DISSERTATION REPORT

ON
COMPARATIVE ANALYSIS OF TOP THREE
PRIVATE SECTOR BANKS WITH REFERENCE TO
LOANS & ADVANCES AND RESERVES AND ITS
IMPACT ON NPA & INTEREST INCOME

SUBMITTED TO: KURUKSHETRA UNIVERSITY

KURUKSHETRA IN PARTIAL FULFILMENT FOR THE DEGREE OF
MASTER IN BUSINESS ADMINISTRATION (MBA)

Under Guidance Of : Submitted By:

MS.RUBY MITTAL KANWAL JEET KAUR

Faculty, MBA Deptt. M.B.A.-IIIrd semester

R.No-1157/06
Univ. R. No.______

TILAK RAJ CHADHA INSTITUTE OF MANAGEMENT & TECHNOLOGY

(Approved by AICTE &Affiliated to Kurukshetra University, Kurukshetra)
Yamuna Nagar
 CONTENTS

• INTRODUCTION

• COMPANY PROFILE

• PRODUCTS AND SERVICES

• JUSTIFICATION OF STUDY

• OBJECTIVES OF THE STUDY

• RESERCH METHODOLOGY

-PROBLEM STATEMENT

-RESEARCH DESIGN

-DATA SOURCE

-FINANCIAL ANALYSIS OF STATEMENTS

-STATISTICAL TOOLS

• RESULTS AND FINDINGS

• LIMITATION OF STUDY

• SUGGESTION AND RECOMMENDATIONS

• FINANCIAL SWOT ANALYSIS

• REFRENCES

• CONCLUSION
 ACKNOWLEDGEMENT

Dissertation study forms an integral part of a Management course and nothing can be as correct
as that because even through the course taught to us at our Management Institute prepares us to
become good Managers through academic means like Case Studies, Lectures and Presentations,
it is only while undergoing the dissertation study that one actually put one’s thoughts, ideas and
skills to practical use and gets to know the research problems practical exposure to outside
world.
I want thanks to Dr. Vikas Daryal (DIRECTOR TIMT) and Ms Ruby Mittal who guide me
on every step.
In the end, I would only like to say that it has been an earnest on my part to give in my best to
this report.
 HDFC ICICI KOTAK
MAHINDRA

2003 13.70 19.78 7.50

2004 17.91 26.76 13.11

2005 21.47 27.25 6.84

2006 27.80 28.47 3.81

2007 35.77 33.30 4.32

Intrepretation: the earning per share of Kotak Mahindra is too low than from the
HDFC bank and ICICI bank, which shows that HDFC bank and ICICI bank plays
a significant role in the economy with a increasing earning per share as compare to
2003. As it shows the increment of nearabout 30%.
 DIVIDEND PER SHARE

HDFC ICICI KOTAK MAHINDRA

2003 3 7.50 2.10

2004 3.50 7.50 2.40

2005 4.50 8.50 1.25

2006 5.50 8.50 0.60

2007 7 10 0.70

Intrepretation: The graph shows the increasing trend of dividend per share of HDFC
bank & ICICI bank but it shows the decreasing trend in Kotak Mahindra bank.It means
that the retaining of the two banks are high.
 OPERATING PROFIT PER SHARE

HDFC ICICI KOTAK MAHINDRA

2003 25.75 14.40 2.60

2004 31.48 34.06 14.19

2005 41.65 36.37 10.53

2006 52.56 36.75 6.51

2007 86.19 42.19 7.10

Intrepretation: The operating profit per share of HDFC bank is higher than both the banks from
the past trend also.It means shareholders can earn more.
 GROSS PROFIT

HDFC ICICI KOTAK

MAHINDRA
2003 23.23 3.23 4.71

2004 25.95 13.44 20.68

2005 30.79 17.64 19.64

2006 26.35 15.10 18.87

2007 30.50 11.41 12.35

Intrepretation:The gross profit ratio of HDFC bank is 30% and of ICICI bank & Kotak
Mahindra bank has only 10% gross profit ratio. Which shows that there is a difference of near
about 20%.
 RETURN ON LONG TERM FUNDS
HDFC ICICI KOTAK MAHINDRA

2003 78.50 119.87 28.87

2004 71.74 106.69 39.25

2005 50.77 70.54 41.30

2006 60.06 56.24 59.26

2007 74.91 82.46 54.27

Intrepretation: in 2003 HDFC bank gave high return on long term funds & also there was a big
difference between Kotak Mahindra bank and HDFC bank, but in 2007 there is not so much
difference.
 CURRENT RATIO

HDFC ICICI KOTAK MAHINDRA

2003 0.45 0.47 0.22

2004 0.16 0.50 0.30

2005 0.25 0.51 0.32

2006 0.29 0.62 0.24

2007 0.26 0.61 0.32

Intrepretation: As current ratuio is current asset over current liability. As the current ratio of
HDFC bank is nearabout 6%, ICICI have 3% and Kotak Mahindra have 2.5%. So HDFC bank is
playing a significant role in the economy.
 OPERATING MARGIN
HDFC ICICI KOTAK MAHINDRA

2003 29.73 7.57 8.55

2004 30.18 18.12 25.53

2005 34.66 22.63 23.97

2006 29.56 18.66 22.12

2007 33.15 13.33 14.54

Intrepretation:the operating margin of HDFC bank is near about 32 and of other two banks are
with less operating margin than HDFC bank with only near about 13.
 NET PROFIT MARGIN
HDFC ICICI KOTAK MAHINDRA

2003 15.53 9.86 18.63

2004 16.81 13.67 20.57

2005 17.77 16.32 15.35

2006 15.55 14.12 12.97

2007 13.57 10.81 8.84

Intrepretation: the net profit margin of all the three banks having no significant trend as it is 10%
in 2003 of ICICI bank and increases to 16% in year 2005 and then again decreasing in
2007.Same with other banks also.
 FIXED ASSET TURNOVER RATIO
HDFC ICICI KOTAK MAHINDRA

2003 2.86 2.42 1.58

2004 2.80 2.26 2.46

2005 2.89 2.14 3.21

2006 3.50 2.94 4.43

2007 4.33 4.52 5.82

Intrepretation: fixed asset turnover ratio of three banks are increasing year by year.It means that
all the banks are utilizing their fixed assets very efficiently.But this ratio of HDFC bank is
higher than other two banks.as there is a difference of 2-3%.
 QUICK RATIO
HDFC ICICI KOTAK MAHINDRA

2003 4.39 3.84 6.28

2004 3.39 4.18 9.59

2005 5.61 4.98 9.36

2006 5.18 6.64 6.20

2007 4.07 6.04 5.74

Intrepretation: As quick ratio shows the relationship between the current assets and current
liability.and all the three banks show the decreasing trend of quick ratio.
 Justification of the study

private banking is a term for banking, investment and other financial services provided by banks
to private individuals disposing of sizable assets. Assets are those which help the banks to earn
the profits. In banking sector the assets are consider under the essential part of working.

India has one of the most developed financial markets in the developing world. Top private
sector banks are ICICI bank, HDFC bank, Kotak Mahindra, AXIS bank. Their presence has
added a new dynamism to the market as :

• Private sector banks are performing very well in Indian banking industry
• Private banks are now providing the better services in comparison with the public sector
banks.
• In India the importance of private banks are increasing and private banks taking a bigger
slice in today’s sophisticated customers.
• Indian economy is growing at a very fast pace. Along with growth in other industries,
banking industry is also growing.
 OBJECTIVES OF THE STUDY

Primary objective:
Main objective of my study is to make a comparision between ICICI bank, HDFC bank and
Kotak Mahindra bank regarding their loans & advances and researves.

Sub objectives:
• To find the relationship between loans & advances and reserves.
• To know the contribution of the selected banks in Indian economy
• To know the impact of the selected factors on NPA & Interest income.
 Limitations

• Window dressing: As I use the secondary data like balance sheet and profit & loss a/c of
the companies which may be window dressed.
• Insufficient data: I have used the secondary data for conducting the research that is
insufficient for the research.
• Time constraints: I did my research during my study time, so there was no adequate time
available to do research.
• Complex calculation: The calculation for the statistical tools was very complex.
• Difficulty in collection of data: The data was not easily available for the research. No
financial bank easily gives its data.
 RESEARCH DESIGN CAN BE CATEGORIZED AS:

TYPES OF RESEARCH
DESIGN

EXPLORATORY DESCRIPTIVE EXPERIMENTAL

RESEARCH & RESEARCH
DESIGN DIAGNOSTIC DESIGN
RESEARCH DESIGN

The present study is exploratory in nature, as it seeks to discover ideas and insight to brig out
new relationship. Research design is flexible enough to provide opportunity for considering
different aspects of problem under study. It helps in bringing into focus some inherent weakness
in enterprise regarding which in depth study can be conducted by management.

SAMPLING DESIGN:

A sample design is a definite plan for obtaining a sample from the sampling frame. It refers to
the technique or the procedure that is adopted in selecting the sampling units from which
inferences about the population is drawn. Sampling design is determined before the collection of
the data.
Several decisions have to be taken in context to the decision about the appropriate sample
selection so that accurate data is obtained and efficient results are drawn.

Following questions have to be considered while sampling design-

 What is the relevant population?

 What is the parameter of interest?

 What is the sampling frame?

 What is the type of sample?

 What sample size is needed?

 How much will it cost?

The sample size of past one year is taken for present study due to time limitation.
 DATA COLLECTION

After the research problem has been identified and selected the next step is to gather the requisite
data. While deciding about the method of data collection to be used for the researcher should
keep in mind two types of data VIZ. primary and secondary

TYPES OF DATA

PRIMARY SECONDRY
DATA DATA

PRIMARY DATA: -

The primary data are those, which are collected afresh and for the first time, and thus happened
to be original in character. We can obtain primary data either through observation or through
direct communication with respondent in one form or another or through personal interview.
 METHODS OF PRIMARY DATA

OBSERVATION INTERVIEW QUETIONAIRE SCHEDULE

METHOD METHIOD METHOD METHOD

SECONDARY DATA: -

The secondary data on the other hand, are those which have already been collected by someone
else and which have already been passed through the statistical processes. When the researcher
utilizes secondary data then he has to look into various sources from where he can obtain them.
For e.g. Books, magazine, newspaper, Internet, publications and reports. In the present study I
have made use of secondary data collected from their website and from their records.

Analysis and Interpretation of Data

The data collected in the aforesaid manner have been tabulated in condensed from to draw the
meaningful results. The different techniques are adopted to analyze the data. All the data and
material is arranged through internal resources and the last part of the project consists of the
conclusions drawn from the report, a brief summary and recommendation and giving the final
touch to the report by stating a conclusion.
 STATISTICAL TOOLS

Introduction:-

An educated citizen needs an understanding of basic statistical tool to function in a world that is
becoming increasingly dependant on quantitative information. Statistics means numerical
description to most people. In fact the term statistics is generally used to mean numerical facts
and figures such as agriculture production during a year, rate of inflation and so on. However as
a subject of study, statistics refers to the body of principles and procedures developed for the
collection, classification, summarization and interpretation of numerical data and for the use of
such data.

MEANING:-

Broadly speaking, the term statistics has been generally used in two senses:-

 Plural Sense

 Singular Sense

Plural sense refers to the numerical data. Singular Sense refers to a Science in which we deals
with the techniques of collecting, classifying, presenting, analyzing and interpreting the data, the
concept in its singular sense, refers to Statistical Method.

PURPOSE:-

Without the assistance of Statistical Method, an organization would find it impossible to make
sense of the huge data. The purpose of statistics is to:-

• Manipulate

• Summarize

• investigate
 The data so that useful decision making information results could be found out. In fact, every
business manager needs a sound background of statistics. Statistics is a set of Decision Making
techniques which aids businessman in drawing inferences from the available data.

STATISTICAL TOOLS:-

Statistical tools are the basic measures, which helps in defining the relation between different
items, present, past and future trend of the future trend of the particular business etc. A wide
variety of statistical tools are available and any of them can be used by any businessman
depending upon the nature of his trade. Various statistical tools are:-

1. Correlation
2. Regression
3. Time Series
4. Index Numbers
5. Probability Distribution
6. Hypothesis Testing

Here we use Correlation statistical tool to define the relationship between Sales and Profit (of
past five years) of the company. So, before using the tool we should have the knowledge about
that statistical tool. Therefore this tool is defined as under:-
 CORRELATION

Some important definitions of correlation are given below:

Correlation analysis deals with the association between two or ore variables- Simpson and Kafka.

If two or ore quantities vary in sympathy, so that movement in one tend to be accompanied by
corresponding movements in the other, then they are said to be correlated-Conner.

CORRELATION BETWEEN INTEREST INCOME AND RESERVE

Hdfc bank

Int.income(x dx=(x-A) dx2 Reserves(y) dy dy2 dx dy

)
1.67 -1.32 1.74 1.67 -2.54 6.45 3.35

1.96 -1.03 1.06 1.97 -2.24 5.02 2.31

2.46 -.53 .28 2.41 -1.8 3.24 0.95

2.99 0 0 4.21 0 0 0

4.44 1.45 2010 4.99 0.78 0.61 1.13

6.75 3.76 14.14 6.11 1.9 3.61 7.14

2.33 19.32 -3.9 18.93 14.88

r= N × ∑dydx - (∑dx) (∑dy)

N × ∑dx2 - (∑dx)2 N × ∑dy2 - (∑dy)2

r= 6 × 12.841- (2.33) (-3.9)

6 ×19.32 - (2.33)2 6 ×18.93- (3.9)2

R = 0.95

Kotak Mahindra

Int.income(x dx=(x-A) dx2 Reserves(y) dy dy2 dx dy

)
0.12 -0.3 0.09 0.45 -0.18 0.03 0.05

0.18 -0.24 0.06 0.48 -0.15 0.02 0.04

0.29 -0.13 0.02 0.55 -0.08 0.006 0.01

0.42 0 0 0.63 0 0 0

0.72 0.3 0.09 0.56 -0.07 0.005 -0.02

0.14 -0.28 0.08 1.34 0.71 0.50 -20

-0.65 0.34 0.23 0.56 -0.12

r= N × ∑dydx - (∑dx) (∑dy)

N × ∑dx2 - (∑dx)2 N × ∑dy2 - (∑dy)2

r= 6 (-0.12)- (-0.65) (0.23)

6 ×0.34 - (-0.65)2 6 × . 0.56 -- (0.23)2

R = -0.25
Icici

Int.income(x) dx=(x-A) dx2 Reserves(y) dy dy2 dx dy

2.15 -7.24 52.42 5.63 -6.18 38.19 44.74

9.34 -0.05 0.001 6.32 -5.49 30.14 00.27

8.96 -0.43 0.18 7.39 -4.42 19.54 1.90

9.39 0 0 11.81 0 0 0

14.27 4.88 23.81 21.32 9.51 90.44 46.41

22.99 13.6 184.96 23.41 11.6 134.56 157.76

10.76 261.37 5.02 312.87 251.08

r= N × ∑dydx - (∑dx) (∑dy)

N × ∑dx2 - (∑dx)2 N × ∑dy2 - (∑dy)2

r= 6 × 251.08- (10.76) (5.02)

6 ×261.37 - (10.76)2 6 × 312.87 – (10.76)2

R = 0.89
CORRELATION BETWEEN LOANS & NPA
Icici loan & npa

loans(x) dx=(x-A) dx2 NPA(y) dy dy2 dx dy

46.20 -42.79 1830.98 0.28 0.27 0.07 -11.55

52.47 -36.52 1333.71 1.48 1.47 2.16 -53.68

61.31 -27.68 766.18 0.48 0.47 0.22 -13.01

88.99 0 0 0.009 0 0 0
146.16 57.17 3268.41 0.82 0.81 0.66 46.31

195.87 106.88 11423.33 2.18 2.17 4.71 231.93

57.06 18622.61 5.19 7.82 200

r= N × ∑dydx - (∑dx) (∑dy)

N × ∑dx2 - (∑dx)2 N × ∑dy2 - (∑dy)2

r= 6 × 200- (57.06) (5.19)

6 ×18622.61 - (57.06)2 6 ×7.82 – (5.19)2

R = 0.59

KOTAK MAHINDRA

LOANS(x) dx=(x-A) dx2 NPA(y) dy dy2 dx dy

10.04 -30.13 907.82 0.05 -0.01 0.01 3.01

12.41 -27.76 770.62 0.06 -0.09 0.008 2.50

20.97 -19.2 368.64 0.05 -0.01 0.01 1.92

40.17 0 0 0.15 0 0 0

63.48 23.31 543.36 0.37 0.22 0.05 5.13

10.92 -29.25 855.56 1.23 1.08 1.17 -31.59

-83.03 3446 1.01 1.25 -19.03

r= N × ∑dydx - (∑dx) (∑dy)

N × ∑dx2 - (∑dx)2 N × ∑dy2 - (∑dy)2

r= 6 (-19.03)- (-83.03) (1.01)

6 ×3446 - (-83.03)2 6 × 1.25 - (1.01)2

R = 0.66

HDFC BANK

loans(x) dx=(x-A) dx2 NPA(y) dy dy2 dx dy

68.14 -187.52 35163.75 0.99 -0.77 0.59 144.39

117.55 -138.11 19074.37 0.88 -0.88 0.77 121.54

177.45 -78.21 6116.80 1.95 -0.26 0.07 20.33

255.66 0 0 1.76 0 0 0

350.61 94.95 9015.50 4.80 3.04 9.24 288.65

469.45 213.79 45706.16 9.28 7.52 56.55 1607.70

-95.1 1150.76.58 8.65 67.22 2182.61

r= N × ∑dydx - (∑dx) (∑dy)

N × ∑dx2 - (∑dx)2 N × ∑dy2 - (∑dy)2

r= 6 × 2182.61- (-95.1) (8.65)

6 × 115076.58 - (-95.1)2 6 × 67.22 - (8.65)2

R = 0.93
 TREND ANALYSIS

The set of data collected on the basis of time (such as days, months, years) is called as time
series. If the data is based on long term it is called trend .In other words trend refers to general
tendency of the data to grow or decline over a long period of time. To analyze this long term
position trend analysis is used.

Problem statement:- The main problem here arises to see the overall trend in turnover and
working capital amount . The trend on the chronological basis could be found out with the help
of time series analysis. We have used a least square method to find out the expected trend in
working capital and turnover which are very

Significant factors in any organization.

TREND ON INTEREST INCOME

HDFC BANK

XY
years Y DEVIATION DEVIATION X2
FROM MULTIPLIED
2004.5 BY 2
2002 1.67 -2.5 -5 -8.35 25

2003 1.96 -1.5 -3 -5.88 9

2004 2.46 -0.5 -1 -2.46 1

2005 2.99 0.5 1 2.99 1

2006 4.44 1.5 3 13.32 9

2007 6.75 2.5 5 33.75 25

N=6 20.27 ∑x=0 33.37 70

The equation of the straight trend line is:

Y = a + bx
Since ∑ x = 0 so, a = ∑ y / N and b = ∑ xy / ∑ x2
a = 20.27 / 6 = 3.38 and b = 33.37 / 70 = 0.48
Thus y = 3.38 + 0.48x
Origin = 2004.5 and x unit = ½ year

Computation of trend values:

YEAR ACTUAL TREND

March 2002 1.67
0.98
March 2003 1.96 1.94
March 2004 2.46
2.9
March 2005 2.99
3.86
March 2006 4.44 4.82
March 2007 6.75
5.78
March 2009
7.7
March 2011 9.62
ICICI BANK

XY
years Y DEVIATION DEVIATION X2
FROM MULTIPLIED
2004.5 BY 2
2002 2.15 -2.5 -5 -10.75 25

2003 9.34 -1.5 -3 -28.02 9

2004 8.96 -0.5 -1 -8.96 1

2005 9.39 0.5 1 9.39 1

2006 14.27 1.5 3 42.81 9

2007 22.99 2.5 5 114.95 25

N=6 67.1 ∑x=0 119.42 70

The equation of the straight trend line is:

Y = a + bx
Since ∑ x = 0 so, a = ∑ y / N and b = ∑ xy / ∑ x2
a = 67.1 / 6 = 11.18 and b = 119.42 / 70 = 1.71
Thus y = 11.18 + 1.71x
Origin = 2004.5 and x unit = ½ year

Computation of trend values:

YEAR ACTUAL Trend

March 2002 2.15
2.63
March 2003 9.34 6.05
March 2004 8.96
9.47
March 2005 9.39
12.89
March 2006 14.27 16.31
March 2007 22.99
19.73
March 2009
26.57
March 2011 33.41
Kotak Mahindra bank
XY
years Y DEVIATION DEVIATION X2
FROM MULTIPLIED
2004.5 BY 2
2002 0.12 -2.5 -5 -0.6 25

2003 0.18 -1.5 -3 -0.54 9

2004 0.29 -0.5 -1 -0.29 1

2005 0.42 0.5 1 0.42 1

2006 0.72 1.5 3 2.16 9

2007 1.35 2.5 5 6.75 25

N=6 3.08 ∑x=0 7.9 70

The equation of the straight trend line is:

Y = a + bx
Since ∑ x = 0 so, a = ∑ y / N and b = ∑ xy / ∑ x2
a = 3.08 / 6 = 0.51 and b = 7.9 / 70 = 0.11
Thus y = 0.51 + 0.11x
Origin = 2004.5 and x unit = ½ year

Computation of trend values:

YEAR ACTUAL Trend

March 2002 0.12 -0.04
March 2003 0.18
0.18
March 2004 0.29 0.4
March 2005 0.42
0.62
 March 2006 0.72
0.84
March 2007 1.35 1.06
March 2009
1.5
March 2011
1.72

ANNOVA

ANNOVA between profit before tax and profit after tax

Let us take the null hypothesis that there is no significant difference between the variables
standard deviation before and after the tax.

year Profit before tax Profit after tax

2002 4.40 2.97
2003 5.71 3.88
2004 7.53 5.10
2005 9.99 6.65
2006 12.53 8.71
2007 17.35 11.41
total 57.51 38.72

MEAN OF SAMPLES
Mean of standard deviation before = M1 = 9.59
Mean of standard deviation after = M2 = 6.45
M12 = 9.59 + 6.45 /2 = 8.02

SS BETWEEN
n( M1 – M12 )2 + n( M2 – M12 )2
6( 9.59 – 8.02 )2 + 6( 6.45 – 8.02 )2
= 29.58

SS WITHIN
∑[( 4.40 – 9.59 )2 + ( 5.71 – 9.59 )2 + ( 7.53 – 9.59 )2 + ( 9.99 – 9.59 )2 + ( 12.53 – 9.59)2+
(17.35 – 9.59 )2 = 115.25
∑[( 2.97 – 6.45 ) 2 + ( 3.88 – 6.45 )2 + ( 5.10 – 6.45 )2 + ( 6.65 – 6.45 )2 + ( 8.71 – 6.45 )2+
(11.41 – 6.45 )2 = 50.28

TOTAL VARIANCE = SS BETWEEN = SS WITHIN

= 115.25 + 50.28
= 165.53
Source of variation SS D–F MS

Between sample 29.58 1 29.58

Within sample 165.53 10 16.53

F ratio
16.58 / 29.58 = 0.56
F (1, 10) = 4.96
The above table shows that the calculated value of F is .56 which is less than the table value of
4.96 at 5% significant level.
So, null hypothesis is accepted and we can say that there is a significance difference
between profit before tax and profit after tax.

ICICI BANK
Correlation matrix (Pearson):
 Variables Int.income(x) Reserves(y)
Int.income(x) 1 0.886
Reserves(y) 0.886 1
Values in bold are significantly different from 0 with a significance level alpha=0.05
HDFC BANK

Correlation matrix (Pearson):

Variables Int.income(x) Reserves(y)

Int.income(x) 1 0.944
Reserves(y) 0.944 1
Values in bold are significantly different from 0 with a significance level alpha=0.05
KOTAK MAHINDRA

Correlation matrix (Pearson):

Variables Int.income(x) Reserves(y)

Int.income(x) 1 0.944
Reserves(y) 0.944 1
Values in bold are significantly different from 0 with a significance level alpha=0.05
ICICI BANK
CORRELATION BETWEEN LOANS AND NON PERFORMING ASSETS
Correlation matrix (Pearson):

Variables loans(x) NPA(y)

loans(x) 1 0.614
NPA(y) 0.614 1
Values in bold are significantly different from 0 with a significance level alpha=0.05

200

180

160

140
loans(x)

120

100

80

60

40

20

0
0 0.5 1 1.5 2 2.5

NPA(y)

2.5

1.5
NPA(y)

0.5

0
0 50 100 150 200

loans(x)
KOTAK MAHINDRA BANK
CORRELATION BETWEE NPA AND LOANS

Correlation matrix (Pearson):

Variables LOANS(x) NPA(y)

LOANS(x) 1 -0.102
NPA(y) -0.102 1
Values in bold are significantly different from 0 with a significance level alpha=0.05

70

60

50
LOANS(x)

40

30

20

10
0 0.2 0.4 0.6 0.8 1 1.2 1.4

NPA(y)

1.4

1.2

0.8
NPA(y)

0.6

0.4

0.2

0
10 20 30 40 50 60 70

LOANS(x)
HDFC
CORRELATION BETWEEN NPA AND LOANS

Correlation matrix (Pearson):

Variables loans(x) NPA(y)

loans(x) 1 0.931
NPA(y) 0.931 1
Values in bold are significantly different from 0 with a significance level alpha=0.05

500

450

400

350
loans(x)

300

250

200

150

100

50
0 2 4 6 8 10

NPA(y)

10

6
NPA(y)

0
0 100 200 300 400 500

loans(x)
 ANOVA

Summary statistics:

Obs. with missing Obs. without missing Std.

Variable Observations data data Minimum Maximum Mean deviation
Profit after
tax 6 0 6 2.970 11.410 6.453 3.171
Profit before
tax 6 0 6 4.400 17.350 9.585 4.801

Regression of Profit after tax by Profit before tax

(R²=0.997)

14

12
Profit after tax

10

2
0 5 10 15 20

Profit before tax

Active Model
Conf. interval (Mean 95%) Conf. interval (Obs. 95%)
 Standardized residuals / Profit before tax

1.5
Standardized residuals

0.5

0
0 5 10 15 20

-0.5

-1

Profit before tax

Profit after tax / Standardized residuals

1.5
Standardized residuals

0.5

0
2 4 6 8 10 12

-0.5

-1

Profit after tax

 Pred(Profit after tax) / Standardized residuals

1.5
Standardized residuals

0.5

0
3 5 7 9 11 13

-0.5

-1

Pred(Profit after tax)

Pred(Profit after tax) / Profit after tax

14

12

10
Profit after tax

2
2 4 6 8 10 12 14

Pred(Profit after tax)