A Comparative Study of the Growth in Punjab National Bank and HDFC Bank

Author:Priyanka Agrawala, Anil Kumar Yadav*b

Abstract:
Banking sector has a very important place in our Indian economy. After nationalisation, the Indian banking system has considerably developed with a large network of branches and wide range of financial instruments. The banking industry is growing today with a rapid speed and competition having more than 11,75,150 employees and 1,09,811 branches across India, as well as, 171 branches in abroad; managing deposits of Rs. 67504.54 billion and bank credit of Rs. 52604.59 billion. The net profit of banks operating in India was Rs. 1027.51 billion against Rs. 9148.60 billion turnover during 2012-13. The amount of the profit indicates the efficiency of the organization. As the larger the profit higher the growth rate. The profitability depends on the effective utilization of funds which ensure maximisation of profit for growth. The banking sector is very important for Indian economy, therefore effective working and growth of banks are crucial for its economic health. The amount of the profit is a prominent indicator that indicates efficiency in the banks as in any other organization. In banks profitability depends more on the effective utilization of funds to procure maximum profit and growth, which is the focal area of this paper. As Indian banking sector is mainly classified into public sector and private sector banks, so as this study is an effort to review the growth rate of both types of banks, ie., a comparative study of growth in the HDFC Bank (from private sector) and in PNB (from public sector). The study is performed by analysis of growth in both of the banks for a period of 10 years, from 2004 to 2014. The main parameters used for analysis of growth in banks are Net Profit Growth, Net Assets Growth, Return on Assets (ROA) and Non Performing Assets (NPA).

Keywords:Key Words: Growth, Net Assets, Net Profit, Future Value, Present Value, Compound Annual Growth Rate (CAGR), Return on Assets (ROA), Non Performing Assets (NPA).

DOI:

International Journal of Trade & Commerce (Vol: 4 Issue:2)