HDFC Bank-Financial and Strategic Analysis-Case Study

Project Report on HDFC Bank-A Case Study on Financial and Strategic Analysis

Dissertation Writing Help on HDFC Bank- Research Proposal on Ratio Analysis

SWOT Analysis of HDFC Bank

SWOT Analysis of HDFC Bank

Strengths

HDFC Bank

Company Data Website: www.hdfcbank.com Status: Private sector bank

• High performing and high rating bank.
• The bank was sufficiently capitalised to cushion any increases in NPLs in 2010.

Weaknesses

• Volume of NPLs increased with the Centurion Bank of Punjab acquisition.
• Exposure to unsecured consumer finance has had an adverse affect during a financial crisis.

Opportunities

• The acquisition and associated extra business, including retail customer acquisition.

Threats

• The gradual entry of foreign banks operating more fully.

Company Overview

HDFC Bank, with its headquarters in Mumbai, has 1,412 branches and 3,295 ATMs in 528 Indian towns and cities. The bank was established in 1994 after the RBI allowed private entrants into the banking sector and it is now the country's third largest bank in terms of market capitalisation. HDFC Bank also has offices in Dubai and Bahrain.

HDFC Bank's asset quality ratio declined in 2009 but this is largely attributed to its 2008 acquisition of Centurion Bank of Punjab. HDFC Bank was hit, along with other private banks, by delinquencies in unsecured loans due to recessionary pressure. However, as with most Indian banks, HDFC is sufficiently capitalised to withstand such delinquencies and can afford the necessary provisions for bad debt.

It is India's leading issuer of new credit cards, issuing 70,000-80,000 new cards per month. However, 85% of new credit issuances have been made to existing customers and the bank is expected to curb subprime credit offerings and focus on higher net worth customers in future.

The bank has received many awards in recent years, including Best Bank from Business India and Business Today in 2008.

Table: Stock Market Indicators
	2004	2005	2006	2007	2008	2009	Oct 2010
Market Capitalisation, INR	149,102.55	221,258.50	336,563.78	611,612.06	424,442.91	730,327.13	1,129,334.11
Market Capitalisation, US$	3,430.80	4,911.40	7,604.24	15,517.24	8,719.94	15,696.68	25,366.89
Share Price, INR	518.37	708.75	1,067.95	1,729.10	998.35	1,702.25	2,441.25
Share Price, US$	11.93	15.73	24.13	43.87	20.51	36.59	54.83
Share Price, % change (eop)	48.56	31.90	53.37	81.81	-53.25	78.38
Change, year-to-date							13.81
Shares Outstanding (mn)			313.14	319.39	354.43	425.38	457.74
Source: IBA

Table: Balance Sheet (INRmn, unless stated)
			2006	2007	2008	2009
Total Assets			736,013.2	913,082.5	1,331,931	1,834,028
Loans & Mortgages			350,623	469,447.8	634,181.4	986,607.1
Total Deposits			542,908.9	660,636.3	982,670.8	1,402,551
Total Shareholders' Equity			53,526.7	64,989.8	115,720.8	151,378.8
Earnings per share (INR)			36.12	36.59	46.37	52.95
Source: IBA

Table: Balance Sheet (US$mn, unless stated)
			2006	2007	2008	2009
Total Assets			16,494.22	21,003.68	33,206.95	36,149.16
Loans & Mortgages			7,857.538	10,798.73	15,811.06	19,446.28
Total Deposits			12,166.71	15,196.65	24,499.39	27,644.63
Total Shareholders' Equity			1,199.55	1,494.96	2,885.09	2,983.72
Earnings per share (US$)			0.82	0.81	1.15	1.16
Source: IBA

Table: Key Ratios (%)
			2006	2007	2008	2009
Return on Assets				1.40	1.42	1.42
Return on Equities				19.51	17.72	16.89
Loan/Deposit Ratio			65.23	71.75	65.16	71.31
Loan/Asset Ratio			48.12	51.91	48.07	54.54
Equity/Asset Ratio			7.24	7.09	8.66	8.23
Total Risk Based Capital Ratio			11.41	13.08	13.6	15.09
Tier 1 Capital Ratio			8.55	8.58	10.3	10.18
Source: IBA If you want Dissertations, Thesis, Case Studies on Financial Management , Research Proposals, Term Papers, MBA Project Report on HDFC  Bank, Research Projects, Assignments, Coursework, Essays, Articles, PowerPoint Presentations and Synopsis, than contact Mahasagar Publications, Mumbai, India by calling +91 9819650213 or +91 8081344446  or visit website www.projectspapers.com