“A COMPARATIVE STUDY OF FINANCIAL PERFORMANCE OF A

PRIVATE SECTOR BANK – HDFC AND A PUBLIC SECTOR BANK –

STATE BANK OF INDIA”

Project Report submitted in Partial fulfillment of the requirement for the award of
Degree of

BACHELOR OF BUSINESS ADMINISTRATION

(B.B.A.)

Submitted by

Vishwakarma Pinky Omprakash

Registration No: 1405000708

Under the Guidance of

Mr. Santosh Lucas Noronha

Guide Registration No:

MBAMH0180

Sikkim Manipal University (SMU)

Directorate of Distance Education

Winter & 2016 – 17

Page | 1
 ACKNOWLEDGMENT

I am grateful to Sikkim Manipal University, who gives students such a big opportunity for their
career and to identify their ability, through this task of preparing this Project Report. I would also
like to thank my guide ‘Mr. Santosh Lucas Noronha’ who helped me to complete my report
correctly and rectified my mistakes too.

I have chosen this topic of a comparative study between public sector bank and private sector
bank because it helps me for accounting, data interpretation, market rate, present business levels
and ratios and mostly help me to increase my knowledge that would help me in future career in
any organization.

My sincere gratitude to SMU-DE, my guide and my parents who are helping me in my career. I
have collected all data and information as a secondary data from BBA’s course material and
from websites of HDFC and SBI banks. I have tried to do my best in this project and my guide
has helped me to correct it, making it more effective and educative. I believe that this research
will obviously help me in my future and it would be a good experience for me.

Thank You!

Vishwakarma Pinky Omprakash.

Page | 2
 BONAFIDE CERTIFICATE

Certified that this project report titled “A Comparative Study of Financial Performance of a
Private Sector Bank - HDFC and a Public Sector Bank – State Bank of India” is the
bonafide work of “Vishwakarma Pinky Omprakash” who carried out the project work under
my supervision in the partial fulfillment of the requirements for the award of the BBA degree.

SIGNATURE

Mr. Santosh Lucas Noronha

Registration Number: MBAMH0180

Page | 3
 DECLARATION BY THE STUDENT

I Vishwakarma Pinky Omprakash bearing Registration No. 1405000708 hereby declare that
this project report entitled A Comparative Study of Financial Performance of a Private
Sector Bank - HDFC and a Public Sector Bank – State Bank of Indiahas been prepared by
me towards the partial fulfillment of the requirement for the award of the Bachelor of Business
Administration (B.B.A.) Degree under the Guidance of Mr. Santosh Lucas Noronhabearing
Registration No.MBAMH0180.

I also declare that this project report is my original work and has not been previously submitted
for the award of any Degree, Diploma, Fellowship or other similar titles.

Place: Mumbai

Date: 05.06.2017

VISHWAKARMA PINKY OMPRAKASH

Registration Number: 1405000708

Page | 4
 EXECUTIVE SUMMARY

Introduction: The advent of liberalization policy and RBI’s easy norms several private and
foreign banks have entered in Indian banking sector which has given birth to cut throat
competition amongst banks for acquiring large customer base and market share. Banks have to
deal with many customers and render various types of services to its customers and if the
customers are not satisfied with the services provided by the banks then they will defect which
will impact the performance of the bank. Since the competition has grown manifold in the recent
times it has become a herculean task for both private and public sector banks to build loyalty,
reduce Non-Performing Assets (NPAs), maintain adequate capital ratio and to better their
balance sheet management. Private and Public Sector Banks adopt different measures to improve
their financial performance.

Objectives of the Study:

 To study the financial performance of HDFC Bank and SBI Bank using various ratios
viz. Liquidity Ratio, Investment Valuation Ratios, Profitability Ratios, Management
Efficiency Ratios, Balance Sheet Ratios, Profit and Loss Account Ratios, Leverage
Ratios, Debt Coverage Ratios, Cash Flow Indicator Ratios.
 To identify and analyze the better performing bank and the best practices adopted.
 To compare balance sheets of both banks.
 To suggest measures for improving the financial performance.

Research Methodology: The study involves secondary data. The sources of secondary data are
from the financial reports published by the Banks, website, News-papers and from books, related
to management study and financial accounting. The comparative study of private sector bank
HDFC and public sector bank SBI is done by analyzing the balance sheet of both banks for the
year 2015-2016 using Investment Valuation Ratios, Profitability Ratios, Management Efficiency
Ratios, Balance Sheet Ratios, Profit and Loss Account Ratios, Leverage Ratios, Debt Coverage
Ratios, Cash Flow Indicator Ratios.

Page | 5
Data interpretation, analysis and findings:

Net Interest Income of both banks SBI and HDFC, there are SBIs’ values are more than HDFC
continuously high in only three years too, 2013-14, 2014-15, 2015-16. In 2016 Net Interest
Income of SBI is 56,882 (In Crore) and HDFC has 18,483 (In Crore). In 2015 Net Interest
Income of SBI is 55,015 (In Crore) and HDFC has 22,396 (In Crore). In 2014 Net Interest
Income of SBI is 49,282 (In Crore) and HDFC has 27,592 (In Crore). After this analyzing SBI
has greater net interest income than HDFC.

Net Interest Margin of HDFC is greater than SBI. The values of SBI is 2014 – 4.3%, 2015 –
2.5% and in 2016 – 3.5% opposites this HDFCs’ value is 2014 – 4.30%, 2015 – 4.40% and in
2016 – 4.40%. According to this net interest margin of HDFC is more than SBI but even then it
get decrease in 2016 in comparison of 2014-15.

Earning in FY 2015-16 of SBI is greater than HDFC and somewhere HDFC is Greater than SBI.

Expenditure in FY 2015-16 Somewhere is SBI greater than HDFC and somewhere HDFC is
Greater than SBI.

Suggestions and recommendations:

For Public Sector Banks:

 Bank staff should be customer friendly and highly motivated to serve the normal
customers.As far as possible the bank should reduce the documentation process while
providing loan.
 Computerization should be done in banks at all levels and the operators should be
properly trained.
 Token system should be introduced so as to reduce the waiting line in the bank.
 Proper ambience in the banks can develop a healthy work culture.
 Should be flexible in providing interest of the deposited money.Quick services should be
provided.

Page | 6
For Private Sector Banks:

 24 hours banking should be introduced so as to facilitate the customers who don’t have
time in day time or week days.
 More ATM coverage should be provided for convenience of the customers.Should reduce
the amount while opening a new saving bank account.
 Should maintain a proper recruitment policy like the PSU (Public Sector Undertaking) to
attract genuine talent to work for the customers. Rather than recruiting on internal
recommendation they should follow the IBPS (Institute of Banking Personnel Selection)
for recruitment to get better talent and better services from their employees.
 Should enhance the number of branches in rural areas to attract more customers.Should
advertise extensively regarding their operations and services to garner faith in them.

Page | 7
 LIST OF TABLES

Table No. Title Page No.

1. Difference between Public Sector Bank and Private Sector Bank 13
2. Net Interest Income (SBI) 18
3. Earnings Per Share (SBI) 19
4. Net Interest Margin (SBI) 20
5. Deposit and Advance of (SBI) 21
6. Earnings in FY 2015-16 (SBI) 22
7. Expenditure in FY 2015-16 (SBI) 23
8. Net Interest Income (HDFC) 24
9. Earnings Per Share (HDFC) 25
10. Net Interest Margin (HDFC) 26
11. Deposit and Advance of (HDFC) 27
12. Earnings in FY 2015-16 (HDFC) 28
13. Expenditure in FY 2015-16 (HDFC) 29
14. HDFC Balance Sheet as at March 31, 2016 30
15. Statement of Profit and Loss for the year ended March 31, 2016 31
(HDFC)
16. SBI Balance Sheet as at March 31, 2016 33
17. Statement of Profit and Loss for the year ended March 31, 2016 34
(SBI)
18. Comparison of HDFC Bank and SBI by Various Ratios 38

LIST OF FIGURES

Figure No. Title Page No.

1. Net Interest Income SBI 18
2. Earnings Per Share SBI 19
3. Net Interest Margin SBI 20
4. Deposit and Advance of SBI 21

Page | 8
 5. Earnings in FY 2015-16 SBI 22
6. Expenditure in FY 2015-16 SBI 23
7. Net Interest IncomeHDFC 24
8. Earnings Per Share HDFC 25
9. Net Interest Margin HDFC 26
10. Deposit and Advance of HDFC 27
11. Earnings in FY 2015-16 HDFC 28
12. Expenditure in FY 2015-16 HDFC 29

LIST OF ABBREVIATION

Sr. No. Abbreviated Full Form Page No.

Name
1. ATM Automated Teller Machine 11
2. PSBs Public Sector Banks 11
3. SBI State Bank of India 11
4. ICICI Industrial Credit and Investment Corporation of 11
India
5. HDFC The Housing Development Finance Corporation 12
Limited
6. AB Bank Arab Bangladesh Bank 12

Page | 9
 7. RRB Regional Rural Sector Banks 12
8. RBI Reserve Bank of India 12
9. NPAs Non – Performing Assets 14
10. EPS Earnings Per Share 37
11. CRM Customer Relationship Management 45
12. RTGS Real Time Gross Settlement 45
13. NEFT National Electronics Funds Transfer 45
14. PSU Public Sector Undertaking 46
15. IBPS Institute of Banking Personnel Selection 46

TABLE OF CONTENTS

Chapter No. Sr. No. Topic Page No.

Chapter – 1 Introduction 11
1.1 Introduction of Banking 11
1.2 Classification of Commercial Bank 11
1.3 Information about HDFC Bank (Private Sector Bank) and 12
SBI Bank (Public Sector Bank)
1.4 Difference between Public Sector Bank and Private Sector 13
Bank

Chapter – 2 Objectives of Study, Review of Literature and 15

Research Methodology
2.1 Objectives of the Study 15
2.2 Literature Review 15
2.3 Research Methodology 16

Page | 10
Chapter – 3 Data Analyzing and Interpretation 18
3.1 Financial Performance Indicators of HDFC Bank and SBI 18
3.2 Balance Sheet and Profit & Loss Statement of HDFC 30
Bank March 31’ 2016
(A) HDFC Balance Sheet as at March 31, 2016 30
(B) Statement of Profit and Loss for the year ended 31
March 31, 2016 (HDFC)
3.3 Balance Sheet and Profit & Loss Statement of SBI 33
March 31’ 2016
(A) SBI Balance Sheet as at March 31, 2016 33
(B) Statement of Profit and Loss for the year ended 34
March 31, 2016 (SBI)
3.4 Ratio Analysis of HDFC and SBI Banks 36
(A) Meaning of Ratio 36
(B) Classification of Ratio 36
(C) Comparison of HDFC and SBI banks by Ratios 38
(D) Interpretation of given Data Analysis 41

Chapter – 4 Results and Discussion 43

4.1 Result and Discussion 43
4.2 Suggestions 45
4.3 Recommendation 46

Chapter – 5 Limitations and Scope of Future Research and 47

Conclusion
5.1 The Limitations and Scope of Future Research 47
5.2 Conclusion 48

Bibliography 49

Page | 11
 CHAPTER – 1

INTRODUCTION

1.1 Introduction of Banking

The banking sector is characterized by various services such as account facility, ATM
(Automated Teller Machine) facility, loan facility, mutual fund facility and many other
financial services. The role of banks in economic development is to remove the
deficiency of capital by stimulating savings and investment. A sound banking system
mobilizes the small and scattered savings of the community, and makes them available
for investment in productive enterprises. Commercial banks can be classified as Public
Sector Bank, Private Sector Bank, Regional Rural Sector Bank, Co-operative and Foreign
bank, etc.

1.2 Classification of Commercial Banks

Commercial bank is a financial institution that is authorized by law to receive money

from businesses and individuals and lend money to them. Commercial banks are open to
the public and serve individuals, institutions, and businesses. A commercial bank is
almost certainly the type of bank.

Public Sector Banks(PSBs): (PSBs) are banks where a majority stake (more than 50%)
is held by a government. The shares of these banks are listed on stock exchanges. There
are a total of 21 PSBs in India. For Example: Bank of India, Bank of Baroda, Allahabad
Bank, SBI (State bank of India) Bank, etc.

Page | 12
 Private Sector Bank:The "private-sector banks" are banks where greater parts of state
or equity are not held by the government but by private sharer - holders. For Examples:
Kotak Mahindra Banks, ICICI (Industrial Credit and Investment Corporation of India)
Bank, Yes Bank, HDFC Bank, etc.

Foreign Bank: List of banks which are incorporated outside India and are operating
branches in India. For Example: AB Bank (Arab Bangladesh Bank), Sonali Bank, etc.

Regional Rural Sector Banks:Regional Rural Banks are local level banking
organizations operating in different States of India. They have been created with a view
to serve primarily the rural areas of India with basic banking and financial services.
However, RRBs may have branches set up for urban operations and their area of
operation may include urban areas too. For Example: Punjab Gramin Bank, Uttar Bihar
Gramin Bank, etc.

Co-operative Bank:Co-operative banking is retail and commercial banking organized on

a cooperative basis. Co-operative banking institutions take deposits and lend money in
most parts of the world.

Co-operative banking, includes retail banking carried out by credit unions, mutual
savings banks, building societies and cooperatives, as well as commercial banking
services provided by mutual organizations (such as cooperative federations) to
cooperative businesses. For Example: ApnaSahakari Co-Op Bank Ltd., Ahmedabad
Mercantile Co-Op Bank, etc.

1.3 Information about HDFC Bank (PSBs) and SBI Bank (Public Sector Bank): some
details of HDFC bank and SBI bank according to secondary data by banks’ websites.

HDFC Bank:It is a private sector bank. The Housing Development Finance Corporation
Limited (HDFC) was amongst the first to receive an 'in principle' approval from the

Page | 13
 Reserve Bank of India (RBI) to set up a bank in the private sector, as part of RBI's
liberalization of the Indian Banking Industry in 1994.

The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its
registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled
Commercial Bank in January 1995. As of March 31, 2017, the Bank had a nationwide
distribution network of 4,715 branches and 12,260 ATM's in 2,657 cities/towns.

SBI Bank: It is a public sector bank. SBI founded in 1806, Bank of Calcutta was the
first bank established in India and over a period of time evolved into State Bank of India
(SBI). SBI represents a sterling legacy of over 200 years. It is the oldest commercial bank
in the Indian subcontinent, strengthening the nation’s trillion-dollar economy and serving
the aspirations of its vast population.

The Bank is India’s largest commercial Bank in terms of assets, deposits, profits,
branches, number of customers and employees, enjoying the continuing faith of millions
of customers across the social spectrum.

1.4 Difference between Public Sector Bank and Private Sector Bank:

Basis for Comparison Public Sector Bank Private Sector Bank

Meaning Public Sector Banks are the Private Sector Banks refers
banks whose complete or to the banks whose majority
maximum ownership lies with of stake is held by the
the government. individuals and
corporations.
No. of Banks 27 22
Share in Baking 72.9% 19.7%
Industry
Customer base Large Relatively Small
Interest Rate on High High Marginally Lower
Deposit
Promotion Based on Seniority Based on Merit
Growth Opportunities Low Comparatively High

Page | 14
 Job Security Always Present Purely Based on
Performance

Table No.1 Difference between Public Sector Bank and Private Sector Bank

The advent of liberalization policy and RBI’s easy norms several private and foreign banks have
entered in Indian banking sector which has given birth to cut throat competition amongst banks
for acquiring large customer base and market share. Banks have to deal with many customers
and render various types of services to its customers and if the customers are not satisfied with
the services provided by the banks then they will defect which will impact the performance of
the bank. Since the competition has grown manifold in the recent times it has become a
herculean task for both private and public sector banks to build loyalty, reduce Non-Performing
Assets (NPAs), maintain adequate capital ratio and to better their balance sheet management.
Private and Public Sector Banks adopt different measures to improve their financial
performance.

Page | 15
 CHAPTER – 2

OBJECTIVES OF STUDY, REVIEW OF LITRATURE AND RESEARCH

METHODOLOGY

2.1 Objectives of the Study

 To study the financial performance of HDFC Bank and SBI Bank using various ratios
viz. Liquidity Ratio, Investment Valuation Ratios, Profitability Ratios, Management
Efficiency Ratios, Balance Sheet Ratios, Profit and Loss Account Ratios, Leverage
Ratios, Debt Coverage Ratios, Cash Flow Indicator Ratios.
 To identify and analyze the better performing bank and the best practices adopted.
 To compare balance sheets of both banks.
 To suggest measures for improving the financial performance.

2.2 Literature Review

A literature review provides an overview and a critical evaluation of a body of literature relating
to a research topic or a research problem. It analyses a body of literature in order to classify it by
themes or categories, rather than simply discussing individual works one after the other. A
literature review often forms part of a larger research project such as within a thesis, or it may be
an independent written work, such as a synthesis written paper.

Purpose of Literature Review: A literature review situates our topic in relation to previous
researches and illuminates a spot for our research. It accomplishes several goals:

 Provides background for topic using previous research.

 Shows we are familiar with previous, relevant research.
 Evaluates the depth and breadth of the research with regards to our topic.

Page | 16
  Determines relating questions or aspects of our topic in need of research.

In this topic the main source of the collecting data is Internet and Banks annual reports, which
help to make report and other one is accounting books. The main Idea of this report is to
compare two banks using ratio and finding the conclusion that which bank has better
performance and giving a right and valuable suggestion.

2.3 Research Methodology

1. Research Hypothesis:

My assumption about this project was a very hard work for me. On the time of choosing
topic I thought this would a good topic for me because I think I don’t need primary data
for this topic. I can use secondary data but at the doing of work it this was not so that-
much hard for me I would be a quite good experiment for me. Sometimes I enjoyed too
on time of collecting data.

2. Research Model:

According to which intention I take this topic it was a right decision and a right advice
for me because at-least I’m able to make this report. For making this report I took help of
other a report sample because of that I come to know the layout of the project. I also
collect Balance sheet of both banks HDFC and SBI too from their website. After that for
the ratio calculation and for formulas I choose BBA book too of Management
Accounting.

3. Research Plan:

The comparative study is a descriptive and exploratory to show financial performance

using ratio to compare two banks. It includes fact and truth details of banks and analyzing
existing bank details for financial performance.

Page | 17
 The study involves secondary data. The sources of secondary data are from the financial
reports published by the Banks, website, News-papers and from books, related to
management study and financial accounting.

4. Sample Plan:

a) Population:The total all employees of HDFC and SBI banks both.

b) Sampling Frame:All members of both banks, who are on a good post according
to their qualification. Central Board of Directors, Committees of the
Board/Members of Local Boards/Members of Central, Management
Committee/Bank Auditors and the Chairman, etc.
c) Sample Size:Two banks only included for comparative analysis of public sector
and private sector banks (SBI and HDFC).
d) Sampling Design:Restricted Sampling, Complex Random Sampling (such as
Cluster Sampling, Systematic Sampling, Stratified Sampling, etc.)

5. Research Procedure:

Aim to know about banking, Introduction of some banks of commercial banks. The
difference of private sector bank and public sector bank after that analyzing the balance
sheet of both banks March 31, 2015-2016 from their different websites and comparing
each other banks by their ration. The comparing their ratio by using Investment Valuation
Ratios, Profitability Ratios, Management Efficiency Ratios, Balance Sheet Ratios, Profit
and Loss Account Ratios, Leverage Ratios, Debt Coverage Ratios, Cash Flow Indicator
Ratios.

Page | 18
 CHAPTER – 3

DATA ANALYZING & INTERPRETATION

3.1 Financial Performance Indicators of HDFC bank and SBI

Object of Financial Performance Indicators is to showing various profits and losses, annual
increase and decrease of both banks according to the years 2013-14, 2014-15, and 2015-16 as per
the annual financial performance of banks.

Performance Indicators of SBI:Details shown by using figures of charts for different values.

Net Interest Income(In Rs. Crore)

Year 2013-14 2014-15 2015-16
SBI March 31’ 2016 49,282 55,015 56,882

Table No.2: Net Interest Income (SBI)

Page | 19
 Net Interest Income (Rs. Crore)
58,000 56,882
56,000 55,015
54,000

52,000

50,000 49,282

48,000

46,000

44,000
2013-14 2014-15 2015-16

Figure No.1: Net Interest Income of SBI

Earnings Per Share (In Rs. Crore)

Year 2013-14 2014-15 2015-16
SBI March 31’ 2016 154,904 174,973 191,844
Table No.3:
Earning Per Share (SBI)

Page | 20
 Earning Per Share (Rs. crore)
250,000

200,000 191,844
174,973
154,904
150,000

100,000

50,000

0
2013-14 2014-15 2015-16

Figure No.2: Earning Per Share of SBI

Net Interest Margin (In %)

Year 2013-14 2014-15 2015-16
SBI March 31’ 2016 4.3% 2.5% 3.5%

Table No.4: Net Interest Margin (SBI)

Page | 21
 Net Interest Margin (In %)
5
4.5 4.3
4
3.5
3.5
3
2.5
2.5
2
1.5
1
0.5
0
2013-14 2014-15 2015-16

Figure No.3: Net Interest Margin of SBI

SBI March 31’ 2016 Deposit and Advance (In Rs. Crore)
Year 2013-14 2014-15 2015-16
Deposit 1,394,409 1,576,793 1,730,722
Advance 1,209,829 1,300,026 1,463,700

Table No.5: Deposit and Advance of SBI

Page | 22
 Deposite and Advance (Rs. Crore)
2,000,000
1,800,000 1,730,722
1,576,793
1,600,000 1,463,700
1,394,409
1,400,000 1,300,026
1,209,829
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
2013-14 2014-15 2015-16

Deposite Advance

Figure No.4: Advance and Deposit of SBI

SBI March 31’ 2016 Earning in FY 2015-16 (In %)

Year 2015-16
Interest and Discount Advance bill 60.29 %
Interest on Investment 2.69 %
Other Sundry Interest 2.65 %
Commission, Exchange and Brokerage 8.61 %
On Sale Investment 22.38 %
Dividend from Subsidiaries / Associates 0.25 %
Miscellaneous Income 3.13 %

Table No.6: Earnings in FY 2015-16 (SBI)

Page | 23
 Earnings in FY 2015-16
0% 3% Interest and Discount Figure
Advance Bills No.5:
Interest on Investment
22%
Other Sundry Interest
Commision, Exchange and
Brokerage

9% On Sale of Investment
60%
Dividend from
Subsidiaries/ Associates
3%
3% Miscellaneous Income

Earning in FY 2015-16 of SBI

SBI March 31’ 2016 Expenditure in FY 2015-16 (In %)

Year 2015-16
Interest Paid on Deposit 51.53 %
Interest Pain on Borrowing/Bonds & Others 4.14 %
Operating Expanses 21.78 %
Provisions and Contingencies 15.37 %
Taxation 2.00 %
Transfer to Reserve 3.96 %
Dividend & Tax on Dividend 1.22 %

Table No.7: Expenditure in FY 2015-16 (SBI)

Page | 24
 Expenditure in FY 2015-16
1% Interest Paid on Deposite
2% 4%
Interest Paid on Borrowing/Bonds &
15% Others

Operating Expances

Provisions
52% & Contingencies

Taxation
22%
Transfer to Reserve

4% Dividend & Tax on Dividend

Figure No.6 Expenditure in FY 2015-16 of SBI

Performance Indicators of HDFC: Details shown by using figures of charts for different
values.

Net Interest Income (In Rs. Crore)

Year 2013-14 2014-15 2015-16
HDFC March 31’ 2016 18,483 22,396 27,592

Table No.8: Net Interest Income (HDFC)

Page | 25
 Net Interest Income (Rs. Crore)
30,000 27,592

25,000
22,396
20,000 18,483

15,000

10,000

5,000

0
2013-14 2014-15 2015-16

Figure No.7: Net Interest Income of HDFC

Earnings Per Share (In Rs. Crore)

Year 2013-14 2014-15 2015-16
HDFC March 31’ 2016 36 42 49

Table No.9: Earning Per Share (HDFC)

Page | 26
 Earning Per Share (Rs. crore)
60

50 49
42
40 36

30

20

10

0
2013-14 2014-15 2015-16
1 Crore = 10 Million

Figure No.8: Earning Per Share of HDFC

Net Interest Margin (In %)

Year 2013-14 2014-15 2015-16
HDFC March 31’ 2016 4.40% 4.40% 4.30%

Table No.10: Net Interest Margin (HDFC)

Page | 27
 Net Interest Margin (In %)
4.42%
4.40% 4.40%
4.40%
4.38%
4.36%
4.34%
4.32%
4.30%
4.30%
4.28%
4.26%
4.24%
2013-14 2014-15 2015-16

Figure No.9: Net Interest Margin of HDFC

HDFC March 31’ 2016 Deposit and Advance (In Rs. Crore)
Year 2013-14 2014-15 2015-16
Deposit 367,337 450,796 546,424
Advance 303,000 365,495 464,594

Table No.11: Deposit and Advance of HDFC

Page | 28
 Deposite and Advance (Rs. Crore)
600,000 546,424
500,000 450,796 464,594

400,000 367,337 365,495

303,000
300,000

200,000

100,000

0
2013-14 2014-15 2015-16

Deposite Advance

Figure No.10: Advance and Deposit of HDFC

HDFC March 31’ 2016 Earning in FY 2015-16 (In %)

Year 2015-16
Interest from Advance 63.20 %
Income from Investment 20.90 %
Commission, Exchange and Brokerage 10.90 %
Other Interest Income 1.80 %
FX Derivation Income 1.70 %
Others 1.50 %

Table No.12: Earnings in FY 2015-16 (HDFC)

Page | 29
 Earning in FY 2015-16
2% 2% 2% Interest from Advances

11%
Income from Investment

Commision, Exchange and

Brokerage

21% Other Interest Income

63%
FX Darivative Income

Others

Figure No.11: Earning in FY 2015-16 of HDFC

HDFC March 31’ 2016 Expenditure in FY 2015-16 (In %)

Year 2015-16
Interest Paid on Deposit 49.40 %
Interest Pain on Borrowing/Bonds & Others 25.70 %
Operating Expanses 9.60 %
Provisions and Contingencies 6.80 %
Taxation 4.40 %
Transfer to Reserve 4.10 %

Table No.13: Expenditure in FY 2015-16 (HDFC)

Page | 30
 Expenditure in FY 2015-16

4% Interest Expence
4%
7% Operating Expances

10% Taxation

49%
Transfer to Reserve

Dividend & Tax on Dividend

26%
Provision

Figure No.12: Expenditure in FY 2015-16 of HDFC

3.2 Balance Sheet and Profit & Loss Statement of HDFC Bank March 31, 2016.

(A) HDFC Balance Sheet as at March 31, 2016

Rs. In ‘000
Schedule As on 31 March, 2016 As on 31 March, 2015
(Current Year) (Previous Year)

CAPITAL AND LIABILITIES

Capital 1 5,056,373 5,012,991
Reserve and Surplus 2 737,984,869 626,527,660
Minority Interest 2A 1,806,228 1,616,274
Deposits 3 5,458,732,889 4,502,836,477
Borrowing 4 717,634,520 594,782,505
Other Liabilities and Provisions 5 381,403,308 340,189,270
Total 7,302,618,187 6,070,965,177
ASSETS
Cash and Balance with Reserve 6 300,765,846 275,222,870

Page | 31
 Bank of India
Balance with Banks and Money 7 89,922,969 90,041,344
at Call and Short notice
Investments 8 1,616,833,398 1,494,544,156
Advances 9 4,872,904,174 3,834,079,720
Fixed Assets 10 34,796,976 32,249,444
Other Assets 11 387,394,824 344,827,643
Total 7,302,618,187 6,070,965,177
Contingent Liabilities 12 8,535,273,826 9,752,785,962
Bill for Collection 234,899,997 223,049,263
Significant Accounting Policies 17
Notes to Accounts 18

Table No.14: Annual Balance Sheet of HDFC Bank

(B)Statement of Profit and Loss for the year ended March 31, 2016 (HDFC)

Rs. In ‘000
Schedule Year ended 31 Year ended 31
March, 2016 March, 2016
(Current Year) (Previous Year)

I. INCOME

Interest Earned 13 631,615,614 506,664,925

Other Income 14 112,116,541 95,456,835

Total 743,732,155 602,121,760

II. EXPENDITURE

Interest Expended 15 340,695,748 272,884,553

Operating Expenses 16 178,318,808 145,775,249
Provisions and Contingencies 96,544,349 76,461,474
Total 615,558,905 495,121,276
III. PROFIT

Net Profit of the Year 128,173,250 107,000,484

Less: Minority Interest 197,212 144,068
Add: Share in Profit of Associates 37,278 32,494
Consolidated Profit for the Year Attributable 128,013,316 106,888,910
to the Group

Page | 32
 Balance Profit and Loss account brought 152,074,676 195,508,642
forward
Total 323,521,958 258,936,586
IV. APPROPRIATION

Transfer to Statutory Reserve 31,80,345 26,238,698

Proposed dividend 24,017,772 20,051,963
Tax (Including cess) on dividend 5,123,529 4,245,374
Divided (including tax / cess thereon) (117,135) 8,411
pertaining to previous year paid during the
year, net of divided tax credits
Transfer to General Reserve 12,296,213 10,385,919
Transfer to Capital Reserve 2,221,532 2,249,116
Transfer to / (from) Investment Reserve (85,184) 275,413
Account
Balance carried over to Balance Sheet 248,255,886 195,508,642
Total 323,521,958 258,963,586
V. EARNING PER EQUITY
SHARE Rs. Rs.
(Face value Rs. 2 Per Share)

Basic 50.85 44.10

Diluted 50.24 43.60
Significant Accounting Policies & Notes to 17
the Consolidated Financial Statements
The Schedules referred to above form an 18
integral part of the Consolidated Balance
Sheet

Table No.15:Statement of Profit and Loss for HDFC Bank

3.3 Balance Sheet and Profit &Loss Statement of SBI March 31, 2016.

(A) SBI Balance Sheet as at March 31, 2016

Rs. In ‘000

Page | 33
 Schedule As on 31 March, 2016 As on 31 March, 2015
(Current Year) (Previous Year)
CAPITAL AND LIABILITIES
Capital 1 776,27,77 746,57,31
Reserve and Surplus 2 179816,08,85 160640,96,97
Minority Interest 6267,40,44 5497,11,75
Deposits 3 2253857,56,44 2052960,78,88
Borrowing 4 258214,39,05 244663,46,71
Other Liabilities and Provisions 5 271965,91,64 235601,10,84
Total 2970897,64,19 2700110,02,46
ASSETS
Cash and Balance with Reserve 6 160424,56,91 144287,54,67
Bank of India
Balance with Banks and Money 7 43734,89,64 44193,50,13
at Call and Short notice
Investments 8 705189,07,67 673507,48,44
Advances 9 1870260,89,28 1692211,33,41
Fixed Assets 10 15255,68,28 12379,29,52
Other Assets 11 176032,52,41 133530,86,29
Total 2970897,64,19 2700110,02,46
Contingent Liabilities 12 1184201,34,24 1190338,69,09
Bill for Collection 106611,67,61 105970,51,47
Significant Accounting Policies 17
Notes to Account 18

Table No.16:Annual Balance Sheet of SB

(B) Statement of Profit and Loss for the year ended March 31, 2016 (SBI)

Rs. In ‘000
Schedule Year ended 31 Year ended 31
March, 2016 March, 2016
(Current Year) (Previous Year)
I. INCOME

Interest Earned 13 221854,84,37 207974,33,97

Other Income 14 51016,18,48 49315,16,86

Total 272871,02,85 257289,50,83

II. EXPENDITURE

Page | 34
Interest Expended 15 143047,35,65 133178,64,45
Operating Expenses 16 73717,06,84 73224,24,22
Provisions and Contingencies 43363,31,29 33369,25,66
Total 260127,73,78 239772,14,33

III. PROFIT

Net Profit of the Year 12743,29,07 17517,36,50

Less: Minority Interest 794,51,18 837,50,76
Add: Share in Profit of Associates 275,81,61 314,44,18
Consolidated Profit for the Year 12224,59,50 16994,29,92
Attributable to the Group
Balance Profit and Loss account 2615,87,62 2032,37,15
brought forward
Amount available for Appropriation 14840,47,12 19026,67,07

IV. APPROPRIATION

Transfer to Statutory Reserve 3709,43,37 4904,63,53

Transfer to Other Reserve 5388,68,06 8301,62,00
Dividend for the previous year paid 80 --
during the year (including Tax on
Dividend)
Final Dividend for the Year 2018,32,20 2648,17,28
Tax on Dividend 444,19,40 556,36,64
Balance carried over to Balance Sheet 3279,83,29 2615,87,62
Total 14840,47,12 19206,67,07

V. EARNING PER EQUITY

SHARE

Basic Earnings Per Share Rs. 15.95 Rs. 22.76

Diluted Earnings Per Share Rs. 15.95 Rs. 22.76
Significant Accounting Policies & 17
Notes to the Consolidated Financial
Statements
The Schedules referred to above form 18
an integral part of the Consolidated
Balance Sheet

Page | 35
 Table No.17:Statement of Profit and Loss for SBI

3.4 Ratios Analysis of HDFC and SBI banks

(A) Meaning of Ration:

Ratio analysis is a tool that is extensively used for analyzing financial statements. It helps to
compare items found in financial statements with other items with the aim of analyzing the
financial state of a business.

Ratio analysis is a widely used tool for analyzing the financial situation of an organization. It is
the systematic usage of ratios to analyze the financial state of a business and ascertain its strength
and weaknesses, historic performance and present financial situation of an organization. The
numerical or quantitative association of two variables is known as ratio.

(B) Classification of Ratios:

Ratios may be classified in a number of ways to suit any particular purpose. Different kinds of
ratios are selected for different types of situations. Mostly, the purpose for which the ratios are
used and the kind of data available determine the nature of analysis. The various accounting
ratios can be classified as:

 Liquidity ratio: Liquidity or short-term solvency ratios are those ratios that are intended
to measure the liquidity or short-term solvency or short-term financial position of an
enterprise. Liquidity ratio indicates whether it will be possible for an enterprise to meet
its short-term obligations out of short-term resources or assets. Further, they indicate
whether an enterprise has sufficient working capital to carry on its day-to-day operations.

 Profitability ratio: Profitability ratios are ratios that measure the profitability of a
concern.Some type of profitability ratio,

Page | 36
 Gross profit ratio: Indicates the relationship between gross profit and sales.
Net profit ratio: Indicates the relationship between net profit and sales.
Return on total resources or total assets ratio: A return of 10 percent is considered as
an ideal ratio. If the actual ratio is 10 percent or more, it is an indication of the higher
productivity of total resources.
Earnings per share or EPS: The more the earning per share, the better is the
performance and the future prospects of the company.

 Coverage ratio:This ratio indicates how many times the net profit covers interest,
dividend etc. Some type of coverage ratio,
Fixed charges or interest coverage ratio: This ratio indicates as to how many times the
net profit of a concern covers its fixed charges. It indicates whether the business would
earn sufficient profits to pay the interest charges periodically. A higher fixed charges
cover indicates that there is greater margin of safety for the long-term lenders.
Debt service coverage ratio: This ratio is intended to indicate whether the business
would earn sufficient profits not only to pay the interest charges periodically, but also to
pay the periodical installments of the principal amount.
Dividend cover ratio: The dividend coverage ratio is sufficiently high, the indication is
that there is sufficient amount of retained profit, and so, slight variations in profits in the
future will not disturb the amount of dividend in the future as well.

 Turnover ratios:This ratio measures the level of activities, the performance or the
operatingefficiency of an enterprise. The prime activity of any business enterprise isthe
sale of its products and the various operations contributes to sales. Asthe activity ratios
are calculated on the basis of turnover, they are calledturnover ratios.

 Capital structure ratio:

They portray the long-term solvency i.e., long-term financial position of a business and
are useful to the long-term creditors, owners and the management.

Page | 37
 Debt-equity ratio: Debt refers to long-term liabilities; equity comprises capital, all
accumulated reserves and profits. It indicates the stake of the long term of creditors as
against owners.

The standard or ideal debt equity ratio is 2:1. If the debt is less than two times the equity,
the logical conclusion is that the financial health of the concern is sound and hence, the
stake or risk of the long-term creditors is relatively less.

(C) Comparison of HDFC and SBI banks by Ratios.

Comparison of HDFC Bank and SBI on value of ratios for this different classified ratios had
been used, Investment Valuation Ratios, Profitability Ratios, Management Efficiency Ratios,
Balance Sheet Ratios, Profit and Loss Account Ratios, Leverage Ratios, Debt Coverage Ratios,
Cash Flow Indicator Ratios.

Page | 38
 SBI HDFC
RATIOS
March’ 31 March’ 31
Investment Valuation Ratios
Face Value 1.00 2.00
Dividend Per Share 2.60 9.50
Operating Profit Per Share (Rs.) 21.64 44.77
Net Operating Profit Per Share (Rs.) 210.86 238.20
Free Reserves Per Share (Rs.) -- --
Bonus in Equity Capital -- --
Profitability Ratios
Interest Spread 5.72 7.52
Adjusted Cash Margin (%) 6.07 18.31
Net Profit Margin 6.07 20.41
Return on Long Term Fund (%) 83.57 70.54
Return on Net Worth (%) 6.89 16.91
Adjusted Return on Net Worth (%) 6.89 16.91
Return on Assets Excluding Revaluations 185.85 287.47
Return on Assets Including Revaluations 185.85 287.47
Management Efficiency Ratios
Interest Income / Total Funds 7.60 9.27 Table No.18:
Comparison of
Net Interest Income / Total Funds 2.64 4.25
HDFC Bank and SBI
Non-Interest Income / Total Funds 1.31 1.65
by Various Ratios
Interest Expended / Total Funds 4.96 5.02
Operating Expense / Total Funds 1.86 2.50
Profit Before Provisions / Total Funds 2.01 3.29
Net Profit / Total Funds 0.46 1.89
Loans Turnover 0.12 0.15
Total Income / Capital Employed (%) 8.91 10.92
Interest Expended / Capital Employed (%) 4.96 5.02
Total Assets Turnover Ratios 0.08 0.09
Asset Turnover Ratio 0.08 0.10
Profit And Loss Account Ratios
Interest Expended / Interest Earned 65.25 54.18
Other Income / Total Income 14.68 15.15
Operating Expense / Total Income 20.89 22.93
Selling Distribution Cost Composition -- --
Balance Sheet Ratios
Capital Adequacy Ratio 13.12 15.53
Advances / Loans Funds (%) 78.34 84.82
Debt Coverage Ratios
Credit Deposit Ratio 83.56 83.24
Investment Deposit Ratio 29.39 33.13 Page | 39
Cash Deposit Ratio 7.42 5.77
Total Debt to Owners Fund 13.55 8.25
(D) Interpretation of given Data Analysis

According to given all data of HDFC bank and SBI there are almost similarity in both banks by
their services. There are some many differences in their financial performing. If exactly we pick
up ratios then it would be easier to say that which bank has best financial performing. Obviously
according to the ratios HDFC Bank may be a good financial performer in market. SBI also has
their-own high values somewhere. Even then it would be a difficult to say that which bank is
performing well.

According to Figure no.1 and Figure no.7– Net Interest Income of both banks SBI and HDFC,
there are SBIs’ values are more than HDFC continuously high in only three years too, 2013-14,
2014-15, 2015-16.

In 2016 Net Interest Income of SBI is 56,882 (In Crore) and HDFC has 18,483 (In Crore). In
2015 Net Interest Income of SBI is 55,015 (In Crore) and HDFC has 22,396 (In Crore). In 2014
Net Interest Income of SBI is 49,282 (In Crore) and HDFC has 27,592 (In Crore). After this
analyzing SBI has greater net interest income than HDFC.

According to Figure no.2 and Figure no.8 – Earning per Share of both banks, there is also SBI
is greater than HDFC, but both banks are get increased than last two years 2014 and 2015.

Figure no.3 and Figure no.9 – Net Interest Margin, in this chart or figure HDFC is greater than
SBI. The values of SBI is 2014 – 4.3%, 2015 – 2.5% and in 2016 – 3.5% opposites this HDFCs’
value is 2014 – 4.30%, 2015 – 4.40% and in 2016 – 4.40%. According to this net interest margin
of HDFC is more than SBI but even then it get decrease in 2016 in comparison of 2014-15.

Figure no.4 and Figure no.10– Deposits and Advance, both of banks get Increased in deposit
and in advance too constantly from 2013-14, 2014-15 to 2015-16 as according to charts or figure
like; as per the value of SBI is 2015 – 16, Deposit 1,730,722 (In Crore) Advance 1,463,700 (In
Crore) and HDFC is 2015 – 16, Deposit 546,424 (In Crore) Advance 464,594 (In Crore) etc.

Page | 40
Figure no.5 and Figure no.11 – Earning in FY 2015-16, this figure or chart’s aim is to show
earning income 2015-16 in percentage of both banks by adding different categories and need.
Somewhere is SBI greater than HDFC and somewhere HDFC is Greater than SBI.

Figure no.6 and Figure no.12 –Expenditure in FY 2015-16, this figure or chart’s aim is to show
expenditure 2015-16 in percentage of both banks by adding different categories and need.
Somewhere is SBI greater than HDFC and somewhere HDFC is Greater than SBI.

Even after figures statement, according to data there are 4 tables are shown, 2 tables are related
to HDFC and 2 tables are related to SBI. Table no.14 is an Annual Balance Sheet of HDFC
2015-16 and Table no.16 is a Statement of Profit and Loss of HDFC 2015-16. Similarly as this
Table no.15 is an Annual Balance Sheet of SBI 2015-16 and Table no.17 is a Statement of
Profit and Loss of SBI 2015-16. The Main Aim to showing balance sheet and statement of profit
and loss of both banks is to be able to compare their annual report easily, briefly and correctly
and also for a better ratio result.

Ratio Analyzing

According to Table no.6, There is a comparison of both banks HDFC and SBI by using different
type of ratios like; Liquidity Ratio, Investment Valuation Ratios, Profitability Ratios,
Management Efficiency Ratios, Balance Sheet Ratios, Profit and Loss Account Ratios, Leverage
Ratios, Debt Coverage Ratios, Cash Flow Indicator Ratios. Other than this ratiothere are several
classifications of these all ratios as determine in the Table no.6.

In all kind of ratios HDFCs’ values and percentage are more than SBIs’ values and percentage.
Only in seven ratios SBI is greater than HDFC. Interest Expense / Interest Earned more by –
11.07, Credit Deposit Ratio more by –0.32, Cash Deposit Ratio more by –1.65, Total Debt to
Owner fund more by –5.3,Dividend Payout Ration Net Profit more by –0.75, Cash Earning
Retention Ratio more by – 1.15 and Adjusted Cash Flow Time more by – 106.52 than HDFCs’
values and percentage. After data analyzing HDFCs’ financial performance is good than SBI.

Page | 41
 CHAPTER 4

RESULT & DISCUSSION

4.1 Result and Discussion

This is a comparative study of Private Sector Bank and Public Sector Bank by HDFC and SBI
banks. There shown difference between Private Sector Bank and Public Sector Bank refer to
Table no.1 that introduction conclude that different sector banks quality and their range. In data
analyze and interpretation there are shown comparison of both banks refer to Table no.2 to
Table no.13 and Figure no.1 to Figure no.12. Tocompare of both banks there are shownRatio
analyze and Balance Sheet of both banks to differ their financial performance and profit and loss
statements refer to Table no.14, 15 of HDFC andTable no.16, 17of SBI. Ration analyze refer
to Table no.18 of both banksto compare of both banks to analyze their difference using ratios.

After analyzing that all data as a result somewhere HDFC bank has good performance and
somewhere SBI is good financial performer. HDFC bank is Private Sector Banks their taxes
charges and earning are more than SBI. Somewhere SBI is less than HDFC only because of taxes
and expenditures but even then may be SBI is more convenient bank for customers, because SBI
is Public Sector Bank their tax charges are less than HDFC.

According to data interpretation obviously HDFC also has a good financial performance but for
common man and middle class families may be SBI is a more convenient than HDFC.
Customers are borrow loans for Home loans, Education loans, Car loans and financial loan for
anything supposed to business, etc. then if customers borrow loans for their successive career,
for a well settled life or better future so, even then there what is need to pay more interest tax out
of there budget.

Page | 42
In a comparison of financial performance of HDFC and SBI banks, we can compete both banks
as their performance and according to data analyzing somewhere is SBI better and somewhere is
HDFC better, but even then HDFC performing is well than SBI from last three year and SBIs’
values were already high then HDFC i.e., Capital Investment and by working capital
management, Asset – based financing etc.

HDFC bank has a good CRM (Customer Relationship Management) with customers. Its services
also fast then SBI. Only a problem of HDFC is may be this is an expensive service for customers
especially for middle class families, SBIs’ services are slow then HDFCs’ services. SBI is public
sector bank that’s why Interest Rate on High Deposit is high of it than HDFC but HDFC get
marginally lower here. Mostly growth opportunities in public sector banks are Low i.e. SBI and
in private sector banks growth opportunities are Comparative High i.e. HDFC.

Page | 43
4.2 Suggestions

Based on the study conducted there are some of the suggestions for customers not for their
financial performance. May be the both banks have their best performance but I would suggest
that which quality and services banks need to increase their performance and CRM too.

 Banks should obey RBI norms and should provide facilities as per the norms. While the
customers should be given prompt services and the bank officials should be willingly
serving the customers.Bank should increase rate of saving accounts.
 Bank should provide loans at a lower interest rate and education loan should be given
with ease without much documentation.Fair dealings with the customers. More
contribution from the employee to the bank.
 The staff should be co-operative, friendly and must be capable of understanding the
problem of customers.
 Prompt dealing with permanent customer and speedy transaction without harassing the
customers.Each branch of each bank should be computerized even in rural areas for
speedy transaction.
 RTGS (Real Time Gross Settlement) and NEFT (National Electronics Funds Transfer)
system can play a very important role in speedy transaction.More ATM coverage should
be provided for the convenience of the customers. The charges for opening saving bank
account in private bank are too high. This should be taken care off.
 Customers generally complain that full knowledge regarding products and services are
not given to them. Hence the bank should be fair enough in disclosing the proper terms
and conditions of the product and services.
 The branch should promote cooperation and coordination among employees which can
enhance the rate of efficiency.Knowledge of local language should be a must for

Page | 44
 employees of banks.Maintenance of proper hierarchy should be there in the bank
employees.
 Customer relationship management in public sector banks should be given extra
importance.

4.3 Recommendations

I recommend about private and public sectors bank services increase and what should they do
not about the financial performance. I recommend according to customers satisfaction and for
their good and easier service and process.

For Public Sector Banks:

 Bank staff should be customer friendly and highly motivated to serve the normal
customers.As far as possible the bank should reduce the documentation process while
providing loan.
 Computerization should be done in banks at all levels and the operators should be
properly trained.
 Token system should be introduced so as to reduce the waiting line in the bank.
 Proper ambience in the banks can develop a healthy work culture.
 Should be flexible in providing interest of the deposited money.Quick services should be
provided.

For Private Sector Banks:

 24 hours banking should be introduced so as to facilitate the customers who don’t have
time in day time or week days.
 More ATM coverage should be provided for convenience of the customers.Should reduce
the amount while opening a new saving bank account.
 Should maintain a proper recruitment policy like the PSU (Public Sector Undertaking) to
attract genuine talent to work for the customers. Rather than recruiting on internal

Page | 45
 recommendation they should follow the IBPS (Institute of Banking Personnel Selection)
for recruitment to get better talent and better services from their employees.
 Should enhance the number of branches in rural areas to attract more customers.Should
advertise extensively regarding their operations and services to garner faith in them.

CHAPTER – 5

LIMITATIONS & SCOPE OF FUTURE RESEARCH AND CONCLUTION

5.1 Limitations and Scope of Future Research

Due to constraints of time and resources the study is likely to suffer from certain limitations.

Some of the respondents of the survey were unwilling to share information.The research was
carried out in a short period of time so. Therefore the sample size and other parameters were
selected accordingly so as to finish the work in given time frame.

The information given by the respondents might be biased because some of them might not be
interested in providing correct information. The officials of the bank supported me a lot but did
not have sufficient time to clear all the points elaborately.

To making this study research I get harder in ratio analyzing. There was so kind of ratios, it was
a difficult task for me to analyzing ratios but without ratio analyzing this research may be not
work. Annual report of both banks was very helpful for me for annual balance sheet. May be I
took lots of time for research and for making the right format of the report.

Apart from this whole research it was a quite good experience for me. My scope of this research
is that this research would be helpful for me in future always for comparison of to any
companies, banks and organizations. In our business management this is very important to
compare financial performance so that we would also be able to achieve our goals for our
company, that where we are getting low and what should improve an all that. Financial
accounting is one of the most important subject for me in business management and it is may be

Page | 46
necessary to all business management students to able to do financial accounting and this
research help me to at least come to know that how mush financial accounting important for us
to compete in market.

5.2 Conclusion

The objective of the study is to compare the financial performance of Private Sector Bank and
Public Sector Bank. For a better report conclusion chosen banks from both sectors, Private sector
bankHDFC and Public Sector bank SBI using various ratios, to identify achievements of both
banks in year 2015-2016.

This report is created in a comparison of HDFC and SBI banks and analyzing annual balance
sheet 2015-2016 of both banks by using different ratios for measure their financial performance.
To identify as a conclusion that which bank is more effective in market and comparing their
services and facilities and difference of Public Sector Banks and Private Sector Banks and details
of banks.HDFC banks’ financial performance is better than SBI. Even then SBI is better for
public service.

HDFC banks’ financial performance is better than SBI. Even then SBI is better for public
service.One of the reason for good performance of HDFC Bank is, it is a Private Sector Bank
and in private sector banks growth opportunities are comparatively high then Public Sector
Banks.According to annual balance sheets of both banks capital of SBI is more than HDFC, but
by comparisons of different Ratios HDFC has good financial performance.This report is a
comparative study of financial performance even then also highlighting on services which need
to improve both banks as suggestion for better customer service.

All the aspects of the study included introduction of the study, objective of the study, research
methodology, data interpretation and analysis, findings, suggestions and recommendations.
According to all of these there in a comparison of HDFC and SBI both banks are good in their
own performance some suggestions had given by my opinion for both banks Public Sector Bank
and Private Sector Bank too.

Page | 47
 BIBLIOGRAPHY

Books

 Financial Management,
 Management Accounting.

Authors:

 Extracted some details from course material of BBA from Financial Management. Author
is Mr. I. M. Pandey (Ph.D.).
 Extracted some details from course material of BBA from Management Accounting.
Authors are Mr. SanthosaShetty (M.Com, PGDCM, M.Phil.) and Mrs. Saraswathy K.
(MBA – Finance)
Articles
 The Economic Times Newspaper.

References:
 Laljawahar (2010). Accounting for Management. Himalaya Publishing House.
 Pillai R.S.N. and Bagavathi (2009). Management Accounting. Chand S. & Co.
 Maheshwari S.N(2009). Management Accounting & Financial Control Chand S. & Sons.
 Dr. Periasamy P(2010) Financial. Cost and Management Accounting.

E-References:
 http://www.hdfcbank.co.in
 http://www.sbi.co.in

Page | 48
 http://www.economictimes.indiatimes.com

Page | 49