A

PROJECT REPORT

ON

“A Study of Financial Statement Analysis of Shriram Finance Limited,

Kopargaon”

SUBMITTED TO

SAVITRIBAI PHULE PUNE UNIVERSITY, PUNE

IN THE PARTIAL FULFILLMENT OF

THE ACADEMIC REQUIREMENT FOR THE DEGREE OF

SECOND YEAR MASTER OF COMMERCE (M. Com .II)

SUBMITTED BY

AHER GANESH NITIN

UNDER THE GUIDANCE OF

PROF. S.S. DIGWA MAM

Rayat Shikshan Sanstha’s

Shri Sadguru Gangageer Maharaj Science, Gautam Arts and
Sanjivani Commerce College, Kopargaon,

Tal- Kopargaon, Dist-Ahmednagar- 423601

2024 - 25
 Rayat Shikshan Sanstha’s
Shri Sadguru Gangageer Maharaj Science, Gautam Arts and
Sanjivani Commerce College, Kopargaon,
Tal- Kopargaon, Dist-Ahmednagar- 423601

Certificate
This is to certify that, Mr . AHER GANESH NITIN

has completed and submitted a project report on “A Study of Financial

Statement Analysis of Shriram Finance Limited, Kopargaon” to Savitribai Phule
Pune
University, Pune for the partial fulfillment of Master of Commerce (M. Com).

We further certify that, to the best of our knowledge and belief, the matter

presented in this project report has not been submitted to any other Degree or

Diploma Course.

Place: Kopargaon

Date:

Head, Principal,
Project Guide Department of Commerce & S. S. G. M. College,
Management Kopargaon

Internal Examiner External Examiner

***************************************************

Certificate
This is to certify that, Mr . AHER GANESH NITIN from Shri
Sadguru Gangageer Maharaj Science, Gautam Arts and Sanjivani Commerce
College, Kopargaon has completed his project report on “A Study of Financial
Statement Analysis Shriram Finance Limited, Kopargaon.” in our organization during the
academic year 2024-25 for the partial fulfillment of Master of Commerce.
(M.COM.II)

We have noticed that, during the project work, he/ she has shown keen
interest in his/ her project and was also regular

Place: Kopargaon

Date:
 DECLARATION

I hereby declare that the Dissertation report entitled" “A Study of

Financial Statement Analysis of Shriram Finance Limited” Kopargaon is an
independent analysis work carried out by me as a part of M.COM II
curriculum, university of Pune, under the guidance of Prof.Digwa S.S. This
project was undertaken as a part of academic curriculum according to the
university rule send norm send had no commercial interest and motive. It is
my original work.

Place-
Date-

Mr. AHER GANESH NITIN

 ACKNOWLEGEMENT

I take opportunity to express my deep sense of gratitude and whole hearted thanks
to my guide Prof. Digwa S.S. for his invaluable guidance, inspiration and
encouragement. It is because of him that I could synchronize my efforts in this project.
I am greatly indebted to him for piloting us whenever we faced difficulties in our work.
I would like to thanks Principal Dr. Sanap. R.R, Prof. Bhoye. D. V., Prof. Mahale. S.
A., Prof. Miss. Kharnar. B. R, Prof. Miss.Dighe.S.B., Prof.M.B Salve.,Prof Mrs Shelar M.P
Prof. M.S. Deokar and College Staff or their kind co-
operation.
Last but not least I am thankful to all my family members and friends for their
presence in my completion of the project.

MR . AHER GANESH NITIN

1
 Index of Project

Chapter Particular Pages Number

No.

1 Introduction of the Study 3-10

2 Company Profile 11-17

3 Objective of Study 18-19

4 Review of literature 20-21

5 Research Methodology 22-24

6 Data analysis and Interpretations 25-35

7 Observations and Findings 36-37

8 Conclusion & Suggestions 38

9 Bibliography 39

10 Annexure and Questionnaire 40-41

2
 CHAPTER: 1

INTRODUCTION

The Origin and growth of Banking

For centuries bank have played an important role in financial system of any

economy. vital role continues even today although the forms of banking have

changed with the changing need of economies. Banking in the crude form is an age-

old phenomenon and its invention preceded that of coinage. As new and more

sophisticated instrument of currency evolved, so did banking. It evolved as business

expended and barter system gave way to money, which needed save deposit. In its

simple form, it originated temples royal places around 1000 B. C. in Babylon, as

strongest faith of people, which were also functioning as treasuries against

receipts,form of banking

History of Bank

The origins of states bank of India date bank to 1806 when the Bank of Calcutta

(later called the Bank of Bengal) was established in 1921, the Bank of Bengal and

two other Presidency bank (Bank of Madras and the Bank of Bombay) were

amalgamated to form the imperial Bank of India. In 1955, the controlling interest in

the imperial Bank of India. Today branches spanning all time zones. SBI, s

International Banking Group delivers the full range of border finance solution

through its four wings-the Domestic, division. State Bank of India has spread its

arms around the world and has network.

3
Post–Independence

The partition of India in1947 had adversely impacted the economics of Punjab and

West Bengal, and banking activities had remained paralyzed for months India ‘s

independence marked the end of a regime of the Lassies –faire for the Indian

Banking. The GOVT. OF India initiated measure to play an activity role in the

economic life of nation and industrial policy Resolution adopted by the Govt. in

1948 envisaged a mixed economy. This resulted into greater involvement of the state

in different segment of the economy including banking and finance. The major steps

to regulate banking included in 1948, The Reserve Bank OF India, India‖ central

banking authority, was nationalized, and it became an institution owned by the Govt.

of India. In 1949, the Banking Regulation Act was enacted which empowered the

RBI to regulate, control and in spect the banks of India.

Types of banks

There are several different types of banks including:

Central banks usually control monetary policy and may be the lender of last resort

in the event of a crisis. They are often charged with controlling the money supply,

including printing paper money. An example of central banks the Reserve Bank of

India.

Investment banks underwrite stock and bond issues and advise on mergers.

Examples of investment banks are gold man Sachs of the (USA) or Kotak Mahindra

Bank Ltd (India).

4
Merchant banks were traditional ly banks, which engaged in trade financing. The

modern definition, however, refers to banks, which provides capital to firms in the

form of shares rather than loans. Unlike Venture capital firms, they tend not to invest

in new companies. Private banks manage the assets of the very rich. Savings banks

write mortgage sex collusively. Offshore banks are banks located in jurisdictions

with low taxation and regulation, such as Switzerland or the Channel Islands. Many

offshore banks are essentially private banks. Commercial banks primarily lend to

businesses (corporate banking) Retail banks primarily lend to individuals.

Universal banks engage in several of these activities. For example, Citigroup, a

large American bank, is involved in commercial and retail lending; it owns a bank

(Citicorp Merchant Bank Limited) and an investment bank (Salomon Smith Barney);

it operates a private bank (Citigroup Private Bank); finally, its subsidiaries in tax-

havens offer offshore banking services to customers in other countries.

INTRODUCTION TO HDFC BANK KOPARGAON

HDFC Bank was in corporate in 1994 by Housing Development Finance

Corporation Limited (HDFC), India's largest housing finance company. It was

among the first companies to receive an 'in principle' approval from the Reserve

Bank of India (RBI) to set up a bank in the private sector. The Bank started

operations as a scheduled commercial banking January 1995 under the RBI's

liberalization policies. The Reserved Bank of India approved "in principle" the first

housing development company in the year 1944, HDFC who were the first among

5
the others to establish a private sector bank as part of the liberal Indian banking

sector by RBI. . On August 1944, it was registered with an office-based Mumbai and

received the name of "HDFC bank limited". In January 1995, HDFC Bank began

operating as a planned commercial bank.

Bank Limited (owned by Bennett, Coleman & Co. / Times Group) was merged

with HDFC Bank Ltd., in 2000. This was the first merger of two private banks in

India. Shareholders of Times Bank received 1share of HDFC Bank for every

5.75shares of Times Bank.

In 2008 HDFC Bank acquired Centurion Bank of Punjab taking its total branches

to more than1,000. The amalgamated bank emerged with a base of about

Rs.1,22,000crore and net advances of about Rs.89,000 crore. The balance sheet size

of the combined entity is more than Rs.1,63, 000crore.The Bank opened its first

branch in Ramon House at Church gate, Mumbai on January 16th.

The Bank has created an efficient operating system using well tested State-of-

the-art software. HDFC Bank has 1,986 branches and over 5,471 ATMs, in 1996

cities in India, and all branches of the bank are linked on an online real – time basis.

As of 30 September 2008, the bank had total assets of Rs.1006.82 billion. For the

fiscal year 2021-22 the bank has reported net profit.

Kopargaon has number of branches spread across India. Branch banking has

undergone significant changes in response to the competition in financial services

market and the ever increasing consumer demands. This leads to a single consumer

bearing more than one account in different banks and due to internet banking, as in

6
case of HDFC Bank Kopargaon branch, fund transfer between these banks is also

possible.

HDFC Bank deals with three key business segments. - Wholesale Banking

Services, RetailBanking Services, Treasury. It has entered the banking consortia of

over 50 corporates for providing working capital finance, trade services,corporate

finance, and merchant banking.Itisalso providing sophisticated product structures in

areas of foreign exchange and derivatives,money markets and debt trading and

equity research.

Wholesale banking services

Blue-chip manufacturing companies in the Indian corp to small & mid-sized

corporate sand agri-based businesses. For these customers, the Bank provides a wide

range of commercial and transactional banking services, including working capital

finance, trade services, transactional services, cash management, etc. The bank is

also a leading provider for its to corporate customers, mutual funds, stock exchange

members and banks.

Retail banking services

HDFC Bank was the first bank in India to launch an International Debit Card in

association with VISA (VISA Electron) and issues the Mastercard Maestro debit

card as well. The Bank launchedits credit card business in late 2001. By March 2009,

the bank had a total card base (debit and creditcards) of over 13 million.The Bank is

also one of the leading players in the―merchant acquiring business with over 70,000

7
Point-of-sale (POS) terminals for debit / credit cards acceptance at merchant

establishments. The Bank is positioned in various net based B2C opportunities

including a wide range of internet banking services for Fixed Deposits, Loans, Bill

Payments,etc.

Treasury

Within this business,the bank has three main product areas-Foreign Exchange and

Derivatives,Local Currency Money Market & Debt Securities, and Equities. These

services are provided through the bank's Treasury team. To comply with statutory

reserve requirements, the bank is required to hold 25% of its deposits in government

securities. The Treasury business is responsible for managing the returns and market

risk on this investment portfolio.

Capital structure

At present, HDFC Bank boasts of an authorized capital of Rs 550 crore

(Rs5.5billion), of thisthepaid-up amount is Rs. 424.6crore (Rs.4.2billion).In terms

ofequity share,the HDFC Groupholds 19.4%. Foreign Institutional Investors (FIIs)

have around 28% of the equity and about17.6% is held by the ADS Depository (in

respect of the bank's American Depository Shares(ADS) Issue). The bank has about

570,000 shareholders.

8
Equity share

1995 - 70 No. of equity shares issued to subscribers to the Memorandum & Articles

ofAssociation on 30th August 1994. On the same date 500,00,000 equity shares were

allotted to HDFC promoters. 509,20,000 shares were allotted to HDFC Employees

Welfare Trust and HDFC Bank Employees Welfare Trust on 22nd December, 1994.

- On 16.1.1995, 90,79,930 No.of equity shares were allotted to Jarrington Pte. Ltd.

Another 400,00,000 equity shares were allotted on private placement basis to

Natwest Group on 9.5.1995. 500,00,000 shares were allotted to the public on 9.5.95

(all were taken up).

DIVIDEND

Your Bank has had a consistent dividend policy that balances the dual objectives of

appropriately rewarding shareholders through dividends and retaining capital, in

order to maintain a healthy capital adequacy ratio to support future growth. It has

had a consistent with thedividend payout ratio ranging between 20% and 25%.

Consistent with this policy, and in recognition of the overall performance during this

financial year, your directors are pleased to recommend a dividend of Rs. 23.50 per

share for the financial year ended March 31, 2021, as Against Rs. 15 per share for

the

year ended March 31, 2021. This dividend shall be subject to tax on dividend to be

paid by the bank.

9
The KOPARGAON branch of HDFC BANK is located in the BANK ROAD district

of the MAHARASHTRA State at Bank Road Near Nehru Bhaji Market Kopargaon

Bank Road Kopargaon 423601. The IFSC Code of the branch is HDFC0001782 and

its MICR Code is MICR not provided.The working hours of the KOPARGAON

branch of HDFC BANK are Monday to Saturday from 10am to 4pm* while the 2nd

and the 4th Saturdays generally remain non-working days. One may call the

designated branch office too at its phone number 022-61606161.HDFC is the

number one private bank in India.

Bank Services

 Aadhaar Enrolment Centre

 Gold Loan Account

 Home Loan

 Lockers

 Demat Account opening

In Mumbai, September 26, 2021: HDFC Bank aims to expand its reach to two lakh

villages in the next 18-24 months. The bank plans this expansion through a

combination of branch network, business correspondents, business facilitators, CSC

partners, virtual relationship management and digital outreach platform.

10
 CHAPTER 2

COMPANY PROFILE

HDFC is India's premier housing finance company and enjoys an impeccable track

record in India as well as in international markets. Since its inception in 1977, the

Corporation has maintained a consistent and healthy growth in its operations to

remain the market leader in mortgages.

2020
Ranked India’s most valuable brand(for the seventh consecutive year)by Brand Z Report

Launch of HDFC Bank Millennia range of cards

First ever leadership change (new MD & CEO takes over)

First-of-its-kind product launch:

KGC-Shaurya cardfor armed forces
Launch of contactless, consent-based customer on-boarding via video KYC facility
Deploying mobile ATMs during the lockdown

Launched ‘The Healthy Life’programme with Apollo Hospitals for customers and employees

2021
Embarked on Project ‘Future Ready’

Pledged to become carbon neutral by 2031-32

2022
HDFC Bank and HDFC Ltd.announce transformational merger

11
12
BACKGROUND

Financial performance is the process of measuring how effective a company utilizes

its assets from primary mode of business to generate incomes. It also measures

organizations whole financial health over a particular period of time. Financial

performance of the organization deals with the financial strength and weakness of

bank, accurately establishing a relationship between the Balance Sheet and Income

Year of Establishment ESTD. 2017

Statement. This process helps to clearly understand the growth of long-term and

short term of bank. HDFC Bank Limited (Housing Development Finance

Corporation) was incorporated in August 1994 with its registered office in Mumbai,

India. HDFC Bank commenced operation as a scheduled commercial bank in

January 1995. HDFC was amongst the first to receive an approved from the Reserve

Bank of India (RBI) to set up a bank in the private sector. HDFC Bank comprises of

dynamic and enthusiastic term determined to accomplish the vision of becoming a

World-class Indian Bank. The

Bank has two subsidiary companies namely HDFC securities Ltd and HDFC

financial services Ltd. The bank deals with three major key business segments

namely retail banking services, wholesale banking services and treasury operation.

The retail banking segment serves retail customers through a branch network and

other delivery channels. These segments raises deposits from customers and makes

loans and provides other services with the help of specialist product groups to such

customers.

The wholesale banking segment provide loans on non-fund facilities and

13
transactions services to corporate public sector units, government bodies, financial

institutions, and medium scale enterprises. The treasury segment includes net

interest earnings on investments portfolio of the Bank. The Banks’ share is listed on

the Bombay Stock Exchange Ltd. and the National Stock Exchange of India Ltd.

HDFC Bank was listed on the Bombay Stock Exchange on 19 may 1995.

The Bank was listed on the National Stock Exchange on 8 November 1995. As of

June 30, 2021, the Bank’s distribution network was at 5,653branches and 16,291

ATMs / Cash Deposit& Withdrawal Machine (CDMs) across 2,917 cities / towns as

against 5,326 branches and 14,996 ATMs / CDMs across 2,825 cities / towns as on

June 30,2020. 50% of the branches are in semi-urban area. In addition the HDFC

bank have 15,912 business correspondents which are primarily manned by Common

Service Centers (CSC) as against 6,546 business correspondents an on June 30,2020

(source: HDFC Bank News Release) . HDFC Bank provides a number of products

and services including wholesale banking, treasury, auto loans, two wheeler loans,

credit cards and the various digital products. The total number of customers the bank

created to as on 31st March 2019 was over 4.90 core upfrom4.36 core in the previous

year. During the FY 2019 the bank added 316 banking outlets and taking the total to

5103 spread across2748 cities and towns.

During the quarter, the country was hit by a second wave of COVID -19 with a

significant surge in cases following the discovery of mutant corona virus

stains,business activities remain curtailed for almost two third of the quarter. These

14
disturbance lead to a decrease in loan organizations as well as efficiency in collection

efforts.

The first chapter deals with introduction which includes a brief background of HDFC

Bank, objective of the study, limitations of the study, research methods and the study

period. The second chapter deals with analysis and interpretation of various data

through ratio analysis collected from the internet and through interview. And the

third chapter deals with the findings, suggestions and conclusion drawn from overall

analysis of the study.The purpose of the study is to study the overall performance of

HDFC Bank and to know the profitability of the bank for the period 2019-2021.

Promoters

1. Housing Development Finance Corporation Limited (Indirect Foreign Holding)

– No of shares 432,307,917 i.e. 19.7%.

2. HDFC Investments Limited (Indirect Foreign Holding)

– No of shares 150,000,000 i.e. 6.87%.

3. HDFC Holding Limited (Indirect Foreign Holding)

– No of shares 5,000 i.e. 0%.

15
Mission Statement
Reposition the bank as the best Indian financial service group and take a strong
global commitment to customer satisfaction, shareholder and employee satisfaction.
Also play a leading role in the expansion & diversification of financial services with
a focus on development.
Vision Statement
Through high sustained earnings per share, maximize the share holder value.
Be a pioneer of development finance (housing) in the country.
To be a banking institution with mutual cultural attention and dedication.
A satisfying and excellent work environment offering continuous learning
opportunities.

Quality Policy

Best customer service.

Unbiased decisions in all dealings.

Be ready to take on a challenge and be innovative.

Team work.

Honest and disciplined in the policy provided by the system.

Quick Links

My Cards

FAQs on ATM

Interest Rates

Atal Pension Yojana

Pradhan Mantri Suraksha Bima Yojana

16
Pradhan Mantri Jeevan Jyoti Bima Yojana

Forms Center

Credit Card Tracker

Forex Rates

Phone Banking

Credit Cards Rewards Redemption Program

Savings Account

Savings Account Interest Rate

Fixed Deposit

Demat Account

FASTag

Recurring Deposit

Forex Card

Loan on Credit card

Loan against securities

Commercial Credit Card

Current Account

Public Provident Fund

Sukanya Samriddhi Yojana

17
 CHAPTER- 3

OBJECTIVE OF THE STUDY

1. To find out which facilities influence customers the most while selecting

HDFC Bank Kopergoan.

2. To find out the financial performance of the HDFC Bank, Kopargoan for the

year 2020-2022.

3. To analyze the financial performance of the Bank by using different ratios.

4. To study solvency ratio to measure the financial health of HDFC Bank

Kopargoan.

NEED OF THE STUDY

1. To attain knowledge on customer satisfaction.

2. To know the perception of customers towards HDFC Bank’s.

3. To study the satisfaction level of customers towards services and products

offered to them.

4. To study the problems faced by the customers.

5. To improve customer service.

18
SCOPE OF THE STUDY

In today’s scenario the Indian banking industry has grown by leaps and bounds and

various products and services have come into existence. Following are the finding

of the study:

1. The customers level of satisfaction.

2. The difficulties faced by the customers.

3. Perception of the customers towards the bank.

4. Preferred products and services of the customer out of the ones offered by the

bank.

LIMITATIONS OF THE STUDY

1.The study is only for the HDFC Bank confined to a particular location.

2.The present research is limited to only HDFC Bank and the data of only three

financial years i.e , 2020, 2021 and 2022, which may not give correct trend of the

result.

3.This study may not be extensive enough to cover all the ratios to be considered in

evaluating the financial soundness of the bank accurately.

19
 CHAPTER - 4

REVIEW OF LITERATURE

Several studies have been carried out by various researchers of India and abroad, to
find out the various service quality factors that lead to customer satisfaction. There
is a growing body of literature regarding the effect of quality service on the
functioning and success of the banks. Jain and Gupta, 2004 stated that a very little is
known about service quality perceptions in India, because research focus has
primarily been on developed countries. Before the year 1975, services were not
considered as part of the marketing field where marketing referred only to the efforts
exerted by a firm to promote packaged goods. Since then, a drastic change occurred
and the field of services marketing started to develop. Many researchers emphasized
that baking sector should develop and maintain long term relations with the customer
and it can avoid many problems and improve firm’s performance, and also pay
attention on their requirements leads to service quality may result in customer
retention.Mishra et al., 2010 mentioned that after the nationalization of the 18 banks,
competition was restricted and the banking sector was transformed from world
financial markets.
1. Reeves and Bednar (1994), defined service quality as excellence, value,
conformance to specifications and meeting or exceeding customers’ expectations.

2.Rajedran P (2019) analyzed the performance of HDFC Bank. Researcher

explained about HDFC bank’s history. Current ratio, cash position ratio, Debt equity
ratio, proprietary ratio was good. The study finds that part of the working capital of
the bank was financed by long-term funds. Researcher concluded with a result as
HDFC Bank was the largest private sector in India and it’s financial performance
was strong during the period study.’

20
3.Nandhini Thakuelr 2022), “The study is conducted on financial statement
analyses of HDFC Bank with the time period of 2020-2022. The tools used in this
study were ratio analysis, cash and fund flow analyses. The objective is to measure
the efficiency of various properties of bank. Researchers find that bank’s financial
performance was strong and suggested to providing more housing loans to the
development of the citizen of India.”

21
 CHAPTER - 5

RESEARCH METHODOLOGY

In the current scenario customer satisfaction is the major problem for the banking

industry. It is very difficult to identify the customer needs and wants. Due to which

serving the customer becomes difficult. It is also very difficult for marketers in

retaining current customers and attracting future customers. To have a large market

share attaining and retaining customers is important.

Research is completely based on a logical and systematic way. The study of the

overall questions explains with the help of scientific techniques, specific procedures,

collecting data from customer and analysing these with logical and scientific tools.

Appropriate information is important to conduct this research. Hence information

was collected from the customers and also from online relevant websites.

Research is completely based on a logical and systematic way. The study of the

overall questions explains with the help of scientific techniques, specific procedures,

collecting data from customer and analysing these with logical and scientific tools.

Appropriate information is important to conduct this research. Hence information

was collected from the customers and also from online relevant websites.

22
DATA COLLECTION METHOD
In this research, internal and external source of data are used. The raw materials were

collected through researchers. Collecting data from company records and document,

these are all internal data and other data are external.

 Primary Data -In this, questionnaire is used for collecting the data.Primary
data is collected by going interview with the Bank managers. The data was
collected through in-person and phone calls. While secondary data has been
collected from reports of HDFC Bank, journals, websites, and other published
information.
 Secondary Data-It is gathered from standard books, internal sources,
newspapers and magazines, also collecting data from external and internal
sources from the company annual reports, company additional aprofile and
company website.

23
RESEARCH QUESTION
1. What is the financial position of the HDFC bank Kopargoan for the period 2020-

2022?

2.What are the challenges and problems faced by the banking business – HDFC

Bank?

The study period for data analysis

The study covers three (3) Year data for 2020, 2021, and 2022 in HDFC Bank

Kopargoan.

24
 CHAPTER - 6

DATA ANALYSIS AND INTERPRETATION

This chapter deals with data analysis and interpretation. The outcome of the present

study yields significant findings of HDFC Bank. Some of the major ratio has been

evaluated and interpreted for the purpose of understanding the financial performance

of the bank. The following analysis shows the company’s performance during 2020

to 2022. This analysis will help to understand the HDFCs past and current financial

position.

SHORT TERM SOLVENCY RATIO

These ratios measure the liquidity position of a firm. Liquidity ratios show the

relationship between a firm’s cash and other current assets to its current liabilities.

A liquid asset is one that can be easily converted to cash without significant loss of

its original value. Converting assets, especially current assets such as inventory and

receivable to cash is the primary means by which a firm obtains the hinds needed to

pay its current bills. Liquidity ratio is particularly increasing to short-term creditors.

1. CURRENT RATIO

An indication of company’s ability to meet the short-term obligations, the higher the

ratio, the more liquid the company is. Current ratio establishes the relationship

between current assets and current liability. A current asset is calculated by dividing

the current assets by current liabilities. It measures the short term financial condition

of the bank. If the current assets of a company are more than twice the current

liabilities, then the company is generally considered to have good short-term

25
financial strength. The purpose of this current ratio is to give the bank the ability to

pay off its short-term. The ratio is considered desirable in the ratio 2:1.

Year 2022 2021 2020

CURRENT RATIO 0.94 0.39 0.39

In table it shows that current ratio was 0.94 in 2022. It was decreased to 0.39 in

2021 as well as 2022.This shows that current ratio was not observed in 2:1 during

any year.

2.LIQUID RATIO

Liquid ratio is also known as „quick‟ or„acid test ratio ’. Liquid test refers to assets

which are quickly convertible into cash. Current assets, other stock and prepaid

expenses are considered as quick assets. The quick ratio is calculated by deducting

inventories from current assets and then divide the remaining by current liabilities.

It measures the short-term financial condition of the bank.

Quick assets= Total Quick Assets /Total current liabilities

Year 2022 2021 2020

LIQUID RATIO 16.62 16.63 17.58

26
From the above table it is clear that, the company’s quick ratio is increasing in 2020,

it reaches to 17.58.

LONG-TERM SOLVENCY RATIO

3.Fixed Assets Turnover Ratio (FAT)

It is also called as Sales to Fixed Assets Ratio. It measures the efficient use of fixed
assets. This ratio is a measure of efficient use of fixed assets , it is calculated
as :Fixed Assets Turnover Ratio =Cost of goods sold or Sales / Net Fixed Assets.It
measures the efficiency and profit earning capacity of the business. Higher the ratio,
greater is the intensive utilization of fixed assets and a lower ratio shows under
utilization of fixed assets. This ratio has a special importance for manufacturing
concerns where investment in fixed assets is very high and the profitability is
significantly dependent on the utilization of these assets. It reveals how efficient
company is at generating sales from its existing fixed assets. A higher rate of fixed
assets turnover implies that management is using its fixed assets more effectively. A
higher FAT does not tell anything about a company’s ability to generate solid profits
or cash flows.

Year 2022 2021 2020

Fixed Assets Turnover 0.09 0.09 0.08

Ratio (FAT)

27
4.Debt Equity Ratio

These ratios show the relationship between long-term debt and shareholders fund.

Mainly it is calculated to assess the financial soundness of long-term policies and to

determine the relative shares of outsiders and shareholders.

A high debt equity shows the highest claims of creditors over assets of the firm

than those of shareholders. A high ratio reveals an unfavorable position of the

company. A low debt equity indicates lesser claim of creditors and a higher margin

is safe for them. The standard norm of this ratio 2:1 is satisfactory.

Year 2022 2021 2020

Debt Equity Ratio 7.31 7.57 7.09

This table explains debt equity relationship. In the year 2020, the ratio was 7.09
followed by this it was increased by 7.57 during the year 2021 then was decreased
by 7.31 during the year 2022.

5. RETURN ON ASSETS (ROA)

The ratio of operating income to total assets measures the return on total assets

(ROA) offers interest and taxes. It provides an idea of the overall investment

earned by the firms. Before other none operating it also measures profit per

28
 dollar of assets. It measures the productivity of assets regardless of how the

assets are financed by creditors or investors.

Year 2022 2021 2020

RETURN ON ASSETS 1.78 1.71 1.69

(ROA)

6. RETURN ON EQUITY
Return on Equity (ROE) is the bottom line measured for the shareholders,

measuring the profits earned for each rupee invested in business.

Year 2022 2021 2020

RETURN ON EQUITY 15.27 15.35 14.17

From the above table it is clear that return on equity ratio is higher in 2021 and

lowest in the year 2022.It is clear that return on equity is decreasing as well as

increasing every year.

29
BALANCE SHEET:

HDFC Bank balance sheet for the year 2020-2022

Balance sheet of HDFC Bank March 2022 March 2021 March 2020
(in crore ) (in crore) (in crore

EQUITIES AND

LIABILITIES

SHAREHOLDERS FUNDS

Equity Share Capital 103,200,000 104,600,000 10,23,00,000

Total Share Capital 103,200,000 104,600,000 10,23,00,000

Reserves and Surplus 10,50,000 10,23,000 10,20,000

Total Reserves and Surplus 10,50,000 10,23,000 10,20,000

Total shareholder‟s Funds 104,250,000 105,623,000 103,320,000

Deposits 52,800,850 50,624,250 49,439,300

Borrowings 1,25,650 1,31,500 1,20,200

Other Liabilities and Provisions 3,23,500 3,21,250 3,20,500

Total capital and Liabilities 15,75,00,000 15,67,00,000 15,32,00,000

ASSETS

30
 Cash and borrowings with 1,23,00,000 1,20,00,000 1,10,30,000

Reserve
Balances with Banks money at 5,24,500 5,21,800 5,19,500
call
and short notice
Investments 9,145,000 2,801,000 2,812,500

Advances 2,25,000 2,21,600 2,16,250

Fixed Assets 5,56,000 5,26,500 4,23,000

Other Assets 1,23,000,00 1,12,00,000 1,05,00,000

Total Assets 15,75,00,000 14,67,00,000 15,32,00,000

INTERPRETATION: The capital of bank increased but at a low rate. There is a

huge fluctuation in the increase in Reserve and Surplus.The bank is utilizing its

reserve and surplus in an effective manner. The investment has increased with a

high rate. There has been a consistent decline in fixed assets in respectively.

31
PROFIT AND LOSS ACCOUNT

HDFC Bank profit and loss account

Profit and loss account of HDFC Match 2022 March 2021 March 2020

Bank

INCOME

Interest / discount on advances / 94,834.54 91,787.88 77,544.19

bills

Income from investments 23,214.27 20,633.32 19,997.46

Interest on Balance with RBI & 2,341.25 1,828.93 635.70

other inter–bank funds

Others 468.17 562.52 794.70

Total interest earned 1,20,858.23 1,14,812.65 98,972.05

Other income 25,204.89 23,260.82 17,625.88

Total income 1,46,063.12 1,38,073.47 1,16,597.94

EXPENDITURE

Interest expenses 55,978.66 58,626.40 50,728.83

Payments to and Provision for 10,364.79 9,525.67 7,761.76

Employees

32
Depreciation 1,302.41 9,525.67 7,761.76

Operating expenses (excluding 21,055.42 19,976.01 17,217.51

Employee cost and Depreciation)

Total operating Expenses 32,722.63 9,833.15 26,119.37

Provision Towards Income Tax 11,644.77 9,833.15 12,129.61

Provision Towards deferred Tax 1,102.31 516.69 1,008.12

Other provisions and contingencies 15,702.85 12,142.39 7,550.08

Total provisions and contingencies 26,245.31 22,492.23 18,671.57

Total Expenditure 1,14,946.59 1,11,816.15 95,519.77

Net Profit / Loss for the year 31,116.53 26,257.32 21,078.17

Profit / Loss Brought Forward 57,492.40 49,223.30 40,453.42

Total Profit /Loss available for 88,608.93 75,480.62 61,531.58

appropriation

33
Cash flow statements of HDFC Bank for the year 2020-2022

Particular Match 2022 March March 2020

2019

Net profit / loss before 41,658.98 36,607.15 32,199.66

extraordinary items and Tax.

Net cash flow from operating 41,494.79 -16,689.78 56,054.67

Activities

Net cash used in investing -1,120.17 -1,104.92 -136.12

Activities

Cash flow used from financial -7,381.11 22,851.79 15,718.00

Activities

Foreign Exchange Gain/ Losses -141.83 213.99 95.39

Net increase/ decrease in Cash and 3,285.68 5,271.08 -41,567.44

Cash Equivalent

Cash and Cash equivalent at the 86,618.72 81,347.64 1,22,915.408

beginning of the year

Cash and Cash equivalent at the 1,19,470.40 86,618.72 81,347.64

end of the year

34
Quality Assets

Gross non-performance assets were at 1.47% of gross advances as on June 30, 2022,

(1.3% excluding NPAs in the agricultural segment) as against 1.32% as on March

31, 2022 (1.2% excluding NPAs in the agricultural segment) and 1.36% as on June

30, 2022 (1.2% excluding NPAs in the agricultural segment). Net non-performing

assets were at 0.48% of net advances as on June 30, 2022.The Bank held floating

provisions of Rs 1,451 crore and contingent provisions of Rs.6,596 crore as on June

30, 2022. Total provisions (comprising specific, floating,contingent and general

provisions) were 146% of the gross non-performing loans as on June 30, 2022..

35
 Chapter - 6

Findings and Suggestions

1.The bank focuses on understanding the needs of customers and offering them

superior products and services.

2. They focus on to create quality of customers and not quantity of customers.

current ratio indicates that banks liquidity and its repayment of debts are sound

during the period of study.

3.Debt equity ratio explains that creditors are safe during the study period and

compare 3 years increase or decrease ratio.

4. The Balance Sheet size as on March 2022 was Rs.17, 46,870.52 crore as against

Rs.15, 30,511.26 crore as on March 2021, a growth of 13.5%.

5. The total deposit as of 2022 were 13, 35,060.22, an increase of 13.2% over March

2021.

6. The advances as on March 2022 were 13, 35,060.22, an increase of 14.4% over

March 2021.

7. There has been a consistent decline in fixed assets in 2021 and 2020, 43,191.92

and 4,909.32 respectively.

8.The Bank’s net revenue (net interest income plus other income) increased from ₹1,

38,073.47 crore for the quarter ended March 2020 to ₹1, 46,063.12 crore for the

quarter ended March 2022.

9.Other income (non-interest revenue) at ₹25,204.89 crore was 27.0% of net revenue

for the quarter ended March 2022 and grew by 54.3% over 23,260.82 crore in the

36
corresponding quarter of the previous year.

10. Provisions and contingencies for the quarter ended March 2022 were Rs.26,

245.31 crore as against Rs.22, 492.23 crore for the quarter ended March 2021.

11. As mentioned earlier, the second wave of COVID-19 disrupted business

activities for close to two third of the quarter, leading to a decrease in the efficiency

in collecting efforts and a high level of provisions.

Suggestions

1. Better inventory management is required because it is consistently decreasing

which is an obstacle be in competition

2.There are market leader but their nearest competitor is very close with respect to

market share. So, it is necessary to utilize their resources in best way.

3.Empowering the employees and providing great self – service support.

4.Segment the client base and create personalized customer experiences.

37
 Chapter-7

Conclusion
HDFC Bank is a largest private sector bank in India. The research was on financial

performance of HDFC Bank for three years from 2019 -2021. The data has been

collected from annual reports of the bank and the web site. The data was analyzed

through ratio analysis. The research presented sought to know the financial viability

and financial health of HDFC Bank. For this tables and ratio analysis were used to

analyze and interpret the information obtained.

HDFC Bank deals with three key business segments:

Retail Banking Services

Wholesale Banking Services

Treasury operation

Retail banking business caters to; Salaries and professional borrowings, Individual

borrowings, Micro & small businesses, extremely small businesses like kirana

stores, Self-help Groups (SHGs), Non-resident Indians (NRIs). Wholesale banking

businesses focuses on the institutional customers such as; Large corporate including

MNCs, Public Sector Enterprises, Emerging corporate, Business banking / SMEs,

Infrastructural finance groups. Treasury is the custodian of the Bank’s cash/ liquid

assets and manages its investments in securities and other market instruments. It

manages the liquidity and interest rate risk on the balance sheet and is also

responsible for meeting statutory

38
 BIBLIOGRAPHY

BOOKS:
1. Jeffrey H. Gitomer, Customer satisfaction is worthless, Customer loyalty is
priceless, Bard press, 1998.
2. Ajit Rao, Subhash Chandra, The little book of big customer satisfaction
measurement,

ARTICLES:

Bowen, J. T., & Chen, S. L. (2001). The relationship between customer loyalty and
customer satisfaction. International journal of contemporary hospitality
management, 13(5), 213-217.Churchill Jr, G. A., & Surprenant, C. (1982). An
investigation into the determinants of customer satisfaction. Journal of marketing
research, 19(4), 491-504.

WEBLIOGRAPHY:
https://www.hdfcbank.com/
https://www.moneycontrol.com/india/stockpricequote/banks-private-
sector/hdfcbank/HDF01
https://www.themsrgroup.com/customer-experience-management/importance-of-
customer-
satisfaction-in-banking/
https://www.scribd.com/doc/26556623/Customer-satisfaction-in-Banks
https://economictimes.indiatimes.com/hdfc-bank-ltd/stocks/companyid-9195.cms

https://www.slideshare.net

39
 QUESTIONNAIRE
Dear respondents,

I Wagh Tanuja Pandit, student of M. Com 4th semester, SSGM, Kopargaon have

undertaken a project titled “Study on CUSTOMER SATISFACTION” at HDFC

Bank - Vijayapura. Hence, I request your kind co-operation by sparing your

precious time in answering the following questions and providing information.

This questionnaire is totally regarding collection of data to analyze the customers’

problems regarding HDFC Bank, to find out which product or service offered by

HDFC Bank the customers prefer the most and the satisfaction level of customer

towards HDFC Bank.

I - Demographic profile of the respondents:

Name: ________________________________

Phone Number:

Mail ID:

Qualification:

1. Gender of the respondent?

a) Male ( ) b) Female ( )

40
2. . Age group of the respondent?

a) Within 25 ( ) b) 25 to 40 ( ) c) 40 to 50 ( ) d) Above 50 ( )

3. Occupation of the respondent?

a) Student ( ) b) Business ( ) c) Employee ( ) d) None of the above ( )

4. Income of the respondent?

a) 0 to 25,000 ( ) b) 25,000 to 50,000 ( ) c) 50,000 to 75,000 ( ) d) More than

75,000 ( )

41