2. Indroduction
HDFC bank ltd. based in Mumbai, Maharastra
incoporated in august 1994 by Housing
Development Finance Corporation Limited, which
is India’s largest housing finance company.
India’s 3rd largest bank by total assets.
1st bank by market capitalization.
5. Earning per share
0
10
20
30
40
50
60
2009 2010 2011 2012
HDFC
ICICI
It shows the amount of
earning in accordance to
the each share of the
company.
For an investor, ICICI
bank will be a better
option, as its EPS is
considerably higher
7. Asset turnover ratio
0
0.02
0.04
0.06
0.08
0.1
0.12
0.14
0.16
2009 2010 2011 2012
HDFC
ICICI
Amount of sales/revenue
generated for every single
rupee worth of assets.
It indicates the effective
use of assets to generate
revenue/sales.
Higher the ratio, higher the
efficiency.
Here, HDFC is more
efficient.
8. Return on Networth
0
5
10
15
20
2009 2010 2011 2012
HDFC
ICICI
It shows the return
on the total networth
of the company.
Higher the better.
HDFC bank’s has a
higher return.
9. Price to Earnings ratio
0
5
10
15
20
25
2012
HDFC
ICICI
Industry
avg.
It is the valuation ratio
of company’s current
share price to its per
share earnings.
Higher, the better.
It tells the growth
prospect of a
company.
10. Debt to Equity Ratio
0
2
4
6
8
10
2009 2010 2011 2012
HDFC
ICICI
It tells the relationship
between debt and equity
capital.
Higher the value, riskier
the company to invest in.
Here, HDFC’s value is way
higher than ICICI bank, i.e
ICICI is using less debt
capital structure as to
HDFC.
11. Financial charges coverage ratio
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
2009 2010 2011 2012
HDFC
ICICI
This ratio shows the
company’s ability to pay its
interest charges.
If a company’s ratio is
lower than 1, then it is not
generating enough
revenues to meet out its
interest obligation.
Here, HDFC is better than
ICICI in comparison but
still is in the danger zone.
12. Quick Ratio
0
5
10
15
20
2009 2010 2011 2012
HDFC
ICICI
It tells about the company’s
ability to pay its current/short-
term liabilities quickly.
Anything higher than 1, tells
the company is competent
enough to meet its current
liability needs.
Here, both the companies are
having a healthy ratio, but
ICICI is having much better in
compared to HDFC.
13. Conclusion
Despite being in the 3rd in the list, HDFC is having a
great potential to grow and diversify in areas
untapped in the market by reaching to the rural areas
and catering them and increasing the base of its
customers and growing along. Being a bank with
high CSR activities, it has gained itself a good name
in the sector and is thriving by giving back to the
society and also growing along by satisfying the
needs of its customers.