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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
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
"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
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.
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 relating to the rate of interest. During the Mogul period, the indigenous
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
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:
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.
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.
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.
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 &
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
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.
Only with a proper knowledge of the types of banks and their functions, it is possible to
understand the profile of the present bank.
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
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 banks 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
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
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:
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.
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
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.
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
STRENGHS:
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.
OPPORTUNITY:
1. Branch expansion
2. Door step services
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.
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 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
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.
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.
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.
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) 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.
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.
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
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.
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
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.
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.
TYPES OF RATIOS
Proportion or Pure Ratio or Simple ratio.
Rate or so many Times.
Percentage
Fraction.
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 firms ability to meet its current obligations.
Long Term Solvency and Leverage Ratios: Long-term solvency ratios convey a firms
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.
CASH-FLOW STATEMENT
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.
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.
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 days 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.
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.
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).
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.
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 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 thats 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.
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.
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.
Sampling Design
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
depending on the research problem. In this study ratio analysis, comparative financial
The present study has been carried with the help of following research methodology to
achieve above stated objectives.
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.
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).
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.
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.
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:
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
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.
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.
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
The degree of liquidity performance adopted by the bank is depicted by this ratio.
Table 4. Liquid Assets to Total Assets Ratio for the Financial Years 2008-09 until 2012-
13.
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.
39873 0.1
40238 0.13
40603 0.11
40969 0.06
41334 0.07
This ratio is called quick ratio or near money ratio. This represents the ratio between
quick assets and current liabilities and computed as follows
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)
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.
Table 6. Credit to Deposit Ratio for HDFC Bank for the Financial Years 2008-09 until
2012-2013.
35.99
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.
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:
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.
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.
Table 7. Debt Equity Ratio for HDFC Bank for the Financial Years 2008-09 until 2012-
2013.
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.
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.
39873 12.18
40238 10.34
40603 10.93
40969 11.29
41334 11.05
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.
Table 9. Fixed Assets to Net Worth Ratio for HDFC Bank for the Financial Years 2008-09
until 2012-2013.
41334
40969
40603
40238
39873
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 ATMs 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.
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.
Table 10. Net Worth for HDFC Bank for the Financial Years 2008-09 until 2012-2013.
41334; 362,141,373
40969; 299,246,800
40603; 253,792,700
40238; 215,224,900
39873; 150,527,300
Figure 8. Net Worth for HDFC Bank for the Financial Years 2008-09 until 2012-2013.
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.
Table 11. Net Capital Ratio for HDFC Bank for the Financial Years 2008-09 until 2012-
2013.
39873 1.09
40238 1.11
40603 1.1
40969 1.1
41334 1.1
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.
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.
Table 12. Returns on Equity Ratio for HDFC Bank for the Financial Years 2008-09 until
2012-2013.
40969; 17.27%
40603; 15.47% 39873; 14.91%
40238; 13.70%
41334; 18.57%
41334 40969 40603 40238 39873
Figure 10. Returns on Equity Ratio for HDFC Bank for the Financial Years 2008-09
until 2012-2013.
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.
Table 13. Net Profit to Total Assets Ratio for HDFC Bank for the Financial Years 2008-
09 until 2012-2013.
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.
The ratio of net profit to net worth shows whether profitability is being maintained or not.
Table 14. Net Profit to Net Worth Ratio for HDFC Bank for the Financial Years 2008-09
until 2012-2013.
0.19
0.17
0.16 0.15
0.14
Figure 12. Net Profit to Net Worth Ratio for HDFC Bank for the Financial Years
2008-09 until 2012-2013.
Table 15. Net Profit to Fixed Assets Ratio for HDFC Bank for the Financial Years 2008-
09 until 2012-2013.
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.
GROSS RATIO
This ratio helps to ascertain how efficiently the gross income of the bank was earned. The
ratio was computed as follows.
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.
Table 16. Gross Ratio for HDFC Bank for the Financial Years 2008-09 until 2012-2013.
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 ATMs 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.
The operating expenses included interest, salary; allowances, provident fund contribution,
rent, legal expenses, audit expenses and other expenses (excluded provisions).
Table 17. Operating Ratio for HDFC Bank for the Financial Years 2008-09 until 2012-
2013.
Figure 15. Operating Ratio for HDFC Bank for the Financial Years 2008-09 until
2012-2013.
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.
The management expenses included salary; allowances, provident fund contribution, rent,
legal expenses, audit expenses and other expenses (excluded provisions).
39873 0.14
40238 0.14
40603 0.14
40969 0.13
41334 0.12
Figure 16. Management Ratio for HDFC Bank for the Financial Years 2008-09 until
2012-2013.
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.
Figure 17. Establishment Ratio for HDFC Bank for the Financial Years 2008-09 until
2012-2013.
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.
DuPont Financial Analysis Model is a rather straightforward method for assessing the
factors that influence a firms financial performance.
Table 20. Values for HDFC Bank for DuPont Analysis for the Financial Years 2008-09
until 2012-2013.
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 institutes
assets.
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.
ROE = ROA x EM
ROA = Net Income X Total Assets
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 banks leverage, and therefore its solvency risk, has
increased. A further breakdown of a banks profitability is that of dividing (ROA) into its
profit margin (PM) and asset utilization (AU) ratio components
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.
Time motion studies have helped identify the efficiency of the counters under
consideration by timing the activities of the counters for three consecutive days.
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.
Figure 19. Graphical representation of the average time for cash deposits at two counters
as part of Time Motion Studies.
Figure 20. Graphical representation of the average time for Cheques Deposits at two
counters as part of Time Motion Studies.
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
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.
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.
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.
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 general inflow of customers at the tellers is high during on Monday, Tuesday and
Friday with the lowest footfall on Wednesday.
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
10 10
9
8 8 8 8
7 7 7 7
6 6 6
5 5 5 5 5 5
4 4 4 4 4 4
3
2
Foot Fall at Welcome Desk over 5 working days during Business Hours
11 11
10 10
9
8 8 8 8
7 7 7 7
6 6 6
5 5 5 5 5 5
4 4 4 4 4 4
3
2
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
Foot Fall at ADM Counter over 5 working days during Business Hours
3
2 2 2
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
41814 0 0 0
41815 0 0 0 0 41816 0 41817 0 0 41820 0
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
2 2 2
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
0 0 0
10-11am 0
11-12pm 0
12-1pm 1-2pm 0 2-3pm
0 0 3-4pm
0 0 0
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
2 2
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
41814 0
41815 0 0 0 41816 041817
0 0 0 041820
0 0
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.
2 2
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
0
10-11am 0 0 0
11-12pm 0 0 0
12-1pm 1-2pm0 0 0
2-3pm 0
3-4pm
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.
Foot Fall at New Accounts over 5 working days during Business Hours
2 2 2 2 2
1 1 1 1 1 1 1 1 1 1 1 1 1 1
0 0
41814 0 0
41815 0 41816 0 41817 0 0 0 0
41820 0
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
1 1 1 1 1 1 1 1 1 1 1 1 1 1
0 0 0
10-11am 11-12pm 12-1pm 0 0 1-2pm
0 0 2-3pm
0 0 3-4pm0 0
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.
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.
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
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
41814 0 0 41815
0 0 0 41816 0 0
41817 0 0 0 41820
0
Foot Fall at Current Accounts over 5 working days during Business Hours
2 2 2
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
0 0 0
10-11am 0
11-12pm 0 0 0
12-1pm 1-2pm 0 0 2-3pm 0
3-4pm0
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 banks 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.
Table 30. Footfall on 5 working days during business hours at the Counter: PB
Authorizer-1 and the respective Daily total footfall.
1 1 1 1 1 1 1 1 1 1 1
0 41814
0 0 41815
0 0 0 0 0 0 41816
0 0 0 41817
0 0 0 0 41820
0 0
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.
1 1 1 1 1 1 1 1 1 1 1
0 0
10-11am 011-12pm
0 0 0 0 0 0
12-1pm 0 1-2pm
0 0 0 0
2-3pm0 0 0
3-4pm0
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
1 1 1 1 1 1 1 1 1 1 1
0 41814
0 0 41815
0 0 0 0 0 0 41816
0 0 0 41817
0 0 0 0 41820
0 0
Figure 36. Graphical representation of the Footfall at the Locker Operations counter
during business hours on 5 working days and categorization as per Date.
1 1 1 1 1 1 1 1 1 1 1
0 0
10-11am 011-12pm
0 0 0 0 0 0
12-1pm 0 1-2pm
0 0 0 0
2-3pm0 0 0
3-4pm0
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.
Table 32. Footfall on 5 working days during business hours at the Counter: PB
Authorizer-2 and the respective Daily total footfall.
1 1 1 1 1 1 1 1 1 1 1 1 1
41814 0 0 0
41815 0 0 0 41816
0 0 0 0 0 0
41817 0 41820
0 0
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.
1 1 1 1 1 1 1 1 1 1 1 1 1
0
10-11am 0
11-12pm 0 0
12-1pm 0 0 0
1-2pm 0 2-3pm
0 0 0 0 3-4pm
0 0 0
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.
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
1 1 1 1 1 1 1 1 1 1 1
0 0
41814 0 0 0 0
41815 0 0 41816
0 0 0 0 0 0 41817 0 0 41820
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.
1 1 1 1 1 1 1 1 1 1 1
0 0
10-11am 0 0 0
11-12pm 0 0
12-1pm 0 1-2pm
0 0 0 2-3pm
0 0 0 0 0
3-4pm
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 Managers 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 managers 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.
1 1 1 1 1 1 1 1 1 1 1
41814 0 0 0 0
41815 0 0 0
41816 0 0 0 0 0
41817 0 0
41820
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
1 1 1 1 1 1 1 1 1 1 1 1 1
0
10-11am 0
11-12pm 0 0
12-1pm 0 0 0
1-2pm 0 2-3pm
0 0 0 0 3-4pm
0 0 0
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 managers 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.
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
1 1 1 1 1 1 1
0 0
41814 0 0 0
41815 0 041816
0 0 0 0 041817
0 0 0 0 0
41820
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.
1 1 1 1 1 1 1
0 0 0
10-11am 0 0
11-12pm 0
12-1pm 0 0 1-2pm
0 0 0 0 2-3pm
0 0 0 0
3-4pm0
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 managers desk.
Table 36. Footfall on 5 working days during business hours at the Counter: Forex-1 and
the respective Daily total footfall.
1 1 1 1 1 1 1
41814 0 0 0 0 0 0 0
41815 0 0 41816
0 0 0 0 0 0 41817
0 0 0 0 0 41820 0
Figure 46. Graphical representation of the Footfall at the Forex-1 counter during business
hours on 5 working days and categorization as per Date.
1 1 1 1 1 1 1
0 0 0 0
10-11am 0 0
11-12pm 0 0 0
12-1pm 0 0 0
1-2pm 0 2-3pm
0 0 0 0 3-4pm
0 0 0 0
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
1 1 1 1 1 1 1 1
0 041814
0 0 0 041815
0 0 0 0 0 0
41816 0 041817
0 0 0 0 0 0 0
41820
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.
1 1 1 1 1 1 1 1
010-11am
0 0 011-12pm
0 0 0 0
12-1pm 0 1-2pm
0 0 0 0 0 0 0 0
2-3pm 0 3-4pm
0 0 0
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.
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.
Table 38. Footfall on 5 working days during business hours at the Counter: Forex-3 and
the respective Daily total footfall.
1 1 1 1 1
0 0 41814
0 0 0 0 0 41815
0 0 0 0 41816
0 0 0 0 0 41817
0 0 0 0 0 0 0 0
41820
10-11am 11-12pm 12-1pm 1-2pm 2-3pm 3-4pm
Figure 50. Graphical representation of the Footfall at the Forex-3 counter during business
hours on 5 working days and categorization as per Date.
1 1 1 1 1
010-11am
0 0 0 011-12pm
0 0 0 0 0 0
12-1pm 0 1-2pm
0 0 0 0 2-3pm
0 0 0 0 0 3-4pm
0 0 0
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.
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
2 2 2 2 2 2 2
1 1 1 1 1 1 1 1 1
0 0
41814 0 0 41815 0 0 41816 0 0 0 0
41817 0 0 41820 0
Figure 52. Graphical representation of the Footfall at the Forex Teller counter during
business hours on 5 working days and categorization as per Date.
2 2 2 2 2 2 2
1 1 1 1 1 1 1 1 1
0
10-11am 0 0
11-12pm 0 0
12-1pm 0 1-2pm0 0 2-3pm
0 0 0
3-4pm0 0
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.
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.
The bank has been growing good from the last five years indicating the positive
sign to the shareholders and the stakeholders.
Banks 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.
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.
Figure Annex-1: Individual Time taken for each transaction at Counter-A on three days
for Cash Deposits.
Figure Annex-2: Individual Time taken for each transaction at Counter-B on three days
for Cash Deposits.
Figure Annex-4: Individual Time taken for each transaction at Counter-B on three days
for Cheques Deposits.
Figure Annex-5: Individual Time taken for each transaction at Counter-A on three days
for Cheques Encashment.
Figure Annex-6: Individual Time taken for each transaction at Counter-B on three days
for Cheques Encashment.