Hence the null hypothesis that there is no significant impact of credit deposit

Hence the null hypothesis that there is no

This preview shows page 17 - 19 out of 22 pages.

16. Hence the null hypothesis that there is no significant impact of credit deposit ratio on return on equity is accepted. The value of beta coefficient of capital deposit ratio is .043 which signifies that for every unit change in CPDR, there is a 0.043 unit’s change in ROE and the intercept is .010 which shows that if the value of CPDR is zero then the value of ROE would be affected by 0.010 units. It indicates that there is other factor that affects ROE of PNB. The significant value is .006 which is less than the critical value i.e. 0.05. Hence the null hypothesis that there is no significant impact of Proprietary Ratio on Return on Capital Employed is rejected. H 03 : There is no significant impact of efficiency ratios on Return on Equity of HDFC Bank. H 04 : There is no significant impact of efficiency ratios on Return on Assets of HDFC Bank. Table 10 Descriptive Statistics of HDFC Bank Mean Std. Deviation N ROE 16.4400 1.94600 10 ROA 1.4800 0.22504 10 CRDR 11.9630 1.28156 10 CPDR 76.1500 7.10137 10 Source: Annual Reports of PNB from 2011-12 to 2015-16 The above table shows the statistical description of credit deposit ratio, capital deposit ratio, return on equity and return on assets of HDFC Bank from 2006-07 to 2015-16. The Return on equity and return on assets of HDFC Bank was 16.44 per cent and 1.48 per cent with standard deviation of 1.94 and 0.23 respectively. The mean value of credit deposit ratio and capital deposit ratio of HDFC Bank was 11.96 per cent and 76.15 per cent. Table 11 Model Summary of HDFC Bank Model R R Square Adjusted R Square Std. Error of the Estimate 1 .887 a .786 .725 1.02066 1 .942 a .887 .854 .08590 Source: Annual Reports of PNB from 2011-12 to 2015-16 a. Predictors: (Constant), CPDR, CRDR a. Predictors: (Constant), CPDR, CRDR Table 5.34 shows the correlation (r) between the efficiency ratios and ROE and ROA of HDFC Bank. The coefficient of determination (R 2 ) is at .786 and .887 respectively which implies that 78.6 and 88.7 per cent of variance is explained by the relationship between these variables. The table also examines the
Image of page 17

Subscribe to view the full document.

International Academic Journal of Business Management, Vol. 5, No. 1, pp. 26-47. 43 relationship between efficiency ratios and ROE and ROA that gives the coefficient of correlation at 0.887 and 0.942 which indicate a positive high degree of correlation between the two variables. Table 12 Regression Analysis of HDFC Bank Model Unstandardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta 1 (Constant) 7.351 3.768 1.951 .092 CRDR -1.389 .370 -.915 -3.758 .007 CPDR .338 .067 1.232 5.060 .001 2 (Constant) -.817 .317 -2.576 .037 CRDR .011 .031 .065 .369 .723 CPDR .028 .006 .895 5.052 .001 Source: Annual Reports of PNB from 2011-12 to 2015-16 a. Dependent Variable: ROE a. Dependent Variable: ROA In case of ROE, it is observed that the value of beta coefficient is .915 which signifies that for every unit change in ROE, there is a 0.915 unit’s change in CRDR. On the other hand, the intercept is .249 which shows that if the value of ROE is zero then the value of CRDR would be affected by 0.249 units. It point towards that there is other factor that affects ROE of PNB. The significant value is .738 which is more than the critical value i.e. 0.05. It leads to the acceptance of the null hypothesis that there is a significant impact of CRDR on Return on Equity of PNB from 2006-07 to 2015-16. Hence the null hypothesis that
Image of page 18
Image of page 19
  • Fall '16

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes