10 172.47 167.39 174.37
Appropriations
Reserves
Transfer to Other 0.00 0.00 0.00 0.00 -0.01
Reserves
Proposed 0.00 873.55 1,158.44 1,690.60 228.99
Dividend/Transfer to
Govt
Balance c/f to 38,515.60 26,800.00 22,046.38 21,999.16 21,504.55
Balance Sheet
Total 45,184.32 31,586.42 26,253.40 29,216.73 30,009.46
Income
Interest Earned 59,293.71 54,964.00 49,479.25 44,884.59 37,994.86
Other Income 42,102.14 35,252.24 30,084.61 29,319.81 28,663.42
Total Income 101,395.85 90,216.24 79,563.86 74,204.40 66,658.28
Expenditure
Employee Cost 6,912.29 6,568.32 5,968.79 5,629.09 5,101.27
Expenses
Depreciation 843.11 798.22 719.27 625.48 671.44
Provisions & 15,682.92 9,933.07 7,509.77 5,582.05 4,155.35
Contingencies
Total Expenses 90,468.94 77,273.93 67,886.74 64,074.52 58,720.65
Interest & Share Of
Associates
Total 30,754.76 27,489.85 22,006.58 16,934.75 11,945.39
Equity Dividend 2,907.52 2,898.81 2,656.28 2,307.23 1,902.04
Book Value (Rs) 157.47 146.68 662.49 596.48 532.00
Appropriations
Reserves
Transfer to Other -0.01 -0.01 0.00 0.00 0.00
Reserves
Proposed 3,461.43 3,387.08 3,072.82 2,701.27 2,227.76
Govt
Balance c/f to Balance 19,821.08 19,865.26 14,547.55 10,329.46 6,876.65
Sheet
Total 30,007.83 26,794.42 21,370.82 16,408.48 11,650.70
Total Share 1,383.41 1,294.76 1,289.46 1,285.81 1,165.11
Capital
Equity Share 1,383.41 1,294.76 1,289.46 1,285.81 1,165.11
Capital
Employee 3.10 3.49 4.68 5.57 6.26
Stock Opiton
Reserves 153,075.71 118,518.45 109,889.27 106,310.68 100,395.52
Net Worth 154,462.22 119,816.70 111,183.41 107,602.06 101,566.89
Deposits 959,940.02 800,784.46 681,316.94 585,796.11 512,587.26
Borrowings 143,899.94 213,851.78 210,324.12 229,401.83 188,286.76
Total Debt 1,103,839.96 1,014,636.24 891,641.06 815,197.94 700,874.02
Minority 9,588.34 6,794.77 6,580.54 6,008.19 4,865.31
Interest
Policy 203,180.04 145,486.25 152,378.75 0.00 0.00
Holders
Funds
Other 99,616.41 87,414.91 73,940.14 192,445.22 175,353.32
Liabilities &
Provisions
Total 1,570,686.97 1,374,148.87 1,235,723.90 1,121,253.41 982,659.54
Liabilities
Assets
Cash & 46,302.20 35,311.93 38,066.28 33,272.60 31,891.26
Balances
with RBI
Balance with 101,268.33 92,540.99 49,324.62 55,726.53 48,599.61
Banks,
Money at
Call
Advances 791,801.39 706,246.11 646,961.68 566,854.22 515,317.31
Investments 536,578.62 443,472.63 398,200.76 372,207.68 304,373.29
Gross Block 10,809.26 10,408.66 9,660.42 9,465.01 9,337.96
Revaluation 3,125.28 3,143.36 3,070.00 3,027.64 3,065.11
Reserves
Net Block 7,683.98 7,265.30 6,590.42 6,437.37 6,272.85
Other Assets 87,052.45 89,311.91 96,580.14 86,755.00 76,205.22
Total Assets 1,570,686.97 1,374,148.87 1,235,723.90 1,121,253.40 982,659.54
Contingent 3,076,190.61 3,051,454.79 2,661,651.12 1,452,896.94 868,410.51
Liabilities
Book Value 223.34 185.10 172.47 167.39 174.37
(Rs)
Total Share 1,163.17 1,159.66 1,155.04 1,153.64 1,152.77
Capital
Equity Share 1,163.17 1,159.66 1,155.04 1,152.77 1,152.77
Capital
Preference 0.00 0.00 0.00 0.87 0.00
Share Capital
Employee 6.70 7.44 6.57 4.48 2.39
Stock Option
Reserves 90,123.37 83,537.44 75,268.23 67,604.29 60,121.34
Net Worth 91,293.24 84,704.54 76,429.84 68,762.41 61,276.50
Deposits 451,077.39 385,955.25 359,512.68 314,770.54 281,950.47
Borrowings 220,377.66 211,252.00 183,542.07 172,888.22 161,296.62
Total Debt 671,455.05 597,207.25 543,054.75 487,658.76 443,247.09
Minority 3,355.64 2,505.81 2,010.76 1,705.76 1,427.72
Interest
Other 149,834.79 141,661.56 126,030.31 116,694.79 98,240.10
Liabilities &
Provisions
Total 915,938.72 826,079.16 747,525.66 674,821.72 604,191.41
Liabilities
Assets
Cash & 27,277.56 25,837.67 22,096.93 19,306.20 20,728.18
Balances with
RBI
Balance with 37,758.41 21,799.50 26,161.30 30,064.66 20,428.11
Banks, Money
at Call
Advances 493,729.11 438,490.10 387,341.78 329,974.13 292,125.42
Investments 286,044.09 302,761.63 267,609.44 255,666.68 239,864.09
Gross Block 8,713.46 5,871.21 5,506.83 5,473.46 5,431.98
Revaluation 2,817.47 0.00 0.00 0.00 0.00
Reserves
Net Block 5,895.99 5,871.21 5,506.83 5,473.46 5,431.98
Other Assets 65,233.57 31,319.07 38,809.40 34,336.59 25,613.63
Total Assets 915,938.73 826,079.18 747,525.68 674,821.72 604,191.41
Contingent 1,182,880.58 1,035,330.05 927,805.69 926,424.70 1,045,172.12
Liabilities
Book Value 157.47 146.68 662.49 596.48 532.00
(Rs)
3) Kotak Mahindra Bank Ltd:
Income
Interest Earned 32,819.83 33,474.16 29,934.76 25,131.08 22,324.21
Other Income 23,994.94 16,891.58 16,044.35 13,682.23 11,660.45
Total Income 56,814.77 50,365.74 45,979.11 38,813.31 33,984.66
Expenditure
Employee Cost 5,855.70 5,755.97 4,850.90 4,380.90 3,982.31
Expenses
Depreciation 461.05 383.49 458.42 383.43 362.21
Total Expenses 46,911.87 41,758.65 38,859.41 32,666.18 29,034.68

Share Of P/L Of -87.31 13.72 -84.43 -110.51 -70.18
Associates
Interest & Share Of
Associates
Total 46,338.75 39,014.12 32,050.83 26,299.70 21,173.86
Preference Dividend 40.50 193.26 0.00 0.00 0.00
Equity Dividend 0.00 0.00 160.28 114.21 0.07
Corporate Dividend Tax 0.00 39.76 32.98 23.80 -0.62
Book Value (Rs) 425.55 348.32 302.71 264.93 209.09
Appropriations
Reserves
Transfer to Other Reserves 0.00 -0.01 1.75 1.75 0.00
Proposed Dividend/Transfer 40.50 233.02 193.26 138.01 -0.55

to Govt
Total 46,426.05 39,000.40 32,135.26 26,353.53 21,165.21

Income
Interest Earned 20,401.64 13,318.89 11,985.90 10,837.87 8,470.42
Other Income 7,630.73 8,152.20 5,282.39 5,112.41 4,543.40
Total Income 28,032.37 21,471.09 17,268.29 15,950.28 13,013.82
Expenditure
Employee Cost 3,854.05 2,375.46 1,915.12 1,773.50 1,601.54
Expenses
Depreciation 344.51 236.89 207.86 179.03 164.33
Provisions & 2,584.19 1,690.64 1,492.93 1,123.14 904.71
Contingencies
Total Expenses 24,601.24 18,406.00 14,756.76 13,746.05 11,163.29
Share Of P/L Of -92.92 -39.88 -15.62 -33.58 -34.55
Associates
Interest & Share Of
Associates
Total 16,973.98 12,784.27 10,393.61 8,500.38 6,813.15
Equity Dividend 91.84 82.07 63.08 52.38 44.49
Book Value (Rs) 181.86 286.63 247.64 204.25 174.18
Appropriations
Transfer to Statutory 666.37 709.84 473.59 472.77 282.09
Reserves
Transfer to Other Reserves 0.00 94.04 79.16 68.38 163.02
Proposed 111.46 96.63 75.11 61.42 53.57
Dividend/Transfer to Govt
Sheet
Total 17,001.71 12,764.64 10,347.05 8,484.64 6,794.85
Capital and Liabilities:
Total Share Capital 1,490.92 1,456.52 1,454.38 952.82 920.45
Preference Share 500.00 500.00 500.00 0.00 0.00
Capital
Employee Stock 2.16 2.87 2.07 2.17 1.87
Opiton
Reserves 83,345.53 65,677.60 56,825.35 49,533.24 37,570.39
Net Worth 84,838.61 67,136.99 58,281.80 50,488.23 38,492.71
Deposits 278,871.41 260,400.21 224,824.26 191,235.80 155,540.00
Borrowings 47,738.90 65,576.72 66,438.94 58,603.97 49,689.91
Total Debt 326,610.31 325,976.93 291,263.20 249,839.77 205,229.91
Policy Holders 42,071.52 31,508.82 27,417.81 22,425.34 18,792.88
Funds
Provisions
Assets
Cash & Balances 12,528.00 9,513.23 10,910.92 8,933.50 7,512.23
with RBI
Money at Call
Advances 252,188.22 249,878.96 243,461.99 205,997.32 167,124.91
Investments 156,945.55 111,196.91 103,487.02 90,976.60 68,461.54
Gross Block 2,553.92 2,674.72 2,697.46 2,542.89 1,758.62
Net Block 2,553.92 2,674.72 2,697.46 2,542.89 1,758.62
Other Assets 19,468.38 15,342.28 14,260.31 13,803.03 13,253.94
Total Assets 478,872.69 443,172.71 395,171.24 337,720.47 276,187.56
Contingent 243,562.85 229,678.06 249,699.39 234,012.86 216,490.33
Liabilities
Book Value (Rs) 425.55 348.32 302.71 264.93 209.09
Employee Stock 3.41 3.00 8.53 17.53 34.82
Option
Reserves 32,443.45 21,752.09 18,690.85 14,876.49 12,530.70
Net Worth 33,364.05 22,141.27 19,084.54 15,267.32 12,935.86
Deposits 135,948.76 72,843.46 56,929.75 49,389.14 36,460.73
Borrowings 43,729.79 31,414.88 29,007.14 36,171.96 29,194.69
Total Debt 179,678.55 104,258.34 85,936.89 85,561.10 65,655.42
Policy Holders Funds 15,148.28 13,792.61 11,014.56 10,077.27 9,011.53
Provisions
Assets
Cash & Balances with 6,924.90 3,945.12 2,960.51 2,220.76 2,030.63
RBI
Money at Call
Advances 144,792.82 88,632.21 71,692.52 66,257.65 53,143.61
Investments 70,273.90 47,350.87 38,791.05 40,907.24 31,658.43
Gross Block 1,761.02 1,384.97 1,264.09 619.90 615.29
Revaluation Reserves 0.00 15.05 0.00 0.00 0.00
Net Block 1,761.02 1,369.92 1,264.09 619.90 615.29
Other Assets 12,376.44 4,304.27 3,845.87 3,531.63 3,356.22
Total Assets 240,803.59 148,560.72 122,236.64 115,834.67 92,349.38
Contingent Liabilities 259,675.91 70,867.09 48,822.33 43,980.45 42,221.94
Book Value (Rs) 181.86 286.63 247.64 204.25 174.18
4) Axis Bank:
Income
Interest Earned 64,696.42 63,715.68 56,043.65 46,614.06 45,175.09
Other Income 16,151.52 16,341.99 14,188.75 11,862.62 12,421.60
Total Income 80,847.94 80,057.67 70,232.40 58,476.68 57,596.69
Expenditure
Employee Cost 2,168.54 5,819.96 5,989.87 5,414.44 4,742.10
Expenses
Depreciation 979.39 806.07 737.17 590.58 526.67
Provisions & 19,494.23 22,117.22 14,581.65 15,620.59 14,114.69
Contingencies
Total Expenses 73,595.55 78,178.91 65,185.31 58,012.65 53,629.67
Net Profit for the Year 7,252.39 1,878.75 5,047.09 464.02 3,967.03
Net P/L After Minority 7,195.50 1,853.11 5,038.59 455.82 3,953.03
Interest & Share Of
Associates
Total 34,378.21 26,996.27 28,601.44 25,345.57 27,969.73
Equity Dividend 0.00 331.86 26.95 1,457.40 1,444.26
Book Value (Rs) 338.13 305.99 263.65 250.17 235.41
Appropriations
Transfer to Statutory 2,863.59 1,114.83 1,833.53 317.56 1,623.04
Reserves
Proposed 0.00 331.86 26.95 1,457.40 1,444.26
Sheet
Total 34,321.31 26,970.64 28,592.93 25,337.37 27,955.72
Income
Interest Earned 41,409.25 35,727.46 30,735.96 27,201.98 21,994.90
Other Income 9,954.98 8,838.11 7,766.25 6,832.80 5,487.19
Total Income 51,364.23 44,565.57 38,502.21 34,034.78 27,482.09
Expenditure
Employee Cost 4,019.34 3,615.69 2,973.05 2,675.37 2,254.02
Expenses
Depreciation 461.39 419.64 375.46 358.77 348.15
Provisions & 8,051.04 6,165.90 5,280.55 4,147.08 3,194.51
Contingencies
Total Expenses 43,006.63 37,117.08 32,193.05 28,801.00 23,263.58
Share Of P/L Of 0.00 -1.36 -1.36 -1.22 -1.27
Associates
Interest & Share Of
Associates
Total 26,147.32 21,049.72 16,354.57 12,546.57 9,082.96
Equity Dividend 31.26 1,092.80 939.69 987.48 770.26
Book Value (Rs) 224.77 189.62 817.21 708.58 548.92
Appropriations
Reserves
Proposed 31.26 1,315.28 1,101.44 987.48 770.26
Sheet
Total 26,139.41 21,049.13 16,355.52 12,547.54 9,084.23
Total Share 612.75 564.34 514.33 513.31 479.01
Capital
Equity Share 612.75 564.34 514.33 513.31 479.01
Capital
Reserves 102,980.95 85,776.09 67,288.29 63,694.10 55,901.34
Net Worth 103,593.70 86,340.43 67,802.62 64,207.41 56,380.35
Deposits 707,623.42 642,157.21 550,745.94 455,657.76 414,982.68
Borrowings 152,248.72 155,180.17 161,249.83 155,767.09 112,454.76
Total Debt 859,872.14 797,337.38 711,995.77 611,424.85 527,437.44
Provisions
Total Liabilities 1,010,325.33 927,871.82 814,045.97 703,703.36 611,462.02
Assets
Cash & Balances 51,808.57 84,959.27 35,099.04 35,481.06 30,857.95
with RBI
Balance with 11,615.79 12,840.50 32,905.27 8,429.75 20,108.17
Banks, Money at
Call
Advances 635,070.69 582,958.84 506,656.12 449,843.65 381,164.67
Investments 225,335.77 155,281.63 174,055.85 153,036.71 129,018.35
Gross Block 4,211.35 3,911.74 3,842.12 3,697.03 3,518.14
Net Block 4,211.35 3,911.74 3,842.12 3,697.03 3,518.14
Capital Work In 118.34 482.60 287.76 351.79 292.10
Progress
Other Assets 82,164.82 87,437.22 61,199.80 52,863.38 46,502.64
Total Assets 1,010,325.33 927,871.80 814,045.96 703,703.37 611,462.02
Contingent 1,104,000.18 972,849.52 810,201.83 780,010.93 749,444.65
Liabilities
Book Value (Rs) 338.13 305.99 263.65 250.17 235.41
Reserves 53,082.19 44,475.49 37,926.20 32,690.42 22,268.51
Net Worth 53,558.76 44,949.59 38,396.04 33,158.37 22,681.71
Deposits 358,302.19 322,244.17 280,541.07 252,149.12 219,987.68
Borrowings 104,493.73 84,393.50 52,739.22 44,105.10 34,071.67
Total Debt 462,795.92 406,637.67 333,280.29 296,254.22 254,059.35
Provisions
Assets
Cash & Balances 22,361.16 19,818.84 17,041.36 14,792.11 10,702.92
with RBI
Money at Call
Advances 344,663.32 284,448.65 232,381.73 196,990.14 169,759.54
Investments 121,880.78 133,319.24 113,092.78 113,378.06 92,921.44
Gross Block 3,357.87 2,446.72 2,345.64 2,244.91 2,204.32
Net Block 3,357.87 2,446.72 2,345.64 2,244.91 2,204.32
Capital Work In 215.89 105.18 101.62 142.42 79.82
Progress
Other Assets 28,212.54 10,431.08 9,846.14 7,302.28 6,517.16
Total Assets 532,033.21 467,242.96 386,350.06 340,557.73 285,416.51
Contingent 670,091.01 640,342.97 631,677.44 576,018.35 514,872.88
Liabilities
Book Value (Rs) 224.77 189.62 817.21 708.58 548.92
5) Induslnd Bank:
Income
Interest Earned 28,999.80 28,782.83 22,261.15 17,280.75 14,405.67
Other Income 6,558.61 6,951.31 5,646.72 4,750.10 4,171.49
Total Income 35,558.41 35,734.14 27,907.87 22,030.85 18,577.16
Expenditure
Employee Cost 2,213.51 2,208.48 1,853.51 1,780.69 1,521.02
Expenses
Depreciation 305.41 277.97 228.85 211.64 190.70
Provisions & 8,890.28 6,354.80 4,787.12 3,050.12 2,583.13
Contingencies
Total Expenses 41,517.52 35,968.33 27,714.42 18,578.51 16,064.49
Net Profit for the Year -5,959.11 -234.18 193.45 3,452.33 2,512.67
Total 7,524.55 11,316.09 9,504.94 10,570.71 7,526.12
Equity Dividend 0.00 0.00 452.02 432.24 0.46
Earning Per Share (Rs) -77.05 -3.38 3.21 57.52 42.01
Equity Dividend (%) 0.00 0.00 75.00 75.00 60.00
Book Value (Rs) 556.61 485.97 437.20 390.94 338.65
Appropriations
Transfer to Statutory 391.45 2,484.52 962.71 980.63 762.51
Reserves
Proposed 0.00 0.00 542.94 432.24 0.46
Sheet
Total 16,320.06 15,968.18 12,612.59 10,724.36 7,881.35
Income
Interest Earned 11,580.66 9,691.96 8,253.53 6,983.23 5,359.19
Other Income 3,296.95 2,403.87 1,890.53 1,362.96 1,011.78
Total Income 14,877.61 12,095.83 10,144.06 8,346.19 6,370.97
Expenditure
Employee Cost 1,236.09 980.48 809.29 661.46 485.47
Expenses
Depreciation 156.52 126.85 98.15 73.43 74.96
Provisions & 1,854.97 1,304.50 1,187.94 778.28 570.42
Contingencies
Total Expenses 13,263.32 10,314.70 8,737.61 7,291.71 5,571.44
Net Profit for the Year 1,614.29 1,781.14 1,406.45 1,054.48 799.54
Profit brought forward 3,664.02 2,623.33 1,790.93 1,187.59 714.36

Total 5,278.31 4,404.47 3,197.38 2,242.07 1,513.90
Equity Dividend 292.62 212.01 184.08 157.09 102.89

Earnings Per Share 27.13 33.64 26.77 20.17 17.10
(Rs)
Equity Dividend (%) 45.00 40.00 35.00 30.00 22.00
Book Value (Rs) 290.79 193.40 164.33 141.71 96.50
Appropriations
Transfer to Statutory 584.82 497.87 360.26 274.06 209.80
Reserves
Proposed 352.19 255.16 215.36 183.78 119.58
Gov
Sheet
Total 5,950.46 4,417.05 3,198.95 2,248.77 1,516.97
Share Application 5.41 683.29 11.19 14.57 15.20
Money
Reserves 42,273.02 33,010.08 25,746.55 22,864.65 19,658.18
Net Worth 43,051.80 34,386.91 26,360.43 23,479.44 20,271.53
Deposits 256,204.96 202,039.81 194,867.91 151,639.17 126,572.22
Borrowings 51,322.81 60,753.55 47,321.12 38,289.08 22,453.69
Total Debt 307,527.77 262,793.36 242,189.03 189,928.25 149,025.91
Provisions
Assets
Cash & Balances 17,870.68 13,675.25 9,961.17 10,962.41 7,748.75
with RBI
Money at Call
Advances 212,595.41 206,783.17 186,393.50 144,953.66 113,080.51
Investments 69,694.71 59,979.94 59,266.16 50,076.72 36,702.14
Gross Block 1,734.14 1,742.11 1,688.06 1,313.31 1,306.80
Revaluation 313.61 319.58 325.55 362.20 374.59
Reserves
Net Block 1,420.53 1,422.53 1,362.51 951.11 932.21
Capital Work In 75.23 78.01 21.95 25.44 28.44
Progress
Other Assets 22,546.07 22,470.68 15,666.35 12,041.16 8,902.28
Total Assets 362,659.14 306,737.98 277,493.87 221,263.97 178,273.84
Contingent 873,670.14 990,168.88 985,639.95 358,130.43 210,320.07
Liabilities
Book Value (Rs) 556.61 485.97 437.20 390.94 338.65

Share Application 13.77 14.05 11.02 10.71 10.95
Money
Reserves 16,706.45 9,710.02 8,109.03 6,883.98 4,043.72
Net Worth 17,315.21 10,253.52 8,645.69 7,417.56 4,522.37
Deposits 93,000.35 74,134.36 60,502.29 54,116.72 42,361.55
Borrowings 22,155.86 20,618.06 14,761.96 9,459.56 8,682.01
Total Debt 115,156.21 94,752.42 75,264.25 63,576.28 51,043.56
Provisions
Assets
Cash & Balances 4,521.04 4,035.14 4,413.92 3,249.84 2,903.58
with RBI
Money at Call
Advances 88,419.34 68,788.20 55,101.84 44,320.61 35,063.95
Investments 31,214.31 24,859.37 21,562.95 19,654.17 14,571.95
Gross Block 1,217.85 1,119.56 991.26 740.61 614.10
Revaluation 380.77 391.01 397.27 212.69 219.34
Reserves
Net Block 837.08 728.55 593.99 527.92 394.76
Capital Work In 37.48 38.02 25.19 15.53 42.70
Progress
Other Assets 9,056.14 3,531.63 2,575.25 1,726.87 1,763.75
Total Assets 139,676.22 108,724.91 86,628.67 73,093.83 57,376.74
Contingent 298,862.17 215,702.02 153,578.83 141,240.40 109,341.28
Liabilities
Book Value (Rs) 290.79 193.40 164.33 141.71 96.50

A Study On Financial Performance of Banks in India

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A

WINTER INTERNSHIP REPORT

IN THE PARTIAL FULFILMENT OF THE AWARD OF THE DEGREE OF MASTER

UNDER THE GUIDANCE OF

 History of banking system.......................................................................................................................................4

 Research Problem statement..................................................................................................................................33

DATA ANALYSIS & INTERPRETATION..................................................................................................................35

FINDINGS & CONCLUSION.........................................................................................................................................59

INTRODUCTION OF BANKING INDUSTRY IN INDIA:

DEPARTMENT OF BUSINESS & INDUSTRIAL MANAGEMENT Page 1

DEPARTMENT OF BUSINESS & INDUSTRIAL MANAGEMENT Page 4

History of Indian Banking System:

DEPARTMENT OF BUSINESS & INDUSTRIAL MANAGEMENT Page 5

Advantages & Disadvantages of Banks:

2) Availability of Cheap Loans:

4) Economies of Large Scale:

5) Development in Rural Areas:

DEPARTMENT OF BUSINESS & INDUSTRIAL MANAGEMENT Page 6

2) Risk of Fraud and Robberies:

3) Risk of Public Debt:

DEPARTMENT OF BUSINESS & INDUSTRIAL MANAGEMENT Page 7

Structure of Banking Sector in India:

DEPARTMENT OF BUSINESS & INDUSTRIAL MANAGEMENT Page 8

Structure of Indian banking system is as follow:

Bank Classification in India

Commercial Small Finance Payments bank Co- Operative

Public Sector Urban Co-op.

 Public Sector Banks

a) Public Sector Banks:

There are a total of 12 nationalized banks in the country namely below:

DEPARTMENT OF BUSINESS & INDUSTRIAL MANAGEMENT Page 9

Bank of Maharashtra Indian Bank

Australia and New Zealand National Australia Bank Westpac Banking

DEPARTMENT OF BUSINESS & INDUSTRIAL MANAGEMENT Page 10

d) Regional Rural Banks:

2) Small Finance Banks:

Au Small Finance Bank Ltd. Jana Small Finance Bank Ltd.

DEPARTMENT OF BUSINESS & INDUSTRIAL MANAGEMENT Page 11

Urban Co-operative Banks State Co-operative Banks

a) Urban Co-operative Banks:

b) State Co-operative Banks:

DEPARTMENT OF BUSINESS & INDUSTRIAL MANAGEMENT Page 12

Adoption of banking technology:

Indian Banking Industry Analysis:

DEPARTMENT OF BUSINESS & INDUSTRIAL MANAGEMENT Page 13

Types of Bank Service:

3. Discounting of Bills of Exchange:

5. Collection and Payment of Credit Instruments:

DEPARTMENT OF BUSINESS & INDUSTRIAL MANAGEMENT Page 14

11. ATMs Services:

 Elimination of labor cost

12. Debit cards:

14. Online banking:

15. Mobile Banking:

16. Accepting Deposit:

17. Priority banking:

DEPARTMENT OF BUSINESS & INDUSTRIAL MANAGEMENT Page 16

DEPARTMENT OF BUSINESS & INDUSTRIAL MANAGEMENT Page 17

DEPARTMENT OF BUSINESS & INDUSTRIAL MANAGEMENT Page 18