04-07-2013, 04:50 PM
A PROJECT REPORT ON A Comprehensive Study On Financial Analysis
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EXECUTIVE SUMMARY
The concept of this project is to check whether HDFC BANK is performing well year after year or lacking in performance. The performance can be evaluated by doing Financial Analysis of Financial Statements of Bank. The purpose of this project is to evaluate the performance of HDFC BANK. It primarily aims at learning the various factors that can help I evaluation process. I have tried to find out the reasons or ground where it is lacking. I have also tried to find out the areas of improvement.
In order to do financial analysis of co. the various tools like RATIO ANALYSIS, COMPARATIVE FINANCIAL STATEMENT AND TREND PERCENTAGES have been used. In statistical tools, I’ve used CORRELATION, TIME SERIES ANALSIS (TREND VALUES) .In Hypothesis testing, I’ve used ANOVA TEST. The project also includes objective of study, Research Methodology, Analysis and Interpretation, findings recommendations limitation of study conclusion bibliography and annexure.
INTRODUCTION OF BANKING
MEANING AND DEFINITION:
Bank is an institution that deals in money and its substitutes and provides crucial financial services. The principal type of baking 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 cheque, draft or otherwise."
ORIGIN OF WORD BANK:
The origin of the word bank is shrouded in mystery. According to one view point the Italian business house carrying on crude from of banking were called banchi bancheri" According to another viewpoint 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 a raising a bank.
ORIGIN OF BANKING :
Its origin in the simplest form can be traced to the origin of authentic history. After recognizing the benefit of money as a medium of exchange, the importance of banking was developed as it provides the safer place to store the money. This safe place ultimately evolved in to financial institutions that accepts deposits and make loans i.e., modern commercial banks.
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 track record in India as well as in international markets. Since its inception in 1997, 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 also 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.
DISTRIBUTION NETWORK
HDFC bank has its Headqarters in Mumbai. The bank at present has an enviable network of 535branches spread over 312 cities across the country. All branches are linked on an online real time basis. Customer in 189 locations are also serviced through phone banking. 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.
COMPARATIVE FINANCIAL STATEMENTS
When financial statements figures for two or mote 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 ort 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.
RESEARCH METHODOLOGY
The procedure adopted for conducting the research requires a lot of attention as it has direct bearing on accuracy, reliability and adequacy of results obtained. It is due to this reason that research methodology, which we used at the time of conducting the research, needs to be elaborated upon. 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 way be judged by the reader whether the methodology of work done is sound or not.