Вы находитесь на странице: 1из 112

Summer Internship Project

A Comprehensive Study of the Financial Analysis of HDFC Bank

Submitted in partial fulfillment of the


Requirements for the award of Masters of Business Administration
&Post Graduate Program in Management

Submitted to: Submitted by:


Prof. Sanjiv Dhir Abhirama B Sarepaka
Faculty Enrolment No: A30701913063
Amity Global Business School MBA Batch 2013-2015
ACKNOWLEDGMENT

To merely say thank you is not enough. There is always some individual who comes to
your aid as a messiah and brings you into the light of knowledge and wisdom. They say
that all the people who help you in your quest for knowledge are like bricks and concrete
in a wall. They support you in all your endeavors big and small.

I am forever indebted to Mr. Shiraz Malik, Branch Manager, HDFC Bank Sector 9,
Chandigarh for allowing me to do my summer internship in his organization. His
sustained support and encouragement was the guiding light behind my efforts. I am also in
debt to my mentors Mr. Shiraz Malik, Branch Manager and Ms. Raman Mann, Branch
Operations Manager, HDFC Bank Sector 9, Chandigarh for helping me clear the
confusion that clouded my judgment and guide me through the various phases of the
internship project. Their persistence with me helped me attain knowledge and
understanding with tenacity.

Teachers are the guide who take us on the quest for knowledge and wisdom. Dr. Shivali
Dhingra, Director, Amity Global Business School and Prof. Sanjiv Dhir have been the
lighthouse in a dark sea of ignorance. They have stood firm and helped me navigate the
difficult waters of ignorance to reach the shores of knowledge and wisdom. I am honored
to have such mentors who have taken the pains to come to my rescue whenever I was out
of my depths.

Finally, the support of my parents, friends and colleagues and everyone who are too many
to be named has always held me in good stead in my times of tribulations. I draw my sense
of strength, resilience, responsibility and dedication to my work from them. I cannot thank
them enough for all the support they have extended to me.

Abhirama B Sarepaka

Abhirama B Sarepaka Page 2 of 112


List of Abbreviations
S. No. Abbreviation Unabbreviated form
1. ABM Assistant Branch Manager
2. ADM Asset Desk Management
3. ATAT Average Total Asset Turnover
4. ATM Automatic Teller Machine
5. AU Asset Utilization
6. B2C Business to Customer
7. BSE Bombay Stock Exchange
8. c/f Carry forward
9. EM Equity Multiplier
10. FDI Foreign Direct Investment
11. Govt. Government
12. HDFC Home Development Finance Corporation
Himachal Pradesh State Cooperative Agricultural and
13. HPSCARDB
Rural Development Bank
International Journal of Accounting and Financial
14. IJAFMR
Management Research
15. KDCC Karimnagar District Central Cooperative Bank
16. NPM Net Profit Margin
17. NRI Non-Resident Indian
18. NSE National Stock Exchange
19. P&L A/C Profit and Loss Account
Primary Cooperative Agricultural and Rural
20. PCARDB
Development Bank
21. PM Profit Margin
22. PNB Punjab National Bank
23. POS Point of Sale
24. RBI Reserve Bank of India
25. ROA Returns of average Assets

Abhirama B Sarepaka Page 3 of 112


26. ROE Returns on average Equity
27. Rs. Rupees
28. SBI State Bank of India
29. SWOT Strengths, Weaknesses, Opportunities and Threats
30. w.e.f. With effect from

Abhirama B Sarepaka Page 4 of 112


List of Tables
Table 1. Balance Sheet for HDFC Bank from 2008-09 till 2012-13 (values in crores)
Table 2. Income Statement for the financial years 2008-09 until 2012-13
Table 3. Current Ratio Values for the financial years 2008-09 until 2012-13
Liquid Assets to Total Assets Ratio for the Financial Years 2008-09 until
Table 4.
2012-13.
Table 5. Acid Test Ratio for the financial years ending March 2009 until March 2013.
Credit to Deposit Ratio for HDFC Bank for the Financial Years 2008-09
Table 6.
until 2012-2013.
Debt Equity Ratio for HDFC Bank for the Financial Years 2008-09 until
Table 7.
2012-2013.
Indebtedness Ratio for HDFC Bank for the Financial Years 2008-09 until
Table 8.
2012-2013.
Fixed Assets to Net Worth Ratio for HDFC Bank for the Financial Years
Table 9.
2008-09 until 2012-2013.
Table 10. Net Worth for HDFC Bank for the Financial Years 2008-09 until 2012-2013.
Net Capital Ratio for HDFC Bank for the Financial Years 2008-09 until
Table 11.
2012-2013.
Returns on Equity Ratio for HDFC Bank for the Financial Years 2008-09
Table 12.
until 2012-2013.
Net Profit to Total Assets Ratio for HDFC Bank for the Financial Years
Table 13.
2008-09 until 2012-2013.
Net Profit to Net Worth Ratio for HDFC Bank for the Financial Years 2008-
Table 14.
09 until 2012-2013.
Net Profit to Fixed Assets Ratio for HDFC Bank for the Financial Years
Table 15.
2008-09 until 2012-2013.
Gross Ratio for HDFC Bank for the Financial Years 2008-09 until 2012-
Table 16.
2013.
Operating Ratio for HDFC Bank for the Financial Years 2008-09 until 2012-
Table 17.
2013.
Management Ratio for HDFC Bank for the Financial Years 2008-09 until
Table 18.
2012-2013.
Establishment Ratio for HDFC Bank for the Financial Years 2008-09 until
Table 19.
2012-2013.
Values for HDFC Bank for DuPont Analysis for the Financial Years 2008-
Table 20.
09 until 2012-2013.
Table 21. DuPont Analysis Figures for the Financial Years 2008-09 until 2012-2013.
Average Time per transaction of two counters on three consecutive days as
Table 22.
part of Time Motion Studies.
Cumulative Average Time per transaction for each counter as part of Time
Table 23.
Motion Studies.

Abhirama B Sarepaka Page 5 of 112


Footfall on 5 working days during business hours at the Counter: Tellers and
Table 24.
the respective Daily total footfall.
Footfall on 5 working days during business hours at the Counter: Welcome
Table 25.
Desk and the respective Daily total footfall.
Footfall on 5 working days during business hours at the Counter: Asset Desk
Table 26.
Management and the respective Daily total footfall.
Footfall on 5 working days during business hours at the Counter: Assistant
Table 27.
Branch Manager and the respective Daily total footfall.
Footfall on 5 working days during business hours at the Counter: New
Table 28.
Accounts and the respective Daily total footfall.
Footfall on 5 working days during business hours at the Counter: Current
Table 29.
Accounts and the respective Daily total footfall.
Footfall on 5 working days during business hours at the Counter: PB
Table 30.
Authorizer-1 and the respective Daily total footfall.
Footfall on 5 working days during business hours at the Counter: Locker
Table 31.
Operations and the respective Daily total footfall.
Footfall on 5 working days during business hours at the Counter: PB
Table 32.
Authorizer-2 and the respective Daily total footfall.
Footfall on 5 working days during business hours at the Counter:
Table 33.
Relationship Manager-1 and the respective Daily total footfall.
Footfall on 5 working days during business hours at the Counter:
Table 34.
Relationship Manager-2 and the respective Daily total footfall.
Footfall on 5 working days during business hours at the Counter:
Table 35.
Relationship Manager-3 and the respective Daily total footfall.
Footfall on 5 working days during business hours at the Counter: Forex-1
Table 36.
and the respective Daily total footfall.
Footfall on 5 working days during business hours at the Counter: Forex-2
Table 37.
and the respective Daily total footfall.
Footfall on 5 working days during business hours at the Counter: Forex-3
Table 38.
and the respective Daily total footfall.
Footfall on 5 working days during business hours at the Counter: Forex
Table 39.
Teller and the respective Daily total footfall.
Table Individual Time taken for each transaction at 2 counters on three days for
Annex-1. Cash Deposits.
Table Individual Time taken for each transaction at 2 counters on three days for
Annex-2. Cheques Deposits.
Table Individual Time taken for each transaction at 2 counters on three days for
Annex-3. Cheques Encashment.

Abhirama B Sarepaka Page 6 of 112


List of Figures
Figure 1. Current Ratio Values for the financial years 2008-09 until 2012-13
Liquid Assets to Total Assets Ratio for the Financial Years 2008-09 until
Figure 2.
2012-13.
Acid Test Ratio for the financial years ending March 2009 until March
Figure 3.
2013.
Credit to Deposit Ratio for HDFC Bank for the Financial Years 2008-09
Figure 4.
until 2012-2013.
Debt Equity Ratio for HDFC Bank for the Financial Years 2008-09 until
Figure 5.
2012-2013.
Indebtedness Ratio for HDFC Bank for the Financial Years 2008-09 until
Figure 6.
2012-2013.
Fixed Assets to Net Worth Ratio for HDFC Bank for the Financial Years
Figure 7.
2008-09 until 2012-2013.
Net Worth for HDFC Bank for the Financial Years 2008-09 until 2012-
Figure 8.
2013.
Net Capital Ratio for HDFC Bank for the Financial Years 2008-09 until
Figure 9.
2012-2013.
Returns on Equity Ratio for HDFC Bank for the Financial Years 2008-09
Figure 10.
until 2012-2013.
Net Profit to Total Assets Ratio for HDFC Bank for the Financial Years
Figure 11.
2008-09 until 2012-2013.
Net Profit to Net Worth Ratio for HDFC Bank for the Financial Years 2008-
Figure 12.
09 until 2012-2013.
Net Profit to Fixed Assets Ratio for HDFC Bank for the Financial Years
Figure 13.
2008-09 until 2012-2013.
Gross Ratio for HDFC Bank for the Financial Years 2008-09 until 2012-
Figure 14.
2013.
Operating Ratio for HDFC Bank for the Financial Years 2008-09 until
Figure 15.
2012-2013.
Management Ratio for HDFC Bank for the Financial Years 2008-09 until
Figure 16.
2012-2013.
Establishment Ratio for HDFC Bank for the Financial Years 2008-09 until
Figure 17.
2012-2013.
Values for HDFC Bank for DuPont Analysis for the Financial Years 2008-
Figure 18.
09 until 2012-2013.
Graphical representation of the average time for cash deposits at two
Figure 19.
counters as part of Time Motion Studies.
Graphical representation of the average time for Cheques Deposits at two
Figure 20.
counters as part of Time Motion Studies.
Graphical representation of the average time for Cheques Encashment at
Figure 21.
two counters as part of Time Motion Studies.
Graphical representation of the Footfall at the Teller counters during
Figure 22.
business hours on 5 working days and categorization as per date.

Abhirama B Sarepaka Page 7 of 112


Graphical representation of the Footfall at the Teller counters during
Figure 23. business hours on 5 working days and categorization as per hour of
operation.
Graphical representation of the Footfall at the Welcome Desk counter
Figure 24.
during business hours on 5 working days and categorization as per Date.
Graphical representation of the Footfall at the Welcome Desk counter
Figure 25. during business hours on 5 working days and categorization as per hour of
operation.
Graphical representation of the Footfall at the Asset Desk Management
Figure 26. counter during business hours on 5 working days and categorization as per
Date.
Graphical representation of the Footfall at the Asset Desk Management
Figure 27. counter during business hours on 5 working days and categorization as per
hour of operation.
Graphical representation of the Footfall at the Assistant Branch Manager
Figure 28. counter during business hours on 5 working days and categorization as per
Date.
Graphical representation of the Footfall at the Assistant Branch Manager
Figure 29. counter during business hours on 5 working days and categorization as per
hour of operation.
Graphical representation of the Footfall at the New Account counter during
Figure 30.
business hours on 5 working days and categorization as per Date.
Graphical representation of the Footfall at the New Account counter during
Figure 31. business hours on 5 working days and categorization as per hour of
operation.
Graphical representation of the Footfall at the Current Accounts counter
Figure 32.
during business hours on 5 working days and categorization as per Date.
Graphical representation of the Footfall at the Current Accounts counter
Figure 33. during business hours on 5 working days and categorization as per hour of
operation.
Graphical representation of the Footfall at the PB Authorizer-1 counter
Figure 34.
during business hours on 5 working days and categorization as per Date.
Graphical representation of the Footfall at the PB Authorizer-1 counter
Figure 35. during business hours on 5 working days and categorization as per hour of
operation.
Graphical representation of the Footfall at the Locker Operations counter
Figure 36.
during business hours on 5 working days and categorization as per Date.
Graphical representation of the Footfall at the Locker Operations counter
Figure 37. during business hours on 5 working days and categorization as per hour of
operation.
Graphical representation of the Footfall at the PB Authorizer-2 counter
Figure 38.
during business hours on 5 working days and categorization as per Date.
Graphical representation of the Footfall at the PB Authorizer-2 counter
Figure 39. during business hours on 5 working days and categorization as per hour of
operation.

Abhirama B Sarepaka Page 8 of 112


Graphical representation of the Footfall at the Relationship Manager-1
Figure 40. counter during business hours on 5 working days and categorization as per
Date.
Graphical representation of the Footfall at the Relationship Manager-1
Figure 41. counter during business hours on 5 working days and categorization as per
hour of operation.
Graphical representation of the Footfall at the Relationship Manager-2
Figure 42. counter during business hours on 5 working days and categorization as per
Date.
Graphical representation of the Footfall at the Relationship Manager-2
Figure 43. counter during business hours on 5 working days and categorization as per
hour of operation.
Graphical representation of the Footfall at the Relationship Manager-3
Figure 44. counter during business hours on 5 working days and categorization as per
Date.
Graphical representation of the Footfall at the Relationship Manager-3
Figure 45. counter during business hours on 5 working days and categorization as per
hour of operation.
Graphical representation of the Footfall at the Forex-1 counter during
Figure 46.
business hours on 5 working days and categorization as per Date.
Graphical representation of the Footfall at the Forex-1 counter during
Figure 47. business hours on 5 working days and categorization as per hour of
operation
Graphical representation of the Footfall at the Forex-2 counter during
Figure 48.
business hours on 5 working days and categorization as per Date.
Graphical representation of the Footfall at the Forex-2 counter during
Figure 49. business hours on 5 working days and categorization as per hour of
operation.
Graphical representation of the Footfall at the Forex-3 counter during
Figure 50.
business hours on 5 working days and categorization as per Date.
Graphical representation of the Footfall at the Forex-3 counter during
Figure 51. business hours on 5 working days and categorization as per hour of
operation.
Graphical representation of the Footfall at the Forex Teller counter during
Figure 52.
business hours on 5 working days and categorization as per Date.
Graphical representation of the Footfall at the Forex Teller counter during
Figure 53. business hours on 5 working days and categorization as per hour of
operation.
Figure Individual Time taken for each transaction at Counter-A on three days for
Annex-1. Cash Deposits.
Figure Individual Time taken for each transaction at Counter-B on three days for
Annex-2. Cash Deposits.
Figure Individual Time taken for each transaction at Counter-A on three days for
Annex-3. Cheques Deposits.
Figure Individual Time taken for each transaction at Counter-B on three days for
Annex-4. Cheques Deposits.

Abhirama B Sarepaka Page 9 of 112


Figure Individual Time taken for each transaction at Counter-A on three days for
Annex-5. Cheques Encashment.
Figure Individual Time taken for each transaction at Counter-B on three days for
Annex-6. Cheques Encashment.

Abhirama B Sarepaka Page 10 of 112


Table of Contents Page
List of Abbreviations ..................................................................................................................... 3
List of Tables.................................................................................................................................. 5
List of Figures ................................................................................................................................ 7
INTRODUCTION OF BANKING ............................................................................................ 14
MEANING AND DEFINITION: ........................................................................................... 14
ORIGIN OF WORD BANK: .................................................................................................. 15
ORIGIN OF BANKING: ........................................................................................................ 15
BANKING SYSTEM IN INDIA ............................................................................................ 15
A HISTORICAL PERSPECTIVE: ....................................................................................... 15
FUNCTIONS OF BANKS .......................................................................................................... 16
PRIMARY FUNCTIONS ....................................................................................................... 16
SECONDARY FUNCTIONS ................................................................................................. 17
UTILITY FUNCTIONS: ........................................................................................................ 17
i) CLASSIFICATION ON BASIS OF OWNERSHIP ..................................................... 17
1. PUBLIC SECTOR BANK .......................................................................................... 17
2. PRIVATE SECTOR BANKS ..................................................................................... 18
3. CO-OPERATIVE BANKS ......................................................................................... 18
ii) CLASSIFICATION IN ACCORDANCE TO RBI ACT 1935 .................................... 18
1. SCHEDULED BANK .................................................................................................. 19
2. NON-SCHEDULED BANK ....................................................................................... 19
iii) CLASSIFICATION ACCORDING TO FUNCTION .............................................. 19
1. COMMERCIAL BANKS ........................................................................................... 19
2. SAVING BANKS ......................................................................................................... 19
3. FOREIGN EXCHANGE BANKS.............................................................................. 20
4. INDUSTRIAL BANKS ............................................................................................... 20
5. INDIGENIOUS BANKS ............................................................................................. 20
6. CENTRAL BANK ....................................................................................................... 20
7. AGRICULTURAL BANK .......................................................................................... 21
PROFILE OF THE ORGANIZATION .................................................................................... 22
INTRODUCTION ................................................................................................................... 22
PROMOTOR ........................................................................................................................... 22
BUSINESS FOCUS ................................................................................................................. 22
TIMES BANKS AMALGAMATION ................................................................................... 23
DISTRIBUTION NETWORK ............................................................................................... 23
TECHNOLOGY ...................................................................................................................... 23
BUSINESS PROFILE ............................................................................................................. 24
1. WHOLESALE BANKING SERVICES .................................................................... 24
2. RETAIL BANKING SERVICES: ............................................................................. 24
3. TREASURY OPERATIONS ...................................................................................... 25
SWOT ANALYSIS OF HDFC BANK ...................................................................................... 27
STRENGHS: ............................................................................................................................ 27
WEAKNESS: ........................................................................................................................... 27
OPPORTUNITY: .................................................................................................................... 28
THREATS:............................................................................................................................... 28
JUSTIFICATION OF THE STUDY ..................................................................................... 28

Abhirama B Sarepaka Page 11 of 112


OBJECTIVE OF THE STUDY ................................................................................................. 30
INTRODUCTION OF THE TOPIC ......................................................................................... 31
MEANING OF FINANCIAL STATEMENTS:.................................................................... 31
MEANING OF FINANCIAL ANALYSIS ............................................................................ 31
TYPES OF FINANCIAL ANALYSIS ................................................................................... 32
FUNCTIONS OF FINANCE DEPARTMENT .................................................................... 33
METHODS OF FINANCIAL ANALYSIS ........................................................................... 33
COMPARATIVE FINANCIAL STATEMENTS................................................................. 34
PURPOSE OR UTILITY OR IMPORTANCE OF COMPARATIVE STATEMENTS.. 34
FORMS OF PRESENTING COMPARATIVE STATEMENTS ....................................... 34
COMPARATIVE BALANCE SHEET.................................................................................. 34
ADVANTAGES OF COMPARATIVE BALANCE SHEET .............................................. 34
COMPARATIVE PROFIT & LOSS ACCOUNT................................................................ 35
TREND ANALYSIS ................................................................................................................ 35
RATIO ANALYSIS ................................................................................................................. 35
MEANING: .......................................................................................................................... 35
TYPES OF RATIOS ........................................................................................................... 35
OBJECTS AND ADVANTAGES OR USES OF RATIO ANALYSIS............................... 35
LIMITATION OF RATIO ANALYSIS ................................................................................ 36
CLASSIFICATION OF RATIOS .......................................................................................... 36
CASH-FLOW STATEMENT ................................................................................................ 37
REVIEW OF LITERATURE .................................................................................................... 38
RESEARCH METHODOLOGY ............................................................................................... 42
TYPES OF RESEARCH DESIGN: ....................................................................................... 44
DATA COLLECTIONS ......................................................................................................... 45
DATA .................................................................................................................................... 46
DATA SOURCES ................................................................................................................ 46
DATA PERIOD ................................................................................................................... 46
TOOLS USED...................................................................................................................... 46
DATA ANALYSIS & INTERPRETATION ............................................................................. 50
CURRENT RATIO: ................................................................................................................ 53
LIQUID ASSETS TO TOTAL ASSETS RATIO ................................................................. 54
ACID TEST RATIO ............................................................................................................... 55
SOLVENCY RATIOS ............................................................................................................ 58
DEBT-EQUITY RATIO ......................................................................................................... 58
INDEBTEDNESS RATIO ...................................................................................................... 59
FIXED ASSETS TO NET-WORTH RATIO........................................................................ 60
NET WORTH .......................................................................................................................... 62
NET CAPITAL RATIO: ........................................................................................................ 63
PROFITABILITY RATIOS ................................................................................................... 64
NET PROFIT TO TOTAL ASSETS RATIO ....................................................................... 65
NET PROFIT TO NET WORTH RATIO ............................................................................ 66
NET PROFIT TO FIXED ASSETS RATIO ......................................................................... 67
EFFICIENCY RATIOS .......................................................................................................... 68
GROSS RATIO ....................................................................................................................... 69
OPERATING RATIO ............................................................................................................. 70
MANAGEMENT RATIO ....................................................................................................... 71

Abhirama B Sarepaka Page 12 of 112


ESTABLISHMENT RATIO .................................................................................................. 72
DUPONT ANALYSIS ............................................................................................................. 73
TIME AND MOTION STUDIES............................................................................................... 39
MOTION STUDY ................................................................................................................... 39
TIME STUDY .......................................................................................................................... 39
TECHNIQUES OF MOTION AND TIME STUDY ............................................................ 39
RELATIONSHIP AND UTILIZATION OF MOTION AND TIME STUDY .................. 40
RESEARCH METHODOLOGY FOR TIME MOTION STUDIES .................................. 47
METHODOLOGY FRAMEWORK ................................................................................. 47
RESEARCH DESIGN......................................................................................................... 47
VARIABLES ........................................................................................................................ 47
BASIC PROCEDURE FOR RESEARCH ........................................................................ 48
DATA COLLECTION ........................................................................................................ 48
SYSTEMATIC OBSERVATION ...................................................................................... 48
STOPWATCH TIME STUDY ........................................................................................... 48
PROCESS CHART ............................................................................................................. 49
DATA ANALYSIS............................................................................................................... 49
RECOMMENDATIONS AND CONCLUSIONS: ................................................................. 103
LIMITATIONS OF STUDY .................................................................................................... 105

Abhirama B Sarepaka Page 13 of 112


INTRODUCTION OF BANKING

MEANING AND DEFINITION:

In nonprofessional terms, a bank is any financial institution that deals with money and
provides financial services. The primary form of banking present in the modern industrial
world is commercial banking & central banking.

Banking Means "Accepting Deposits for the purpose of lending or Investment of deposits
of money from the public, repayable on demand or otherwise and withdraw by cheques,
draft or otherwise."
-Banking Companies (Regulation) Act, 1949

According to the concise oxford dictionary, a bank is "Establishment for custody of money,
which it pays out on customers order." In fact this is the function which the bank performed
when banking originated." Banking in the most general sense, is meant the business
of receiving, conserving & utilizing the funds of community or of any special section of
it."
-By H. Wills & J. Bogan

"A banker of bank is a person, a firm, or a company having a place of business where
credits are opened by deposits or collection of money or currency or where money is
advanced and waned.”
-By Findlay Sheras

Thus, A Bank may be defined as an institute that:


 Accepts deposits of money from public.
 Pays interest on money deposited with it.
 Lends or invests money.
 Repays the amount on demand.
 Allow the money deposited to be withdrawn by cheques or draft.

Abhirama B Sarepaka Page 14 of 112


ORIGIN OF WORD BANK:

The origins of the word ‘bank’ is unclear. According to a source, the Italian business houses
that carried on the crude from of banking were called banchi bancheri". However,
according to another source, banking is derived from German word "Branck" which mean
heap or mound. In England, the issue of paper money by the government was referred to
as “raising a bank.”

ORIGIN OF BANKING:

The origins of the simplest form of banking can be traced to the origin of authentic history.
Once the benefits of money as a medium of exchange were recognized, the importance of
banking was developed and enhanced as it provided a safer option of storage of money.
This safe haven ultimately evolved and grew into the modern day financial institutions i.e.
the modern commercial banks that accept deposits, extend loans and enhance the value of
the money kept with them.

BANKING SYSTEM IN INDIA

A HISTORICAL PERSPECTIVE:

Formal banking Practices were established in England and Germany and Italy years before
they were formally initiated in India. However, the history of modern Banking in India can
be identified into three distinct phases:
1. Early phase from 1786-1969.
2. Nationalization of banks and up to 1991 prior to banking sector reforms.
3. New phase of Indian banking with the advent of financial banking.

Banking in India has its origin as early or Vedic period. It is believed that the transitions
from many lending to banking must have occurred even before Manu, the great Hindu
furriest, who has devoted a section of his work to deposit and advances and laid down rules

Abhirama B Sarepaka Page 15 of 112


relating to the rate of interest. During the Mogul period, the indigenous banker played a
very important role in lending money and financing foreign trade and commerce.

During the days of the East India Company, it was the turn of agency house to carry on the
banking business. The General Bank of India was the first joint stock bank to be established
in the year 1786. The others that followed were the Bank of Hindustan and Bengal Bank.

The Bank of Hindustan is reported to have continued until 1906. While other two failed in
the meantime. In the first half of the 19th century, the East India Company established
there banks, The Bank of Bengal in 1809, The Bank of Bombay in 1840 and The Bank of
Bombay in 1843. These three banks also known as the Presidency banks were the
independent units and functioned well. These three banks were amalgamated in 1920 and
new bank, the Imperial Bank of India was established on 27 January 1921.

With the passing of the State Bank of India Act in 1955, the undertaking of the Imperial
Bank of India was taken over by the newly constituted SBI. The Reserve Bank of India
(RBI), which is the Central bank, was established in April 1935 by passing Reserve bank
of India act 1935.The Central office of RBI is in Mumbai and it controls all the other banks
in the country. In the wake of Swadeshi Movement, number of banks with the Indian
management were established in the country namely, Punjab National Bank Ltd., Bank of
India Ltd., Bank of Baroda Ltd., Canara Bank. Ltd.

On 19 July 1969, 14 major banks of the country were nationalized and on 15 April 1980,
6 more commercial private sector banks were taken over by the government.

FUNCTIONS OF BANKS
PRIMARY FUNCTIONS

 Acceptance of Deposits
 Making loans & advances
 Loans
 Overdraft

Abhirama B Sarepaka Page 16 of 112


 Cash Credit
 Discounting of bills of exchange

SECONDARY FUNCTIONS

 Agency functions
 Collection of cheques & Bills etc.
 Collection of interest and dividends.
 Making payment on behalf of customers
 Purchase & sale of securities
 Facility of transfer of funds
 To act as trustee & executor.

UTILITY FUNCTIONS:

 Safe custody of customers’ valuable articles & securities.


 Underwriting facility
 Issuing of traveler’s cheques letter of credit
 Facility of foreign exchanges
 Providing trade information
 Provide information regarding credit worthiness of their customer

There are different ways of classifying banks. Some classify banks based on the ownership
of the bank, while others classify the banks of India in accordance to the Reserve Bank Act
1935. Banks may also be classified based on the function they perform apart from the
normal banking activities.

i) CLASSIFICATION ON BASIS OF OWNERSHIP

Like any commercial institution, a bank is also classified based on ownership.

1. PUBLIC SECTOR BANK

Abhirama B Sarepaka Page 17 of 112


Banks owned by the Government are known as Public Sector Banks. The Government runs
these Banks. In India 14 banks were nationalized in 1969 & in 1980 another six banks were
also nationalized. Therefore in 1980 the number of nationalized bank 20. Currently there
are 21 nationalized banks in operation in India. All these banks are belonging to public
sector category. The primary objective of the public sector banks is Welfare. Banks such
as Allahabad Bank, Andhra Bank, Bank of Baroda, Bank of India, Canara Bank, Bank of
Maharashtra, Corporation Bank, IDBI Bank, etc. come under this category of banks.

2. PRIVATE SECTOR BANKS

These banks are owned and run by the private sector. The private sector banks are sub
categorized into old and new private sector banks with the old banks being the ones that
existed from before the nationalization of banks in 1969. The new banks in the private
sector started after getting their banking licenses since the liberalization of 1990s. Banks
such as Axis Bank, ICICI bank, HDFC Bank, Indusind Bank, Kotak Mahindra Bank, etc.
come under the purview of the Private Sector Banks. An individual has control over their
banks in proportion to the share of the banks held by him.

3. CO-OPERATIVE BANKS

Co-operative banks are those financial institutions. They provide short-term & medium
term loans to their members. Co-operative banks are in every state in India. Its branches at
district level are known as the central co-operative bank. The central co-operative bank in
turn has its branches both in the urban & rural areas. Every state co-operative bank is an
apex bank that provides credit facilities to the central co-operative bank. It mobilized
financial resources from richer section of urban population by accepting deposit and
creating the credit like commercial bank and borrowing from the money market. It also
gets funds from RBI.

ii) CLASSIFICATION IN ACCORDANCE TO RBI ACT 1935

Abhirama B Sarepaka Page 18 of 112


Banks are classified into following two categories based on Reserve Bank Act. 1935.

1. SCHEDULED BANK

These banks have paid up capital of at least Rs. 5 lakhs. These are like a joint stock
company. It is a co-operative organization. These banks find their mention in the second
schedule of the reserve bank.

2. NON-SCHEDULED BANK
These banks are not mentioned in the second schedule of reserve bank and paid up capital
of these banks is less then Rs. 5 lakhs. The number of such bank is gradually decreasing in
India.

iii) CLASSIFICATION ACCORDING TO FUNCTION

Based on functions banks are classified as under:-

1. COMMERCIAL BANKS

The commercial banks generally extend short-term loans to businesspersons & traders.
Since their deposits are for a short period only. They cannot lend money for a long period.
These banks perform various types or agency job for their customers. These banks are not
in position to grant long-term loans to industries because their deposits are only for a short
period. The majority of joint stock banks in India are commercial banks that finance trade
& commerce only.

2. SAVING BANKS

The principle function of these banks is to collect small saving across the country and put
them into productive use. These banks have shown marked development in Germany &

Abhirama B Sarepaka Page 19 of 112


Japan. These banks were established in City of Hamburg, Germany in 1765. In India, a
department of post offices functions as a saving banks.

3. FOREIGN EXCHANGE BANKS

These are special types of banks, which specialize in financing foreign trade. Their main
function is to make international payments through purchase & sale of exchange bills. As
it well known, the exporters of country prefer to receive the payments for exports in their
own currency. Thus, these banks convert home currency into foreign currency and vice
versa. It is on this account that these banks have to keep with themselves stock of the
currency of various countries. Along with that, they have to open branches in foreign
countries to carry on their business.

4. INDUSTRIAL BANKS

The industrial banks extends long-term loans to industries. In fact, they also help industrials
firms to sell their debentures and shares. Sometimes, they even underwrite the debentures
& shares of big industrial concerns.

5. INDIGENIOUS BANKS
These banks found their origin in India. These banks made significant contribution to the
development of agricultural and industries before independence. Mahajans, rural
moneylenders have been the forerunner of these banks in India.

6. CENTRAL BANK

The central bank occupies a pivotal position in the monetary and banking structure of the
country. The central bank is the undisputed leader of the money market. As such, it
supervises controls and regulates the activities of commercial banks affiliated with it. The
central bank is also the higher monetary institution in the country charged with the duty &

Abhirama B Sarepaka Page 20 of 112


responsibility of carrying out the monetary policy formulated by the government. India's
central bank known as The Reserve Bank of India was set up in 1935.

7. AGRICULTURAL BANK

The commercial and the industrial banks are not in a position to meet the credit
requirements of agriculture. Hence, there arises the need for setting up special type of
banks of finance agriculture. The credit requirement of the farmers are two types. Firstly,
the farmers require short-term loans to buy seeds, fertilizers, ploughs and other inputs.

Secondly, the farmers require long-term loans to purchase land, to effect permanent
improvements on the land to buy equipment and to provide for irrigation works.

There are two types of agriculture banks.


1. Agriculture co-operative banks
2. Land mortgage banks. The farmer provide short-term credit, while the letter
extend long-term loans to the farmers.

Only with a proper knowledge of the types of banks and their functions, it is possible to
understand the profile of the present bank.

Abhirama B Sarepaka Page 21 of 112


PROFILE OF THE ORGANIZATION

INTRODUCTION

The housing development finance corporation limited (HDFC) was amongst the first to
receive an "in-principle" approval from the reserve bank of India (RBI) to set up a bank in
the private sector, as part of RBI liberalization of Indian banking industry in 1994. The
bank was in corporate in Aug. 1994 in the name of HDFC Bank Ltd. With its registered
office in Mumbai, India, HDFC Bank commenced operations as scheduled commercial
bank in January 1995.

PROMOTOR

HDFC is India's premier housing finance company and enjoys an impeccable record of
accomplishment in India as well as in international markets. Since its inception in 1967,
the corporation has maintained a consistent and healthy growth in its operations to remain
a market leader in mortgage. Its outstanding loan portfolio covers well over a million
dwelling units. HDFC has developed significant expertise in retail mortgage loans to
different market segments and has a large corporate client base for its housing related credit
facilities. With its experience in the financial markets, a strong franchise, HDFC was
ideally positioned to promote a bank in the Indian environment.

BUSINESS FOCUS

HDFC Bank's mission is to be an excellent Indian bank. The bank has aimed to build sound
customer franchises across district business to be the prefer provider of banking services
in the segment that the bank operates in and to achieve healthy growth in profitability,
consistent with the bank's risk appetite. The bank is committed to maintain the highest level
of ethical standards, professional integrity and regulatory compliance. HDFC Bank's
business philosophy is based on four core values:
1. Operational Excellence
2. Customer Focus

Abhirama B Sarepaka Page 22 of 112


3. Product Leadership
4. People

TIMES BANKS AMALGAMATION

In a milestone transaction in Indian banking industry, Times Bank Limited (another new
private sector bank promoted by Bennett, Coleman & Co. Times group) was merged with
HDFC Bank ltd., effective February 26, 2000. As per the scheme of amalgamation
approved by the shareholders of both banks and Reserve Bank of India.

DISTRIBUTION NETWORK

HDFC Bank has its Headquarters in Mumbai. The bank, as on 31 March 2013, has a vast
network of 3062 branches spread over 1845 cities across the country. All branches are
linked on an online real time basis. The bank’s expansion plans take into account the need
to have a presence in all major industrial and commercial centers where its corporate
customers are located as well as the need to build a strong retail customer base for both
deposits and loans products. Being a clearing settlement bank to various leading stock
exchanges, the bank has branches in centers where the NSE/BSE have a strong and active
member base. The bank also has a network of 10743 ATM's across their cities.

TECHNOLOGY

HDFC Bank operates in a highly automated environment in terms of information


technology and communication systems. The entire bank's branches have connectivity that
enables the bank to offer speedy funds transfer facility to its customers. Multi branch access
is also provided to retail customers through the branch network and automated teller
machines (ATMs).

The bank has made substantial efforts and investments in acquiring the best technology
available internationally to build the infrastructure for an excellent bank has prioritized its
engagement in technology and the internet as one of its key goals and has already made

Abhirama B Sarepaka Page 23 of 112


significant progress in web enabling its core business. In each office its business, the Bank
has succeeded in leveraging its market position, expertise and technology to create a
competitive advantage and build market share.

BUSINESS PROFILE

HDFC Bank caters to wide range of banking services covering both commercial and
investment banking on the wholesale side and transactional branch banking on the retail
side. The bank three key business areas:

1. WHOLESALE BANKING SERVICES

The Bank's target is primary large blue-chip manufacturing companies in the Indian
corporate sector and to a lesser extent, emerging midsized corporate. For these corporate
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 of structure solution that combine cash
management services with vendors and distributor finance for facilitating superior supply
chain management for its corporate customers. Based on its superior levels of product
delivery service and strong customer orientation, the Bank has made significant inroads
into the Banking consortia of a number of leading India corporate including Multinationals,
Companies from the domestic business house and prime public sector companies. It is
recognized as a leading provider of cash management and transactional Banking solutions
to corporate customers, Mutual Funds, Stock Exchange Members and Bank.

2. RETAIL BANKING SERVICES:

The objective of retail bank is to provide its target market customer a full range of financial
products and banking service, giving the customer a one-stop window for all his/her
banking requirements. The products are backed by excellent services and delivered to the

Abhirama B Sarepaka Page 24 of 112


customers through the growing branch network as well as though alternative delivery
channels like ATMs, phone banking, net banking and mobile banking.

The HDFC Bank preferred programs for high net worth individuals, the HDFC Bank plus
and the investment advisory services program have been designed keeping in mind heads
of customers who seek distinct financial solutions information and advice on various
investment avenues. The also had a wide array of retail ban products including auto loans,
loans against marketable securities, personal loans and loans for two wheelers. It is also a
leading provider of depository service to retail customers offering customers the facility to
hold their investments in electronic form. HDFC Bank was the first bank in India to launch
an international debit card in association with VISA (Visa electron) and issue the master
card Maestro debit card as well. The debit card allows the use to directly debit his account
at the point of purchase at a merchant establishment, in India and overseas. The bank launch
its credit card in association with VISA in November 2002.

The bank is also one of the leading players in the "merchant acquiring" business with 243,
000 point of sale (POS) terminals for debit/credit cards acceptance at merchant
establishments. The bank is well positioned as a leader in various net based Business to
Customer (B2C) opportunities including a wide range of interest banking services for fixed
deposit, loans, bill payments etc.

3. TREASURY OPERATIONS

Within this business, the bank has three main product areas foreign exchange and
derivative, local currency, money market & debt securities and equities. With the
liberalization of the financial market in India, corporate need more sophisticated risk
management information advice and product structure. These and find pricing on various
treasury product are provided through the bank treasury team.

Abhirama B Sarepaka Page 25 of 112


BOARD OF DIRECTOR
Mr. Jagdish Kapoor, (Chairman)
Mr. Aditya Puri, (Managing Director)
Mr. Keki Mistry
Dr. Venkat Rao Gadwal
Dr. Vineet Jain
Mrs. Renu Karnad
Mr. Arvind Pande
Mr. Ranjan Kapoor (Resigned w.e.f. 29 March 2006)
Mr. Bobby Parikh (w.e.f. Jan. 9, 2004)
Mr. Ashim Samanta

VICE PRESIDENT AND COMPANY SECRETARY


Mr. Sanjany Dongre

AUDITOR
M/s P.C Hansotia & Co.
Chartered Accountant

REGISTERED OFFICE
HDFC BANK HOUSE
Senapati Bapat Marg,
Lower Parel, Mumbai 40013
Tel. No. 66521000
Fax No. 24960737
Website: www.hdfcbank.com

Abhirama B Sarepaka Page 26 of 112


SWOT ANALYSIS OF HDFC BANK

Every organization big or small has to conduct a SWOT (Strengths, Weaknesses,


Opportunities and Threats) analysis so that it may be able to direct its strategies and efforts
in converting its weaknesses into strengths and threats into opportunities.

Even HDFC Bank has its strengths and weaknesses.

STRENGHS:

1. It has an extensive distribution network comprising of 3062 branches in1845 cities


& one international office in Dubai this provides competitive edge over the
competitions.
2. The Bank has a strong retail depository base & has more than million customers.
3. Bank boasts of a strong brand equity.
4. ISO 9001 certification for its depository & custody operations & for its backend
processing of retail operation & direct banking operations.
5. The bank has a near competitive edge in area of operations.
6. The bank has a market leader in cash settlement service for the major stock
exchanges in its country.
7. HDFC Bank is one of the largest private sector bank working in India.
8. In terms of market capitalization, HDFC Bank is the largest Bank and the sixth
largest company.
9. It has a highly automated environment in terms of information technology &
communication system.
10. Infrastructure is best.
11. It has many innovative products like kids Advantage scheme, NRI services.

WEAKNESS:

1. Account opening and delivery of cheques book take comparatively more time.
2. Lack of availability of different credit products like CC Limit, Bill discounting
facilities.

Abhirama B Sarepaka Page 27 of 112


OPPORTUNITY:

1. Branch expansion
2. Door step services
3. Greater liberalization in foreign ownership via FDI in Indian Pvt. Sector Banks.
4. CC/ OF Facilities.
5. Infrastructure improvements & better systems for trading & settlement in the govt.
securities & foreign exchange markets.

THREATS:

1. The bank has started facing competition from players like SBI, PNB in the finance
market itself. This reduce the profit margins in the future.
2. Some Private Banks have 7 days banking.

JUSTIFICATION OF THE STUDY

Financial Statements are prepared primarily for decision-making. They play a dominant
role in setting the framework of managerial decisions. However, the information in the
financial statement is not an end in itself as no meaningful can be drawn from these
statements alone. The information provided in the financial statement is of immense use in
making decisions through analysis and interpretation of financial statements.

The financial analysis is the process of identifying the financial strength and weakness of
the firm by properly establishing relationship between the items of the balance sheet and
P&L A/C. There are various methods or techniques used in analyzing financial statement
such as comparative statement, trend analysis, and common size statement, schedule of
changes in working capital, fund flow and cash flow analysis, cost volume profit analysis
and “RATIO ANALYSIS”.

Ratio analysis is one of the most powerful tool of financial analysis. It is a process of
establishing and interpreting various ratios that the financial statements can be analyzed
more clearly and decisions made from such analysis. Just like a Doctor examines his patient

Abhirama B Sarepaka Page 28 of 112


by recording his body temperature, blood pressure etc. before making his conclusion
regarding the illness and before giving his treatment, a financial analyst analysis the
financial statement with various tools of analysis before commenting upon the financial
health or weaknesses of an enterprise. The purpose of financial analysis is to diagnose the
information contained in financial statements to judge the profitability and financial
soundness of the firm. Financial statement analysis is an attempt to determine the
significance and meaning of financial statement data so that forecast may be made of the
future earning, ability to pay interest and debt maturities and profitability of a sound
dividend policy.

A financial ratio is the relationship between two accounting figures expressed


mathematically ratio provide clues to the financial position of the concern. These are the
pointers and indicators of financial strength, soundness, position or weakness of an
enterprise. One can draw conclusions about the exact financial position of a concern with
the help of ratios.

Abhirama B Sarepaka Page 29 of 112


OBJECTIVE OF THE STUDY

Objectives are the ends that states specifically how goal be achieved. Every study must
have an objective for which all the efforts have been done. Without an objective, there is
no research and no result. Based on objective all the research process is followed.
Objectives are the main aspect of every study. The objective of the study gives direction to
go through the research problem. It guides the researcher and keeps him on track.

The primary objective of the present study is to assess financial condition of the bank by
using ratios.

The following are the other objectives of the study.


1. To know about HDFC bank and its operations with a specific reference to
Sector 9 Chandigarh Branch.
2. To understand the technological services provided by HDFC Sector 9
Chandigarh Branch.

Abhirama B Sarepaka Page 30 of 112


INTRODUCTION OF THE TOPIC

MEANING OF FINANCIAL STATEMENTS:

Financial statements refer to such statements, which contains financial information about
an enterprise. They report profitability and the financial position of the business at the end
of accounting period. The team financial statement includes at least two statements that the
accountant prepares at the end of an accounting period. The two statements are -
1. The Balance Sheet
2. Profit and Loss Account
They provide some extremely useful information to the extent that balance Sheet mirrors
the financial position on a particular date in terms of the structure of assets, liabilities and
owners’ equity, and so on and the Profit And Loss account shows the results of operations
during a certain period of time in terms of the revenues obtained and the cost incurred
during the year. Thus, the financial statement provides a summarized view of
financial positions and operations of a firm.

MEANING OF FINANCIAL ANALYSIS

The first task of financial analysis is to select the information relevant to the decision under
consideration to the total information contained in the financial statement. The second step
is to arrange the information in a way to highlight significant relationship. The final step is
interpretation and drawing of inference and conclusions. Financial statement is the process
of selection, relation and evaluation.

Features of Financial Analysis

 To present a complex data contained in the financial statement in simple and


understandable form.
 To classify the items contained in the financial statement inconvenient and rational
groups.
 To make comparison between various groups to draw various conclusions.

Abhirama B Sarepaka Page 31 of 112


Purpose of Analysis of financial statements

 To know the earning capacity or profitability.


 To know the solvency.
 To know the financial strengths.
 To know the capability of payment of interest & dividends.
 To make comparative study with other firms.
 To know the trend of business.
 To know the efficiency of management.
 To provide useful information to management

Procedure of Financial Statement Analysis

The following procedure is adopted for the analysis and interpretation of financial
statements:-

The analyst should acquaint himself with principles and postulated of accounting. He
should know the plans and policies of the managements that he may be able to find out
whether these plans are properly executed or not.
The extent of analysis should be determined so that the sphere of work may be decided. If
the aim is, find out. Earning capacity of the enterprise then analysis of income statement
will be undertaken. On the other hand, if financial position is to be studied then balance
sheet analysis will be necessary.
The financial data be given in statement should be recognized and rearranged. It will
involve the grouping similar data under same heads. Breaking down of individual
components of statement according to nature. The data is reduced to a standard form.
A relationship is established among financial statements with the help of tools & techniques
of analysis such as ratios, trends, common size, fund flow etc.
The information is interpreted in a simple and understandable way. The significance and
utility of financial data is explained for help indecision making.
The conclusions drawn from interpretation are presented to the management in the form of
reports.
TYPES OF FINANCIAL ANALYSIS

A) Classification based on natural used

a) External Analysis: Outsiders, who do not have access to the detailed internal
accounting records of the business firm, do this analysis. These outsiders’ parties are
potential investor, creditors, government agencies, credit agencies & public.

b) Internal Analysis: The analysis conducted by person who has access to the
internal accounting records of a business firm is known as internal analysis.

Abhirama B Sarepaka Page 32 of 112


B) On the basis of Method of Analysis:

a) Horizontal Analysis: Horizontal analysis refers to the comparison of


financial data of accompany for several years. The figures of this type of analysis
are presented horizontally over a no. of columns. This type of analysis is also called
“Dynamic Analysis”.

b) Vertical Analysis: This analysis refers to the study of relationship of the


various items in the financial statements, of one accounting period. It is also known as
“Static analysis”.

FUNCTIONS OF FINANCE DEPARTMENT

The functions of finance department include the following areas:


1) Effective management of financial resources of the company.
2) Coordinates & Monitors the functions of accounts activities in the units/marketing
offers.
3) Establish and maintain systems of financial control, internal check and render advice on
financial & accounting matters including examination of feasibility report and detailed
project reports.
4) Establish and maintain proper system of budgetary control, cost control and management
reporting.
5) Maintain financial accounts and compile annual periodical accounts in accordance with
The Companies Act, 1956, ensuring the audit of accounts as per law/Govt. directions.
6) Looks after overall funds management and arranges funds required for the capital
schemes and working capital form govt., banks and financial institutions etc.
7) Timely payment of all taxes, levies & duties under the Law, Maintenance of records and
filing returns statements connected with such taxes, levies and duties with the appropriate
authorities, as per law. All the power involving financial implications are to be exercised
in prior consultation with head of concerned finance department. In the event of any
difference of opinion between the General Manger and the Head of Finance Dept., the
matter shall be referred to Managing Director who after consulting Director (Finance) shall
issue appropriate instruction after following the prescribed procedures.

METHODS OF FINANCIAL ANALYSIS

A number of methods can be used for the purpose of analysis of financial statements. These
are also termed as techniques or tools of financial analysis. Out of these, and enterprise can
choose those techniques that are suitable to its requirements. The principal techniques of
financial analysis are:
1. Comparative Financial Statements.
2. Common – size Statements
3. Trend Analysis

Abhirama B Sarepaka Page 33 of 112


4. Funds Flow statements
5. Cash Flow Statement

COMPARATIVE FINANCIAL STATEMENTS

When financial statements figures for two or more years are placed side-side to facilitate
comparison, these are called ‘comparative Financial Statements’. Such statements not only
show the absolute figures of various years but also provide for columns to indicate to
increase or decrease in these figures from one year to another. In addition, these statements
may also show the change from one year to another on percentage form. Such cooperative
statements are of great value in forming the opinion regarding the progress of the
enterprise.

PURPOSE OR UTILITY OR IMPORTANCE OF COMPARATIVE


STATEMENTS

1. To make the Data simpler and more understandable


2. To indicate the Trend.
3. To indicate the strong points weak points of the concern.
4. To compare the firms performance with the average performance of the industry.
5. To help in forecasting

FORMS OF PRESENTING COMPARATIVE STATEMENTS

1. To show only the absolute data of various items or in other words to show only
rupee amounts of various items.
2. To show the increases and decreases in data in terms of money values.
3. To show the increases and decreases in data in terms of percentages.
4. Comparison expressed in ratios.
5. Use of cumulative figures and averages

COMPARATIVE BALANCE SHEET

The Comparative Balance Sheet as on two or more different dates can be prepared to show
the increase or decrease in various assets, liabilities and capital. Such a comparative
Balance Sheet is very useful in studying the trends in a business enterprise.

ADVANTAGES OF COMPARATIVE BALANCE SHEET

1. Helpful for comparison.


2. Helpful in knowing changing in the size of items.
3. Helpful in knowing trends.
4. Link between income statement and Balance sheet

Abhirama B Sarepaka Page 34 of 112


COMPARATIVE PROFIT & LOSS ACCOUNT

Profit and loss account shows the net profit or net loss of a particular year whereas
comparative profit and loss account for a number of years provides the following
information
1. Rate of increase or decrease in gross profit.
2. Rate of increase or decrease in operating profit.
3. Rate of increase or decrease in cost of goods sales.
4. Rate of increase or decrease in net profit.
5. Rate of increase or decrease in sales.

TREND ANALYSIS

Trend percentage are very useful is making comparative study of the financial statements
for a number of years. These indicate the direction of movement over a long time and help
an analyst of financial statements to form an opinion as to whether favorable or unfavorable
tendencies have developed. This helps in future forecasts of various items. For calculating
trend percentages, any year may be taken as the ‘base year’. Each item of base year is
assumed equal to 100 and on that basis, the percentage of item of each year calculated.

RATIO ANALYSIS

MEANING:
Absolute figures expressed in financial statements by themselves are meaningfulness.
These figures often do not convey much meaning unless expressed in relation to other
figures. Thus, it can be say that the relationship between two figures, expressed in
arithmetical terms is called a ratio.

According to R.N. Anthony. ‘A ration is simply one number expressed in terms of another.
It is found by dividing one number into the other.’

TYPES OF RATIOS
 Proportion or Pure Ratio or Simple ratio.
 Rate or so many Times.
 Percentage
 Fraction.

OBJECTS AND ADVANTAGES OR USES OF RATIO ANALYSIS

1. Helpful in analysis of financial statements.


2. Simplification of accounting data.
3. Helpful in comparative study.

Abhirama B Sarepaka Page 35 of 112


4. Helpful in locating the weak spots of the business.
5. Helpful in forecasting
6. Estimate about the trend of the business
7. Fixation of ideal standards
8. Effective control
9. Study of financial soundness.

LIMITATION OF RATIO ANALYSIS

1. False accounting data gives false ratios


2. Comparisons not possible of different firms adopt different accounting policies.
3. Ratio analysis becomes less effective due to price level change
4. Ratios may be misleading in the absence of absolute data.
5. Limited use of a single Ratio.
6. Window-Dressing
7. Lack of proper standards.
8. Ratio alone are not adequate for proper conclusions
9. Effect of personal ability and bias of the analyst.

CLASSIFICATION OF RATIOS

In view of the financial management or according to the tests satisfied, various ratios have
been classified as below

Liquidity Ratios: These ratios measure the short-term solvency or financial position of a
firm. These ratios are calculated to comment upon the short-term paying capacity of a
concern or the firm’s ability to meet its current obligations.

Long –Term Solvency and Leverage Ratios: Long-term solvency ratios convey a firm’s
ability to meet the interest cost and repayment schedules of its long-term obligation e.g.
Debit Equity Ratio and Interest Coverage Ration. Leverage Ratios.

Activity Ratios: Activity ratios are calculated to measure the efficiency with which the
resource of a firm have been employed. These ratios are also called turnover ratios because
they indicate the speed with which assets are being turned over into sales e.g. debtors
turnover ratio.

Profitability Ratios: These ratios measure the results of business operations or overall
performance and effective of the firm e.g. gross profit ratio, operating ratio or capital
employed. Generally, two types of profitability ratios are calculated.
(a) In relation to Sales

Abhirama B Sarepaka Page 36 of 112


(b) in relation in Investment

CASH-FLOW STATEMENT

A cash – flow statement is a statement showing inflows (receipts) and outflows (payments)
of cash during a particular period. In other words, it is a summary of sources and
applications of each during a particular span of time.

 Objectives of Cash Flow Statement:


 Useful for Short-Term Financial Planning.
 Useful in Preparing the Cash Budget.
 Comparison with the Cash Budget.
 Study of the Trend of Cash Receipts and Payments.
 It explains the Deviations of Cash from Earnings.
 Helpful in Ascertaining Cash Flow from various separately.
 Helpful in Making Dividend Decisions.

Abhirama B Sarepaka Page 37 of 112


REVIEW OF LITERATURE

Anil Kumar Soni & Harjinder Pal Singh Saluja (2013) used financial ratios to evaluate the
performance of the District Central Cooperative Bank plays a vital role in the agriculture
and rural development of the Rajnandgaon. The study revealed that financial position of
this bank analyzed by ratio analysis techniques. It is found that the position solvency,
liquidity and profitability are satisfactory. The efficiency ratios indicated a medium level
of the expenditure over the gross income. Profitability of the bank was very low due to the
heavy over dues and low rate of recovery.

Hosamani (1995) used various ratios to evaluate the performance of Malaprabha Grameena
Bank in Karnataka. Profitability ratios were negative (-43%) due to higher burden ratio
(3.11%) compared to spread (2.96%).

Pathania and Sharma (1997) studied the working of Himachal Pradesh State Cooperative
Agricultural and Rural Development Bank, which lends money on a long-term basis for a
variety of end users. The financial durability of the bank was measured and data were
presented on the long –term financial strength, debt to equity ratio, fixed assets to net worth
ratio, the short- term financial performance, and the current ratio. It was concluded that the
financial position of the bank was not sound, with liabilities exceeding equity.

Patil (2000) used various financial ratios to evaluate the performance of Primary
Cooperative Agricultural and Rural Development Banks in Dharwad district of Karnataka.
The study revealed that the current ratio was more than unity and acid test ratio was less
than unity, while the net worth and profitability ratios were negative for all the banks in all
the periods except for PCARDB, Dharwad.

Shekhar et al. (1999) employed financial ratio analysis for the Karimnagar District Central
Cooperative Bank in Andhra Pradesh, India. Financial ratios relating to solvency, liquidity,
profitability, efficiency and strength of the bank were analyzed for the period 1985/86-
1994/95.

Siddhanti (1999) used various financial ratios to analyze financial performance of Indian
Farmers Fertilizers Cooperative and opined that the current ratio of the institution between
1987-88 and 1997-98 was ranging from 2.62 to 2.52 as against the standard norm of 2:1.
The debt equity ratio during the period was between 1.05 and 1.07 as against standard norm
of 1:1.

At the end, we can conclude that the Financial Statement Analysis has a great effect on the
future prospects of the any organization.

Abhirama B Sarepaka Page 38 of 112


TIME AND MOTION STUDIES

MOTION STUDY
According to Ralpha M. Barnes (2001), Frank and Lillian M. Gilbreth are known as the
parents of motion study. Gilbreth begin investigation to find the “best way” of performing
a given task trough analyzing the motions used by his workmen and he easily saw how to
make improvements. He also possessed for analyzing work motion situations to enhance
their ability for shorter or less fatiguing motions to improve the work environment. The
research included the elimination of all useless motions and the reduction of those
remaining motions. The elimination of this unwanted waste known as work simplification.
According Fred (1992), Elton Mayo started their research known as the human relations
movement and he discovered that people work better when their attitude is better. He
undertook a research project to study what factors affected productivity in the Hawthorne
plant. Their studied took place between 1924 and 1933.

TIME STUDY
According to Fred E. Mayers (1992), time study was developed by Frederick W. Taylor in
about 1880 which he is the first person to use a stopwatch to study and measure work
content with his purpose to define “a fair day’s work.” He called as Father of Time Study.
Among his study is ‘Taylor Shoveling Experiment’, which he studied between 400 and 600
men that using his own shovel from home to moving material from mountains of coal, coke
and iron ore in around two mile-long yards. Taylor identify that there have different size
of shovels and he wondered which shovel was the most efficient. Thus, he used a stopwatch
and measured everything that workers did. He recorded the data for every work in various
ways with varied of shovels size, durations to done their work, number of breaks and work
hours. The results were fantastic which it reduced time, saving numbers of workers and
budgeting for every year.

TECHNIQUES OF MOTION AND TIME STUDY


Motion study has the greatest potential for savings. We can by eliminating the task or
combining the task with some task. We can rearrange the elements of work to reduce the

Abhirama B Sarepaka Page 39 of 112


work content and we can simplify the operation by moving part. Thus, among the
techniques for motion study are:
i. Process charts
ii. Flow diagrams
iii. Operation charts
iv. Flow process charts
v. Multiple activity charts
Gilbreths used flow diagrams to show movement of product around an entire plant because
they gave an accurate geographical picture of the entire process. They also develop
methods study techniques such as cyclograph, chronocyclographs, movie cameras, etc. The
techniques of time study start with the last motion technique and it shows the close
relationship between motion study and time study. The techniques of time study are:
i. Stopwatch time study
ii. Expert opinion standards
iii. Predetermined time standards
iv. Work sampling time standards

Frederick W. Taylor used a stopwatch and a clipboard to record the time and findings of
his study (Foster, 2003). Motion and Time study technique can be used widely for variety
of research. For example, Ann Hendrich, Marilyn Chow, Boguslaw A. Skierczynski,
Zhenqiang Lu (2008) used this techniques to study spend time of nurse at hospital. L.
Aharonson Daniel (1996) used time studies in A&E department. While, Jeffrey S. Smith
(2003) survey that many production and manufacturing used simulation as alternative way
to develop new effective system.

RELATIONSHIP AND UTILIZATION OF MOTION AND TIME STUDY


Motion and time study helps management determine how much is produced by workers in
a specific time frame, therefore making it easier to predict work schedules and output.
Motion and Time Study is a scientific method designed by two different people for the
same purpose, to increase productivity and reduce time. The two methods evaluate work
and try to find ways to improve processes. Frank B. Gilbreth invented motion study

Abhirama B Sarepaka Page 40 of 112


designed to determine the best way to complete a job. Frederick W. Taylor designed Time
Study; it measures how long it takes a worker to complete a task. Time and Motion Study
has become a necessary tool for businesses to be successful today.

Time and Motion Study is very important in production control. Now, Offices, Banks,
Department Stores, and Hospitals use Motion and Time Study. Offices use it to measure
and simplify work in order to reduce costs. Banks use it to help team members reach their
sales goals (Foster, 2003).

Abhirama B Sarepaka Page 41 of 112


RESEARCH METHODOLOGY

The procedure adopted for conducting the research requires a lot of attention as it has direct
bearing on accuracy, reliability and adequacy of results obtained. It is due to this reason
that research methodology, which used during the research, needs elaboration. Research
Methodology is a way to systematically study and solve the research problems. If a
researcher wants to claim his study as a good study, he must clearly state the methodology
adapted in conducting the research the research so that it may be judged by the reader
whether the methodology of work done is sound or not.

The Research Methodology here includes.

1. Meaning of Research.
2. Research Problem.
3. Research Design.
4. Sampling Design.
5. Data Collection method.
6. Analysis and interpretation of Data.

Meaning Research:

Research is defined as “a scientific and systematic search for pertinent information on a


specific topic”.

Research is an art of scientific investigation. Research is a systematized effort to gain now


knowledge. It Isa careful investigation or inquiry especially through search for new facts
in any branch of knowledge. Research is an academic activity and this term should be used
in a technical sense. Research comprises defining and redefining problems, formulating
hypothesis or suggested solutions. Making deductions and reaching conclusions to
determine whether they if the formulating hypothesis. Research is thus, an original
contribution to the existing stock of knowledge making for its advancement. The search

Abhirama B Sarepaka Page 42 of 112


for knowledge through objective and systematic method of finding solutions toe problem
is research.

Research Problem

The first step while conducting research is careful definition of Research Problem. “To
ERR IS THE HUMAN” is a proverb that indicates that no one is perfect in this world.
Every researcher has to face many problems which conducting any research that’s why
problem statement is defined to know which type of problems a researcher has to face while
conducting any study. It is said that, “Problem well defined is problem half solved.”

A problem statement refers to some difficulty, which researcher experiences in the context
of either a theoretical or a practical situation and wants to obtain the solution for the same.

The problem statement here is “To make Financial Analysis of Financial statements of
HDFC BANK.”

Research Design

A research designs is the arrangement of conditions for collection and analysis data in a
manner that aims to combine relevance to the research purpose with economy in procedure.
Research Design is the conceptual structure with in which research in conducted. It
constitutes the blueprint for the collection measurement and analysis of data. Research
Design includes and outline of what the researcher will do form writing the hypothesis and
it operational implication to the final analysis of data. A research design is framework for
the study and is used as guide in collection and analyzing the data. It is a strategy specifying
which approach will be used for gathering and analyzing the data. It also include the time
and cost budget since most studies are done under these two-cost budget since most studies
are done under theses tow constraints.

Abhirama B Sarepaka Page 43 of 112


The design is such studies must be rigid and not flexible and most focus attention on the
following.

1. What is the study about?


2. Why is the study being made?
3. Where will the study be carried out?
4. What type of data is required?
5. Where can be required data be found?
6. What period will the study include?
7. What will be sample design?
8. What techniques of data collection will be used?
9. How will the data be analyzed?
10. In what style will the report be prepared?

TYPES OF RESEARCH DESIGN:

 Experimental research design


 Exploratory research design
 Descriptive & diagnostic research

Exploratory Research Design: This research design is preferred when researcher has a
vague idea about the problem the researcher has to explore the subject.

Experimental Research Design: The research design is used to provide strong basis for
the existence of casual relationship between two or more variables.

Descriptive Research Design: It seeks to determine the answers to who, what, where,
when and how questions. It is based on some previous understanding of the matter.

Diagnostic Research Design: It determines the frequency with which something occurs
or its association with something else.

Abhirama B Sarepaka Page 44 of 112


Research Design Used in this Project

Research Design chosen for this study is Descriptive Research Design. Descriptive study
is based on some previous understanding of the topic. Research has a very specific
objective and clear-cut data requirements.

Sampling Design

Sampling is necessary because it is almost impossible to examine the entire parent


population (i.e. the entire universe) various factors such as time available cost, purpose of
study etc. make it necessary for the researchers to choose a sample. It should be neither too
small nor too big. It should be manageable. The sample size of past 5 years is taken for
present study due to time limitation.

DATA COLLECTIONS

The process of data collection begins after a research problem has been defined and
research design has been chalked out. There are two types of data, Primary and Secondary.

Primary Data: It is first hand data, which is collected by researcher itself. Primary data is
collected by various approaches to get a precise, accurate, realistic and relevant data. The
main tool in gathering primary data was investigation and observation. It was achieved by
a direct approach and observation from the officials of the company.

Secondary Data: It is the data, which is already collected by someone else. Researcher has
to analyze the data and interprets the results. It has always been important for the
completion of any report. It provides reliable, suitable, adequate and specific knowledge
took data comprise annual reports and post records. The secondary data for the purpose of
the analysis represents the annual reports of years 2008-09 until 2012-2013. The valuable
cooperation extended by staff members contributed a lot to fulfill the requirements in the
collection of data in order to complete the project. Various statistical tools are applied

Abhirama B Sarepaka Page 45 of 112


depending on the research problem. In this study ratio analysis, comparative financial
statements analysis, common size statements and Trend Analysis has been used
for analyzing and interpreting the result.

The present study has been carried with the help of following research methodology to
achieve above stated objectives.

DATA

The present study was done by using the secondary data.

DATA SOURCES

Secondary data has been collected from company web sites, records
 http://www.hdfcbank.com/aboutus/cg/annual_reports.htm
 http://www.moneycontrol.com/india/stockpricequote/banksprivatesector/hdf
cbank/HDF01
 International Journal of Accounting and Financial Management Research
(IJAFMR)

DATA PERIOD

This study has been carried with five years of data. The data period is from the financial
years 2008-2009 to 2012-2013.

TOOLS USED

Ratio analysis is used to evaluate relationships among financial statement items. The ratios
are used to identify trends over time for one company or to compare two or more companies
at one point in time. Financial statement ratio analysis focuses on three key aspects of a
business: liquidity, profitability, and solvency.

Abhirama B Sarepaka Page 46 of 112


DuPont Analysis: is used to compute the Return on Investment by considering the various
measures like Net Profit Ratio and Capital Turnover Ratio.

Forecasting Financial Statements is the process of estimating future business


performance (sales, costs, earnings).Corporations use forecasting to do financial planning,
which includes assessment of their future financial needs.

RESEARCH METHODOLOGY FOR TIME MOTION STUDIES

METHODOLOGY FRAMEWORK
Several methods will be used to achieve research objectives. After the literature review,
observation and collecting data is needed. The complete field data collection will be tested
before it will be used for data analysis.

The problems and nonproductive in the work process can be identified based on the data
collection and their analysis. Then, the result from the data testing will be determined
whether the result can be used or not and if there are any incomplete data, the data
collection will be executed again until it fulfills the objective requirement. After all the
data and analysis are complete, proposal and opinion may be given to the organization.

RESEARCH DESIGN
This research was conducted through field study. Field study is all the methods of research
are made from direct observations towards the live study situations. Researcher collected
data by observing and recorded the research subject during the observation. According to
Tunnell, 1977, the event from the field study is a matter of real situation in the live
condition continuously. The matter is not invent, on design or pause for the research
purpose.

VARIABLES
The variables in this study can be classified into two types, which are independent (time
and motion technique and dependent variable (the work process under consideration). This

Abhirama B Sarepaka Page 47 of 112


research used time and motion technique to study on improving the work process. Meaning,
the increasing of work process efficiency is depending on the time and motion technique.

BASIC PROCEDURE FOR RESEARCH


There are four steps to complete this study. There are given below according to their
sequence:
a. Select: select the process or job to be studied.
b. Record: observe and record all the relevant facts related to the work process.
c. Examine: examine each recorded fact critically
d. Develop: develop the most efficient work process.

DATA COLLECTION
This research requires to collect data that are related to the time during the work process
occurs, the movement or distance for each process and number of products that they can
produces in specific time, which was collect based on several methods:
a. Systematic Observation
b. Stopwatch Time Study
c. Process Chart

SYSTEMATIC OBSERVATION
Systematic observation means researcher are required to observe the whole work process
in that industry, then select and focusing on which process or job that want to study. Based
on the observation, is needs to record everything happens in each process from the start to
finish the work process.

STOPWATCH TIME STUDY


Stopwatch time study is the work measurement to determine the baseline for future
improvement. It is also used to analyze a specific process by qualified workers in an effort
to find the most efficient ways in terms of time. Moreover, this method measures the time
necessary for a work process to be completed using the best ways. The time was measured
using snapback stopwatch equipment because it is easier and faster in data recording.
Moreover, this type of stopwatch is suitable for this research because it can develop

Abhirama B Sarepaka Page 48 of 112


accurate data. This allows the element times to be entered directly on the time study sheet
without the need for subtractions.

PROCESS CHART
Process chart is used to show facts as handling, inspection, operations, storage and delays
that occur in the work process, where it was happened when the process moves from one
process to another process until it finished. Each fact can be represented by symbols, where
it is used to describe the process steps.

DATA ANALYSIS
After all data is collected, the next step is analyzing the data thoroughly for each work
process. Analyzing data based on systematic observation and the process chart, which
recorded all the relevant facts about the work process. Thus identifying the sections of
the work force are nonproductive and take a long time in the work process.

Abhirama B Sarepaka Page 49 of 112


DATA ANALYSIS & INTERPRETATION

For the purpose of calculation on the financial ratios and their subsequent analysis and
interpretation, it is imperative to have the particulars of HDFC bank like Balance sheet and
income statement as follows:

March March March March March


2013 2012 2011 2010 2009
Capital & Liabilities
Total Share Capital 475.88 469.34 465.23 457.74 425.38
Equity Share
475.88 469.34 465.23 457.74 425.38
Capital
Share Application
0 0.3 0 0 400.92
Money
Preference Share
0 0 0 0 0
Capital
Reserves 35,738.26 29,455.04 24,914.04 21,064.75 14,226.43
Revaluation
0 0 0 0 0
Reserves
Net Worth 36,214.14 29,924.68 25,379.27 21,522.49 15,052.73
Deposits 296,246.98 246,706.45 208,586.41 167,404.44 142,811.58
Borrowings 33,006.60 23,846.51 14,394.06 12,915.69 2,685.84
Total Debt 329,253.58 270,552.96 222,980.47 180,320.13 145,497.42
Other Liabilities &
34,864.17 37,431.87 28,992.86 20,615.94 22,720.62
Provisions
Total Liabilities 400,331.89 337,909.51 277,352.60 222,458.56 183,270.77
Assets
Total Share Capital 475.88 469.34 465.23 457.74 425.38
Equity Share
475.88 469.34 465.23 457.74 425.38
Capital

Abhirama B Sarepaka Page 50 of 112


Share Application
0 0.3 0 0 400.92
Money
Preference Share
0 0 0 0 0
Capital
Reserves 35,738.26 29,455.04 24,914.04 21,064.75 14,226.43
Revaluation
0 0 0 0 0
Reserves
Net Worth 36,214.14 29,924.68 25,379.27 21,522.49 15,052.73
Deposits 296,246.98 246,706.45 208,586.41 167,404.44 142,811.58
Borrowings 33,006.60 23,846.51 14,394.06 12,915.69 2,685.84
Total Debt 329,253.58 270,552.96 222,980.47 180,320.13 145,497.42
Other Liabilities &
34,864.17 37,431.87 28,992.86 20,615.94 22,720.62
Provisions
Total Liabilities 400,331.89 337,909.51 277,352.60 222,458.56 183,270.77
Total Share Capital 475.88 469.34 465.23 457.74 425.38

Table 1. Balance Sheet for HDFC Bank from 2008-09 till 2012-13 (values in crores)

March March March March March


2013 2012 2011 2010 2009
Income
Interest Earned 35,064.87 27,286.35 19,928.21 16,172.90 16,332.26
Other Income 6,852.62 5,243.69 4,335.15 3,983.10 3,470.63
Total Income 41,917.49 32,530.04 24,263.36 20,156.00 19,802.89
Expenditure
Interest expended 19,253.75 14,989.58 9,385.08 7,786.30 8,911.10
Employee Cost 3,965.38 3,399.91 2,836.04 2,289.18 2,238.20
Selling and Admin
0 2,647.25 2,510.82 3,395.83 2,851.26
Expenses
Depreciation 651.67 542.52 497.41 394.39 359.91

Abhirama B Sarepaka Page 51 of 112


Miscellaneous
11,320.41 5,873.42 5,205.97 3,169.12 3,197.49
Expenses
Preoperative Exp.
0 0 0 0 0
Capitalised
Operating Expenses 11,236.12 9,241.64 8,045.36 7,703.41 7,290.66
Provisions &
4,701.34 3,221.46 3,004.88 1,545.11 1,356.20
Contingencies
Total Expenses 35,191.21 27,452.68 20,435.32 17,034.82 17,557.96
Net Profit for the
6, 26.28 5, 167.09 3,926.40 2,948.70 2,244.94
Year
Extraordinary Items -4.47 -2.12 -2.65 -0.93 -0.59
Profit brought forward 8,399.65 6,174.24 4,532.79 3,455.57 2,574.63
Total 15,121.46 11,339.21 8,456.54 6,403.34 4,818.98
Preference Dividend 0 0 0 0 0
Equity Dividend 1,309.08 1,009.08 767.62 549.29 425.38
Corporate Dividend
222.48 163.7 124.53 91.23 72.29
Tax
Per Share data
(Annualized
Earnings Per Share
28.27 22.02 84.4 64.42 52.77
(Rs)
Equity Dividend (%) 275 215 165 120 100
Book Value (Rs) 152.2 127.52 545.53 470.19 344.44
Appropriations
Transfer to Statutory
1,785.08 1,250.08 997.52 935.15 641.25
Reserves
Transfer to Other
672.63 516.7 392.64 294.87 224.5
Reserves

Abhirama B Sarepaka Page 52 of 112


Proposed
Dividend/Transfer to 1,531.56 1,172.78 892.15 640.52 497.67
Govt.
Balance c/f to Balance
11,132.18 8,399.65 6,174.24 4,532.79 3,455.57
Sheet
Total 15,121.45 11,339.21 8,456.55 6,403.33 4,818.99

Table 2. Income Statement for the financial years 2008-09 until 2012-13

Based on the above information, it is possible to analyze and produce ratios with meaning.

CURRENT RATIO:

This ratio measures the degree of short-term liquidity of the bank. It indicates whether the
current assets are sufficient to meet the current liabilities. It is generally believed that a
good current ratio should be between 1.5:1 and 2:1.
Generally, higher the value of this ratio, greater will be the margin and financial solvency
of the bank.
Current Ratio = Current Assets / Current Liabilities

March March March March March


2013 2012 2011 2010 2009
current ratio=current assets
0.78 0.08 0.06 0.03 0.04
/current liabilities

Table 3. Current Ratio Values for the financial years 2008-09 until 2012-13

The current assets included in this study were cash in hand, balance with other banks
(current account only), short-term loan-advances and bills receivables, interest receivable,
sundry debtors. The current liabilities included deposit (current account only), short-term
borrowings (cash credit overdraft), interest payable, sundry creditors, bills payables and
other short-term liabilities.

Abhirama B Sarepaka Page 53 of 112


Current Ratio = Current Assets /Current Liabilities
1
0.78
0.8

0.6

0.4

0.2 0.08 0.03 0.04


0.06
0
Mar-13 Mar-12 Mar-11 Mar-10 Mar-09
current ratio=current assets /current liabilities

Figure 1. Current Ratio Values for the financial years 2008-09 until 2012-13
INTERPRETATION: Current ratio is gradually improving. It is very low (0.03) in the
year 2010 and high (0.78) in the year 2013. This is because the bank raised more current
account deposits (current liabilities) during the year 2010, which results in the lower
current ratio. Even though the current ratio is improving, it is not up to the mark (1.5:1 to
2:1) indicating the lower capacity to meet its short-term liabilities.

LIQUID ASSETS TO TOTAL ASSETS RATIO

The degree of liquidity performance adopted by the bank is depicted by this ratio.

Liquid Assets to Total Assets Ratio = Liquid Assets / Total Assets

March March March March March


2013 2012 2011 2010 2009
Liquid Assets to Total Assets Ratio
0.07 0.06 0.11 0.13 0.10
= Liquid Assets / Total Assets

Table 4. Liquid Assets to Total Assets Ratio for the Financial Years 2008-09 until 2012-
13.

Abhirama B Sarepaka Page 54 of 112


The liquid assets included cash in hand and balance with other banks (current account
only). Total assets included cash in hand, balance with other banks, investment, loan and
advances, fixed assets and other assets.

Liquid Assets to Total Assets Ratio = Liquid Assets / Total


Assets

Mar-09 0.1

Mar-10 0.13

Mar-11 0.11

Mar-12 0.06

Mar-13 0.07

0 0.02 0.04 0.06 0.08 0.1 0.12 0.14

Figure 2. Liquid Assets to Total Assets Ratio for the FY 2008-09 until 2012-13.
INTERPRETATION: Liquid Assets to Total Assets ratio increased from the year 2009
to 2011 and it was high (0.13) during 2010 because of the increase in money at call and
short notice during that period. The Liquidity Ratio gradually decreases and was very low
(0.06) in the year 2012 because of decrease in the maintenance of money with RBI and
very low maintenance of money at call and short-term notice.

ACID TEST RATIO

This ratio is called quick ratio or near money ratio. This represents the ratio between quick
assets and current liabilities and computed as follows

March March March March March


2013 2012 2011 2010 2009
Acid Test Ratio = Quick
7.97 6.2 6.79 7.03 5.15
Assets / Current Liabilities
Table 5. Acid Test Ratio for the financial years ending March 2009 until March 2013.

Abhirama B Sarepaka Page 55 of 112


Acid Test Ratio = Quick Assets / Current Liabilities

The quick assets included cash in hand and balance with other banks (current account only).
The current liabilities included deposit (current account only), interest payable, sundry
creditors, bills payables and other short-term liabilities. Excluded short term borrowings
(cash credit overdraft)

Acid Test Ratio = Quick Assets / Current Liabilities


10
9 7.97
8 7.03
6.79
7 6.2
6 5.15
5
4
3
2
1
0
Mar-13 Mar-12 Mar-11 Mar-10 Mar-09
Acid Test Ratio = Quick Assets / Current Liabilities

Figure 3. Acid Test Ratio for the financial years ending March 2009 until March 2013.

INTERPRETATION: Acid test ratio is increased from the year 2009 to 2010 and again
decreases during 2011 and 2012 and again increased in 2013.This is because of increase
in liquid assets(money at call and short notice) and decrease in current liabilities( interest
accrued) in 2010. It again decreases during 2011 and 2012 because of decrease in money
at call and short notice with other institutions.

Abhirama B Sarepaka Page 56 of 112


March March March March March
2013 2012 2011 2010 2009
Credit Deposit Ratio = Total
Loan and Advances / Total 35.99 78.06 76.02 72.44 66.64
Deposit

Table 6. Credit to Deposit Ratio for HDFC Bank for the Financial Years 2008-09 until
2012-2013.

Credit Deposit Ratio = Total Loan and Advances / Total


Deposit
100
72.44 76.02 78.06
80 66.64
60
35.99
40
20
0
Jan-09 Jan-10 Jan-11 Jan-12 Jan-13
Credit Deposit Ratio = Total Loan and Advances / Total Deposit

Figure 4. Credit to Deposit Ratio for HDFC Bank for the Financial Years 2008-09
until 2012-2013.

INTERPRETATION: Credit Deposit Ratio is increasing over the period indicating that
the bank is giving more loans from the deposited amount, which means that banks might
not have enough liquidity to cover any unforeseen fund requirements. This is because the
bank is increasing its cash credits, over drafts, loans repayable on demand components,
which may block the availability of fund.

Abhirama B Sarepaka Page 57 of 112


SOLVENCY RATIOS

These ratios indicate banks involvement in the total resources and provide basis for
measuring leverage ratio.

These ratios indicate the ability of the bank to meet its medium as well as long-term
obligations and provide the basis for measuring the leverage effect on the bank. The various
ratios employed were as follows:

DEBT-EQUITY RATIO

This ratio is called “leverage ratio‘. This compares the banks stake in the business with
outside term liabilities. Lower value of the ratio indicates that the leverage effect will be
restricted to the minor role of debt and major capital being equity, the bank is supposed to
be trading on thick equity.

Debt Equity Ratio = Long Term Liabilities / Net Worth

In the above ratio, debt represents only long-term liabilities and not current liabilities
(deposit- fixed, saving), while equity refers to net worth after deducting intangible assets.
Net worth includes statutory reserves, capital reserves, profits and other reserves and share
capital.

March March March March March


2013 2012 2011 2010 2009
Debt Equity Ratio = Long
Term Liabilities / Net 8.18 8.24 8.22 7.78 9.49
Worth

Table 7. Debt Equity Ratio for HDFC Bank for the Financial Years 2008-09 until 2012-
2013.

Abhirama B Sarepaka Page 58 of 112


Debt Equity Ratio = Long Term Liabilities / Net Worth
9.49
10 8.18 8.24 8.22 7.78
8
6
4
2
0
Mar-13 Mar-12 Mar-11 Mar-10 Mar-09

Figure 5. Debt Equity Ratio for HDFC Bank for the Financial Years 2008-09 until
2012-2013.

INTERPRETATION: In the financial year ending 31 March 2009, the Debt-Equity Ratio
was very high at 9.49. However, the ratio decreased to a low (7.78) in the year 2010 and
increased gradually because of high increase in capital reserve (additions during the year
and opening balance). In 2011, 2012 change in capital reserve is very less but liabilities are
increasing and in 2013, the company increased its capital reserve, which results in the
decrement (8.18), a good sign.

INDEBTEDNESS RATIO

The ratio indicates the amount owed by the bank to creditors. The ratio reflects the solvency
position of the bank in a better way. The lower the ratio, the better is the solvency position.

Indebtedness Ratio = Total Liabilities / Net Worth

March March March March March


2013 2012 2011 2010 2009
Indebtedness Ratio = Total
11.05 11.29 10.93 10.34 12.18
Liabilities / Net Worth

Abhirama B Sarepaka Page 59 of 112


Table 8. Indebtedness Ratio for HDFC Bank for the Financial Years 2008-09 until 2012-
2013.

The total liabilities included statutory reserves, capital reserves, revenue reserves, deposit,
borrowings, contingent liabilities, other liabilities and share capital.

Indebtedness Ratio = Total Liabilities / Net Worth

Mar-09 12.18
Mar-10 10.34
Mar-11 10.93
Mar-12 11.29
Mar-13 11.05

9 9.5 10 10.5 11 11.5 12 12.5

Figure 6. Indebtedness Ratio for HDFC Bank for the Financial Years 2008-09 until
2012-2013.

INTERPRETATION: In 2009, the indebted ratio is very high at 12.18, which means that
the net liabilities of the bank were much higher than they were in the subsequent years.
Indebtedness ratio is also low in 2010 and again increased in 2011 and 2012 and decreased
in the 2013 because of change in capital reserve and increase in liabilities.

FIXED ASSETS TO NET-WORTH RATIO

Fixed Assets to Net-Worth Ratio = Fixed Assets / Net Worth

March March March March March


2013 2012 2011 2010 2009
Fixed Assets to Net-Worth
Ratio = Fixed Assets / Net 9.90 9.93 9.22 8.69 10.64
Worth

Abhirama B Sarepaka Page 60 of 112


Table 9. Fixed Assets to Net Worth Ratio for HDFC Bank for the Financial Years 2008-09
until 2012-2013.

The fixed assets included balance with other banks (Fixed deposit account only),
investment, long-term loan and advance, building and furniture. Fixed assets are
considered at their book values (cost less depreciation).

Fixed Assets to Net-Worth Ratio = Fixed Assets / Net


Worth
20
9.9 9.93
10 9.22 10.64
8.69

0
Mar-13 Mar-12
Mar-11
Mar-10
Mar-09

Fixed Assets to Net-Worth Ratio = Fixed Assets / Net Worth

Figure 7. Fixed Assets to Net Worth Ratio for HDFC Bank for the Financial Years
2008-09 until 2012-2013.

INTERPRETATION: Fixed asset turn to net worth ratio is showing that Net worth is
frozen in the form of fixed assets in the year 2009. Later in the years 2011 & 2012 the bank
opened 558 new branches and 3400 new ATM‘s which required high infrastructure and
staffing expenses. These all shows that the bank is expanding more and it is resulting in
more assets and at the same time it also indicates the actual amount of fixed assets the bank
hold.

TESTS OF STRENGTH

This test provides a basis to know the real worth of the Bank. The term net-worth refers to
the owned funds employed in the business.

Abhirama B Sarepaka Page 61 of 112


NET WORTH

It indicates what the bank owes to the owners of the business. It measures the excess of
assets over outside liabilities, which indicates the soundness of the bank.

Net Worth = Total Assets – Total liabilities (Outside/ External).

March March March March March


2013 2012 2011 2010 2009
Net Worth =
Total Assets
– Total
362,141,373 299,246,800 253,792,700 215,224,900 150,527,300
liabilities
(Outside/
External)

Table 10. Net Worth for HDFC Bank for the Financial Years 2008-09 until 2012-2013.

Net Worth = Total Assets – Total liabilities (Outside/


External)
Mar-13,
400,000,000 362,141,373
Mar-12,
350,000,000 299,246,800 Mar-11,
300,000,000 253,792,700 Mar-10,
250,000,000 215,224,900
Mar-09,
200,000,000 150,527,300
150,000,000
100,000,000
50,000,000
0
Mar-13 Mar-12 Mar-11 Mar-10 Mar-09

Figure 8. Net Worth for HDFC Bank for the Financial Years 2008-09 until 2012-2013.

Abhirama B Sarepaka Page 62 of 112


INTERPRETATION: Net worth of the bank is increasing year to year which indicates
the soundness of the bank. Even though there is a positive sign in equity, the strength of
the net worth is frozen in the form of fixed assets in the year 2009 resulting in high (10.64).
The expansion of the bank in terms of number of new branches (558) and new ATMs
(3400) required high infrastructural and staffing expenses and hence the net worth of the
bank is low in the years 2011 and 2012.

NET CAPITAL RATIO:

The ratio indicates the degree of liquidity of the bank in the end. It measures the degree of
availability of assets to pay off the long term liabilities. This ratio indicates the relationship
between total assets and liabilities of the bank.
This ratio would throw light on the real financial strength of the bank.

Net Capital Ratio = Total Assets / Total liabilities (Outside/ External).

March March March March March


2013 2012 2011 2010 2009
Net Capital Ratio = Total
Assets / Total liabilities 1.099 1.097 1.101 1.107 1.089
(Outside/ External)

Table 11. Net Capital Ratio for HDFC Bank for the Financial Years 2008-09 until 2012-
2013.

Abhirama B Sarepaka Page 63 of 112


Net Capital Ratio = Total Assets / Total liabilities
(Outside/ External)

Mar-09 1.089
Mar-10 1.107
Mar-11 1.101
Mar-12 1.097
Mar-13 1.099

1.08 1.085 1.09 1.095 1.1 1.105 1.11

Figure 9. Net Capital Ratio for HDFC Bank for the Financial Years 2008-09 until 2012-
2013.

INTERPRETATION: Net Capital Ratio is high (1.107, 1.101) in 2010 and 2011 because
of increase in assets during these two years and is decreased in 2012 (1.097) and again
increased in 2013 (1.099) indicating the increase in external and outside liabilities.

PROFITABILITY RATIOS

These ratios were used to compare the return to the investment. Following were the
important ratios computed. This ratio provides a sound method of diagnosis of the financial
status and overall efficiency of the Bank. It indicates the profitability of the investment and
credit given by the bank.

NET PROFIT TO TOTAL ASSETS RATIO

This is ratio of profit on total assets of the bank and their employment. An increasing
trend over the years indicates the overall efficiency of the bank.

Net profit to Total Assets Ratio = Net Profit / Total Assets.

Abhirama B Sarepaka Page 64 of 112


March March March March March
2013 2012 2011 2010 2009
Return on Equity
(ROE) = net profit/ 18.57% 17.27% 15.47% 13.70% 14.91%
total equity.

Table 12. Returns on Equity Ratio for HDFC Bank for the Financial Years 2008-09 until
2012-2013.

Return on Equity (ROE) = net profit/ total equity.


Mar-13, Mar-12,
18.57% 17.27% Mar-11, Mar-09,
20.00% 15.47% Mar-10, 14.91%
13.70%
15.00%

10.00%

5.00%

0.00%
Mar-13 Mar-12 Mar-11 Mar-10 Mar-09

Figure 10. Returns on Equity Ratio for HDFC Bank for the Financial Years 2008-09
until 2012-2013.

NET PROFIT TO TOTAL ASSETS RATIO

This is ratio of profit on total assets of the bank and their employment. An increasing
trend over the years indicates the overall efficiency of the bank.

Net profit to Total Assets Ratio = Net Profit / Total Assets.

Abhirama B Sarepaka Page 65 of 112


March March March March March
2013 2012 2011 2010 2009
Net profit to Total
Assets Ratio = Net 0.017 0.015 0.014 0.013 0.012
Profit / Total Assets

Table 13. Net Profit to Total Assets Ratio for HDFC Bank for the Financial Years 2008-
09 until 2012-2013.

Net profit to Total Assets Ratio = Net Profit / Total Assets

0.017
0.018
0.015
0.016 0.014
0.013
0.014 0.012
0.012
0.01
0.008
0.006
0.004
0.002
0
Mar-13 Mar-12 Mar-11 Mar-10 Mar-09

Figure 11. Net Profit to Total Assets Ratio for HDFC Bank for the Financial Years
2008-09 until 2012-2013.

INTERPRETATION: Net Profit to total asset ratio in indicating the increasing trend that
reveals that the company is using its assets efficiently for generating the profits.

NET PROFIT TO NET WORTH RATIO

The ratio of net profit to net worth shows whether profitability is being maintained or not.

Net Profit to Net Worth Ratio = Net Profit / Net Worth.

Abhirama B Sarepaka Page 66 of 112


March March March March March
2013 2012 2011 2010 2009
Net Profit to Net
Worth Ratio = Net 0.186 0.173 0.155 0.137 0.149
Profit / Net Worth

Table 14. Net Profit to Net Worth Ratio for HDFC Bank for the Financial Years 2008-09
until 2012-2013.

Net Profit to Net Worth Ratio = Net Profit / Net Worth

0.2 0.186
0.173
0.18 0.155 0.149
0.16 0.137
0.14
0.12
0.1
0.08
0.06
0.04
0.02
0
Mar-13 Mar-12 Mar-11 Mar-10 Mar-09

Figure 12. Net Profit to Net Worth Ratio for HDFC Bank for the Financial Years
2008-09 until 2012-2013.

INTERPRETATION: Return On Equity is low (13.70) in 2010 because of high capital


reserves and less change in net profit from 2009 and it is increasing from 2010 because of
less change in capital reserve and high increase in net profits.

NET PROFIT TO FIXED ASSETS RATIO

The ratio indicates whether the fixed assets are, being used profitability. A decline in the
ratio shows that either the assets are being kept idle or the business conditions are bad.

Abhirama B Sarepaka Page 67 of 112


Net Profit to Fixed Assets Ratio = Net Profit / Fixed Assets

March March March March March


2013 2012 2011 2010 2009
Net Profit to Fixed
1.875E- 1.73916E- 1.6775E- 1.5773E- 1.402E-
Assets Ratio = Net
06 06 06 06 06
Profit / Fixed Assets

Table 15. Net Profit to Fixed Assets Ratio for HDFC Bank for the Financial Years 2008-
09 until 2012-2013.

Net Profit to Fixed Assets Ratio = Net Profit / Fixed Assets


1.88E-06
2.00E-06 1.74E-06 1.68E-06 1.58E-06
1.40E-06
1.50E-06
1.00E-06
5.00E-07
0.00E+00
Mar-13 Mar-12 Mar-11 Mar-10 Mar-09

Figure 13. Net Profit to Fixed Assets Ratio for HDFC Bank for the Financial Years
2008-09 until 2012-2013.

INTERPRETATION: Net profit to fixed assets indicates the positive trend showing that
the company is utilizing the assets effectively.

EFFICIENCY RATIOS

This test provides a clear picture of financial efficiency of the bank. It indicates the profits
for every rupee spent.
Four ratios were adopted to assess the efficiency of the bank, viz., Gross Ratio, Operating
Ratio, Management Ratio and Establishment Ratio.

Abhirama B Sarepaka Page 68 of 112


GROSS RATIO

This ratio helps to ascertain how efficiently the gross income of the bank was earned. The
ratio was computed as follows.

Gross Ratio = Total Expenses / Gross Income

The gross income included interest and discount, commission and brokerage and other
income. The total expenses included interest, salary, allowance, rent, legal expenses, audit
expenses and other provisions.

March March March March March


2013 2012 2011 2010 2009
Gross Ratio
= Total
Expenses / 0.840 0.842 0.839 0.852 0.887
Gross
Income

Table 16. Gross Ratio for HDFC Bank for the Financial Years 2008-09 until 2012-2013.

Gross Ratio = Total Expenses / Gross Income

Mar-09 Mar-09, 0.887

Mar-10 Mar-10, 0.852

Mar-11 Mar-11, 0.839

Mar-12 Mar-12, 0.842

Mar-13 Mar-13, 0.84

0.81 0.82 0.83 0.84 0.85 0.86 0.87 0.88 0.89


Figure 14. Gross Ratio for HDFC Bank for the Financial Years 2008-09 until 2012-
2013.

Abhirama B Sarepaka Page 69 of 112


INTERPRETATION: Gross ratio is high (0.887) in the year 2009 due to higher expansion
in the branch network and amalgamation of centurion bank which results in the large
amount of expenses and the ratio increased again in 2012 (0.844) because of expansion of
network from 2544 to 3062 branches and increase in ATM‘s from 8,913 to 10,743.

OPERATING RATIO

This ratio indicates the proportion of gross income being used for meeting the operating
expenses. An increase in the ratio indicates a decline in the efficiency of the bank.

Operating Ratio = Operating Expenses / Gross Income

The operating expenses included interest, salary; allowances, provident fund contribution,
rent, legal expenses, audit expenses and other expenses (excluded provisions).

March March March March March


2013 2012 2011 2010 2009
Operating
Ratio =
Operating
0.268 0.283 0.330 0.385 0.368
Expenses /
Gross
Income

Table 17. Operating Ratio for HDFC Bank for the Financial Years 2008-09 until 2012-
2013.

Operating Ratio = Operating Expenses / Gross Income

0.368 0.385
0.4 0.33
0.283 0.268
0.3

0.2

0.1

0
Jan-09 Jan-10 Jan-11 Jan-12 Jan-13
Figure 15. Operating Ratio for HDFC Bank for the Financial Years 2008-09 until
2012-2013.

Abhirama B Sarepaka Page 70 of 112


INTERPRETATION: Operating Ratio is high during 2010 (0.382) because of increase
in payments and provisions to employees, stationary items, advertisement and publicity
during the year and it is decreased to 0.268 in 2013 due to less change in expenses and
higher increase of gross income.

MANAGEMENT RATIO

This ratio indicates the proportion of gross income being used for meeting the management
expenses. An increase in the ratio indicates a decline in the efficiency of the bank.

Management Ratio = Management Expenses / Gross Income

The management expenses included salary; allowances, provident fund contribution, rent,
legal expenses, audit expenses and other expenses (excluded provisions).

March March March March March


2013 2012 2011 2010 2009
Management
Ratio =
Management 0.116 0.128 0.144 0.144 0.141
Expenses /
Gross Income

Table 18. Management Ratio for HDFC Bank for the Financial Years 2008-09 until 2012-
2013.

Management Ratio = Management Expenses / Gross


Income
Mar-09 0.141

Mar-10 0.144

Mar-11 0.144

Mar-12 0.128

Mar-13 0.116

0 0.02 0.04 0.06 0.08 0.1 0.12 0.14 0.16


Figure 16. Management Ratio for HDFC Bank for the Financial Years 2008-09 until
2012-2013.

Abhirama B Sarepaka Page 71 of 112


INTERPRETATION: Management ratio is high (0.144) in 2010 and 2011 because of
increase in salary expense as the employees increased due to the expansion of the branches
to semi urban areas. It gradually decreased as the company maintained its expenses and
increased its gross income.

ESTABLISHMENT RATIO

This ratio indicates the proportion of gross income being used for meeting the
establishment expenses. An increase in the ratio indicates a decline in the efficiency of the
bank.

Establishment Ratio = Establishment Expenses / Gross Income.

March March March March March


2013 2012 2011 2010 2009
Establishment
Ratio =
Establishment 0.095 0.105 0.117 0.115 0.114
Expenses /
Gross Income

Table 18. Establishment Ratio for HDFC Bank for the Financial Years 2008-09 until 2012-
2013.

Establishment Ratio = Establishment Expenses / Gross


Income
0.15 0.117
0.105 0.115 0.114
0.095
0.1

0.05

0
Mar-13 Mar-12 Mar-11 Mar-10 Mar-09
Establishment Ratio = Establishment Expenses / Gross Income

Figure 17. Establishment Ratio for HDFC Bank for the Financial Years 2008-09 until
2012-2013.

Abhirama B Sarepaka Page 72 of 112


INTERPRETATION: Establishment ratio is high during the years 2010 2011 and 2012
because of huge expansion of the bank increase in costs like employee salaries and others
but the bank is gradually decreasing the expenses by generating more income in 2013.

DUPONT ANALYSIS

DuPont analysis tells us that three things affect ROE: - Operating efficiency, which is
measured by profit margin. - Asset use efficiency, which is measured by total asset
turnover. - Financial leverage, which is measured by the equity multiplier.

ROE = Profit Margin (Profit/Sales) * Total Asset Turnover (Sales/Assets) * Equity


Multiplier (Assets/Equity)

Figure 18. Values for HDFC Bank for DuPont Analysis for the Financial Years 2008-
09 until 2012-2013.

DuPont Financial Analysis Model is a rather straightforward method for assessing the
factors that influence a firm‘s financial performance.

S. March March March March March


Particulars
No. 2013 2012 2011 2010 2009
Average
1. 400,331.90 337,909.49 277,352.61 222,458.56 183,270.78
Assets

Abhirama B Sarepaka Page 73 of 112


Average
2. 36,214.14 29,924.68 25,379.27 21,522.49 15,052.73
Equity
Interest
3. 35,064.87 27,286.35 19,928.21 16,172.90 16,332.26
Revenue
Noninterest
4. 6,852.62 5,243.69 4,335.15 3,983.10 3,470.63
Revenue
5. Net Income 6,726.28 5,167.09 3,926.40 2,948.70 2,244.94

Table 20. Values for HDFC Bank for DuPont Analysis for the Financial Years 2008-09
until 2012-2013.

March March March March March


2013 2012 2011 2010 2009
Return On
(5/2) ROE 0.1857 0.172 0.154 0.137 0.149
Average Equity
Return On
(5/1) ROA 0.0168 0.015 0.014 0.013 0.012
Average Assets
Equity
(1/2) EM 11.0546 11.29 10.92 10.33 12.17
Multiplier
Net Profit
(5/(3+4)) NPM 0.1605 0.158 0.161 0.146 0.113
Margin
Average Total
((3+4)/1) ATAT 0.1047 0.096 0.087 0.090 0.108
Asset Turn Over

Table 21. DuPont Analysis Figures for the Financial Years 2008-09 until 2012-2013.

Return on Equity (ROE): measures overall profitability of the financial institute per rupee
of equity

Return on Assets (ROA): measures profit generated relative to the financial institute’s
assets.

Abhirama B Sarepaka Page 74 of 112


Equity Multiplier (EM): measures the extent to which assets of the financial institute are
funded with equity relative to debt.

Profit Margin (PM): measures the ability to pay expenses and generate net income from
interest and noninterest income.

Asset Utilization (AU): measures the amount of interest and noninterest income generated
per dollar of total assets.

Return on Equity and Its Components

ROE is defined as:


ROE= Net income ___
Total equity capital

It measures the amount of net income after taxes earned for each Rupee of equity capital
contributed by the bank‘s stockholders. Taking these data from the financial statements of
HDFC bank, ROE can be calculated into values as mentioned above in the table.

Generally, bank stockholders prefer ROE to be high. It is possible; however, that an


increase in ROE indicates increased risk. For example, ROE increases if total equity capital
decreases relative to net income. A large drop in equity capital may result in a violation of
minimum regulatory capital standards and an increased risk of insolvency for the bank. An
increase in ROE may simply result from an increase in a bank‘s leverage—an increase in
its debt-to-equity ratio.

Generally, bank stockholders prefer ROE to be high.

ROE can be decomposed into two components as

ROE = ROA x EM

Abhirama B Sarepaka Page 75 of 112


ROA = Net Income X Total Assets

Total Assets Equity Capital

High values for these ratios produce high ROEs, but, as noted, managers should be
concerned about the source of high ROEs. For example, an increase in ROE due to an
increase in the EM means that the bank‘s leverage, and therefore its solvency risk, has
increased. A further breakdown of a bank‘s profitability is that of dividing (ROA) into its
profit margin (PM) and asset utilization (AU) ratio components

ROA= Net income X Total operating income

Total operating income Total assets


ROA= PM X AU
PM measures the bank‘s ability to control the expenses. AU measures the bank‘s ability to
generate the income from assets.

INTERPRETATION: The overall ROE of the bank is increasing which is a good sign. In
2009, ROE is 14.9% gradually it increases and recorded highest in the year 2013 (18.57).
At the same time EM is fluctuating and decreased from 2009 (12.17) to 2010 (10.33) and
again it increased in the year 2013 (11.054). This indicates that because of high expansion
bank has experienced some decrease during those years and now it is able to have control
over the assets. All the other components are indicating the soundness of the bank.

Abhirama B Sarepaka Page 76 of 112


TIME MOTION STUDIES

Time motion studies have helped identify the efficiency of the counters under consideration
by timing the activities of the counters for three consecutive days.

Average Time duration for Transaction of 2 counters on three consecutive days


16-6-14- 16-6-14- 17-6-14- 17-6-14- 18-6-14- 18-6-14-
A B A B A B
Cash Deposits 03:46.1 02:43.5 03:56.4 02:43.8 03:58.0 02:56.4
Cheques
03:33.5 04:52.7 04:24.4 03:27.6 04:15.7 03:48.9
Encashment
Cheques Deposit 02:40.8 01:36.0 02:49.8 02:03.2 02:29.1 01:47.0

Table 22. Average Time per transaction of two counters on three consecutive days as part
of Time Motion Studies.

Average Time per Transaction at 2 counters and their cumulative average time.
Counter A 03:35.1
Counter B 02:51.6
Average 03:13.3

Table 23. Cumulative Average Time per transaction for each counter as part of Time
Motion Studies.

Average Time for Cash Deposit


04:19.2
Average Time

03:36.0
02:52.8
02:09.6
01:26.4
00:43.2
00:00.0
16-6- 16-6- 17-6- 17-6- 18-6- 18-6-
14-A 14-B 14-A 14-B 14-A 14-B
Average Time for Cash Deposit 03:46.1 02:43.5 03:56.4 02:43.8 03:58.0 02:56.4
Transaction Date & Counter

Figure 19. Graphical representation of the average time for cash deposits at two counters
as part of Time Motion Studies.

Abhirama B Sarepaka Page 77 of 112


Average Time for Cheque Deposit
03:36.0

02:52.8
Average Time

02:09.6

01:26.4

00:43.2

00:00.0
16-6- 16-6- 17-6- 17-6- 18-6- 18-6-
14-A 14-B 14-A 14-B 14-A 14-B
Average Time for Cheque Deposit 02:40.8 01:36.0 02:49.8 02:03.2 02:29.1 01:47.0
Transaction Date & Counter

Figure 20. Graphical representation of the average time for Cheques Deposits at two
counters as part of Time Motion Studies.

Average Time for Cheque Encashment


05:45.6
05:02.4
04:19.2
Average Time

03:36.0
02:52.8
02:09.6
01:26.4
00:43.2
00:00.0
16-6-14- 16-6-14- 17-6-14- 17-6-14- 18-6-14- 18-6-14-
A B A B A B
Average Time for Cheque
03:33.5 04:52.7 04:24.4 03:27.6 04:15.7 03:48.9
Encashment
Transaction Date & Counter

Figure 21. Graphical representation of the average time for Cheques Encashment at two
counters as part of Time Motion Studies.

From the above tables and graphs, it is evident that Counter-A is better performing than
Counter-B and that the average time for cheques deposit is lower than that for cash deposits
or cheques encashment. Cheques encashment occupies the most time or any of the
transactions. Counter-B is more consistent in time consumed for individual transaction.
Furthermore, on comparison of the variations of times for the transactions at the counters,
it is observed that Counter-A shows more inter-day variations than Counter-B.

Abhirama B Sarepaka Page 78 of 112


In addition when seen as in relation with the footfall studies data, one can draw conclusions
that both counters encounter the most transactions on Monday followed by Tuesday and
decreases to a minimum on Wednesday. Furthermore, Counter-B handles a higher volume
of the footfall as compared to Counter-A. The detailed data can be found in the annexures
I & II.

FOOTFALL STUDIES

Footfall studies are a wonderful tool to analyze the flow of customers into the bank on a
particular day. These studies were conducted at the bank from Monday to Friday and for
the duration of the banking hours of 10am until 4pm.

The table below shows the number of customers who come to the tellers in HDFC Bank
Sector 9 Chandigarh during a usual business week. The duration of observation was from
Monday to Friday.

10- 11- 12- 1- 2- 3- Daily


11am 12pm 1pm 2pm 3pm 4pm Total
24-06-14 Tuesday 19 17 13 8 6 11 74
25-06-14 Wednesday 12 23 14 10 8 7 74
26-06-14 Thursday 8 11 16 7 12 11 65
27-06-14 Friday 11 15 25 17 11 13 92
30-06-14 Monday 14 20 21 23 16 12 106

Table 24. Footfall on 5 working days during business hours at the Counter: Tellers and the
respective Daily total footfall.

From the data above, it is clear that the busiest days for the tellers are Monday, Tuesday
and Friday. The total footfall is identical on Tuesday and Wednesday, decreases on
Thursday and peaks on Friday and Monday. However, the hour-to-hour footfall is varied
and the general trend is of a busier morning half as compared to a relaxed afternoon half
of the business hours.

Abhirama B Sarepaka Page 79 of 112


Foot Fall at Tellers over 5 working days during Business
Hours
23 25
30 1917 202123
Foot Fall 20 13 11 12 1410
16
12 15 17 13 14 16
12
86 87 8 11 7 11 11 11
10
0
6/24/2014 6/25/2014 6/26/2014 6/27/2014 6/30/2014
Dates of Observation

10-11am 11-12pm 12-1pm 1-2pm 2-3pm 3-4pm

Figure 22. Graphical representation of the Footfall at the Teller counters during business
hours on 5 working days and categorization as per date.

The above graph corroborates the data table given above further enforcing the point that
the teller counters encounter the most footfall on Monday, Tuesday and Friday. The above
data also confirms the data collected during the time motion studies that most influx of
customers is on Monday followed by Tuesday and the least on Wednesday.

Foot Fall at Tellers over 5 working days during Business


Hours
25
23 23
25 20 21
19
20 17 16 17 16
14 15
1314
Foot Fall

12 11 1211 13
15 11 10 11 11 12
8 8 7 8 7
10 6
5
0
10-11am 11-12pm 12-1pm 1-2pm 2-3pm 3-4pm
Hours of Observation

24-06-14 25-06-14 26-06-14 27-06-14 30-06-14

Figure 23. Graphical representation of the Footfall at the Teller counters during business
hours on 5 working days and categorization as per hour of operation.

The above graph is another aspect of interpreting the data collected in the table given above.
It can be observed distinctly that the busiest hours of business are from 11am until 1pm.

Abhirama B Sarepaka Page 80 of 112


The number of customers visiting the teller counters are consistently on the higher side
during the business hours of 11am until 1pm. Furthermore, the inflow of customers to the
counters diminishes quite rapidly from 1pm onwards.

The general inflow of customers at the tellers is high during on Monday, Tuesday and
Friday with the lowest footfall on Wednesday.

10- 11- 12- 1- 2- 3- Daily


11am 12pm 1pm 2pm 3pm 4pm Total
24-06-14 Tuesday 5 4 4 4 2 4 23
25-06-14 Wednesday 10 5 6 7 3 4 35
26-06-14 Thursday 5 7 8 4 5 7 36
27-06-14 Friday 6 5 11 10 6 7 45
30-06-14 Monday 9 8 11 8 8 5 49

Table 25. Footfall on 5 working days during business hours at the Counter: Welcome Desk
and the respective Daily total footfall.

Foot Fall at Welcome Desk over 5 working days during


Business Hours
11 11
12 10 10
9
10 8 8 8 8
7 7 7 7
Foot Fall

8 6 6 6
5 5 5 5 5 5
6 4 4 4 4 4 4
3
4 2
2
0
6/24/2014 6/25/2014 6/26/2014 6/27/2014 6/30/2014
Dates of Observation

10-11am 11-12pm 12-1pm 1-2pm 2-3pm 3-4pm

Figure 24. Graphical representation of the Footfall at the Welcome Desk counter during
business hours on 5 working days and categorization as per Date.

Abhirama B Sarepaka Page 81 of 112


Foot Fall at Welcome Desk over 5 working days during
Business Hours
1111
12 10 10
9
10 8 8 8 8
7 7 7 7
Foot Fall

8 6 6 6
5 5 5 5 5 5
6 4 4 4 4 4 4
3
4 2
2
0
10-11am 11-12pm 12-1pm 1-2pm 2-3pm 3-4pm
Hours of Observation

24-06-14 25-06-14 26-06-14 27-06-14 30-06-14

Figure 25. Graphical representation of the Footfall at the Welcome Desk counter during
business hours on 5 working days and categorization as per hour of operation.

The general trend of the footfall at the welcome desk is of progressive increase to the end
of week and the inflow of customers to the welcome desk is uniformly higher on Friday as
compared to the other days of the week. The number of customers at the beginning of the
week is low as well as uniform throughout the day. However, on Friday and on Monday,
the number of customers is highest during 12 and 1pm. Moreover, on Friday, the number
of customers is consistently around the high mark during the business hour of 1 & 2pm. It
may be seen that the influx of customers during last business hour is very low on all the
days of observation.
10- 11- 12- 1- 2- 3- Daily
11am 12pm 1pm 2pm 3pm 4pm Total
24-06-14 Tuesday 3 2 1 2 0 0 8
25-06-14 Wednesday 1 1 0 2 0 0 4
26-06-14 Thursday 0 0 1 1 1 1 4
27-06-14 Friday 0 1 1 1 1 0 4
30-06-14 Monday 0 1 1 1 1 0 4

Abhirama B Sarepaka Page 82 of 112


Table 26. Footfall on 5 working days during business hours at the Counter: Asset Desk
Management and the respective Daily total footfall.

Foot Fall at ADM Counter over 5 working days during


Business Hours
3
3

2.5
2 2 2
2
Foot Fall

1.5
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
1

0.5
0 0 0 0 0 0 0 0 0 0 0
0
6/24/2014 6/25/2014 6/26/2014 6/27/2014 6/30/2014
Dates of Observation

10-11am 11-12pm 12-1pm 1-2pm 2-3pm 3-4pm

Figure 26. Graphical representation of the Footfall at the Asset Desk Management counter
during business hours on 5 working days and categorization as per Date.

Foot Fall at ADM Counter over 5 working days during


Business Hours
3
3
2.5 2 2 2
Foot Fall

2
1.5 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
1
0.5 0 0 0 0 0 0 0 0 0 0 0
0
10-11am 11-12pm 12-1pm 1-2pm 2-3pm 3-4pm
Hours of Observation

24-06-14 25-06-14 26-06-14 27-06-14 30-06-14

Figure 27. Graphical representation of the Footfall at the Asset Desk Management counter
during business hours on 5 working days and categorization as per hour of operation.

Abhirama B Sarepaka Page 83 of 112


The footfall at the ADM counter is uniform on all days of the week. In addition, there is
no footfall during 3 & 4pm on almost all the days of observation. In addition, there is about
one customer per hour at the ADM counter.

10- 11- 12- 1- 2- 3- Daily


11am 12pm 1pm 2pm 3pm 4pm Total
24-06-14 Tuesday 3 1 1 1 1 2 9
25-06-14 Wednesday 1 1 0 1 0 0 3
26-06-14 Thursday 0 1 3 1 1 1 7
27-06-14 Friday 1 0 0 0 1 2 4
30-06-14 Monday 0 0 0 0 1 1 2

Table 27. Footfall on 5 working days during business hours at the Counter: Assistant
Branch Manager and the respective Daily total footfall.

Foot Fall at ABM Counter over 5 working days during


Business Hours
3 3
3
2.5 2 2
Foot Fall

2
1.5 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
1
0.5 0 0 0 0 0 0 0 0 0 0 0
0
6/24/2014 6/25/2014 6/26/2014 6/27/2014 6/30/2014
Dates of Observation

10-11am 11-12pm 12-1pm 1-2pm 2-3pm 3-4pm

Figure 28. Graphical representation of the Footfall at the Assistant Branch Manager counter
during business hours on 5 working days and categorization as per Date.

Abhirama B Sarepaka Page 84 of 112


Foot Fall at ABM Counter over 5 working days during
Business Hours
3 3
3
2.5 2 2
Foot Fall

2
1.5 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
1
0.5 0 0 0 0 0 0 0 0 0 0 0
0
10-11am 11-12pm 12-1pm 1-2pm 2-3pm 3-4pm
Hours of Observation

24-06-14 25-06-14 26-06-14 27-06-14 30-06-14

Figure 29. Graphical representation of the Footfall at the Assistant Branch Manager counter
during business hours on 5 working days and categorization as per hour of operation.

Here also, as in the case of the ADM counter, the ABM counter also sees very low volumes
of customers. The footfall at the ABM counter is on an average one customer per business
hour throughout the days of observation. However, it is noteworthy to observe that three is
a higher consistency in the influx of customers during the last hour of the working hours
of the bank. Another point to note is the lack of customer at the ABM on a Monday between
10am and 2pm.

10- 11- 12- 1- 2- 3- Daily


11am 12pm 1pm 2pm 3pm 4pm Total
24-06-14 Tuesday 1 2 1 0 0 1 5
25-06-14 Wednesday 2 1 1 0 0 2 6
26-06-14 Thursday 0 1 1 1 1 1 5
27-06-14 Friday 0 1 2 1 0 0 4
30-06-14 Monday 0 1 0 1 2 0 4

Table 28. Footfall on 5 working days during business hours at the Counter: New Accounts
and the respective Daily total footfall.

Abhirama B Sarepaka Page 85 of 112


Foot Fall at New Accounts over 5 working days during
Business Hours
2 2 2 2 2
2
Foot Fall

1.5 1 1 1 1 1 1 1 1 1 1 1 1 1 1
1
0.5 0 0 0 0 0 0 0 0 0 0 0
0
6/24/2014 6/25/2014 6/26/2014 6/27/2014 6/30/2014
Dates of Observation

10-11am 11-12pm 12-1pm 1-2pm 2-3pm 3-4pm

Figure 30. Graphical representation of the Footfall at the New Account counter during
business hours on 5 working days and categorization as per Date.

Foot Fall at New Accounts over 5 working days during


Business Hours
2 2 2 2 2
2
1.5
Foot Fall

1 1 1 1 1 1 1 1 1 1 1 1 1 1
1
0.5
0 0 0 0 0 0 0 0 0 0 0
0
10-11am 11-12pm 12-1pm 1-2pm 2-3pm 3-4pm
Hours of Observation

24-06-14 25-06-14 26-06-14 27-06-14 30-06-14

Figure 31. Graphical representation of the Footfall at the New Account counter during
business hours on 5 working days and categorization as per hour of operation.

Again, the trend of the footfall at the New Accounts counter is virtually identical to those
seen with the ADM and the ABM counters. There is on average one customer per business
hour throughout on the days of observation of the New Accounts counter. Furthermore, it

Abhirama B Sarepaka Page 86 of 112


is seen that during the initial hour of the bank’s operations i.e. 10am to 11am there is
sporadic footfall. However, from 11am onwards the footfall is consistent with a slight dip
around 1pm.

In addition, there is no specific hoard of customers on any day during the week. There is
regular influx of customers to the tune of 4-5 customers per day.

10- 11- 12- 1- 2- 3- Daily


11am 12pm 1pm 2pm 3pm 4pm Total
24-06-14 Tuesday 2 1 1 1 0 1 6
25-06-14 Wednesday 1 0 0 1 2 0 4
26-06-14 Thursday 0 1 1 1 1 1 5
27-06-14 Friday 0 1 0 1 1 0 3
30-06-14 Monday 0 0 2 0 1 1 4

Table 29. Footfall on 5 working days during business hours at the Counter: Current
Accounts and the respective Daily total footfall.

Foot Fall at Currrent Accounts over 5 working days during


Business Hours
2 2 2
2
Foot Fall

1.5 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
1
0.5 0 0 0 0 0 0 0 0 0 0 0
0
6/24/2014 6/25/2014 6/26/2014 6/27/2014 6/30/2014
Dates of Observation

10-11am 11-12pm 12-1pm 1-2pm 2-3pm 3-4pm

Figure 32. Graphical representation of the Footfall at the Current Accounts counter during
business hours on 5 working days and categorization as per Date.

Abhirama B Sarepaka Page 87 of 112


Foot Fall at Current Accounts over 5 working days during
Business Hours
2 2 2
2
1.5
Foot Fall

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
1
0.5
0 0 0 0 0 0 0 0 0 0 0
0
10-11am 11-12pm 12-1pm 1-2pm 2-3pm 3-4pm
Hours of Observation

24-06-14 25-06-14 26-06-14 27-06-14 30-06-14

Figure 33. Graphical representation of the Footfall at the Current Accounts counter during
business hours on 5 working days and categorization as per hour of operation.

Yet again, it can be seen that the trend of the footfall at the Current Accounts counter is
essentially indistinguishable to those seen with the New Accounts, ADM and the ABM
counters. There is on average one customer per business hour throughout on the days of
observation of the New Accounts counter. Furthermore, it is seen that during the initial
hour of the bank’s operations i.e. 10am to 11am there is intermittent footfall.

In addition, there is no specific hoard of customers on any day during the week. There is
regular influx of customers to the tune of 4-5 customers per day. However, it can be seen
that the footfall on a Friday is least with customers preferring to walk in after the lunchtime.
Furthermore, Thursday sees the most consistent entry of customers.

10- 11- 12- 1- 2- 3- Daily


11am 12pm 1pm 2pm 3pm 4pm Total
24-06-14 Tuesday 1 0 1 0 1 1 4
25-06-14 Wednesday 1 0 0 0 0 0 1
26-06-14 Thursday 0 0 0 1 1 1 3
27-06-14 Friday 0 0 2 0 0 0 2

Abhirama B Sarepaka Page 88 of 112


30-06-14 Monday 1 0 1 0 0 1 3

Table 30. Footfall on 5 working days during business hours at the Counter: PB Authorizer-
1 and the respective Daily total footfall.

Foot Fall at PB Authorizer-1 over 5 working days during


Business Hours
2
2
Foot Fall

1.5 1 1 1 1 1 1 1 1 1 1 1
1
0.5 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0
6/24/2014 6/25/2014 6/26/2014 6/27/2014 6/30/2014
Dates of Observation

10-11am 11-12pm 12-1pm 1-2pm 2-3pm 3-4pm

Figure 34. Graphical representation of the Footfall at the PB Authorizer-1 counter during
business hours on 5 working days and categorization as per Date.

Foot Fall at PB Authorizer-1 over 5 working days during


Business Hours
2
2
1.5
Foot Fall

1 1 1 1 1 1 1 1 1 1 1
1
0.5
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0
10-11am 11-12pm 12-1pm 1-2pm 2-3pm 3-4pm
Hours of Observation

24-06-14 25-06-14 26-06-14 27-06-14 30-06-14

Figure 35. Graphical representation of the Footfall at the PB Authorizer-1 counter during
business hours on 5 working days and categorization as per hour of operation.

Abhirama B Sarepaka Page 89 of 112


From the data and graphs, it is evident that there is essentially no footfall during the period
of 11am until 12pm. Furthermore, from 1pm until 2 pm the footfall is again negligible. In
addition, there is negligible footfall on Wednesday and for half of Thursday. On Friday
there is again, only two individuals have called upon the PB Authorizer-1. Even on an
average, the number of individuals walking to the PB Authorizer-1 has been at best
sporadic and consistently low.

10- 11- 12- 1- 2- 3- Daily


11am 12pm 1pm 2pm 3pm 4pm Total
24-06-14 Tuesday 1 0 1 0 1 1 4
25-06-14 Wednesday 1 0 0 0 0 0 1
26-06-14 Thursday 0 0 0 1 1 1 3
27-06-14 Friday 0 0 2 0 0 0 2
30-06-14 Monday 1 0 1 0 0 1 3

Table 31. Footfall on 5 working days during business hours at the Counter: Locker
Operations and the respective Daily total footfall.

Foot Fall at Locker Operations over 5 working days during


Business Hours
2
2
Foot Fall

1.5 1 1 1 1 1 1 1 1 1 1 1
1
0.5 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0
6/24/2014 6/25/2014 6/26/2014 6/27/2014 6/30/2014
Dates of Observation

10-11am 11-12pm 12-1pm 1-2pm 2-3pm 3-4pm

Figure 36. Graphical representation of the Footfall at the Locker Operations counter during
business hours on 5 working days and categorization as per Date.

Abhirama B Sarepaka Page 90 of 112


Foot Fall at Locker Operations over 5 working days during
Business Hours
2
2
1.5
Foot Fall

1 1 1 1 1 1 1 1 1 1 1
1
0.5
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0
10-11am 11-12pm 12-1pm 1-2pm 2-3pm 3-4pm
Hours of Observation

24-06-14 25-06-14 26-06-14 27-06-14 30-06-14

Figure 37. Graphical representation of the Footfall at the Locker Operations counter during
business hours on 5 working days and categorization as per hour of operation.

The data indicates that the average footfall for locker operations in the bank is about one
person per hour per day. It is also seen that there is no influx of customers for locker
operations from 11am until 12pm. In addition, very rarely customers come to operate their
lockers from 1pm until 2pm. Even at other times during the day, the inflow is erratic.
Furthermore, the footfall on Wednesday and Friday is hardly one person during the entire
day.

10- 11- 12- 1- 2- 3- Daily


11am 12pm 1pm 2pm 3pm 4pm Total
24-06-14 Tuesday 1 1 1 1 0 0 4
25-06-14 Wednesday 1 1 0 1 0 1 4
26-06-14 Thursday 0 0 1 0 0 0 1
27-06-14 Friday 1 1 2 0 0 0 4
30-06-14 Monday 1 0 0 1 2 0 4

Table 32. Footfall on 5 working days during business hours at the Counter: PB Authorizer-
2 and the respective Daily total footfall.

Abhirama B Sarepaka Page 91 of 112


Foot Fall at PB Authorizer-2 over 5 working days during
Business Hours
2 2
2
Foot Fall

1.5 1 1 1 1 1 1 1 1 1 1 1 1 1
1
0.5 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0
6/24/2014 6/25/2014 6/26/2014 6/27/2014 6/30/2014
Dates of Observation

10-11am 11-12pm 12-1pm 1-2pm 2-3pm 3-4pm

Figure 38. Graphical representation of the Footfall at the PB Authorizer-2 counter during
business hours on 5 working days and categorization as per Date.

Foot Fall at PB Authorizer-2 over 5 working days during


Business Hours
2 2
2
1.5
Foot Fall

1 1 1 1 1 1 1 1 1 1 1 1 1
1
0.5
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0
10-11am 11-12pm 12-1pm 1-2pm 2-3pm 3-4pm
Hours of Observation

24-06-14 25-06-14 26-06-14 27-06-14 30-06-14

Figure 39. Graphical representation of the Footfall at the PB Authorizer-2 counter during
business hours on 5 working days and categorization as per hour of operation.

From the data and graphs, it is evident that there is essentially negligible footfall during the
period of 2pm until 3pm. Furthermore, from 3pm until 4 pm the footfall is again negligible.
In addition, there is negligible footfall on Thursday and for most part of Friday. Only on
Monday and Tuesday, some activity can be seen at the PB Authorizer-2. Still, on an

Abhirama B Sarepaka Page 92 of 112


average, the number of individuals walking to the PB Authorizer-2 has been at best
intermittent, irregular and consistently low.

10- 11- 12- 1- 2- 3- Daily


11am 12pm 1pm 2pm 3pm 4pm Total
24-06-14 Tuesday 1 1 1 0 0 2 5
25-06-14 Wednesday 1 1 0 0 0 0 2
26-06-14 Thursday 0 0 0 0 0 0 0
27-06-14 Friday 0 0 1 1 0 2 4
30-06-14 Monday 1 0 1 1 2 1 6

Table 33. Footfall on 5 working days during business hours at the Counter: Relationship
Manager-1 and the respective Daily total footfall.

Foot Fall at Relationship Manager-1 over 5 working days


during Business Hours
2 2 2
2
Foot Fall

1.5 1 1 1 1 1 1 1 1 1 1 1
1
0.5 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0
6/24/2014 6/25/2014 6/26/2014 6/27/2014 6/30/2014
Dates of Observation

10-11am 11-12pm 12-1pm 1-2pm 2-3pm 3-4pm

Figure 40. Graphical representation of the Footfall at the Relationship Manager-1 counter
during business hours on 5 working days and categorization as per Date.

Abhirama B Sarepaka Page 93 of 112


Foot Fall at Relationship Manager-1 over 5 working days
during Business Hours
2 2 2
2
1.5
Foot Fall

1 1 1 1 1 1 1 1 1 1 1
1
0.5
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0
10-11am 11-12pm 12-1pm 1-2pm 2-3pm 3-4pm
Hours of Observation

24-06-14 25-06-14 26-06-14 27-06-14 30-06-14

Figure 41. Graphical representation of the Footfall at the Relationship Manager-1 counter
during business hours on 5 working days and categorization as per hour of operation.

At the Relationship Manager’s desk, the number of people visiting during the week ranges
from a trifling two people on a Wednesday and none on Thursday to six customers on
Monday and five on Tuesday. Additionally, the distribution of the customers coming to
the relationship manager’s desk during the day is again very uneven because no specific
pattern can be identified. However, it is evident from the data, the graphs that the time from
2pm to 3pm is extremely low, and only on one day that customers came to the desk during
this time.

10- 11- 12- 1- 2- 3- Daily


11am 12pm 1pm 2pm 3pm 4pm Total
24-06-14 Tuesday 1 1 1 1 0 2 6
25-06-14 Wednesday 1 2 1 0 0 0 4
26-06-14 Thursday 2 1 0 0 0 1 4
27-06-14 Friday 0 1 0 0 0 0 1
30-06-14 Monday 0 2 2 0 1 1 6
Table 34. Footfall on 5 working days during business hours at the Counter: Relationship
Manager-2 and the respective Daily total footfall.

Abhirama B Sarepaka Page 94 of 112


Foot Fall at Relationship Manager-2 over 5 working days
during Business Hours
2 2 2 2 2
2
1.5
Foot Fall

1 1 1 1 1 1 1 1 1 1 1
1
0.5 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0
6/24/2014 6/25/2014 6/26/2014 6/27/2014 6/30/2014
Dates of Observation

10-11am 11-12pm 12-1pm 1-2pm 2-3pm 3-4pm

Figure 42. Graphical representation of the Footfall at the Relationship Manager-2 counter
during business hours on 5 working days and categorization as per Date.

Foot Fall at Relationship Manager-2 over 5 working days


during Business Hours
2 2
2
1.5
Foot Fall

1 1 1 1 1 1 1 1 1 1 1 1 1
1
0.5
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0
10-11am 11-12pm 12-1pm 1-2pm 2-3pm 3-4pm
Hours of Observation

24-06-14 25-06-14 26-06-14 27-06-14 30-06-14

Figure 43. Graphical representation of the Footfall at the Relationship Manager-2 counter
during business hours on 5 working days and categorization as per hour of operation.

From the graphs above, it is clear that the general distribution of customer inflow to the
relationship manager’s desk is uniform throughout the day and dwindles only in the last
two hours of business. In addition, Thursday and Friday are the lean days, while
Wednesday is a below average day. Monday and Tuesday see a higher than average footfall
with the desk on Monday being fully occupied throughout the day.

Abhirama B Sarepaka Page 95 of 112


10- 11- 12- 1- 2- 3- Daily
11am 12pm 1pm 2pm 3pm 4pm Total
24-06-14 Tuesday 2 2 1 0 0 2 7
25-06-14 Wednesday 2 1 1 0 0 0 4
26-06-14 Thursday 0 0 0 0 0 1 1
27-06-14 Friday 0 0 1 0 0 0 1
30-06-14 Monday 0 2 0 1 2 1 6

Table 35. Footfall on 5 working days during business hours at the Counter: Relationship
Manager-3 and the respective Daily total footfall.

Foot Fall at Relationship Manager-3 over 5 working days


during Business Hours
2 2 2 2 2 2
2
Foot Fall

1.5 1 1 1 1 1 1 1
1
0.5 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0
6/24/2014 6/25/2014 6/26/2014 6/27/2014 6/30/2014
Dates of Observation

10-11am 11-12pm 12-1pm 1-2pm 2-3pm 3-4pm

Figure 44. Graphical representation of the Footfall at the Relationship Manager-3 counter
during business hours on 5 working days and categorization as per Date.

Abhirama B Sarepaka Page 96 of 112


Foot Fall at Relationship Manager-3 over 5 working days
during Business Hours
2 2 2 2 2 2
Foot Fall 2
1.5 1 1 1 1 1 1 1
1
0.5 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0
10-11am 11-12pm 12-1pm 1-2pm 2-3pm 3-4pm
Hours of Observation

24-06-14 25-06-14 26-06-14 27-06-14 30-06-14

Figure 45. Graphical representation of the Footfall at the Relationship Manager-3 counter
during business hours on 5 working days and categorization as per hour of operation.

As was the case with the first Relationship Manager, the average footfall at the relationship
manager is essential the same. Again, the footfall from 1pm until 3 pm is appalling. In
addition, the relationship manager has only one person in the entire day on Thursday as
well as Friday. Monday and Tuesday see the most amount of traffic at the relationship
manager’s desk.

10- 11- 12- 1- 2- 3- Daily


11am 12pm 1pm 2pm 3pm 4pm Total
24-06-14 Tuesday 2 2 1 1 0 0 6
25-06-14 Wednesday 0 1 0 0 0 0 1
26-06-14 Thursday 0 0 0 0 0 0 0
27-06-14 Friday 0 0 0 0 0 0 0
30-06-14 Monday 0 1 1 1 1 0 4

Table 36. Footfall on 5 working days during business hours at the Counter: Forex-1 and
the respective Daily total footfall.

Abhirama B Sarepaka Page 97 of 112


Foot Fall at Forex-1 over 5 working days during Business
Hours
2 2
Foot Fall 2
1.5 1 1 1 1 1 1 1
1
0.5 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0
6/24/2014 6/25/2014 6/26/2014 6/27/2014 6/30/2014
Dates of Observation

10-11am 11-12pm 12-1pm 1-2pm 2-3pm 3-4pm

Figure 46. Graphical representation of the Footfall at the Forex-1 counter during business
hours on 5 working days and categorization as per Date.

Foot Fall at Forex-1 over 5 working days during Business


Hours
2 2
2
Foot Fall

1.5 1 1 1 1 1 1 1
1
0.5 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0
10-11am 11-12pm 12-1pm 1-2pm 2-3pm 3-4pm
Hours of Observation

24-06-14 25-06-14 26-06-14 27-06-14 30-06-14

Figure 47. Graphical representation of the Footfall at the Forex-1 counter during business
hours on 5 working days and categorization as per hour of operation.

The forex-1 counter has an average footfall of one person per day. It has been observed
that on Thursday and Friday, there has been no traffic at the counter. The general footfall
has been on Monday and Tuesday with Wednesday receiving the average footfall of one
person. It has also been witnessed that the most footfall is from 11am until 2pm on the days
of observation. In addition, there is no traffic from 3 to 4pm. In addition, there is negligible
footfall from 2pm to 3pm and an average footfall during the first hour of business.

Abhirama B Sarepaka Page 98 of 112


10- 11- 12- 1- 2- 3- Daily
11am 12pm 1pm 2pm 3pm 4pm Total
24-06-14 Tuesday 0 0 1 0 1 0 2
25-06-14 Wednesday 0 0 1 0 0 0 1
26-06-14 Thursday 1 2 0 0 0 1 4
27-06-14 Friday 0 0 0 0 0 0 0
30-06-14 Monday 1 1 1 0 0 0 3
Table 37. Footfall on 5 working days during business hours at the Counter: Forex-2 and
the respective Daily total footfall.

Foot Fall at Forex-2 over 5 working days during Business


Hours
2
Foot Fall

2
1 1 1 1 1 111
1
00 0 0 00 000 000 000000 000
0
6/24/2014 6/25/2014 6/26/2014 6/27/2014 6/30/2014
Dates of Observation

10-11am 11-12pm 12-1pm 1-2pm 2-3pm 3-4pm

Figure 48. Graphical representation of the Footfall at the Forex-2 counter during business
hours on 5 working days and categorization as per Date.

Foot Fall at Forex-2 over 5 working days during Business


Hours
2
Foot Fall

2
1 1 1 11 1 1 1
1
00 0 00 0 00 00000 0000 00 00
0
10-11am 11-12pm 12-1pm 1-2pm 2-3pm 3-4pm
Hours of Observation

24-06-14 25-06-14 26-06-14 27-06-14 30-06-14

Figure 49. Graphical representation of the Footfall at the Forex-2 counter during business
hours on 5 working days and categorization as per hour of operation.

Abhirama B Sarepaka Page 99 of 112


Again, the trend is very similar to the forex-1 counter. There is absolutely no influx of
customers to the forex-2 counter on Friday. In addition, there is an average footfall of only
1-2 persons per day on the rest of the days. Tuesday and Wednesday show a very marginal
footfall that increases slightly on Thursday.

When evaluating the data based on footfall per business hour, it is seen that no customers
come to the counter during 1-2pm stretch. Furthermore, footfall from 2pm until 4pm is a
very meagre one person per hour. The relative higher footfall can be observed from 10am
until 1pm with an average of two persons per hour.

10- 11- 12- 1- 2- 3- Daily


11am 12pm 1pm 2pm 3pm 4pm Total
24-06-14 Tuesday 0 0 2 0 0 0 2
25-06-14 Wednesday 0 0 0 1 0 1 2
26-06-14 Thursday 0 0 0 0 0 0 0
27-06-14 Friday 1 0 0 0 0 0 1
30-06-14 Monday 0 1 1 0 0 0 2

Table 38. Footfall on 5 working days during business hours at the Counter: Forex-3 and
the respective Daily total footfall.

Foot Fall at Forex-3 over 5 working days during Business


Hours
2
2
Foot Fall

1.5 1 1 1 1 1
1
0.5 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0
6/24/2014 6/25/2014 6/26/2014 6/27/2014 6/30/2014
Dates of Observation

10-11am 11-12pm 12-1pm 1-2pm 2-3pm 3-4pm

Abhirama B Sarepaka Page 100 of 112


Figure 50. Graphical representation of the Footfall at the Forex-3 counter during business
hours on 5 working days and categorization as per Date.

Foot Fall at Forex-3 over 5 working days during Business


Hours
2
2
Foot Fall

1.5 1 1 1 1 1
1
0.5 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0
10-11am 11-12pm 12-1pm 1-2pm 2-3pm 3-4pm
Hours of Observation

24-06-14 25-06-14 26-06-14 27-06-14 30-06-14

Figure 51. Graphical representation of the Footfall at the Forex-3 counter during business
hours on 5 working days and categorization as per hour of operation.

Again, the trend is very similar to the other two forex counters. There is absolutely no
influx of customers to the forex-3 counter on Thursday. In addition, there is an average
footfall of only one person per day on the rest of the days.

When evaluating the data based on footfall per business hour, it is seen that no customers
come to the counter during 2-3pm stretch. Furthermore, footfall from 10am until 12pm and
from 3pm until 4pm is a very meagre one person per hour. The relative higher footfall can
be observed from 12pm until 1pm with an average of two persons per hour. In addition,
the footfall is highly erratic and sporadic.

10- 11- 12- 1- 2- 3- Daily


11am 12pm 1pm 2pm 3pm 4pm Total
24-06-14 Tuesday 2 1 2 0 0 1 6
25-06-14 Wednesday 0 0 1 4 0 0 5

Abhirama B Sarepaka Page 101 of 112


26-06-14 Thursday 1 2 1 1 2 1 8
27-06-14 Friday 1 1 0 0 0 0 2
30-06-14 Monday 0 0 2 2 2 0 6

Table 39. Footfall on 5 working days during business hours at the Counter: Forex Teller
and the respective Daily total footfall.

Foot Fall at Forex Teller over 5 working days during


Business Hours
4
4
Foot Fall

3 2 2 2 2 2 2 2
2 1 1 1 1 1 1 1 1 1
1 0 0 0 0 0 0 0 0 0 0 0 0 0
0
6/24/2014 6/25/2014 6/26/2014 6/27/2014 6/30/2014
Dates of Observation

10-11am 11-12pm 12-1pm 1-2pm 2-3pm 3-4pm

Figure 52. Graphical representation of the Footfall at the Forex Teller counter during
business hours on 5 working days and categorization as per Date.

Foot Fall at Forex Teller over 5 working days during


Business Hours
4
4
Foot Fall

3 2 2 2 2 2 2 2
2 1 1 1 1 1 1 1 1 1
1 0 0 0 0 0 0 0 0 0 0 0 0 0
0
10-11am 11-12pm 12-1pm 1-2pm 2-3pm 3-4pm
Hours of Observation

24-06-14 25-06-14 26-06-14 27-06-14 30-06-14

Figure 53. Graphical representation of the Footfall at the Forex Teller counter during
business hours on 5 working days and categorization as per hour of operation.

Abhirama B Sarepaka Page 102 of 112


The forex teller sees an average footfall of five persons per day and a peak traffic of seven
people during the 1pm to 2pm business hour. The footfall is low at the beginning of the
day and gradually increases until 1pm and starts dwindling around 2pm. Furthermore,
Monday, Tuesday and Thursday sees a higher traffic as compared to Wednesday and
Friday. When comparing Wednesday and Friday, it is found that Wednesday has a higher
influx. Friday sees the least traffic of all the days of observation.

From the footfall studies and the time motion studies, it can be observed that Mondays and
Fridays are the busiest days for the tellers, while Wednesdays are busy days for the
welcome desk and for the rest of the branch, the spread of the influx of customers is fairly
uniform no specific pattern and busy or down time. These studies also indicate that the
time from 11am until 2pm handles the most traffic of customers in the branch. The last
hour of business reflects the lowest footfall on the days of observation.

Abhirama B Sarepaka Page 103 of 112


RECOMMENDATIONS AND CONCLUSIONS:

 The bank has been growing good from the last five years indicating the positive
sign to the shareholders and the stakeholders.
 Bank‘s capital adequacy ratio is good and it is maintaining more than the BASEL-
III requirements
 Amalgamation of centurion bank of Punjab in 2008 has some impact in its functions
and assets but it takes less time for the bank to regain its profits
 The bank has been expanding its branches with less costs and expenses by
managing its human power and assets efficiently
 Profitability and solvency ratios are indicating good soundness of the bank.
 Efficiency ratios like management ,operating, operating and gross ratios are
indicating that the bank is effectively managing the employee costs and other
administrative costs
 Current Ratios shows some negative indications regarding the maintenance of
current assets for current liabilities but actually banks maintain the capital to risk
free assets known as capital adequacy ratio for fulfilling the obligations which was
good for the bank.

The overall performance of the bank was good showing a positive sign to the stakeholders.

Abhirama B Sarepaka Page 104 of 112


LIMITATIONS OF STUDY

 The study considers financial ratio analysis Altman Z-score other factors like
CAGR, Altman Z-score and benchmarking to industry are ignored.
 Findings are not confined to individual branch.
 Although basic patterns of the Footfall studies and Time Motion studies have been
identified, they are however, subject to the various aspects such as deposit and
withdrawal patterns of month beginnings, weather, re-opening of schools and
colleges, etc.
 Footfall and time motion studies are specific for a single branch of HDFC Bank
and cannot be generalized for all branches.

Abhirama B Sarepaka Page 105 of 112


BIBILIOGRAPHY

1. Ann Hendrich, Marilyn Chow, Boguslaw A. Skierczynski, Zhenqiang Lu (2008). A 36


– Hospital Time and Motion Study: How Do Medical Surgical Nurses Spend Their
Time. The Permanente Journal Summer, Vol 12 No.3. Pages 25 – 34
2. B. Kumar (1999). Industrial Engineering. Khanna Publishers, Delhi
3. Brian Price (1989). Frank and Lillian Gibreth and the Manufacture and Marketing of
Motion Study, 1908 – 1924. Business and Economic History, Second Series, Volume
Eighteen, 1989 Business History Conference ISSN 0849 –6825
4. Enugandula C S. (1999). Performance of KDCC bank in Andhra Pradesh. Indian
Economic Review Jan 227- 232.
5. Eok Su Sim, Hyoung Gon Lee, Jung Chul Lee, Jin Woo Park (2004). Efficient Work
Measurement System of
6. Foster (2003). Operational Management – Time and Motion Study.ppt.
www.freequality.org/sites_ free_quality_org/document/training
7. Fred E. Meyers (1992). Motion and Time Study – Improving Work Methods and
Management. Prentice Hall Inc.
8. Grace Au, Ray J. Paul (1993). Visual Interactive Modelling: A Pictorial Simulation
Specification System. European Journal of Operation Research 91 (1996) Pages 14 –
26.
9. Harrell, Ghosh, Bowden (2004), Simulation Using ProModel Second Edition. McGraw
Hill
10. Hosamani, S.B. (1995). Performance and impact of Regional Rural Banks. A case study
of Malaprabha Grameena Bank in Karnataka. (Unpublished Ph.D. Thesis). University
of Agricultural Science Dharwad.
11. http://www.hdfcbank.com/aboutus/cg/annual_reports.htm
12. http://www.moneycontrol.com/india/stockpricequote/banksprivatesector/hdfcbank/H
DF01
13. International Journal of Accounting and Financial Management Research (IJAFMR)
14. Jay Heizer and Barry Render (2006). “Operations Management” Eight Edition. Pearson
Education

Abhirama B Sarepaka Page 106 of 112


15. Jeffrey S. Smith (2003). Survey on the Use of Simulation for Manufacturing System
Design and Operation. Journal of Manufacturing Systems, Vol. 22 / No 2 2003 Pages
157 – 171
16. Kulwant Singh Pathania and Yoginder Singh (1998) A study of the performance of the
Himachal Pradesh cooperative banks. Indian Cooperative Review. 36 (2) 178-182.
17. L. Aharonson Daniel (1996) Time Studies in A&E Departments – A Useful Tool for
Management: Journal of Management in Medicine, Vol 10 No 3 Pages 15 – 22
18. Lawrence S. Aft (2001). Work Measurement and Method Improvement. John Wiley
and Sons Inc.
19. Manufacturing Cells Using Speech Recognition and Digital Image Processing
Technology. International Journal Manufacturing Technology 29 (2006) Pages 772 -
785
20. Marvin E. Mundel and David L. Danner (1994). Motion and Time Study – Improving
Productivity. Seventh Edition. Prentice Hall Inc.
21. Ming Lu, Lap Chi Wong (2005). Comparison of Two Simulation Methodologies in
Modelling Construction System: Manufacturing – Oriented PROMODEL vs
Construction – Oriented SDESA. Journal of Automation 16 (2007) Pages 86 – 95
22. O. C Jensen, S. Stage, P. Noer (2004). Injury and Time Studies of Working Process in
Fishing. Journal of Safety Science 44 (2006) Pages 349 – 358
23. Patil, S.M. (2000) Performance of Primary Cooperative Agricultural and Rural
Development Bank in Dharwad district, Karnataka. (Unpublished Ph.D. Thesis)
University of Agricultural Science, Dharwad.
24. Ralph M. Barnes (2001). Motion and Time Study – Design and Measurement of Work.
Seventh Edition. John Wiley and Sons Inc.
25. Russell and Taylor (2005). Operations Management – Quality and Competitiveness in
a Global Environment. Fifth Edition. John Wiley and Sons Inc.
26. Siddhanti, S.A. (1999). Financial performance of Indian Farmers Fertilizers
Cooperative. Cooperative Perspective 34 (1) 43-46.
27. SMIDEC (2002). SMI Development Plan 2001 – 2005. SMIDP Executive Summary.

Abhirama B Sarepaka Page 107 of 112


28. Surjit Angra, Rakesh Sehgal, Z. Samsudeen Noori (2004). Cellular Manufacturing – A
Time Based Analysis to the Layout Problem. International Journal of Production
Economic 112 (2008) Pages 427 – 438
29. The Yankee Group Inc. (2001). Western Juniper Harvest System Trial. Final Report
for REACH Inc., Klamath Falls, Oregon.

Abhirama B Sarepaka Page 108 of 112


ANNEXURE-I
Data collected and compiled for Time-Motion Studies.
Cash Deposit
16-06- 16-06- 17-06- 17-06- 18-06- 18-06-
2014-A 2014-B 2014-A 2014-B 2014-A 2014-B
1 02:15.4 02:23.2 10:23.1 03:13.5 12:02.1 05:31.3
2 07:38.1 03:02.2 03:02.2 02:39.7 07:21.6 03:17.5
3 02:39.7 01:59.3 04:59.0 02:13.9 03:01.1 04:17.2
4 02:44.0 03:05.3 03:05.3 05:05.3 03:34.1 01:33.0
5 05:05.3 01:31.3 03:31.0 03:08.9 04:12.8 01:44.9
6 03:08.9 02:38.3 02:38.3 02:55.9 02:41.8 02:36.2
7 02:55.9 03:43.3 03:43.3 02:43.2 03:03.8 03:15.3
8 02:43.2 02:39.9 03:39.9 03:38.1 03:30.3 03:43.7
9 03:38.1 02:04.5 03:19.2 02:49.3 03:32.8 02:18.3
10 02:49.3 04:11.2 04:11.2 02:16.3 03:03.4 02:19.3
11 02:46.9 02:07.5 03:55.1 02:27.3 03:23.2 02:41.9
12 03:45.2 02:44.4 04:45.1 02:31.7 06:02.1 02:44.7
13 03:45.2 01:32.5 02:53.0 02:07.5 03:01.3 02:59.9
14 02:57.8 02:27.3 03:39.0 01:59.4 03:47.5 03:18.8
15 04:56.0 02:31.7 03:21.3 03:01.3 03:13.2 02:43.8
16 03:01.3 03:21.3 03:48.2 02:41.0 03:07.1 03:12.3
17 06:02.1 02:51.0 03:37.9 02:15.4 04:02.1 01:59.8
18 03:56.1 03:37.9 04:08.9 01:49.3 02:59.2 02:41.3
19 03:49.9 04:08.9 04:59.9 02:24.2 03:58.9 02:42.9
20 08:35.2 02:18.3 03:14.7 06:02.1 03:01.8 02:54.6
21 03:01.3 03:14.7 02:44.7 03:01.3 02:50.1 02:41.2
22 02:41.0 02:44.7 02:54.6 02:41.3 03:04.3 03:45.9
23 02:16.3 02:54.6 03:41.8 02:42.9 03:03.8 02:51.5
24 03:08.2 02:41.9 04:15.8 02:59.9 03:45.8 03:49.2
25 03:59.4 02:19.3 01:42.7 03:45.1 02:59.3
26 03:39.8 02:41.3 02:41.0 01:42.7
27 02:42.9 02:16.3 03:14.7
28 02:59.9 02:07.5 04:08.9
29 01:42.7 01:59.4 03:16.1
30 01:38.9
16-6-14-A 16-6-14-B 17-6-14-A 17-6-14-B 18-6-14-A 18-6-14-B
Avera
03:46.1 02:43.5 03:56.4 02:43.8 03:58.0 02:56.4
ge
Table Annex-1: Individual Time taken for each transaction at 2 counters on three days for
Cash Deposits.

Abhirama B Sarepaka Page 109 of 112


Cheques Deposit
16-06- 16-06- 17-06- 17-06- 18-06- 18-06-
2014-A 2014-B 2014-A 2014-B 2014-A 2014-B
1 02:11.0 01:36.0 02:56.0 02:11.0 02:43.2 01:03.1
2 02:49.6 01:02.2 03:02.0 01:59.3 02:45.9 03:00.1
3 02:28.8 00:49.3 01:59.9 02:28.8 02:34.1 01:43.2
4 02:03.2 02:13.3 03:00.2 02:03.2 03:00.2 02:23.6
5 03:56.1 01:42.3 02:46.7 01:57.3 02:46.7 02:23.6
6 03:00.2 01:39.8 03:40.0 02:13.3 02:30.8 01:17.6
7 02:46.7 02:32.3 02:32.3 01:42.3 02:03.2 01:34.9
8 02:00.9 01:34.9 02:35.0 02:00.9 02:00.9 01:43.7
9 02:30.8 01:49.3 02:49.0 02:30.8 01:57.3 01:49.3
10 02:46.9 01:43.7 03:00.2 01:59.5 02:32.3
11 02:38.8 00:53.1 02:46.7 02:38.8 00:59.1
12 03:00.2 01:43.7 00:53.1
13 02:46.7 00:53.1
14 02:30.8 02:30.8
15 02:03.2 02:03.2
16 03:01.9 02:00.9
17 02:57.9 01:57.3
18 04:41.9
16-6-14-A 16-6-14-B 17-6-14-A 17-6-14-B 18-6-14-A 18-6-14-B
Avera
02:40.8 01:36.0 02:49.8 02:03.2 02:29.1 01:47.0
ge
Table Annex-2: Individual Time taken for each transaction at 2 counters on three days for
Cheques Deposits.
Cheques Encashment
16-06- 16-06- 17-06- 17-06- 18-06- 18-06-
2014-A 2014-B 2014-A 2014-B 2014-A 2014-B
1 03:45.1 05:03.6 03:45.1 03:10.2 03:16.9 02:03.1
2 03:10.2 04:41.9 05:03.6 03:45.1 05:43.1 04:00.2
3 03:45.1 03:48.9 04:04.0
4 03:45.1 04:41.9
5 03:16.9
6 05:43.1
16-6-14-A 16-6-14-B 17-6-14-A 17-6-14-B 18-6-14-A 18-6-14-B
Avera
03:33.5 04:52.7 04:24.4 03:27.6 04:15.7 03:48.9
ge
Table Annex-3: Individual Time taken for each transaction at 2 counters on three days for
Cheques Encashment.

Abhirama B Sarepaka Page 110 of 112


Time Taken for Cash Deposits at a Teller on 3
consecutive days-Counter A
14:24.0
Time per Transaction

11:31.2
08:38.4
05:45.6
02:52.8
00:00.0
1 2 3 4 5 6
7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
Number of Transactions of Cash Deposits
16-6-2014-Cash Deposits 17-6-2014-Cash Deposits 18-6-2014-Cash Deposits

Figure Annex-1: Individual Time taken for each transaction at Counter-A on three days for
Cash Deposits.

Time Taken for Cash Deposits at a Teller on 3


consecutive days.-Counter B
07:12.0
Time per Transaction

05:45.6
04:19.2
02:52.8
01:26.4
00:00.0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
Number of Transactions of Cash Deposits
Cash Deposits-16-6-14 Cash Deposits-17-6-14 Cash Deposits-18-6-14

Figure Annex-2: Individual Time taken for each transaction at Counter-B on three days for
Cash Deposits.

Time Taken for Cheque Deposits at a Teller on 3


Consecutive Days-Counter A
04:19.2
Time Per Transaction

02:52.8

01:26.4

00:00.0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Number of Transactionns

Figure Annex-3: Individual Time taken for each transaction at Counter-A on three days for
Cheques Deposits.

Abhirama B Sarepaka Page 111 of 112


Time Taken for Cheque Deposits at a Teller on 3
Consecutive Days-Counter B
05:45.6
Time Per Transaction

04:19.2
02:52.8
01:26.4
00:00.0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Number of Transactionns

Cheque Deposit-16-6-14 Cheque Deposit-17-6-14 Cheque Deposits-18-6-14

Figure Annex-4: Individual Time taken for each transaction at Counter-B on three days for
Cheques Deposits.

Time Taken for Cheque Encashment at a Teller on 3


Consecutive Days-Counter A
07:12.0
Time Per Transaction

05:45.6
04:19.2
02:52.8
01:26.4
00:00.0
1 2 3 4 5 6
Number of Transactionns

Figure Annex-5: Individual Time taken for each transaction at Counter-A on three days for
Cheques Encashment.

Time Taken for Cheque Encashment at a Teller on 3


Time Per Transaction

Consecutive Days-Counter B
05:45.6
04:19.2
02:52.8
01:26.4
00:00.0
1 2 3 4
Number of Transactionns

Figure Annex-6: Individual Time taken for each transaction at Counter-B on three days for
Cheques Encashment.

Abhirama B Sarepaka Page 112 of 112