Hdfc Bank Ppt New
Content
Indian Banking Structure
Introduction To HDFC Bank
Current Ratio
Current ratio may be defined as the relationship between current assets and current liabilities. Current ratio = Current assets/current liabilities Interception :If the C.R. is less than 2 : 1, it indicates lack of liquidity and shortage of working capital. But a much higher ratio, even though it is beneficial to the short-term creditors, is not necessarily good for the company. A much higher ratio than 2 : 1 may indicate the poor investment policies of the management. So liquidity of Bank is satisfactory.
C.R
C.R
1.11 1.10 1.10 1.09 1.09 1.08 1.08 1.07 1.07 1.06 1.06
1.10
1.08 C.R
1.07
2010
2011 Years
2012
Operating ratio= (Operating cost / Net income )*100 Interpretation :Operating Ratio is a measurement of the efficiency and profitability of the business enterprise. The ratio indicate the extent of sales that is absorbed by the cost of goods sold and operating expenses. Lower the operating ratio, the better it is, because it will leave higher margin of profit on sales.
Operating ratio(%) 50.5
50
50
OR
49.5
49
49
Operating ratio(%)
48.5
48
48 47.5 47
2010
2005-06
2011
2006-07 Years
2012
2007-08
Return on gross capital employed=(Net profit / Gross capital employed) * 100
Gross capital employed= fixed assets + current assets Interpretation :Since profit is the overall objective of a business enterprise, this ratio is a barometer of the overall performance of the enterprise. It measures how efficiently the capital employed in the business is being used.
Return on gross capital employed
Return on gross capital employed(%)
29 28 28 27 26 26
Return on gross capital employed(%)
25 24 24 23
22 2010
2011 Years
2012
Return on shareholders =(Net profit / Shareholders funds) *100
Interpretation :This Ratio indicates what amount of return has been given to the Share holders of the firm which help in building the good will firm.
Return on Shareholders funds
Return on shareholders(%) 20 16.43
17.74 13.83
15
Return on shareholders(%)
10 5 0
2010
2011
2012
2005-06
2006-07
2007-08
Years
Net profit ratio = (Net profit / Net income) * 100 Interpretation :This Ratio measures the rate of net profit earned on sales. It helps in determining the overall efficiency of the business operations. An increase in the ratio over the previous year shows improvement in the overall efficiency and profitability of the business.
Net profit ratio(%)
25 20.58
NPR
20
17
15.72
15 Net profit ratio(%)
10 5 0 2010
2011
Years
2012
Return on net capital employed = (Net profit / Net capital employed) * 100 Net capital employed = Total assets- Current liability Interpretation :This Ratio indicates how well the Capital employed is being use in business. Even the performance of two Dissimilar firms may be compared with the help of this Ratio.
Return on net capital employed(%)
Return on Net capital employed
32
31
31 30 29
29 28
28 27 26
2010
2005-06
2011
2006-07 Years
2012
2007-08
Return on net capital employed(%)
EPS = Net profit after interest, tax & preference dividend / No. of equity shares
Interpretation :This ratio is helpful in the determination of the market price of the equity share of the company. The ratio is also helpful in estimating the capacity of the company to declare dividends on equity shares.
34.6 29.08 22.6 22 18 13.8
4.1
5.9
8.6
10
11
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
DPS = Dividend paid to equity shareholders / No. of equity shares Interpretation :This Ratio indicates how much profit has been given in hand to the equity share holders. This represents higher the ratio more is the good will of the firm.
8.5 7 5.5 5 4.5
1.3
1.6
2
2.5
3
3.5
Open
686.00
High Open High Low
Vol
687.50
52 Week
686.00
Low Prev. Close
Prev. Close
687.50 675.75 686.50
1932753
Vol
675.75
52 Week
686.50
52 Week
727.30 1932753
52 Week
727.30 528.00
Bid
Offer
Price
676.00
676.10
Quantity
498
28
528.00
• Vaibhav Agrawal of Angel broking told CNBC-TV18 " Given the current environment HDFC bank still remains one of the better stock to hold. This kind of earnings growth is hard to match in such a large cap". • Ashish of Fortune Equity Broker told CNBC-TV18 "overall banking looks very strong particularly HDFC Bank and Kotak Mahindra Bank. Seeing the current scenario and the position HDFC Bank is in there is a possibility that HDFC Bank will cross it's all time high. •Ankit Vora of D.P.Vora Securities told CNBC-TV18 "Then investors can hold on to HDFC Bank. It's performance will be better than the general banking sector performance of India."
•Ajay Bhodke of Prabhudas Liladhar told CNBC-TV18 "I would bank on HDFC Bank on open interest basis and the way it has performed in the current scenario."
Introduction To HDFC Bank
Current Ratio
Current ratio may be defined as the relationship between current assets and current liabilities. Current ratio = Current assets/current liabilities Interception :If the C.R. is less than 2 : 1, it indicates lack of liquidity and shortage of working capital. But a much higher ratio, even though it is beneficial to the short-term creditors, is not necessarily good for the company. A much higher ratio than 2 : 1 may indicate the poor investment policies of the management. So liquidity of Bank is satisfactory.
C.R
C.R
1.11 1.10 1.10 1.09 1.09 1.08 1.08 1.07 1.07 1.06 1.06
1.10
1.08 C.R
1.07
2010
2011 Years
2012
Operating ratio= (Operating cost / Net income )*100 Interpretation :Operating Ratio is a measurement of the efficiency and profitability of the business enterprise. The ratio indicate the extent of sales that is absorbed by the cost of goods sold and operating expenses. Lower the operating ratio, the better it is, because it will leave higher margin of profit on sales.
Operating ratio(%) 50.5
50
50
OR
49.5
49
49
Operating ratio(%)
48.5
48
48 47.5 47
2010
2005-06
2011
2006-07 Years
2012
2007-08
Return on gross capital employed=(Net profit / Gross capital employed) * 100
Gross capital employed= fixed assets + current assets Interpretation :Since profit is the overall objective of a business enterprise, this ratio is a barometer of the overall performance of the enterprise. It measures how efficiently the capital employed in the business is being used.
Return on gross capital employed
Return on gross capital employed(%)
29 28 28 27 26 26
Return on gross capital employed(%)
25 24 24 23
22 2010
2011 Years
2012
Return on shareholders =(Net profit / Shareholders funds) *100
Interpretation :This Ratio indicates what amount of return has been given to the Share holders of the firm which help in building the good will firm.
Return on Shareholders funds
Return on shareholders(%) 20 16.43
17.74 13.83
15
Return on shareholders(%)
10 5 0
2010
2011
2012
2005-06
2006-07
2007-08
Years
Net profit ratio = (Net profit / Net income) * 100 Interpretation :This Ratio measures the rate of net profit earned on sales. It helps in determining the overall efficiency of the business operations. An increase in the ratio over the previous year shows improvement in the overall efficiency and profitability of the business.
Net profit ratio(%)
25 20.58
NPR
20
17
15.72
15 Net profit ratio(%)
10 5 0 2010
2011
Years
2012
Return on net capital employed = (Net profit / Net capital employed) * 100 Net capital employed = Total assets- Current liability Interpretation :This Ratio indicates how well the Capital employed is being use in business. Even the performance of two Dissimilar firms may be compared with the help of this Ratio.
Return on net capital employed(%)
Return on Net capital employed
32
31
31 30 29
29 28
28 27 26
2010
2005-06
2011
2006-07 Years
2012
2007-08
Return on net capital employed(%)
EPS = Net profit after interest, tax & preference dividend / No. of equity shares
Interpretation :This ratio is helpful in the determination of the market price of the equity share of the company. The ratio is also helpful in estimating the capacity of the company to declare dividends on equity shares.
34.6 29.08 22.6 22 18 13.8
4.1
5.9
8.6
10
11
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
DPS = Dividend paid to equity shareholders / No. of equity shares Interpretation :This Ratio indicates how much profit has been given in hand to the equity share holders. This represents higher the ratio more is the good will of the firm.
8.5 7 5.5 5 4.5
1.3
1.6
2
2.5
3
3.5
Open
686.00
High Open High Low
Vol
687.50
52 Week
686.00
Low Prev. Close
Prev. Close
687.50 675.75 686.50
1932753
Vol
675.75
52 Week
686.50
52 Week
727.30 1932753
52 Week
727.30 528.00
Bid
Offer
Price
676.00
676.10
Quantity
498
28
528.00
• Vaibhav Agrawal of Angel broking told CNBC-TV18 " Given the current environment HDFC bank still remains one of the better stock to hold. This kind of earnings growth is hard to match in such a large cap". • Ashish of Fortune Equity Broker told CNBC-TV18 "overall banking looks very strong particularly HDFC Bank and Kotak Mahindra Bank. Seeing the current scenario and the position HDFC Bank is in there is a possibility that HDFC Bank will cross it's all time high. •Ankit Vora of D.P.Vora Securities told CNBC-TV18 "Then investors can hold on to HDFC Bank. It's performance will be better than the general banking sector performance of India."
•Ajay Bhodke of Prabhudas Liladhar told CNBC-TV18 "I would bank on HDFC Bank on open interest basis and the way it has performed in the current scenario."
