A Comparative Analysis of the Financial Ratios of the selected private sector Banks in India for the period of 2019-20 to 2021-22

A Comparative Analysis of the Financial Ratios of the selected private sector Banks in India for the period of 2019-20 to 2021-22

Debbarna Dawn1, Jennet Fernandez2, Dr. P Amalanathan3

II PGDM, Xavier Institute of Management and Entrepreneurship, Chennai, India

Associate Professor, Xavier Institute of Management and Entrepreneurship, Chennai, India

Abstract

This research paper provides an in-depth comparative analysis of the financial ratios of four prominent private sector banks in India - HDFC Bank, Yes Bank, IDFC First Bank, and Bandhan Bank - from 2019-20 to 2021-22. The study focuses on key financial metrics that include liquidity ratios, efficiency ratios, profitability ratios, and capital ratios, and uses DuPont analysis to better understand the financial performance of these banks. Looking at these financial indicators, the study aims to identify trends and differences in the performance of the selected banks. The results of the study reveal nuances in the financial performance of these banks, providing stakeholders with detailed perspectives for strategic decision-making. In addition, applying DuPont analysis will help in a better understanding of banks' return on equity (ROE) and break down its drivers - profit margins, investment turnover, and equity ratios.

Keywords: Liquidity Ratio, Capital Ratio, Profitability Ratio, Efficiency Ratio and DuPont Analysis