Swot Analysis

Strength:

Being the 2nd largest among the private sector banks in India having 4700+ branches and 12000+ ATMs
Located nearly in all the Tier I, II, III cities (approx. 2657) and has more than 800+ locations to serve
customers using telephone banking
Compatibility of ATM cards with all the domestic and international card providers and e commerce
sites.
Has highest degree of customer satisfaction compared to peers.
Low attrition rate and one amongst the best to work in private banking sector
Have excellent financial advisors to guide the customers towards right investments.
Have lots of awards and recognitions from financial rating institutions like Dun and Bradstreet,
Financial Express, Euro money etc.

Weaknesses:

Doesnt have strong presence in rural areas

Lacks in aggressive marketing strategies and focuses mostly on high valued clients
Fluctuation in share prices woes the investors
Limited market share growth due to huge competition

Opportunities

Increase in growths in profit as HDFC has better asset quality parameters over other public-sector banks
Improvement in recovery of bad debts by the bank and improvisation in bad debt portfolio by the bank
Scope of acquisition and forming strategic alliance is high as compared to others since the financial
position is strong
Bank could provide complex product to meet the increasing demands of the customer

Threats

Increase in % of NPAs from .18% to .2% proves to be a threat

Increase in NBFCs and Payments banks like Paytm etc making the competition hard
Modernization of Public sector banks to compete with private sector banks as RBI has opened 74% of
foreign banks to invest in our country.
 Competitor analysis:

1.1.1 Based on Critical Success factors

A study was conducted between HDFC, ICICI and SBI banks and the following results was found out:

Here as we could see the average is highest in HDFC bank i.e. 3.8 and hence HDFC bank is the most
preferred bank amongst others. The reason behind is HDFC bank have low NPA and the services
provided by the bank are better than the peers.
1.1.2 Based on Financial indicators

Yearly Results (Rs in Cr.)

Kotak
HDFC IndusInd Axis Bank YES Bank
Mahindra
Bank Bank Ltd. Ltd.
Bank

Mar` 16 Mar` 16 Mar` 16 Mar` 16 Mar` 16

Operating Income 60221.45 11871.74 16384.19 40988.04 13533.44

Other income 10751.72 3296.95 2612.23 9371.46 2712.15

Employee Expenses 5702.2 1236.09 2803.98 3376.01 1296.8

Other Expenses 11277.49 2436.01 2667.54 6724.81 1679.57

Total interest 32629.93 7355.17 9483.81 24155.07 8966.72

Operating profit 21363.55 4141.42 4041.09 16103.61 4302.5

Provisions Made 2725.61 672.16 917.37 3709.86 536.3

Net depreciation 0 0 0 0 0

Total taxation 6341.71 1182.81 1033.94 4170.09 1226.75

Extra-ordinary item 0 0 0 0 0

Net profit / loss 12296.23 2286.45 2089.78 8223.66 2539.45

Prior year adjustment 0 0 0 0 0

Reserve written back 0 0 0 0 0

Equity capital 505.64 594.99 917.19 476.57 420.53

Total reserve and surplus 72172.13 16706.45 23041.87 52688.34 13366.07

Equity Dividend Rate 0 0 0 0 0

Agg. Non-Promotor Shares 0 0 0 0 0

Agg. Non-Promotor
0 0 0 0 0
Holding(%)

Government Share 0 0 0 0 0
 Capital Adequacy Ratio 0 0 0 0 0

EPS 0 0 0 0 0

As per the table above the operating profit of HDFC bank is highest i.e. Rs 21363.55 crores, which shows
it is financially stable and can withstand changes. The provisions made is also on a higher side which
shows that company is ready to take risks and has backed up its NPAs. Net profit is also highest i.e. Rs
12296.23 crores which shows that the bank is really doing financially good.

1.1.3 Based on BCG Matrix

The BCG matrix is a chart that had been made by Bruce Henderson for the Boston Consulting Group in
1970 to help organizations with examining their specialty units or product offerings. This enables the
organization to allot assets and is utilized as an explanatory apparatus in mark promoting, item
administration, key administration, and portfolio investigation.
HDFC BANK spots at star position in BCG matrix. As the bank have high market growth and have high
market share. There is a great deal of development potential for the banking industry on account of
expanding discretionary cashflow of clients, expanding common laborers, greater unpredictability in
different markets likewise expanding significance of funds and as of now examined just about 30% of the
market is as yet undiscovered.