A Comparative Study of the Growth in Punjab National Bank and HDFC BankAuthor: Priyanka Agrawala, Anil Kumar Yadav*b aDept. of Business Administration, DDU Gorakhpur University, Gorakhpur. bDept. of Commerce, DDU Gorakhpur University, Gorakhpur. 9935367733; Email-anilkyadava@gmail.com.
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:Growth, Net Assets, Net Profit, Future Value, Present Value,
Compound Annual Growth Rate (CAGR), Return on Assets (ROA), Non
Performing Assets (NPA).
PAPER/ARTICLE INFO
RECEIVED ON: 21/08/2015
ACCEPTED ON: 30/10/2015
Priyanka Agrawala, Anil Kumar Yadav*b
aDept. of Business Administration, DDU
DOI:
International Journal of Trade & Commerce (Vol: 4 Issue:2)
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