Scribd
Upload
51 views

Assignment: Banking & Insurance

This document compares the financial performance of Punjab National Bank and HDFC Bank. It analyzes various financial indicators like profit, assets, deposits, etc. Punjab National Bank has higher profit, savings deposits, assets, branches and ATMs compared to HDFC Bank. However, HDFC Bank charges higher interest rates on loans and penalties. Both banks can improve customer satisfaction - HDFC Bank by revising interest policies and Punjab National Bank by focusing on staff behavior and improving ATM services. In conclusion, Punjab National Bank has better financial standing but both banks need work on customer service issues.

Uploaded by

Ashu Gumber
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
51 views

Assignment: Banking & Insurance

This document compares the financial performance of Punjab National Bank and HDFC Bank. It analyzes various financial indicators like profit, assets, deposits, etc. Punjab National Bank has higher profit, savings deposits, assets, branches and ATMs compared to HDFC Bank. However, HDFC Bank charges higher interest rates on loans and penalties. Both banks can improve customer satisfaction - HDFC Bank by revising interest policies and Punjab National Bank by focusing on staff behavior and improving ATM services. In conclusion, Punjab National Bank has better financial standing but both banks need work on customer service issues.

Uploaded by

Ashu Gumber
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 9

ASSIGNMENT

OF
BANKING & INSURANCE

Topic- Comparative analysis of Bank’s on the basis of financial performance indicators.

SUBMITTED TO: SUBMITTED BY:


Lect. : Mohammad Ehsan ul Haq Ashish Gumber

Roll No- R1814-A-07


Reg. No- 10803979
BBA-MBA
Financial Indicators

 Profit after tax up by 30.6% to Rs. 665.6 crores


 Earnings per share increases from Rs. 17.95 to Rs. 22.92
 Dividend per share increases from Rs. 3.50 to Rs. 4.50
 Savings deposits up from Rs. 7,804 crores to Rs. 11,418
crores
 Balance Sheet size up from Rs. 42,307 crores to Rs.
51,429 crores
 Retail assets up by 35.4% to Rs. 9,918 crores ATM
Network up from 910 to 1147 ATMs
 Branch Network up from 312 to 467 outlets
 Phone Banking coverage in 120 cities
 Point -of-sales (POS) Terminals at merchant outlets up
from 26,400 to 41,685 terminals

General reserve

 The Bank has made an appropriation of Rs. 294,87 lacs


(previous year : Rs. 224,49 lacs) out of profits for the year
ended.
 March 31, 2010 to General Reserve pursuant to Companies
(Transfer of Profits to Reserves) Rules, 1975.

Investment Reserve Account


 During the year, the Bank has transferred Rs. 1,49 lacs
(previous year : Rs. 13,86 lacs) (net) from Investment
Reserve Account to the Profit and Loss Account.

 Investments include securities of FV aggregating Rs. 6,00


lacs (previous year : FV Rs. 5,70 lacs) which are kept as
margin with National Securities Clearing Corporation of
India Ltd. (NSCCIL) and of FV Rs. 5,00 lacs (previous
year : FV Rs. 4,75 lacs) which are kept as margin with
MCX-SX Clearing Corporation Ltd.
 Investments having FV amounting to Rs. 29,810,78 lacs
(previous year : FV Rs. 16,035,13 lacs) are kept as margin
with the Reserve Bank of India towards Real Time Gross
Settlement (RTGS).

PUNJAB NATIONAL BANK

 Operating Profit for the first quarter of current financial


year stood at Rs.2098.17 crore as against Rs.1569.34 crore
in recording a growth of 33.7%.
 Net Profit of the Bank for the amounted to Rs.1068.29
crore as compared to Rs.832.05 crore in the corresponding
quarter of previous year, registering a growth of 28.4%.
 Net Profit excluding treasury operations witnessed a jump
of 127% to reach Rs.960.81 crore in from Rs.423.18 crore.
Business
 Total Business of the Bank rose to Rs.4,52,205 crore as
compared to Rs.3,76,939 crore in June 2009, showing a
growth of 20%.
 Total income increased by 11.1% to Rs.6863.38 crore, led
by growth of 16.4% in interest income.
 Net Interest Income rose by spectacular 45.4% on basis to
reach Rs.2618.57 crore.
 Core Non Interest Income (excluding trading profit)
witnessed a growth of 10.9% to touch Rs.674.15 crore.
 Gross NPA to Gross Advances ratio stood at 1.82% as at
June’10.
 Net NPA to Net Advances ratio stood at 0.66% as at
June’10.
 Provision Coverage Ratio is at 77.61 % compared to RBI’s
stipulation of 70%.
 Net Interest Margin (NIM) has improved to 3.94% for the
quarter ended 30.06.2010 from 3.24% in corresponding
quarter of last year.
 Return on Assets improved to 1.38% in the quarter ended
June 2010 as against 1.31% last year.
 Low increase in interest & operating expenses and a
satisfactory interest income growth led to substantial
reduction in Cost to Income Ratio to 39.88% for the
quarter ended June 2010 as against 44.59% last year.
 Earnings per Share rose to Rs.135.53 (annualized) for the
quarter ended 30.06.2010 as against Rs.105.55 last year.
 Book Value per Share was higher at Rs.548.66 as at June
2010 from Rs 443.11 as on June 2009.
 As per Basel II the CRAR is 13.77% as at end of June’10
(Tier‐I Capital: 8.70%; Tier‐II Capital: 5.07%).
 Return on Equity improved to 24.70% in the quarter
ended June 2010 as against 23.82% last year.
From the above data we can judge that Punjab National Bank
has good financial position than HDFC Bank.
Reason:-
 Punjab National Bank is performing well because that bank
is getting support from Government but HDFC bank is
under private sector.
 Financial Inclusion
Punjab national bank is taking many steps for financial
inclusion………
 Opened 57.25 lakh “No Frill”/PNB Mitra accounts and
issued more than 46000 General Credit Cards.
 Implemented 39 ICT based projects in 16 states.
 Set up exclusive FI Back Offices at Delhi, Chandigarh,
Jaipur, Hyderabad, Lucknow, Patna, Shimla and Raipur.
 Bank has been allocated 4700 villages with population of
over 2,000 in the country for providing Banking services.
PNB propose to cover these by 2012.

Interest Rates.
 Interest rate on loan of punjab national bank is lower
than HDFC bank.
 Penalties on delay of installments & to defaulters is more
charged by HDFC Bank than Punjab National Bank.

Suggestions for both banks:-


HDFC Bank should bring some changes in its interest
policy.
Punjab National Bank should concentrate on behavior of
its staff.
The customers of HDFC Bank are not satisfied from its
services. There is much complaints regarding:-
Less payment from ATM’s.
Unfair fee on depositing money.
Collecting EMI fee twice.
Bouncing the cheques without reasons.

Punjab National Bank Should concentrate on following


things:-
No money in ATM.
Misbehavior
Rude service of internet banking

You might also like