Hdfc Bank Case Study

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7. Growth of Profit:- The table -7 shows the total growth of profit in PNB and HDFC bank. TABLE – 7 Growth of Profit in Punjab National Bank and HDFC Bank (In Crores) YEARS PUNJADB NATIONAL BANK HDFC BANK PROFIT CHANGE PROFIT CHANGE 2005-06 1,439.31 ….. 1,115.94 ….. 2006-07 1,540.08 7.00% 1,382.54 23.89% 2007-08 2,048.76 33.03% 1,590.18 15.02% 2008-09 3,090.88 50.87% 2,244.94 41.18% 2009-10 3,905.36 26.35% 2,948.70 31.35% 2010-11 4,433.50 13.52% 3,926.40…show more content…
As per table-7, it can be observed that the net profit of PNB is 1439.31 crores in 2005-06 and it rose to 3061.58 crores in 2014-15, but the growth of HDFC is much higher than PNB as HDFC has a net profit of 1115.94 crores in 2005-06 which rose to 10215.92 in 2014-15. Net profit growth rate of PNB and HDFC implies that the performance of HDFC is better than PNB in the corresponding years. In 2013-14 & 2014-15 PNB has shown a negative sign in the profit which is -29.60 and -8.41 respectively, as compared to HDFC it is very low. This implies that the HDFC bank is very efficient, as it has managed to reduce its cost and increase its profit. 8. Net profit Margin:- Net Profit Margin reveals the financial results of the business activity and efficiency of management in operation. The table - 8 shows the net profit margin in PNB and HDFC during period 2005-06 to 2014-15. TABLE – 8 Net Profit Margin in Punjab National Bank and HDFC Bank (In Percent) YEARS PUNJAB NATIONAL BANK HDFC BANK % % 2005-06 14.50 15.55 2006-07 12.53 13.57 2007-08 12.86…show more content…
Current and Saving Accounts (CASA) have given the drive for strong accretions of the deposits. The study of Total Advances of the both the banks have experienced at decreasing trend. Due to slow down in the bank credit which is certainly a concern for the banks. The growth in the Total Income of bank, under study shown interesting results. The growth in the income of PNB is more than the growth rate in the total income of HDFC bank. The major contributing source of growth is interest income. With regard to Total Expenditure it is obvious to note that the private bank i.e., HDFC is more efficient to managing the expenditure. Again growths in the interest expenditure the major contributing factor in the total expenditure of these banks. This is evident from the ratio of interest expenses to total expenses. It is relevant to note that the interest expenditure in the case of public sector bank is higher than the private sector

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