To initiate the concerned banking organization to reassess existing practices

To initiate the concerned banking organization to

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To initiate the concerned banking organization to reassess existing practices and put a renewed emphasis on undermined ones. To initiate interested researchers to carry out more extensive studies in this particular area of research. To recognize the importance of financial performance in general and the Indian banking sector in particular and, To draw attention towards the financial performance, accounting ratios and contribution for correct decision making in banking sector. Objectives of the Study To make a comparison between the financial performance of PNB and HDFC Bank. To analyze and compare the operational efficiency of PNB and HDFC Bank. To identify the impact of operating efficiency on profitability of both banks. Hypotheses of the Study H 01 : There is no significant impact of efficiency ratios on Return on Equity of PNB. H 02 : There is no significant impact of efficiency ratios on Return on Assets of PNB. 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. H 05 : There is no significant difference in business per employee of PNB and HDFC Bank. H 06 : There is no significant difference in profit per employee of PNB and HDFC Bank. Research Methodology In the present study, an attempt has been made to measure, evaluate and compare the financial performance of PNB and HDFC Bank. Nature of Study: The study is an exploratory and analytical in nature and compares the financial performance of PNB and HDFC bank.
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International Academic Journal of Business Management, Vol. 5, No. 1, pp. 26-47. 32 Nature of Data: The secondary data has been considered for the purpose of financial performance analysis of Punjab National Bank. Source of Data: The study is based on secondary data that has been collected from annual reports of the respective banks along with magazines, journals, documents and other published information as well as through internet. Tenure of the Study: The present study covers ten years period ranging from 2006-07 to 2015-16. Variables used for analysis: For applying regression technique following variables taken as independent and dependent variables: Independent Variables Credit Deposit Ratio, Capital Deposit Ratio, Business per Employee, Profit per employee Dependent Variables Return on Equity, Return on Assets Tools used for Analysis: For the analysis of collected secondary data following tools were used to know financial performance of PNB and HDFC Bank. Credit Deposit Ratio = Advances / Total Deposit Capital to Deposits Ratio = Capital / Deposit Business per employee = Total Business / no. of employees Profit per employee = net profit / no. of employees Return on equity = Net profit / total equity *100 Return on asset = Net Profit / total asset * 100 Data Analysis and Interpretation This section presents the comparative analysis of financial ratios of PNB and HDFC Bank from 2006-07 to 2015-16.
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