PROJECT REPORT ON

COMPARATIVE STUDY BETWEEN HDFC BANK

AND BANK OF BARODA

UNIVERSITY OF MUMBAI

FOR ACADEMIC YEAR 2017-2018

PROJECT GUIDE

DR. RASHMI MAURYA

PREPARED AND SUBMITTED BY

RITIKA DIDWANIA

T.Y.BMS (SEMESTER –V)

K.P.B. HINDUJA COLLEGE OF COMMERCE

CHARNI ROAD
 CERTIFICATE

This is to certify that Ms./Mr. RITIKA DIDWANIA of Bachelor of

Management Studies Semester 5 [2017-2018] has successfully
completed the Project on “COMPARATIVE STUDY BETWEEN
HDFC BANK AND BANK OF BARODA” under the guidance of
DR. RASHMI MAURYA .

Project Guide Co-ordinator

________________ ________________

Internal Examiner External Examiner

________________ ________________

Principal College Seal

 DECLARATION

To,

The Principal,

K.P.B. Hinduja College of Commerce,

315, New Charni Road,

Mumbai 400 004.

Respected Madam,

I, the undersigned hereby declare that the project

report entitled “COMPARATIVE STUDY BETWEEN HDFC BANK
AND BANK OF BARODA” is an original work developed and
submitted by me under the guidance of DR. RASHMI MAURYA.

The empirical findings in this report are not copied from any report
and are true and best of my knowledge.

DATE:

PLACE:

ROLL NO:

SEAT NO:

Signature of Student
 ACKNOWLEDGEMENT

I, would hereby like to thank “University of Mumbai” for giving me

an opportunity to present my skills in the form of this project which
will not only prove to be useful for my academic profile but will also
prove to be fruitful for my future for attaining jobs and also will help
me to face the growing competition in the corporate level.

I would also like to thank “Prof. Rashmi Maurya” for assisting and
guiding me in every possible way for preparing this wonderful project
or else completion of this project would not be possible.

I would also like to thank “K.P.B. Hinduja College of Commerce”

for timely availability of books and use of internet which have been an
important input into completion of this project.

Lastly, I would also like to thank each and every person who directly
or indirectly helped me in the completion of the project especially my
parents and peers who supported me throughout my project.

Place: Mumbai (RITIKA DIDWANIA)

Date:
 INDEX

Certificate
Declaration
Acknowledgement
Chapter 1 Introduction
Chapter 2 Literature Review
Chapter 3 Indian Banking System
Chapter 4 HDFC Bank
Chapter 5 Bank of Baroda
Chapter 6 Data Analysis and Interpretation
Chapter 7 Findings and Conclusion
Chapter 8 Suggestions and Recommendations
Bibliography
Annexure
 CHAPTER 1

INTRODUCTION

1.1 EXECUTIVE SUMMARY

When going through a book on Indian economy and banking progress the first
matter that comes in mind is the overall details about Indian economy. Banking is
one of the most important sector of Indian economy. Banks form the backbone of
any economy. With the debut of multinational private sector banks, banking
sector is facing stiff competition and a thirst to enhance their service quality in
order to gain a competitive edge over their customers. Banks are competing in a
highly competitive environment to offer quality oriented services according to
customer expectations. In this study different aspect of banks are studied e.g.
Services quality, Customer satisfaction, Bank efficiency, ATM facility, Online
banking etc. This study was aimed at comparing HDFC Bank and Bank of Baroda
on the criteria of public perception, basic amenities, customer centric services,
financial statements, ratios, etc. Research has been done in the selected areas of
Mumbai with the help of primary data collected using a structured questionnaire
circulated among a sample size of 100 respondents.
1.2 OBJECTIVE OF STUDY
 To study and compare various financial ratios of HDFC Bank and
Bank Of Baroda
 To study the preference of customers regarding HDFC Bank and
Bank Of Baroda
 To analyze which facility influences the customer most while
selecting a Bank
 To compare the various services provided by these banks
 To find the level of brand awareness
 To compare the market share of HDFC Bank and Bank Of Baroda
 To know about the customer recommendations regarding
improvement in the services and facilities provided by banks
1.3 SIGNIFICANCE OF STUDY

Research leads to expansion of knowledge. Every research is conducted to

fulfill certain objectives and these objectives in turn fulfill some purpose.
Banking services are regarded as one of the important services. Banks
provide financial services to the customers. Due to the rising competition and
liberalization the banking industry has become the buyer's market. Customer
satisfaction is a very important construct in today's market and it is directly
influenced by service quality. Therefore, this research will provide a clear
picture about comparative analysis of HDFC Bank and Bank of Baroda. It
will help to know about the various benefits, drawbacks and general review
of the people about these banks. This study will be useful to the general
public to get a better understanding about the facilities provided by both the
banks. It will help them in better decision making. It will help to identify the
real image of the bank in terms of customer base, satisfaction and
preferences. It might be useful for the prospect customers who want to invest
in these banks. The analysis of financial ratios might influence the investors’
decisions. The public review would facilitate the banks in improving
customer service and customer relationship management to get a better
competitive advantage in the market. It will promote ethics and human values
in the banks. It will enable the banks to fulfill the customer expectations. The
comparative study between these two banks will help to conclude which is a
better banking firm.
1.4 RESEARCH METHODOLOGY

“Systematic Method to gain knowledge.” The technique deployed to

analyze and interpret the data for the purpose of hitting the target objective. It
describes the data collection method, the sampling plan, the tools of
investigation, planning and testing of questionnaire, information from various
books, journals and the limitations of the study. This study requires the data
to be collected from two different sources namely primary source and
secondary source.

 Primary Data
The primary data is collected with help of structured questionnaire in
order to get firsthand information. Primary data can be collected by
observation and communication. The questionnaire is formulated on
the basis of the objectives. The questionnaire was distributed to the
sample of 100 people. Collected primary data is analyzed in order to
obtain true and reliable results which are interpreted to depict
significant findings, offer valid suggestions and draw appropriate
conclusion.
 Secondary Data
Secondary Data is type of quantitative data that has already been
collected by someone else. As the study is descriptive and analytical
in nature, it is important to obtain conceptual clarity through
explanation given in various books and contributions made by various
research studies. Secondary data was collected through various books,
journals, newspapers, reports, websites and financial statement of the
banks.
1.5 LIMITATION OF STUDY

 The study was limited to Mumbai City only. Hence findings may
differ for other parts of the country.
 Size of sample compared to the population is small and hence it might
not signify the ideas of entire population.
 Some respondents didn’t have time or were not willing to respond.
 The respondents were reluctant to fill in their personal details.
 Financial and time constraints lead to restrictions in various areas of
study.
 Some biasness might have occurred in analysis due lack of expert
knowledge.
 Secondary data might be outdated and may not be authentic.
 Frequent developments in banking sector can be a major reason of
limitation in this study.
 We cannot give proper comment on competitor’s services till we use
it. But I tried to collect as accurate information as possible. As we all
know services are intangible and we cannot predict its quality, it is a
thing to feel not to see.
 CHAPTER 2

LITERATURE REVIEW

Review of literature serves as the base for any researcher to understand his or her
research problem clearly and to design the methodology by which the study is to
be conducted. It is not only customary but also absolutely necessary for a
researcher to review the existing literature. By doing so, he/she may put greater
emphasis on those aspects of research problem which have not been duly covered
by earlier researchers. Moreover, it facilitates the comparison between the earlier
findings and findings of the present research study. A large number of studies
have been conducted on topics related to commercial banks in India. The
literature includes books, journals, magazines, Ph.D. theses, reports, etc. In this
chapter an attempt has been made to present in brief, a review of literature
available on the studies done so far.

 Buser S, Chen a and Kane E (1981) “Federal deposit insurance,

regulatory and optimal bank capital”
Buser et al studied the capitalization ratio of banks and argued that banks
generally have optimal capitalization ratio and need to remain well
capitalized when they have a franchise value. They confirmed the positive
relationship whether we use interest margin or return on assets as a
dependent variable in all specifications. This indicated that well
capitalized banks support lower expected bankruptcy costs for themselves
and their customers, which reduces their cost of capital.
 Vashisht A K (1987) “Performance appraisal of commercial banks in
India.”Ph.D. thesis. Himachal Pradesh University, Shimla, India.
He critically evaluated the trends and progress of commercial banks in
India during the period 1971-1983. The ratio analysis was used to evaluate
the performance of commercial banks with respect to different indicators.
He analyzed that commercial banks did very well with respect to branch
expansions, deposit mobilization and priority sector advances.

 Amandeep (1990) “ Profit and profitability of Indian nationalized

banks.” Ph.D. thesis. Punjab University, Chandigarh, India.
He evaluated the profits of nationalized banks. The study analyzed the
factors that influence banks and suggested that in order to improve the
banks’ profitability, banks need to focus on the management of spread,
burden, deposit composition, establishment expenses and income.

 Narayana & Brahmanandam (1990) in their study, “A Study of

Customer Services in Commercial Banks”
They have studied customer services in banks by analyzing physical
facilities, reputation of bank, complaints and suggestion system, staff
behavior besides their diverse services like account operations, cheque
operations, draft and money transfer operations etc. The authors have
concluded that the banks which are good in the said services are enjoying
more satisfied customers in comparison to the banks which are lagging in
the same.
 Levesque Terrence, Mc Dougall, Gordon H.G. (1996), in their study
“Determinants of Customer Satisfaction in Retail Banking”
They have examined the impact of service delays on customers experience
and their subsequent reaction. The author has found a positive correlation
in between the service delays and unpleasant customer experience. The
customer’s reaction to delays, however, differs. Whereas, some customers
switchover the service provider, others spread negative word of mouth. A
few customers, however, remained intact with the provider on account of
its good track record in the past.

 Nalini (2006) in her study, “A Service Quality Model for Customers in

Public Sector Banks”
She has opined that entry of new private sector banks in the banking
industry of India has led to higher utilization of technology, improved
customer service and better products.

 Jaiswal K.S and Neetu Singh (2007) in their study, “Retail Banking:
Indian Scenario”
They have elaborated that customer retention and customer share are the
two very important aspects for a concern apart from attracting new
customers. Customer share is the ratio of a customer’s purchase of a
category of products or services from supplier X to the customer’s total
purchase of products or services of that category from all suppliers. This,
thus, discards dead or nearly dead accounts from customer retained
category. The authors have also elaborated upon demographics, value,
attitude, belief, knowledge, needs and motivation as a base for designing
CRM and successful marketing.
 SL Gupta, Arun Mittal, “Comparative study of promotional studies
adopted by public and private sector banks in India” published in Asia-
pacific business review, July-September (2008)
The study concluded that public sector is more reliable but not so good in
quality and innovativeness, whereas a private sector bank is not so reliable
but is better in services, quality and innovation.

 Vijay M. Kumbhar (June 2011) research entitled “Customers’

satisfaction in ATM service: An empirical evidence from public and
private sector banks in India” published in Management Research and
Practice
The aim of this paper was to provide a preliminary comparative
investigation of the customer satisfaction in ATM service of public and
private sector banks in India. For this investigation primary data was
collected from 150 respondents of public and private sector banks through
a structured questionnaire. Collected data was analyzed according to the
objectives of the present research and result of the statistical analysis
indicates that private sector banks are providing more satisfactory ATM
service as compared to public sector banks. Empirical evidences indicates
that customers perception about Efficiency, Security and Responsiveness,
Cost Effectiveness, Problem Handling and Compensation and Contact
service related to ATM service is low in both public and privates sector
banks. Therefore both types of banks should be aware about these aspects
of ATM service to enhance customer satisfaction.
  Garg, P. and Sharma, R. (2014), “Home Loan: A Comparative Analysis
of S.B.I. and H.D.F.C. Bank”, International Journal of Scientific
Research.
This study concluded that the public sector banks are very popular among
the customer these days because the interest rate is lower in State Bank of
India as compare to H.D.F.C. bank and the trust level that customer have
with these banks is very high in comparison to H.D.F.C. bank. The public
sector bank also provide better facilities and services to the customer and
give all the information to the customer time to time through Short
Message Service(SMS) and internet banking. The information provided by
the private banks is sometimes fake and they tried to cheat customer for
their own benefits.

Based on above literature, we can say that there are some studies about banks in
India and their performance which were conducted with the help of various
techniques. In this study an attempt has been made to study the performance of
HDFC Bank and Bank of Baroda on the basis of financial ratios, customer’s
preference and service quality.
 CHAPTER 3
INDIAN BANKING SYSTEM

3.1 ORIGIN
The name ‘bank’ derives from the Italian word ‘banco’ meaning ‘desk or bench’
used during Renaissance by Florentine bankers, who used to make their
transactions above a desk covered by a green tablecloth. Since then banking
system has evolved a lot. Banking in India has undergone startling changes in
terms of growth and structure. Banking regulation act came in existence in 1949
with numerous provisions. As per Section 5(b) of Banking Regulation Act, 1949
banking is defined as ‘accepting, for the purpose of landing or investment, of
deposits of money from the public, repayable on demand or otherwise, and
withdraw able by cheque, draft, order or otherwise.’

Banks have influenced economies and politics for centuries. Historically, the
primary purpose of a bank was to provide loans to trading companies. Banks
provided funds to allow businesses to purchase inventory and collected those
funds back with interest when the goods were sold. For centuries, the banking
industry only dealt with businesses, not consumers. Over the years, banking
services have expanded to include services directed at individuals. Development
of IT had a great impact on the Indian banking system. It led to introduction of
online banking in India, formulation of committee on mechanization in the
banking sector in 1984 and use of standardized form of cheques and encoders.
There was a focus on computerization of branches which led to increasing
connectivity among branches through computers.
3.2 HISTORY OF BANKING IN INDIA

Without a sound and effective banking system India cannot have a healthy
economy. The banking system of India should not only be hassle free but it
should be able to meet new challenges posed by the technology and other internal
and external factors. In the past three decades Indian banking system has had
several outstanding achievements to its credit. The most striking is its extensive
research. It is no longer confined to only metropolitans or cosmopolitans in India.
In fact, Indian banking system has reached to the remote corners of the country.
This is one of the main reason for India’s growth. Initially an account holder had
to wait for hours at the bank counters for getting a draft or for withdrawing his
own money. Today, he has a choice. Gone are the days when the most efficient
bank transferred money from one branch to other in two days. Now transfers have
become simple and instant. Banking in India, in the modern sense, originated in
the last decades of the 18th century. From 1786 till today, the journey of Indian
Banking System can be segregated into three distinct phases. They are as
mentioned below:

 Early period from 1786 to 1969 of Indian Banks

 Nationalization of Indian Banks (1969 up to 1991)

 New phase of Indian Banking System with the advent of Indian Financial
& Banking Sector Reforms after 1991.
PHASE I
The first bank in India, the General Bank of India was set up in 1786. Bank of
Hindustan and Bengal Bank followed. The East India Company established Bank
of Bengal (1809), Bank of Bombay (1840), and Bank of Madras (1843) as
independent units and called them Presidency banks. These three banks were
amalgamated in 1920 and the Imperial Bank of India, a bank of private
shareholders, mostly Europeans, was established. Allahabad Bank was
established, exclusively by Indians, in 1865. Punjab National Bank was set up in
1894 with headquarters in Lahore. Between 1906 and 1913, Bank of India,
Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of
Mysore were set up. The Reserve Bank of India came in 1935.

During the first phase, the growth was very slow and banks also experienced
periodic failures between 1913 and 1918. There were approximately 1,100 banks,
mostly small. To streamline the functioning and activities of commercial banks,
the Government of India came up with the Banking Companies Act, 1949, which
was later changed to the Banking Regulation Act, 1949 as per amending Act of
1965. The Reserve Bank of India (RBI) was vested with extensive powers for the
supervision of banking in India as the Central banking authority. During those
days, the general public had lesser confidence in banks. As an aftermath, deposit
mobilization was slow. Moreover, the savings bank facility provided by the Postal
department was comparatively safer, and funds were largely given to traders.
94 banks in India failed between 1913 and 1918 as indicated in the following
table:

Year No. of banks failed Authorised capital (Rs. In lakhs) Paid-up capital (Rs. In lakhs)

1913 12 274 35

1914 42 710 109

1915 11 56 5

1916 13 231 4

1917 9 76 25

1918 7 209 1

PHASE II

The government took major initiatives in banking sector reforms after

Independence. In 1955, it nationalized the Imperial Bank of India and started
offering extensive banking facilities, especially in rural and semi-urban areas. The
government constituted the State Bank of India to act as the principal agent of the
RBI and to handle banking transactions of the Union government and state
governments all over the country. Seven banks owned by the Princely states were
nationalized in 1959 and they became subsidiaries of the State Bank of India.
In 1969, 14 commercial banks in the country were nationalized. They are;
 Central Bank of India
 Syndicate Bank
 Union Bank
 Bank of Baroda
 Canara Bank
 Indian Bank
 UCO Bank
 Bank of India
 Bank of Maharashtra
 Dena Bank
 Punjab National Bank
 Indian Overseas Bank
 Allahabad Bank
 United Bank of India
In the second phase of banking sector reforms, seven more banks were
nationalized in 1980. With this, 80 percent of the banking sector in India came
under the government ownership. The following are the steps taken by the
Government of India to Regulate Banking:
 1949: Enactment of Banking Regulation Act.
 1955: Nationalization of State Bank of India.
 1959: Nationalization of SBI subsidiaries.
 1961: Insurance cover extended to deposits.
 1969: Nationalization of 14 major banks.
 1971: Creation of credit guarantee corporation.
 1975: Creation of regional rural banks.
 1980: Nationalization of seven banks with deposits over 200 cores.
After the nationalization of banks, the branches of the public sector banks rose
to approximately 800% in deposits and advances took a huge jump by
11000%. Banking in the sunshine of Government ownership gave the public
implicit faith and immense confidence about the sustainability of these
institutions.

PHASE III

This phase has introduced many more products and facilities in the banking
sector as part of the reforms process. In 1991, under the chairmanship of M
Narasimham, a committee was set up, which worked for the liberalization of
banking practices. Now, the country is flooded with foreign banks and their
ATM stations. Efforts are being put to give a satisfactory service to customers.
Phone banking and net banking are introduced. The entire system became
more convenient and swift.

Time is given importance in all money transactions. The financial system of

India has shown a great deal of resilience. It is sheltered from crises triggered
by external macroeconomic shocks, which other East Asian countries often
suffered. This is all due to a flexible exchange rate regime, the high foreign
exchange reserve, the not-yet fully convertible capital account, and the limited
foreign exchange exposure of banks and their customers.

3.3 MAJOR CHALLENGES

 Traditional focus on limited range of products
 Requirement of skilled employees
 Implementation of latest technology
 Transparency and disclosures
 Enhancing customer service
3.4 STRUCTURE OF BANKING SECTOR IN INDIA

RBI

Scheduled
bank

Commercial Co-operative
bank bank

Regional rural Urban co- State co-

Foreign bank
bank operative operative
(40)
(196) (52) (16)

Public sector bank Private sector bank

(27) (30)

SBI and associate

Old
banks
(22)
(8)

Other nationalised New

banks
(8)
(19)
3.5 FINANCIAL RATIOS
 Current Ratio
Current ratio is a comparison of current assets to current
liabilities, calculated by dividing current assets by current liabilities.
Potential creditors use the current ratio to measure a company's liquidity
or ability to pay off short-term debts. It indicates whether the business can
pay debts due within one year out of the current assets.

 Quick Ratio
The quick ratio is calculated by adding cash, cash equivalents, short-term
investments, and current receivables together then dividing them by
current liabilities. Sometimes company financial statements don't give a
breakdown of quick assets on the balance sheet. The quick ratio measures
the amount of liquid assets available for each amount of current liabilities.

 Proprietary Ratio
The proprietary ratio is the proportion of shareholders' equity to total
assets, and as such provides a rough estimate of the amount of
capitalization currently used to support a business. Thus, the equity ratio is
a general indicator of financial stability.

 Operating Profit Ratio

The operating profit formula is calculated by dividing the operating
income by the net sales during a period. Operating income can be
calculated by subtracting operating expenses, depreciation, and
amortization from gross income or revenues. The operating profit ratio
indicates how much profit a company makes after paying for variable
costs of production such as wages, raw materials, etc.
 Net Profit Ratio
For the purpose of this ratio, net profit is equal to gross profit minus
operating expenses and income tax. The relationship between net
profit and net sales may also be expressed in percentage form. When it is
shown in percentage form, it is known as net profit ratio.

 Total Debt to Equity Ratio

Debt/Equity (D/E) Ratio, calculated by dividing a company's total
liabilities by its stockholders' equity, is used to measure a company's
financial leverage. The D/E ratio indicates how much debt a company is
using to finance its assets relative to the value of shareholders' equity.

 Dividend per share (DPS)

Dividends per share is calculated by dividing the dividend payout amount
shown on the balance sheet by the number of outstanding shares. Equity
share capital is divided by the company's face value per share to get the
number of outstanding shares. Dividends per share can also be calculated
by multiplying the face value per share by the rate of dividend.

 Earnings per share (EPS)

First, the preferred dividends paid from the net income are subtracted.
This tells the total earnings available to common shareholders. Next, the
total earnings just calculated is divided by the number of
outstanding shares listed on the balance sheet. This gives the EPS.

 Capital Adequacy Ratio (CAR)

 The capital adequacy ratio (CAR) is a measure of a bank's capital. It is
expressed as a percentage of a bank's risk weighted credit exposures. Also
known as capital-to-risk weighted assets ratio (CRAR), it is used to protect
depositors and promote the stability and efficiency of financial systems
around the world.

 Return on Assets
Net interest margin is a performance metric that examines how successful
a firm's investment decisions are compared to its debt situations. A
negative value denotes that the firm did not make an optimal decision,
because interest expenses were greater than the amount of returns
generated by investments.

 Return on Equity
The return on equity ratio or ROE is a profitability ratio that measures the
ability of a firm to generate profits from its shareholders investments in
the company. The return on equity (ROE) ratio tells you how much profit
the company can earn from your money. The higher the ROE ratio, the
higher the profitability.

 Cash Deposit Ratio

The cash-to-deposit ratio is a commonly used statistic for assessing a
bank's liquidity by dividing the bank's total loans by its total deposits. This
number is expressed as a percentage. If the ratio is too high, it means that
the bank may not have enough liquidity to cover any unforeseen fund
requirements, and conversely, if the ratio is too low, the bank may not be
earning as much as it could be.
 Market Capitalization
 The value of a company that is traded on the stock market, calculated by
multiplying the total number of shares by the present share price. The
investment community uses this figure to determine a company's size.

 Price Earnings Ratio

It is the ratio of the market price of a company’s stock to its earnings per
share (EPS). In essence, the price-earnings ratio indicates the amount an
investor can expect to invest in a company in order to receive one rupee of
that company’s earnings.

 Book Value Per Share

Book value per common share is a measure used by owners of common
shares in a firm to determine the level of safety associated with each
individual share after all debts are paid accordingly. In simple terms it
would be the amount of money that a holder of a common share would get
if a company were to liquidate.

 Face Value Per Share

Face value is the nominal value of a security stated by the issuer. For
stocks, it is the original cost of the stock shown on the certificate.

 Market Price Per Share

MPS is the price at which the shares of the company are quoted on the
stock exchange. It is determined by the market forces of demand and
supply.

CHAPTER 4
 HDFC BANK
The bank of any country plays very important role in the economic development
of country. Finance is regarded as the oxygen of trade and industry. The
development of banks in the country and development through banks in the
country have placed India amongst the top 5 fastest growing economies of the
world. Whole of the world is looking towards India as prospective dominant
player in the world's markets. The banks today have touched the life of every
citizen. Whether he has to keep his money at the bank, keep is valuable safe; book
the tickets for rail and air journeys; pay insurance premium, telephone bills,
electricity bills; purchase/sell securities from capital market, take loan for
business, for education, for house or for consumer items, everywhere the bank is
present. Basically the banks can be divided into two sectors-commercial banks
and co-operative banks. Commercial banks, which have national network and
provide a host of services are further divided into 2 sectors- Public sector banks
and Private sector banks. Public sector banks are fully controlled by government
(i.e. central government) and private sector banks have private ownership. The
present research is conducted keeping in view the sharp difference between public
and private sector banks.

4.1 PROFILE OF COMPANY

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's liberalisation 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.

HDFC (Housing Development Financial Corporation) Bank Limited is

an Indian banking and financial services company headquartered
in Mumbai, Maharashtra. It has 84,325 employees and has a presence
in Bahrain, Hong Kong and Dubai. HDFC Bank is India’s largest private sector
lender by assets.[8] It is the largest bank in India by market capitalization as of
February 2016. It was ranked 69th in 2016 BrandZ Top 100 Most Valuable
Global Brands. In 1994 HDFC Bank was incorporated, with its registered office
in Mumbai, India. Its first corporate office and a full service branch at Sandoz
House, Worli were inaugurated by the then Union Finance Minister, Manmohan
Singh. As of June 30, 2017, the bank's distribution network was at 4,727 branches
and 12,220 ATMs across 2,666 cities and towns.

VISION
To be customer driven best managed enterprise that enjoys market leadership in
providing housing related finance.

MISSION
HDFC Bank's mission is to be a World Class Indian Bank. The objective is to
build sound customer franchises across distinct businesses so as to be the
preferred provider of banking services for target retail and wholesale customer
segments, 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, corporate governance and regulatory
compliance. HDFC Bank’s business philosophy is based on five core values:
Operational Excellence, Customer Focus, Product Leadership, People and
Sustainability.

KEY PEOPLE
Mr. Aditya Puri
Mr. Aditya Puri holds a Bachelor's degree in Commerce from Punjab University
and is an Associate Member of the Institute of Chartered Accountants of India.
Mr. Puri has been the Managing Director of the Bank since September 1994. Mr.
Puri has nearly 40 years of experience in the banking sector in India and abroad.

4.2 PRODUCTS AND SERVICES

HDFC Bank provides a number of products and services including wholesale

banking, retail banking, treasury, auto loans, two wheeler loans, personal loans,
loans against property and credit cards.

The latest entry in the league is 'Project AI', under which HDFC Bank, over the
next few weeks, would deploy robots at select bank branches. These robots will
offer options such as cash withdrawal or deposit, forex, fixed deposits and demat
services displaying on a screen to customers.

 Accounts and Deposits

A deposit account is a savings account, current account or any other type
of bank account that allows money to be deposited and withdrawn by the
account holder. Some banks may charge a fee for this service, while others
may pay the customer interest on the funds deposited. HDFC Bank
provides savings account, salary account, current account, deposits, safe
deposit locker, demat account, rural account and pension account
facilities.

 Loans
 A loan is a debt provided by an entity (organization or individual) to
another entity at an interest rate, and evidenced by a promissory note
which specifies, among other things, the principal amount of money
borrowed, the interest rate the lender is charging, and date of repayment.
Acting as a provider of loans is one of the principal task of the banks.
Home loan, personal loan, car loan, educational loan, gold loan, etc. are
the types of loans provided by HDFC Bank.

 Cards
HDFC Bank’s cards are an ideal choice for safe, affordable and smart
form of transactions. These cards are a hassle-free way of paying bills
quickly, shopping safely and making money-savvy decisions. HDFC bank
has credit card, debit card, prepaid card and credit card reward program.

 Insurance
Protecting your assets, health and life in today's capricious times is a
priority on everyone's list. HDFC's vision to protect, support and preserve
helps creates a world-class portfolio of insurance policies and services that
not only safeguard your interest, but grant you complete peace of mind. It
provides various insurance schemes such as life insurance, health and
accident insurance, motor insurance, travel insurance, home insurance, etc.

 Investment Advice
HDFC Bank provides investment assistance to various investors by
providing services like investment product, monitoring investment and
investment advisory report.
 Government Schemes
 The ministries of the Government of India have come up with various useful
schemes from time to time. HDFC Bank acts as intermediary between
government and public as it facilitates National Pension System, Atal
Pension Yojana, Sukanya Samriddhi Yojana, etc.

 Forex
HDFC Bank facilitates utmost convenience and service excellence from
currency notes to travelers’ cheque and foreign travel cards to remittances.

 Smart Banking
Advancement in the field of information has made it possible for the
people to access their bank accounts and undertake banking transactions at
the tip of their fingers.

HDFC Bank provides net banking, credit card net banking, email
statements, phone banking, sms banking, mobile banking through browser,
etc. All of these provides ease in banking services.HDFC Bank is
headquartered in Mumbai. As of June 30, 2017, the Bank’s distribution
network was at 4,727 branches across 2,666 cities. All branches are linked
online on a real-time basis. Customers across India are also serviced
through multiple delivery channels such as Phone Banking, Net Banking,
Mobile Banking, and SMS based banking. The Bank’s expansion plans
take into account the need to have a presence in all major industrial and
commercial centers, where its corporate customers are located, as well as
the need to build a strong retail customer base for both deposits and loan
products. Being a clearing / settlement bank to various leading stock
exchanges, the Bank has branches in centres where the NSE / BSE have a
strong and active member base. The Bank also has a network of 12,259
 ATMs across India. HDFC Bank’s ATM network can be accessed by all
domestic and international Visa / MasterCard, Visa Electron / Maestro,
Plus / Cirrus and American Express Credit / Charge cardholders. It also
have Kisan Dhan Vikas e-Kendra.

4.3 MERGERS AND ACQUISITIONS

In a milestone transaction in the Indian banking industry, Times Bank Limited

(another private sector bank) was merged with HDFC Bank Ltd., February 26,
2000. This was the first merger of two private banks in the New Generation
Private Sector Banks. On May 23, 2008, the amalgamation of Centurion Bank of
Punjab with HDFC Bank was formally approved by Reserve Bank of India to
complete the statutory and regulatory approval process. The amalgamation added
significant value to HDFC Bank in terms of increased branch network, geographic
reach, and customer base, and a bigger pool of skilled manpower.

4.4REWARDS AND RECOGNITIONS

 Most Innovative use of Technology by IBA Innovation Awards 2013

 Best in Financial Services: Bank Category by MACCIA Awards 2013
 Best Corporate in Banking Sector by Dun & Bradstreet - Manappuram
Finance Limited Corporate Award 2014
 Best Equity Deal in Asia Award by Finance Asia Awards 2015
 Excellence in Customer Experience by IDC Insights Award 2015
 HDFC Bank was ranked 69th in 2016 BrandZ Top 100 Most Valuable
Global Brands.
  Best Banking Performer, India in 2016 by Global Brands Magazine
Award.
 Best Performing Branch in Microfinance among private sector banks by
NABARD, 2016
 Bank of the year and best digital banking initiative award 2016 by
Business Today- KPMG India’s Best Bank
 Best Domestic Bank - India by Asia money India Banking Awards 2017
 Sustained Excellence in Learning & Development by 12th BML Munjal
Awards 2017
 Best Analytics Implementation Award - HDFC Bank by Business world
Digital Leadership and CIO Awards 2017

4.5 CSR ACTIVITIES

As a socially responsible corporate, HDFC Bank acknowledges its
responsibility for the impact of its activities on the environment, consumers,
employees, communities and stakeholders. Hence, it proactively encourage
growth and development.
The major initiatives of HDFC Bank as are follows:
 Paperless Banking
The ATMs at HDFC Bank have gone paperless, enabling reduction of its
carbon footprint. The bank has reduced this effort a further fillip by
ensuring multichannel delivery through net banking, phone banking and
mobile banking. This reduces carbon emission from operations as well as
by reducing customer travel requirements.
 Solar ATMs
 The Bank in order to control its environmental footprint has introduced
solar ATMs. These use rechargeable Lithium Ion batteries which use solar
energy for their functioning, thereby reducing the consumption of
conventional energy.

 Energy Management
Bank has initiated “Energy Management Module” in 100 select branches
across 4 metro cities to pull data from sensors to monitor real time usage
and based on analytics will help control electricity wastage.

 Holistic Rural Development

Through Holistic Rural Development Programme (HRDP), HDFC Bank
drives it’s initiatives in the focus areas of Education, Skills Training and
Livelihood Enhancement, Natural Resource Management, Healthcare &
Hygiene and Financial Literacy and Inclusion. Under the programme, the
Bank is working in over 750 villages across 16 states in the country.
In villages across India financial literacy was delivered right at the
doorstep through our Dhanchayat programme which used vans to share
this important message in order to resolve the problem.

 Skills Training And Livelihood Enactment

For millions of Indians, formal education may be a distant dream. To
ensure that their dreams of a better life materialise, HDFC Bank focus on
equipping people with skills that can help generate a steady income and
contribute to a thriving economy. These projects range from competency-
based skill-oriented training and placement, capacity building, promoting
entrepreneurial activities and up skilling for agricultural and allied
practices. It focus on creating local opportunities where possible, for up
 skilling them in their existing occupations be it agriculture or allied
businesses such as dairy, poultry etc. Were possible we also provide
placement linked training as well. Each of these initiatives are tailor-made
to address the prevailing market conditions and geography.

 Education
HDFC Bank's education programmes focus on teacher trainer,
scholarships, career guidance and infrastructure support to enhance
learning across the country. HDFC Bank's educational programmes, are
aimed at the community at large and not limited to formal education.
Millions have learnt about the basics of savings, investment and access to
the organized sources of finance from financial literacy camps conducted
across the country through HDFC Bank's 4800 plus branch network.

 Health care and Hygiene

Through HDFC Bank’s initiatives it provide access to safe drinking water
and hygienic sanitation facilities. Our focus is on both schools as well as
the community. Community led sanitation campaigns, promoting hygienic
conditions through appropriate wastewater disposals and providing safe
drinking water are at the heart of this programme.

 Blood Donation Drive

 HDFC Bank conducts one of India's largest single day blood donation
drives. The Bank started this initiative in 2007 when over 4000 volunteers
came forward to donate blood. Over the past eight years, this initiative has
grown in size and stature. On 11th December 2015, HDFC Bank's All
India Blood Donation Drive was attended by 1,76,022 volunteers, with
1,49,562 units collected.

4.6RECENT DEVELOPMENTS

 HDFC Bank to develop 1,000 villages under CSR by FY'19

 HDFC Bank launches SmartUp Zone in Hyderabad

4.7PROFIT AND LOSS ACCOUNT

Profit & Loss account of

------------------- in Rs. Cr. -------------------
HDFC Bank
Mar 17 Mar 16 Mar 15 Mar 14 Mar 13
12 months 12 months 12 months 12 months 12 months
INCOME

Interest / Discount on Advances /

52,055.26 44,827.86 37,180.79 31,686.92 26,822.39
Bills
Income from Investments 15,944.34 14,120.03 10,705.61 9,036.85 7,820.26
Interest on Balance with RBI and
532.02 361.61 517.10 355.99 281.63
Other Inter-Bank funds
Others 774.34 911.95 66.41 55.78 140.59
Total Interest Earned 69,305.96 60,221.45 48,469.90 41,135.53 35,064.87
Other Income 12,296.50 10,751.72 8,996.35 7,919.64 6,852.62
Total Income 81,602.46 70,973.17 57,466.26 49,055.18 41,917.50
EXPENDITURE

Interest Expended 36,166.73 32,629.93 26,074.24 22,652.90 19,253.75

Payments to and Provisions for
6,483.66 5,702.20 4,750.96 4,178.98 3,965.38
Employees
Depreciation 833.12 705.84 656.30 671.61 651.67
Operating Expenses (excludes
12,386.55 10,571.66 8,580.29 7,191.61 6,619.07
Employee Cost & Depreciation)
Total Operating Expenses 19,703.34 16,979.70 13,987.54 12,042.20 11,236.12
Provision Towards Income Tax 7,916.97 6,507.59 5,204.03 4,269.41 3,275.76
Provision Towards Deferred Tax -327.54 -165.88 -91.23 24.27 -251.42
Provision Towards Other Taxes 0.00 0.00 0.75 0.75 0.60
Other Provisions and
3,593.31 2,725.61 2,075.01 1,587.27 1,676.40
Contingencies
Total Provisions and
11,182.74 9,067.32 7,188.56 5,881.70 4,701.34
Contingencies
Total Expenditure 67,052.82 58,676.96 47,250.34 40,576.80 35,191.21
Net Profit / Loss for The Year 14,549.64 12,296.21 10,215.92 8,478.38 6,726.28
Net Profit / Loss After EI &
14,549.64 12,296.21 10,215.92 8,478.38 6,726.28
Prior Year Items
Profit / Loss Brought Forward 23,527.69 18,627.79 14,654.15 11,132.18 8,399.65
Total Profit / Loss available for
38,077.33 30,924.01 24,870.07 19,610.56 15,125.93
Appropriations
APPROPRIATIONS

Transfer To / From Statutory

3,637.41 3,074.05 2,553.98 2,119.59 1,681.57
Reserve
Transfer To / From Capital
313.41 222.15 224.92 58.27 85.85
Reserve
Transfer To / From General
1,454.96 1,229.62 1,021.59 847.84 672.63
Reserve
Transfer To / From Investment
4.29 -8.52 27.54 3.22 17.66
Reserve
Dividend and Dividend Tax for
-1.69 -11.71 0.84 4.85 4.47
The Previous Year
Equity Share Dividend 0.00 2,401.78 2,005.20 1,643.35 1,309.08
Tax On Dividend 0.00 488.95 408.21 279.29 222.48
Balance Carried Over To Balance 32,668.94 23,527.69 18,627.79 14,654.15 11,132.18
Sheet
Total Appropriations 38,077.33 30,924.01 24,870.07 19,610.56 15,125.93
OTHER INFORMATION

EARNINGS PER SHARE

Basic EPS (Rs.) 57.18 48.84 42.00 35.47 28.49

Diluted EPS (Rs.) 56.43 48.26 42.00 35.21 28.18
DIVIDEND PERCENTAGE

Equity Dividend Rate (%) 550.00 475.00 400.00 343.00 275.00

4.8BALANCE SHEET

EQUITIES AND Rs. in crores

LIABILITIES
SHAREHOLDER'S March’17 March’16 March’15 March’14 March’13
FUNDS

Equity Share Capital 512.51 505.64 501.3 479.81 475.88

Total Share Capital 512.51 505.64 501.3 479.81 475.88

Reserves and Surplus 88,949.84 72,172.13 61,508.12 42,998.82 35,738.26

Total Reserves and

88,949.84 72,172.13 61,508.12 42,998.82 35,738.26
Surplus

Total ShareHolders
89,462.35 72,677.76 62,009.42 43,478.63 36,214.15
Funds

Deposits 643,639.66 546,424.19 450,795.64 367,337.48 36,214.15

Borrowings 74,028.87 53,018.47 45,213.56 39,438.99 33,006.60
Other Liabilities and
56,709.32 36,725.13 32,484.46 41,344.40 34,864.17
Provisions

Total Capital and

863,840.19 708,845.57 590,503.07 491,599.50 400,331.90
Liabilities

ASSETS

Cash and Balances

with Reserve Bank of 37,896.88 30,058.31 27,510.45 25,345.63 14,627.40
India

Balances with Banks

Money at Call and 11,055.22 8,860.53 8,821.00 14,238.01 12,652.77
Short Notice

Investments 214,463.34 163,885.77 166,459.95 120,951.07 111,613.60

Advances 544,568.20 464,593.96 365,495.03 303,000.27 239,720.64
Fixed Assets 3,626.74 3,343.16 3,121.73 2,939.92 2,703.08

Other Assets 42,229.82 38,103.84 19,094.91 25,124.60 19,014.41

Total Assets 863,840.19 708,845.57 590,503.07 491,599.50 400,331.90

OTHER
ADDITIONAL
INFORMATION

Number of Branches 4,715.00 4,520.00 4,014.00 3,403.00 3,062.00

Number of Employees 84,325.00 87,555.00 76,286.00 68,165.00 69,065.00

Capital Adequacy
15 16 17 16 17
Ratios (%)

KEY
PERFORMANCE
INDICATORS
Tier 1 (%) 13 13 14 12 11
Tier 2 (%) 2 2 3 4 6
ASSETS QUALITY
Gross NPA 5,885.66 4,392.83 3,438.38 2,989.28 2,334.64

Gross NPA (%) 1 1 1 1 1

Net NPA 1,843.99 1,320.37 896.28 820.03 468.95
CONTINGENT
LIABILITIES,
COMMITMENTS
Bills for Collection 30,848.04 55,242.58 22,304.93 20,943.06 26,103.96

Contingent Liabilities 817,869.59 821,565.54 975,233.95 723,154.91 720,122.43

4.9COMPUTATION OF RATIOS

 Market Capitalization = Rs. 477,522.57 cr (As on 1/12/17)

 P/E Ratio = 30.03 times
 Book Value = Rs. 346.23 per share
 Face Value = Rs. 2.00 per share
 Market Value = Rs. 1848.20 per share (As on 1/12/17)
 Name of ratio Formula Mar’17 Mar’16 Mar’15 Mar’14 Mar’13

Current Ratio Current assets r 0.06 0.07 0.04 0.06 0.06

Current liabilities
Quick Ratio Quick Assets you 11.19 14.51 12.69 8.55 7.84
Quick Liabilities
Proprietary Ratio (%) Proprietor’s fund x 100a 10.36 10.25 10.50 8.84 9.05
Total assets
Operating Profit Ratio 3.25 2.56 2.51 1.35 -0.36
Operating Profit x 100
(%) Net Sales
Net Profit Ratio (%) Net Profit x 100 20.99 20.41 21.07 20.61 19.18
Net Sales
Total Debt-Equity Total Debt a 8.02 8.25 8.00 9.36 9.09
Equity
Ratio
Dividend Per Share Total Dividend you 11 9.5 8 6.85 5.5
No. of equity shares
Earnings Per Share NPAT – PD you 57.18 48.84 42.15 35.47 28.49
No. of Equity Shares
CAR (%) Tier1+Tier2 a x100 14.6 15.53 16.79 16.07 16.80
Risk Weighted Assets
Net Interest Margin Net Interest Income a 3.83 3.89 3.79 3.75 3.94
Interest Earning Assets
Return on Equity (%) Net Income a x 100 16.26 16.91 16.47 19.50 18.57
Shareholder’s Fund
Cash Deposit Ratio Total Loans you x 100 5.71 5.77 6.46 6.02 5.46
Total Deposits
COMMENTS

 Current ratio has been more or less same throughout the period of 5
years. It was highest in the year 2016 and lowest in the year 2015. It has
decreased in 2017 as compared to 2016.
 Quick ratio has increased by 42.73% from 2013 to 2017. However, it has
decreased by 22.88% in 2017 as compared to 2016. It was highest in the
year 2016 and lowest in the year 2013
 Proprietary ratio was lowest in the year 2014 which then moved to
highest in the year 2015. Thereafter it has decreased in the year 2016 and
further increased in the year 2017. It has been on the similar lines in the
last three years.
 Operating profit ratio is higher the better. It was negative in 2013 which
indicates unfavorable conditions. It is highest in 2017. It has increased
steadily from 2014 to 2107
 Net profit ratio was highest in 2015 and lowest in 2013. It increased from
the year 2013 to 2015 and it has been on the similar lines since then.
 Total debt equity ratio has decreased in the year 2017 as compared to
2013. It was highest in the year 2014 and lowest in 2015. Decrease in the
ratio indicates decrease in the debts of the company.
 Dividend per share has increased consistently from 2013 to 2017. This
is favorable for the investors. This attracts more number of investors.
 Earning per share has increased by more than 100% from 2013 to 2017.
It shows a high growth in the earnings of the company.

 CAR of the bank has decreased in 2017 as compared to 2013. It has been
 on the similar lines from 2013 to 2015. Decrease in CAR is discouraging.
 Net Interest Margin decreased from 2013 to 2014. Afterwards, it
increased from 2014 to 2016. Later on, in 2017 it again decreased. It was
lowest in 2014 whereas highest in 2013.
 Return on Equity has decreased by 12.44% from 2013 to 2017. It was
highest in 2014. It increased for the next two years and then decreased in
the last year becoming the lowest.
 Cash Deposit Ratio showed continuous growth from 2013 until 2015
thereafter, it declined. It was highest in 2015 and lowest in 2013.
However, there is only slight difference in past 5 years.

CHAPTER 5
 BANK OF BARODA

5.1 PROFILE OF COMPANY

Bank of Baroda is an Indian state-owned International banking and financial

services company headquartered in Vadodara (earlier known as Baroda) in
Gujarat, India. It is the second largest bank in India, next to State Bank Of India.
Its headquarters is in Vadodara, it has a corporate office in the Mumbai. The bank
was founded by the Maharaja of Baroda, Maharaja Sayajirao Gaekwad III on 20
July 1908. The bank, along with 13 other major commercial banks of India, was
nationalized on 19 July 1969, by the Government of India and has been
designated as a profit-making public sector undertaking (PSU).Based on 2017
data, it is ranked 1145 on Forbes Global 2000 list. BoB has total assets in excess
of ₹ 3.58 trillion (making it India’s 2nd biggest bank by assets), a network of
5538 branches in India and abroad, and 10441 ATMs as of July, 2017.

VISION
It has been a long and eventful journey of almost a century across 25 countries.
Starting in 1908 from a small building in Baroda to its new hi-rise and hi-tech
Baroda Corporate Centre in Mumbai, is a saga of vision, enterprise, financial
prudence and corporate governance. Bank continuously attempts to adapt to the
dynamic economic environment while engaging in long term relationships to
provide superior customer service. Bank’s constant endeavor to delight its
customers, which is built on its strong fundamentals will make it stronger, more
resilient and enable to achieve its vision of to be the Most Admired Bank.

MISSION
To be a top ranking National Bank of International Standards committed to
augmenting stake holders' value through concern, care and competence.

KEY PEOPLE
P. S. Jayakumar (Managing Director & CEO)
Mr. P. S. Jayakumar, 55 years is a Chartered Accountant by qualification and
additionally holds a Post Graduate Diploma in Business Management from XLRI
Jamshedpur. He also has the distinction of being a Chevening Gurukool Scholar
through the London School of Economics and Political Science. Mr. Jayakumar
joined Bank of Baroda on October 13, 2015 and has since been steering the
Bank's comprehensive transformation journey currently underway across all
aspects - business, digital and technology, compliance and controls, organization
and people.

5.2 PRODUCTS AND SERVICES

Bank of Baroda provides a number of products and services including wholesale

banking, retail banking, treasury, auto loans, two wheeler loans, personal loans,
loans against property and credit cards.

 Accounts and Deposits

A deposit account is a savings account, current account or any other type
of bank account that allows money to be deposited and withdrawn by the
account holder. Some banks may charge a fee for this service, while others
may pay the customer interest on the funds deposited. Bank of Baroda
provides facilities for savings account, current account, salary account,
demat account, fixed deposit and recurring deposit as well as safe lockers.

 Loans
 A loan is a debt provided by an entity (organization or individual) to
another entity at an interest rate, and evidenced by a promissory note
which specifies, among other things, the principal amount of money
borrowed, the interest rate the lender is charging, and date of repayment.
Acting as a provider of loan is one of the main function of banks. Bank of
Baroda provides home loan, education loan, vehicle loan, personal loan,
mortgage loan, traders’ loan, etc.

 Cards
A payment card is part of a payment system that enables its owner (the
cardholder) to make a payment by electronic funds transfer. There are a
number of types of payment cards, the most common ones being credit
cards and debit cards. Bank of Baroda has credit cards, debit cards and
prepaid cards.

 Insurance
Protecting your assets, health and life in today's capricious times is a
priority of everyone's list. Insurance provides such protection to the
insured. Bank of Baroda offers various insurance schemes for life
insurance, health insurance and general insurance.

 Government Schemes
The ministries of the Government of India have come up with various
useful schemes from time to time. Bank of Baroda provides assistance to
the government in providing such schemes to the general public. It offers
investment in schemes like PPF, Atal Pension Yojna, National Pension
System, Sukanya Samriddhi Yojna, Pradhan Mantri Jan Dhan Yojan, etc.
 Assistance in Investment
 Bank of Baroda provides investment assistance to various investors by
providing services like investment product, monitoring of portfolio
investment scheme, transfer of shares, managing the demat account, etc.

 Smart Banking
Advancement in the field of information and technology has made it
possible for the people to access their bank accounts and undertake
banking transactions at the tip of their fingers. Bank of Baroda provides
BHIM App, BHIM Baroda pay, online donation, cash on mobile, gift
cards, Baroda M-clip (mobile wallet), etc. These facilities provide ease in
banking.

 Forex
Bank of Baroda, one of the major public sector banks in India having a
strong global presence with a wide network of 101 overseas offices,
including those of subsidiaries, spread over 24 countries, is considered as
a market leader in foreign exchange operations in India. The modern state-
of-the-art dealing room at its Specialized Integrated Treasury Branch
(SITB) at BKC, Mumbai provides the necessary wherewithal to its 152
designated branches across the length and breadth of the country
authorized to handle foreign exchange business of its clientele.

5.3 ACQUISITIONS AND MERGERS

Traders bank limited was merged with Bank of Baroda on May 13, 1988. On June
3, 1999 Bareilly Corporation Bank Ltd. was merged with Bank of Baroda.
Benares State Bank Ltd. was merged with Bank of Baroda on June 20, 2002.
Following the merger of State Bank of India and associate banks, Bank of Baroda
and Canara Bank may acquire smaller banks like Vijaya Bank, United Bank of
India, Union Bank of India, Dena Bank and UCO Bank, officials told the
Business Standard.

5.4 REWARDS AND RECOGNITIONS

 Business World Best Bank 2011 Awards

 Award for “Best Intellectual Resource Utilization Practices IN 2011

 Bank of Baroda conferred Special Award for Best IT Team at IDRBT

Banking (Technology Excellence Awards 2012-13)

 National Prize – First Rank in Innovative Training Practices for the year
2014 from ―Indian Society for Training and Development (ISTD).

 The Most Efficient Public Sector Bank for the year 2014 by Dalal Street
Investment Journal in the Best PSU‘s of India Awards.

 Bank of Baroda has bagged prizes in four categories under All India RBI
Rajbhasha Shield Competition for 2014-15

 Bank of Baroda won First Prize under All India Rajbhasha Kriti Purashkar
Scheme of Govt. of India for Bank’s IN 2015

 Best Public Sector Bank Award under the category of Global Business at
the Dun & Bradstreet Banking Awards 2015.
  Bank of baroda was awarded as first runner up for "Best Financial
Inclusion Initiative" in 2016

 Bank of Baroda won -3- Awards at the 55th Association of Business

Communicators of India (ABCI) Awards 2016.

 Bank of Baroda bags Forbes India Leadership Award in April 2017

 Bank was awarded for “Excellence in Banking, (PSU Sector)” and

“Excellence in Education Loan” at 7th My FM Stars of the Industry
awards for Excellence in Banking, Insurance and Financial Services held
in Mumbai on 14th February, 2017.

5.5 INITIATIVES

Bank of Baroda is a pioneer in various customer centric initiatives in the Indian

banking sector. Bank is amongst first in the industry to complete an all-inclusive
rebranding exercise wherein various novel customer centric initiatives were
undertaken along with the change of logo. The initiatives include setting up of
specialized NRI Branches, Gen-Next Branches and Retail Loan Factories/ SME
Loan Factories with an assembly line approach of processing loans for speedy
disbursal of loans.

The major ongoing initiatives of the Bank are detailed below:

 BUSINESS PROCESS REENGINEERING (BPR)

Bank had initiated a major Business Process Reengineering to give a big
 boost to sales growth by enhancing customer satisfaction and by making
possible alternate channel migration thus reinventing itself to challenges
of the 21st century. Bank’s BPR project known as “Project- Navnirmaan”
has altogether 18 activities covering both the BPR and organizational
restructuring, aimed at transforming the Bank’s branches into modern
“sales & service” outlets. The most important initiatives planned under
this project include –
(1) Conversion of all metro and urban branches into modern centers
known as Baroda Next branches

(2) Creation of Automated and Leaner Back Offices like City Back Office
(for automated cheque processing etc. ), Regional Back Office (for faster
account opening etc. ), Establishment of two Call Centers, Creation of
Academy of Excellence, Introduction of Frontline Automation at select
branches for customer convenience and Organizational Restructuring.

 PEOPLE INITIATIVES
Bank is endowed with a competent and motivated employee base which is
engaged in handling the extensive business operations of the Bank across
the globe. Strategic HR interventions like, cross border and cross cultural
work exposure to its managers, hiring diverse functional specialists to
support line functionaries and complementing the technical competencies
of its people by imparting conceptual, managerial and leadership skills,
gave the Bank competitive advantage. Bank launched a comprehensive
leadership development program ‘Project UDAAN’ during 2010-11 with
the prime objective of creating leaders for the future. Such a massive and
comprehensive leadership development effort is unparalleled in the Indian
banking industry and first of its kind for any Indian state-owned Bank.
 These kinds of elaborate man management policies have made the Bank a
breeding ground for business leaders.

 MARKETING INITIATIVES
Ever since its rebranding in 2005, Bank has consistently promoted its
major strengths viz. large international presence; technological
advancement and superior customer service etc. Bank had introduced the
sub brand BARODA NEXT-State of the Art-Straight from the Heart to
showcase how it has utilized technology to nurture long term relationships
for superior customer experience. Bank’s constant endeavor to strengthen
its branch/ATM network combined with well informed staff offering
personalized service at its various touch points have enhanced customer
interactions and satisfaction. Thus the Bank has firmly positioned itself as
a technologically advanced customer-centric bank.

 CSR INITIATIVES
Bank has a long legacy and tradition of contributing actively to the social
and economic development of the communities in which it operates
through various development activities in the realm of education, health,
human welfare and other social activities. Bank of Baroda always
transcends from business interest and reaches out to weaker section of
society, with a view to make a meaningful difference to them.

In order to promote self-employment on sustained scale to the unemployed

rural youth by providing them training and hand holding support, bank has
 set up 49 Baroda Swarojgar Vikash Sansthan (Baroda-R-SETI) in seven
states which included scheduled caste, scheduled tribe, minorities and
even backward communities.

Bank has also established 51 Financial Literacy and Credit Counseling

Centers (FLCC) in the name of ‘SAARTHI’ in nine states to provide the
financial counseling services, financial literacy and awareness of banking
services in rural and urban areas.

 NEW TECHNOLOGY PLATFORM

Bank has been providing to its customers Internet Banking, viz., Baroda
Connect and other facilities such as online payment of direct and indirect
taxes and certain State Government taxes, utility bills, rail tickets, online
shopping, donation to temples and institutional fee payment. Bank has a
wide network of ATMs across the country and has also launched mobile
ATMs in select cities. Initiatives have been taken to provide corporate
customers with facilities like direct salary upload, trade finance and State
Tax payments etc. Bank has introduced Mobile Banking (Baroda M-
connect) and prepaid gift cards.

Bank has implemented the Global Treasury Solution in its key territories
like UK, UAE, Bahamas, Bahrain, Hong Kong, Singapore and Belgium.
Bank has taken various technological initiatives in overseas operations
such as implementation of Centralized SWIFT activity through Data
Centre in Mumbai, Payment Messaging System with Anti Money
Laundering check, Anti Money laundering Compliance and Online List
Matching solution. While Bank implemented Transaction-based Internet
Banking facility for its customers in Uganda, Botswana, UAE, New
Zealand, Kenya, Mauritius and Seychelles, a View based e-banking
 facility was made available in Fiji, Oman, Tanzania and UK.

5.6 RECENT DEVELOPMENTS

 Bank of Baroda acquired the semi naming rights of Sikanderpur Metro

Station in Gurugram. This is the first time that a public sector bank has
bagged the naming right of a metro station.

 Bank of Baroda sealed a 3-year principal sponsorship contract with

Olympics 2016 Women's badminton Silver medalist PV Sindhu and
India's No 1 ranked Men's Badminton player K Srikanth.

 Bank of Baroda became the first National Supporter (Indian sponsor) of

the FIFA U-17 World Cup India 2017, the first football World Cup to be
hosted in India.

5.7 PROFIT AND LOSS ACCOUNT

Profit & Loss account of ------------------- in Rs. Cr. -------------------
Bank Of Baroda
Mar 17 Mar 16 Mar 15 Mar 14 Mar 13
12months 12 months 12 months 12 months 12 months
INCOME

Interest / Discount on
27,523.93 29,796.23 30,802.68 27,878.09 25,867.06
Advances / Bills
Income from Investments 10,596.33 10,673.22 9,701.07 8,695.99 7,483.39
Interest on Balance with RBI
1,990.86 1,305.92 1,549.79 1,533.86 1,443.02
and Other Inter-Bank funds
Others 2,088.81 2,285.90 910.01 831.76 403.19
Total Interest Earned 42,199.93 44,061.28 42,963.56 38,939.71 35,196.65
Other Income 6,758.06 4,998.86 4,402.00 4,462.74 3,630.62
Total Income 48,957.99 49,060.14 47,365.55 43,402.45 38,827.28
EXPENDITURE

Interest Expended 28,686.52 31,321.43 29,776.32 26,974.36 23,881.39

Payments to and Provisions for
4,637.77 4,978.03 4,261.35 4,139.72 3,449.65
Employees
Depreciation 511.35 501.33 340.39 345.03 300.64
Operating Expenses (excludes
Employee Cost & 4,147.28 3,443.78 3,072.39 2,652.32 2,196.45
Depreciation)
Total Operating Expenses 9,296.40 8,923.14 7,674.13 7,137.07 5,946.74
Provision Towards Income Tax 1,089.56 1,769.84 2,022.17 956.23 350.51
Provision Towards Deferred
0.00 -3,072.38 0.00 0.00 0.00
Tax
Other Provisions and
8,502.37 15,513.65 4,494.50 3,793.71 4,167.92
Contingencies
Total Provisions and
9,591.93 14,211.11 6,516.67 4,749.94 4,518.43
Contingencies
Total Expenditure 47,574.85 54,455.68 43,967.12 38,861.37 34,346.56
Net Profit / Loss for The
1,383.14 -5,395.54 3,398.44 4,541.08 4,480.72
Year
Net Profit / Loss After EI &
1,383.14 -5,395.54 3,398.44 4,541.08 4,480.72
Prior Year Items
Total Profit / Loss available 4,480.72
1,383.14 -5,395.54 3,398.44 4,541.08
for Appropriations
APPROPRIATIONS

Transfer To / From Statutory

345.78 0.00 849.61 1,135.27 1,120.18
Reserve
Transfer To / From Special
350.92 0.00 1,093.90 912.07 850.00
Reserve
Transfer To / From Capital
353.65 0.00 108.21 8.69 81.45
Reserve
Transfer To / From General
0.00 -5,395.54 364.57 1,401.38 1,369.47
Reserve
Transfer To / From Investment
0.00 0.00 130.46 0.00 0.00
Reserve
Equity Share Dividend 332.79 0.00 727.97 923.24 905.74
Tax On Dividend 0.00 0.00 123.71 160.43 153.89
Total Appropriations 1,383.14 -5,395.54 3,398.44 4,541.08 4,480.72
OTHER INFORMATION

EARNINGS PER SHARE

Basic EPS (Rs.) 6.00 -23.89 16.00 107.00 109.00

Diluted EPS (Rs.) 6.00 -23.89 16.00 107.00 109.00
DIVIDEND PERCENTAGE

Equity Dividend Rate (%) 60.00 0.00 160.00 215.00 215.00

 5.8 BALANCE SHEET

Balance Sheet of
------------------- in Rs. Cr. -------------------
Bank Of Baroda

Mar 17 Mar-16 Mar-15 Mar-14 Mar-13

12 months 12 months 12 months 12 months 12 months
EQUITIES AND
LIABILITIES
SHAREHOLDER'S
FUNDS
Equity Share
462.09 462.09 443.56 430.68 422.52
Capital

Total Share
462.09 462.09 443.56 430.68 422.52
Capital

Reserves and
39,841.16 39,736.89 39,391.79 35,555.00 31,546.92
Surplus

Total Reserves and

39,841.16 39,736.89 39,391.79 35,555.00 31,546.92
Surplus

Total
ShareHolders 40,303.25 40,198.99 39,835.35 35,985.68 31,969.44
Funds
Deposits 601,675.17 574,037.87 617,599.52 568894.39 473,883.34
Borrowings 30,611.44 33,471.70 35,264.28 36,812.97 26,579.28

Other Liabilities
22,285.56 23,667.92 22,329.40 17,811.50 14,703.38
and Provisions
Total Capital and
694,875.42 671,376.48 714,988.55 659,504.53 547,135.44
Liabilities

ASSETS

Cash and Balances

with Reserve Bank 22,780.21 21,672.42 22,488.60 18,629.09 13,452.08
of India

Balances with
Banks Money at
127689.70 112,227.93 125,864.55 112,248.82 71,946.83
Call and Short
Notice

Investments 129,630.54 120,450.52 122,319.72 116,112.66 121,393.70

Advances 383,259.22 383,770.18 428,065.14 397,005.81 328,185.76
Fixed Assets 5,758.37 6,253.78 2,874.85 2,734.12 2,453.12

Other Assets 25,757.37 27,001.65 13,375.69 12,774.03 9,703.93

Total Assets 694,875.41 671,376.48 714,988.55 659,504.53 547,135.44

OTHER ADDITIONAL INFORMATION

Number of
5,481.00 5,436.00 5,294.00 4,934.00 4,336.00
Branches

Number of
52,420.00 52,021.00 49,378.00 46,001.00 43,108.00
Employees

Capital Adequacy
13 13 13 12 13
Ratios (%)

KEY PERFORMANCE INDICATORS

Tier 1 (%) 11 11 10 9 10
Tier 2 (%) 2 2 3 3 3
ASSETS QUALITY
Gross NPA 42,719.00 40,521.04 16,261.44 11,875.90 7,982.58

Gross NPA (%) 10 10 4 3 2

Net NPA 18,080.00 19,046.46 8,069.49 6,034.76 4,192.03
Net NPA (%) 5 5 2 2 1

Net NPA To
5 5 2 2 1
Advances (%)

CONTINGENT
LIABILITIES,
COMMITMENTS
Bills for Collection 37,599.42 32,343.74 57,615.61 51,834.11 25,952.24

Contingent
290,118.38 261,320.91 283,992.78 291,771.69 230,581.15
Liabilities

5.9 COMPUTATION OF RATIOS

 Market Capitalization = Rs. 38,757.80 cr (As on 1/12/17)

 P/E Ratio = 40.13 times
 Book Value = Rs. 174.44 per share
 Face Value = Rs. 2.00 per share
 Market Value = Rs. 167.60 per share (As on 1/12/17)
 Name of ratio Formula Mar’17 Mar’16 Mar’15 Mar’14 Mar’13

Current Ratio Current assets r 0.04 0.05 0.02 0.02 0.02

Current liabilities
Quick Ratio Quick Assets you 19.38 18.27 20.78 24.05 23.90
Quick Liabilities
Proprietary Ratio (%) Proprietor’s fund x 100a 5.8 5.99 5.57 5.46 5.84
Total assets
Operating Profit Ratio -12.73 -23.59 -2.33 0.20 2.41
Operating Profit x 100
(%) Net Sales
Net Profit Ratio (%) Net Profit x 100 3.27 -12.24 7.91 11.66 12.73
Net Sales
Total Debt-Equity Total Debt a 15.69 15.11 16.39 16.83 15.65
Equity
Ratio
Dividend Per Share Total Dividend you 1.20 0.00 3.20 21.50 21.50
No. of equity shares
Earnings Per Share NPAT – PD you 6.00 -23.89 15.83 107.38 108.84
No. of Equity Shares
CAR (%) Tier1+Tier2 a x100 13.17 13.17 12.60 12.28 13.30
Risk Weighted Assets
Net Interest Margin Net Interest Income a 1.94 1.89 1.84 1.81 2.06
Interest Earning Assets
Return on Equity (%) Net Income a x 100 3.43 0.00 8.53 12.61 14.01
Shareholder’s Fund
Cash Deposit Ratio Total Loans you x 100 3.78 3.71 3.47 3.08 4.09
Total Deposits
COMMENTS

 Current ratio has been same from 2015 to 2013. It was highest in the
year 2016 and lowest in the year 2013. It has decreased in 2017 as
compared to 2016.
 Quick ratio has decreased by 18.91% from 2013 to 2017. However, it has
increased by 6.08% in 2017 as compared to 2016. It was highest in the
year 2013 and lowest in the year 2016.
 Proprietary ratio has been on the similar lines in the last five years.
It was lowest in the year 2014 and highest in the year 2016. It has
decreased in 2017 as compared to 2016.
 Operating profit ratio is higher the better. It was negative in the last
three years which indicates unfavorable conditions. It was highest in 2013.
It has lowest in 2016.
 Net profit ratio was highest in 2013 and lowest in 2016. It was negative
in 2016. It has shown drastic changes in the last 5 years.
 Total debt equity ratio has changed minutely in the year 2017 as
compared to 2013. It was highest in the year 2014 and lowest in 2016. It
has not shown vast changes throughout the last five years.
 Dividend per share was same for 2013 and 2014. The company did not
pay any dividend in the year 2016. Dividend has decreased drastically in
2017 as compared to 2013. This is not favorable for the investors.
 Earning per share was negative in 2016. It has decreased by 94% from
2013 to 2017. It shows a decline in the earnings of the company.
 CAR of the bank has been same in 2017 and 2016. It has decreased
slightly in 2017 as compared to 2013. It has been on the similar lines from
2013 to 2017. Decrease in CAR is discouraging.
 Net Interest Margin had decreased in 2014 and after that, it has been
increasing until 2017 therefore, showing an upward trend. It was highest
in 2013.
 Return on Equity has decreased by 75.52% from 2013 to 2017. It was
highest in 2013. Thereon it decreased steadily for next 3 years and became
zero in 2016 due to loss.
 Cash Deposit Ratio decreased in 2014 and thereafter, showed continuous
growth from 2014 until 2017. It was highest in 2013. However, there is
only slight difference in past 5 years.
 CHAPTER 6
DATA ANALYSIS AND INTERPRETATION

Analysis is an answer to the question “what message is conveyed by each group

of data”. Data, which are otherwise raw facts and are unable to give a meaningful
information. The raw data become information only when they are analyzed and
put in a meaningful form.

An analysis is made on the responses received from 100 sample respondents. The
objective of the report is to undertake a comparative study between HDFC Bank
and Bank of Baroda. To know the preferences and views and opinions of
customers, a questionnaire was sent to customers as per the convenient sampling.
The questionnaire contains various questions on the individual’s banking
experience, based on these experience an analysis is made to find out a pattern in
their banking operations. Interpretations are made on a rational basis, these
interpretations may be correct or may not be correct but care is taken to draw a
valid and approvable interpretation. Analysis is made from the information
collected through questionnaires and financial statements of both the banks.
6.1 PRIMARY DATA ANALYSIS

Q1) Gender

Particulars No. of respondents

Male 65
Female 35
Total 100

Gender

Male
35% Female

65%

INTERPRETATION
According to the survey, male ratio is more than that of female ratio. 35% are
female and 65% are male respondents.
Q2) Age of respondents

Particulars No. of respondents

18-30 61
30-50 30
Above 50 9
Total 100

Age

9% 18-30
30-50
30% Above 50

61%

INTERPRETATION
The chart shows that most (61%) of respondents are between the age of 18 to 30
years, 30% are between 30 to 50 years followed by 9% are above 50.
Q3) Occupation

Particulars No. of respondents

Student 31
Businessmen 28
Servicemen 30
Government Employee 5
Housewife 6
Total 100

Occupation

6% 5% Student
Businessman
31%
Serviceman
Govt. Employee
30% Housewife

28%

INTERPRETATION
According to this survey the occupation of customers out of 100, 30% are
serviceman, 28% businessman, 6% government employees, 5% are housewives
while remaining 31% are students.

Q4) Which sector bank do you prefer?

Particulars No. of respondents

Public 32
Private 26
Both 42
Total 100

Sector

Public
32% Private
42% Both

26%

INTERPRETATION
According to the survey 42% prefer private banks which indicates that they are
attracted towards more returns and 32% prefer public banks which provides safety
to the money of the public whereas there are 26% respondents who prefer both
public and private sector banks.
Q5) Your selection criteria for opening a bank account:

Particulars No. of respondents

Services Offered 66
Charges 46
Location Benefit 54
Facilities Provided 61
Other 11

Selection Criteria (%)

Sevices 66

Charges 46

Location 54

Facilities 61

Other 11

0 10 20 30 40 50 60 70

Selection Criteria (%)

INTERPRETATION
According this to survey when the respondents were asked about the most
important reason for choosing a particular bank, 46% check the bank charges,
54% look for location benefit, 61% consider the facilities provided by banks, 66%
determine the service quality while 11% consider also some other factors like
interest rates, knowledge and efficiency of staff, reputation or goodwill of the
bank in the market, etc.

Q6) Which type of account you have?

Particulars No. of respondents

Savings 86
Current 32
Fixed Deposit 41
Salary 33

Type of account (%)

Saving 86

Current 32

Fixed Deposit 41

Salary 33

0 10 20 30 40 50 60 70 80 90 100

Type of account (%)

INTERPRETATION
This chart shows that majority of the respondents have a savings account with
their banks i.e. 82%, while 41% have fixed deposits account. Percentage of
respondents having salary and current account is 33% and 32% respectively. This
shows that people of different occupations have different types of accounts in the
banks.
Q7) Which facilities are you availing at your bank?

Particulars No. of respondents

ATM/Debit card 88
Credit card 35
Insurance 15
Mobile Banking 64
Other 18

Facilities (%)
ATM/Debit card 88

Credit Card 35

Insurance 15

Mobile Banking 64

Other 18

0 10 20 30 40 50 60 70 80 90 100

Facilities (%)

INTERPRETATION
Maximum respondents i.e. 88% avail the ATM/Debit card facility at their bank.
More than half of the respondents i.e. 64% undertake mobile banking to ensure
ease in their banking operations. 35% have credit cards while only 15% use the
insurance facility provided by banks. 18% respondents also avail some other
facilities like demat account, investment advice, locker facility, etc.

Q8) Source of communication you rely on:

Particulars No. of respondents

Self Research 60
Broker 32
Market Research 37
Friends/Relatives 50
Other 5

Source of communication (%)

Self Research 60

Broker 32

Market research 37

Friends/Relatives 50

Others 5

0 10 20 30 40 50 60 70

Source of communication (%)

INTERPRETATION
According to the survey, majority of the respondents i.e. 60% rely on self research
for selection of bank. Half of the respondents consider the advice of friends and
relatives. Around 37% undertake market research to get proper knowledge about
different options available in the market. While 32% consult a broker for opening
a bank account.

Q9) Which bank do you prefer?

Particulars No. of respondents

HDFC Bank 65
Bank of Baroda 35
Total 100

Bank Preference

HDFC Bank
35%
Bank of Baroda

65%

INTERPRETATION
From the above pie chart it is clear that greater number of respondents prefer
Bank of Baroda over HDFC Bank i.e. 35% prefer BOB while 65% prefer HDFC
Bank on the basis of interest rates, schemes, facilities, services and other selection
criterions considered by the respondents.
Q10) Which bank is more secure ?

Particulars No. of respondents

HDFC Bank 32
Bank of Baroda 68
Total 100

Secured Bank

32% HDFC Bank

Bank of Baroda

68%

INTERPRETATION
The result of the survey shows that 68% of respondents consider BOB more
secured as compared to HDFC Bank. This is mainly because BOB is a public
sector bank so people trust BOB more than HDFC Bank. Being a public sector
bank BOB provides greater safety and security to the money of the public.
Q11) Which bank gives more returns?

Particulars No. of respondents

HDFC Bank 90
Bank of Baroda 10
Total 100

Returns

10%
HDFC Bank
Bank of Baroda

90%

INTERPRETATION
From the chart it is evident that almost all of the respondents i.e. 90% believe that
HDFC Bank provides more returns as compared to BOB. This is mainly because
HDFC is a private sector bank. It charges high rates so as to provide high returns.
Q12) Which bank would you prefer for loan?

Particulars No. of respondents

HDFC Bank 33
Bank of Baroda 67
Total 100

Loan Preference

33% HDFC Bank

Bank of Baroda

67%

INTERPRETATION
According to the chart larger portion i.e. 67% of the respondents prefer BOB for
personal loans and 33% prefer HDFC Bank. This might be because difference in
the interest rates, time period, legal formalities, EMI’S, processing charges, etc.
Q13) Rate HDFC Bank

HDFC Rating

HDFC Rating

28.00%
26.00%

17.00%

10.00%
7.00%
6.00%
3.00%
1.00% 1.00% 1.00%
1 2 3 4 5 6 7 8 9 10

INTERPRETATION
The above bar graph shows that maximum respondents have rated HDFC Bank as
8 on the scale of 10, followed by 9 by 26% of respondents. Maximum rating was
10 by 10% respondents and minimum 1 by 1% respondents.
Q14) Rate Bank of Baroda

Bank of Baroda Rating

Bank of Baroda Rating

27.00%

20.00%

16.00%
13.00%
11.00%

5.00%
4.00%
3.00%
1.00%
0.00%
1 2 3 4 5 6 7 8 9 10

INTERPRETATION
The above bar graph shows that maximum respondents i.e. 27% have rated HDFC
Bank as 7 on the scale of 10, followed by 6 given by 20% and 8 by 16% of
respondents. Maximum rating was 10 by 11% respondents and minimum 2 by 4%
respondents.
Q15) Your suggestions for better banking facilities and services

Some of the genuine suggestions received include :

 Better communication via digital channel and more provisions for

security's
 24/7 money availability in ATM
 Employees/staff should not harass customers
 Better profitable facilities for customers
 Transparency of services with the customers
 Bank should be customer centric
 Public sector bank has a huge scope for improvement in all parameters
 Improve the efficiency of employees

6.2 SECONDARY DATA ANALYSIS

1) TREND ANALYSIS
 HDFC Bank
INTERPRETATION
From the above chart, it is evident that there has been consistent increase in the
share price of HDFC Bank in last 1 year. It has shown 54.15% increase from
Nov’16 to Nov’ 17. It has undergone minimum fluctuations in the past 12 months
on monthly basis. Trading volume was maximum in Feb’17 in last 1 year. It is
favourable for long-term investors as it provides good returns in the long period.

 Bank of Baroda

INTERPRETATION
The above chart shows that there has been high fluctuations in the share price of
Bank of Baroda in last 1 year. It touched its highest point in Apr’17 and thereafter
it declined until Aug’17. It remained constant for a month and then again showed
an upward trend. Its trading volume has been on the similar lines throughout the
year but was maximum in Nov’17. It is favourable for short-term investors
because of its high volatility.
 2) FUNDAMENTAL ANALYSIS

Name of ratio Formula HDFC Bank Mar’17 Bank of Baroda Mar’17

Current Ratio Current assets r 0.06 0.04

Current liabilities
Quick Ratio Quick Assets you 11.19 19.38
Quick Liabilities
Proprietary Ratio (%) Proprietor’s fund x 100a 10.36 5.8
Total assets
Operating Profit Ratio 3.25 -12.73
Operating Profit x 100
(%) Net Sales
Net Profit Ratio (%) Net Profit x 100 20.99 3.27
Net Sales
Total Debt-Equity Ratio Total Debt a 8.02 15.69
Equity
Dividend Per Share Total Dividend you 11 1.20
No. of equity shares
Earnings Per Share NPAT – PD you 57.18 6.00
No. of Equity Shares
CAR (%) Tier1+Tier2 a x100 14.6 13.17
Risk Weighted Assets
Net Interest Margin Net Interest Income a 3.83 1.94
Interest Earning Assets
Return on Equity (%) Net Income a x 100 16.26 3.43
Shareholder’s Fund
Cash Deposit Ratio Total Loans you x 100 5.71 3.78
Total Deposits
INTERPRETATION
 Current ratio of HDFC Bank and Bank of Baroda is approximately same.
It indicates that both the banks have almost same solvency position.
 Quick ratio of Bank of Baroda is more than that of HDFC Bank. This
indicates that Bank of Baroda has more liquid assets as compared to
HDFC Bank.
 Proprietary ratio of HDFC Bank is almost twice of Bank of Baroda. This
shows that HDFC Bank uses its proprietors fund more efficiently. HDFC
Bank uses more amount of capitalization to support its business as
compared to Bank of Baroda.
 Operating profit ratio of Bank of Baroda is negative which indicates loss
in current financial year whereas, that of HDFC Bank is positive. This
states that HDFC Bank is more efficient in controlling its costs and
expenses as compared to Bank of Baroda.
 Net profit ratio is higher of HDFC Bank than that of Bank of Baroda.
This demonstrates that HDFC Bank is better in converting sales into actual
profit. This gives a more accurate view of how profitable a bank is.
 Total debt equity ratio is lower the better. HDFC Bank’s total debt-
equity ratio is lower as compared to Bank of Baroda, which indicates that
Bank of Baroda relies more on borrowed funds rather than equity funds.
 Dividend per share is higher of HDFC Bank i.e. it provides higher return
value to its shareholders as compared to Bank of Baroda. Higher dividend
attracts more number of investors.
 CAR should be 9% for both the banks according to Basel Norms. CAR of
both banks is well above the prescribed limit. There is only a slight
difference of approximately 1.43% between the CAR of HDFC Bank and
Bank of Baroda with HDFC Bank having the higher rate.
 Net Interest Margin of HDFC Bank is higher than that of Bank of
Baroda. This indicates that HDFC Bank’s investment decisions compared
to its debt situations are more optimal as compared to Bank of Baroda.
 Return on Equity is higher the better. HDFC Bank has higher return on
equity as compared to Bank of Baroda. This states that HDFC Bank is able
to generate higher profits from its shareholders investment as compared to
Bank of Baroda.
 Cash Deposit Ratio is higher of HDFC Bank than that of Bank of Baroda.
This indicates that HDFC Bank is comparatively more capable to finance
its loans from the received deposits as compared to Bank of Baroda.
 CHAPTER 7
FINDINGS AND CONCLUSIONS

7.1 FINDINGS
After analysis of the collected data, the major findings are listed below:

 Majority of people prefer both private sector as well as public sector banks
in order to seek advantage of services provided by both the banks.

 While selecting the bank, people often considers the services and facilities
offered, fees charged, location of the bank and also some other facilities
such as efficiency and knowledge of staff, interest rates and reputation of
the bank in the market.

 Type of account a person have with the bank largely depends on the
occupation of the person. Serviceman and government employee have
salary account whereas businessman have current account along with
savings and fixed deposit account.

 Apart from the basic facility of making deposits and taking loans,
customers also avails facilities like ATM or debit card, credit card,
insurance, mobile banking and also some other facilities like SMS, demat
account and investment advice. Out of the above facilities, ATM/debit
card is the most utilized facility.

 When a person select the bank for opening an account he either take
 consultancy from friends/relatives, broker, market research or conducts
own research in order to meet his requirements.

 More than half people prefer Bank of Baroda over HDFC Bank due its
low interest rates on loan, low bank charges and high security of money.
However, in case of interest received on deposits majority of people prefer
HDFC Bank as compared to Bank of Baroda.

 HDFC Bank has shown steady growth in its share price in past 1 year with
minimum fluctuations, whereas Bank of Baroda has shown slight growth
in its share price with high fluctuation throughout the year.

 Majority of the financial ratios of HDFC Bank are better than that of Bank
of Baroda such as Net interest margin, current ratio, CAR, return on
equity, cash deposit ratio, etc.

7.2 CONCLUSION

Everyone wants a life in which all facilities are present, which are so costly that
they move towards various banks both private as well as public sector banks to
fulfil their requirements with the help of services and facilities offered by various
banks. Bank of Baroda is preferred by most of the people who are government
employee, student or housewife because of tax rebate, lack of much funds and
low rate of interest on loan. HDFC Bank is mainly choice of businessman and
serviceman because of easiness and low documentation, services and high rate of
interest on deposits.

After conducting market research for comparative study of people’s preference

between HDFC Bank and Bank of Baroda, we came to know about different
needs of customers, their valuable suggestions and responses to different
questions with respect to both the banks. With this information, we can conclude
that customer satisfaction level is high for HDFC Bank. Both the banks provides
good services and facilities to customers like ATM service, net banking and
location advantage. According to the survey conducted, it is concluded that
majority of people prefer HDFC Bank over Bank of Baroda. They also suggested
to update services, technology, follow ethical standards, provide proper training to
staff to enhance their knowledge and efficiency.

Trend analysis indicates that HDFC Bank has low volatility and Bank of Baroda
is highly volatile. Hence, it is concluded that HDFC Bank is better than Bank of
Baroda. It suggests that long term investors must invest their funds in HDFC
Bank as it shows steady growth over a long period of time whereas, short-term
investors must invest in Bank of Baroda as it shows high fluctuations in its share
price within few months.

As per the analysis of the financial ratios, it is concluded that HDFC Bank
performs better than Bank of Baroda as majority of financial ratios of HDFC
Bank are favorable or higher than that of Bank of Baroda. Financial ratios such as
CAR, net interest margin, cash deposit ratio, return on equity, etc. demonstrates
that HDFC Bank is more efficient as compared to Bank of Baroda.

Thus, the study concludes that HDFC Bank performs better on majority of the
parameters studied in the project as compared to Bank of Baroda.

CHAPTER 8
 SUGGESTIONS AND RECOMMENDATIONS

 Bank should be customer centric.

 HDFC Bank should lower down the minimum balance required in the
savings account.
 Public sector bank has a huge scope for improvement in all parameters.
 Staff should be more co-operative to the customers.
 Banks should focus on more updated system and consumer friendly
operations of net banking.
 Customers are not fully aware about the services offered and the charges
they have to pay. Therefore, banks should try to give some more
information to its existing customers.
 24/7 availability of money in ATM.
 Transparency of services with the customers.
 Improve the efficiency of employees.

BIBLIOGRAPHY
Different reference books, journals, articles, websites were used in order to collect
information. Some of the books include:
 Buser S, Chen a and Kane E (1981) “Federal deposit insurance,
regulatory and optimal bank capital”
 Narayana & Brahmanandam (1990) in their study, “A Study of
Customer Services in Commercial Banks”
 Nalini (2006) in her study, “A Service Quality Model for Customers in
Public Sector Banks”
 Jaiswal K.S and Neetu Singh (2007) in their study, “Retail Banking:
Indian Scenario”
 SL Gupta, Arun Mittal, “Comparative study of promotional studies
adopted by public and private sector banks in India” published in Asia-
pacific business review, July-September (2008)

Following are the websites used for the purpose of collection of data :
https://www.bankofbaroda.co.in/
https://en.wikipedia.org/wiki/Bank_of_Baroda
https://www.hdfcbank.com/
https://en.wikipedia.org/wiki/HDFC_Bank
http://www.moneycontrol.com/
 ANNEXURE
QUESTIONNAIRE
Comparative study between HDFC Bank and Bank of Baroda

Q1. Name *
Q2. Gender *
a. Male
b. Female
Q3. Age *
a. 18-30
b. 30-50
c. Above 50
Q4. Occupation *
a. Student
b. Businessman
c. Serviceman
d. Government employee
e. Housewife
Q5. Which sector bank do you prefer ? *
a. Private
b. Public
c. Other
Q6. Your selection criteria for opening a bank account? *
a. Services offered
b. Charges
c. Location benefit
d. Facilities provided
e. Other
Q7. Which type of account do you have? *
a. Savings
b. Current
c. Fixed deposit
d. Salary
Q8. Which facilities are you availing at your bank ? *
a. ATM/Debit card
b. Credit card
c. Insurance
d. Mobile banking
e. Other
Q9. Source of communication you rely on: *
a. Self research
b. Broker
c. Market research
d. Friends/relatives
e. Others
Q10. Which bank do you prefer? *
a. HDFC Bank
b. Bank of Baroda
Q11. Which bank is more secure? *
a. HDFC Bank
b. Bank of Baroda
Q12. Which bank gives more returns? *
a. HDFC Bank
b. Bank of Baroda
Q13. Which bank would you prefer for a loan? *
a. HDFC Bank
b. Bank of Baroda
Q14. Rate HDFC Bank on scale of 1 to 10 *
Q15. Rate Bank of Baroda on scale of 1 to 10 *
Q16. Your suggestions for better banking facilities and services.