A Comparative Study of Financial Performance of State Bank of India and HDFC Bank using Financial Ratios and Anova

Abstract

Banks are financial institutions that are involved in receiving deposits and giving loans. They collect the savings of their customers and lend them out to businesses, manufactures, industries, etc. This money helps these industries to generate capital for investment in their business such as procurement of raw material, infrastructural setups, etc. The banking sector plays an important role in national as well as international trade. The banking sector, thus, is one of the most important pillar of the economy of any country. However, this pillar of the economic growth itself is undergoing significant turbulence. During the last five years, the number of NPAs have increased significantly thus leading to a long-term setback to Indian economy. (Sengupta & Vardhan, 2019) In this study, we will perform a comparative study of the financial performance of two banks State Bank of India and HDFC.

Keywords:- Banking, financial performance, Current Ratio, Solvency Ratio, Anova, Return On Assets.