Asian Journal of Research in Banking and Finance
Year : 2011, Volume : 1, Issue : 3
First page : ( 63) Last page : ( 69)
Online ISSN : 2249-7323.

Financial health of HDFC: A case study

Dr. Reddy D. Maheswara*, Assistant Professor, Mr. Prasad K.V.N.**, Assistant Professor

* ITM Business School, Warangal.

** ITM Business School, Warangal.

Online published on 14 December, 2011.

Abstract

In the banking industry across the world it is noticed that the so called banks like Lehman brothers and Merry lynch (US) had exposed and experienced the bankruptcy. One of the reasons for bankruptcy is accumulating NPAs. The issue of non-performing assets in banking sector is not confined to any country but is universal with variation among countries of world. Globally, non-performing assets is estimated at about US $1.3 trillion in 2002–03; of which Asian region accounted for 76.90. India's share is account for 2.30; which positioned at 7th rank in Asia. The main theme of this paper is to check whether HDFC BANK(one of the best private bans) is performing well year after year or lagging behind in terms overall performance. The performance can be evaluated and judged by way of analyzing the financial statements of Bank. Despite various ratios deployed in the determination of financial performance of the companies, no single ratio will help the management in assessing the same. Hence, the model has been deployed, which popularly known as Z score model, to assess the financial health of the sample bank.

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Keywords

Bankruptcy, financial ratios, Zeta score model.

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