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

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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

- Fall '16