Description
A sound financial system is important for a healthy and vibrant economy. The banking sector constitutes a main element of financial service industry. The performance of an
economy to a large extent is dependent on the performance
of the banking sector. A healthy banking sector acts as a bedrock of social, economic, and industrial growth of a nation.
Banking in India was defined under Section 5(A) as “any company which transacts banking business” and the purpose of
banking business defined under Section 5(B), “accepting deposits of money from public for the purpose of lending or investing, repayable on demand through cheque/draft or otherwise” (Chaudhary 2011). The banking system in India should
not only be hassle free but it should be able to meet the new
challenges posed by technology and any other internal or
external factor. The Indian banking system passed through a
revolution in the sixties which unleashed a chain reaction of
rapid chances. Commercial banking was converted into mass
banking from class banking, (Kumar 2013). Till the year 1980
approximately 80% of the banking segment in India was under government ownership. On the suggestion of Narasimha
committee the Banking Regulation Act was amended in 1993
and thus the gates for new private sector banks were opened.
Private sector banks came into existence to supplement the
performance of public sector bank and serve the needs of the
economy better. HDFC and ICICI are the two major private
sector banks flourishing in India.
Volume : 3 | Issue : 9 | September 2014 ISSN - 2250-1991
19 | PARIPEX - INDIAN JOURNAL OF RESEARCH
Research Paper
Analysis of Pro?tability and Ef?ciency : A
Comparison of HDFC and ICICI
Commerce
Neha Rani M.Phil. Student, MDU Rohtak
Dr. Dinesh Gaba Associate Professor, Dept. of Commerce Govt. College, Bhiwani
KEYWORDS
HDFC Bank, ICICI Bank, Net pro?t, Interest Income and Interest Expenses.
A
B
S
T
R
A
C
T
Banking sector has been working in India from 18th century, but at that time only a few banks were providing their services.
After Narasimha Committee, 1991 competition in banking sector has increased due to entry of many private and foreign
banks. So to remain in competition the banks should increase their ef?ciency so that they can provide better services to the
customers, as the role of banking sector has changed form money lending to more socially relevant services. As banking
sector plays a crucial role in the development of an economy, these should be more organized and developed. The bank
acts as a bridge between those having ?nance and those in need of ?nance and mobilizes the nation’s saving into pro?table
investments. Many private sector banks like HDFC, ICICI, Axis Bank, Canara Bank, Oriental Bank of Commerce etc. are
providing their services in an ef?cient manner. So this report concentrates on the ef?ciency of two private banks HDFC
and ICICI. The performance of both banks is compared to ?nd out which one is more ef?cient. The analysis about the
performance is done on the basis of Total Income, Total Expenses, Net Pro?t, Operating Pro?t etc. and on the basis of this
analysis it is found that the performance and ef?ciency of HDFC bank is better than ICICI.
INTRODUCTION
A sound ?nancial system is important for a healthy and vi-
brant economy. The banking sector constitutes a main el-
ement of ?nancial service industry. The performance of an
economy to a large extent is dependent on the performance
of the banking sector. A healthy banking sector acts as a bed-
rock of social, economic, and industrial growth of a nation.
Banking in India was de?ned under Section 5(A) as “any com-
pany which transacts banking business” and the purpose of
banking business de?ned under Section 5(B), “accepting de-
posits of money from public for the purpose of lending or in-
vesting, repayable on demand through cheque/draft or other-
wise” (Chaudhary 2011). The banking system in India should
not only be hassle free but it should be able to meet the new
challenges posed by technology and any other internal or
external factor. The Indian banking system passed through a
revolution in the sixties which unleashed a chain reaction of
rapid chances. Commercial banking was converted into mass
banking from class banking, (Kumar 2013). Till the year 1980
approximately 80% of the banking segment in India was un-
der government ownership. On the suggestion of Narasimha
committee the Banking Regulation Act was amended in 1993
and thus the gates for new private sector banks were opened.
Private sector banks came into existence to supplement the
performance of public sector bank and serve the needs of the
economy better. HDFC and ICICI are the two major private
sector banks ?ourishing in India. ICICI bank has it’s headquar-
ter at Mumbai and was incorporated in 1954. It is the sec-
ond largest bank by assets in India. It provides ?nancial service
to corporate and retail customers in the area of Investment
Banking, Life and non – life insurance, venture capital and as-
set management. HDFC bank has its headquarters at Mumbai
and was incorporated in 1994. It is the ?fth largest bank in
India by assets. Its main objective is to provide loan for hous-
ing development. Increased competition, new technology and
thereby declining processing cost, the erosion of product and
product boundaries and less restrictive governmental regula-
tions have played a major role for the private banks to com-
pete with each other.
REVIEW OF LITERATURE
1. Vinod.R.R (2013) reported that “only 25% old private sec-
tor banks taken are ef?cient analyzed by data envelopment
analysis. The ef?ciency of least ef?cient banks can be im-
proved by giving due consideration by top management.”
2. Sumeet Gupta et.al (2008) found that “private sector
banks are trying to improve their position by different
method like mergers and acquisition .Transparency and
good governance would work as principal guiding force in
present.
3. C.S. Balasubramaniam (2010) reported that “private sector
banks like ICICI and HDFC are well-placed in complying Ba-
sel III norms. Indian banks performance is good as re?ected
by ROE, ROA but NPA is also increasing which can be re-
duced by good credit appraisal procedure.”
4. Ashwini kumar Mishra et.al (2013) concluded that “private
sector banks are at the top of list with their performance
in terms of soundness being best and private sector banks
will head towards convergence faster than public sector
banks.”
5. Avneet Kaur (2012) reported in her article that “to main-
tain a study growth rate deposits bank should come for-
ward to offer some subsidiary services. The banks should
take efforts to reduce the operating expenses by means of
improving the ef?ciency of the non-viable branches by uti-
lizing some expert services,”
6. Chitra Madaan found that “performance and compensa-
tion have a strong relation in private sector banks and for-
eign banks and job is less challenging and secure in public
sector banks other than two banks.”
7. Gupta et.al (2008) revealed that “ef?ciency increase in pri-
vate sector banks has come from small banks and increase
in capital adequacy ratio results in higher productivity
which stems out of higher pro?tability of banks which in-
crease soundness.”
8. Sunil Kumar (2009) found that “the analysis of correlation
between ef?ciency, effectiveness and performance meas-
ures indicate that a positive and strong correlation exist
between effectiveness and performance measures. This
suggests that banks can improve their performance by
concentrating more on their income generation capability.”
OBJECTIVES OF THE STUDY
1) To study the Income and Expenditure pattern of ICICI bank
and HDFC bank in India
2) To analyze the pro?tability performance of ICICI and HDFC
bank on the basis of net pro?t.
Volume : 3 | Issue : 9 | September 2014 ISSN - 2250-1991
20 | PARIPEX - INDIAN JOURNAL OF RESEARCH
RESEARCH METHODOLOGY OF THE STUDY
The study is based on the secondary data. The data required
is collected from the annual report of HDFC bank and ICICI
bank, publications and websites and report of trend and pro-
gress in banking in India.
PERIOD OF THE STUDY
This study covers a period of seven years from 2006-07 to
2012-13
ANALYSIS AND INTERPRETATION
TABLE 1
COMPOSITION OF TOTAL INCOME OF HDFC AND ICICI FROM (2006-07)
(AMOUNT IN CRORES)
HDFC ICICI
YEAR INTEREST INCOME OTHER INCOME
TOTAL
INCOME
INTEREST INCOME OTHER INCOME TOTAL INCOME
2006-07 7,055.35(80.7) 1,679.21(19.3) 8,734.56(51) 2,199.5(76.04) 692.8(24) 2,892.3(54))
2007-08 10,530.43(80.8) 2,495.94(19.2) 13,026.37(49) 3,070.88(77.7) 880.11(22.3) 3,950.99(36.6)
2008-09 16,584.01(81.7) 3,700.65(18.3) 20,284.66(55.7) 3,100.93(80.3) 760.3(19.7) 3,861.23(-2.27)
2009-10 16,467.92(81.7) 4,573.63(18.3) 20,168.57(-0.57) 2,570.7(77.5) 747.8(22.5) 3,318.5(-14.05)
2010-11 20,380.77(80.4) 4,945.23(19.6) 25,326(25.6) 2,597.4(79.6) 664.8(20.4) 3,262.2(-1.7)
2011-12 27,874.19(82.8) 5,783.62(17.2) 33,657.81(32.8) 3,354.2(81.7) 750.2(18.3) 4,104.4(25.8)
2012-13 35,064.87(83.6) 6,852.62(16.4) 41,917.49(24.5) 4,007.5(82.8) 834.6(17.2) 4,842.1(17.9)
Total income of HDFC was 8734.56 crores in 2007 which has increased to 41917.49 crores. Total average growth of total income
in study period is 34 percent whereas total income of ICICI was 2892.3 crore which has increased to 4842.1 crore. So average
growth rate of total income in study period is 16.6 percent. % of other income out of total income is continuously decreasing in
case of both banks, so there is more increase in compound growth of HDFC.
TABLE 2
COMPOSITION OF TOTAL EXPENSES OF HDFC AND ICICI FROM (2006-13)
(AMOUNT IN CRORES)
HDFC ICICI
YEAR INTEREST
EXPENSES
OPERATING
EXPENSES
OTHER
EXPENSES
TOTAL
EXPENSES
INTEREST
EXPENSES
OPERATING
EXPENSES
OTHER
EXPENSES
TOTAL
EXPENSES
2006-
07
3179.45(37.3) 2975.08(34.8) 2379.86(27.9) 8534.39(58) 1635.8(63.37) 497.9(19.28) 447.6(17.34) 2581.3(59)
2007-
08
4887.12(37.6) 4311.03(33.2) 3785.63(29.2) 12983.78(52) 2384.4(66.6) 642.9(17.95) 552.8(15.44) 3580.1(38.7)
2008-
09
8911.1(44.2) 5950.54(29.5) 5301.87(26.3) 20163.51(55.2) 2272.6(65.04) 630.6(18.04) 590.0(16.9) 3493.8(-2.41)
2009-
10
7786.3(37.8) 6475.71(31.5) 6321.24(30.7) 20583.25(2.1) 1759.3(60.33)
559.3(19.2)
597.4(20.5) 2916(-16.5)
2010-
11
9385.08(39.5) 7780.02(32.7) 6576.74(27.7) 23741.84(15.3) 1695.7(61.72) 638.1(23.22) 413.3(15.1) 2747.1(-5.7)
2011-
12
14989.58(49.4) 9274.64(30.5) 6100.96(21.1) 30365.18(27.9) 2280.8(65.86) 769.8(22.22) 412.3(11.9) 3462.9(26.05)
2012-
13
19253.75(52.2) 11236.11(30.5) 6378.36(17.3) 36868.22(21) 2620.9(65.36) 901.3(22.47) 487.4(12.15) 4009.6(15.8)
The average growth rate in total expenditure is 25.2% from 2006 to 2013 in case of HDFC whereas in case of ICICI average annual
growth in expenditure is 16.42%.operating expenses of HDFC varied between 29.5 to 34.8% and in case of ICICI operating ex-
penses are varied between 17.95 to 23.22%., so on the basis of expenses ICICI is performing better.
TABLE 3
GROWTH RATE OF BOTH BANKS NET PROFIT FROM 2006-2013
(AMOUNT IN CRORES)
HDFC ICICI
YEAR AMOUNT GROWTH RATE AMOUNT GROWTH RATE
2006-07 1,141.45 31.1 311 22.5
2007-08 1,590.18 39.3 415.8 33.7
2008-09 2,244.93 41.2 375.8 -9.7
2009-10 2,948.70 31.34 402.5 7.1
2010-11 3,926.40 33.15 515.1 28
2011-12 5,167.07 31.6 646.5 25.5
2012-13 6,726.28 30.2 832.5 28.8
Volume : 3 | Issue : 9 | September 2014 ISSN - 2250-1991
21 | PARIPEX - INDIAN JOURNAL OF RESEARCH
REFERENCES
1. Vinod, R.R. (2013) . Ef?ciency of Old Private Sector Banks in India: a DEA approach “, International journal of management and social science research, vol.2, no.6. | 2.
Gupta, sumeet, & Verma, Renu. (2008). Comparative Analysis and Financial Performance of Private Sector Banks in India: Application of CAMEL model, Journal of global
economy, vol. 4, no.2. | 3. Balasubramanian, C.S. (2010). Non-performing assets and pro?tability of commercial banks in India: assessment and emerging issues. | 4. Mishra,
Ashwini, kumar, Gadhaia, Jigar, Prasah, kar, Bibha, Biawabas Patra & Anand, Shivi (2013) Are private sector banks more sound and ef?cient than public sector banks? As-
sessment based on CAMEL and DEA approaches. | 5. Kaur, Avneet. (Nov. 2012) An Empirical Study on the performance evaluation of public sector banks in India, vol.1, issue
11. | 6. Madaan, Chitra. Public, Private and Foreign banks: A Comparison. | 7. Gupta, Omprakash K., Doshit, Yogesh, & Chinubhai, Aneesh. (2008). Dynamics of Productive
Ef?ciency of Indian Banks, International Journal of Operations Research, 5(2). | 8. Kumar, Sunil. (2009). Measuring Ef?ciency, Effectiveness and Performance of Indian Public
Sector Bank, International Journal of Productive and Performance Management, vol59, no.1. |
As average growth rate in net pro?t of HDFC in study peri-
od is 34% and average growth of ICICI is 19.4.Pro?ts of both
banks are increasing but average growth of HDFC is greater
than ICICI.
FINDINGS OF THE STUDY
1) The average growth rate of total income is higher in HDFC
bank then that of ICICI bank. The average growth rate is
34% in HDFC and 16.6% in ICICI bank.
2) The average growth rate of total expenditure in HDFC
bank is 25.2% which is higher than the ICICI bank which
is 16.42%.
3) The average growth rate of net pro?t is higher in HDFC
bank than that of ICICI bank. The average growth rate of
net pro?t is 34% in HDFC bank and 19.4% in ICICI bank.
Hence it is concluded that the total performance and ef?cien-
cy of HDFC bank is better than that of ICICI bank.
doc_323921240.pdf
A sound financial system is important for a healthy and vibrant economy. The banking sector constitutes a main element of financial service industry. The performance of an
economy to a large extent is dependent on the performance
of the banking sector. A healthy banking sector acts as a bedrock of social, economic, and industrial growth of a nation.
Banking in India was defined under Section 5(A) as “any company which transacts banking business” and the purpose of
banking business defined under Section 5(B), “accepting deposits of money from public for the purpose of lending or investing, repayable on demand through cheque/draft or otherwise” (Chaudhary 2011). The banking system in India should
not only be hassle free but it should be able to meet the new
challenges posed by technology and any other internal or
external factor. The Indian banking system passed through a
revolution in the sixties which unleashed a chain reaction of
rapid chances. Commercial banking was converted into mass
banking from class banking, (Kumar 2013). Till the year 1980
approximately 80% of the banking segment in India was under government ownership. On the suggestion of Narasimha
committee the Banking Regulation Act was amended in 1993
and thus the gates for new private sector banks were opened.
Private sector banks came into existence to supplement the
performance of public sector bank and serve the needs of the
economy better. HDFC and ICICI are the two major private
sector banks flourishing in India.
Volume : 3 | Issue : 9 | September 2014 ISSN - 2250-1991
19 | PARIPEX - INDIAN JOURNAL OF RESEARCH
Research Paper
Analysis of Pro?tability and Ef?ciency : A
Comparison of HDFC and ICICI
Commerce
Neha Rani M.Phil. Student, MDU Rohtak
Dr. Dinesh Gaba Associate Professor, Dept. of Commerce Govt. College, Bhiwani
KEYWORDS
HDFC Bank, ICICI Bank, Net pro?t, Interest Income and Interest Expenses.
A
B
S
T
R
A
C
T
Banking sector has been working in India from 18th century, but at that time only a few banks were providing their services.
After Narasimha Committee, 1991 competition in banking sector has increased due to entry of many private and foreign
banks. So to remain in competition the banks should increase their ef?ciency so that they can provide better services to the
customers, as the role of banking sector has changed form money lending to more socially relevant services. As banking
sector plays a crucial role in the development of an economy, these should be more organized and developed. The bank
acts as a bridge between those having ?nance and those in need of ?nance and mobilizes the nation’s saving into pro?table
investments. Many private sector banks like HDFC, ICICI, Axis Bank, Canara Bank, Oriental Bank of Commerce etc. are
providing their services in an ef?cient manner. So this report concentrates on the ef?ciency of two private banks HDFC
and ICICI. The performance of both banks is compared to ?nd out which one is more ef?cient. The analysis about the
performance is done on the basis of Total Income, Total Expenses, Net Pro?t, Operating Pro?t etc. and on the basis of this
analysis it is found that the performance and ef?ciency of HDFC bank is better than ICICI.
INTRODUCTION
A sound ?nancial system is important for a healthy and vi-
brant economy. The banking sector constitutes a main el-
ement of ?nancial service industry. The performance of an
economy to a large extent is dependent on the performance
of the banking sector. A healthy banking sector acts as a bed-
rock of social, economic, and industrial growth of a nation.
Banking in India was de?ned under Section 5(A) as “any com-
pany which transacts banking business” and the purpose of
banking business de?ned under Section 5(B), “accepting de-
posits of money from public for the purpose of lending or in-
vesting, repayable on demand through cheque/draft or other-
wise” (Chaudhary 2011). The banking system in India should
not only be hassle free but it should be able to meet the new
challenges posed by technology and any other internal or
external factor. The Indian banking system passed through a
revolution in the sixties which unleashed a chain reaction of
rapid chances. Commercial banking was converted into mass
banking from class banking, (Kumar 2013). Till the year 1980
approximately 80% of the banking segment in India was un-
der government ownership. On the suggestion of Narasimha
committee the Banking Regulation Act was amended in 1993
and thus the gates for new private sector banks were opened.
Private sector banks came into existence to supplement the
performance of public sector bank and serve the needs of the
economy better. HDFC and ICICI are the two major private
sector banks ?ourishing in India. ICICI bank has it’s headquar-
ter at Mumbai and was incorporated in 1954. It is the sec-
ond largest bank by assets in India. It provides ?nancial service
to corporate and retail customers in the area of Investment
Banking, Life and non – life insurance, venture capital and as-
set management. HDFC bank has its headquarters at Mumbai
and was incorporated in 1994. It is the ?fth largest bank in
India by assets. Its main objective is to provide loan for hous-
ing development. Increased competition, new technology and
thereby declining processing cost, the erosion of product and
product boundaries and less restrictive governmental regula-
tions have played a major role for the private banks to com-
pete with each other.
REVIEW OF LITERATURE
1. Vinod.R.R (2013) reported that “only 25% old private sec-
tor banks taken are ef?cient analyzed by data envelopment
analysis. The ef?ciency of least ef?cient banks can be im-
proved by giving due consideration by top management.”
2. Sumeet Gupta et.al (2008) found that “private sector
banks are trying to improve their position by different
method like mergers and acquisition .Transparency and
good governance would work as principal guiding force in
present.
3. C.S. Balasubramaniam (2010) reported that “private sector
banks like ICICI and HDFC are well-placed in complying Ba-
sel III norms. Indian banks performance is good as re?ected
by ROE, ROA but NPA is also increasing which can be re-
duced by good credit appraisal procedure.”
4. Ashwini kumar Mishra et.al (2013) concluded that “private
sector banks are at the top of list with their performance
in terms of soundness being best and private sector banks
will head towards convergence faster than public sector
banks.”
5. Avneet Kaur (2012) reported in her article that “to main-
tain a study growth rate deposits bank should come for-
ward to offer some subsidiary services. The banks should
take efforts to reduce the operating expenses by means of
improving the ef?ciency of the non-viable branches by uti-
lizing some expert services,”
6. Chitra Madaan found that “performance and compensa-
tion have a strong relation in private sector banks and for-
eign banks and job is less challenging and secure in public
sector banks other than two banks.”
7. Gupta et.al (2008) revealed that “ef?ciency increase in pri-
vate sector banks has come from small banks and increase
in capital adequacy ratio results in higher productivity
which stems out of higher pro?tability of banks which in-
crease soundness.”
8. Sunil Kumar (2009) found that “the analysis of correlation
between ef?ciency, effectiveness and performance meas-
ures indicate that a positive and strong correlation exist
between effectiveness and performance measures. This
suggests that banks can improve their performance by
concentrating more on their income generation capability.”
OBJECTIVES OF THE STUDY
1) To study the Income and Expenditure pattern of ICICI bank
and HDFC bank in India
2) To analyze the pro?tability performance of ICICI and HDFC
bank on the basis of net pro?t.
Volume : 3 | Issue : 9 | September 2014 ISSN - 2250-1991
20 | PARIPEX - INDIAN JOURNAL OF RESEARCH
RESEARCH METHODOLOGY OF THE STUDY
The study is based on the secondary data. The data required
is collected from the annual report of HDFC bank and ICICI
bank, publications and websites and report of trend and pro-
gress in banking in India.
PERIOD OF THE STUDY
This study covers a period of seven years from 2006-07 to
2012-13
ANALYSIS AND INTERPRETATION
TABLE 1
COMPOSITION OF TOTAL INCOME OF HDFC AND ICICI FROM (2006-07)
(AMOUNT IN CRORES)
HDFC ICICI
YEAR INTEREST INCOME OTHER INCOME
TOTAL
INCOME
INTEREST INCOME OTHER INCOME TOTAL INCOME
2006-07 7,055.35(80.7) 1,679.21(19.3) 8,734.56(51) 2,199.5(76.04) 692.8(24) 2,892.3(54))
2007-08 10,530.43(80.8) 2,495.94(19.2) 13,026.37(49) 3,070.88(77.7) 880.11(22.3) 3,950.99(36.6)
2008-09 16,584.01(81.7) 3,700.65(18.3) 20,284.66(55.7) 3,100.93(80.3) 760.3(19.7) 3,861.23(-2.27)
2009-10 16,467.92(81.7) 4,573.63(18.3) 20,168.57(-0.57) 2,570.7(77.5) 747.8(22.5) 3,318.5(-14.05)
2010-11 20,380.77(80.4) 4,945.23(19.6) 25,326(25.6) 2,597.4(79.6) 664.8(20.4) 3,262.2(-1.7)
2011-12 27,874.19(82.8) 5,783.62(17.2) 33,657.81(32.8) 3,354.2(81.7) 750.2(18.3) 4,104.4(25.8)
2012-13 35,064.87(83.6) 6,852.62(16.4) 41,917.49(24.5) 4,007.5(82.8) 834.6(17.2) 4,842.1(17.9)
Total income of HDFC was 8734.56 crores in 2007 which has increased to 41917.49 crores. Total average growth of total income
in study period is 34 percent whereas total income of ICICI was 2892.3 crore which has increased to 4842.1 crore. So average
growth rate of total income in study period is 16.6 percent. % of other income out of total income is continuously decreasing in
case of both banks, so there is more increase in compound growth of HDFC.
TABLE 2
COMPOSITION OF TOTAL EXPENSES OF HDFC AND ICICI FROM (2006-13)
(AMOUNT IN CRORES)
HDFC ICICI
YEAR INTEREST
EXPENSES
OPERATING
EXPENSES
OTHER
EXPENSES
TOTAL
EXPENSES
INTEREST
EXPENSES
OPERATING
EXPENSES
OTHER
EXPENSES
TOTAL
EXPENSES
2006-
07
3179.45(37.3) 2975.08(34.8) 2379.86(27.9) 8534.39(58) 1635.8(63.37) 497.9(19.28) 447.6(17.34) 2581.3(59)
2007-
08
4887.12(37.6) 4311.03(33.2) 3785.63(29.2) 12983.78(52) 2384.4(66.6) 642.9(17.95) 552.8(15.44) 3580.1(38.7)
2008-
09
8911.1(44.2) 5950.54(29.5) 5301.87(26.3) 20163.51(55.2) 2272.6(65.04) 630.6(18.04) 590.0(16.9) 3493.8(-2.41)
2009-
10
7786.3(37.8) 6475.71(31.5) 6321.24(30.7) 20583.25(2.1) 1759.3(60.33)
559.3(19.2)
597.4(20.5) 2916(-16.5)
2010-
11
9385.08(39.5) 7780.02(32.7) 6576.74(27.7) 23741.84(15.3) 1695.7(61.72) 638.1(23.22) 413.3(15.1) 2747.1(-5.7)
2011-
12
14989.58(49.4) 9274.64(30.5) 6100.96(21.1) 30365.18(27.9) 2280.8(65.86) 769.8(22.22) 412.3(11.9) 3462.9(26.05)
2012-
13
19253.75(52.2) 11236.11(30.5) 6378.36(17.3) 36868.22(21) 2620.9(65.36) 901.3(22.47) 487.4(12.15) 4009.6(15.8)
The average growth rate in total expenditure is 25.2% from 2006 to 2013 in case of HDFC whereas in case of ICICI average annual
growth in expenditure is 16.42%.operating expenses of HDFC varied between 29.5 to 34.8% and in case of ICICI operating ex-
penses are varied between 17.95 to 23.22%., so on the basis of expenses ICICI is performing better.
TABLE 3
GROWTH RATE OF BOTH BANKS NET PROFIT FROM 2006-2013
(AMOUNT IN CRORES)
HDFC ICICI
YEAR AMOUNT GROWTH RATE AMOUNT GROWTH RATE
2006-07 1,141.45 31.1 311 22.5
2007-08 1,590.18 39.3 415.8 33.7
2008-09 2,244.93 41.2 375.8 -9.7
2009-10 2,948.70 31.34 402.5 7.1
2010-11 3,926.40 33.15 515.1 28
2011-12 5,167.07 31.6 646.5 25.5
2012-13 6,726.28 30.2 832.5 28.8
Volume : 3 | Issue : 9 | September 2014 ISSN - 2250-1991
21 | PARIPEX - INDIAN JOURNAL OF RESEARCH
REFERENCES
1. Vinod, R.R. (2013) . Ef?ciency of Old Private Sector Banks in India: a DEA approach “, International journal of management and social science research, vol.2, no.6. | 2.
Gupta, sumeet, & Verma, Renu. (2008). Comparative Analysis and Financial Performance of Private Sector Banks in India: Application of CAMEL model, Journal of global
economy, vol. 4, no.2. | 3. Balasubramanian, C.S. (2010). Non-performing assets and pro?tability of commercial banks in India: assessment and emerging issues. | 4. Mishra,
Ashwini, kumar, Gadhaia, Jigar, Prasah, kar, Bibha, Biawabas Patra & Anand, Shivi (2013) Are private sector banks more sound and ef?cient than public sector banks? As-
sessment based on CAMEL and DEA approaches. | 5. Kaur, Avneet. (Nov. 2012) An Empirical Study on the performance evaluation of public sector banks in India, vol.1, issue
11. | 6. Madaan, Chitra. Public, Private and Foreign banks: A Comparison. | 7. Gupta, Omprakash K., Doshit, Yogesh, & Chinubhai, Aneesh. (2008). Dynamics of Productive
Ef?ciency of Indian Banks, International Journal of Operations Research, 5(2). | 8. Kumar, Sunil. (2009). Measuring Ef?ciency, Effectiveness and Performance of Indian Public
Sector Bank, International Journal of Productive and Performance Management, vol59, no.1. |
As average growth rate in net pro?t of HDFC in study peri-
od is 34% and average growth of ICICI is 19.4.Pro?ts of both
banks are increasing but average growth of HDFC is greater
than ICICI.
FINDINGS OF THE STUDY
1) The average growth rate of total income is higher in HDFC
bank then that of ICICI bank. The average growth rate is
34% in HDFC and 16.6% in ICICI bank.
2) The average growth rate of total expenditure in HDFC
bank is 25.2% which is higher than the ICICI bank which
is 16.42%.
3) The average growth rate of net pro?t is higher in HDFC
bank than that of ICICI bank. The average growth rate of
net pro?t is 34% in HDFC bank and 19.4% in ICICI bank.
Hence it is concluded that the total performance and ef?cien-
cy of HDFC bank is better than that of ICICI bank.
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